Permian Tycoon’s Heir Seeks $2 Billion in Diamondback Share Sale

Diamondback Energy Inc.’s largest shareholder is seeking to raise as much as $1.94 billion in a sale of shares in the oil and natural gas company, according to people familiar with the matter.

SGF Fang Holdings LP is offering 11 million Diamondback shares, the company said in a statement Tuesday. The investment vehicle is beneficially owned by Lyndal Stephens Greth, the daughter of the late wildcatter Autry Stephens, who sold his company Endeavor Energy Resources to Diamondback. He died in 2024.

Greth’s company is offering to sell the 11 million shares for $172.25 to $176 each, the people said, asking not to be identified as the information isn’t public. The price range represents a discount of as much as 3.4% to Tuesday’s close.

The share sale is expected to price overnight, the people said. A representative for Diamondback didn’t immediately respond to a request for comment.

At the closing price of $178.37 per share, the stake offered would be worth $1.96 billion. Greth’s entity owned 34% of the stock outstanding as of March 4, before the latest offering, according to data compiled by Bloomberg.

Shares of Diamondback fell 3.6% to $172 each in after-market trading as of 5:01 p.m. Tuesday in New York. The stock has climbed 19% this year, giving Diamondback a market value of $50.3 billion.

Diamondback, the largest pure-play shale producer in the Permian Basin, acquired Stephen’s Endeavor Energy Resources LP for $26 billion in cash and stock in September 2024. Stephens, who died shortly before the transaction closed, founded Endeavor in 1979.

Greth’s net worth is roughly $28 billion, according to the Bloomberg Billionaires Index.

Evercore Inc., Citigroup Inc. and JPMorgan Chase & Co. are leading the deal.