US shale producer reabsorbs pipeline subsidiary

Diamondback’s reversal of its midstream spin-off may reflect expectations of no new US oil boom

US independent Diamondback Energy was saying as recently as early May that Rattler, the listed midstream subsidiary its parent took public in 2019, had “interests fully aligned with upstream operations” and remained a “vehicle for participation in non-upstream investment opportunities such as long-haul pipelines”. Just a fortnight later, the firm announced an all-share agreement to take the outstanding 26pc of Rattler fully back into Diamondback ownership. “The energy landscape has transformed dramatically since Rattler was taken public in 2019, and we believe this agreement to merge companies is in the best interests of both Diamondback and Rattler stakeholders,” says Diamondback CEO Travi

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