Diamondback Energy acquires Alabama-based Energen

Texas-based Diamondback Energy Inc. is acquiring one of Alabama's largest publicly held companies, the Birmingham-based Energen Corp., in a stock deal worth more than $9 billion.

The companies announced the transaction in a statement Tuesday.

The statement says the deal creates a company that will operate in the Permian Basin, which produces oil and natural gas located in west Texas and southeastern New Mexico.

The combined company will produce the equivalent of about 222,000 barrels of oil daily and own more than 266,000 acres (107,600 hectares) in the region.

Diamondback Energy is an independent oil and natural gas company based in Midland, Texas. Energen owned Alagasco before switching to oil exploration and production.