Diamondback Energy Inc. will expand in the Permian Basin after agreeing to acquire subsidiaries of closely held Double Eagle IV Midco LLC for about $4.1 billion, a significant asset boost for the top independent oil producer in North America’s most prolific shale patch.

Diamondback Energy said on Tuesday it would buy certain units of EnCap Investments-backed energy producer Double Eagle in a cash-and-stock deal for about $4.08 billion, as the shale producer looks to expand its presence in the oil-rich U.

EIR analyst Andrew Dittmar called the deal a priority for Diamondback “because it represents one of the last current opportunities to get a large, high-quality asset from a