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 for $4.08 billion in cash and stock, expanding its presence in the oil-rich U.S.

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