Diamondback Energy's buyout of Double Eagle could signal the winding down of the rapid consolidation of the Permian Basin over the last half decade.

Diamondback Energy, a major player in the shale oil industry, has announced its acquisition of certain units of Double Eagle Energy. The deal, valued at approximately $4.08 billion, will be settled through a combination of cash and stock.

Diamondback Energy Inc. is closing in on a deal to acquire closely held West Texas oil producer Double Eagle in a bid to further its dominance in the world’s biggest shale patch, according to people familiar with the matter.