The oil and natural gas company reached an agreement with Double Eagle in exchange for 6.9 million shares of its common stock and $3 billion in cash.

Texas energy company Double Eagle announced Tuesday it plans to sell subsidiaries to Midland-based Diamondback Energy in a deal worth $4.1 billion, pending regulatory approval.

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.