Houston clean fuels co. secures $50M investment from Diamondback Energy subsidiary

money moves

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde. Image via Shutterstock

Verde Clean Fuels announced the entry into a stock purchase agreement with Cottonmouth Ventures, a wholly-owned subsidiary of Diamondback Energy.

With the deal, Midland, Texas-based Cottonmouth will make a $50 million equity investment into Houston-based Verde.

The investment will consist of the purchase of 12.5 million shares of Verde’s Class A common stock at a purchase price of $4.00 per share. Closing of the investment is anticipated to occur during the first quarter of the new year, which will be subject to satisfaction of customary closing conditions. The investment would represent the second investment by Cottonmouth in Verde over the past two years, which would equal a total investment of $70 million. This would make Cottonmouth the second largest shareholder of Verde.

“We are pleased to further our relationship with Diamondback and continue advancing our plans to deploy our technology through the development of commercial production plants,” Ernest Miller, CEO of Verde, says in a news release. “Diamondback is a strategic industry partner at the forefront of bringing sustainable operational practices to the oilfield and supporting the overall transition to clean energy.”

Verde Clean Fuels key pioneering technology is its "syngas-to-gasoline plus" (STG+®), which turns diverse feedstocks like biomass, municipal solid waste (MSW), and natural gas – into gasoline or methanol. Verde is able to deploy facilities in areas with abundant and low-cost feedstock. The company has developed two different pathways to gasoline production with the goal of reducing carbon emissions.

Proceeds from the investment are expected to be used to further the development and construction of potential “natural gas-to-gasoline production plants in the Permian Basin and for other general corporate purposes,” according to Verde Clean Fuels. The proposed plants developed by the parties would produce fully-refined gasoline utilizing Verde’s patented STG+® process from associated natural gas feedstock supplied from Diamondback's operations in the Permian Basin. Verde will also expand its board of directors to eight members and appoint a new director to be designated by Cottonmouth. Cottonmouth will be entitled to appoint an observer to the company’s board.

“This investment is an expression of confidence in our technology, which we believe has the potential to alleviate economic and environmental concerns in the Permian Basin and other pipeline-constrained basins, where flaring and stranded natural gas represent a significant challenge,” Miller adds in the release.

At the annual, SUPER DUG Conference & Exhibition 2024 in Fort Worth last week, Texas energy executives weighed in on the progress of the energy transition. Photo by Lindsey Ferrell

Texas energy transition leaders praise progress, call for continued efforts at conference

overheard at SUper dug

Woven in between reflections on the most active consolidation market in recent history, an underlying theme emerged from Hart Energy’s SUPER DUG Conference & Exhibition 2024 in Fort Worth last week. Executives, investors, and analysts conveyed admiration for the emissions reductions achieved across the shales while continuing to meet the growing demand for natural gas.

However, concern for continued investment echoed this praise, as many expressed the need for increased investment to support a world of flourishing population, economics, and technology.

Marshall Adkins, head of energy for Raymond James, shared an analogy demonstrating the energy demand impact from advancements in technology, most notably those sprouting from the widespread adoption of artificial intelligence. Adkins explained that a minimal whole-home generator consumes about 8,500 watts of power; to keep air conditioning, the washing machine, and garage door working results in a pull of approximately 14,000 watts. One single chip from NVIDIA requires that same 14,000 watts plus another 150 percent power for cooling, totaling approximately 35,000 watts — about the same as would completely power an average home as if there were no disruption in supply.

While this volume of power consumption seems hefty, consider that NVIDIA sold over half a million chips in a single quarter last year, and the effect starts to multiply exponentially. And while development of solar and wind power sources will replace most, if not all, of the current energy produced from coal, the stability of the power grid relies predominantly on the continuous stream of natural gas. That is, if the stream of investment into developing and expanding natural gas continues to grow in parallel.

Reflecting on the expectation from public and private investors, as well as upcoming talent, to embrace meaningful advancements in ESG, Will Van Loh, CEO of Quantum Energy Partners, shared the business benefit of greener practices.

“Switching your frac fleet from running diesel to natural gas, we saved one of our companies in the Haynesville half a million dollars per well and reduced GHG by 70 percent. Make a bunch of money and do good for the environment – (that’s a) pretty good deal,” Van Loh told Hart Energy’s editor-in-chief for Oil & Gas Investor, Deon Daugherty.

For decades, the industry has pursued increasingly eco-friendly habits, but the requirements of ESG reporting make it more visible to the rest of the world. Permian Operators, which produce almost half of all US daily oil volume, cited specific strides made in reducing emissions and operating more cleanly during their respective presentations:

Leadership from Diamondback Energy spoke about adopting the use of clear drilling fluids in lieu of oil-based mud, resulting in faster drilling times and cleaner operations. The technique came along with the acquisition of QEP Resources in 2021 and reflects the company’s commitment to remaining humble in its pursuit of more efficient and more environmentally beneficial methodologies.
Nick McKenna, vice president of the Midland Basin for ConocoPhillips praised their Lower48 team for reducing gas flaring by 80 percent since 2019 while also increasing the use of recycled water over 3x in that same 5-year horizon.
Clark Edwards, senior vice president of Development for BPX, cited achieving 95 percent electrification of their Permian well set as of the end of 2023. Building and installing their own microgrid – a practice repeated by numerous operators throughout the Basin, where public infrastructure lags far behind private entity needs – added enough megawatts to their operation to allow BPX to run drilling rigs completely independent of an already strained public grid.

In addition to reducing diesel usage, flaring, and dependence on the public grid for electricity, water management stays a top economic and ecological concern for shale operators all over the United States. While a compelling case of "have and have-not" dominated the shale water business over the last decade-plus, savvy operators increasingly embrace a mindset that water disposal should remain a choice of last resort. Companies like WaterBridge, a Joint Venture with Devon Energy, and Deep Blue, a joint venture with Diamondback Energy, help bring clean and recycled water to areas with shortages, both in and outside of the industry.

As Kaes Van’t Hof, president and CFO of Diamondback Energy, said, “The Midland Basin is now recycling as much water as it possibly can. Eventually it’s going to be about, ‘Water going downhole into a disposal well is the last option.’ Can you recycle it? Can you bring it somewhere else, evaporate it? We’re starting start some early de-sal[ination] tests in the Spanish Trail near the airport. Eventually, can we tell the story that we sell freshwater back to water the golf courses of Midland?”

The Energy Transition steams ahead, but pragmatic observations remind us that oil and gas make up approximately 60 percent of the energy supply today – a volume not easily replaced by any other source completely in the next few years. However, the overwhelming support for delivering the best barrel with the lowest carbon intensity possible permeated Hart Energy’s SUPER DUG Conference & Exhibition 2024.

A tie-up between Diamondback and Endeavor, if it succeeds, would create a player in the massive Permian Basin oil and gas field that straddles Texas and New Mexico. Photo via Unsplash

Potential $50B Texas energy giant emerges as Diamondback seeks to buy rival Endeavor

big deal

Diamondback Energy will attempt to buy rival Endeavor Energy Resources to create an energy giant in the Southwestern United States worth more than $50 billion.

Growing confidence in an economic recovery, particularly in the U.S., has driven massive deals in the energy sector in recent months, including Chevron's $53 billion acquisition of Hess in October, and a $59.5 billion deal two weeks before that by Exxon Mobil, its biggest acquisition since buying Mobil two decades ago.

A tie-up between Diamondback and Endeavor, if it succeeds, would create a player in the massive Permian Basin oil and gas field that straddles Texas and New Mexico.

It would be the third largest producer in the Permian behind Exxon and Chevron, overseeing 838,000 acres and potentially producing 816,000 oil-equivalent barrels each day.

Diamondback said Monday that it will buy Endeavor in a cash-and-stock deal valued at about $26 billion.

Endeavor is the largest private operator in the Permian Basin. Drillers can pull more than 4 million barrels of oil equivalent from the Permian daily and the rush is on to secure prime real estate in the largest oil field in the United States with little sign that the U.S. economy is slowing as many had expected.

“Our companies share a similar culture and operating philosophy and are headquartered across the street from one another, which should allow for a seamless integration of our two teams," Diamondback Chairman and CEO Travis Stice said in a prepared statement.

Despite broad expectations that it would dip into recession in a turbulent global economy, the U.S. has proven surprisingly resilient, with a red hot job market and economic growth that has surprised almost everyone. The nation’s economy grew at an unexpectedly brisk 3.3% annual pace from October through December.

Shareholders of Diamondback Energy Inc. will own about 60.5% of the combined company, while Endeavor’s equity holders would own approximately 39.5%.

“Diamondback and Endeavor’s assets are highly contiguous and offer opportunities to capture operational and overhead synergies through a combination,” Stifel's Derrick Whitfield said in an analyst note, explaining that the deal will add low-cost inventory to Diamondback's Midland Basin position.

The Diamondback, Endeavor deal confirmed Monday includes approximately 117.3 million shares of Diamondback common stock and $8 billion in cash, and will create a huge operator in the Permian Basin that straddles Texas and New Mexico.

The combined company will be based in Midland, Texas.

The boards of both companies have approved the deal, which is expected to close in the fourth quarter. It also has all of the necessary Endeavor approvals, the companies said.

Diamondback's stock rose nearly 2% before the market open.

Ad Placement 300x100

Ad Placement 300x600

CultureMap Emails are Awesome

Property Showcase

Here are 10+ must-attend Houston energy transition events for Q2 2025

On the Agenda

Editor's note: Spring is here, and this quarter is packed with must-attend events for those in the energy transition sector. Houston plays host to myriad summits, conferences, and expos that you won't want to miss. Mark your calendars and begin registering today. Please note: this article may be updated to include additional events.

March 31-April 2 — World Hydrogen North America 2025

Seize the opportunity to connect with industry leaders from across the hydrogen value chain, fostering long-term business partnerships and exploring potential collaborations. Engage with prominent off-takers, both nationally and internationally, and gain first-hand insights into the latest projects shaping the future of hydrogen in the USA and Canada.

This event begins March 31 at the Marriott Marquis. Click here to register.

April 1-2 — 8th Annual LNG Summit USA

The LNG Summit USA brings together leaders in the LNG sector, who in turn bring solutions to glaring industry challenges. The event addresses key challenges and opportunities within the LNG industry and the broader energy landscape. The conference will also provide insights into alternative energy options that could potentially replace or complement LNG.

This event begins April 1. Click here to register.

April 17 — 2025 UH Energy Symposium Series on Plastics Circularity

Celebrating its 12th year, the UH Energy Symposium Series tackles critical issues impacting the energy sector. This year’s focus on plastics circularity will bring together industry leaders, researchers, and visionaries to explore the intersection of plastics, sustainability, and energy.

This event begins at 8 am on April 17 at UH Student Center South. Click here to register.

April 28-30 — PPDM Energy Data Convention Houston 2025

This flagship conference is dedicated to exploring the latest advancements and trends in energy data, offering opportunities for networking, knowledge exchange, and collaboration. Gain insights into cutting-edge data management practices and how they can enhance operational efficiency, support strategic decision-making, and contribute to achieving long-term objectives. Highlights include keynote presentations from renowned experts, interactive panel discussions, hands-on workshops, and an exhibitor showcase.

This event begins April 28 at Norris Conference Center. Click here to register.

May 12-15 — Enverus Evolve Conference

Staying ahead of the curve in the energy sector is critical. This conference is designed to equip energy leaders with foresight in the energy market, providing cutting-edge technological know-how, sessions and networking opportunities industry leaders, and offering practical guidance on how to apply technology to solve big problems.

This event begins May 12 at Hilton Americas Houston. Click here to register.

May 27-28 — 6th American LNG Forum

Join LNG industry professionals, innovators, and policymakers to discover groundbreaking technologies that are driving the future of liquified natural gas. Topics will include market dynamics and decarbonization strategies, offering attendees the chance to connect, learn, and become part of the LNG revolution.

This event begins May 27 at the Westin Galleria Houston. Click here to register.

May 28-30 — CHARGE North America

This intimate, immersive experience is tailored to forward-thinking energy professionals. The conference includes hands-on interactive workshops led by top strategists; real-world case studies; and insights from leading speakers on resilient branding, consumer expectations, and climate action. Attendees will engage in panel discussions on sustainability and energy diversification and enjoy exclusive networking opportunities with global executives and innovators.

This event begins May 28 at The Ion. Click here to register.

May 29-30 — 5th Annual American Hydrogen Forum

Connect with hydrogen industry leaders, innovators, and policymakers at the American Hydrogen Forum. Discover groundbreaking technologies and strategies focusing on hydrogen fuel cell technology, hydrogen energy, and low-carbon hydrogen solutions.

This event begins May 29 at the Westin Galleria Houston. Click here to register.

June 4-5 — 2025 AWS Energy Symposium

The fourth annual AWS Energy Symposium is the premier AWS event for the energy industry. Hear from leading energy and utility customers, partners, and startups about how they're using AWS to scale innovation and transform their organizations. The event is invitation only and is geared toward senior leaders and director-level executives from across the energy value chain. Click here to submit a registration request.

June 11-12 — Energy Projects Conference & Expo

The Energy Projects Conference & Expo (EPC Show) is the largest event in North America for professionals working at the heart of major energy projects. The show will bring together five leading conferences under one roof for the first time, uniting 3,000-plus engineering, construction, commissioning, supply chain, operations, and maintenance professionals. Conference subjects span LNG exporting, hydrogen and ammonia, midstream, petrochem and refining, and sustainable aviation fuels.

This event begins June 11 at the George R Brown Convention Center. Click here to register.

June 25-26 — Carbon Capture Technology Expo

Tackling climate change is one of the biggest global challenges that requires immediate action, and many industrial sectors are now looking to new technology to help meet net-zero emission targets. The Carbon Capture Technology Expo is North America's leading event for carbon capture, utilization, and storage. The expo offers opportunities to network with industry frontrunners and best-in-class solution providers.

This event begins June 25 at NRG Center. Click here to register. It is co-located with the Hydrogen Technology Conference & Expo North America. Expo passes are free.

8 Houston energy companies land on Time's top greentech list for 2025

top honor

The accolades keep rolling in for Houston-based Fervo Energy, a producer of geothermal power.

Fervo lands at No. 6 on Time magazine and Statista’s new list of America’s Top GreenTech Companies of 2025. The ranking recognizes sustainability-focused companies based on factors such as impact, financial strength, and innovation.

Time notes that Fervo broke ground in 2023 in Utah on what the company claims will be the world’s largest geothermal plant. The plant is scheduled to start supplying carbon-free electricity to the grid next year and to reach its 400-megawatt capacity in three years.

“Technologies like this only make a difference if we deploy them at large-scale in a way that can reduce carbon emissions and increase the reliability of the grid,” Fervo CEO Tim Latimer told Time in 2023.

The startup was named North American Company of the Year by research and consulting firm Cleantech Group for 2025. Fervo topped the Global Cleantech 100, Cleantech Group’s annual list of the world’s most innovative and promising cleantech companies.

Last year, Fervo also made Time’s list of the 200 Best Inventions of 2024. Fervo was recognized in the green energy category for its FervoFlex geothermal power system.

Founded in 2017, Fervo is now a unicorn, meaning its valuation as a private company exceeds $1 billion. The startup’s valuation is estimated at $1.4 billion. According to PitchBook data, the company raised $634 million in the fourth quarter of 2024.

In all, eight Houston-area companies appear among the top 250 greentech companies ranked by Time and Statista. Other than Fervo, they are:

No. 43 Lancium Technologies, an energy storage and distribution company
No. 50 Solugen, a producer of sustainable chemicals.
No. 56 Quaise Energy, which specializes in terawatt-scale geothermal power.
No. 129 Plus Power, a developer, owner and operator of battery storage projects.
No. 218 Dream Harvest, which promotes sustainable vertical farming.
No. 225 Cemvita, which uses synthetic biology to convert carbon emissions into bio-based chemicals.
No. 226 Syzygy Plasmonics, which decarbonizes chemical production.

Vermont-based BETA Technologies claimed the No. 1 spot. The company manufactures electric aircraft.

Top takeaways from CERAWeek and more energy transition news to know

Trending News

Editor's note: As we approach the end of March, it's time to look back at the hottest energy transition news from the second half of the month. Here are the top five trending EnergyCapital stories from March 14-28, from CERAWeek key takeaways to a look at the Texas grid vs. extreme weather.

1. Houston energy expert shares key takeaways from CERAWeek 2025

Environmental services firm names Houston energy leader to board

Barbara Burger shares her CERAWEEK takeaways with EnergyCapital. Courtesy photo

What a difference a year makes. I have been coming to CERAWeek for as long as I can remember and the Agora track within CERAWeek since it originated. Although freshness likely distorts my thinking, I cannot remember a CERAWeek that seemed so different from the previous year's than this one.

This certainly isn’t a comprehensive summary of the conference, but some of my key take forwards from last week's events. Continue reading Barbara J. Burger's takeaways.

2. Houston-led project earns $1 million in federal funding for flood research

A team of Texas researchers has landed a nearly $1 million NSF grant to address rural flood management challenges with community input. Photo via Getty Images.

A team from Rice University, the University of Texas at Austin and Texas A&M University has been awarded a National Science Foundation grant under the CHIRRP—or Confronting Hazards, Impacts and Risks for a Resilient Planet—program to combat flooding hazards in rural Texas.

The grant totals just under $1 million, according to a CHIRRP abstract. The proposal includes work that introduces a “stakeholder-centered framework” to help address rural flood management challenges with community input. Continue reading.

3. Can the Texas grid handle extreme weather conditions across regions?

Texans are facing extreme weather at every turn — can the grid withstand these events? Photo via heimdallpower.com

From raging wildfires to dangerous dust storms and fierce tornadoes, Texans are facing extreme weather conditions at every turn across the state. Recently, thousands in the Texas Panhandle-South Plains lost power as strong winds ranging from 35 to 45 mph with gusts upwards of 65 mph blew through. Meanwhile, many North Texas communities are still reeling from tornadoes, thunderstorms, and damaging winds that occurred earlier this month.

With the extreme weather conditions increasing in Texas and nationally, recovering from these disasters will only become harder and costlier. When it comes to examining the grid’s capacity to withstand these volatile changes, we’re past due. As of now, the grid likely isn’t resilient enough to make do, but there is hope. Continue reading Sam Luna's column here.

4. CERAWeek announces winners of annual clean tech pitch competition

The teams at this year's Energy Venture Day and Pitch Competition have collectively raised $435 million in funding. Photo courtesy of CERAWeek

Teams from around the world and right here in Houston took home prizes at the fourth annual Energy Venture Day and Pitch Competition at CERAWeek on March 12. The fast-paced event, put on by Rice Alliance, Houston Energy Transition Initiative and TEX-E, invited 36 industry startups and five Texas-based student teams focused on driving efficiency and advancements toward the energy transition to present at 3.5-minute pitch before investors and industry partners during CERAWeek's Agora program. The competition is a qualifying event for the Startup World Cup, powered by Pegasus Venture, where teams compete for a $1 million investment prize.

The teams at this year's Energy Venture Day have collectively raised $435 million in funding. Rice University student teams took home two of the three top prizes in the competition.Continue reading.

5. New report shows Texas led nation in solar and battery growth in 2024

Texas outpaced all other states in various categories of power generation in 2024, according to a new report from Ember, an energy think tank. File photo

The winds of change in power generation are sweeping through Texas.

Texas outpaced all other states in various categories of power generation in 2024, according to a new report from Ember, an energy think tank. The report shows that Texas contributed more (12 terawatt-hours) to the country’s 64 terawatt-hour rise in solar generation last year than any other state. Continue reading.

View All Listings

ENERGYCAPITALHTX EMAILS ARE AWESOME