Sept 11 (Reuters) - Private equity firm Carlyle Group LP said on Tuesday it would fund the development of Diamondback Energy Inc's oil and gas assets in the prolific Permian basin of Texas.
A Carlyle fund and Diamondback will jointly invest $620 million to develop the assets in the San Pedro area of Pecos county, Texas within the Southern Delaware basin, the companies said.
The Carlyle fund will invest up to 85 percent for the development program over five years and the PE firm's interests will largely revert to Diamondback after certain performance milestones are met.
Diamondback's shares were up 2.2 percent at $114.58 in morning trade.
Last month, Diamondback agreed to buy shale rival Energen Corp in an all-stock deal valued at $9.2 billion, to get an expanded footprint in the Permian, the largest and fastest growing oil field in the United States.
Reporting by John Benny in Bengaluru; Editing by Sriraj Kalluvila