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"We
think there is lots of value," Meister said at the 13D Monitor
Active-Passive Summit. He said he expects Diamondback's
management team will do all the right things to boost returns.
Chevron’s planned acquisition of Anadarko announced last week
marked a turning point for oil and gas exploration and
production companies, Meister said.
"I would not have pitched this idea one week ago,” he said,
adding that the pace of takeovers is likely not over yet.
"I think there is going to be a lot of activity" in the sector,
he said.
Diamondback acquired rival Energen, another Corvex activism
target, in a $9.2 billion deal last year. Meister said
Diamondback has still been underperforming, however.
When Meister spoke about Energen last year, he said that
investors need to be patient and noted that by waiting until
Diamondback made its move, "the size of the prize went up."
Investors have not paid enough attention to the energy and
production sector, Meister said.
"No one owns energy stocks, but if you do own them, you have to
be in one place, the Permian basin," he said, referring to the
oil-rich region in West Texas where Diamondback has operations.
Diamondback and rivals Pioneer Natural Resources Co. and Concho
Resources will likely not be independent companies three to five
years from now, he said.
(Reporting by Svea Herbst-Bayliss and Jessica DiNapoli; Editing
by Chizu Nomiyama and Sonya Hepinstall)
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