• Sun. Mar 3rd, 2024

Texas Oil Consolidation on the Rise as Diamondback Energy Acquires Endeavor Energy Resources for $26 Billion

ByEditor

Feb 13, 2024
Diamondback acquires Endeavor Energy as consolidation in the oil sector persists on the stock exchange

On Wall Street, the stock indices opened near zero and made an effort to rise slightly during the first half hour. The Nasdaq, which focuses on the technology sector, was up 0.11 percent, while the broad S&P 500 was up 0.03 percent at the time. Meanwhile, in Texas, two oil companies announced a major acquisition that will have a significant impact on the industry’s consolidation efforts.

Diamondback Energy has agreed to acquire Endeavor Energy Resources for $26 billion in cash and stock. The news caused Diamondback’s share price to rise more than seven percent, making it the largest operator in the traditional Texas oil production area of the Permian Basin. This acquisition is part of a trend among companies seeking to acquire drilling areas and cut costs as they consolidate their operations. Other companies such as Exxon Mobil and Chevron Corporation have also reported similar acquisitions in recent months.

The earnings season continues on Wall Street with Coca Cola set to announce its October-January results and last year’s financial statements tomorrow. Additionally, tomorrow will see the publication of the country’s inflation figures for January in the United States. These developments will be closely watched by investors as they seek to gauge how these factors are affecting their investments in various sectors of the economy.

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