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Diamondback acquires Endeavor Energy as consolidation in the oil sector remains steady on the stock exchange

ByEditor

Feb 13, 2024

On Wall Street, the stock indices opened near zero and made an effort to rise slightly during the first half hour. A moment ago, the Dow Jones of large companies was up 0.05 percent, and the Nasdaq, which focuses on the technology sector, was up 0.11 percent. The broad S&P 500, which reached a new record high on Friday, was up 0.03 percent. The index exceeded 5000 points for the first time in its history and closed at 5026.58 points.

An oil company Diamondback Energy said it would buy its competitor Endeavor Energy Resources with 26 billion dollars. Diamondback will pay the purchase price in cash and stock, news service Bloomberg news. The new company will become the largest operator in the traditional Texas oil production area of ​​the Permian Basin. Diamondback’s share was up more than seven percent a moment ago.

According to Bloomberg, the acquisition is a continuation of the industry’s consolidation trend, as companies strive to acquire drilling areas and cut costs. During the last four months, among other things Exxon Mobil has said that he will buy Pioneer Resources for about $60 billion, and Chevron Corporation on the other hand is acquiring Hess Coprorationin with 53 billion euros. In addition Occidental Petroleum is buying CrownRockin for about $10.8 billion.

The earnings season continues on Wall Street and tomorrow, Tuesday, the beverage company will announce its October-January results and last year’s financial statements Coca Cola. Tomorrow there will also be macro figures, when the country’s inflation figures for January are published in the United States.

By Editor

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