Diamondback Energy Follows ExxonMobil and Occidental Petroleum with a Permian Megadeal
The consolidation wave in the oil patch has washed over another producer. Diamondback Energy (NASDAQ: FANG) has struck a deal to acquire privately held rival Endeavor Energy Resources for $26 billion. The acquisition will create a premier producer focused on the resource-rich Permian Basin.
The merger of Diamondback and Endeavor follows in the footsteps of recent deals by ExxonMobil (NYSE: XOM) and Occidental Petroleum (NYSE: OXY), which are bulking up their positions in the Permian Basin. Like those deals, the Diamondback-Endeavor tie-up will likely spark additional consolidation among oil companies.
Diamondback Energy is merging with Endeavor Energy Resources in a cash-and-stock deal valued at $26 billion, which includes the assumption of Endeavor's debt. The company will issue 117.3 million shares and pay $8 billion in cash. It plans to fund the cash portion of the deal with cash on hand, borrowings under its credit facility, and new debt.
Source Fool.com
Diamondback Energy Stock
With 51 Buy predictions and 2 Sell predictions Diamondback Energy is one of the favorites of our community.
At the moment Diamondback Energy has reached the predicted target price of 185 €, with a current price of 183.66 €.
