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 Dow Jones of large companies was up 0.05 percent, the Nasdaq, which focuses on the technology sector, was up 0.11 percent, and the broad S&P 500, which reached a new record high on Friday, was up 0.03 percent at the time.

Meanwhile in corporate news, Diamondback Energy announced it would acquire its competitor Endeavor Energy Resources for $26 billion in cash and stock. This news caused Diamondback’s share to rise more than seven percent, making them the largest operator in the traditional Texas oil production area of the Permian Basin. This acquisition is just one example of an industry-wide trend towards consolidation as companies seek to acquire drilling areas and cut costs. Similar acquisitions by other companies like Exxon Mobil and Chevron Corporation have also been reported 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. In addition, tomorrow will see the publication of the country’s inflation figures for January in the United States.

By Editor

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