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Diamondback and Endeavor merge and create the largest oil company in the southern US

Date: February 29, 2024 Time: 15:10:20

The American oil companies Diamondback and Endeavor announced this Monday that they are merging in an operation valued at 26,000 million dollars (about 24,100 million euros) and that will generate one of the main companies in the buoyant area of ​​the Permian Basin, between the states of Texas . and New Mexico, the most productive oil and gas region in the country.

In a statement, Diamondback CEO Travis Stice noted that for twelve years his company has been “the leading low-cost operator in the Permian Basin” and now “it is not only getting bigger, but better,” especially thanks to the synergies of capital and surface area for extractions.

According to the details of the note, the resulting firm, which will be based in Midland (Texas), will have an available surface area for exploitation of almost 3,400 square kilometers and will be capable of producing 816,000 barrels of product equivalent to crude oil.

According to The Wall Street Journal, which announced the imminence of an agreement, the resulting firm will be worth more than $50 billion, placing it at the level of other major oil companies that in recent months have absorbed rivals, giving rise to a Increasingly concentrated market.

America’s Arabia

The Permian Basin, located between the states of Texas and New Mexico, has become the most productive oil and gas field in the United States.

Diamondback, which is dedicated to both oil and gas extraction, was created in 2012 and has multiplied its production by 50, which reaches about 260,000 barrels of crude oil per day, the newspaper notes.

Endeavor, created in 1979 by billionaire Autry Stephens and specialized in the extraction of fuels with the technique of hydraulic fracturing (“fracking”), is the firm with the largest useful inventory in the oil zone of the Permian Basin, he adds.

After the news broke, Diamondback soared 10% on Wall Street; In contrast, Endeavor is not listed on the stock exchange.

This is the latest merger or purchase operation in the sector: last December Occidental acquired CrownRock for 12 billion, and previously Exxon Mobil bought Pioneer Natural Resources for 65 billion and Chevron bought Hess for 60 billion.

There has also been concentration among gas companies recently: Chesapeake announced last month that it was purchasing Southwestern for 7.4 billion.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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