This Top Oil Stock Makes Another Big Move to Bolster Its Position Against Rivals ExxonMobil and Occidental Petroleum
There has been a flurry of acquisitions in the oil patch over the past couple of years. The biggest was ExxonMobil's (NYSE: XOM) more than $60 billion megadeal for Pioneer Natural Resources to solidify its position in the oil-rich Permian Basin. That transaction forced several rivals to also make deals to bolster their position in that key basin, including Occidental Petroleum's (NYSE: OXY) $12 billion purchase of CrownRock and Diamondback Energy's (NASDAQ: FANG) $26 billion merger with Endeavor Energy Resources. Diamondback Energy is now at it again with another multibillion-dollar deal to further expand its position in the Permian. That acquisition puts the oil stock in an even stronger position to compete against its big oil rivals.Diamondback Energy has agreed to acquire certain subsidiaries of Double Eagle IV Midco for 6.9 million shares and $3 billion in cash (about $4.1 billion total). The deal will add about 40,000 net acres in the core of the Midland Basin side of the Permian. That largely undeveloped land bank has 407 estimated remaining drilling locations. Continue reading
There has been a flurry of acquisitions in the oil patch over the past couple of years. The biggest was ExxonMobil's (NYSE: XOM) more than $60 billion megadeal for Pioneer Natural Resources to solidify its position in the oil-rich Permian Basin. That transaction forced several rivals to also make deals to bolster their position in that key basin, including Occidental Petroleum's (NYSE: OXY) $12 billion purchase of CrownRock and Diamondback Energy's (NASDAQ: FANG) $26 billion merger with Endeavor Energy Resources.
Diamondback Energy is now at it again with another multibillion-dollar deal to further expand its position in the Permian. That acquisition puts the oil stock in an even stronger position to compete against its big oil rivals.
Diamondback Energy has agreed to acquire certain subsidiaries of Double Eagle IV Midco for 6.9 million shares and $3 billion in cash (about $4.1 billion total). The deal will add about 40,000 net acres in the core of the Midland Basin side of the Permian. That largely undeveloped land bank has 407 estimated remaining drilling locations.
