Diamondbank Energy (FANG) is close to a merger agreement with privately held Endeavor Energy Resources, according to multiple reports. A deal would create a new Permian Shale giant and the latest in a flurry of big recent deals.
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Diamondback and Endeavor could announce a deal as soon as Monday, The Wall Street Journal reported Sunday, followed by Bloomberg. The deal would value Endeavor, founded by wildcatter Autry Stephens at roughly $25 billion. Diamondback Energy closed Friday with a $27.16 billion market cap.
Diamondback Energy reported fended off other Endeavor suitors, including ConocoPhillips (COP), the WSJ reported, citing sources.
Last October, Exxon Mobil (XOM) agreed to buy Permian Shale giant Pioneer Natural Resources (PXD) for $59.5 billion in an all-stock deal. Including debt, the Exxon-Pioneer deal was $64.5 billion. Later that month, Dow giant Chevron (CVX) announced a $53 billion deal for Hess (HES), which has significant reserves in Guyana.
In other recent deals, Occidental Petroleum (OXY) late last year agreed to buy privately held CrownRock for $10.8 billion. APA Corp. (APA)in January sealed a $4.5 billion takeover agreement with smaller rival Callon Petroleum (CPE).
Diamondback Energy stock rose 1% last week to 151.74, but close below its 50-day moving average on Friday. Shares have a 171.40 buy point in a consolidation going back to October 2023, but has been moving sideways since mid-2022.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
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