• Fri. Mar 1st, 2024

Wall Street Opens Sluggishly, Diamondback Energy Makes Major Acquisition in Energy Industry

ByEditor

Feb 13, 2024
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 a modest effort to rise slightly during the first half hour. The S&P 500, which reached a new record high on Friday, was up 0.03 percent at the time. Meanwhile, the Nasdaq, which focuses on technology sector companies, was up 0.11 percent. The Dow Jones of large companies was also up 0.05 percent.

Meanwhile in the energy industry, news broke that Diamondback Energy would be acquiring its competitor Endeavor Energy Resources for $26 billion. Diamondback will pay the purchase price in cash and stock, and this acquisition is part of the industry’s trend of consolidation as companies seek to acquire drilling areas and cut costs. This move caused Diamondback’s share price to rise more than seven percent, making it the largest operator in the traditional Texas oil production area of the Permian Basin. Similar acquisitions by other companies such as Exxon Mobil and Chevron Corporation have also been reported in recent months.

As earnings season continues on Wall Street, investors are eagerly awaiting Coca Cola’s announcement of its October-January results and last year’s financial statements tomorrow. Additionally, tomorrow will see the publication of inflation figures for January in the United States which will provide further insights into the country’s economic health.

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