In the ongoing consolidation trend in the US oil and gas sector, Diamondback announced on Monday the acquisition of Endeavor for approximately $26 billion. This move will result in the creation of a new energy giant focusing on shale hydrocarbons.
The purchase values Endeavor at around $26 billion, including debt. The amount will be paid in shares, along with $8 billion in cash, as stated in a press release.
The sector is experiencing significant consolidation, marked by mergers and acquisitions, which are particularly favorable as high hydrocarbon prices drive the profits of these companies.
In October, ExxonMobil revealed its $60 billion acquisition of shale specialist Pioneer Natural Resources, which, like Diamondback and Endeavor, concentrates its operations in the vast Permian Basin of West Texas and Southeastern New Mexico.
Chevron also entered the consolidation wave in the same month, announcing an agreement to acquire Hess for $53 billion.
Combined, these transactions represent 5.8 million barrels of oil per day, roughly 45% of the country’s production, highlighting the transformative impact on the US oil and gas landscape.