This week’s $26 billion combination of two Texas oil companies is the latest in a series of deals that’s ushering in the era of Big Shale. Wall Street, which eyed the sector with skepticism for most of the last decade, appears to be all in. Diamondback Energy Inc.’s takeover of Endeavor Energy Resources LP announced on Feb. 12 topped off a year of roughly $250 billion in US oil and natural gas deals that consolidated a fractured collection of private wildcatters into larger corporations. By the end of the week, the shale explorer touched a record high and swelled its market valuation by $5 billion, even though the transaction won’t close for several months. Once the Endeavor deal is complete, Diamondback will double its market value to around $60 billion, making it a contender with EOG Resources Inc. for the title of biggest pure-play shale stock.

Source: Mint February 18, 2024 13:47 UTC