Global Markets Mixed; Consolidation in Oil Industry Continues with Diamondback Energy’s Merger of Endeavor Energy Resources

Diamondback acquires Endeavor Energy as consolidation in the oil sector remains steady on the stock exchange

In the financial markets, stocks opened with a slight rise during the first half hour. The Dow Jones of large companies was up 0.05 percent, while the Nasdaq, which focuses on technology, was up 0.11 percent. The broader S&P 500, which hit a new record high on Friday and exceeded 5000 points for the first time in its history, rose by only 0.03 percent.

Meanwhile, an oil company called Diamondback Energy announced that it would buy its competitor Endeavor Energy Resources for $26 billion in cash and stock. Diamondback’s share price jumped more than seven percent after the announcement of the acquisition. The merger is seen as part of an industry trend towards consolidation as companies seek to acquire drilling areas and cut costs. In recent months, other companies such as Exxon Mobil have acquired Pioneer Resources for about $60 billion and Chevron Corporation has acquired Hess Corpion for $53 billion euros. Occidental Petroleum also bought CrownRock for about $10.8 billion in a similar move.

The earnings season continues on Wall Street with Coca-Cola announcing its October-January results and financial statements tomorrow, Tuesday. Additionally, macroeconomic figures will be released in the US when inflation figures for January are published later today.

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