Oil Companies Announce Massive Merger Amid Rush to Snatch up Drilling Land

Oil Companies Announce , Massive Merger Amid Rush , to Snatch up Drilling Land.
'The Guardian' reports that two United States oil
and gas companies have announced a massive
$26 billion merger in an attempt to increase output. .
Diamondback Energy will purchase
Endeavor Energy Resources, creating
a company valued at approximately $50 billion.
This is a combination of two strong,
established companies merging to
create a ‘must own’ North American
independent oil company, Travis Stice, Chairman and chief executive of Diamondback, via 'The Guardian'.
Endeavor shareholders will reportedly
receive about $117 million in Diamondback shares,
as well as an additional $8 billion in cash. .
The merger will see current
Endeavor shareholders retain just under
40% of the newly created company.
The latest news comes amid a wave of
mergers aimed at increasing output by purchasing
rivals who own the rights to proven oil reserves.
October saw Chevron make a $53 billion deal to
purchase Hess and ExxonMobil finalized a $59.5
billion acquisition of Pioneer Natural Resources.
October saw Chevron make a $53 billion deal to
purchase Hess and ExxonMobil finalized a $59.5
billion acquisition of Pioneer Natural Resources.
The recent acquisition of Endeavor is focused on boosting
extraction of oil and gas from the Permian oilfield,
which spans large swathes of New Mexico and Texas.
In 1979, Endeavor was founded with a single
well in the Permian oilfield and now produces
approximately 400,000 barrels of oil per day.
The International Energy Agency (IEA) has warned
that new fossil fuel developments will push the
world past global warming safety thresholds