A combination of Diamondback and Endeavor would be the latest in a string of major mergers that has reshaped the corporate landscape in US shale oil recently. In the previous 12 months, Exxon Mobil Corp. agreed to acquire Pioneer Resources for about $60 billion dollars, Chevron Corp. agreed to buy Hess Corp. For about $53 billion, and Occidental Petroleum Corp. reached an accord to purchase CrownRock LP for about $10.8 billion.
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Bears. Beats. Best. Balance Sheets.
I'm predicting a two donkey DP show
but...but...my VP says We ArE tHe BeSt In ThE iNdUsTrY
Shale oil only works at scale....large scale. The treadmill is unsustainable in a pure play model. Even Diamond/Endeavor will need to either be gobbled some day or diversify. Gotta have some production that doesn't go on screaming decline within 60 days of coming online. It was never going to work....especially once the investors said no more over spend. That was the death nail.
Plenty by LCO
I was in an all employee meeting with Concho Resources several years ago and before covid. CEO Tim Leach said consolidation is the key to the Permian. It's happening.
Might turn into a Donkey Show before its over
No, a ONE HORSE TOWN.