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.

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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.

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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