Wall Street gives seal of approval to the Big Shale era
![Wall Street gives seal of approval to the Big Shale era](https://sustainabilityeconomicsnews.com/wp-content/uploads/2024/02/Wall-st.webp)
The recent $26 billion merger of two Texas oil companies marks the latest in a series of deals propelling the era of Big Shale. Wall Street, previously skeptical of the sector for most of the last decade, now seems fully invested.
Diamondback Energy Inc. bought Endeavor Energy Resources LP, wrapping up a year of about $250 billion in US oil and natural gas deals that combined small companies into bigger ones.
Diamondback confidently said it’s the top stock in America’s richest oil field. Unlike usual reactions to deals, Diamondback’s stock jumped 11% in hours, showing investors like the move.
By the end of the week, the shale company hit a record high and grew its market value by $5 billion, even though the deal won’t happen for a few months.
“It’s kind of like Pac-Man right now: consolidate or get eaten,” said Kate Richard, chief executive officer at Warwick, which has invested in thousands of shale wells.
“We’re probably going back to the ‘70s, where there were seven to 10 major players in the US.”
Teresa Thomas, US energy leader at Deloitte LLP, said, “Big buyers are likely to spearhead a fresh wave of efficiency gains driven by technological advancements in both production and cost management.”
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