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Today in the Market (2/12/2024)

Good Morning! On Monday, U.S. equities had a varied performance after the S&P 500 index’s record-breaking finish in the previous session. Investors are anticipating the first significant inflation update of the year and the next wave of earnings announcements.

The S&P 500 lost its momentum and ended the day under by 0.09%, while the Dow Jones saw gains of 0.33%. The Nasdaq had a similar story as the S&P and fell by 0.30%.

$26 BILLION DEAL

Diamondback Energy (FANG) has reached an agreement to acquire Endeavor Energy Resources, a privately owned company, for a total of $26 billion, which includes acquiring their debt. This acquisition will result in the development of a prominent player in the Permian Shale region and is one of a series of significant energy transactions that have recently taken place.

The deal. Diamondback will acquire Endeavor, which was established by wildcatter Autry Stephens, by offering a payment of 117.3 million FANG shares and $8 billion in cash. In addition, existing Diamondback holders will hold a 60.5% ownership stake in the merged company. However, if it does not go through, then… According to a filing, the agreement with Endeavor includes a termination fee worth $1.4 billion

So what could these two companies achieve? Both firms, located opposite one another in Midland, Texas, the hub of the Permian area, will together produce 816,000 barrels per day. To put that in perspective, this production surpasses the output of Marathon Oil Corp. (MRO) and Devon Energy Corp. (DVN).

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