Petrie Partners, LLC’s Post

$26 billion merger of Texas oil firms signals Big Shale's rise. Wall Street, once skeptical, now fully embraces sector's potential. 💰🇺🇸 . . #BigShaleMerger #OilIndustryConsolidation #DiamondbackEndeavorMerger #EnergySectorShift #WallStreetInvestment #ShaleDominance #OilMarketMergers #EfficiencyAdvancements #TechnologicalInnovation #USOilIndustry . . Read the full story here: https://lnkd.in/gqveDiCF

Diamondback announced the merger of Diamondback and Endeavor Energy Resource creating a $50 billion worth of oil and gas company. The stock-and-cash deal valued Endeavor at around $26 billion. Already, deal volumes in the U.S. are up 78% compared with a year earlier, according to Dealogic. Pricier debt and a tighter regulatory environment crimped merger and acquisition activity in 2023, but many advisers expect a busier 2024 as companies put their extra cash to work and rates appear poised to come down. Read more on The Wall Street Journal: https://lnkd.in/g9cSSUx4

📊 1 WEEK 1 DEAL - DEVON ENERGY ACQUIRES GRAYSON MILL ENERGY   Devon Energy has acquired Grayson Mill Energy in a significant move within the energy sector.   This acquisition creates a leading 430,000 net acre position in the Williston Basin and triples Devon’s in-basin production to approximately 150,000 barrels of oil equivalent per day (BOED).   The deal is immediately accretive to free cash flow, prompting Devon's board to expand its share-repurchase authorization by 67%, reaching $5 billion through mid-2026.   This transaction aligns with Devon’s strategy of enhancing its diversified portfolio and competing for capital.   The acquisition is part of a broader trend in the energy industry, following recent multibillion-dollar mergers such as APA-Callon, Chevron-Hess, and ConocoPhillips-Marathon Oil.   #1Week1Deal #InvestmentBanking #OneWeekOneDeal #MergersAndAcquisitions

🚀 Devon Energy Announces Strategic Acquisition and Expands Share-Repurchase Authorization! In the beginning of this month Devon Energy has announced a strategic acquisition in the Williston Basin, significantly enhancing their operational scale and oil production capabilities. Alongside this acquisition, Devon has expanded their share-repurchase authorization by 67% to $5 billion, underlining their commitment to delivering long-term value to shareholders. “The acquisition of Grayson Mill is an excellent strategic fit for Devon that allows us to efficiently expand our oil production and operating scale while capturing a meaningful runway of highly economic drilling inventory,” stated Rick Muncrief, Devon’s president and CEO. “This transaction also creates immediate value within our financial framework by delivering sustainable accretion to earnings and free cash flow that will result in higher distributions to shareholders over time.” TRANSACTION HIGHLIGHTS Immediately accretive to financial metrics – The transaction is immediately accretive to Devon’s key per-share financial measures, including earnings, cash flow, free cash flow and net asset value. The assets were acquired at less than 4-times EBITDAX, with an estimated free cash flow yield of 15 percent at an $80 WTI oil price. Enhances scale and scope of operations – The acquisition adds a high-margin production mix that further positions Devon as one of the largest oil producers in the U.S. Pro forma for the transaction, the company estimates its oil production to average 375,000 barrels per day, with total production reaching an average of 765,000 oil-equivalent barrels (Boe) per day across its diversified portfolio of assets.(1) #DevonEnergy , #GraysonMillEnergy , #Willistonasin , #Energy , #MergersAndAcquisitions , #OilIndustry , #Acquisitions , #StrategicGrowth , #EnergySector , #MA , #Investments , #Mergers , #Cooperation , #MandAmarket , #BusinessNews , #BusinessGrowth , #Investment , #CapitalMarket https://lnkd.in/g7JEm-ar

Rivals Diamondback Energy and Endeavor Energy Resources are set to merge, creating a colossal oil-and-gas company worth over $50 billion. The deal comes amid increasing oil prices and a drive to acquire prime acreage, leading to consolidation within the energy sector. The merger, which values Endeavor at approximately $26 billion, will result in Diamondback shareholders owning the majority of the new company. With Diamondback's market value of around $27 billion, this merger is set to create a major player in the industry.

Diamondback Energy, an independent oil and natural gas company headquartered in Midland, Texas, completed the acquisition of Endeavor Energy Resources, LP, a privately-held exploration and production company, for $26bn. “We are pleased to announce the closing of this transformative merger, creating a ‘must own’ North American independent oil company. Today, Diamondback is not only bigger, but better. Our high-quality inventory located in the heart of the Permian Basin gives us the running room to do what we do best: turn rock into cash flow,” Travis Stice, Diamondback Energy Chairman and CEO. Diamondback Energy (led by Travis Stice and Kaes Van't Hof’) was advised by Citi, Jefferies and Wachtell, Lipton, Rosen & Katz (led by Steven Green and Zachary Podolsky). Financial advisors were advised by Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates (led by Ann Beth Stebbins). Endeavor Energy Resources (led by Autry C. Stephens and Lance Robertson) was advised by Goldman Sachs, J.P. Morgan, Paul, Weiss, Rifkind, Wharton & Garrison LLP (led by Krishna Veeraraghavan, Benjamin Goodchild, Brian Krause and Alexia Yang), Vinson & Elkins (led by Jackson O’Maley, Bryan Loocke and Douglas E. McWilliams) and Joele Frank (led by Matthew Sherman). Link to the article in the comments. #MergersAcquisitionsDivestitures #Energy #OilandGas

Mercer Capital’s Andrew Frew, ASA, ABV was quoted in Mergers and Acquisitions - themiddlemarket.com. In the article, “Eagle Ford Drama: Board Battle Brews for SilverBow,” Andy talks about the hyper focus on the big public companies in the Permian Basin while the Eagle Ford Basin remains less known, and how that might play out in future oil and gas transactions. https://mer.cr/45pIbRl | #eagleford #oilandgas #transactions #mergersandacquisitions

Diamondback Energy stands as a premier independent oil producer in the U.S., boasting prime Permian acreage across the #Midland, #Delaware, and #Central #Basin. Last year's production hit 263,000 bbl/d, with a projected 2024 full-year guidance of 275,000 bbl/d. February saw Diamondback's announcement of a $26 billion merger with Endeavor Energy Resources, LP, expanding their net #Permian acreage to 838,000 and potentially elevating combined production to 816,000 bbl/d. Don't miss this operator spotlight featuring Kaes Van't Hof, President and CFO of Diamondback Energy, where you'll gain insights on: • The Endeavor merger's strategic benefits from an insider's perspective. • Analysis of the merger's implications for Diamondback. • Diamondback's operational roadmap for 2024 and beyond. • Potential future M&A prospects. Register now to secure your spot! https://ow.ly/wjsF50R9uVa #SUPERDUG24

Do we sense “new builds” on the horizon? 🤔 Some more “facts” on Noble Corporation acquisition of Diamond Offshore - Consolidation is key. Noble Corp has agreed to acquire Diamond offshore for a cool $2.2b, and will also cover $500m in net debt. This will put Noble’s position as the second-largest offshore and in particular “Deepwater” player behind Transocean and plants a clear fork in the Deepwater road ahead. “The big boys and the rest” We may expect to see more of the same as some are ripe for picking, interesting times ahead. With rig utilisation approaching 90% for the deepwater fleet. Older, less marketable assets have been retired, what is the next move? Investment would be the logical answer which would involve further mergers or acquisitions and who knows maybe even new builds! It’s clear the current fleet will not outlast the demand and as technology gets bigger so will its fleet, watch this space. #oilandgas #offshore #drilling #deepwater

In the ever-evolving landscape of the shale industry, consolidation emerges as the natural progression of a mature sector. Shaped by historical up cycles in Merger and Acquisition and Divestiture (M&A&D) activity, recent mega-deals such as Conoco-Concho, Devon-WPX, and the preceding Shell-BG set the stage for a new era in shale evolution. #energyindustry #upstream #shale #oilandgasindustry #energyinvestment #oilandgas #energytransition #energyfinance https://lnkd.in/dGPzkPew