Diamondback's Acquisition Steals the Show

Nilanjan Choudhury


Diamondback Energy (FANG) took the acquisition route to expand market reach in the Permian play, while ConocoPhillips (COP) secured a payout from Venezuela.

It was a week where oil prices suffered another loss but natural gas futures ended flat.

On the news front, shale producer Diamondback Energy, Inc. FANG agreed to buy smaller rival Energen Corporation EGN in a $9.2 billion deal, while upstream biggie ConocoPhillips COP settled a $2 billion arbitration award with Venezuela's state-run PDVSA. 

Overall, it was another mixed week for the sector. While West Texas Intermediate (WTI) crude futures fell around 2.5% to close at $65.91 per barrel, natural gas prices stayed put at $2.946 per million Btu (MMBtu). (See the last Oil & Gas Stock Roundup here: Occidental & Cheniere's Q2, Apache's Midstream Partnership & More)

The U.S. crude benchmark slipped for the sixth time in seven weeks after the Energy Department's inventory release showed that stockpiles recorded a shock weekly build despite strong refinery utilization. On a further bearish note, distillate inventories jumped, while domestic oil production continues to be robust.

Growing concerns about demand growth amid escalating trade conflict between the worlds biggest oil consumers - the United States and China. also pressured oil futures. Signs of slowing growth in emerging market economies also played spoilsport, while the dollar strength made the greenback-priced crude dearer for investors hol....

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