WPX - The Oil Stock Merger Wave Continues
A wave of consolidation has washed over the oil sector in the last month. The latest deal came on Tuesday as Pioneer Natural Resources (NYSE: PXD) reached an agreement to buy fellow Permian Basin producer Parsley Energy (NYSE: PE) . That merger is the second this week -- ConocoPhillips (NYSE: COP) agreed to buy Concho Resources (NYSE: CXO) on Monday -- and the third in less than a month ( Devon Energy (NYSE: DVN) sealed a merger-of-equals transaction with WPX Energy (NYSE: WPX) in late September). Meanwhile, it's the fourth notable deal in the oil patch following a crash in crude prices back in March, with Chevron 's (NYSE: CVX) purchase of Noble Energy kicking things off in July.
These deals will likely drive additional consolidation in the sector, which has been hammered by oil price volatility and underperformance due to poor capital allocation decisions. Here's a look at the latest deal and ones that might follow.
Image source: Getty Images.
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The Oil Stock Merger Wave Continues