FANG - This Oil Stock's Buying Binge Continues
Some oil companies avoid mergers and acquisitions (M&A) because they're often costly and can destroy shareholder value. However, for Diamondback Energy (NASDAQ: FANG) , "M&A activity is as fundamental ... as the air that we breathe," according to CEO Travis Stice. That's why the company has steadily gobbled up rivals, growing its scale in the Permian Basin.
Diamondback took in another deep breath this week, agreeing to acquire QEP Resources (NYSE: QEP) and the assets of privately held Guidon Energy for more than $3 billion. The deals enhance its position in the Permian, growing its scale so that it can reduce costs and generate more free cash flow in the currently uncertain operating environment.
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This Oil Stock's Buying Binge Continues