Major Acquisition Alert

MERGER: Major Oil Acquisition

Diamondback Energy is set to acquire Endeavor Energy Resources LP in a massive $26 billion deal, combining cash and stock, to become the leading operator in the Permian Basin. The deal involves Diamondback issuing 117.3 million shares and paying $8 billion in cash. After the merger, Diamondback shareholders will control 60.5% of the new entity, with the remaining ownership going to Endeavor's private shareholders.

This acquisition is part of a larger trend of strategic consolidations in the US energy sector aimed at securing prime drilling locations and improving operational efficiencies. It signifies the shale industry's shift towards larger, more stable companies capable of attracting broader investor interest while maintaining competitive returns.

Diamondback's acquisition of Endeavor marks a strategic expansion and fortification for Diamondback amidst a competitive merger landscape. The combined operations will cover 838,000 net acres with a production output of 816,000 barrels per day. Diamondback's board approved the deal, which is financed through a mix of cash, credit, and debt, expected to close in the fourth quarter.

🎯 GRIT TAKE: We absolutely love this acquisition due...upgrade to VIP to read the full GRIT Take. 

MERGER: Major Oil Acquisition

Diamondback Energy is set to acquire Endeavor Energy Resources LP in a massive $26 billion deal, combining cash and stock, to become the leading operator in the Permian Basin. The deal involves Diamondback issuing 117.3 million shares and paying $8 billion in cash. After the merger, Diamondback shareholders will control 60.5% of the new entity, with the remaining ownership going to Endeavor's private shareholders.

This acquisition is part of a larger trend of strategic consolidations in the US energy sector to secure prime drilling locations and improve operational efficiencies. It signifies the shale industry's shift towards larger, more stable companies capable of attracting broader investor interest while maintaining competitive returns.

Diamondback's acquisition of Endeavor marks a strategic expansion and fortification for Diamondback amidst a competitive merger landscape. The combined operations will cover 838,000 net acres with a production output of 816,000 barrels per day. Diamondback's board approved the deal, which is financed through a mix of cash, credit, and debt, expected to close in the fourth quarter.

🎯 GRIT TAKE: We absolutely love this acquisition because of what it means for their long-term plan. Being the leader in the Permian Basin is massive for Dimaondback. The Permian Basin serves as the foundation for the increase in oil production in the US. Last year, American production soared to an all-time high, surpassing Saudi Arabia's output by approximately 45%, primarily due to the cost-effectiveness and efficiency of drilling and fracking wells in the Permian compared to many other areas.

ELON: Must Testify

According to a recent court filing, Elon Musk has been ordered by a U.S. judge to testify in an SEC investigation into his 2022 Twitter purchase. The SEC is looking into potential securities fraud by Musk during his acquisition of Twitter shares before his $44 billion takeover.

Despite Musk's legal team arguing the SEC's subpoena was harassment, Judge Laurel Beeler ruled that the subpoena was within the SEC's rights, calling for specific and relevant information for the investigation. Musk and the SEC have a week to arrange his testimony.

Musk has not commented on the order and has a history of challenging federal regulatory authorities. He has contested a previous SEC settlement requiring tweet approvals and sued the NLRB over a complaint related to employee dismissals after they criticized him, arguing it violated constitutional rights.

CITIGROUP: Urged By Regulators

U.S. regulators have urged Citigroup to urgently revise how it assesses trading partners' default risk, while internal audits criticized its oversight improvement plan as insufficient. Last year, the Federal Reserve demanded Citigroup refine its risk measurement methods for derivatives counterparties.

Additionally, an internal audit revealed more effort is needed to correct issues identified by regulators, stemming from 2020 consent orders related to risk management and control deficiencies. The Office of the Comptroller of the Currency also found Citigroup's data integrity progress lacking, further challenging the bank's compliance efforts.

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Barbara Corcoran's journey from a waitress to a real estate mogul and self-made millionaire is a classic American success story. Born in Edgewater, New Jersey, in 1949, Corcoran's entrepreneurial spirit was evident early on. With a $1,000 loan from her boyfriend in 1973, she co-founded The Corcoran Group, a New York City real estate company.

Her innovative approach to marketing and selling real estate and her keen ability to identify market trends propelled the company to the forefront of the New York real estate scene. Corcoran's flair for turning properties into coveted addresses and her knack for storytelling in sales made her a prominent figure in the industry. In 2001, she sold her business for $66 million, marking her official entry into the millionaire's club.

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