For Immediate Release

Chicago, IL – March 21, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Diamondback Energy, Inc. FANG, Exxon Mobil Corp. XOM, Chevron Corp. CVX, Pioneer Natural Resources PXD and Hess Corporation HES.

Here are highlights from Wednesday’s Analyst Blog:

3 Stocks to Watch on Oil Companies' Rush to Drill on Land

The energy market has witnessed significant mega-merger deals as oil prices continue to stay in bullish territory. Oil and gas companies are swiftly pursuing additional drilling resources in key basins and shale plays, aiming to boost profits through increased production of these commodities.

High Oil Price & Merger Frenzy

The West Texas Intermediate crude has surpassed the $80 per barrel mark, which is highly conducive for exploration and production endeavors. Per the short-term energy outlook from the U.S. Energy Information Administration, the average spot price for West Texas Intermediate crude is likely to be $82.15 per barrel this year.

The handsome oil prices since Russia’s full-scale invasion of Ukraine two years ago in early 2022 and the conducive crude outlook may partly be prompting mega-merger deals in the energy space. Producing more of the commodity to capitalize on the promising crude prices will become comparatively easier while merging with rivals, thereby gaining rights to key oil and natural gas reserves.

3 Stocks in the Radar

We are highlighting three significant merger deals that have occurred, providing incentives for investors to monitor companies such as Diamondback Energy, Inc., Exxon Mobil Corp. and Chevron Corp. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Last month, the energy market witnessed a $26 billion deal between Diamondback Energy and Endeavor Energy Resources LP to create a leading oil and natural player in the Permian – the most prolific basin in the United States.

The merger will create significant shareholder value as the combined company will have a huge inventory of drilling sites and lower operating cost structures.

ExxonMobil has also entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources, underscoring its motives to further strengthen its presence in the Permian. This is because Pioneer Natural is one of the foremost oil producers operating in the Permian Basin. With the deal closure, expected in the first half of 2024, Permian production of the integrated energy major will more than double to 1.3 million barrels of oil equivalent per day (MMBoE/D). Furthermore, ExxonMobil projected that this production figure will rise to an impressive 2 MMBoE/D by 2027.