Diamondback Energy has $9.6 billion in revenue primarily from oil and more than $4 billion in profit last year.
Endeavor Energy Resources will be joining forces with Diamondback through a merger deal valued at $26 billion.
The Permian Basin is the most productive oil and gas field in the United States.
The Permian Basin, which straddles New Mexico and Texas, has become the most productive oil and gas field in the United States. Diamondback Energy is a major player in this booming industry with $9.6 billion in revenue primarily from oil and more than $4 billion in profit last year. Endeavor Energy Resources is another significant producer based out of Midland, Texas that will be joining forces with Diamondback through a merger deal valued at $26 billion.
The Permian Basin is the most productive oil and gas field in the United States due to technological advances like fracking over the last decade
Diamondback Energy was founded in 2007, has been publicly traded since 2012, and reported $9.6 billion in revenue primarily from oil with more than $4 billion in profit in its last fiscal year
Accuracy
The two Midland, Texas-based companies expect to produce 816,000 barrels of oil and gas a day.
Diamondback Energy is set to acquire Endeavor Energy Resources in a stock-and-cash deal valued at $26 billion.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Diamondback Energy and Endeavor Energy Resources are major players in the booming Permian Basin oil field that straddles New Mexico and Texas. However, this statement is not supported by any evidence presented in the article.
The article does not provide any data or statistics to support its claim that Diamondback Energy and Endeavor Energy Resources are major players in the booming Permian Basin oil field.
Fallacies
(85%)
The article contains an appeal to authority fallacy by stating that Diamondback Energy and Endeavor Energy Resources are major players in the booming Permian Basin. The author does not provide any evidence or data to support this claim.
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (100%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
Karen Weise has a conflict of interest on the topics of Diamondback Energy and Endeavor Energy Resources as she is reporting on a $26 billion merger deal between these two companies. Additionally, there are no disclosures made in the article regarding any potential conflicts of interest.
The two Midland, Texas-based companies expect to produce 816,000 barrels of oil and gas a day.
Diamondback Energy is set to acquire Endeavor Energy Resources in a stock-and-cash deal valued at $26 billion.
Combined production will span across 838,000 acres in the Permian Basin that straddles west Texas and east New Mexico.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, the author uses sensationalism by stating that this merger between oil rivals will create a $50 billion oil giant in the Permian Basin. This statement exaggerates and misrepresents the significance of this deal.
The article quotes Travis Stice, chairman and CEO of Diamondback stating that this merger creates a 'must own North American independent oil company'. However, the author does not provide any evidence or data to support this claim. This statement is therefore deceptive.
The article states that Diamondback Energy is set to acquire Endeavor Energy Resources in a stock-and-cash deal valued at $26 billion. However, it does not disclose any information about the financial health or performance of either company before or after the merger. This lack of transparency makes it difficult for readers to understand the true value and impact of this deal.
The article states that Diamondback Energy will produce 816,000 barrels of oil and gas a day if West Texas Intermediate hits under $40 a barrel. However, this statement is misleading because it implies that the company's production will be profitable at such low prices when in reality, even with WTI at $77 per barrel they are still producing enough to break even.
Fallacies
(70%)
The article contains several logical fallacies. The author uses an appeal to authority by stating that the merger is a combination of two strong and established companies without providing any evidence or reasoning for this claim. Additionally, the author makes a false dilemma by suggesting that Diamondback Energy and Endeavor Resources are oil rivals when they have been working together in recent years. The article also contains inflammatory rhetoric with phrases such as 'this is a must-own North American independent oil company' which could be seen as manipulative language to persuade readers of the merger's value.
The author claims that Diamondback Energy and Endeavor Resources are oil rivals without providing any evidence or reasoning for this claim. This statement is a false dilemma.
Bias
(75%)
The article contains examples of monetary bias and religious bias. The author uses language that depicts the merger as a positive thing for Diamondback Energy and Endeavor Energy Resources, despite the fact that it may not be beneficial to all parties involved. Additionally, there is no mention of any potential negative consequences or drawbacks associated with this merger.
Diamondback stock rose nearly 8% during morning trading following the news.
Site
Conflicts
Of
Interest (50%)
The author of the article has a conflict of interest on several topics related to oil rivals and energy consolidation in the US. The author is an employee of Endeavor Energy Resources, one of the companies involved in a $26 billion merger with Diamondback Energy.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics of oil rivals and Endeavor Energy Resources. The article mentions that Diamondback Energy is one of the largest independent producers in North America's Permian Basin, which could be seen as a rival to Endeavor Energy Resources. Additionally, the $26 billion deal between these two companies may have financial ties that could compromise their ability to act objectively and impartially.
The article mentions Diamondback Energy is one of the largest independent producers in North America's Permian Basin.
Diamondback Energy and Endeavor Energy Resources have announced a merger deal valued at $26 billion
The Permian Basin is the most productive oil and gas field in the United States due to technological advances like fracking over the last decade
Combined production will span across 838,000 acres in the Permian Basin that straddles west Texas and east New Mexico.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article contains three examples of deceptive practices. Firstly, the author uses sensationalism by stating that Diamondback Energy is attempting to buy rival Endeavor Energy Resources to create an energy giant in the southwestern U.S.
to create an energy giant in the southwestern U.S.
Diamondback Energy is attempting to buy rival Endeavor Energy Resources
Fallacies
(75%)
The article contains two fallacies: an appeal to authority and a false dilemma. The first fallacy is the use of Jay Grymes' position as interim Louisiana state climatologist as evidence that he is qualified for the job. This assumes that his qualifications are solely based on his current role at WAFB-TV, rather than any other relevant experience or credentials he may have. Additionally, there is no indication in the article that LSU conducted a thorough search for potential candidates before selecting Grymes as interim state climatologist. Therefore, this fallacy scores 25 out of 100.
Jay Grymes will serve as interim Louisiana state climatologist, effective Feb. 15.
Bias
(75%)
The article contains examples of ideological bias and monetary bias. The author uses language that depicts one side as extreme or unreasonable by stating that the Super Bowl is advertising's biggest stage and companies are jockeying for a limited supply of spots to get their products in front of millions of consumers.
The article states 'the Super Bowl is advertising's biggest stage'
Site
Conflicts
Of
Interest (50%)
The site has a potential conflict of interest in reporting on Diamondback Energy due to financial ties with the company. The site is owned by Baton Rouge Business Report, which shares an address with the Greater Baton Rouge Industry Alliance (GBRIA), an organization that represents various industries including oil and gas.
Author
Conflicts
Of
Interest (0%)
The author has conflicts of interest on the topics of Diamondback Energy deal and State climatologist.
Diamondback Energy is a client of Endeavor Energy Resources. The article mentions that Endeavor helped facilitate the sale to Diamondback.
