August 16, 2018 - 8:00 AM EDT
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Today’s Research Reports on Stocks to Watch: Diamondback Energy and General Electric

NEW YORK, NY / ACCESSWIRE / August 16, 2018 / Diamondback Energy was deep in the red on Wednesday following news that the company has agreed to buy rival Energen for about $84.95 a share. Shares of General Electric also tumbled down to a 9-year low on no specific news.

RDI Initiates Coverage on:

Diamondback Energy, Inc.

General Electric Company

Diamondback Energy, Inc. shares closed down 12% on Wednesday on nearly 11.5 million shares traded. The drop came after the company's all-stock, $9.2 billion deal for shale rival Energen Corp. Earlier this week Diamondback had said it would pay roughly $84.95 a share for Energen. This was a 16% premium compared to the company's closing price on Tuesday. "The transaction is strategically compelling and delivers significant financial accretion to Energen shareholders," said Keith Meister, managing partner of Corvex Management, which has about an 8.3% stake in Energen. "The pro forma company should be poised for many years of growth at an industry leading cost structure." Investor Carl Icahn also has around 8.9 percent stake of Energen. Diamondback Chief Executive Travis Stice stated, "This transaction represents a transformational moment for both Diamondback and Energen shareholders as they are set to benefit from owning a milestone large-cap independent that is uniquely positioned to deliver unmatched growth and returns in the Permian basin." According to Stice, this transaction has the potential to bring in $2 billion in synergies starting in 2019 and has the potential to add another $1 billion in cost savings and higher revenues thereafter.

Access RDI’s Diamondback Energy, Inc. Research Report at:

General Electric Company shares closed down 1.05% on Wednesday with mediocre trading volume. Yesterday the industrial giant hit a brand new 9-year low, falling under $12 for the first time since July of 2009. There wasn't any specific news or catalyst to explain the drop but investors may be concerned with the company's restructuring plans. CEO John Flannery is aiming to cut GE's operations down to its three core businesses of aviation, power and healthcare. The company reported its second quarter financial results last month which were better than expected. For the quarter, GE earned 19 cents a share on revenue of $30.1 billion, while analysts were looking for EPS of 17 cents on revenue of $29.31 billion.

Access RDI’s General Electric Company Research Report at:

Our Actionable Research on Diamondback Energy, Inc. (NASDAQ: FANG) and General Electric Company (NYSE: GE) can be downloaded free of charge at Research Driven Investing.

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Source: ACCESSWIRE Investor Awareness (August 16, 2018 - 8:00 AM EDT)

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