Why Diamondback Energy Stock Dropped More Than 11% in September

Shares of Diamondback Energy (NASDAQ: FANG) slumped 11.6% in September, according to data provided by S&P Global Market Intelligence. Lower crude oil prices weighed on the oil company's stock price last month. That offset some positive news for the oil producer. Crude oil prices continued to cool off last month. West Texas Intermediate (WTI), the primary U.S. oil price benchmark, fell 7.3% for the month, closing at a little more than $68 per barrel. WTI has now lost 16.4% over the past quarter. Weighing on oil are growing expectations that supplies will rise as OPEC members might boost their production in December. That would come amid demand concerns about a potential slowdown of the global economy. Lower oil prices will impact the cash flows of oil companies like Diamondback Energy, which weighed on oil stock prices last month. Lower oil prices overshadowed some positive strategic developments for the oil company last month. The biggest was closing its $26 billion merger with Endeavor Energy Resources. The transaction will make Diamondback bigger and better. It enhances its premier position in the Permian Basin. The highly accretive deal should increase its free cash flow per share by about 10% next year. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool