Diamondback says it should be Permian's 'consolidator of choice' as oil outlook dims

(Reuters) -Shale driller Diamondback Energy said on Tuesday it should remain the Permian Basin's "consolidator of choice" as shale activity slows and the company focuses on shareholder returns following its $26 billion merger with Endeavor Energy. Diamondback's shares fell 3.6% to $142.67 in morning trade after it posted second-quarter profit below analysts' estimates, hit by a 20% year-on-year drop in Brent crude prices amid weak global growth, OPEC+ supply increases and geopolitical tensions. Diamondback dropped four rigs in the second quarter, reducing its activity to 13 rigs and lowered its 2025 capital budget around 3% at midpoint to $3.4–$3.6 billion.