FANG

Diamondback Energy Inc

Energy


Presented:09/23/2020
Price:$29.90
Cap:$4.72B
Current Price:$179.77
Cap:$52.99B

Presented

Date09/23/2020
Price$29.90
Market Cap$4.72B
Ent Value$13.61B
P/E RatioN/A
Book Value$67.89
Div Yield4.39%
Shares O/S157.82M
Ave Daily Vol2,511,000
Short Int6.31%

Current

Price$179.77
Market Cap$52.99B
Diamondback Energy, Inc. is an independent oil and natural gas company, which engages in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves. It operates through the Upstream and Midstream Services segments. The Upstream segment focuses on the Permian Basin operations in West Texas. The Midstream Services segment involves in the Midland and Delaware Basins. The company was founded in December 2007 and is headquartered in Midland, TX.

Publicly traded companies mentioned herein: Diamondback Energy Inc (FANG)

Highlights

The presenter is short shares of Diamondback Energy Inc (FANG), an oil and natural gas producer that operates in the Permian Basin. He notes that the company has run out of Tier 1 land to drill, which will negatively impact its FCF efficiency since it will need to ramp drilling activity to generate the same level of volume. FCF could miss expectations in 2020, and he anticipates these issues accelerating in 2022. FANG trades at ~7.5x the consensus 2022 FCF estimate of $808MM, and the presenter values the stock at ~7.5x his 2022 FCF estimate of $300MM. This yields a price target of ~$16 per share, almost 50% downside from the current ~$30 share price. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.