Diamondback Energy (NASDAQ:FANG) Stock

Diamondback Energy

Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.

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All three major U.S. stock indices are down Friday as traders reacted to several sets of fresh data that raised concerns about the economic outlook. 

Consumer Sentiment Drops 10%, UnitedHealth Under Investigation: What&#39;s Driving Markets Friday?

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Diamondback Energy intends to acquire subsidiaries of Double Eagle IV Midco for approximately 6.9 million shares of its common stock and $3 billion in cash. 

Diamondback Bolsters Plans $3 Billion-Plus Double Eagle Acquisition

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Shares of oil and gas companies are trading lower amid a rise in US crude inventories.

All three major U.S. stock indices are down Friday as traders reacted to several sets of fresh data that raised concerns about<a href="https://www.benzinga.com/25/02/43877634/us-stocks-fluctuate-in-preopen-volatility-doesnt-equal-financial-loss-unless-you-sell-says-expert"> the economic outlook.&nbsp;</a>
The University of Michigan consumer sentiment index fell to 64.7 in January, a decline of 10% and a steeper drop than expected. The 5-year inflation outlook in the survey is the highest since 1995 at 3.5% 
Existing home sales sank by 4.9% to a seasonally adjusted rate of 4.08 million in January, the sharpest decline in seven months, according to Trading Economics.&nbsp;
Read Next: <a href="https://www.benzinga.com/general/market-summary/25/02/43884153/us-services-drop-sharply-darkening-picture-of-high-prices-uncertainty-economist-says">US Services Drop Sharply: &#8216;Darkening Picture&#8217; Of High Prices, Uncertainty, Economist Says</a>
February's flash S&amp;P Global PMIs released <a href="https://www.benzinga.com/general/market-summary/25/02/43884153/us-services-drop-sharply-darkening-picture-of-high-prices-uncertainty-economist-says">Friday morning </a>revealed a sharp, unexpected drop in services and raised concerns about the health of the private sector.&nbsp;
"The upbeat mood seen among US businesses at the start of the year has evaporated, replaced with a darkening picture of heightened uncertainty, stalling business activity and rising prices," said Chris Williamson, chief business economist at S&amp;P Global Market Intelligence.&nbsp;
Natural gas futures rose another 4.5% Friday to $4.3/MMBtu, hitting a 25-month high as cold weather increased heating demand and disrupted production. The United States Natural Gas Fund LP (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>), tracking the daily price movements of natural gas futures contracts, climbed 3.2%.&nbsp;
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) was volatile as crypto markets reacted to a $1.4 billion Ethereum (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) hack targeting Bybit&#8217;s cold wallet, <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43886224/bybit-founder-confirms-1-4-billion-ethereum-hack-blames-masked-transaction">one of the largest</a> security breaches in recent history.
<h2 class="wp-block-heading">Friday's Performance In Major US Indices, ETFs</h2>
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1 day % chg.</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,753.44</td>
<td>-1.05%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>6,069.73</td>
<td>-0.78%</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>43,739.57</td>
<td>-0.99%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,231.48</td>
<td>-1.34%</td>
</tr>
</tbody>
</table>
</figure>
<h2 class="wp-block-heading">Friday's Stock Movers:&nbsp;</h2>
Shares of UnitedHealth Group Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNH#NYSE">UNH</a>) slumped nearly 9% after the Wall Street Journal reported the Department of Justice launched an investigation into the company&#8217;s Medicare billing practices.
Stocks reacting to company earnings reports included:&nbsp;
<ul>
<li>Solaris Energy Infrastructure, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SEI#NYSE">SEI</a>) </li>
<li>Iamgold Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IAG#NYSE">IAG</a>) </li>
<li>Celsius Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CELH#NASDAQ">CELH</a>) </li>
<li>Glaukos Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GKOS#NYSE">GKOS</a>) </li>
<li>MercadoLibre, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MELI#NASDAQ">MELI</a>) </li>
<li>The RealReal, Inc. (NASADQ:REAL) </li>
<li>Nu Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NU#NYSE">NU</a>)</li>
<li>Globant S.A. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLOB#NYSE">GLOB</a>) </li>
<li>Block, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XYZ#NYSE">XYZ</a>) </li>
<li>Rivian Automotive, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) </li>
</ul>
Companies reporting on Monday included:&nbsp;
<ul>
<li>Domino&#8217;s Pizza Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/DPZ#NASDAQ">DPZ</a>) </li>
<li>Zoom Communications, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ZM#NASDAQ">ZM</a>) </li>
<li>Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) </li>
<li>Kosmos Energy Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KOS#NYSE">KOS</a>) </li>
<li>Summit Therapeutics Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMMT#NASDAQ">SMMT</a>) </li>
<li>Hovnanian Enterprises, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HOV#NYSE">HOV</a>) </li>
</ul>
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Image created using artificial intelligence via Midjourney.

Consumer Sentiment Drops 10%, UnitedHealth Under Investigation: What's Driving Markets Friday?

David L. Houston to retire from the Board of Directors at the Company's 2025 Annual Meeting of Stockholders

Management

Diamondback Energy Promotes Jere W. Thompson To Executive Vice President And CFO

Travis D. Stice will remain as Executive Chairman through the Company's 2026 Annual Meeting of Stockholders.

Diamondback Energy Names Kaes Van't Hof To Assume CEO Role; Travis D. Stice To Step Down As CEO, Effective As Of 2025 Annual Meeting Of Stockholders

Analyst Ratings

Live On CNBC, Stephanie Link Announces Bought More Diamondback Energy

Truist Securities analyst Neal Dingmann maintains Diamondback Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) with a Buy and raises the price target from $236 to $238.

Price Target

Truist Securities Maintains Buy on Diamondback Energy, Raises Price Target to $238

Morgan Stanley analyst Devin McDermott maintains Diamondback Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) with a Overweight and raises the price target from $220 to $227.

Morgan Stanley Maintains Overweight on Diamondback Energy, Raises Price Target to $227

-- Diamondback Energy Acquires Certain Midland Basin Entities from Double Eagle --
Double Eagle IV Midco, LLC ("Double Eagle") today announced that it has entered into a definitive purchase agreement to divest its equity interest in certain subsidiaries to Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) ("Diamondback") in exchange for $3 billion of cash and approximately 6.9 million shares of Diamondback common stock.

Diamondback Energy Acquires Midland Basin Entities From Double Eagle For $3B Cash And ~6.9M Shares

Diamondback Energy, Inc.&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) intends to acquire subsidiaries of Double Eagle IV Midco for approximately 6.9 million shares of its&nbsp;<a href="https://www.benzinga.com/pressreleases/25/02/g43775603/diamondback-energy-inc-announces-midland-basin-acquisition" target="_blank" rel="noreferrer noopener">common stock and $3 billion in cash</a>.&nbsp;
The company plans to fund the cash portion of the deal through cash on hand, credit facility borrowings, and potential term loans or senior notes offerings.
The asset spans approximately 40,000 net acres in the core of the Midland Basin, with an&nbsp;estimated run-rate production&nbsp;of 27 MBo/d, of which 69% is oil.
The acquisition extends the pro forma inventory life in the region, with&nbsp;68% of the asset&nbsp;remaining&nbsp;undeveloped, including 407 estimated gross (342 net) horizontal locations in primary development targets, averaging a lateral length of over 11,000 feet.
The company projects capital expenditures&nbsp;for 2025&nbsp;of $200 million, based on current Midland Basin well costs ranging from $555 to $605 per foot.
Diamondback projects closing the transaction on April 1, 2025, pending regulatory approval and the fulfillment of customary closing conditions.
Diamondback and Double Eagle have also agreed to fast-track development on&nbsp;Diamondback's&nbsp;non-core southern Midland Basin acreage, accelerating Net Asset Value (NAV) realization.&nbsp;
This transaction&nbsp;is expected&nbsp;to enhance Free Cash Flow per share growth&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">by 5%+ from 2026 onward</a>.
Also, Diamondback plans to sell a minimum of $1.5 billion in non-core assets to expedite debt reduction and preserve its strong financial position.&nbsp;
The company aims to lower net debt to $10 billion and sustain long-term leverage between $6 billion and $8 billion.
Diamondback CEO Travis Stice said there are 407 locations adjacent to the company&#8217;s &#8220;core position.&#8221;
&#8220;Additionally, we see value uplift to our existing inventory as acreage overlap allows for meaningful lateral length extensions and infrastructure synergies,&#8221; he added.
The company plans to release its fourth quarter 2024&nbsp;<a target="_blank" href="https://www.benzinga.com/earnings" rel="noreferrer noopener">financial results&nbsp;on February 24, 2025</a>.
Investors can gain exposure to the FANG stock via two ETFs: 
<ul>
<li>Texas Capital Funds Trust Texas Capital Texas Oil Index ETF(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>)</li>
<li>IShares U.S. Oil &amp; Gas Exploration &amp; Production ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IEO#BATS">IEO</a>).</li>
</ul>
Price Action: FANG shares are down 0.54% at $156.14&nbsp;at the last check Tuesday.
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Image: Shutterstock

As part of this agreement, Diamondback and Double Eagle have also agreed to accelerate development on a portion of Diamondback's non-core southern Midland Basin acreage. This acceleration is expected to bring forward Net Asset Value ("NAV") to Diamondback by developing Diamondback's lower quality acreage at a faster pace than current expectations. As a result, Diamondback expects significant Free Cash Flow growth in 2026 and beyond with minimal capital deployment through this accelerated development plan.
Diamondback is also committing today to sell at least $1.5 billion of non-core assets to accelerate pro forma debt reduction in order to maintain its strong balance sheet. Diamondback expects to reduce net debt to $10 billion and, long term, maintain leverage of $6 billion to $8 billion. Transaction Highlights
<ul>
<li>Valued at approximately 5.2x 2025 EBITDA</li>
<li>Enhances expected pro forma 2026 Free Cash Flow per share by 5%+</li>
<li>Immediately accretive to all relevant financial metrics including Cash Flow per share, Free Cash Flow per share and NAV per share</li>
</ul>

Emerging Market ETFs

Diamondback Energy Acquires Double Eagle IV For $3B Cash And 6.9M Shares, Expanding Midland Basin Holdings

Diamondback Energy's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NYSE">FANG</a>) short percent of float has fallen 12.87% since its last report. The company recently reported that it has 4.02 million shares sold short, which is 1.49% of all regular shares that are available for trading. Based on its trading volume, it would take traders 2.26 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Diamondback Energy Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2025/1739801717_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Diamondback Energy has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Diamondback Energy's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Diamondback Energy's peer group average for short interest as a percentage of float is 7.20%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Diamondback Energy's Recent Short Interest

TOST

CNBC Halftime Report Final Trades: Toast, CME Group, The Goldman Sachs Group, Diamondback Energy

<a href="https://www.wsj.com/business/energy-oil/diamondback-in-talks-to-buy-permian-producer-double-eagle-c119a84e?mod=latest_headlines" title="https://www.wsj.com/business/energy-oil/diamondback-in-talks-to-buy-permian-producer-double-eagle-c119a84e?mod=latest_headlines">https://www.wsj.com/business/energy-oil/diamondback-in-talks-to-buy-permian-producer-double-eagle-c119a84e?mod=latest_headlines</a>

'Diamondback In Talks To Buy Double Eagle; Deal Could Be Announced In Coming Days; Double Eagle Could Be Valued At More Than $5B In Transaction, Sources Say' - WSJ

Across the recent three months, 11 analysts have shared their insights on Diamondback Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>), expressing a variety of opinions spanning from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">5</td>
<td align="right">6</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">4</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Diamondback Energy, revealing an average target of $219.09, a high estimate of $256.00, and a low estimate of $190.00. Highlighting a 0.66% decrease, the current average has fallen from the previous average price target of $220.55. 
<img src="https://www.benzinga.com/files/images/story/2025/1739476859_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
In examining recent analyst actions, we gain insights into how financial experts perceive Diamondback Energy. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Buy</td>
<td>$216.00</td>
<td>$212.00</td>
</tr>
<tr>
<td>John Freeman</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$256.00</td>
<td>$237.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Arun Jayaram</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$195.00</td>
<td>$191.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$236.00</td>
<td>$230.00</td>
</tr>
<tr>
<td>Doug Leggate</td>
<td>Wolfe Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$190.00</td>
<td>$190.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$232.00</td>
<td>$252.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$219.00</td>
<td>$218.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$207.00</td>
<td>$219.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$212.00</td>
<td>$235.00</td>
</tr>
<tr>
<td>John Freeman</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$237.00</td>
<td>$232.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Diamondback Energy. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Diamondback Energy compared to the broader market.</li>
<li>Price Targets: Delving into movements, analysts provide estimates for the future value of Diamondback Energy's stock. This analysis reveals shifts in analysts' expectations over time.</li>
</ul>
For valuable insights into Diamondback Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
<a href="https://www.benzinga.com/quote/FANG/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondback Energy analyst ratings.</a>
<h2>Unveiling the Story Behind Diamondback Energy</h2>
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.
<h3>Unraveling the Financial Story of Diamondback Energy</h3>
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Positive Revenue Trend: Examining Diamondback Energy's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.03% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Energy sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 24.91%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.4%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Diamondback Energy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.3%, the company may face hurdles in achieving optimal financial returns.
Debt Management: With a below-average debt-to-equity ratio of 0.35, Diamondback Energy adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>What Are Analyst Ratings?</h2>
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

11 Analysts Have This To Say About Diamondback Energy

UBS analyst Josh Silverstein maintains Diamondback Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) with a Buy and raises the price target from $212 to $216.

UBS Maintains Buy on Diamondback Energy, Raises Price Target to $216

CGBS

CTRA

PTLE

TRGP

Shares of oil and gas companies are trading lower after President Trump reiterated a pledge to increase oil production.

Cohen &amp; Steers is making a timely push into the <a href="https://www.benzinga.com/etfs">actively managed ETF</a> space with the launch of three new funds. Announced on Feb. 5, these ETFs bring the firm&#8217;s investment strategies into a more accessible, flexible format for investors. The expense ratios of these ETFs range from 0.5%-0.7%.
The introduction of these funds come amid a rising demand trend for actively managed ETFs, which provide a combination of professional portfolio management and ETF liquidity.
Also Read: <a href="https://www.benzinga.com/25/02/43534399/schwab-expands-active-fixed-income-lineup-with-new-core-bond-etf">Schwab Expands Active Fixed Income Lineup With New Core Bond ETF</a>
"The launch of our active ETF strategies reinforces our commitment to providing investors with vehicles that help them achieve their objectives and unlock the full potential of their portfolios," said Joseph Harvey, CEO of Cohen &amp; Steers. "We see significant tailwinds for real assets and preferred securities and believe that an allocation to these asset classes can lead to superior investment outcomes compared to traditional 60/40 stock-bond portfolios."
Here is a peek into the ETFs:
<h4 class="wp-block-heading">CSRE: Real Estate-Focused Diversification</h4>
The Cohen &amp; Steers Real Estate Active ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSRE#NYSE">CSRE</a>) targets real estate securities to offer investors total return and amplified portfolio diversification. The fund has a net expense ratio of 0.7%. Welltower Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WELL#NYSE">WELL</a>), Equinix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>) and American Tower Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMT#NYSE">AMT</a>) are among its top holdings.
<h4 class="wp-block-heading">CSPF: Income And Capital Appreciation via Preferred Securities</h4>
The Cohen &amp; Steers Preferred and Income Opportunities Active ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSPF#NYSE">CSPF</a>) best suits investors seeking high income and capital appreciation. The fund primarily invests in investment-grade preferred securities, focusing on those considered undervalued relative to their credit quality. CSPF comes with a net expense ratio of 0.5% .
<h4 class="wp-block-heading">CSNR: Growth And Stability Via Natural Resources</h4>
The Cohen &amp; Steers Natural Resources Active ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CSNR#NYSE">CSNR</a>) aims to bring in total return by investing in companies in the natural resources sector, including energy, metals, mining, and agriculture. This fund select firms poised for long-term growth in these critical industries. This ETF carries an expense ratio of 0.5% (after a fee waiver/ reimbursement contract) and its top holdings include Agco Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AGCO#NYSE">AGCO</a>), Agnico Eagle Mines Ltd (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AEM#NYSE">AEM</a>) and Diamondback Energy Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>). The fund has holdings in firms listed overseas as well, which supports diversification.
Read Next: 
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</ul>
Photo: Shutterstock

Cohen & Steers Expands Active ETF Offerings With Three New Funds

AROC

Shares of oil and gas companies are trading lower as investors evaluate the February 1st tariff deadline for Mexico, Canada and China.

Diamondback Energy, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) ("Diamondback" or the "Company") today announced that it has entered into a definitive purchase agreement with Viper Energy, Inc. ("Viper"), a subsidiary of Diamondback, to sell certain mineral and royalty interests from subsidiaries of Diamondback for $1 billion in cash and approximately&nbsp;69.6 million units of Viper's operating subsidiary ("OpCo", and such units the "OpCo Units") in a drop down transaction ("Drop Down"). The tax advantaged OpCo units, which will be issued together with an equal number of shares of Class B common stock of Viper, are exchangeable for shares of Class A common stock of Viper.
Based on the volume weighted average sales price of Viper's common stock for the 30-trading day period ending on January 24, 2025 of $49.55, the transaction is valued at a total of $4.45 billion. Viper expects to fund the cash portion of this transaction through a combination of cash on hand, borrowings under Viper's credit facility, and proceeds from one or more capital markets transactions, subject to market conditions and other factors.

Contracts

Asset Sales

VNOM

Diamondback Enters $4.45B Deal With Viper Energy For Mineral And Royalty Interests; Sale Includes $1B Cash And 69.6M Viper OpCo Units

Providing a diverse range of perspectives from bullish to bearish, 12 analysts have published ratings on Diamondback Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FANG#NASDAQ">FANG</a>) in the last three months.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">5</td>
<td align="right">7</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $216.58, along with a high estimate of $256.00 and a low estimate of $190.00. This current average has decreased by 0.77% from the previous average price target of $218.25. 
<img src="https://www.benzinga.com/files/images/story/2025/1737658837_0.png" alt="price target chart" />
<h2>Decoding Analyst Ratings: A Detailed Look</h2>
The analysis of recent analyst actions sheds light on the perception of Diamondback Energy by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>John Freeman</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$256.00</td>
<td>$237.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Arun Jayaram</td>
<td>JP Morgan</td>
<td>Raises</td>
<td>Overweight</td>
<td>$195.00</td>
<td>$191.00</td>
</tr>
<tr>
<td>Neal Dingmann</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Buy</td>
<td>$236.00</td>
<td>$230.00</td>
</tr>
<tr>
<td>Doug Leggate</td>
<td>Wolfe Research</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$190.00</td>
<td>$190.00</td>
</tr>
<tr>
<td>Mark Lear</td>
<td>Piper Sandler</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$232.00</td>
<td>$252.00</td>
</tr>
<tr>
<td>Roger Read</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Overweight</td>
<td>$219.00</td>
<td>$218.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Outperform</td>
<td>$207.00</td>
<td>$219.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Buy</td>
<td>$212.00</td>
<td>$235.00</td>
</tr>
<tr>
<td>John Freeman</td>
<td>Raymond James</td>
<td>Raises</td>
<td>Strong Buy</td>
<td>$237.00</td>
<td>$232.00</td>
</tr>
<tr>
<td>Scott Hanold</td>
<td>RBC Capital</td>
<td>Maintains</td>
<td>Outperform</td>
<td>$210.00</td>
<td>$210.00</td>
</tr>
<tr>
<td>Subash Chandra</td>
<td>Benchmark</td>
<td>Maintains</td>
<td>Buy</td>
<td>$195.00</td>
<td>$195.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Diamondback Energy. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Diamondback Energy compared to the broader market.</li>
<li>Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.</li>
</ul>
Capture valuable insights into Diamondback Energy's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
<a href="https://www.benzinga.com/quote/FANG/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondback Energy analyst ratings.</a>
<h2>Unveiling the Story Behind Diamondback Energy</h2>
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.
<h3>Breaking Down Diamondback Energy's Financial Performance</h3>
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Diamondback Energy displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 13.03%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Energy sector.
Net Margin: Diamondback Energy's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 24.91%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Diamondback Energy's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.4%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Diamondback Energy's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 1.3%, the company may face hurdles in achieving optimal financial returns.
Debt Management: Diamondback Energy's debt-to-equity ratio is below the industry average at 0.35, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: What Are They?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=be8be9arja3be22bz21&amp;utm_source=benzinga-insights">Click here to stay ahead of the market</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Diamondback Energy Stock: A Deep Dive Into Analyst Perspectives (12 Ratings)

Press Releases

Verde Clean Fuels, Inc. Announces $50 Million Equity Investment by Cottonmouth Ventures, LLC, a Wholly-Owned Subsidiary of Diamondback Energy, Inc.

Diamondback Energy, Inc. Schedules Fourth Quarter 2024 Conference Call for February 25, 2025

Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Schedules Fourth Quarter 2024 Conference Call for February 25, 2025

Verde Clean Fuels, Inc. Announces Closing of $50 Million Equity Investment by Cottonmouth Ventures, LLC, a Wholly-Owned Subsidiary of Diamondback Energy, Inc.

Financing

Diamondback Energy, Inc. Announces Drop Down Transaction

Viper Energy, Inc., A Subsidiary of Diamondback Energy, Inc., Announces Drop Down Transaction and Operations Update

Diamondback Energy, Inc. Announces Appointment to the Board of Directors

Diamondback Energy, Inc. Announces Midland Basin Acquisition

Double Eagle IV Midco, LLC Enters Into Definitive Purchase Agreement With Diamondback Energy, Inc.

Diamondback Energy, Inc. Announces Leadership Transition Plan and Additional Updates to Executive Team and Board of Directors

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