Diamondback Energy (FANG) PT Raised to $204 at Mizuho

Mizuho analyst Nitin Kumar raised the price target on Diamondback Energy (NASDAQ: FANG) to $204.00 (from $201.00) while maintaining a Outperform rating.

The analyst comments "Stock Reaction to PR - Positive. FANG delivered a ~9%/12% beat of FCF vs. MSUSAe/Street, driven by a combination of stronger volumes (oil +0.5%, total +4% vs. expectations) and better operating costs. The 2025 budget highlighted the relentless focus on capital efficiencies from the company as it lowered Midland basin well costs by ~$45/ft compared to post-Endeavor synergy targets. Total Capital spending was ~6% below the prior outlook (including Double Eagle). We would note that oil volumes were slightly below our prior expectations (485-498 mbo/d vs. 503 mbo/d) and the company is completing ~10-20 more net wells than expected. FANG raised its base dividend by ~11% to $4/sh annually - or a ~2.6% yield. Critically, the company estimates it can maintain 2024 FCF/share (~$18.50/sh) in 2025 for ~$9/bbl WTI - underscoring its peer leading cash generation. Maintain Outperform and raise NAV-based PT to $204 (vs. $201 prior)."

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