Project Scale: Conduit Power has entered into agreements with Diamondback Energy and Granite Ridge Resources to develop 200 megawatts of natural gas power generation assets in Texas's ERCOT, which is expected to significantly enhance grid reliability amid rising electricity demand.
Business Model: Under the agreements, Diamondback and Granite Ridge will provide fixed capacity payments to Conduit in exchange for a preferred share of power proceeds, creating a stable cash flow for Conduit and enhancing its competitive position in the market.
Rapid Deployment: Conduit plans to quickly deploy distributed power generation capacity in ERCOT's Load Zone West, with the first facilities targeted for commercial operation in 2026, effectively addressing the power supply-demand imbalance in the region.
Strategic Collaboration: This partnership not only enhances Conduit's generation capacity but also provides Diamondback and Granite Ridge with opportunities to participate in power sales, further optimizing their oil and gas economic benefits and showcasing the synergistic effects among the three companies in the energy market.
FANG
$154.13+Infinity%1D
Analyst Views on FANG
Wall Street analysts forecast FANG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FANG is 178.10 USD with a low forecast of 150.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
Wall Street analysts forecast FANG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FANG is 178.10 USD with a low forecast of 150.00 USD and a high forecast of 219.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Buy
1 Hold
0 Sell
Strong Buy
Current: 149.060
Low
150.00
Averages
178.10
High
219.00
Current: 149.060
Low
150.00
Averages
178.10
High
219.00
UBS
Buy
maintain
$174 -> $194
2025-12-12
New
Reason
UBS
Price Target
$174 -> $194
2025-12-12
New
maintain
Buy
Reason
UBS raised the firm's price target on Diamondback Energy to $194 from $174 and keeps a Buy rating on the shares. After three years of limited gains, the Energy sector appears positioned for a stronger 2026, supported by improving oil and natural gas outlooks, M&A-driven value creation, cost and capex efficiencies, emerging OFS opportunities, and attractive valuations, the analyst tells investors in a research note. Natural gas E&Ps are favored, though positive momentum is expected broadly across Oil E&Ps and OFS, UBS adds.
Mizuho
Outperform
upgrade
$176 -> $194
2025-12-12
New
Reason
Mizuho
Price Target
$176 -> $194
2025-12-12
New
upgrade
Outperform
Reason
Mizuho raised the firm's price target on Diamondback Energy to $194 from $176 and keeps an Outperform rating on the shares. The firm adjusted ratings and targets in the exploration and production group as part of its 2026 outlook. While sentiment for U.S. oil and gas names is negative on oil market oversupply and high gas storage, there is "underappreciated value" in the group, particularly in exploration and production on longer-term fundamentals that could start becoming realized in 2026, the analyst tells investors in a research note. Mizuho suggests a reallocation of risk toward oil E&Ps with a selective bias in gas stocks. It turned more neutral on refining.
JPMorgan
Overweight
maintain
$166 -> $159
2025-12-08
Reason
JPMorgan
Price Target
$166 -> $159
2025-12-08
maintain
Overweight
Reason
JPMorgan lowered the firm's price target on Diamondback Energy to $159 from $166 and keeps an Overweight rating on the shares. The firm adjusted ratings and targets in the exploration and production space as part of its 2026 outlook. JPMorgan sees supply side risks for oil and liquids, but says the "long-awaited demand inflection for natural gas has finally arrived." The magnitude of the crude oil oversupply, plus a potential end to the Russia-Ukraine conflict in 2026, is a "double whammy" for lower oil prices, the analyst tells investors in a research note.
Piper Sandler
Overweight
maintain
$222 -> $219
2025-11-18
Reason
Piper Sandler
Price Target
$222 -> $219
2025-11-18
maintain
Overweight
Reason
Piper Sandler lowered the firm's price target on Diamondback Energy to $219 from $222 and keeps an Overweight rating on the shares. The firm updated exploration and production models post the Q3 reports. The sector posted strong results with operations, efficiencies and costs trending in the right direction, but the oil macro environment "still doesn't feel great," the analyst tells investors in a research note. Piper thinks the rally in gas equities "has run a bit too far."
About FANG
Diamondback Energy, Inc. is an independent oil and natural gas company, focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. The Company's activities are primarily directed at the horizontal development of the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin within the Permian Basin. Its subsidiary, Viper Energy, Inc., is focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin and derives royalty income and lease bonus income from such interests. The Company has approximately 859,203 net acres, which primarily consists of 742,522 net acres in the Midland Basin and 116,681 net acres in the Delaware Basin. Its subsidiaries include Diamondback E&P LLC, Rattler Midstream GP LLC, Rattler Midstream LP and QEP Resources, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
