Diamondback Energy (FANG) Reports Q4 Oil Prices Drop to $58.00/bbl
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Oil Price Decline: Diamondback Energy reported an average realized oil price of $58.00/bbl in Q4, down 9.8% from $64.60/bbl in Q3, which is expected to exert pressure on the company's financial performance amid growing concerns about oversupply.
- Natural Gas Price Shift: The average realized price for natural gas fell to $1.03/Mcf in Q4 from $1.75/Mcf in Q3, indicating a significant impact from weak market demand and price volatility, which could affect future cash flows and investment decisions.
- Market Expectation Adjustments: Analysts noted that while Diamondback's oil and natural gas liquids prices were modestly weaker than expected, natural gas realizations were largely in line with expectations, suggesting a cautiously optimistic outlook for the company's overall performance as market forecasts are adjusted based on actual results.
- Earnings Report Preview: Diamondback is set to release its financial results on February 23, with market expectations for adjusted earnings of $2.64/share for Q4 and $12.98/share for the full year, which will provide further guidance for investors regarding the company's performance.
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
20 Buy
1 Hold
0 Sell
Strong Buy
Current: 147.410
Low
150.00
Averages
178.10
High
219.00
Current: 147.410
Low
150.00
Averages
178.10
High
219.00
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.
