Updates for CTRA, DVN, FANG and PXD - Aug 29

[dan_s]

I have updated my forecast/valuation models for the four large-cap upstream companies in our High Yield Income Portfolio.
All four companies pay large "Fixed + Variable Dividends" and they are aggressively buying back stock.

Here are my updated current valuations with First Call's price targets in ( ).
Coterra Energy (CTRA) = $46.00 ($36.29) < It is the most heavily weighted to natural gas
Devon Energy (DVN) = $102.00 (78.03)
Diamondback Energy (FANG) = $204.00 ($174.14) < Recently merged RTLR back into FANG, which should increase dividends
Pioneer Natural Resources (PXD) = $316.00 ($286.32)

All four have very strong balance sheets, are generating a lot of FCF and they have lots of high-quality drilling inventory. It is their valuable "running room" that makes all of them strong takeover targets.

All four updated models can be downloaded from the EPG website.

[Orindakid]

I listened to FANG's conference call yesterday and they said they are going to temporarily stop their variable dividend to do buybacks. They are anticipating 650 Million in Buybacks in Q-3 as their stock price is too low. They are also paying off the Rattler line and debt, another 700 hundred million!

https://www.fool.com/earnings/call-tran ... gn=article

Cheers.

[grimaldi]

I have all of those except for PXD, which is too high-priced a stock for my little budget. I would not normally have FANG if my RTLR position had not morphed into it.