Diamondback Energy (FANG) Update - Jan 9

[dan_s]

FANG closed at $56.76 on January 8. < ~4.5 X my operating cash flow estimate for 2020 of $12.49/share

Since they announced the acquisitions of QEP and Guidon there have been five energy sector analysts that have updated their models and price targets.
The fresh price targets range from $60 to $94. < Valuations from the Wall Street Gang have wider ranges than usual these days because of the wide range of oil & gas prices being used to model.

I have updated my forecast/valuation model, primarily to raise oil & gas prices in 2H 2021. I am breaking out 2021 by quarter and adding my 2022 forecast.
My valuation increases from $64 to $77.
Viper Energy Partners (VNOM) will also benefit from the acquisitions.