Diamondback Energy (FANG) - Update
Posted: Sun Dec 31, 2017 11:32 am
In the last 3 months, 16 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $124.13. Price targets range from $114 to $138. The high end of the range is from a new Barclays report published on 12/21/2017.
FANG closed at $126.25 on Friday, December 29.
I have updated my forecast/valuation model. It will be posted to the EPG website late today. My valuation increases by $18 to $146.00.
Things to remember about FANG:
> Wall Street loves this company. It is the only Sweet 16 stock that beat the S&P 500 Index in 2017.
> It is a pure play on the Permian Basin.
> It is funding an aggressive drilling program with cash flow from operations. Cash flow from operations should be near $1.2 Billion in 2018.
> Production increased YOY more than 80% in 2017.
> The company has not provided production guidance for 2018, so I am assuming 33% to 35% growth for 2018. < This is probably way too low.
> If WTI stays over $60/bbl, there is a lot more upside for FANG.
> If FANG puts out 2018 production guidance above my forecast (likely), there is a lot more upside for FANG.
FANG closed at $126.25 on Friday, December 29.
I have updated my forecast/valuation model. It will be posted to the EPG website late today. My valuation increases by $18 to $146.00.
Things to remember about FANG:
> Wall Street loves this company. It is the only Sweet 16 stock that beat the S&P 500 Index in 2017.
> It is a pure play on the Permian Basin.
> It is funding an aggressive drilling program with cash flow from operations. Cash flow from operations should be near $1.2 Billion in 2018.
> Production increased YOY more than 80% in 2017.
> The company has not provided production guidance for 2018, so I am assuming 33% to 35% growth for 2018. < This is probably way too low.
> If WTI stays over $60/bbl, there is a lot more upside for FANG.
> If FANG puts out 2018 production guidance above my forecast (likely), there is a lot more upside for FANG.