Diamondback Energy (FANG) Update - Oct 20
Posted: Tue Oct 20, 2020 9:41 am
Note this morning from John White at Roth Capital 10/20-2020:
Our estimates for 3Q 2020 EPS/CFPS/EBITDA are $0.32/$2.55/$504.5 million. FANG exited 3Q with zero drawn on the revolving credit facility, evidence of its FCF capability. FANG reiterated 4Q 2020 production guidance of 280 to 290 MBOE per day and full year 2020 production guidance of 290 to 305 MBOE per day. FANG stated it continues to believe it can maintain 4Q 2020 oil production through full year 2021 with a capital budget 25% to 35% less than 2020’s capital budget.
We have employed a blended valuation of of FANG’s PV10% NAV per share and FANG’s Leverage Adjusted Multiple NAV per share which resulted in a blended NAV of $49.17 which we adjusted lower to $49.00 which is our price target.
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My Q3 2020 EPS/CFPS/EBITDA forecasts are $0.46/$2.79/$512 million. My valuation for FANG is $64.00.
FANG was trading at $27.82 at the time of this post.
Other analyst's price targets from TipRanks:
> KeyBank on 10/14/2020 = $62.00
> S. Williams on 10/14/2020 = $50.00
> Citigroup on 10/14/2020 = $46.00
Our estimates for 3Q 2020 EPS/CFPS/EBITDA are $0.32/$2.55/$504.5 million. FANG exited 3Q with zero drawn on the revolving credit facility, evidence of its FCF capability. FANG reiterated 4Q 2020 production guidance of 280 to 290 MBOE per day and full year 2020 production guidance of 290 to 305 MBOE per day. FANG stated it continues to believe it can maintain 4Q 2020 oil production through full year 2021 with a capital budget 25% to 35% less than 2020’s capital budget.
We have employed a blended valuation of of FANG’s PV10% NAV per share and FANG’s Leverage Adjusted Multiple NAV per share which resulted in a blended NAV of $49.17 which we adjusted lower to $49.00 which is our price target.
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My Q3 2020 EPS/CFPS/EBITDA forecasts are $0.46/$2.79/$512 million. My valuation for FANG is $64.00.
FANG was trading at $27.82 at the time of this post.
Other analyst's price targets from TipRanks:
> KeyBank on 10/14/2020 = $62.00
> S. Williams on 10/14/2020 = $50.00
> Citigroup on 10/14/2020 = $46.00