Diamondback Energy (FANG) Update - Sept 21
Posted: Tue Sep 21, 2021 1:05 pm
At the time of this post FANG is trading for $80.50. I have updated my forecast model and I have raised my current valuation to $142.00.
FANG is more heavily waited to crude oil, but the increase in natural gas and NGL prices will increase their cash flow by at least $100 million over the next few quarters. Even for a company of this size that is a nice "Christmas Bonus". They are on a pace to generate over $2.3 Billion of free cash flow from operations this year. Unless there is a significant increase in their drilling program, the Company should generate over $3.5 Billion of free cash flow in 2022.
TipRanks: "In the last 3 months, 13 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $115.62." < Only 3 of 14 reports are dated in September and their price targets are $130, $125 and $104.
FANG is more heavily waited to crude oil, but the increase in natural gas and NGL prices will increase their cash flow by at least $100 million over the next few quarters. Even for a company of this size that is a nice "Christmas Bonus". They are on a pace to generate over $2.3 Billion of free cash flow from operations this year. Unless there is a significant increase in their drilling program, the Company should generate over $3.5 Billion of free cash flow in 2022.
TipRanks: "In the last 3 months, 13 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $115.62." < Only 3 of 14 reports are dated in September and their price targets are $130, $125 and $104.