Diamondback Energy (FANG) Valuation Update - May 3

[dan_s]

FANG closed at $197.63 on May 2

Diamondback reported strong Q1 results that confirmed a lot of my forecast model assumptions.
My valuation increases by $9 to $224/share.

Since they released Q1 results on April 30th, seven analysts have updated their price targets on May 1&2 that were submitted to TipRanks. The seven new price targets range from $214 to $255 with an average price target of $233.50/share.

The Wall Street Gang loves this company an so do I because it provides them with accurate guidance each quarter, has a super strong balance sheet, lots of high-quality "Running Room" in the Permian Basin, and it pays a nice fixed + variable dividend. The merger with Endeavor Energy (a private company) should close late this year, pushing production over 800,000 Boepd.

FANG pays "Fixed + Variable" dividends that should generate over 6% yield based on today's share price.

My updated forecast model will be posted to the EPG website this morning.

I hope to get SilverBow updated today, but I have several appointments I need to keep.