Diamondback Energy (FANG) Valuation Update - Feb 1
Posted: Sat Feb 01, 2025 9:27 pm
I have updated my Diamondback forecast/valuation model for the dropdown of minerals and ORRIs into Viper Energy that is expected to close early in Q2 2025. In exchange for the assets going into Viper, Diamondback will get $1 billion in cash and a larger equity share of Viper. Keep in mind that Viper is a subsidiary of Diamondback, so a large chunk of Viper's increasing dividends will go to Diamondback.
My valuation of FANG is reduced by $2 to $240/share.
TipRanks: "In the last 3 months, 24 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $213.21." < The 24 price targets range from $175 to $256. Only two of the analysts have adjusted their price targets to $210 and $238 since the transaction with Viper was announced, although all of the analysts knew the deal was going to happen.
FANG closed at $164.34 on January 31st.
My updated forecast model will be posted to the EPG website on Sunday.
My valuation of FANG is reduced by $2 to $240/share.
TipRanks: "In the last 3 months, 24 ranked analysts set 12-month price targets for FANG. The average price target among the analysts is $213.21." < The 24 price targets range from $175 to $256. Only two of the analysts have adjusted their price targets to $210 and $238 since the transaction with Viper was announced, although all of the analysts knew the deal was going to happen.
FANG closed at $164.34 on January 31st.
My updated forecast model will be posted to the EPG website on Sunday.