Diamondback Energy Inc
FANG: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$726.00 | Kznlyr | Vybndzgq |
Diamondback Earnings: Drilling Efficiency Gains Boost Outlook
Narrow-moat Diamondback once again demonstrated why they are the best-in-class Permian Basin producer. With the second-quarter release, they announced major drilling efficiencies allowing them to shed two rigs from the 12-rig drilling program to maintain production. As a result, we are increasing our fair value estimate to $177 from $174, with the efficiency gains more than offsetting declines in commodity prices.