Wexford Capital Cuts Its Diamondback Energy Position

Wexford Capital, managed by Charles Davidson, reduced its exposure in Diamondback Energy Inc (NASDAQ:FANG) to around 10.74 million shares, from some 11.78 million, disclosed in its latest 13F. Following the decrease, the holding amasses 22.8% of Diamondback’s outstanding common stock.

In the first half of November, Diamondback Energy conducted a Secondary Public Offering. The company offered for purchase 2.0 million shares held by Gulfport Energy Corporation (NASDAQ:GPOR). The price for securities for the underwritten offering has been set at $53.46 per share. All the proceeds from the sale of shares will go to Gulfport, Diamondback said. At the same time, the underwritters will be able to buy at most 300,000 additional shares from Gufport.

Diamondback posted a net income of $14.6 million ($0.33 per diluted share) for the third quarter of 2013, almost flat over the quarter. “Our operations team continues to improve performance by reducing cycle times and costs. We have achieved four consecutive quarters of double digit declines in lease operating expense reduction, which are down over 50% from this same period last year,” said Travis Stice, Chief Executive Officer of Diamondback.

For next, year, Diamondback expects its EBITDA to amount to at least $291 million (taking into account the lowest oil price of $80 per barrel). The total production of the company is forecasted to be between 15 and 16 Barrels of oil equivalent per day. The guidance shows the company will double its production over the year, in 2014.

Even though, Wexford holds a significant stake in the company, some other “hedgies” have also been bullish on the company. Donald Chiboucis Columbus Circle Investors holds almost 1.1 million shares, and Ken Griffin‘s Citadel Investment Group owns 658,800 shares, according to our database.

Disclosure: none

Recommended Reading:

Kyle Bass’ Hayman Advisors Discloses Position in Post-IPO NMI Holdings

Nelson Peltz, Trian Partners Boost Stake in Ingersoll-Rand PLC

Israel Englander, Millennium Management Love PPL Corporation & Baker Hughes Among Others