4. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 45
Headquartered in Midland, Texas, Diamondback Energy, Inc. (NASDAQ:FANG) is engaged in hydrocarbon exploration and the distribution of petroleum, natural gas, and natural gas liquids.
Diamondback Energy, Inc. (NASDAQ:FANG)’s Q4 results came in on February 22, and the company posted earnings per share of $3.63, exceeding estimates by $0.27. Diamondback Energy, Inc. (NASDAQ:FANG)’s revenue gained approximately 163% year-on-year, reaching $2.02 billion, surpassing estimates by $339.49 million.
On February 22, Diamondback Energy, Inc. (NASDAQ:FANG) declared a $0.60 per share quarterly dividend, a 20% increase from its prior dividend of $0.50. The dividend will be paid on March 11, to shareholders of record on March 4.
TD Securities analyst Menno Hulshof on February 23 raised the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $150 from $140 and kept a Buy rating on the shares following the “solid beat” in Q4. The analyst considers current share levels an attractive entry point for a “Permian pure-play with a peer-leading cost structure, and a strong commitment to returning at least” 50% of free cash flow.
Among the hedge funds tracked by Insider Monkey, 45 funds reported owning stakes in Diamondback Energy, Inc. (NASDAQ:FANG) in Q4 2021, with combined stakes amounting to $572.40 million. Harris Associates is the largest Diamondback Energy, Inc. (NASDAQ:FANG) stakeholder, with a $328 million position in the company.
Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
