5 Oil Stocks With Biggest Upside

4. Diamondback Energy, Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 55    

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company that focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. On November 7, Diamondback Energy declared a quarterly dividend of $0.75 per share in line with the previous. The company also declared a $1.51 variable cash dividend for the third quarter. The forward yield was 1.86%. 

On December 8, KeyBanc analyst Tim Rezvan maintained an Overweight rating on Diamondback Energy, Inc. (NASDAQ:FANG) stock and lowered the price target to $171 from $182, highlighting that in the fourth quarter, oil prices have been worse than expected as a result of worries about lockdowns in China.

At the end of the third quarter of 2022, 55 hedge funds in the database of Insider Monkey held stakes worth $910.9 million in Diamondback Energy, Inc. (NASDAQ:FANG), compared to 54 in the previous quarter worth $811.4 million.

In its Q1 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Diamondback Energy, Inc. (NASDAQ:FANG) was one of them. Here is what the fund said:

“Diamondback Energy (FANG) returned 14.4% in the quarter as the 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 lines. The company reported revenue of $1.9B beating the 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.”