Miller Value Partners, an investment management firm, published its “Miller Opportunity Equity” fourth quarter 2021 investor letter – a copy of which can be seen here. A quarterly net decline of 4.29% has been recorded by the fund for the fourth quarter of 2021, compared to the S&P 500 Index’s 28.71% gain for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.
Miller Opportunity Equity, in its Q4 2021 investor letter, mentioned Diamondback Energy, Inc. (NASDAQ: FANG) and discussed its stance on the firm. Diamondback Energy, Inc. is a Midland, Texas-based energy company with a $23.9 billion market capitalization. FANG delivered a 22.45% return since the beginning of the year, while its 12-month returns are up by 104.90%. The stock closed at $132.06 per share on February 4, 2022.
Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. 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.”
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Our calculations show that Diamondback Energy, Inc. (NASDAQ: FANG) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. FANG was in 51 hedge fund portfolios at the end of the third quarter of 2021, compared to 38 funds in the previous quarter. Diamondback Energy, Inc. (NASDAQ: FANG) delivered a 16.06% return in the past 3 months.
In February 2021, we also shared another hedge fund’s views on FANG in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.
Disclosure: None. This article is originally published at Insider Monkey.
