Diamondback Energy, Inc. (NASDAQ:FANG) is one of the Most Promising Energy Stocks According to Wall Street Analysts. On September 15, Mizuho reduced the price target on the company’s stock to $176 from $183, while keeping an “Outperform” rating, as reported by The Fly. Notably, the firm adjusted ratings in the integrated oil space after updating the commodity price outlook as well as valuations. Furthermore, it still expects a positive skew in gas prices over the next 12 months.
Elsewhere, Deep Blue Midland Basin LLC, Diamondback Energy, Inc. (NASDAQ:FANG), and Five Point Infrastructure LLC announced an agreement in which Deep Blue will acquire Environmental Disposal Systems, LLC from Diamondback Energy, Inc. (NASDAQ:FANG). This will help approximately double Deep Blue’s scale and advance its leadership in sustainable produced water management. Diamondback Energy, Inc. (NASDAQ:FANG) is expected to maintain a 30% equity interest in Deep Blue and would be receiving ~$675 million in upfront cash proceeds. It will also have the potential to receive up to $200 million of additional cash proceeds via performance-based earnouts until 2028 end.
Artisan Partners, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Our energy holdings Schlumberger and Diamondback Energy, Inc. (NASDAQ:FANG) were key detractors. Unlike most equity sectors that recovered a significant proportion of their early-April declines after reciprocal tariffs were paused, the rebound among energy stocks was muted. The sector has been held back by falling oil prices as concerns about the impact of tariffs and general macro uncertainty on oil demand drove the price of WTI crude oil below $60 in May, its lowest level in four years. Oil prices have generally been trending down since 2022. While we understand the short-term concerns weighing on the sector, our interest remains on the long-term economics and valuations of our individual portfolio companies. Diamondback Energy, which we purchased in Q42024, is an oil and gas producer operating in the Permian Basin of the southwestern US. When investing in oil and gas exploration and production companies, we are highly selective. Not only do producers have no control over the underlying commodity prices, but they frequently prioritize capital expenditures over cash flow. Diamondback’s core operating philosophy is that the low-cost producer in a commodity market wins. Diamondback has a strong cost profile that is primarily the result of a contiguous, high-quality acreage position in the Permian Basin. The company’s culture supplements the acreage position with drilling discipline and conservative business plans. Our thesis is simple: Diamondback is an efficient Permian operator committed to a strong balance sheet and shareholder distributions.”
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Disclosure: None. This article is originally published at Insider Monkey.
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