|Bid||132.60 x 800|
|Ask||134.80 x 1000|
|Day's Range||129.97 - 133.57|
|52 Week Range||95.69 - 138.25|
|PE Ratio (TTM)||23.09|
|Earnings Date||Nov 5, 2018 - Nov 9, 2018|
|Forward Dividend & Yield||0.50 (0.39%)|
|1y Target Est||166.15|
On September 19, US crude oil November futures rose 1.7% and closed at $70.77 per barrel—the highest closing level for active US crude oil futures since July 13. In the last trading session, the S&P 500 Index (SPY) and the Dow Jones Industrial Average Index (DIA) rose 0.1% and 0.6%, respectively.
Diamondback Energy, Inc. (FANG) (“Diamondback”) announced today that it has priced an offering of $750.0 million aggregate principal amount of its 4.750% Senior Notes due 2024 (the “New Notes”), representing a $250.0 million upsize from the previously announced size of the offering, at an issue price of 99.75% of the aggregate principal amount of the New Notes (the “Tack-On Offering”). The New Notes were offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The New Notes will be issued as additional securities under the indenture, dated as of October 28, 2016 (the “Indenture”), under which the Company issued $500.0 million aggregate principal amount of its 4.750% Senior Notes due 2024 on October 28, 2016, all of which were subsequently exchanged for substantially identical notes in the same aggregate principal amount registered under the Securities Act (the “Existing Notes”).
Moody's Investors Service ("Moody's") assigned a Ba3 rating to Diamondback Energy, Inc.'s (Diamondback) proposed $500 million tack-on offering of 4.75% senior unsecured notes due 2024, with the rating under review for upgrade. Diamondback's other ratings and outlook are unaffected by this action and remain under review for upgrade. Diamondback is also in the midst of acquiring Energen Corporation (Ba2 RUR UP) in an all-stock transaction announced on August 15, 2018.
Diamondback Energy (FANG) teamed up with private equity firm The Carlyle Group for the development of its assets in the region, while HollyFrontier (HFC) announced a $1 billion share buyback plan.
The weakness in crude oil prices by the end of last week and a slight decline in Permian drilling activity could be the major reasons behind the narrowing of the WTI Cushing-WTI Midland spread. The announcement by Energy Transfer Partners (ETP) to proceed with its plans to construct the PGC (Permian Gulf Coast) pipeline could be another major reason behind the recent fall in the WTI spreads. The PGC pipeline and a few other major pipeline projects are expected to reduce the pipeline constraint in the region in the next two years.
Diamondback Energy, Inc. (FANG) (“Diamondback”) announced today that it proposes to offer, subject to market conditions and other factors, $500.0 million aggregate principal amount of its 4.750% Senior Notes due 2024 (the “New Notes”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in accordance with Regulation S under the Securities Act (the “Tack-On Offering”). The New Notes will be issued as additional securities under the indenture, dated as of October 28, 2016 (the “Indenture”), under which the Company issued $500.0 million aggregate principal amount of its 4.750% Senior Notes due 2024 on October 28, 2016, all of which were subsequently exchanged for substantially identical notes in the same aggregate principal amount registered under the Securities Act (the “Existing Notes”).
NEW YORK , Sept. 13, 2018 /PRNewswire/ -- Juan Monteverde, founder and managing partner at Monteverde & Associates PC, a national securities firm headquartered at the Empire State Building in New York ...
CNBC's Jim Cramer sees a "big problem" in the U.S. energy market. Wednesday's boost in global oil prices could help curb it, the "Mad Money" host says. As the worldwide price of oil hit its highest level for 2018 on Wednesday, CNBC's Jim Cramer mused on what the milestone could mean for the U.S. energy market.
Global private equity firms raised billions of dollars over the last decade to invest in energy and infrastructure projects and today they are sitting on more dollars that they have good deals to invest. Thus, investment firms are relying on established oil and gas operators to deploy large amounts of capital so they can collect those coveted management and performance fees, even when firms are competing with one another for those deals, squeezing out profits for investors. Under the deal, Carlyle and Diamondback will jointly invest $620 million to develop FANG assets in the San Pedro area of Pecos County, Texas within the Southern Delaware basin.
Diamondback (FANG) and Carlyle will jointly invest $620 million for the development of oil and gas assets in the San Pedro area of Pecos County, where the former owns majority of its holdings.
In the week ended August 31, 2018, US crude oil inventories were almost on par with their five-year average, the same as the previous week.
Carlyle will fund up to 85% of the development costs over five years, according to the statement. The firm’s working interests in the project will largely revert to Diamondback after performance hurdles are met. With 25 investment professionals in New York and Houston, the Energy Mezzanine Opportunities team provides growth and refinancing capital to projects and companies in the energy sector, Carlyle said.
Private equity firm Carlyle Group LP said on Tuesday it would fund the development of Diamondback Energy Inc's oil and gas assets in the prolific Permian basin of Texas. A Carlyle fund and Diamondback will jointly invest $620 million to develop the assets in the San Pedro area of Pecos county, Texas within the Southern Delaware basin, the companies said. The Carlyle fund will invest up to 85 percent for the development program over five years and the PE firm's interests will largely revert to Diamondback after certain performance milestones are met.
The WTI Cushing-WTI Midland spread, a key indicator for Permian producers, saw a steep contraction last week. The spread fell to $14.6 per barrel by the end of the week compared to highs of $17.8 per barrel in the week ending August 31. However, the current spread is still high compared to the previous month’s low of $12 per barrel and the one-year average of $5.0 per barrel.
So far in this series, we’ve looked at the top four upstream companies based on analysts’ ratings. Those companies are Viper Energy Partners (VNOM), Earthstone Energy (ESTE), Ring Energy (REI), and WPX Energy (WPX). In this part of the series, we’ll look at Diamondback Energy (FANG), which is in fifth place in terms of analyst ratings.
WPX Energy (WPX), a Permian- and Williston-focused E&P (exploration and production) company, is in fourth place in terms of analysts’ ratings among upstream companies. WPX Energy saw several target price upgrades following its second-quarter earnings announcement. The increase in 2018 production guidance could be one factor behind the upward revision in its target price.
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health toRead More...
Viper Energy Partners (VNOM), an upstream company that isn’t directly involved in E&P (exploration and production) activities and is dependent on royalty income from its mineral interests, is Wall Street analysts’ favorite upstream company. VNOM saw two rating upgrades last month. Citigroup and Stifel Nicolaus raised their recommendations to a “buy.” Now, 100% of analysts covering the stock rate it a “buy.” VNOM’s average target price of $41.60 implies a 7% upside potential from its current price.
Upstream companies have been very volatile in recent weeks. That’s due to strong volatility in crude oil and natural gas prices. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP), which includes 56 exploration and production companies, saw a three-month low of $38.80 in August. It recovered significantly by the end of that month. However, most of the gains were eroded in the recent fall.
Diamondback (FANG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Between August 29 and September 5, our list of oil-weighted stocks fell 1.2%—just ten basis points below US crude oil October futures’ fall. On average, our list of oil-weighted stocks underperformed US crude oil prices.