|Bid||19.20 x 1100|
|Ask||19.55 x 900|
|Day's Range||19.06 - 19.26|
|52 Week Range||14.62 - 19.32|
|Beta (3Y Monthly)||0.97|
|PE Ratio (TTM)||28.86|
|Earnings Date||Apr 16, 2019 - Apr 22, 2019|
|Forward Dividend & Yield||0.80 (4.18%)|
|1y Target Est||21.28|
Today's question is what does Diamondback Energy (NASDAQ:FANG) have to do with the FAANG stocks? The answer is, like the biggest tech stocks, Diamondback Energy stock has recovered but remains well below its high.Source: Shutterstock FANG stock traded Tuesday at about $105 per share, after selling for as much as $136 per share back in September. It's an oil and gas producer, located deep in the Permian Basin, in Midland, Texas.On Tuesday, Diamondback announced GAAP earnings of $306 million, $2.50 per share fully diluted, and revenues of $622 million. Unfortunately, its non-GAAP earnings missed estimates, and the company admitted it outspent its cash flow, leading to cutbacks in 2019 estimates.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn response, FANG stock fell by 3% in overnight trading and is off 3.86% at around $102.34 per share. The reason for the pullback can be found on this chart of crude prices. What's the Big Deal?Diamondback is a Texas fracker; It managed to pick up rival Energen for $9.2 billion in stock in August, and Ajax Resources for another $1.2 billion, when its own stock was trading at about $120 per share. * 7 Healthy Dividend Stocks to Buy for Extra Stability Diamondback made those deals when crude oil was selling at about $65 per barrel, valuing Energen's production at $63,000 per acre. After the ink was dried, however, prices plunged as low as $43 per barrel in December. They have since retraced about 40% of that loss, but prices, and thus, Diamondback's value remain subject to events beyond its control.Infrastructure is one of those things that are beyond its control. Permian producers have lately overwhelmed the region's pipeline networks, leading to mass flaring (burning at the wellhead) of natural gas. Pipeline giant Kinder Morgan (NYSE:KMI) is running out new pipelines as fast as it can, but those lines won't all be ready until next year. Happy Days Ahead?While producers have learned how to reduce their production costs considerably from the peak of the last oil boom in 2014, dropping their breakeven price, in some cases, to below $30 per barrel, prices have remained highly volatile.This last fall's plunge was the worst since the 2016 bust, which took prices from over $100 per barrel to near-2016 levels. This latest drop was arrested quickly, and prices have since recovered, but it's still clear producers need scale and must be smart traders to profit.Diamondback's acquisitions have given it more scale and it seems to be a smart trader. The company's latest financial report indicates it has hedged most of its production for 2019 at over $60 per barrel and has some short interest in the 30s. Even its natural gas production has contracts for 10% over the current price of $2.69 per million BTUs.This push-pull on pricing has made Diamondback stock as volatile as the commodity it produces, despite its hedging. Shares traded at near $140 per share in October, and below $86 per share in December, before recovering to their current level. The price action in FANG stock mirrors that of the commodity. Bottom Line on FANG StockDespite Diamondback's best efforts, its stock remains closely tied to the price of West Texas Intermediate crude oil. That means its earnings are constrained by pipeline capacity, and the level of earnings is to some extent beyond the company's control, regardless of how well its operations perform.Diamondback analysts seem to believe that oil prices will stay high this year, with 32 of 36 recommending investors buy FANG stock. If you want to hedge your own portfolio against rising oil prices, join them.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now * 7 Restaurant Stocks to Watch in 2019 Compare Brokers The post Should You Buy Diamondback Energy Stock Now? appeared first on InvestorPlace.
What to Expect from Cheniere Energy’s Q4 Earnings(Continued from Prior Part)ValuationCheniere Energy (LNG) stock rallied ~13% in the last 12 months. The stock is trading at a forward EV-to-EBITDA multiple of 13.5x based on its projected earnings
Analyzing Kinder Morgan’s Performance and Prospects(Continued from Prior Part)Top investorsRichard Kinder owns ~246.5 million Kinder Morgan (KMI) shares, which represent ~10.9% of the company’s outstanding shares. According to a filing dated
Analyzing Kinder Morgan’s Performance and Prospects(Continued from Prior Part)Kinder Morgan’s leverageKinder Morgan’s adjusted net debt-to-adjusted EBITDA ratio was 4.5x at the end of 2018. The company expects to maintain the ratio at 4.5x at
Analyzing Kinder Morgan’s Performance and Prospects(Continued from Prior Part)Capital spendingKinder Morgan (KMI) spent $2.3 billion on growth projects in 2018. The company expects to spend $3.1 billion on capital projects in 2019—35% growth
A number of Houston-based energy companies have indicated a general upward trend in the number of people each of them employ, according to their recently filed annual reports. Anadarko Petroleum Corp. (NYSE: APC), Baker Hughes, a GE Company (NYSE: BHGE) and Halliburton Co. (NYSE: HAL) found headcount increases relative to their positions a year ago, according to reports. Anadarko’s headcount is up 300 people to 4,700, a 7 percent increase, according to its annual report.
Analyzing Kinder Morgan’s Performance and Prospects(Continued from Prior Part)Kinder Morgan’s earningsKinder Morgan’s (KMI) normalized EBITDA grew 8% in 2018. The growth follows a fall of 6% in Kinder Morgan’s EBITDA in 2017. The company’s
Analyzing Institutional Activity in Midstream Stocks in Q4(Continued from Prior Part)Kinder Morgan The Vanguard Group was the top institutional investor in midstream C corporation Kinder Morgan (KMI) during the fourth quarter. The Vanguard Group
Analyzing Kinder Morgan’s Performance and Prospects(Continued from Prior Part)Kinder Morgan’s valuationKinder Morgan (KMI) is trading at a lower forward EV-to-EBITDA multiple compared to its peers. Kinder Morgan’s forward EV-to-EBITDA multiple
Analyzing Kinder Morgan’s Performance and ProspectsKinder Morgan’s price performance Kinder Morgan (KMI) and Williams Companies (WMB) have each risen ~24% in 2019. In comparison, ONEOK (OKE) has risen ~27%. Kinder Morgan has outperformed Energy
Kinder Morgan Inc will expand barge-loading capacity at its ethanol terminal in Chicago to help relieve a supply glut there that is driving down global prices for the biofuel, three people briefed on the company's plans told Reuters. Tens of thousands of barrels of ethanol change hands at the Kinder Morgan Argo terminal daily, and prices there are used as the benchmark for deals across the country, and are also baked into international contracts.
Kinder Morgan Inc will expand loading capacity at its ethanol terminal in Chicago to address producer concerns that trade at the terminal - a benchmark for global ethanol prices - is vulnerable to manipulation, three people briefed on the company's plans told Reuters. Tens of thousands of barrels change hand at the hub every day, but many more barrels across the country depend on the price. Ethanol trade in the cash market at the Kinder Morgan Argo hub is used in contracts for the biofuel across the country, and is also baked into international contracts.
MLPs and Midstream Stocks Rose Last WeekMidstream stocks roseAmong the top midstream stocks, Energy Transfer (ET), Kinder Morgan (KMI), and ONEOK (OKE) posted impressive gains last week. Energy Transfer rose 4.8%, Kinder Morgan rose 4.3%, and ONEOK
Conventional wisdom says that insiders and 10 percent owners really only buy shares of a company for one reason -- they believe the stock price will rise and they want to profit from it. The Kinder Morgan Inc (NYSE: KMI) executive chair of the board, Richard Kinder, has purchased 200,000 more shares of this Houston-based energy infrastructure giant. Barron's had a few thoughts on what the "very extreme" insider buying at Kinder Morgan may mean.
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize! As Kinder Morgan, Inc. (NYSE:KMI) announced its earnings release onRead More...
Richard Kinder followed up stock buys earlier this year by buying an additional $12.9 million of shares of the energy-infrastructure firm on the open market.
Kinder Morgan (KMI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Will Energy Transfer’s Earnings Growth Continue in Q4?(Continued from Prior Part)Analysts’ recommendations According to analysts’ estimates, Energy Transfer (ET) stock has a median target price of $21.24—compared to its current market price
Saudi Arabia and U.S. oil majors, most based in Texas, have had a symbiotic economic relationship ever since oil was found in Dhahran in 1938.The oil superpowers and some oil stocks are riding high again, as Saudi Arabia launches a "shock and awe" campaign to raise oil prices.Goldman Sachs now expects prices for Brent North Sea oil, the world standard, to rise to $67.50 per barrel this spring, with OPEC production having already been cut by 800,000 barrels per day over the last few months.InvestorPlace - Stock Market News, Stock Advice & Trading Tips The Texas Shale BoomOne result is that a shale oil boom that re-ignited in Texas last year is going to accelerate into 2019.The question is who will profit.The Texas Independent Producers and Royalty Owners Association (TIPRO) reports that the state's production in 2018 came to 1.54 billion barrels, up from 1.03 billion in 2017 and 20% ahead of the previous record set in 1973. This helped make the U.S. the world's largest oil producer, ahead of Russia and Saudi Arabia. * 10 'Buy-and-Hold' Stocks to Own Forever The boom in production is extending into 2019, with the Energy Information Agency reporting 11.9 million U.S. barrels per day came up the week of Feb. 8, compared with 10.25 million barrels during the same week a year ago. Wrong Oil?Oil stocks like Chevron (NYSE:CVX), which had been on a never-ending campaign of belt-tightening since the last bust in 2014, are now poised to reap the rewards.The reason, as I noted in writing about Exxon Mobil (NYSE:XOM) earnings on Feb. 1, is an infrastructure disconnect. There's not enough pipeline capacity for all this new shale production, and U.S. refineries have long been tuned to heavier grades of imported crude anyway.So while Permian independents like Concho Resources (NYSE:CXO), which produced 310,000 barrels of oil equivalent per day during the fourth quarter, expect to see prices rising from the $53.77 level they were at Feb. 14, they're not rising quickly as Kinder Morgan (NYSE:KMI) races to add pipeline capacity. Note that while it's now legal for the U.S. to export crude oil, the spread between WTI and Brent prices is over $10 per barrel.The biggest producers of "sour" or "heavy" crude, Venezuela and Iran, are subject to U.S. sanctions, while gasoline "crack spreads" -- the margin between the cost of crude and what refined products bring -- continue to fall. Refiners are now short the "heavy" crude they're accustomed to, while U.S. fracking companies deliver a bumper crop of "light" crude to the market.Oil that is easiest to refine and closest to the market, as on the U.S. West Coast, is now priced near $62 per barrel, while oil that can't reach the market, like Canadian Crude, is still selling at under $40 per barrel.The winners in this market would thus seem to be oil stocks that can trade oil, ship oil and arbitrage the price. But that's not the way the stock market sees it. The Bottom Line on Oil StocksExxon Mobil stock hit its high for the decade in early 2014, and is currently 17% below that figure, even with a rally that began in December. During this decade, Exxon has become a dividend stock, increasing the dividend in five years from 63 cents per share to 82 cents, yielding 4.3% at the company's price of about $76 per share on Feb. 14.Meanwhile, Concho Resources, which pays no dividend, has stock worth 23% more than five years ago. Since the start of 2019 Concho is up 16% while Exxon is up only 11%.This should be Exxon's market, but it's producers like Concho that are currently getting the love from investors due to higher production.I may be wrong, but it looks like investors are making a mistake.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing, he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post This Are the Kind of Oil Stocks You Should Watch Right Now appeared first on InvestorPlace.