10 Best American Energy Stocks To Buy According to Hedge Funds

7. Diamondback Energy Inc. (NASDAQ:FANG)

Number of Hedge Fund Investors: 49 

Market Cap as of November 21: 53.35 billion

When Diamondback Energy, Inc. (NASDAQ:FANG) went public in 2012, it was a small oil and gas company. However, through a combination of corporate acquisitions, including the 2024 acquisition of Endeavor Energy, and organic development, it quickly grew to become one of the largest Permian-focused oil companies. The company only operates in the Permian Basin. It maintains a sustainable margin advantage by continuously ranking among the lowest-cost US-based independent producers in the entire industry.

Diamondback Energy, Inc. (NASDAQ:FANG)’s revenue climbed by 13% in Q3 2024, due to increasing production volumes, which were boosted by the conclusion of the Endeavor merger, as well as increased sales of purchased oil. In Q3, sales of natural gas, oil, and natural gas liquid grew by 3% year over year. With an annualized yield of 2.0%, the announced Q3 2024 base dividend of $0.90 per share offers stockholders consistent returns.

On November 19, 2024, Raymond James maintained a Strong Buy rating on Diamondback Energy, Inc. (NASDAQ:FANG) shares and increased the price target from $232 to $237. The analyst informs investors in a research note that Diamondback executed an acreage trade to further core up their Midland Basin position while offloading some legacy PDP heavy acreage in Delaware, but there were no surprises on the top-line items because Diamondback pre-released production, capex, and pricing. Raymond James reduced its 2025 capital expenditure forecast to $4 billion from $4.25 billion and increased its 2025 production expectations by 10 mboe/d, mostly due to greater NGL and gas volumes than it had initially projected.

Ric Dillon’s Diamond Hill Capital was the largest stakeholder in the company from among the funds in Insider Monkey’s database. It owns 2,158,910 shares worth $372.20 million as of Q3.