12 Best Gas Stocks To Buy According to Hedge Funds

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9. Diamondback Energy Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 49

Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company that specializes in the acquisition, development, exploration, and exploitation of oil and gas reserves primarily in the Permian Basin. FANG is one of the best energy stocks to buy.

In the third quarter of 2024, Diamondback Energy Inc. (NASDAQ:FANG) drilled 71 wells in the Midland Basin and 5 in the Delaware Basin. The company successfully brought 87 wells online in Midland and 8 in Delaware, showcasing its operational efficiency and commitment to maximizing resource extraction.

During this quarter, the company reported capital expenditures totaling $688 million, with $633 million dedicated to drilling and completions. Additionally, $52 million was invested in infrastructure and environmental initiatives. Diamondback Energy Inc. (NASDAQ:FANG) also invested $3 million in midstream. These investments reflect a robust strategy aimed at enhancing production capabilities and sustaining growth momentum.

A significant achievement for Diamondback Energy Inc. (NASDAQ:FANG) was its merger with Endeavor Energy Resources, completed in September 2024. This merger expands Diamondback’s asset base and strengthens its competitive position in the North American market. Furthermore, in November 2024, the company entered into an agreement to trade certain Delaware Basin assets with TRP Energy. This deal is expected to improve cash flow and enhance Diamondback Energy Inc.’s (NASDAQ:FANG) production profile. With its strategic expansions, strong operational performance, and focus on efficient capital allocation, Diamondback Energy Inc. (NASDAQ:FANG) presents a compelling investment opportunity.

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