1. Diamondback Energy, Inc. (NASDAQ:FANG)
Number of Hedge Fund Holders: 45
Dividend Yield as of May 5: 2.02%
Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, operating mainly out of the Permian Basin in West Texas. Diamondback Energy, Inc. (NASDAQ:FANG)’s dividend yield on May 5 stood at 2.02%.
Diamondback Energy, Inc. (NASDAQ:FANG) reported on May 5 its Q1 2022 results, announcing earnings per share of $5.20, above market consensus by $0.53. The revenue jumped 103.38% year-over-year to $2.41 billion, exceeding analysts’ predictions by $473.12 million.
On April 25, Susquehanna analyst Biju Perincheril raised the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $167 from $152 and maintained a Positive rating on the shares. The analyst increased his oil and gas price target assumptions and said his boosted Diamondback Energy, Inc. (NASDAQ:FANG) target is based on about 5.5x his 2023 earnings, debt-adjusted cash flow at his $80.00 WTI/$4.25 HH price deck, as well as projected dividends over the next two years.
Diamondback Energy, Inc. (NASDAQ:FANG) on May 2 declared a $0.70 per share quarterly dividend, a 16.7% jump from its earlier dividend of $0.60. The dividend will be paid on May 23, to shareholders of record on May 12. The company also announced a Q1 variable cash dividend of $2.35, payable on May 23 as well.
According to Insider Monkey’s Q4 data, Diamondback Energy, Inc. (NASDAQ:FANG) was held by 45 elite hedge funds, compared to 51 funds in the last quarter. Harris Associates owned the biggest stake in the company, with over 3 million shares worth about $328 million.
Here is what Miller Opportunity Equity has to say about Diamondback Energy, Inc. (NASDAQ:FANG) in its Q4 2021 investor letter:
“Diamondback Energy (FANG) returned 14.4% in the quarter as oil price rose and fell during the quarter ending the period largely in the same place that it started. The company reported strong 3Q results beating on the top and bottom line. The company reported revenue of $1.9B beating consensus of $1.5B with EPS of $2.94 beating expectations for $2.79. The beat was driven by a combination of higher volumes, higher realizations, and efficiency gains. The company increased its total production guidance for the year to 370-372mboe/d1 (up from 363-370mboe/d) while lowering Capital Expenditure (CAPEX) guidance for the second time this year to $1.49-1.53B. The company raised the dividend for the third time this year to $2/share annually while authorizing a new $2B share repurchase program. Starting in 4Q21, the company plans to return 50% of Free Cash Flow to shareholders through the base dividend and a combination of buybacks and special dividends. Finally, the CEO Travis Stice announced plans to reduce methane emissions by 70% as part of the firm’s ESG initiative.”
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