5 Value Stocks in Blackstone Group’s Portfolio

1. Diamondback Energy, Inc. (NASDAQ:FANG)

Number of Hedge Fund Holders: 45

P/E Ratio: 10.83

Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company that operates in the Permian Basin in West Texas. Blackstone Group owns 10.5 million Diamondback Energy, Inc. (NASDAQ:FANG) shares as of Q4 2021, worth $1.14 billion, representing 2.86% of the firm’s 13F portfolio. 

On February 22, Diamondback Energy, Inc. (NASDAQ:FANG) announced a per share quarterly dividend of $0.60, reflecting a 20% increase from its earlier dividend of $0.50. The dividend is payable on March 11, to shareholders of record on March 4. 

Diamondback Energy, Inc. (NASDAQ:FANG) published its Q4 results on February 22, posting an EPS of $3.63, exceeding estimates by $0.27. The $2.02 billion revenue outperformed market consensus by $339.49 million. 

RBC Capital analyst Scott Hanold on February 24 raised the price target on Diamondback Energy, Inc. (NASDAQ:FANG) to $160 from $150 and kept an Outperform rating on the shares. The analyst is positive about Diamondback Energy, Inc. (NASDAQ:FANG)’s commitment to maintenance, production, and “exceptional” cost management. 

Harris Associates is the leading Diamondback Energy, Inc. (NASDAQ:FANG) stakeholder as of Q4 2021, with more than 3 million shares worth roughly $328 million. Overall, 45 hedge funds held long positions in Diamondback Energy, Inc. (NASDAQ:FANG) in the fourth quarter of 2021, down from 51 funds in the quarter prior. 

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.”

You can also take a look at 10 Cheap Pharmaceutical Stocks For 2022 and 10 Best Insurance Stocks To Buy Now.

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