The Original FANG Stock...Diamondback Energy, Inc
FANG is the acronym for four high-performing technology stocks in the market – Facebook, Amazon, Netflix and Google (now Alphabet, Inc.). The term was coined by CNBC's Mad Money host Jim Cramer in 2013. But the original FANG is Diamondback Energy, Inc.,
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas. Diamondback Energy Inc. under the ticker symbol, FANG trades on the NASDAQ and opened for their first trading day at $17.50 on 10/12/12.
Through smart and strategic acquisition over the years, Diamondback's production is 20 times greater than when the company came public, which now includes two acquisitions of Energen Corporation and Ajax Resources in 2018. Almost all of Diamondback's acreage is profitable and Diamondback has the highest cash margins than any other Permian-based operator.
NOTE: The Permian Basin is the largest petroleum-producing basin in the United States and has produced a cumulative 28.9 billion barrels of oil to date. Currently, nearly 2 million barrels of oil a day are being pumped from this particular basin.
Diamondback reported earnings Tuesday, they were decent, but didn’t meet Wall Street expectations.
Shares of Diamondback Energy Inc. FANG, -0.14% fell 12% in the extended session Tuesday after the oil and gas company reported third-quarter results below Wall Street expectations and said its oil production declined in the quarter due to asset sales earlier in the year. Diamondback said it earned $368 million, or $2.26 a share, in the quarter, compared with $157 million, or $1.59 a share, in the year-ago quarter. Revenue rose to $975 million from $537 million a year ago. Analysts polled by FactSet had expected adjusted earnings of $1.70 a share on sales of $1.05 billion. "After growing significantly during the first two quarters of the year, Diamondback's oil production declined in the third quarter due to the sale of our Central Basin Platform assets effective July 1, 2019, which removed ~5,800 barrels per day of low-margin oil production from our asset base," Diamondback Chief Executive Travis Stice said in a statement.
So where is the stock price headed next, the monthly chart suggests further downside at least to the monthly demand at $68.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
