Diamondback surges 5% on production update

|About: Diamondback Energy (FANG)|By:, SA News Editor

Diamondback Energy (FANG +5.1%) rallies after announcing last night that its oil and gas production will double next year.

FANG predicts full-year 2014 production averaging 15K-16K boe/day, and sees Q3 output in line with expectations at 7,400 boe after anticipating ending 2013 with production in the upper range of 7,200-7,500 boe.

The free cash flow will allow the company to pursue acquisitions, Simmons analysts say in reiterating its Overweight rating; also, FANG's stock is the cheapest in terms of valuation of all companies exposed to the Permian.