- Diamondback Energy (FANG +1%) opens higher despite Q4 earnings, revenues and distributable cash flow that missed expectations.
- The earnings and DCF miss was due to higher lease operating expenses, attributable to the September acquisition of ~130 vertical wells with a higher cost structure; from an operational perspective, results from the Lower Spraberry remain prolific.
- Wunderlich remains confident in FANG's assets and operations, reiterating its Buy rating and lifting its stock price target to $90 from $80, citing multiple strong well results and impressive economics at today's oil prices (Briefing.com).