Diamondback Energy: Not A Free Pass After All

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About: Diamondback Energy, Inc. (FANG), Includes: RTLR, VNOM
by: Fun Trading
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Fun Trading
Special situations, contrarian, long/short equity, value
Summary

Diamondback Energy's recent quarterly earnings were not stellar and confirmed that the Permian Basin is showing signs of fatigue.

Two main issues for the company are the weak commodity prices environment and well spacing in the Permian.

I recommend a prudent approach with a dual investment with one-third long term and two-third trading short term depending on oil prices.

Courtesy: Diamondback CNBC

Investment Thesis

The Midland, TX-based Diamondback Energy (FANG) is a large-cap Permian pure-play E&P. It is for that reason that it is interesting to analyze how the company is faring