Diamondback Energy Integrating Major Acquisition

Summary

• Diamondback Energy’s $26 billion acquisition of private company Endeavor has nearly doubled Diamondback’s market capitalization to $46.4 billion.
• This premiere Permian oil producer currently pays a 2.5% base dividend. It also repurchases stock and, in the past, has paid an additional variable dividend at times.
• Governance changes include a board expansion post-Endeavor merger, with insiders owning 36.1% of Diamondback’s equity and lockups on Endeavor owners' stock transfers through March 2026.
• The company’s stock price has a 33% upside to the one-year target price.

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Diamondback Energy (NASDAQ:FANG) is one of the best, and most acquisitive, upstream companies operating in the US Permian basin. It has grown both by acquisition and organically by drilling. With several recent announcements, including 4Q24 and full-year 2024 results, as well as post-acquisition updated reserve

Analyst’s Disclosure:I/we have a beneficial long position in the shares of FANG, VNOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.