Diamondback Energy (FANG +1.1%) explained in a recent meeting with Seaport Global that it is more interested in pursuing assets with a higher component of current production rather than undeveloped acreage, analyst Mike Kelly says in note.
FANG utilizing its premium valuation to "potentially merge with an in-basin peer with attractive acreage but less impressive track record could make a lot of sense," Kelly writes.
FANG’s Q4 implied production guidance of 86.4M-90.4M boe/day should prove beatable, the analyst adds.
Source: Bloomberg First Word
Subscribe for full text news in your inbox