EnCap Energy Capital Fund XII L.P. Takes Position in Diamondback Energy, Inc. $FANG

Key Points

• EnCap Energy Capital Fund XII bought a new stake in Diamondback Energy during the fourth quarter, purchasing 1,126,468 shares valued at about $169.3 million. The stock now makes up essentially all of the fund’s holdings.
• Diamondback Energy reported better-than-expected quarterly results, with EPS of $4.23 versus the $3.74 consensus estimate and revenue of $4.24 billion versus expectations of $3.83 billion. Revenue also rose 4.7% year over year.
• The company raised its quarterly dividend to $1.10 per share from $1.05, implying a $4.40 annualized payout and a 2.4% yield. At the same time, several insiders sold shares, including the CAO and a director.

EnCap Energy Capital Fund XII L.P. purchased a new stake in shares of Diamondback Energy, Inc. (NASDAQ:FANG - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor purchased 1,126,468 shares of the oil and natural gas company's stock, valued at approximately $169,342,000. Diamondback Energy comprises approximately 100.0% of EnCap Energy Capital Fund XII L.P.'s holdings, making the stock its biggest position. EnCap Energy Capital Fund XII L.P. owned 0.39% of Diamondback Energy as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the company. Boston Partners grew its holdings in shares of Diamondback Energy by 2.9% during the third quarter. Boston Partners now owns 5,733,538 shares of the oil and natural gas company's stock valued at $821,649,000 after buying an additional 163,548 shares during the last quarter. Geode Capital Management LLC lifted its position in Diamondback Energy by 0.3% during the fourth quarter. Geode Capital Management LLC now owns 5,621,120 shares of the oil and natural gas company's stock valued at $844,073,000 after purchasing an additional 14,625 shares during the period. Bank of New York Mellon Corp lifted its position in Diamondback Energy by 11.5% during the fourth quarter. Bank of New York Mellon Corp now owns 5,159,365 shares of the oil and natural gas company's stock valued at $775,607,000 after purchasing an additional 532,756 shares during the period. Capital Research Global Investors lifted its position in Diamondback Energy by 14.1% during the fourth quarter. Capital Research Global Investors now owns 4,332,885 shares of the oil and natural gas company's stock valued at $651,363,000 after purchasing an additional 534,073 shares during the period. Finally, Morgan Stanley lifted its position in Diamondback Energy by 3.2% during the fourth quarter. Morgan Stanley now owns 3,828,941 shares of the oil and natural gas company's stock valued at $575,605,000 after purchasing an additional 117,798 shares during the period. Hedge funds and other institutional investors own 90.01% of the company's stock.

Diamondback Energy Stock Down 1.4%

FANG opened at $185.48 on Thursday. The company has a current ratio of 0.56, a quick ratio of 0.55 and a debt-to-equity ratio of 0.31. Diamondback Energy, Inc. has a 1-year low of $134.30 and a 1-year high of $214.51. The company has a market capitalization of $52.18 billion, a PE ratio of 215.68 and a beta of 0.42. The firm's 50 day simple moving average is $195.33 and its two-hundred day simple moving average is $176.39.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The oil and natural gas company reported $4.23 earnings per share for the quarter, topping the consensus estimate of $3.74 by $0.49. Diamondback Energy had a net margin of 1.87% and a return on equity of 7.76%. The business had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $3.83 billion. During the same period last year, the firm earned $4.54 earnings per share. The company's quarterly revenue was up 4.7% on a year-over-year basis. As a group, equities analysts forecast that Diamondback Energy, Inc. will post 19.92 EPS for the current year.

Diamondback Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, May 21st. Shareholders of record on Thursday, May 14th were given a $1.10 dividend. The ex-dividend date was Thursday, May 14th. This is a boost from Diamondback Energy's previous quarterly dividend of $1.05. This represents a $4.40 annualized dividend and a yield of 2.4%. Diamondback Energy's payout ratio is 511.63%.

Insider Buying and Selling at Diamondback Energy

In other Diamondback Energy news, CAO Teresa L. Dick sold 7,000 shares of the stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $200.90, for a total value of $1,406,300.00. Following the transaction, the chief accounting officer directly owned 85,755 shares in the company, valued at approximately $17,228,179.50. This trade represents a 7.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Charles Alvin Meloy sold 83,334 shares of the stock in a transaction that occurred on Tuesday, June 16th. The stock was sold at an average price of $187.12, for a total transaction of $15,593,458.08. Following the completion of the transaction, the director owned 851,530 shares in the company, valued at $159,338,293.60. The trade was a 8.91% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 121,548 shares of company stock valued at $23,146,460 over the last three months. Insiders own 0.64% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on FANG. KeyCorp increased their price objective on shares of Diamondback Energy from $196.00 to $225.00 and gave the company an "overweight" rating in a research report on Thursday, April 2nd. Wells Fargo & Company increased their price objective on shares of Diamondback Energy from $202.00 to $262.00 and gave the company an "overweight" rating in a research report on Monday, April 20th. Raymond James Financial restated a "strong-buy" rating and set a $249.00 price objective on shares of Diamondback Energy in a research report on Wednesday, June 10th. Morgan Stanley increased their price objective on shares of Diamondback Energy from $224.00 to $229.00 and gave the company an "overweight" rating in a research report on Friday, May 22nd. Finally, Wall Street Zen upgraded shares of Diamondback Energy from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Four analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $223.63.

Diamondback Energy Company Profile

Diamondback Energy, Inc NASDAQ: FANG is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.

Diamondback's activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.

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