KeyBanc analysts lowered their price target for Diamondback Energy (NASDAQ:FANG) to $216 from $225 while keeping an Overweight rating, anticipating limited new developments in the company’s third-quarter earnings. Following Diamondback’s impressive second-quarter update on well costs and operational efficiencies, the analysts expressed interest in seeing how quickly these advancements would be integrated into the development of the company’s Endeavor acreage.
While the analysts do not expect Diamondback to incorporate Endeavor mineral interests until early 2025, they hope for further clarity on future cash returns and deleveraging strategies. The updated price target also considers adjusted forecasts for oil, natural gas, and natural gas liquids (NGL) prices, along with refined projections for the impact of the company’s basis swap portfolio, given recent fluctuations in regional natural gas prices.