Wells Fargo analyst Praneeth Satish started coverage of Rattler Midstream (RTLR) with an Outperform rating and $22 price target. The analyst believes Rattler has a "robust" growth outlook tied to the build-out of water gathering infrastructure to support parent Diamondback Energy's (FANG) growth in the Permian Basin. His positive outlook is driven by his belief that Rattler will beat its S-1 guidance forecast primarily due to conservatism around produced water volume growth and contributions from JV pipelines, and given Water is a relatively new asset class in midstream and potentially underappreciated by investors.

Stifel raised the firm's price target on Diamondback Energy to $229 from $224 and keeps a Buy rating on the shares. The firm is updating its commodity estimates ahead of Q1 earnings to reflect strip prices through 2026 and revising its production and capital forecasts to reflect discussions with management, the analyst tells investors. Despite elevated valuations, oil and gas macro tailwinds continue to support sector outperformance, the firm adds.

Truist raised the firm's price target on Diamondback Energy to $250 from $248 and keeps a Buy rating on the shares. The firm sees the company's Q1 production as sequentially flat, while its moderately sequentially lower capital spend will return slightly lower free cash flows given the decline in quarterly commodity prices, the analyst tells investors in a research note. Truist adds however that Diamondback Energy is the only "oily" E&P in its coverage universe with higher 2021-2023 cumulative average production that will only improve as Endeavor fills strategic whitespace with a potential near-term close.