Imperial Capital analyst Jason Wangler says Viper Energy's (VNOM) federal income tax status change from a pass-through partnership to a taxable entity creates a "unique" investment opportunity. The change will allow Viper to benefit from a larger potential investor base while utilizing Diamondback Energy (FANG), which owns 64% of the company's outstanding shares, to shield taxes going forward, Wangler tells investors in a research note. The analyst's updated numbers assume a 22% tax rate going forward with no cash taxes expected through. He keeps an Outperform rating on Viper Energy with a $30 price target.

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.