Early notable gainers among liquid option names on May 12th » 09:5505/1205/12/21
NLOK, OXY, APA, HFC, FANG
Notable gainers among…
Notable gainers among liquid option names this morning include NortonLifeLock (NLOK) $24.64 +1.29, Occidental Petroleum (OXY) $25.41 +0.89, Apache (APA) $21.68 +0.65, HollyFrontier (HFC) $35.10 +0.89, and Diamondback Energy (FANG) $81.97 +2.04.
Diamondback Energy call volume above normal and directionally bullish » 14:2505/1105/11/21
Bullish option flow…
Bullish option flow detected in Diamondback Energy with 11,658 calls trading, 5x expected, and implied vol increasing almost 4 points to 56.85%. Jan-22 30 calls and Sep-21 95 calls are the most active options, with total volume in those strikes near 5,300 contracts. The Put/Call Ratio is 0.05. Earnings are expected on August 2nd.
Diamond Equity Research to hold a virtual conference » 10:1205/1105/11/21
FANG, VNRX, EQOS, EZGO, GNPX, BOXL
Emerging Growth Invitational Virtual Conference will be held on May 11. Webcast Link
|Over a week ago|
Diamondback Energy price target raised to $107 from $90 at RBC Capital » 06:3705/0505/05/21
RBC Capital analyst Scott…
RBC Capital analyst Scott Hanold raised the firm's price target on Diamondback Energy to $107 from $90 and keeps an Outperform rating on the shares after its Q1 earnings beat. The analyst believes that the company is on track to reach sub-2.0 leverage ratio before the end of this year, at which point its management could consider increasing shareholder returns with a potential variable dividend.
Diamondback Energy price target raised to $100 from $95 at Credit Suisse » 08:0705/0405/04/21
Credit Suisse analyst…
Credit Suisse analyst William Janela raised the firm's price target on Diamondback Energy to $100 from $95 and keeps an Outperform rating on the shares. The analyst notes the company announced it will sell its Bakken assets to OAS for $745M, well above his estimated $600M. The deal price implies Diamondback Energy is divesting the assets for 5.0 times annualized cash flow and more than $27,500/flowing Boed.
Oasis Petroleum to acquire Williston Basin assets from Diamondback for $745M » 17:5705/0305/03/21
Oasis Petroleum (OAS)…
Oasis Petroleum (OAS) announced it has entered into a definitive agreement under which Oasis will acquire select Williston Basin assets from Diamondback Energy (FANG) in a cash transaction valued at approximately $745M, subject to customary purchase price adjustments. The consideration is expected to be financed through cash on hand, revolver borrowings and a $500M fully committed underwritten bridge loan. The transaction was approved unanimously by the board of the directors of each company. The effective date of the acquisition will be April 1 and the closing is expected to occur in July, subject to customary closing conditions. Assets purchased include approximately 27 MBoe/d of production in Q1 on a two-stream basis and 95,000 net acres. The transaction is expeted to be accretive to cash flow per share and free cash flow per share in both the near and long-term before accounting for synergies. Oasis expects over $100M of incremental field level cash flow at strip prices in 2H21. "This exciting acquisition is a great example of how Oasis is addressing the needs of tomorrow, by taking action in our new industry paradigm, today," said Danny Brown, Oasis' CEO. "The strategic fit of focusing capital to consolidate assets in our core area, generating significant free cash flow for the benefit of the company and its shareholders, is highlighted via this acquisition. Given the significant anticipated increase in free cash flow per share, coupled with our commitment to returning capital to shareholders, we anticipate declaring a 33% increase to our dividend, raising the quarterly dividend to $0.50 per share with our quarterly declaration after the transaction closes later this year. This acquisition materially enhances scale in our core Bakken asset at an attractive valuation, with the purchase price almost entirely based on PDP and very little value attributed to the development of the top-tier inventory or potential synergies. When combining the inherently attractive acquisition price with the prudent use of our best-in-class balance sheet this acquisition creates significant accretion for shareholders across all metrics, while maintaining pro forma leverage below target, and well below that of our peers." Mr. Brown went on to say, "I'm thankful for the hard work of all those involved in this transaction, and look forward to Oasis operating this asset in a manner consistent with our values and focus on ESG: being respectful of and engaging with all of our stakeholders, including the Three Affiliated Tribes on the Fort Berthold Indian Reservation; showing commitment to our communities and the environment; and operating in a safe and sustainable manner."
Diamondback Energy sees FY21 CapEx $1.6B-$1.75B » 17:4705/0305/03/21
Sees Q2 cash CapEx…
Sees Q2 cash CapEx $350M-$400M.
Diamondback Energy sees 2021 total net production 350-360 MBOE/d 17:4605/0305/03/21
Diamondback Energy reports Q1 adjusted EPS $2.30, consensus $1.80 » 17:4405/0305/03/21
Reports Q1 revenue…
Reports Q1 revenue $1.18B, consensus $1.01B.
Diamondback Energy files to sell 10.68M shares of common stock for holders 17:0505/0305/03/21