Diamondback Energy Stock Rises Amidst Rising Middle East Tensions
Rising Middle East Tensions: Following the recent killing of Hezbollah leader Hassan Nasrallah, Iran launched an attack on Israel, reportedly firing between 100 and 200 missiles. This escalation in tensions led to a surge in energy stock prices, including Diamondback Energy.
Several analysts, including Wells Fargo, Evercore ISI Group, and Truist Securities, maintained their positive ratings on Diamondback Energy stock, albeit with lowered price targets. These upgrades provided a boost to investor confidence.
Diamondback Energy announced the closing of an acquisition and updated its guidance for the third quarter. The company completed the acquisition of certain mineral and royalty interest-owning subsidiaries of Tumbleweed Royalty IV for approximately $459 million in cash and the issuance of OpCo units. Additionally, Diamondback updated its third-quarter guidance to reflect the Endeavor Energy Resources deal, anticipating oil production of 319 to 321 MBO/d and capital expenditures of $675 million to $700 million.
It's important to note that Diamondback Energy is scheduled to report its third-quarter financial results on November 4th. Analysts expect the company to report earnings of $4.56 per share and revenue of $2.331 billion.
Overall, the combination of rising Middle East tensions, analyst upgrades, and the company's acquisition and guidance update contributed to the significant increase in Diamondback Energy's stock price on Tuesday.