William Blair analyst Neal Dingmann has maintained their bullish stance on FANG stock, giving a Buy rating today.
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Neal Dingmann has given his Buy rating due to a combination of factors that highlight Diamondback’s resilience and value in the current commodity environment. He sees the company as well positioned to meet its near-term operational and financial targets, even amid oil price uncertainty, supported by steadily improving cost efficiency and some of the most competitive breakeven levels in the industry. In his view, this low-cost structure, aided by ongoing operational enhancements and selective use of higher-spec equipment, allows Diamondback to generate attractive returns and free cash flow without needing to accelerate activity. He also emphasizes that the company is likely to act opportunistically on its own shares if the stock trades below what he deems a reasonable midcycle valuation.
At the same time, Dingmann supports management’s decision to stay in “maintenance mode,” holding oil output flat while channeling excess cash toward dividends, share repurchases, and further balance sheet improvement rather than chasing incremental volumes in a noisy macro backdrop. He notes that capital spending is expected to remain steady, without the front-loaded surge seen at some peers, and that cost inflation is manageable and largely confined to areas such as power and water handling. Looking into 2026, he believes the market may be overestimating natural gas growth, but he views Diamondback’s disciplined capital allocation and commitment to free cash flow as key positives. Overall, the combination of strong operational execution, conservative production strategy, robust free cash flow priorities, and the potential for share repurchases underpins his favorable view and supports the Buy recommendation.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $218.00 price target.