Diamondback Energy resumed with an Outperform at Evercore ISI

Evercore ISI resumed coverage of Diamondback Energy (FANG) with an Outperform rating and $165 price target The company elected to drop activity in reaction to shifts in the external environment as it has a “keen sense of wellhead economics but also its own intrinsic value and manages accordingly,” the analyst tells investors in a research note. The firm says that while both the demand and supply side of the oil market are facing key uncertainties, this is not 2014 or 2020, rather a cycle where OPEC is focused on outside the U.S. supply growth and the demand function is highly uncertain. Diamondback has been “unique” in maintaining operational flexibility and control at an ever bigger scale, says Evercore.