Diamondback Energy primarily focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin, as well as the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin.
The company owns, operates, develops and acquires midstream infrastructure assets, including 770 miles of crude oil gathering pipelines, natural gas gathering pipelines and an integrated water system in the Midland and Delaware Basins.
Investors receive an 8.05% dividend, which is also of the variable variety, meaning it could change depending on production and profits. The $207 Piper Sandler target price is well above the $173.48 consensus target, and Diamondback Energy stock closed on Monday at $143.19.
Marathon Oil
This is a solid way for investors who are more conservative to play the energy sector. Marathon Oil Corp. (NYSE: MRO) operates as an independent exploration and production company in the United States and internationally.
The company engages in the exploration, production and marketing of crude oil and condensate, natural gas and NGLs, as well as the production and marketing of products manufactured from natural gas, such as liquefied natural gas (LNG) and methanol. It also owns and operates 32 central gathering and treating facilities, as well as the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties in Texas.
Wall Street analysts are positive on the prospects for the company’s second-quarter earnings, which are expected to be reported on August 3.
Marathon Oil stock comes with a 1.57% dividend. The Wells Fargo target price is $40. That compares with a $33.03 consensus target and Monday’s closing print of $25.76.
While it remains to be seen if Exxon Mobil does make the huge play to acquire Pioneer Natural Resources, it is a good bet that the competition will start thinking about doing the same. Over the past 75 years, there have been numerous big oil deals. With prices on the rise, and demand from China, India and other emerging markets expected to grow over the coming years, more deals could be on tap in the energy world.
Originally published at 24/7 Wall St.
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