Diamondback Energy, Inc. (FANG) Expects the Growth of U.S. Crude Production to Stagnate; Bernstein SoGen Group Reiterates Its Outperform Rating and $192 Price Target

Core Insights - Diamondback Energy, Inc. (NASDAQ:FANG) is recognized as one of the safest stocks to invest in, bolstered by hedge fund interest and a significant return on equity [1] Group 1: Company Performance and Outlook - The CEO of Diamondback Energy warned that if oil prices remain around $60 per barrel, U.S. crude production growth will stagnate, with challenges in growth at lower price levels due to a lack of Tier 1 drilling locations [2] - Diamondback Energy has reduced its 2025 capital investment by $500 million to $3.5 billion, while U.S. crude futures were trading at approximately $61.50 [3] - Bernstein SoGen Group reiterated its Outperform rating and set a price target of $192 for Diamondback Energy following a non-deal roadshow with management [3] Group 2: Investment Strengths - The investment firm highlighted Diamondback Energy's strong inventory life, disciplined balance sheet, and share repurchase strategy, emphasizing its status as the last large-cap single-basin shale producer [4] - The company operates primarily in the Permian Basin, reinforcing its position as a safe investment choice [4]