Better Energy Stock: Diamondback Energy vs. Chevron
Comparing a pure-play exploration and production in the Permian Basin, Diamondback Energy (NASDAQ: FANG), with an integrated energy major, (NYSE: CVX), sheds light on many of the questions that oil and gas-focused investors face in the coming years. Let's take a look at which company might suit which type of investor better.
There's no getting around this question when investing in energy stocks, but the answers to it may not be immediately apparent. It's important to note that both these companies are very well run and pride themselves on a relatively low operating "break-even" oil price. This price represents the lowest price of oil needed to cover the cost of the company's operating expenses, existing wells (maintenance capital spending), and base dividend.
Chevron's break-even price for oil is in the $30 per barrel range accoring to a Wood Mackenzie survey. Diamondback's management estimates its equivalent break-even price is $37 per barrel.
Source Fool.com
Diamondback Energy Stock
With 62 Buy predictions and not a single Sell prediction Diamondback Energy is an absolute favorite of our community.
As a result the target price of 184 € shows a slightly positive potential of 6.74% compared to the current price of 172.38 € for Diamondback Energy.
