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
The stock is one of the favorites of our community with 69 Buy predictions and 1 Sell predictions.
With a target price of 196 € there is a hugely positive potential of 60.66% for Diamondback Energy compared to the current price of 122.0 €.
