By George Glover
Diamondback Energy can benefit even more than its peers from the recent surge in oil prices, according to Mizuho Americas, which added the stock to its list of top picks on Thursday.
Diamondback shares, which trade under the ticker FANG, climbed 3.9% to $197.97 ahead of the opening bell. Futures tracking the S&P 500 were 1.3% lower after President Donald Trump dashed the market's hopes of a swift end to the Iran war.
Mizuho publishes a list each month of its U.S. analysts' highest conviction ideas. Analyst Nitin Kumar listed Diamondback as his top oil and gas exploration and production pick on Thursday, replacing ConocoPhillips.
Kumar said that Diamondback is widely seen as a leader in the U.S. shale industry, due to the depth and quality of its inventory. He rates shares Buy, with a price target of $220.
The company opted to hold production levels flat at 505,000 to 510,000 barrels a day last year, waiting until oil prices improved. Crude benchmarks have soared over the past month due to the conflict in the Middle East disrupting shipping through the Strait of Hormuz.
While peers have seen their oil output per foot of drilling drop by 16% since 2020, Diamondback has actually become more efficient, Kumar said, citing industry data.
The analyst added that Diamondback set aside up to $150 million in capital to fund exploration of the Barnett Shale in North Texas, which he said was "a prudent way to not only optimize future development but also create a comprehensive view of reserves in place."
Kumar listed Devon Energy as his second-choice oil-and-gas pick. Permian Resources is the top pick for fellow Mizuho Americas analyst William Janela.
Both those stocks were also rising on Thursday, alongside oil majors Chevron and Exxon Mobil. The rally came after Trump's address to the nation failed to shed much light on the timeline for ending the Iran war, fueling fears that a drawn-out conflict could carry on boosting crude prices.
Write to George Glover at george.glover@dowjones.com
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(END) Dow Jones Newswires
April 02, 2026 07:55 ET (11:55 GMT)
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