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Diamondback Energy (FANG) shares rose 3.7% on the last trading session, closing at $154.91, amid significantly higher trading volume. This follows a 5.2% gain over the past four weeks. The company’s recent credit agreement amendment with Wells Fargo Bank, extending maturity to 2030 and lowering interest rates, has strengthened investor confidence.
Escalating tensions between Israel and Iran have pushed oil prices upwards, benefiting U.S. shale producers like Diamondback Energy. The Strait of Hormuz’s security concerns threaten about one-fifth of the world’s oil supply, contributing to bullish market sentiment. Diamondback is expected to report quarterly earnings of $2.72 per share, down 39.8% year-over-year, with revenues anticipated at $3.41 billion, up 37.2% from the prior year.
Currently, the consensus EPS estimate has been revised 6.4% lower, indicating potential challenges for future price appreciation. Diamondback holds a Zacks Rank #3 (Hold), while fellow industry member Comstock Resources (CRK) experienced a 1.1% decline to $25.33, with unchanged EPS estimates of $0.16, reflecting a 180% year-over-year increase.
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