Analyst Note| Stephen Ellis |
Diamondback and Viper's first-quarter results were strong, as expected, after both pre-announced key figures a few weeks ago. Diamondback's production for the first quarter was 307.4 thousand barrels of oil equivalent per day (mboe/d) ahead of Visible Alpha's consensus of 306 mboe/d, while Viper met Visible Alpha expectations of 26 mboe/d. We will maintain our fair values and narrow moat ratings for now while we update our models. Both firms are benefiting from the recent substantial increase in oil prices but are maintaining investment discipline in the face of potential OPEC+ supply additions that could disrupt the market.