The energy sector has come roaring back in the fourth quarter after a relatively quiet summer. Oil prices have been surging lately, driven by consistently escalating hostilities in the Middle East, including recent speculation that Israel may be considering a retaliatory attack on Iran's oil fields. Last Friday, WTI crude oil futures (CLX24) racked up their biggest weekly gain since March 2023.
Against this backdrop, Diamondback Energy (FANG) emerges as a standout performer in the U.S. shale industry. The company just completed its acquisition of Endeavor, making it the biggest company focused on the asset-rich Permian Basin - and prompting JPMorgan to restart coverage of FANG at “Overweight.”
