Is Diamondback Energy Stock a Buy on the Dip?

It has been a challenging year for oil exploration and production stocks, with many of them tracking the decline in oil prices over the period. Diamondback Energy (NASDAQ: FANG) is no exception, and its 21% fall isn't surprising. Still, it's incredibly tough to predict where the price of oil will go, and on a risk-reward basis, the stock looks like a good value.Management of the company focused on the Permian Basin spent considerable time highlighting its low-cost investment structure during its recent third-quarter earnings call, and for good reason. A low-cost structure enables the company to generate a relatively good cash flow even when the price of oil isn't high, and it also allows the company to have a relatively low reinvestment rate, thereby preserving more cash flow to return to investors.These properties play out in adjusted free cash flow (FCF) guidance, which calls for the following. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool