According to KeyBanc, investors should buy Diamondback Energy, the top oil producer in the Permian Basin, as the US is struggling to meet demand. Analyst Tim Rezvan began covering Diamondback Energy with an overrated rating. He also set a price target of $163 per share on the stock, implying a roughly 25% gain from Monday’s close. “Fear of a decline in demand due to China shutdowns that will deforest trees – the US IS THE BIGGEST OIL CONSUMER IN THE COUNTRY AND UNSUPPLIED,” Rezvan wrote in a note Monday. , Rezvan wrote in a note Monday. Diamondback shares are up about 21% this year due to a spike in oil and gas prices, and analysts expect them to climb even higher as the U.S. resolves a 15% shortfall in oil and gas. and distillates from 2015 to 2019. Rezvan also points to the company’s deep inventory and a good balance sheet for overweight ratings, as well as Diamondback’s simple production model and ownership Viper Energy, a licensing subsidiary that helps increase revenue for the company. He said: “Diamondback has unparalleled drilling economics from royalty ownership through Viper Energy Partners. The balance sheet is now the right size following two major acquisitions in 2020. And we see one. long strip of core inventory on both sides of the Permian”. “Given the size of the Company and the consistency of drilling activity in the Midland Basin, amid unequal results from peers, we disagree with the decision to avoid growth, but we I still see value relative to large-cap companies and believe superior dividends will attract investors with increased income,” Rezvan added. — Michael Bloom of CNBC contributed to this report.