Bernstein cuts ConocoPhillips and Diamondback ratings as Iran de-escalation looms

Bernstein downgraded Diamondback Energy to Market Perform from Outperform, lowering its price target to $192 from $221. The new target implies a 6.1% upside from the Nov 11 close of $180.98. Recent analyst price targets for the company range from $222 to $263.

Bernstein downgraded ConocoPhillips to Market Perform from Outperform, lowering its price target to $122 from $129, a 5.4% decrease. This implies a 11.5% downside from the Nov 11 close of $137.86. Other recent analyst targets range from $138 to $185.

Freedom Broker downgraded ConocoPhillips to Hold from Buy, raising its price target to $138 from $132. This implies a 1.8% upside from the Nov 10 close of $135.59. Recent analyst price targets for the company range from $142 to $185.

Diamondback Energy and KKR agreed to acquire Five Point's 70% stake in Deep Blue Midland Basin, with Five Point to receive cash. Diamondback already owns 30%. The transaction, expected to close in Q4 2026, involves water management operations in the Midland Basin.

U.S. oil and gas stocks rose Wednesday as crude prices climbed 3% due to Iran tensions. Brent futures gained $2.77 to $94.26, WTI added $2.27 to $88.31. Exxon Mobil (XOM) rose 1.3%, Chevron (CVX) gained 0.85%, and others like Devon Energy and EOG Resources climbed 0.9% to 2%. An ING analyst cited Middle East supply and US-Iran conflict uncertainty as factors.

Diamondback Energy (FANG) and KKR agreed to jointly acquire Five Point's 70% stake in Deep Blue, a water infrastructure platform. Diamondback already owns 30% of Deep Blue, and the deal is expected to close in Q4 2026. The acquisition aims to secure water-handling capacity for Diamondback's operations and other E&P customers in the Midland Basin. Financial details, including purchase price and ownership split, were not disclosed.