Diamondback, Expand Energy Named Top Picks at Scotiabank

Scotiabank has identified Diamondback Energy and Expand Energy as top picks in the U.S. oil and gas sector, citing their capital efficiency, durable cash flow potential, and undervalued asset portfolios. The brokerage has assigned both companies Sector Outperform ratings and set price targets of $250 for Diamondback and $111 for Expand Energy, implying potential returns of 38% and 29%, respectively.

Diamondback Energy stands out for its low-cost operations and extensive drilling inventory in the Midland Basin, while Expand Energy's strengths lie in its position as the largest independent natural gas producer in the United States and its expanding commercial operations following the acquisition of Twin Eagle.

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