RBC Capital updated its outlook on Diamondback Energy, Inc. (NASDAQ:FANG) following a couple of meaningful acquisitions over the past month that when combined were 7-9% accretive to their 2023/2024 per share estimates and fairly neutral to overall inventory depth.

According to the analysts, the Firebird and Lario transactions both should allow the company to increase its shareholder payouts over the next couple of years. Firebird was 3-4% accretive to their estimates while Lario was 4-5% accretive.

The company's shareholder return proposition is at least 75% of free cash flow in the form of fixed dividends, variable dividends, and stock buybacks. The analysts believe this amounts to a $15/share total 2023 calendar return, up 7-8% year-over-year.