Diamondback Energy Inc (NASDAQ:FANG) shares were climbing in early trading on Friday, during a rise in energy stocks with growing Middle East tensions.

Following the Endeavor acquisition, Diamondback and ExxonMobil Corp (NYSE:XOM) are now the dominant players in the Midland Basin, according to BMO Capital Markets.

Analyst Phillip Jungwirth upgraded the rating for Diamondback Energy from Market Perform to Outperform, while raising the price target from $205 to $215.

The Diamondback Energy Thesis: Synergies from the Endeavor acquisition are likely to "meet or exceed expectations," Jungwirth said in the upgrade note.

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The company's strong position in the Midland Basin makes it poised to be a "long-term winner with leading core inventory depth and best in class capital efficiency," he added.

"Diamondback appears to have made all the right moves, creating value via strategic M&A, operational execution, and return of capital," the analyst wrote. With its performance continuing to improve, the company should be able to sustain its leadership position "in coming years," he further stated.

FANG Price Action: Shares of Diamondback Energy had risen by 1.62% to $191.36 at the time of publication on Friday.

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