Diamondback Energy, Inc.

FANG

$202.94

-0.24%

N/A-$0.48

Energy

Oil & Gas Exploration & Production

NASDAQ

Active Trading

Diamondback Energy, Inc. operates as an independent enterprise focused on oil and natural gas. Its core business involves the acquisition, development, exploration, ...

Fundamental Analysis of FANG

Key Strengths

Premier Permian Basin acreage with significant resource potential

Low-cost operator with efficient drilling and completion practices

Risk Factors

High exposure to commodity price volatility (oil and gas)

Potential for inflation in service and material costs

Profitability

Net Margin9.27%

Operating Margin27.68%

Valuation

P/E Ratio39.64x

Current Ratio0.47

Efficiency

ROE4.22%

ROA2.26%

Fundamental Analysis of FANG

Diamondback Energy is a leading independent oil and gas producer with a dominant position in the Permian Basin, one of the most prolific hydrocarbon regions in the world. The company's strategy focuses on low-cost, efficient development of its large acreage position, which has driven strong operational performance and shareholder returns. As of the latest TTM data, Diamondback generates robust free cash flow with a free cash flow yield of 12.3%, supported by low capital intensity (capex to operating cash flow of 35.9%). The company maintains a healthy balance sheet with a debt-to-equity ratio of 33.3% and an interest coverage ratio of 17.7x, providing financial flexibility. Diamondback's profitability metrics, though currently compressed by lower commodity prices, remain respectable: net margin of 10.3% and ROE of 4.7% in a cyclical downturn. The company has a strong dividend and buyback program, with a payout ratio of 82.9% and a dividend yield of 2.2%. Management's focus on capital discipline is evident in its maintenance capex approach, returning excess cash to shareholders. Long-term, Diamondback's high-quality assets, low breakeven costs, and strong balance sheet position it well for sustained value creation. However, the company's performance is highly sensitive to oil and natural gas prices, which introduces significant earnings volatility. Analyst consensus suggests a 'buy' rating, reflecting confidence in the company's operational excellence and shareholder returns, albeit with near-term caution due to commodity price uncertainty.

Key Strengths of FANG

Premier Permian Basin acreage with significant resource potential
Low-cost operator with efficient drilling and completion practices
Strong balance sheet with low leverage and high interest coverage
Attractive shareholder returns via dividends and buybacks
High free cash flow generation with a yield of 12.3%
Experienced management team with a track record of value creation

Risk Factors of FANG

High exposure to commodity price volatility (oil and gas)
Potential for inflation in service and material costs
Regulatory and environmental risks, including stricter emissions standards
Geopolitical tensions affecting global energy markets
Substantial capital expenditure requirements, though disciplined
Risk of operational disruptions due to weather or accidents
Dependence on Permian Basin infrastructure capacity

Market Cap vs Revenue & Earnings

Earnings

n/a

Revenue

n/a

Market cap

$57.09B

39.6x

P/E Ratio

3.3x

P/S Ratio

Earnings & Revenue

Last Reportedn/a

Earnings per share (EPS)n/a

Gross Margin44.46%

Net Profit Margin9.27%

Debt/Equity Ratio0.33

Profitability Bridge (Current vs YoY)

How gross, operating and net margins shifted versus last year.

Revenue / Net Income / FCF History (USD B)

Growth Signals of FANG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Revenue	—	—	—	—	Flat
Diluted EPS	—	—	—	—	Flat
Free Cash Flow	—	—	—	—	Flat

Profitability of FANG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Net Margin	—	33.84%	—	—	Flat
Operating Margin	—	45.16%	—	—	Flat
ROE	—	—	—	—	Flat

Financial Health of FANG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
Current Ratio	—	0.467	—	—	Flat
Quick Ratio	—	0.455	—	—	Flat
Debt / Equity	—	0.333	—	—	Flat

Valuation of FANG

Metric	Current	Previous	YoYYear-over-Year change: current quarter versus the same quarter last year.	QoQQuarter-over-Quarter change: current quarter versus the immediately previous quarter.	Signal
P/E	—	6.61x	—	—	Flat
P/B	—	1.30x	—	—	Flat

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Diamondback Energy, Inc.

Fundamental Analysis of FANG

Key Strengths

Risk Factors

Fundamental Analysis of FANG

Key Strengths of FANG

Risk Factors of FANG

Market Cap vs Revenue & Earnings

Earnings & Revenue

Profitability Bridge (Current vs YoY)

Revenue / Net Income / FCF History (USD B)

Growth Signals of FANG

Profitability of FANG

Financial Health of FANG

Valuation of FANG

Supply Chain of FANG

Upstream

Downstream

Proxies

Fundamental Analysis of FANG

Key Strengths

Risk Factors

Fundamental Analysis of FANG

Key Strengths of FANG

Risk Factors of FANG

Market Cap vs Revenue & Earnings

Earnings & Revenue

Profitability Bridge (Current vs YoY)

Revenue / Net Income / FCF History (USD B)

Growth Signals of FANG

Profitability of FANG

Financial Health of FANG

Valuation of FANG

Supply Chain of FANG

Upstream

Downstream

Proxies