Diamondback (FANG) AI Stock Analysis

• Market Cap: $39.69B
• Dividend Yield: 4.57%
• Average Volume (3M): 2.06M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.75
• Revenue Growth: 47.89%
• EPS Growth: -7.87%
• Country: US
• Employees: 1,983
• Sector: Energy
• Sector Strength: 45
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.54
• Shares Outstanding: 292,167,970
• 10 Day Avg. Volume: 1,871,160
• 30 Day Avg. Volume: 2,062,478
• PEG Ratio: 2.89
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.05
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 4.50
• Enterprise Value/Ebitda: 1.32
• 1Y Price Target: $185.05
• Price Target Upside: 34.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 23

• Rating: 73 Outperform
• Price Target: $152.00 ▲(10.55%Upside)

Diamondback Energy's stock score is driven by strong financial performance, particularly in revenue growth and profitability. Valuation metrics suggest the stock is undervalued, supported by a strong dividend yield. However, technical analysis and earnings call insights reveal potential risks with bearish momentum and production challenges. The company's strategic moves to manage capital expenditures and operational efficiency are positive signs for long-term stability.

Positive Factors

Asset Value

Diamondback's Delaware asset could potentially grow in value to $6.7 billion with an aggressive development plan.

Debt Reduction

The potential sale of the Delaware asset could significantly reduce Diamondback's debt, addressing investor concerns.

Negative Factors

Commodity Prices and Interest Rates

Key risk is lower-than-expected commodity prices and high interest rates.

High Gearing

A key challenge for FANG is its relatively high gearing compared to peers, primarily due to acquisitions and investments.

Diamondback Business Overview & Revenue Model

Company Description

Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas. It focuses on the development of the Spraberry and Wolfcamp formations of the Midland basin; and the Wolfcamp and Bone Spring formations of the Delaware basin, which are part of the Permian Basin in West Texas and New Mexico. As of December 31, 2021, the company's total acreage position was approximately 524,700 gross acres in the Permian Basin; and estimated proved oil and natural gas reserves were 1,788,991 thousand barrels of crude oil equivalent. It also held working interests in 5,289 gross producing wells, as well as royalty interests in 6,455 additional wells. In addition, the company owns mineral interests approximately 930,871 gross acres and 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and owns, operates, develops, and acquires midstream infrastructure assets, including 866 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

How the Company Makes Money

Diamondback Energy makes money primarily through the sale of oil, natural gas, and natural gas liquids (NGLs) that it extracts from its operated wells. The company's revenue model is driven by its ability to efficiently produce hydrocarbons from its extensive portfolio of assets in the Permian Basin. Diamondback leverages advanced drilling and completion techniques to enhance production and reduce costs. Key revenue streams include the sale of crude oil, which typically constitutes the largest portion of its revenue, followed by natural gas and NGLs. Additionally, Diamondback may engage in strategic partnerships or joint ventures to enhance its operational capabilities and expand its resource base. The company's earnings are also influenced by commodity price fluctuations, which can impact profitability and cash flow.

Diamondback Financial Statement Overview

Summary

Diamondback demonstrates strong revenue growth and profitability, with impressive profit margins and a stable equity position. Despite improvements in leverage, the high debt level and negative free cash flow growth pose challenges. Continued focus on managing capital expenditures and enhancing cash flow stability will be key to sustaining financial health.

Income Statement

Diamondback has demonstrated strong revenue growth with a notable increase of 16.75% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin stands at an impressive 68.44%, indicating robust cost management. Net profit margin is also strong at 30.88%, reflecting effective operational efficiency. However, a decrease in EBIT margin from 39.89% last year to 25.62% in TTM highlights some pressure on operating income.

Balance Sheet

The company shows a solid equity position with an equity ratio of 54.91% in TTM, suggesting stability. The debt-to-equity ratio has improved, falling to 0.02, indicating reduced leverage risk. Return on equity is strong at 10.33%, showcasing effective utilization of equity capital. However, a high total debt level remains a concern despite recent improvements.

Cash Flow

Free cash flow has declined significantly, leading to a negative growth rate. The operating cash flow to net income ratio is 1.87, suggesting solid cash generation relative to net income. However, negative free cash flow growth and high capital expenditures impact the cash flow stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
12.87B	11.02B	8.41B	9.64B	6.80B	2.81B
	Gross Profit
8.81B	4.97B	4.87B	6.78B	4.23B	644.00M
	EBIT
3.30B	4.40B	4.57B	6.51B	4.00B	547.00M
	EBITDA
8.98B	7.64B	6.17B	7.34B	4.38B	-4.26B
	Net Income Common Stockholders
3.98B	3.34B	3.14B	4.39B	2.18B	-4.67B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.82B	161.00M	582.00M	157.00M	654.00M	104.00M
	Total Assets
70.07B	67.29B	29.00B	26.21B	22.90B	17.62B
	Total Debt
914.00M	12.43B	6.80B	6.25B	6.69B	5.82B
	Net Debt
-902.00M	12.27B	6.22B	6.09B	6.03B	5.71B
	Total Liabilities
28.32B	27.43B	11.57B	10.52B	9.65B	7.82B
	Stockholders Equity
38.47B	37.74B	16.63B	15.01B	12.09B	8.79B
Cash Flow		Free Cash Flow
-4.48B	3.55B	1.21B	2.82B	1.65B	74.00M
	Operating Cash Flow
7.43B	6.41B	5.92B	6.33B	3.94B	2.12B
	Investing Cash Flow
-12.12B	-11.22B	-3.32B	-3.33B	-1.54B	-2.10B
	Financing Cash Flow
5.83B	4.39B	-2.18B	-3.50B	-1.84B	-37.00M

Diamondback Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 137.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FANG, the sentiment is Negative. The current price of 137.49 is above the 20-day moving average (MA) of 136.91, below the 50-day MA of 140.20, and below the 200-day MA of 163.35, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 29.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FANG.

Diamondback Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOG	78 Outperform	$60.13B	10.23	20.90%	3.42%	-0.23%	-14.82%
OVV	75 Outperform	$9.32B	15.28	6.17%	3.35%	-14.46%	-67.20%
OXY	75 Outperform	$40.63B	16.71	9.43%	2.18%	1.35%	-33.30%
FANG	73 Outperform	$39.69B	8.31	14.26%	4.57%	47.89%	-7.87%
DVN	73 Outperform	$20.01B	7.09	20.88%	4.01%	12.06%	-16.37%
MPC	72 Outperform	$48.88B	22.35	12.37%	2.18%	-6.39%	-64.50%
Sector *	57 Neutral	$7.06B	3.04	-3.49%	5.80%	0.53%	-50.39%

Diamondback Corporate Events

Diamondback Announces Leadership Changes at Annual Meeting

On May 21, 2025, Diamondback Energy, Inc. held its 2025 Annual Meeting of Stockholders, where significant leadership changes were announced. Travis D. Stice stepped down as CEO to become Executive Chairman of the Board, while continuing as a director until the 2026 Annual Meeting. The stockholders voted on several proposals, including the election of directors, approval of executive compensation, ratification of the company’s auditors, and a rejected proposal on executive severance arrangements. These decisions reflect a strategic shift in leadership and governance, potentially impacting the company’s future operations and stakeholder relations.

The most recent analyst rating on (FANG) stock is a Buy with a $231.00 price target. To see the full list of analyst forecasts on Diamondback stock, see the FANG Stock Forecast page.