Want to see FANG full AI Analyst Report?
Top Page
Diamondback
(NASDAQ:FANG)
Select Model
Select Model
Rating:71Outperform
Price Target:
$220.00
â–²(7.48% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by strong financial resilience (low leverage and solid TTM cash generation) and a positive, execution-focused earnings update (production outperformance and meaningful debt reduction). Technicals are moderately supportive with price above key moving averages. The biggest constraint on the score is valuation, with an extremely high P/E that makes the stock less forgiving if profitability or commodity conditions weaken.
Positive Factors
Strong Balance Sheet
Very low leverage and a large equity base give Diamondback durable financial flexibility. This supports funding development (Barnett, power/data project), opportunistic buybacks, and debt maturations without forcing asset sales, improving resilience through commodity cycles.
Negative Factors
Free Cash Flow Volatility
Material FCF swings reduce predictability of capital returns and reinvestment. Negative FCF in a prior year shows sensitivity to prices and activity; management may need to retain cash or cut buybacks during downturns, constraining long‑term shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Very low leverage and a large equity base give Diamondback durable financial flexibility. This supports funding development (Barnett, power/data project), opportunistic buybacks, and debt maturations without forcing asset sales, improving resilience through commodity cycles.
Read all positive factors
Diamondback Key Performance Indicators (KPIs)
Any
Production by Segment
Shows the output from different business areas, highlighting which segments drive growth and profitability, and indicating operational focus and efficiency.
Shows the output from different business areas, highlighting which segments drive growth and profitability, and indicating operational focus and efficiency.
Data provided by:
The Fly
The FlyDiamondback (FANG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.70B
Dividend Yield2.1%
Average Volume (3M)2.21M
Price to Earnings (P/E)39.5
Beta (1Y)0.35
Revenue Growth21.45%
EPS Growth-63.30%
CountryUS
Employees1,762
SectorEnergy
Sector Strength52
IndustryOil & Gas Exploration & Production
Share Statistics
EPS (TTM)5.12
Shares Outstanding280,024,350
10 Day Avg. Volume1,843,406
30 Day Avg. Volume2,206,624
Financial Highlights & Ratios
PEG Ratio-0.42
Price to Book (P/B)1.18
Price to Sales (P/S)2.89
P/FCF Ratio8.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$230.65Price Target Upside12.69% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)20.2
Revenue Forecast (FY)$18.32B
Diamondback Business Overview & Revenue Model
Company Description
Diamondback Energy, Inc. operates as an independent enterprise focused on oil and natural gas. Its core business involves the acquisition, development, exploration, and production of unconventional and onshore hydrocarbon reserves, predominantly l...
How the Company Makes Money
Diamondback primarily makes money by producing and selling crude oil, natural gas, and natural gas liquids (NGLs) from its operated and non-operated wells. Revenue is generated when produced volumes are sold to purchasers/marketers and delivered i...
Diamondback Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call highlighted multiple operational and financial wins: production outperformance (~4% YTD), significant net-debt reduction ($1.6B / ~$5.60 per share), LOE below $6/bbl, gas-marketing improvements, early positive EOR results, and progress on Barnett and a shovel-ready power/data center project. Headwinds cited included ongoing macro volatility, some inflationary pressures (notably casing and consumables), variability in EOR outcomes, and near-term infrastructure/maturity considerations. On balance the company presented more concrete operational and financial positives than negatives and emphasized disciplined, flexible capital allocation.Positive Updates
Production Growth Execution
Company increased production ~4% year-to-date vs. the original plan (management noted they were the first to raise production in March by 3%–4% and are ~4% above the start-of-year level). Management expects low single-digit organic growth into 2027 while running five frac crews and remaining capital-efficient.
Negative Updates
Macro Volatility and Uncertainty
Management emphasized ongoing market volatility and uncertainty (geopolitics and inventory noise). They stressed the need to remain flexible and noted that macro dislocations can change decisions quickly, underscoring risk to planning.
Read all updates
Q2-2026 Updates
Positive
Negative
Production Growth Execution
Company increased production ~4% year-to-date vs. the original plan (management noted they were the first to raise production in March by 3%–4% and are ~4% above the start-of-year level). Management expects low single-digit organic growth into 2027 while running five frac crews and remaining capital-efficient.
Read all positive updates
Company Guidance
Management said 2026 production is running about 3–4% above the original plan (roughly +4% YTD) and their plan today yields low‑single‑digit organic growth into 2027 while running five frac crews, with Q3 potentially flat to modestly higher; they estimate a maintenance capital run‑rate of roughly $1.0B to a little over $1.0B per quarter to hold production flat. Operational targets include drilling cycle times down from ~30 days to ~5, average pumping >21 hours/day (aspire to 24) with a 5,000+ ft/day bogey per pad, Barnett drilling costs trending toward ~$400/ft (stretch goal ~$300/ft) and average laterals moving above ~12,000 ft; U‑turn testing (6 wells) and a 12‑well surfactant EOR trial (following an earlier ~50‑well pilot) are underway. Key financials: LOE around $6/boe, net debt reduced by $1.6B (≈$5.60/share), non‑D&C spend ≈$600M YTD, and management will continue opportunistic buybacks (they repurchased >5% of shares in 2025).Diamondback Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.10B | 15.03B | 11.02B | 8.34B | 9.57B | 6.75B |
| Gross Profit | 7.60B | 5.28B | 4.97B | 4.80B | 6.70B | 4.27B |
| EBITDA | 7.13B | 7.16B | 7.64B | 6.17B | 7.23B | 4.37B |
| Net Income | 1.59B | 1.66B | 3.34B | 3.14B | 4.39B | 2.18B |
Balance Sheet | ||||||
| Total Assets | 70.22B | 71.06B | 67.29B | 29.00B | 26.21B | 22.90B |
| Cash, Cash Equivalents and Short-Term Investments | 462.00M | 106.00M | 161.00M | 582.00M | 157.00M | 654.00M |
| Total Debt | 12.61B | 14.88B | 12.43B | 6.80B | 6.38B | 6.77B |
| Total Liabilities | 26.23B | 28.09B | 27.43B | 11.57B | 10.52B | 9.65B |
| Stockholders Equity | 37.90B | 36.97B | 37.74B | 16.63B | 15.01B | 12.09B |
Cash Flow | ||||||
| Free Cash Flow | 6.50B | 5.24B | -5.37B | 1.21B | 2.71B | 1.67B |
| Operating Cash Flow | 10.14B | 8.76B | 6.41B | 5.92B | 6.33B | 3.94B |
| Investing Cash Flow | -4.23B | -7.81B | -11.22B | -3.32B | -3.33B | -1.54B |
| Financing Cash Flow | -5.67B | -1.01B | 4.39B | -2.18B | -3.50B | -1.84B |
Diamondback Technical Analysis
Positive
204.68
Price Trends
190.11
Positive
192.41
Positive
174.30
Positive
Market Momentum
2.37
Negative
58.65
Neutral
82.45
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FANG, the sentiment is Positive. The current price of 204.68 is above the 20-day moving average (MA) of 196.74, above the 50-day MA of 190.11, and above the 200-day MA of 174.30, indicating a bullish trend. The MACD of 2.37 indicates Negative momentum. The RSI at 58.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.45 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FANG.
Diamondback Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $74.80B | 11.04 | 22.38% | 2.79% | 17.13% | 24.89% | |
73 Outperform | $18.01B | 13.90 | 11.32% | 2.90% | 12.81% | -5.91% | |
72 Outperform | $50.43B | 10.84 | 14.90% | 2.31% | 18.28% | -5.35% | |
71 Outperform | $56.70B | 39.54 | 4.22% | 2.03% | 21.45% | -63.30% | |
70 Outperform | $17.36B | 17.85 | 8.27% | 1.90% | 6.17% | 57.64% | |
68 Neutral | $6.64B | 9.21 | 8.74% | 2.83% | 1.84% | -14.76% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% |
* Energy Sector Average
FANG
Diamondback
202.47
66.23
48.61%
DVN
Devon Energy
45.85
13.15
40.21%
OVV
Ovintiv
63.02
24.86
65.15%
EOG
EOG Resources
142.61
28.84
25.34%
MTDR
Matador Resources
53.69
8.28
18.23%
PR
Permian Resources
21.50
8.71
68.10%
Diamondback Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Diamondback Expands and Extends Syndicated Credit Facility Commitments
Positive
Jun 15, 2026
On June 12, 2026, Diamondback Energy and its subsidiary Diamondback EP LLC executed a seventeenth amendment to their long-standing syndicated credit agreement, extending the facility’s maturity by one year to June 12, 2031 and increasing tot...
Executive/Board ChangesShareholder Meetings
Diamondback Energy Announces Leadership Transition and Board Backing
Positive
May 20, 2026
Diamondback Energy implemented a planned leadership transition on May 20, 2026, when longtime executive Travis D. Stice stepped down as Executive Chairman to become non-executive Chairman of the Board, aligning his compensation with that of other ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.