Diamondback Energy
Market Cap
US$6.6b
Last Updated
2020/07/05 23:49 UTC
Data Sources
Company Financials +
Executive Summary
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.
Rewards
Risk Analysis
Snowflake Analysis
Moderate growth potential and slightly overvalued.
Similar Companies
Share Price & News
How has Diamondback Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FANG's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.0%
FANG
2.5%
US Oil and Gas
4.0%
US Market
1 Year Return
-61.3%
FANG
-39.9%
US Oil and Gas
5.0%
US Market
Return vs Industry: FANG underperformed the US Oil and Gas industry which returned -39.9% over the past year.
Return vs Market: FANG underperformed the US Market which returned 4.9% over the past year.
Shareholder returns
| FANG | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.0% | 2.5% | 4.0% |
| 30 Day | -20.4% | -15.8% | -1.1% |
| 90 Day | 29.5% | 18.9% | 21.1% |
| 1 Year | -60.5%-61.3% | -37.1%-39.9% | 7.2%5.0% |
| 3 Year | -50.5%-51.7% | -30.9%-38.2% | 36.0%27.1% |
| 5 Year | -39.8%-41.4% | -36.3%-46.7% | 65.3%46.9% |
Price Volatility Vs. Market
How volatile is Diamondback Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Matthew Van’t Hof Is The CFO & Executive VP of Business Development of Diamondback Energy, Inc. (NASDAQ:FANG) And They Just Picked Up 7.4% More Shares3 weeks ago | Simply Wall St
Does Diamondback Energy (NASDAQ:FANG) Have A Healthy Balance Sheet?1 month ago | Simply Wall St
Looking For Steady Income For Your Dividend Portfolio? Is Diamondback Energy, Inc. (NASDAQ:FANG) A Good Fit?Valuation
Is Diamondback Energy undervalued compared to its fair value and its price relative to the market?
9.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FANG ($41.56) is trading below our estimate of fair value ($46.02)
Significantly Below Fair Value: FANG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FANG is unprofitable, so we can't compare its PE Ratio to the Oil and Gas industry average.
PE vs Market: FANG is unprofitable, so we can't compare its PE Ratio to the US market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate FANG's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: FANG is good value based on its PB Ratio (0.5x) compared to the US Oil and Gas industry average (0.7x).
Next Steps
Future Growth
How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
61.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FANG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).
Earnings vs Market: FANG is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: FANG's is expected to become profitable in the next 3 years.
Revenue vs Market: FANG's revenue (6.7% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: FANG's revenue (6.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FANG's Return on Equity is forecast to be low in 3 years time (2.5%).
Next Steps
Past Performance
How has Diamondback Energy performed over the past 5 years?
49.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FANG is currently unprofitable.
Growing Profit Margin: FANG is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: FANG is unprofitable, but has reduced losses over the past 5 years at a rate of 49.9% per year.
Accelerating Growth: Unable to compare FANG's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: FANG is unprofitable, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-17.5%).
Return on Equity
High ROE: FANG has a negative Return on Equity (-0.89%), as it is currently unprofitable.
Next Steps
Financial Health
How is Diamondback Energy's financial position?
Financial Position Analysis
Short Term Liabilities: FANG's short term assets ($1.3B) do not cover its short term liabilities ($1.3B).
Long Term Liabilities: FANG's short term assets ($1.3B) do not cover its long term liabilities ($7.7B).
Debt to Equity History and Analysis
Debt Level: FANG's debt to equity ratio (39.7%) is considered satisfactory.
Reducing Debt: FANG's debt to equity ratio has increased from 29% to 39.7% over the past 5 years.
Debt Coverage: FANG's debt is well covered by operating cash flow (56.5%).
Interest Coverage: FANG is unprofitable, therefore interest payments are not well covered by earnings.
Balance Sheet
Next Steps
Dividend
What is Diamondback Energy current dividend yield, its reliability and sustainability?
3.61%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FANG's dividend (3.61%) is higher than the bottom 25% of dividend payers in the US market (1.67%).
High Dividend: FANG's dividend (3.61%) is low compared to the top 25% of dividend payers in the US market (4.5%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FANG has been paying a dividend for less than 10 years.
Growing Dividend: FANG's dividend payments have increased, but the company has only paid a dividend for 2 years.
Current Payout to Shareholders
Dividend Coverage: FANG is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: FANG's dividends in 3 years are forecast to be well covered by earnings (32.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.4yrs
Average management tenure
CEO
Travis Stice (58yo)
8.5yrs
Tenure
US$16,049,656
Compensation
Mr. Travis D. Stice has been Chief Executive Officer and Director of Energen Corporation since November 29, 2018. Mr. Stice serves as the Chief Executive Officer and Director of Viper Energy Partners GP LL ...
CEO Compensation Analysis
Compensation vs Market: Travis's total compensation ($USD16.05M) is above average for companies of similar size in the US market ($USD7.34M).
Compensation vs Earnings: Travis's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.5yrs | US$16.05m | 0.28% $18.1m | |
| CFO & Executive VP of Business Development | 1.33yrs | US$31.06m | 0.017% $1.1m | |
| Chief Accounting Officer | 1.33yrs | US$4.85m | 0.028% $1.8m | |
| Executive VP | 1.42yrs | US$3.88m | 0.0032% $207.3k | |
| Executive VP & Chief Engineer | 3.5yrs | US$7.27m | 0.072% $4.7m | |
| Executive Vice President of Land | 3.33yrs | US$3.72m | 0.011% $724.1k | |
| Executive Vice President of Operations | 0.83yr | no data | 0.0064% $418.5k | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP & Chief Human Resources Officer | 2.5yrs | no data | 0.0015% $100.4k | |
| Senior Vice President of Geoscience and Technology | 1.33yrs | no data | no data |
1.4yrs
Average Tenure
50yo
Average Age
Experienced Management: FANG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.5yrs | US$16.05m | 0.28% $18.1m | |
| Independent Lead Director | no data | US$276.00k | 0.0072% $472.2k | |
| Independent Director | 7.75yrs | US$276.00k | 0.011% $701.1k | |
| Independent Chairman of the Board | 7.75yrs | US$379.75k | 0.0059% $386.3k | |
| Independent Director | 7.75yrs | US$276.00k | 0.0064% $421.1k | |
| Independent Director | 2.25yrs | US$268.50k | 0.0022% $141.7k | |
| Independent Director | 0.25yr | no data | no data | |
| Independent Director | 0.25yr | no data | no data |
7.7yrs
Average Tenure
60.5yo
Average Age
Experienced Board: FANG's board of directors are considered experienced (7.7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FANG insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Diamondback Energy, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Diamondback Energy, Inc.
- Ticker: FANG
- Exchange: NasdaqGS
- Founded: 2007
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$6.559b
- Shares outstanding: 157.82m
- Website: https://www.diamondbackenergy.com
Number of Employees
Location
- Diamondback Energy, Inc.
- 500 West Texas Avenue
- Suite 1200
- Midland
- Texas
- 79701
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FANG | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Oct 2012 |
| 7DB | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Oct 2012 |
| FANG * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Oct 2012 |
| F1AN34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
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 primarily 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, 2019, the company’s total acreage position was approximately 455,378 gross acres in the Permian Basin; and estimated proved oil and natural gas reserves were 1,127,575 thousand barrels of crude oil equivalent. It also held working interests in 2,656 gross producing wells, as well as royalty interests in 4,161 additional wells. In addition, the company owns mineral interests approximately 814,224 gross acres and 24,304 net royalty acres in the Permian Basin and Eagle Ford Shale; and owns, operates, develops, and acquires midstream infrastructure assets, such as 867 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/07/05 23:49 |
| End of Day Share Price | 2020/07/02 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.