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Market Cap

US$12.2b

Last Updated

2021/04/17 23:07 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. More Details


Snowflake Analysis

Reasonable growth potential with imperfect balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: FANG's weekly volatility (9%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

FANG

0.4%

US Oil and Gas

1.3%

US Market


1 Year Return

146.0%

FANG

43.9%

US Oil and Gas

53.9%

US Market

Return vs Industry: FANG exceeded the US Oil and Gas industry which returned 43.9% over the past year.

Return vs Market: FANG exceeded the US Market which returned 53.9% over the past year.


Shareholder returns

FANGIndustryMarket
7 Day3.7%0.4%1.3%
30 Day3.2%0.6%5.3%
90 Day30.9%13.9%8.9%
1 Year154.8%146.0%53.8%43.9%56.6%53.9%
3 Year-36.4%-39.6%-18.0%-29.5%64.4%53.6%
5 Year-2.4%-7.3%-4.5%-23.8%120.4%95.7%

Long-Term 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

Valuation

Is Diamondback Energy undervalued compared to its fair value and its price relative to the market?

1.39x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: FANG ($77.54) is trading above our estimate of fair value ($68.84)

Significantly Below Fair Value: FANG is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FANG is unprofitable, so we can't compare its PE Ratio to the US 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's PB Ratio (1.4x) is in line with the US Oil and Gas industry average.


Future Growth

How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

64.2%

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%).

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 (17.5% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: FANG's revenue (17.5% 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 (14.6%).


Past Performance

How has Diamondback Energy performed over the past 5 years?

-41.3%

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, and losses have increased over the past 5 years at a rate of 41.3% 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 (-44.6%).


Return on Equity

High ROE: FANG has a negative Return on Equity (-47.65%), as it is currently unprofitable.


Financial Health

How is Diamondback Energy's financial position?


Financial Position Analysis

Short Term Liabilities: FANG's short term assets ($602.0M) do not cover its short term liabilities ($1.2B).

Long Term Liabilities: FANG's short term assets ($602.0M) do not cover its long term liabilities ($6.6B).


Debt to Equity History and Analysis

Debt Level: FANG's debt to equity ratio (59.3%) is considered high.

Reducing Debt: FANG's debt to equity ratio has increased from 23.1% to 59.3% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FANG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FANG is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 0.8% per year.


Dividend

What is Diamondback Energy current dividend yield, its reliability and sustainability?

2.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FANG's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.24%).

High Dividend: FANG's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.46%).


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 3 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 (16% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Travis Stice (58 yo)

9.25yrs

Tenure

US$16,049,656

Compensation

Mr. Travis D. Stice is Chief Executive Officer and Director at QEP Resources, Inc. since March 17, 2021. He has been the Chief Executive Officer and Director of Energen Corporation since November 29, 2018....


CEO Compensation Analysis

Compensation vs Market: Travis's total compensation ($USD16.05M) is above average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Travis's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: FANG's management team is considered experienced (2.1 years average tenure).


Board Members

Experienced Board: FANG's board of directors are considered experienced (8.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: FANG insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.3%.


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$12.249b
  • Shares outstanding: 180.98m
  • Website: https://www.diamondbackenergy.com

Number of Employees


Location

  • Diamondback Energy, Inc.
  • 500 West Texas Avenue
  • Suite 1200
  • Midland
  • Texas
  • 79701
  • United States

Listings


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 th...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/17 23:07
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.