Diamondback Energy
Market Cap
US$14.0b
Last Updated
2021/07/31 06:28 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
Rewards
Risk Analysis
Snowflake Analysis
Fair value with moderate growth potential.
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 +/- 7% a week.
Volatility Over Time: FANG's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-1.4%
FANG
1.0%
US Oil and Gas
-0.5%
US Market
1 Year Return
93.5%
FANG
41.7%
US Oil and Gas
35.9%
US Market
Return vs Industry: FANG exceeded the US Oil and Gas industry which returned 41.7% over the past year.
Return vs Market: FANG exceeded the US Market which returned 35.9% over the past year.
Shareholder returns
| FANG | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | 1.0% | -0.5% |
| 30 Day | -22.6% | -8.2% | 0.3% |
| 90 Day | -5.6% | 1.7% | 3.1% |
| 1 Year | 99.6%93.5% | 50.4%41.7% | 38.0%35.9% |
| 3 Year | -37.7%-41.0% | -19.5%-31.0% | 62.9%52.7% |
| 5 Year | -12.2%-17.0% | -5.3%-24.0% | 121.7%97.3% |
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
3 weeks ago | Simply Wall St
If You Had Bought Diamondback Energy (NASDAQ:FANG) Shares A Year Ago You'd Have Earned 135% Returns1 month ago | Simply Wall St
Diamondback Energy (NASDAQ:FANG) Use Of Debt Could Be Considered Risky2 months ago | Simply Wall St
Here's Why We're Wary Of Buying Diamondback Energy's (NASDAQ:FANG) For Its Upcoming DividendValuation
Is Diamondback Energy undervalued compared to its fair value and its price relative to the market?
33.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FANG ($77.13) is trading below our estimate of fair value ($115.74)
Significantly Below Fair Value: FANG is trading below fair value by more than 20%.
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 is good value based on its PB Ratio (1.3x) compared to the US Oil and Gas industry average (1.7x).
Future Growth
How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?
11.5%
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 (3.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: FANG's revenue (3.9% 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 (17.6%).
Past Performance
How has Diamondback Energy performed over the past 5 years?
-53.1%
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 53.1% 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 (-42.2%).
Return on Equity
High ROE: FANG has a negative Return on Equity (-34.75%), 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 ($851.0M) do not cover its short term liabilities ($1.9B).
Long Term Liabilities: FANG's short term assets ($851.0M) do not cover its long term liabilities ($8.5B).
Debt to Equity History and Analysis
Debt Level: FANG's debt to equity ratio (65.6%) is considered high.
Reducing Debt: FANG's debt to equity ratio has increased from 20.8% to 65.6% 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, due to free cash flow being positive and growing by 4.8% per year.
Dividend
What is Diamondback Energy current dividend yield, its reliability and sustainability?
2.07%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FANG's dividend (2.07%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: FANG's dividend (2.07%) is low compared to the top 25% of dividend payers in the US market (3.54%).
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 thoroughly covered by earnings (14.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Travis Stice (59 yo)
9.5yrs
Tenure
US$10,544,614
Compensation
Mr. Travis D. Stice is Chief Executive Officer and Director at QEP Resources, Inc. since March 17, 2021. He has been the Chief Executive Officer and Director of Energen Corporation since November 29, 2018....
CEO Compensation Analysis
Compensation vs Market: Travis's total compensation ($USD10.54M) is about average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Travis's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: FANG's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: FANG's board of directors are considered experienced (8.6 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 14.7%.
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$13.960b
- Shares outstanding: 181.00m
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 06:28 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.