Diamondback Energy
Market Cap
US$12.0b
Last Updated
2020/02/18 00:49 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.
Snowflake Analysis
Good value with adequate 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
3.4%
FANG
0.9%
US Oil and Gas
0.9%
US Market
1 Year Return
-28.5%
FANG
-18.7%
US Oil and Gas
20.0%
US Market
Return vs Industry: FANG underperformed the US Oil and Gas industry which returned -18.7% over the past year.
Return vs Market: FANG underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| FANG | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.4% | 0.9% | 0.9% |
| 30 Day | -16.3% | -9.4% | 1.4% |
| 90 Day | -0.4% | -5.1% | 8.8% |
| 1 Year | -27.9%-28.5% | -15.6%-18.7% | 22.5%20.0% |
| 3 Year | -29.1%-29.8% | -13.3%-21.4% | 49.9%40.3% |
| 5 Year | 2.3%1.2% | -21.5%-33.1% | 73.2%54.1% |
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 day ago | Simply Wall St
Who Has Been Selling Diamondback Energy, Inc. (NASDAQ:FANG) Shares?2 weeks ago | Simply Wall St
Three Things You Should Check Before Buying Diamondback Energy, Inc. (NASDAQ:FANG) For Its Dividend3 weeks ago | Simply Wall St
Read This Before Judging Diamondback Energy, Inc.'s (NASDAQ:FANG) ROEValuation
Is Diamondback Energy undervalued compared to its fair value and its price relative to the market?
22.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FANG ($74.97) is trading below our estimate of fair value ($96.18)
Significantly Below Fair Value: FANG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FANG is poor value based on its PE Ratio (11.1x) compared to the Oil and Gas industry average (9x).
PE vs Market: FANG is good value based on its PE Ratio (11.1x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: FANG is good value based on its PEG Ratio (0.7x)
Price to Book Ratio
PB vs Industry: FANG is overvalued based on its PB Ratio (0.9x) compared to the US Oil and Gas industry average (0.8x).
Next Steps
Future Growth
How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
16.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FANG's forecast earnings growth (16.6% per year) is above the savings rate (1.7%).
Earnings vs Market: FANG's earnings (16.6% per year) are forecast to grow faster than the US market (14.6% per year).
High Growth Earnings: FANG's earnings are forecast to grow, but not significantly.
Revenue vs Market: FANG's revenue (11.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: FANG's revenue (11.9% 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 (9.4%).
Next Steps
Past Performance
How has Diamondback Energy performed over the past 5 years?
53.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FANG has a high level of non-cash earnings.
Growing Profit Margin: FANG's current net profit margins (30.2%) are lower than last year (35.3%).
Past Earnings Growth Analysis
Earnings Trend: FANG's earnings have grown significantly by 53.6% per year over the past 5 years.
Accelerating Growth: FANG's earnings growth over the past year (58.2%) exceeds its 5-year average (53.6% per year).
Earnings vs Industry: FANG earnings growth over the past year (58.2%) exceeded the Oil and Gas industry -10.9%.
Return on Equity
High ROE: FANG's Return on Equity (7.1%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Diamondback Energy's financial position?
Financial Position Analysis
Short Term Liabilities: FANG's short term assets ($845.0M) do not cover its short term liabilities ($1.2B).
Long Term Liabilities: FANG's short term assets ($845.0M) do not cover its long term liabilities ($6.9B).
Debt to Equity History and Analysis
Debt Level: FANG's debt to equity ratio (30.7%) is considered satisfactory.
Reducing Debt: FANG's debt to equity ratio has reduced from 31.3% to 30.7% over the past 5 years.
Debt Coverage: FANG's debt is well covered by operating cash flow (47.5%).
Interest Coverage: FANG's interest payments on its debt are well covered by EBIT (10.1x coverage).
Balance Sheet
Inventory Level: FANG has a high level of physical assets or inventory.
Debt Coverage by Assets: FANG's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is Diamondback Energy's current dividend yield, its reliability and sustainability?
1.00%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: FANG's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: FANG's dividend (1%) is low compared to the top 25% of dividend payers in the US market (3.69%).
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: With its low payout ratio (10.2%), FANG's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FANG's dividends in 3 years are forecast to be thoroughly covered by earnings (7.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Travis Stice (57yo)
8.1yrs
Tenure
US$10,549,163
Compensation
Mr. Travis D. Stice has been Chief Executive Officer and Director of Energen Corporation since November 29, 2018. Mr. Stice serves as the President and Chief Executive Officer of Viper Energy Partners GP L ...
CEO Compensation Analysis
Compensation vs Market: Travis's total compensation ($USD10.55M) is about average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Travis's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.1yrs | US$10.55m | 0.23% $28.1m | |
| Chief Accounting Officer | 0.9yrs | US$3.08m | 0.020% $2.5m | |
| Executive VP & Chief Engineer | 3.1yrs | US$5.17m | 0.055% $6.6m | |
| CFO & Executive VP of Business Development | 0.9yrs | no data | 0.0099% $1.2m | |
| Senior Vice President of Operations | 0.4yrs | no data | no data | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Executive VP | 1yrs | no data | 0.0011% $128.7k | |
| Executive VP & Chief Human Resources Officer | 2.1yrs | no data | 0.00052% $62.5k | |
| Executive Vice President of Land | 2.9yrs | no data | 0.0059% $714.5k | |
| Senior Vice President of Geoscience and Technology | 0.9yrs | no data | no data |
1.0yrs
Average Tenure
49yo
Average Age
Experienced Management: FANG's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 8.1yrs | US$10.55m | 0.23% $28.1m | |
| Lead Director | 0yrs | US$275.02k | 0.0059% $714.5k | |
| Independent Director | 7.3yrs | US$275.02k | 0.0094% $1.1m | |
| Independent Chairman of the Board | 7.3yrs | US$380.02k | 0.0055% $666.4k | |
| Independent Director | 7.3yrs | US$275.02k | no data | |
| Independent Director | 1.8yrs | US$243.77k | 0.00098% $117.9k |
7.3yrs
Average Tenure
61yo
Average Age
Experienced Board: FANG's board of directors are considered experienced (7.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.2%.
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$12.029b
- Shares outstanding: 160.44m
- 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, 2018, the company’s net acreage position was approximately 461,218 acres in the Permian Basin; and estimated proved oil and natural gas reserves were 992,001 thousand barrels of crude oil equivalent. It also held working interests in 7,279 gross producing wells, as well as royalty interests in 2,645 additional wells. In addition, the company, through its subsidiary, Viper Energy Partners LP, owns mineral interests in approximately 532,295 gross acres and 14,841 net royalty acres in the Permian Basin and Eagle Ford Shale. 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 | 2020/02/18 00:49 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.