NasdaqGS:FANG

Stock Analysis Report

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

Fundamentals

Reasonable growth potential 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


Market Performance


7 Day Return

-2.5%

FANG

-1.7%

US Oil and Gas

0.5%

US Market


1 Year Return

-30.5%

FANG

-21.6%

US Oil and Gas

6.8%

US Market

Return vs Industry: FANG underperformed the US Oil and Gas industry which returned -21.6% over the past year.

Return vs Market: FANG underperformed the US Market which returned 6.8% over the past year.


Shareholder returns

FANGIndustryMarket
7 Day-2.5%-1.7%0.5%
30 Day-14.5%-6.4%-0.8%
90 Day-20.8%-9.4%-0.9%
1 Year-30.1%-30.5%-18.7%-21.6%9.2%6.8%
3 Year-14.4%-15.1%-8.2%-16.4%45.6%36.2%
5 Year23.1%22.1%-24.8%-35.2%63.2%45.4%

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?

27.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FANG ($82.74) is trading below our estimate of fair value ($113.34)

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 poor value based on its PE Ratio (13.9x) compared to the Oil and Gas industry average (9.8x).

PE vs Market: FANG is good value based on its PE Ratio (13.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: FANG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: FANG is overvalued based on its PB Ratio (1x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

22.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FANG's forecast earnings growth (22.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FANG's earnings (22.3% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FANG's revenue (14.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: FANG's revenue (14.1% 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 (9.1%).


Next Steps

Past Performance

How has Diamondback Energy performed over the past 5 years?

49.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FANG's earnings have grown significantly by 49.2% per year over the past 5 years.

Accelerating Growth: FANG's earnings growth over the past year (44.4%) is below its 5-year average (49.2% per year).

Earnings vs Industry: FANG earnings growth over the past year (44.4%) exceeded the Oil and Gas industry 22.6%.


Return on Equity

High ROE: FANG's Return on Equity (5.6%) is considered low.


Return on Assets

ROA vs Industry: FANG's Return on Assets is below or equal to the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: FANG has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Diamondback Energy's financial position?


Financial Position Analysis

Short Term Liabilities: FANG's short term assets ($972.0M) do not cover its short term liabilities ($1.2B)

Long Term Liabilities: FANG's short term assets (972.0M) do not cover its long term liabilities (6.5B)


Debt to Equity History and Analysis

Debt Level: FANG's debt to equity ratio (28.9%) is considered satisfactory

Reducing Debt: FANG's debt to equity ratio has reduced from 39.5% to 28.9% over the past 5 years.

Debt Coverage: FANG's debt is well covered by operating cash flow (41.2%).

Interest Coverage: FANG's interest payments on its debt are well covered by EBIT (8.2x 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?

0.91%

Current Dividend Yield


Dividend Yield vs Market

company0.9%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years1.0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: FANG's dividend (0.91%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: FANG's dividend (0.91%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (10.5%), 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 (7.1% payout ratio).


Next Steps

Management

What is the CEO of Diamondback Energy's salary, the management and board of directors tenure and is there insider trading?

0.7yrs

Average management tenure


CEO

Travis Stice (57yo)

7.8yrs

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 ($USD10.55M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Travis's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.7yrs

Average Tenure

49yo

Average Age

Experienced Management: FANG's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

61yo

Average Age

Experienced Board: FANG's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: FANG insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$204,49318 Sep 19
M B H Investments Ltd
EntityCompany
Shares2,000
Max PriceUS$102.25
SellUS$309,62018 Sep 19
Randall Holder
EntityIndividual
Shares3,000
Max PriceUS$103.21
SellUS$312,75918 Sep 19
Russell Pantermuehl
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Engineer
Shares3,000
Max PriceUS$104.25
SellUS$104,75018 Sep 19
Michael Cross
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$104.75
SellUS$501,26411 Sep 19
Russell Pantermuehl
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Engineer
Shares5,000
Max PriceUS$100.25
SellUS$201,55122 Aug 19
Russell Pantermuehl
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Engineer
Shares2,000
Max PriceUS$100.78
SellUS$300,00020 Aug 19
Randall Holder
EntityIndividual
Shares3,000
Max PriceUS$100.00
BuyUS$399,96812 Aug 19
Travis Stice
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares4,186
Max PriceUS$95.55
SellUS$161,20024 Jun 19
Kaes Van’t Hof
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP of Business Development
Shares1,500
Max PriceUS$107.47
SellUS$536,41624 Jun 19
Russell Pantermuehl
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Engineer
Shares5,000
Max PriceUS$107.28
SellUS$560,89722 May 19
Russell Pantermuehl
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Engineer
Shares5,000
Max PriceUS$112.18
SellUS$416,51119 Mar 19
Randall Holder
EntityIndividual
Shares4,000
Max PriceUS$104.13
SellUS$36,54418 Mar 19
Jennifer Soliman
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief Human Resources Officer
Shares350
Max PriceUS$104.41
SellUS$173,09414 Mar 19
Kaes Van’t Hof
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP of Business Development
Shares1,700
Max PriceUS$101.82
BuyUS$505,35212 Mar 19
M B H Investments Ltd
EntityCompany
Shares5,313
Max PriceUS$95.12
SellUS$89,91321 Dec 18
Kaes Van’t Hof
EntityIndividual
Role
Chief Financial Officer
CFO & Executive VP of Business Development
Shares1,000
Max PriceUS$89.91

Ownership Breakdown


Management Team

  • Travis Stice (57yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: US$10.55m
  • Adam Lawlis

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tracy Dick (49yo)

    Chief Accounting Officer

    • Tenure: 0.6yrs
    • Compensation: US$3.08m
  • Russell Pantermuehl (59yo)

    Executive VP & Chief Engineer

    • Tenure: 2.8yrs
    • Compensation: US$5.17m
  • P. Zmigrosky (40yo)

    Executive VP

    • Tenure: 0.7yrs
  • Jennifer Soliman (48yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Kaes Van’t Hof (32yo)

    CFO & Executive VP of Business Development

    • Tenure: 0.6yrs
  • Tom Hawkins (65yo)

    Executive Vice President of Land

    • Tenure: 2.6yrs
  • David Cannon

    Senior Vice President of Geoscience and Technology

    • Tenure: 0.6yrs
  • Daniel Wesson

    Senior Vice President of Operations

    • Tenure: 0.08yrs

Board Members

  • David Houston (66yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$275.02k
  • Michael Cross (67yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$275.02k
  • Steve West (59yo)

    Independent Chairman of the Board

    • Tenure: 7yrs
    • Compensation: US$380.02k
  • Mark Plaumann (63yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$275.02k
  • Melanie Trent (54yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$243.77k
  • Travis Stice (57yo)

    CEO & Director

    • Tenure: 7.8yrs
    • Compensation: US$10.55m

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$13.490b
  • Shares outstanding: 163.04m
  • Website: https://www.diamondbackenergy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FANGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2012
7DBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2012
FANG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2012

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 Analysis2019/10/22 00:33
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.