FANG Stock Overview
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.
Diamondback Energy Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$129.80|
|52 Week High||US$162.24|
|52 Week Low||US$65.93|
|1 Month Change||-14.97%|
|3 Month Change||-6.72%|
|1 Year Change||40.14%|
|3 Year Change||24.60%|
|5 Year Change||43.66%|
|Change since IPO||641.71%|
Recent News & Updates
Diamondback Energy: Profiting Off High Oil Prices But Still Remarkably Undervalued
Diamondback Energy is one of the largest and most prolific independent operators in the resource-rich Permian Basin. The company boasts substantial reserves that position it quite well for long-term operations. The company has been focusing its attention on maximizing its free cash flow, and this has allowed it to provide considerable rewards for its shareholders. The company boasts a very strong balance sheet without a large amount of debt. The stock appears to be substantially undervalued relative to the company's forward EPS growth.
|FANG||US Oil and Gas||US Market|
Return vs Industry: FANG exceeded the US Oil and Gas industry which returned 34.2% over the past year.
Return vs Market: FANG exceeded the US Market which returned -18.8% over the past year.
|FANG Average Weekly Movement||7.9%|
|Oil and Gas Industry Average Movement||8.8%|
|Market Average Movement||8.0%|
|10% most volatile stocks in US Market||16.8%|
|10% least volatile stocks in US Market||3.2%|
Stable Share Price: FANG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.
Volatility Over Time: FANG's weekly volatility (8%) has been stable over the past year.
About the Company
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 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, 2021, the company’s total acreage position was approximately 524,700 gross acres in the Permian Basin; and estimated proved oil and natural gas reserves were 1,788,991 thousand barrels of crude oil equivalent.
Diamondback Energy Fundamentals Summary
|FANG fundamental statistics|
Is FANG overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|FANG income statement (TTM)|
|Cost of Revenue||US$935.00m|
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
|Earnings per share (EPS)||15.61|
|Net Profit Margin||36.04%|
How did FANG perform over the long term?See historical performance and comparison
9.4%Current Dividend Yield
Is FANG undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 5/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for FANG?
Other financial metrics that can be useful for relative valuation.
|What is FANG's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does FANG's PE Ratio compare to its peers?
|FANG PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
CTRA Coterra Energy
CLR Continental Resources
DVN Devon Energy
PXD Pioneer Natural Resources
FANG Diamondback Energy
Price-To-Earnings vs Peers: FANG is good value based on its Price-To-Earnings Ratio (8.3x) compared to the peer average (12.6x).
Price to Earnings Ratio vs Industry
How does FANG's PE Ratio compare vs other companies in the US Oil and Gas Industry?
Price-To-Earnings vs Industry: FANG is good value based on its Price-To-Earnings Ratio (8.3x) compared to the US Oil and Gas industry average (11.9x)
Price to Earnings Ratio vs Fair Ratio
What is FANG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||8.3x|
|Fair PE Ratio||13x|
Price-To-Earnings vs Fair Ratio: FANG is good value based on its Price-To-Earnings Ratio (8.3x) compared to the estimated Fair Price-To-Earnings Ratio (13x).
Share Price vs Fair Value
What is the Fair Price of FANG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: FANG ($129.8) is trading below our estimate of fair value ($202.86)
Significantly Below Fair Value: FANG is trading below fair value by more than 20%.
Price to Earnings Growth Ratio
PEG Ratio: FANG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
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How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score0/6
Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FANG's earnings are forecast to decline over the next 3 years (-15.9% per year).
Earnings vs Market: FANG's earnings are forecast to decline over the next 3 years (-15.9% per year).
High Growth Earnings: FANG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: FANG's revenue is expected to decline over the next 3 years (-10.9% per year).
High Growth Revenue: FANG's revenue is forecast to decline over the next 3 years (-10.9% 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 (15.8%).
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How has Diamondback Energy performed over the past 5 years?
Past Performance Score4/6
Past Performance Score 4/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FANG has high quality earnings.
Growing Profit Margin: FANG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: FANG has become profitable over the past 5 years, growing earnings by -20.2% per year.
Accelerating Growth: FANG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: FANG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (98.5%).
Return on Equity
High ROE: FANG's Return on Equity (20.6%) is considered high.
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How is Diamondback Energy's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
Financial Position Analysis
Short Term Liabilities: FANG's short term assets ($1.3B) do not cover its short term liabilities ($1.9B).
Long Term Liabilities: FANG's short term assets ($1.3B) do not cover its long term liabilities ($7.6B).
Debt to Equity History and Analysis
Debt Level: FANG's net debt to equity ratio (41.1%) is considered high.
Reducing Debt: FANG's debt to equity ratio has increased from 19.3% to 42.2% over the past 5 years.
Debt Coverage: FANG's debt is well covered by operating cash flow (78.2%).
Interest Coverage: FANG's interest payments on its debt are well covered by EBIT (21.1x coverage).
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What is Diamondback Energy current dividend yield, its reliability and sustainability?
Dividend Score 4/6
Future Dividend Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FANG's dividend (9.4%) is higher than the bottom 25% of dividend payers in the US market (1.57%).
High Dividend: FANG's dividend (9.4%) is in the top 25% of dividend payers in the US market (4.25%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, FANG has been paying a dividend for less than 10 years.
Growing Dividend: FANG's dividend payments have increased, but the company has only paid a dividend for 4 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (30.2%), FANG's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (98.2%), FANG's dividend payments are not well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Travis Stice (59 yo)
Mr. Travis D. Stice is Chief Executive Officer and Director at QEP Resources, Inc. since March 17, 2021. He has been the Chief Executive Officer and Director of Energen Corporation since November 29, 2018....
CEO Compensation Analysis
Compensation vs Market: Travis's total compensation ($USD13.84M) is about average for companies of similar size in the US market ($USD13.41M).
Compensation vs Earnings: Travis's compensation has been consistent with company performance over the past year.
Experienced Management: FANG's management team is considered experienced (3.3 years average tenure).
Experienced Board: FANG's board of directors are considered experienced (9.6 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Diamondback Energy, Inc.'s employee growth, exchange listings and data sources
- Name: Diamondback Energy, Inc.
- Ticker: FANG
- Exchange: NasdaqGS
- Founded: 2007
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$22.792b
- Shares outstanding: 175.59m
- Website: https://www.diamondbackenergy.com
Number of Employees
- Diamondback Energy, Inc.
- 500 West Texas Avenue
- Suite 1200
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/06/28 00:00|
|End of Day Share Price||2022/06/28 00:00|
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.