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FANG

Diamondback Energy NasdaqGS:FANG Stock Report

Last Price

US$129.80

Market Cap

US$21.8b

7D

-1.9%

1Y

40.1%

Updated

28 Jun, 2022

Data

Company Financials +
FANG fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health2/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Diamondback Energy
Historical stock prices
Current Share PriceUS$129.80
52 Week HighUS$162.24
52 Week LowUS$65.93
Beta2.18
1 Month Change-14.97%
3 Month Change-6.72%
1 Year Change40.14%
3 Year Change24.60%
5 Year Change43.66%
Change since IPO641.71%

Recent News & Updates

May 26

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.

Shareholder Returns

FANGUS Oil and GasUS Market
7D-1.9%1.4%6.3%
1Y40.1%34.2%-18.8%

Return vs Industry: FANG exceeded the US Oil and Gas industry which returned 26.3% over the past year.

Return vs Market: FANG exceeded the US Market which returned -18.4% over the past year.

Price Volatility

Is FANG's price volatile compared to industry and market?
FANG volatility
FANG Average Weekly Movement7.9%
Oil and Gas Industry Average Movement8.6%
Market Average Movement8.1%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
2007870Travis Sticehttps://www.diamondbackenergy.com

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

How do Diamondback Energy's earnings and revenue compare to its market cap?
FANG fundamental statistics
Market CapUS$21.84b
Earnings (TTM)US$2.74b
Revenue (TTM)US$7.61b

8.3x

P/E Ratio

3.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FANG income statement (TTM)
RevenueUS$7.61b
Cost of RevenueUS$935.00m
Gross ProfitUS$6.67b
Other ExpensesUS$3.93b
EarningsUS$2.74b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)15.61
Gross Margin87.71%
Net Profit Margin36.04%
Debt/Equity Ratio42.2%

How did FANG perform over the long term?

See historical performance and comparison

Dividends

9.4%

Current Dividend Yield

30%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is FANG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

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

  • PEG Ratio

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.

FANG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.8x
Enterprise Value/EBITDA5.5x
PEG Ratio-0.5x

Price to Earnings Ratio vs Peers

How does FANG's PE Ratio compare to its peers?

FANG PE Ratio vs Peers
The above table shows the PE ratio for FANG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.5x
CTRA Coterra Energy
13.3x-17.2%US$21.8b
CLR Continental Resources
12x-14.5%US$24.0b
DVN Devon Energy
10.8x-12.1%US$38.2b
PXD Pioneer Natural Resources
13.3x-14.6%US$55.7b
FANG Diamondback Energy
8x-15.9%US$21.8b

Price-To-Earnings vs Peers: FANG is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (12.4x).


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 (8x) compared to the US Oil and Gas industry average (11.6x)


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.

FANG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.3x
Fair PE Ratio13x

Price-To-Earnings vs Fair Ratio: FANG is good value based on its Price-To-Earnings Ratio (8x) 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 ($124.39) is trading below our estimate of fair value ($203.18)

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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Future Growth

How is Diamondback Energy forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-15.9%

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%).


Discover growth companies

Past Performance

How has Diamondback Energy performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-20.2%

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.


Discover strong past performing companies

Financial Health

How is Diamondback Energy's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


9.40%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FANG's dividend (9.81%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: FANG's dividend (9.81%) is in the top 25% of dividend payers in the US market (4.23%)


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.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Travis Stice (59 yo)

10.42yrs

Tenure

US$13,839,995

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 ($USD13.84M) is about average for companies of similar size in the US market ($USD13.43M).

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 (3.3 years average tenure).


Board Members

Experienced Board: FANG's board of directors are considered experienced (9.6 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Diamondback Energy, Inc.'s 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
  • Implied Market Cap: US$21.842b
  • Shares outstanding: 175.59m
  • Website: https://www.diamondbackenergy.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.