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Diamondback Energy

Nasdaq:FANG
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FANG
Nasdaq
$17B
Market Cap
  1. Home
  2. US
  3. Energy
Company description

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. The last earnings update was 74 days ago. More info.


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FANG Share Price and Events
7 Day Returns
-0.6%
NasdaqGS:FANG
-2%
US Oil and Gas
-1.2%
US Market
1 Year Returns
-22.5%
NasdaqGS:FANG
-16.8%
US Oil and Gas
3.3%
US Market
FANG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Diamondback Energy (FANG) -0.6% -5.7% -6.8% -22.5% 20.5% 20.9%
US Oil and Gas -2% -1.8% -9.4% -16.8% -4.1% -37.9%
US Market -1.2% 0.8% 0.9% 3.3% 35.9% 41.7%
1 Year Return vs Industry and Market
  • FANG underperformed the Oil and Gas industry which returned -16.8% over the past year.
  • FANG underperformed the Market in United States of America which returned 3.3% over the past year.
Price Volatility
FANG
Industry
5yr Volatility vs Market

Value

 Is Diamondback Energy undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Diamondback Energy to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Diamondback Energy.

NasdaqGS:FANG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FANG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Oil and Gas Unlevered Beta Simply Wall St/ S&P Global 0.92
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.921 (1 + (1- 21%) (27.56%))
1.081
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.08
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.081 * 5.96%)
9.18%

Discounted Cash Flow Calculation for NasdaqGS:FANG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Diamondback Energy is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:FANG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.18%)
2020 994.13 Analyst x13 910.58
2021 1,730.97 Analyst x5 1,452.24
2022 1,256.55 Analyst x2 965.61
2023 1,831.30 Analyst x1 1,289.01
2024 2,026.11 Est @ 10.64% 1,306.27
2025 2,193.58 Est @ 8.27% 1,295.38
2026 2,338.46 Est @ 6.6% 1,264.88
2027 2,465.72 Est @ 5.44% 1,221.63
2028 2,579.85 Est @ 4.63% 1,170.75
2029 2,684.57 Est @ 4.06% 1,115.88
Present value of next 10 years cash flows $11,992.23
NasdaqGS:FANG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $2,684.57 × (1 + 2.73%) ÷ (9.18% – 2.73%)
$42,786.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $42,786.38 ÷ (1 + 9.18%)10
$17,784.75
NasdaqGS:FANG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $11,992.23 + $17,784.75
$29,776.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $29,776.98 / 164.67
$180.83
NasdaqGS:FANG Discount to Share Price
Calculation Result
Value per share (USD) From above. $180.83
Current discount Discount to share price of $103.49
= -1 x ($103.49 - $180.83) / $180.83
42.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Diamondback Energy is available for.
Intrinsic value
43%
Share price is $103.49 vs Future cash flow value of $180.83
Current Discount Checks
For Diamondback Energy to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Diamondback Energy's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Diamondback Energy's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Diamondback Energy's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Diamondback Energy's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FANG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $5.72
NasdaqGS:FANG Share Price ** NasdaqGS (2019-07-22) in USD $103.49
United States of America Oil and Gas Industry PE Ratio Median Figure of 101 Publicly-Listed Oil and Gas Companies 12.61x
United States of America Market PE Ratio Median Figure of 3,082 Publicly-Listed Companies 17.86x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Diamondback Energy.

NasdaqGS:FANG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FANG Share Price ÷ EPS (both in USD)

= 103.49 ÷ 5.72

18.11x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diamondback Energy is overvalued based on earnings compared to the US Oil and Gas industry average.
  • Diamondback Energy is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Diamondback Energy's expected growth come at a high price?
Raw Data
NasdaqGS:FANG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.11x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
27.9%per year
United States of America Oil and Gas Industry PEG Ratio Median Figure of 79 Publicly-Listed Oil and Gas Companies 0.39x
United States of America Market PEG Ratio Median Figure of 2,119 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

NasdaqGS:FANG PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.11x ÷ 27.9%

0.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diamondback Energy is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Diamondback Energy's assets?
Raw Data
NasdaqGS:FANG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $83.67
NasdaqGS:FANG Share Price * NasdaqGS (2019-07-22) in USD $103.49
United States of America Oil and Gas Industry PB Ratio Median Figure of 196 Publicly-Listed Oil and Gas Companies 1.06x
United States of America Market PB Ratio Median Figure of 5,248 Publicly-Listed Companies 1.79x
NasdaqGS:FANG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FANG Share Price ÷ Book Value per Share (both in USD)

= 103.49 ÷ 83.67

1.24x

* Primary Listing of Diamondback Energy.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diamondback Energy is overvalued based on assets compared to the US Oil and Gas industry average.
X
Value checks
We assess Diamondback Energy's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Diamondback Energy has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Diamondback Energy expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Diamondback Energy expected to grow at an attractive rate?
  • Diamondback Energy's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Diamondback Energy's earnings growth is expected to exceed the United States of America market average.
  • Diamondback Energy's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FANG Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:FANG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 27.9%
NasdaqGS:FANG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 17.5%
United States of America Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average 12.8%
United States of America Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 4.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:FANG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FANG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 7,523 6,687 3,142 1
2022-12-31 7,143 5,928 2,749 1
2021-12-31 6,076 4,938 2,105 8
2020-12-31 5,335 4,026 1,822 16
2019-12-31 4,198 3,069 1,031 16
NasdaqGS:FANG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,548 1,603 693
2018-12-31 2,164 1,565 846
2018-09-30 1,924 1,402 654
2018-06-30 1,691 1,258 570
2018-03-31 1,437 1,052 509
2017-12-31 1,193 889 482
2017-09-30 988 744 393
2017-06-30 830 605 318
2017-03-31 673 435 4
2016-12-31 527 332 -165
2016-09-30 456 303 -378
2016-06-30 426 338 -533

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Diamondback Energy's earnings are expected to grow significantly at over 20% yearly.
  • Diamondback Energy's revenue is expected to grow by 17.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FANG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Diamondback Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FANG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 20.52 24.16 16.87 2.00
2022-12-31 17.86 19.67 16.04 2.00
2021-12-31 13.10 15.31 10.73 8.00
2020-12-31 11.30 21.77 8.96 16.00
2019-12-31 6.42 8.36 5.27 12.00
NasdaqGS:FANG Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 5.72
2018-12-31 8.08
2018-09-30 6.60
2018-06-30 5.76
2018-03-31 5.15
2017-12-31 4.95
2017-09-30 4.25
2017-06-30 3.65
2017-03-31 0.05
2016-12-31 -2.20
2016-09-30 -5.27
2016-06-30 -7.75

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Diamondback Energy is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Diamondback Energy's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Diamondback Energy has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Diamondback Energy performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Diamondback Energy's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Diamondback Energy has delivered over 20% year on year earnings growth in the past 5 years.
  • Diamondback Energy's 1-year earnings growth is less than its 5-year average (36.1% vs 44.9%)
  • Diamondback Energy's earnings growth has exceeded the US Oil and Gas industry average in the past year (36.1% vs 27.5%).
Earnings and Revenue History
Diamondback Energy's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Diamondback Energy Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FANG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,548.03 692.67 75.55
2018-12-31 2,164.03 845.67 64.55
2018-09-30 1,924.21 653.76 55.86
2018-06-30 1,690.79 569.73 53.56
2018-03-31 1,436.72 508.99 50.93
2017-12-31 1,193.35 482.26 48.67
2017-09-30 988.42 393.30 47.73
2017-06-30 829.62 318.05 45.75
2017-03-31 673.25 4.15 43.38
2016-12-31 527.11 -165.03 42.62
2016-09-30 456.42 -378.04 40.93
2016-06-30 426.23 -532.59 38.55
2016-03-31 432.81 -589.39 36.71
2015-12-31 446.73 -550.63 31.97
2015-09-30 463.99 -264.55 29.73
2015-06-30 491.17 -64.03 28.70
2015-03-31 499.12 176.02 24.95
2014-12-31 495.72 193.76 21.27
2014-09-30 440.04 115.21 18.81
2014-06-30 358.71 86.06 14.44
2014-03-31 277.10 72.78 13.12
2013-12-31 208.00 54.59 11.04
2013-09-30 157.86 30.74 10.40
2013-06-30 116.88 16.60 9.93
2013-03-31 88.32 15.75 8.96
2012-12-31 74.96 11.83 10.38
2012-09-30 63.32 6.76 5.97

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Diamondback Energy has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Diamondback Energy used its assets less efficiently than the US Oil and Gas industry average last year based on Return on Assets.
  • Diamondback Energy has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Diamondback Energy's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Diamondback Energy has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Diamondback Energy's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Diamondback Energy's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Diamondback Energy's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Diamondback Energy's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Diamondback Energy's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Diamondback Energy Company Filings, last reported 3 months ago.

NasdaqGS:FANG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 14,514.00 4,670.00 126.00
2018-12-31 14,166.26 4,464.34 214.52
2018-09-30 6,429.80 2,332.36 508.45
2018-06-30 6,012.47 1,967.07 113.93
2018-03-31 5,735.18 1,701.91 72.49
2017-12-31 5,581.74 1,477.35 112.45
2017-09-30 5,586.12 1,256.39 30.21
2017-06-30 5,286.93 1,151.52 16.59
2017-03-31 5,119.36 985.79 37.44
2016-12-31 4,018.29 1,105.91 1,666.57
2016-09-30 2,835.30 497.81 167.27
2016-06-30 2,186.55 494.48 218.79
2016-03-31 2,337.06 485.64 235.81
2015-12-31 2,108.97 487.81 20.12
2015-09-30 2,289.72 489.00 43.83
2015-06-30 2,243.62 718.00 44.68
2015-03-31 2,116.52 611.58 31.64
2014-12-31 1,985.21 673.50 30.18
2014-09-30 1,885.85 590.00 40.64
2014-06-30 1,252.34 496.00 36.99
2014-03-31 1,082.91 587.00 25.31
2013-12-31 845.54 460.00 15.56
2013-09-30 822.94 450.23 53.10
2013-06-30 627.61 0.27 81.90
2013-03-31 468.03 36.80 5.52
2012-12-31 462.07 0.34 26.36
2012-09-30 124.60 130.41 1.28
  • Diamondback Energy's level of debt (32.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (54% vs 32.2% today).
  • Debt is well covered by operating cash flow (34.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess Diamondback Energy's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Diamondback Energy has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.72%
Current annual income from Diamondback Energy dividends. Estimated to be 0.79% next year.
If you bought $2,000 of Diamondback Energy shares you are expected to receive $14 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Diamondback Energy's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Diamondback Energy's dividend is below the markets top 25% of dividend payers in United States of America (3.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:FANG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
United States of America Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 67 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FANG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 1.00 4.00
2020-12-31 0.82 6.00
2019-12-31 0.71 7.00
NasdaqGS:FANG Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-05-07 0.750 0.717
2019-02-08 0.500 0.484
2018-11-07 0.500 0.491
2018-11-06 0.500 0.436
2018-08-09 0.500 0.405
2018-08-08 0.500 0.377
2018-05-08 0.500 0.393
2018-02-15 0.500 0.399
2018-02-13 0.500 0.414

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Diamondback Energy is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Diamondback Energy is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Diamondback Energy's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Diamondback Energy's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Diamondback Energy's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Diamondback Energy's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Diamondback Energy afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Diamondback Energy has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Travis Stice
COMPENSATION $10,549,163
AGE 57
TENURE AS CEO 7.5 years
CEO Bio

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 LLC, General Partner of Viper Energy Partners LP. Mr. Stice serves as the President and Chief Executive Officer of Diamondback E&P LLC. Mr. Stice is Chief Executive Officer and Director of Rattler Midstream GP LLC, general partner of Rattler Midstream Partners LP since July 2018. Mr. Stice has been the Chief Executive Officer of Diamondback Energy, Inc. and Diamondback O&G LLC since January 01, 2012 and served as its President and Chief Operating Officer since April 2011 until January 2012. Mr. Stice has been the Chief Executive Officer and President of Viper Energy Partners GP LLC since February 2014. He served as President and Chief Operating Officer of Windsor Energy, Inc. since April 2011. He served as President and Chief Operating Officer of Diamondback O&G LLC and Diamondback Energy, Inc. from April 2011 to January 2012. From November 2010 to April 2011, Mr. Stice served as a Production Manager of Apache Corporation. Mr. Stice served as the President and Chief Operating Officer of Diamondback Energy, Inc. from April 2011 to January 2012. Mr. Stice served as a Vice President of Midland for Laredo Petroleum, Inc. from September 2008 to September 2010. From April 2006 to August 2008, He has been a Director of Diamondback Energy, Inc. since November 2012. He has been a Director of Viper Energy Partners GP LLC since February 2014. Mr. Stice served as a Development Manager of Conoco Phillips/Burlington Resources Mid-Continent Business Unit, an oil and gas exploration company. He served at Burlington Resources from 1990 to 2006, in various positions of increasing responsibility, including his last assignment as General Manager of Engineering & Operations in Midland from January 2001 until March 2006. Mr. Stice has 33 years of industry experience in production operations, reservoir engineering, production engineering and unconventional oil and gas exploration and over 20 years of management experience. He started his career with Mobil Oil in 1985. He is a Registered Engineer in the State of Texas and is a 33-year member of the Society of Petroleum Engineers. Mr. Stice holds a BS in Petroleum Engineering from Texas A&M University.

CEO Compensation
  • Travis's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Travis's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Diamondback Energy management team in years:

1.5
Average Tenure
48.5
Average Age
  • The average tenure for the Diamondback Energy management team is less than 2 years, this suggests a new team.
Management Team

Travis Stice

TITLE
CEO & Director
COMPENSATION
$11M
AGE
57
TENURE
7.5 yrs

Mike Hollis

TITLE
President
COMPENSATION
$6M
AGE
44
TENURE
2.5 yrs

Tracy Dick

TITLE
Chief Accounting Officer
COMPENSATION
$3M
AGE
49
TENURE
0.3 yrs

Russell Pantermuehl

TITLE
Executive VP & Chief Engineer
COMPENSATION
$5M
AGE
59
TENURE
2.5 yrs

Kaes Van’t Hof

TITLE
CFO & Executive VP of Business Development
AGE
32
TENURE
0.3 yrs

Adam Lawlis

TITLE
Vice President of Investor Relations

P. Zmigrosky

TITLE
Executive VP
AGE
40
TENURE
0.4 yrs

Jennifer Soliman

TITLE
Executive VP & Chief Human Resources Officer
AGE
48
TENURE
1.5 yrs

Tom Hawkins

TITLE
Executive Vice President of Land
AGE
65
TENURE
2.3 yrs

David Cannon

TITLE
Senior Vice President of Geoscience and Technology
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Diamondback Energy board of directors in years:

6.7
Average Tenure
59
Average Age
  • The tenure for the Diamondback Energy board of directors is about average.
Board of Directors

Steve West

TITLE
Chairman of the Board
COMPENSATION
$380K
AGE
59
TENURE
6.8 yrs

Travis Stice

TITLE
CEO & Director
COMPENSATION
$11M
AGE
57
TENURE
6.7 yrs

Mike Hollis

TITLE
President
COMPENSATION
$6M
AGE
44
TENURE
1.3 yrs

Michael Cross

TITLE
Independent Director
COMPENSATION
$275K
AGE
67
TENURE
6.8 yrs

David Houston

TITLE
Lead Director
COMPENSATION
$275K
AGE
66

Mark Plaumann

TITLE
Independent Director
COMPENSATION
$275K
AGE
63
TENURE
6.8 yrs

Melanie Trent

TITLE
Independent Director
COMPENSATION
$244K
AGE
54
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • Diamondback Energy individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
24. Jun 19 Sell Kaes Van’t Hof Individual 20. Jun 19 20. Jun 19 -1,500 $107.47 $-161,200
24. Jun 19 Sell Russell Pantermuehl Individual 20. Jun 19 20. Jun 19 -5,000 $107.28 $-536,416
22. May 19 Sell Russell Pantermuehl Individual 21. May 19 21. May 19 -5,000 $112.18 $-560,897
19. Mar 19 Sell Randall Holder Individual 18. Mar 19 18. Mar 19 -4,000 $104.13 $-416,511
18. Mar 19 Sell Jennifer Soliman Individual 14. Mar 19 14. Mar 19 -350 $104.41 $-36,544
14. Mar 19 Sell Kaes Van’t Hof Individual 13. Mar 19 13. Mar 19 -1,700 $101.82 $-173,094
12. Mar 19 Buy M B H Investments Ltd Company 08. Mar 19 08. Mar 19 5,313 $95.12 $505,352
21. Dec 18 Sell Kaes Van’t Hof Individual 20. Dec 18 20. Dec 18 -1,000 $89.91 $-89,913
24. Sep 18 Sell Russell Pantermuehl Individual 20. Sep 18 20. Sep 18 -1,032 $129.30 $-133,438
24. Sep 18 Sell Paul Molnar Individual 20. Sep 18 20. Sep 18 -5,000 $127.64 $-638,183
20. Sep 18 Sell Russell Pantermuehl Individual 19. Sep 18 19. Sep 18 -2,000 $127.80 $-255,600
05. Sep 18 Sell Kaes Van’t Hof Individual 04. Sep 18 04. Sep 18 -140 $120.61 $-16,885
X
Management checks
We assess Diamondback Energy's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Diamondback Energy has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Diamondback Energy (NASDAQ:FANG) A Risky Investment?

NasdaqGS:FANG Historical Debt, July 22nd 2019 How Healthy Is Diamondback Energy's Balance Sheet? … Either way, since Diamondback Energy does have more debt than cash, it's worth keeping an eye on its balance sheet. … Our View Diamondback Energy's conversion of EBIT to free cash flow and net debt to EBITDA definitely weigh on it, in our esteem.

Simply Wall St -

These Factors Make Diamondback Energy, Inc. (NASDAQ:FANG) An Interesting Investment

Reasonable growth potential with adequate balance sheet FANG is an attractive stock for growth-seeking investors, with an expected earnings growth of 24% in the upcoming year. … This means that FANG’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. … NasdaqGS:FANG Past and Future Earnings, July 12th 2019 Next Steps: For Diamondback Energy, I've put together three relevant aspects you should further research: Historical Performance: What has FANG's returns been like over the past?

Simply Wall St -

Is Diamondback Energy, Inc.'s (NASDAQ:FANG) CEO Being Overpaid?

Check out our latest analysis for Diamondback Energy How Does Travis Stice's Compensation Compare With Similar Sized Companies? … Whatever your view on compensation, you might want to check if insiders are buying or selling Diamondback Energy shares (free trial). … If you want to buy a stock that is better than Diamondback Energy, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

Calculating The Intrinsic Value Of Diamondback Energy, Inc. (NASDAQ:FANG)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $272.38 $971.05 $1.75k $1.62k $1.55k $1.51k $1.49k $1.50k $1.51k $1.53k Growth Rate Estimate Source Analyst x11 Analyst x14 Analyst x4 Analyst x1 Est @ -4.67% Est @ -2.45% Est @ -0.9% Est @ 0.19% Est @ 0.95% Est @ 1.49% Present Value ($, Millions) Discounted @ 9.06% $249.75 $816.40 $1.35k $1.15k $1.00k $895.81 $814.03 $747.83 $692.23 $644.15 Present Value of 10-year Cash Flow (PVCF)= $8.36b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.5b × (1 + 2.7%) ÷ (9.1% – 2.7%) = US$25b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$25b ÷ ( 1 + 9.1%)10 = $10.45b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $18.81b.

Simply Wall St -

Can You Imagine How Diamondback Energy's (NASDAQ:FANG) Shareholders Feel About The 37% Share Price Increase?

Check out our latest analysis for Diamondback Energy To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … A Different Perspective While the broader market gained around 3.8% in the last year, Diamondback Energy shareholders lost 13% (even including dividends).

Simply Wall St -

Despite Its High P/E Ratio, Is Diamondback Energy, Inc. (NASDAQ:FANG) Still Undervalued?

We'll look at Diamondback Energy, Inc.'s (NASDAQ:FANG) P/E ratio and reflect on what it tells us about the company's share price. … View our latest analysis for Diamondback Energy How Do You Calculate Diamondback Energy's P/E Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Diamondback Energy: P/E of 18.76 = $107.2 ÷ $5.72 (Based on the year to March 2019.) Is A High Price-to-Earnings Ratio Good?

Simply Wall St -

Is Now The Time To Put Diamondback Energy (NASDAQ:FANG) On Your Watchlist?

How Fast Is Diamondback Energy Growing Its Earnings Per Share. … Over the last three years, Diamondback Energy has grown earnings per share (EPS) like bamboo after rain; fast, and from a low base. … Diamondback Energy shareholders can take confidence from the fact that EBIT margins are up from 44% to 53%, and revenue is growing.

Simply Wall St -

Does The Hype Around Diamondback Energy, Inc.'s (NASDAQ:FANG) Growth Justify Its April Share Price?

Looking at Diamondback Energy, Inc.’s (NASDAQ:FANG) fundamentals some investors are wondering if its last closing price of $107.28 represents a good value for money for this high growth stock. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … Diamondback Energy is poised for extremely high earnings growth in the near future

Simply Wall St -

Diamondback Energy, Inc. (NASDAQ:FANG): A Fundamentally Attractive Investment

I've been keeping an eye on Diamondback Energy, Inc. … Looking at the company as a whole, as a potential stock investment, I believe FANG has a lot to offer. … company with

Simply Wall St -

Is Diamondback Energy, Inc. (NASDAQ:FANG) As Strong As Its Balance Sheet Indicates?

Investors looking for stocks with high market liquidity and little debt on the balance sheet should consider Diamondback Energy, Inc. … With a market valuation of US$17b, FANG is a safe haven in times of market uncertainty due to its strong balance sheet. … In times of low liquidity in the market, these firms won’t be left high and dry.

Simply Wall St -

Company Info

Description

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.

Details
Name: Diamondback Energy, Inc.
FANG
Exchange: NasdaqGS
Founded: 2007
$17,041,926,495
164,672,205
Website: http://www.diamondbackenergy.com
Address: Diamondback Energy, Inc.
500 West Texas Avenue,
Suite 1200,
Midland,
Texas, 79701,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FANG Common Stock Nasdaq Global Select US USD 12. Oct 2012
DB 7DB Common Stock Deutsche Boerse AG DE EUR 12. Oct 2012
BMV FANG * Common Stock Bolsa Mexicana de Valores MX MXN 12. Oct 2012
Number of employees
Current staff
Staff numbers
711
Diamondback Energy employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/23 00:42
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/22
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.