Diamondback (FANG) AI Stock Analysis

• Market Cap: $45.44B
• Dividend Yield: 2.52%
• Average Volume (3M): 1.59M
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.72
• Revenue Growth: 60.29%
• EPS Growth: -17.62%
• Country: US
• Employees: 1,983
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 3.08
• Shares Outstanding: 286,525,600
• 10 Day Avg. Volume: 1,481,233
• 30 Day Avg. Volume: 1,588,923
• PEG Ratio: -1.00
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 3.17
• P/FCF Ratio: -6.51
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 4.15
• Enterprise Value/Gross Profit: 10.67
• Enterprise Value/Ebitda: 5.89
• 1Y Price Target: $177.70
• Price Target Upside: 12.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 13.07
• Revenue Forecast (FY): $14.00B

• Rating: 81 Outperform
• Price Target: $176.00 ▲(10.97% Upside)

Diamondback Energy's strong financial performance and technical indicators are the primary drivers of its high score. The company's strategic focus on operational efficiencies and asset sales further supports its growth potential. However, concerns about declining free cash flow and market uncertainties slightly temper the overall outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for Diamondback's products and successful market penetration, supporting long-term business sustainability.

Operational Efficiency

Improved operational efficiency through cost reductions enhances profitability and competitive positioning in the oil and gas sector.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility, reducing risk and supporting Diamondback's ability to invest in growth opportunities.

Negative Factors

Declining Free Cash Flow

Declining free cash flow suggests potential cash management challenges, which could limit Diamondback's ability to fund operations and growth initiatives.

Market Uncertainty

Uncertain macroeconomic conditions may impact Diamondback's strategic planning and investment decisions, posing risks to future growth and profitability.

Oil Price Vulnerability

Vulnerability to low oil prices could pressure Diamondback's margins and necessitate adjustments in capital expenditure, affecting long-term financial performance.

Diamondback Business Overview & Revenue Model

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. 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. It also held working interests in 5,289 gross producing wells, as well as royalty interests in 6,455 additional wells. In addition, the company owns mineral interests approximately 930,871 gross acres and 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and owns, operates, develops, and acquires midstream infrastructure assets, including 866 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system in the Midland and Delaware Basins of the Permian Basin. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

How the Company Makes Money

Diamondback Energy generates revenue primarily through the sale of crude oil, natural gas liquids, and natural gas. The company employs a strategy of acquiring and developing high-quality assets in the Permian Basin, allowing it to benefit from lower production costs and higher margins. Key revenue streams include direct sales of hydrocarbons to refineries and pipelines, as well as hedging strategies that lock in prices for future production. Diamondback also partners with midstream companies to optimize transportation and processing of its products, further enhancing its profitability. Additionally, the company may derive income from joint ventures and strategic partnerships that enable shared access to resources and technology, contributing to its overall earnings.

Diamondback Financial Statement Overview

Summary

Diamondback exhibits strong financial health with robust revenue growth and profitability margins. The balance sheet is stable with low leverage, enhancing financial flexibility. However, the decline in free cash flow is a concern, indicating potential cash management challenges. Overall, the company is well-positioned in its industry but should focus on improving free cash flow generation to sustain long-term growth.

Income Statement

Diamondback has demonstrated strong revenue growth with a 9.19% increase in TTM, supported by robust gross and net profit margins of 79.10% and 27.34% respectively. The EBIT and EBITDA margins are also healthy at 29.49% and 67.69%, indicating efficient operations and profitability. However, the net profit margin has slightly decreased compared to the previous year, suggesting some pressure on net earnings.

Balance Sheet

The company's balance sheet is solid with a low debt-to-equity ratio of 0.01, reflecting minimal leverage and financial risk. The return on equity is decent at 10.89%, indicating effective use of equity capital. The equity ratio stands at 51.27%, suggesting a strong equity base relative to total assets. However, the ROE has decreased from previous years, indicating a potential decline in profitability efficiency.

Cash Flow

Operating cash flow is strong, covering net income by over 2 times, which indicates good cash generation from operations. However, free cash flow has significantly declined, with a negative growth rate of -105.24%, and the free cash flow to net income ratio is low at 5.05%. This suggests potential challenges in generating free cash flow, possibly due to high capital expenditures or other cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.30B	11.02B	8.34B	9.57B	6.75B	2.81B
Gross Profit	5.96B	4.97B	4.80B	6.70B	4.27B	637.00M
EBITDA	10.78B	7.64B	6.17B	7.23B	4.37B	-4.27B
Net Income	4.20B	3.34B	3.14B	4.39B	2.18B	-4.52B
Balance Sheet
Total Assets	76.21B	67.29B	29.00B	26.21B	22.90B	17.62B
Cash, Cash Equivalents and Short-Term Investments	159.00M	161.00M	582.00M	157.00M	654.00M	104.00M
Total Debt	16.24B	12.43B	6.80B	6.38B	6.77B	5.93B
Total Liabilities	30.58B	27.43B	11.57B	10.52B	9.65B	7.82B
Stockholders Equity	39.09B	37.74B	16.63B	15.01B	12.09B	8.79B
Cash Flow
Free Cash Flow	442.00M	-5.37B	1.21B	2.71B	1.67B	74.00M
Operating Cash Flow	8.76B	6.41B	5.92B	6.33B	3.94B	2.12B
Investing Cash Flow	-9.55B	-11.22B	-3.32B	-3.33B	-1.54B	-2.10B
Financing Cash Flow	969.00M	4.39B	-2.18B	-3.50B	-1.84B	-37.00M

Diamondback Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 158.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FANG, the sentiment is Positive. The current price of 158.6 is above the 20-day moving average (MA) of 149.74, above the 50-day MA of 145.23, and above the 200-day MA of 141.55, indicating a bullish trend. The MACD of 3.98 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 85.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FANG.

Diamondback Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FANG	81 Outperform	$45.44B	11.02	10.92%	2.52%	60.29%	-17.62%
EQT	81 Outperform	$37.87B	20.70	8.19%	1.05%	64.84%	219.47%
DVN	79 Outperform	$23.50B	8.81	18.35%	2.51%	11.14%	-21.32%
EOG	77 Outperform	$60.86B	11.17	18.48%	3.52%	-5.15%	-19.06%
CTRA	73 Outperform	$20.85B	12.64	11.86%	3.21%	26.13%	31.42%
OXY	69 Neutral	$41.80B	30.88	5.82%	2.22%	-2.48%	-65.26%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Diamondback Corporate Events

Diamondback Enters Share Agreement with SGF Holdings

On November 28, 2025, Diamondback Energy, Inc. entered into a letter agreement with SGF FANG Holdings, LP, allowing SGF to sell up to 3,000,000 shares of Diamondback common stock per quarter through December 31, 2026, at the most recent NASDAQ closing price. As part of this agreement, Diamondback repurchased 2,000,000 shares from SGF at $152.59 per share, contributing to its ongoing share repurchase program. Since September 30, 2025, Diamondback has repurchased a total of 2,886,280 shares for $432 million, with $2.7 billion remaining under its $8 billion repurchase authorization. This agreement does not restrict SGF from selling shares through other means, maintaining flexibility in its stockholder agreement with Diamondback.