Diamondback (FANG) AI Stock Analysis

• Market Cap: $41.17B
• Dividend Yield: 2.84%
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.68
• Revenue Growth: 47.89%
• EPS Growth: -7.87%
• Country: US
• Employees: 1,983
• Sector: Energy
• Sector Strength: 53
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.54
• Shares Outstanding: 292,167,970
• 10 Day Avg. Volume: 2,595,286
• 30 Day Avg. Volume: 2,511,696
• PEG Ratio: 0.06
• Price to Book (P/B): 1.61
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.56
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 4.36
• Enterprise Value/Ebitda: 1.01
• 1Y Price Target: $184.00
• Price Target Upside: 30.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21

• Rating: 71 Outperform
• Price Target: $160.00 ▲(13.56%Upside)

Diamondback Energy presents a strong financial position with growth in revenue and profitability, supported by a favorable valuation. The strategic response to market challenges through capital expenditure reductions and operational efficiencies is commendable. However, potential liquidity risks from negative free cash flow and production challenges temper the overall outlook.

Positive Factors

Asset Growth

Diamondback's Delaware asset could potentially grow in value to $6.7 billion with an aggressive development plan.

Debt Reduction

A potential sale of the Delaware asset could significantly reduce Diamondback's debt, addressing investor concerns.

Negative Factors

Commodity Prices and Interest Rates

Key risk is lower-than-expected commodity prices and high interest rates.

Gearing Concerns

A key challenge for FANG is its relatively high gearing compared to peers, primarily due to acquisitions and investments.

Diamondback Business Overview & Revenue Model

Company Description

Diamondback Energy, Inc. is a leading independent oil and natural gas company headquartered in Midland, Texas. The company is primarily engaged in the acquisition, development, exploration, and production of oil and natural gas reserves in the Permian Basin, one of the most prolific oil-producing regions in the United States. Diamondback's operations are concentrated onshore in the United States, focusing on maximizing production efficiency and optimizing assets through technology and strategic investments.

How the Company Makes Money

Diamondback Energy generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs) extracted from its properties. The company's revenue model depends on the successful exploration and production activities within its leasehold acreage in the Permian Basin. Key revenue streams include the sale of produced hydrocarbons to refineries and other purchasers at market prices, which are influenced by global commodity market conditions. Additionally, Diamondback engages in hedging activities to manage price volatility and secure cash flow predictability. Strategic partnerships and joint ventures with other energy companies may also contribute to operational efficiencies and expanded production capabilities, enhancing overall earnings.

Diamondback Financial Statement Overview

Summary

Diamondback shows strong revenue growth and profitability with impressive profit margins. However, challenges include high debt levels and negative free cash flow growth, highlighting the need for better capital expenditure management.

Income Statement

Diamondback has demonstrated strong revenue growth with a notable increase of 16.75% in TTM (Trailing-Twelve-Months) compared to the previous year. The gross profit margin stands at an impressive 68.44%, indicating robust cost management. Net profit margin is also strong at 30.88%, reflecting effective operational efficiency. However, a decrease in EBIT margin from 39.89% last year to 25.62% in TTM highlights some pressure on operating income.

Balance Sheet

The company shows a solid equity position with an equity ratio of 54.91% in TTM, suggesting stability. The debt-to-equity ratio has improved, falling to 0.02, indicating reduced leverage risk. Return on equity is strong at 10.33%, showcasing effective utilization of equity capital. However, a high total debt level remains a concern despite recent improvements.

Cash Flow

Free cash flow has declined significantly, leading to a negative growth rate. The operating cash flow to net income ratio is 1.87, suggesting solid cash generation relative to net income. However, negative free cash flow growth and high capital expenditures impact the cash flow stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.86B	11.02B	8.34B	9.08B	6.75B	2.81B
Gross Profit	6.94B	4.97B	4.87B	6.78B	4.27B	644.00M
EBITDA	8.96B	7.64B	6.17B	7.24B	4.37B	-4.26B
Net Income	3.98B	3.34B	3.14B	4.39B	2.18B	-4.52B
Balance Sheet
Total Assets	70.07B	67.29B	29.00B	26.21B	22.90B	17.62B
Cash, Cash Equivalents and Short-Term Investments	1.82B	161.00M	582.00M	157.00M	654.00M	104.00M
Total Debt	13.91B	12.43B	6.80B	6.38B	6.69B	5.82B
Total Liabilities	28.32B	27.43B	11.57B	10.52B	9.65B	7.82B
Stockholders Equity	38.47B	37.74B	16.63B	15.01B	12.09B	8.79B
Cash Flow
Free Cash Flow	-4.48B	3.55B	1.21B	2.82B	1.67B	74.00M
Operating Cash Flow	7.43B	6.41B	5.92B	6.33B	3.94B	2.12B
Investing Cash Flow	-12.12B	-11.22B	-3.32B	-3.33B	-1.54B	-2.10B
Financing Cash Flow	5.83B	4.39B	-2.18B	-3.50B	-1.84B	-37.00M

Diamondback Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 140.90
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FANG, the sentiment is Negative. The current price of 140.9 is below the 20-day moving average (MA) of 144.01, above the 50-day MA of 139.78, and below the 200-day MA of 157.80, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FANG.

Diamondback Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOG	80 Outperform	$67.21B	11.43	20.90%	3.17%	-0.23%	-14.82%
OVV	77 Outperform	$10.37B	17.01	6.17%	3.01%	-14.46%	-67.20%
DVN	75 Outperform	$21.34B	7.56	20.88%	2.89%	12.06%	-16.37%
OXY	75 Outperform	$43.11B	17.73	9.43%	2.19%	1.35%	-33.30%
FANG	71 Outperform	$41.17B	8.62	14.26%	2.84%	47.89%	-7.87%
MPC	68 Neutral	$54.08B	24.73	12.37%	2.07%	-6.39%	-64.50%
Sector *	52 Neutral	C$2.91B	-1.09	-3.26%	6.12%	5.32%	-43.41%

Diamondback Corporate Events

Diamondback Amends Credit Agreement with Wells Fargo

On June 12, 2025, Diamondback Energy, Inc. and Diamondback E&P LLC amended their Credit Agreement with Wells Fargo Bank, extending the maturity date to June 12, 2030, and reducing interest rates and certain fees. This amendment, which maintains other terms of the Credit Agreement, is expected to enhance the company’s financial flexibility and could positively impact its operations and stakeholder relations by lowering borrowing costs.

The most recent analyst rating on (FANG) stock is a Buy with a $231.00 price target. To see the full list of analyst forecasts on Diamondback stock, see the FANG Stock Forecast page.

Viper Energy Announces Merger with Sitio Royalties

On June 2, 2025, Viper Energy, a subsidiary of Diamondback Energy, announced an all-equity merger agreement to acquire Sitio Royalties Corp. valued at approximately $4.1 billion, including Sitio’s net debt. The transaction, subject to customary closing conditions, received approval from Diamondback stockholders, who hold a majority of Viper’s voting power. A support agreement was also signed, restricting the transfer of Viper’s common stock until 90 days post-transaction, indicating a strategic move to consolidate and strengthen Diamondback’s position in the energy sector.

The most recent analyst rating on (FANG) stock is a Buy with a $218.00 price target. To see the full list of analyst forecasts on Diamondback stock, see the FANG Stock Forecast page.

Diamondback Announces Leadership Changes at Annual Meeting

On May 21, 2025, Diamondback Energy, Inc. held its 2025 Annual Meeting of Stockholders, where significant leadership changes were announced. Travis D. Stice stepped down as CEO to become Executive Chairman of the Board, while continuing as a director until the 2026 Annual Meeting. The stockholders voted on several proposals, including the election of directors, approval of executive compensation, ratification of the company’s auditors, and a rejected proposal on executive severance arrangements. These decisions reflect a strategic shift in leadership and governance, potentially impacting the company’s future operations and stakeholder relations.

The most recent analyst rating on (FANG) stock is a Buy with a $231.00 price target. To see the full list of analyst forecasts on Diamondback stock, see the FANG Stock Forecast page.