Diamondback (FANG) AI Stock Analysis

• Market Cap: $42.70B
• Dividend Yield: 3.59%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 8.9
• Beta (1Y): 0.66
• Revenue Growth: 47.89%
• EPS Growth: -7.87%
• Country: US
• Employees: 1,983
• Sector: Energy
• Sector Strength: 61
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 4.54
• Shares Outstanding: 292,167,970
• 10 Day Avg. Volume: 1,752,148
• 30 Day Avg. Volume: 2,013,842
• PEG Ratio: 3.01
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.36
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 30.82
• Enterprise Value/Gross Profit: 482.24
• Enterprise Value/Ebitda: -36.69
• 1Y Price Target: $182.63
• Price Target Upside: 24.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 75 Outperform
• Price Target: $160.00 ▲(9.48%Upside)

Diamondback Energy's strong valuation and strategic corporate moves are offset by concerns over free cash flow and production declines. The company's operational efficiencies and financial strategies provide a buffer against market volatility, but monitoring of liquidity risks and production challenges is essential.

Positive Factors

Asset Valuation

Diamondback's Delaware asset is estimated to have a value range of $4.6bn to $6.7bn, indicating substantial worth in the company's portfolio.

Debt Reduction

A potential sale of the Delaware asset could significantly reduce Diamondback's $13.9bn debt balance, addressing investor concerns about financial defensiveness.

Financial Performance

Reported adj EBITDA of $2.95B ahead of consensus of $2.78B and Benchmark’s $2.83B.

Negative Factors

Commodity Price Risk

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

Cost Increases

Tariffs have already taken a bite, raising well costs by 1% or $40m annually.

Production Decrease

The company reduced its activity over the quarter, leading to a decrease in oil production.

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, 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 demonstrates strong revenue and profit growth, with efficient operations and a stable balance sheet. However, the negative free cash flow due to high capital expenditures poses a potential liquidity risk.

Income Statement

Diamondback has shown strong revenue growth with a significant increase from $11.02 billion in 2024 to $12.85 billion in TTM (Trailing-Twelve-Months), reflecting a robust revenue growth rate. The gross profit margin is healthy at 54.0%, and the net profit margin is impressive at 30.9%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also strong at 38.5% and 69.7%, respectively, showcasing operational efficiency. Overall, the income statement reflects a solid financial performance with strong growth and profitability metrics.

Balance Sheet

The balance sheet shows a stable financial position with a debt-to-equity ratio of 0.36, indicating a moderate level of leverage. The return on equity (ROE) is strong at 10.3%, demonstrating effective use of equity to generate profits. The equity ratio is 54.9%, suggesting a solid equity base relative to total assets. While the company maintains a healthy balance sheet, the increase in total debt from $12.43 billion in 2024 to $13.91 billion in TTM should be monitored.

Cash Flow

Diamondback's cash flow statement reveals a mixed picture. The operating cash flow to net income ratio is 1.87, indicating strong cash generation relative to net income. However, the free cash flow has turned negative in TTM at -$4.48 billion, primarily due to high capital expenditures, which could impact liquidity. The free cash flow to net income ratio is negative, highlighting potential cash flow challenges despite strong operating cash flow.

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

Diamondback Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 146.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 146.14 is above the 20-day moving average (MA) of 143.69, above the 50-day MA of 142.56, and below the 200-day MA of 154.13, indicating a neutral trend. The MACD of 1.91 indicates Negative momentum. The RSI at 53.02 is Neutral, neither overbought nor oversold. The STOCH value of 66.19 is Neutral, 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
EOG	77 Outperform	$65.51B	11.14	20.90%	3.29%	-0.23%	-14.82%
CTRA	76 Outperform	$18.09B	13.83	9.40%	3.63%	10.33%	-0.13%
FANG	75 Outperform	$42.70B	8.94	14.26%	3.59%	47.89%	-7.87%
OXY	74 Outperform	$42.72B	17.57	9.43%	2.12%	1.35%	-33.30%
DVN	72 Outperform	$21.33B	7.56	20.88%	3.55%	12.06%	-16.37%
EQT	70 Outperform	$33.54B	28.91	6.26%	1.20%	59.12%	12.12%
Sector *	68 Neutral	S$527.91M	40.56	8.16%	4.16%	3.42%	-44.03%

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.