Diamondback (FANG) AI Stock Analysis

• Market Cap: $42.69B
• Dividend Yield: 2.64%
• Average Volume (3M): 2.02M
• Price to Earnings (P/E): 10.5
• Beta (1Y): 0.65
• Revenue Growth: 51.78%
• EPS Growth: -27.29%
• Country: US
• Employees: 1,983
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 2.67
• Shares Outstanding: 289,486,100
• 10 Day Avg. Volume: 1,993,461
• 30 Day Avg. Volume: 2,021,335
• PEG Ratio: -1.00
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 3.17
• P/FCF Ratio: 9.87
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 4.21
• Enterprise Value/Gross Profit: 10.45
• Enterprise Value/Ebitda: 6.07
• 1Y Price Target: $184.00
• Price Target Upside: 24.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 77 Outperform
• Price Target: $161.00 ▲(9.17% Upside)

Diamondback Energy's strong financial performance and attractive valuation are the most significant factors driving its stock score. The positive sentiment from the earnings call further supports the company's strategic direction. However, technical indicators suggest a neutral trend, and potential risks from cost inflation and market conditions could impact future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health and expansion potential.

Operational Efficiency

Improved operational efficiency reduces costs and enhances production capabilities, strengthening competitive positioning and profitability over time.

Strategic Acquisitions

Seamless integration of acquisitions expands resource base and operational scale, bolstering market position and growth prospects.

Negative Factors

Cost Inflation

Rising costs due to tariffs can erode profit margins and increase operational expenses, challenging long-term cost management and profitability.

Negative Free Cash Flow

Negative free cash flow suggests liquidity challenges and limits financial flexibility, potentially impacting the ability to fund growth initiatives.

Market Uncertainty

Uncertain market conditions can hinder strategic planning and operational stability, posing risks to future revenue and profitability.

Diamondback Business Overview & Revenue Model

Company Description

Diamondback Energy, Inc. (FANG) is an independent oil and natural gas company based in Midland, Texas. The company is primarily engaged in the acquisition, exploration, development, and production of unconventional oil and natural gas reserves in the Permian Basin, one of the most prolific oil-producing regions in the United States. Diamondback's core operations focus on high-quality resource plays and they utilize advanced technologies and efficient operational practices to maximize production and profitability.

How the Company Makes Money

Diamondback Energy generates revenue primarily through the sale of crude oil, natural gas liquids (NGLs), and natural gas produced from its extensive portfolio of oil and natural gas properties. The company employs a vertical integration strategy, which includes exploration, drilling, and production activities, allowing it to control costs and optimize output. Key revenue streams include direct sales of hydrocarbons to refiners, marketers, and other end-users, as well as potential revenue from hedging activities that protect against price volatility. Additionally, Diamondback benefits from strategic partnerships and joint ventures that enhance its operational capabilities and expand its resource base, contributing to its overall earnings.

Diamondback Financial Statement Overview

Summary

Diamondback exhibits strong revenue growth and profitability, supported by a stable balance sheet with minimal leverage. However, the negative free cash flow and declining EBIT margins pose potential risks. Overall, the company is financially sound but should focus on improving operational efficiency and cash flow management.

Income Statement

Diamondback has demonstrated strong revenue growth with a 9.43% increase in TTM, supported by a robust gross profit margin of 77.71%. The net profit margin is healthy at 27.28%, indicating efficient cost management. However, the EBIT margin has decreased compared to previous periods, suggesting potential operational challenges.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.00036 in TTM, highlighting strong financial stability. Return on equity is moderate at 10.06%, reflecting decent profitability. The equity ratio stands at 54.05%, indicating a solid capital structure. However, the slight decrease in ROE compared to previous years suggests room for improvement in generating returns.

Cash Flow

Operating cash flow is strong with a coverage ratio of 2.02, but the negative free cash flow indicates significant capital expenditures or investments. The free cash flow to net income ratio is negative, highlighting potential liquidity concerns. Despite this, the company has shown a positive trend in operating cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.01B	11.02B	8.34B	9.57B	6.75B	2.81B
Gross Profit	5.65B	4.97B	4.80B	6.70B	4.27B	637.00M
EBITDA	9.71B	7.64B	6.17B	7.23B	4.37B	-4.27B
Net Income	3.84B	3.34B	3.14B	4.39B	2.18B	-4.52B
Balance Sheet
Total Assets	71.94B	67.29B	29.00B	26.21B	22.90B	17.62B
Cash, Cash Equivalents and Short-Term Investments	219.00M	161.00M	582.00M	157.00M	654.00M	104.00M
Total Debt	15.13B	12.43B	6.80B	6.38B	6.77B	5.93B
Total Liabilities	29.12B	27.43B	11.57B	10.52B	9.65B	7.82B
Stockholders Equity	38.88B	37.74B	16.63B	15.01B	12.09B	8.79B
Cash Flow
Free Cash Flow	-8.44B	-5.37B	1.21B	2.71B	1.67B	74.00M
Operating Cash Flow	7.58B	6.41B	5.92B	6.33B	3.94B	2.12B
Investing Cash Flow	-15.65B	-11.22B	-3.32B	-3.33B	-1.54B	-2.10B
Financing Cash Flow	1.38B	4.39B	-2.18B	-3.50B	-1.84B	-37.00M

Diamondback Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 147.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 147.47 is above the 20-day moving average (MA) of 141.14, above the 50-day MA of 142.49, and above the 200-day MA of 146.02, indicating a bullish trend. The MACD of 1.03 indicates Negative momentum. The RSI at 59.37 is Neutral, neither overbought nor oversold. The STOCH value of 55.36 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
FANG	77 Outperform	$42.69B	10.48	13.55%	2.64%	51.78%	-27.29%
EOG	76 Outperform	$60.51B	10.78	19.63%	3.46%	-5.42%	-20.52%
DVN	74 Outperform	$21.94B	7.74	20.60%	2.72%	10.98%	-19.25%
EQT	72 Outperform	$34.97B	30.14	6.26%	1.12%	59.12%	12.12%
OXY	72 Outperform	$44.15B	26.35	6.98%	2.10%	-1.66%	-58.96%
CTRA	70 Neutral	$17.78B	11.17	11.42%	3.73%	16.56%	20.21%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

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.

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.