Diamondback Energy (FANG)

Energy · $49.7B market cap · SEC CIK 0001539838

Next reports on Feb 22, 2027, after the close, with analysts expecting $6.32 in earnings per share.

52-week range $139.41 to $216.90. 18% below its 52-week high and 28% above its low.

The case for FANG

• Revenue up 21.4% on the year.
• Generated $2.8B of free cash flow in FY2025, 19% of revenue.
• Has compounded revenue at 39.8% a year over five years.
• Gross margin of 68% absorbs cost shocks.
• Moves less than the market (beta 0.52).

The case against

• Pricey for its growth: 24.5× mid-cycle earnings, where 6%+ a year of growth would justify about 17×.
• Growth is slowing: revenue up 21.4% this year against 39.8% a year over five.
• Return on equity of only 4%.
• Current liabilities exceed current assets (ratio 0.55).
• Long-term debt of $13.7B against $104M of cash.

What the score is made of

Each factor is half a curve over reported figures and half a rank among the other Energy companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Its dividend figures disagree with each other (a 6.6% yield against about 0.9% implied by its payout ratio and P/E), so the dividend is not counted.
• Its profits follow commodity prices, so its earnings and margin are read as half the latest year and half the average of the years on file (5), and last year's change in earnings per share is not counted as growth.
• Each factor except momentum is half fixed thresholds, half rank among the 21 Energy companies.

The financials

The financials, five years deep

Pulled from Diamondback Energy's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

Risk factors FANG lists in its 10-K

• Number of Identified Economic Potential Horizontal Drilling Locations
• Oil and Natural Gas Production and Price History
• Wells Drilled and Completed in 2025
• Remediation of Hazardous Substances
• Regulation of Hydraulic Fracturing
• Other Regulation of the Oil and Natural Gas Industry
• Equal Opportunity, Recruiting and Retention
• Changes in U.S. trade policy and the impact of tariffs may have a material adverse effect on our business and results of operations
• Risks relating to the transition to a low carbon economy could impose new costs on our operations that may have a material and adverse effect on us
• Changing political and social perspectives on climate change and other environmental, social and governance factors may create risks and uncertainties impacting our business
• Our targets related to sustainability and emissions reduction initiatives, including our public statements and disclosures regarding them, may expose us to numerous risks
• Our success depends on developing our existing leasehold acreage and finding, developing or acquiring additional reserves
• Our failure to successfully identify, complete and integrate pending and future acquisitions of properties or businesses could reduce our earnings and slow our growth
• Our identified potential drilling locations, which are part of our anticipated future drilling plans, are susceptible to uncertainties that could materially alter the occurrence or timing of their drilling
• We may fail to meet our obligations to deliver specified quantities of oil under our oil purchase contracts, which will result in deficiency payments to the counterparty and may have an adverse effect on our operations
• The loss of one or more of our customers or their inability to meet their obligations may adversely affect our financial results
• Our method of accounting for investments in oil and natural gas properties may result in impairment of asset value
• The standardized measure of our estimated proved reserves is not necessarily the same as the current market value of our estimated proved reserves
• The unavailability, high cost or shortages of rigs, equipment, raw materials, supplies, oilfield services or personnel may restrict our operations
• Our operations are substantially dependent on the availability of water. Restrictions on our ability to obtain water may have an adverse effect on our financial condition, results of operations and cash flows
• The marketability of our production is dependent upon transportation and other facilities, certain of which we do not control. If these facilities are unavailable, our operations could be interrupted and our revenues reduced
• Our operations are subject to various governmental laws and regulations which require compliance that can be burdensome and expensive
• We operate in areas of high industry activity, which may affect our ability to hire, train or retain qualified personnel needed to manage and operate our assets
• Operating hazards and uninsured risks may result in substantial losses and could prevent us from realizing profits
• We may not be able to keep pace with technological developments in our industry
• Legal proceedings brought against us could result in substantial liabilities and materially and adversely impact our financial condition
• Failure to comply with cybersecurity and data privacy laws and regulations could have a material adverse effect on our reputation, results of operations or financial condition
• Following the closing of the Endeavor Acquisition, the Endeavor equityholders have the ability to significantly influence our business, and their interest in our business may be different from that of other stockholders
• Our substantial indebtedness could adversely affect our results of operations, business flexibility and our ability to service our debt
• A downgrade in our debt ratings could restrict our access to, and negatively impact the terms of, current or future financings or trade credit
• A change of control could limit our use of net operating losses and certain other tax attributes
• We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock
• Provisions in our certificate of incorporation and bylaws and Delaware law make it more difficult to effect a change in control of our company, which could adversely affect the price of our common stock

Filings

Other Energy companies