(FANG) Diamondback Energy - Overview
Sector: Energy | Industry: Oil & Gas E&P | Exchange: NASDAQ (USA) | Market Cap: 56.536m USD | Total Return: 49.8% in 12m
Avg Turnover: 403M
EPS Trend: -94.0%
Qual. Beats: 1
Rev. Trend: 96.5%
Qual. Beats: 8
Warnings
P/E ratio 205.1
Interest Coverage Ratio 0.7 is critical
Altman Z'' 0.20 < 1.0 - financial distress zone
Tailwinds
Pead, Confidence
Diamondback Energy, Inc. (FANG) is an independent exploration and production company concentrated exclusively on the Permian Basin in West Texas and New Mexico. The company’s operational strategy focuses on the development of unconventional reserves within the Midland and Delaware Basins, specifically targeting the Spraberry, Wolfcamp, and Bone Spring formations. Headquartered in Midland, Texas, the firm manages the entire lifecycle of its assets, from initial acquisition and exploration to long-term exploitation.
The Permian Basin is characterized by multiple stacked hydrocarbon-bearing formations, allowing operators to utilize horizontal drilling and hydraulic fracturing to extract resources from different depths using the same surface footprint. As a pure-play operator in this region, Diamondback’s business model is highly sensitive to regional pipeline capacity and West Texas Intermediate (WTI) pricing differentials. Investors can find deeper insights into these regional valuation drivers on ValueRay.
- Permian Basin production volumes drive top-line revenue growth and cash flow generation
- Crude oil price volatility directly impacts quarterly earnings and capital expenditure budgets
- Operational efficiency in Midland and Delaware Basins determines per-barrel breakeven costs
- Strategic acquisitions and Permian consolidation enhance long-term inventory and scale
- Federal and state environmental regulations increase compliance costs and operational risk
| Net Income: 403.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 9.81 > 1.0 |
| NWC/Revenue: -13.90% < 20% (prev -5.22%; Δ -8.68% < -1%) |
| CFO/TA 0.12 > 3% & CFO 8.23b > Net Income 403.0m |
| Net Debt (14.1b) to EBITDA (5.42b): 2.60 < 3 |
| Current Ratio: 0.56 > 1.5 & < 3 |
| Outstanding Shares: last quarter (282.8m) vs 12m ago -2.35% < -2% |
| Gross Margin: 41.83% > 18% (prev 0.44%; Δ 4.14k% > 0.5%) |
| Asset Turnover: 21.68% > 50% (prev 18.32%; Δ 3.36% > 0%) |
| Interest Coverage Ratio: 0.66 > 6 (EBITDA TTM 5.42b / Interest Expense TTM 267.0m) |
| A: -0.03 (Total Current Assets 2.70b - Total Current Liabilities 4.82b) / Total Assets 70.1b |
| B: 0.06 (Retained Earnings 4.47b / Total Assets 70.1b) |
| C: 0.00 (EBIT TTM 177.0m / Avg Total Assets 70.1b) |
| D: 0.16 (Book Value of Equity 4.46b / Total Liabilities 27.4b) |
| Altman-Z'' = 0.20 = B |
| DSRI: 1.15 (Receivables 2.16b/1.59b, Revenue 15.2b/12.8b) |
| GMI: 1.04 (GM 41.83% / 43.60%) |
| AQI: 0.70 (AQ_t 0.01 / AQ_t-1 0.02) |
| SGI: 1.18 (Revenue 15.2b / 12.8b) |
| TATA: -0.11 (NI 403.0m - CFO 8.23b) / TA 70.1b) |
| Beneish M = -3.03 (Cap -4..+1) = AA |
As of May 26, 2026, the stock is trading at USD 200.71 with a total of 1,522,900 shares traded.
Over the past week, the price has changed by -1.40%,
over one month by +2.75%,
over three months by +21.01% and
over the past year by +49.75%.
Diamondback Energy has received a consensus analysts rating of 4.42. Therefore, it is recommended to buy FANG.
- StrongBuy: 16
- Buy: 12
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 231.8 | 15.5% |
P/E Trailing = 205.0714
P/E Forward = 9.009
P/S = 3.9101
P/B = 1.5501
P/EG = 56.777
Revenue TTM = 15.2b USD
EBIT TTM = 177.0m USD
EBITDA TTM = 5.42b USD
Long Term Debt = 13.1b USD (from longTermDebt, last quarter)
Short Term Debt = 749.0m USD (from shortTermDebt, last quarter)
Debt = 14.3b USD (from shortLongTermDebtTotal, last quarter) + Leases 390.0m
Net Debt = 14.1b USD (calculated: Debt 14.3b - CCE 176.0m)
Enterprise Value = 70.6b USD (56.5b + Debt 14.3b - CCE 176.0m)
Interest Coverage Ratio = 0.66 (Ebit TTM 177.0m / Interest Expense TTM 267.0m)
EV/FCF = 44.38x (Enterprise Value 70.6b / FCF TTM 1.59b)
FCF Yield = 2.25% (FCF TTM 1.59b / Enterprise Value 70.6b)
FCF Margin = 10.48% (FCF TTM 1.59b / Revenue TTM 15.2b)
Net Margin = 2.65% (Net Income TTM 403.0m / Revenue TTM 15.2b)
Gross Margin = 41.83% ((Revenue TTM 15.2b - Cost of Revenue TTM 8.84b) / Revenue TTM)
Gross Margin QoQ = 68.68% (prev 24.29%)
Tobins Q-Ratio = 1.01 (Enterprise Value 70.6b / Total Assets 70.1b)
Interest Expense / Debt = 1.87% (Interest Expense 267.0m / Debt 14.3b)
Taxrate = 18.18% (32.0m / 176.0m)
NOPAT = 144.8m (EBIT 177.0m * (1 - 18.18%))
Current Ratio = 0.56 (Total Current Assets 2.70b / Total Current Liabilities 4.82b)
Debt / Equity = 0.39 (Debt 14.3b / totalStockholderEquity, last quarter 36.5b)
Debt / EBITDA = 2.60 (Net Debt 14.1b / EBITDA 5.42b)
Debt / FCF = 8.86 (Net Debt 14.1b / FCF TTM 1.59b)
Total Stockholder Equity = 37.9b (last 4 quarters mean from totalStockholderEquity)
RoA = 0.58% (Net Income 403.0m / Total Assets 70.1b)
RoE = 1.06% (Net Income TTM 403.0m / Total Stockholder Equity 37.9b)
RoCE = 0.35% (EBIT 177.0m / Capital Employed (Equity 37.9b + L.T.Debt 13.1b))
RoIC = 0.22% (NOPAT 144.8m / Invested Capital 66.0b)
WACC = 6.65% (E(56.5b)/V(70.8b) * Re(7.94%) + D(14.3b)/V(70.8b) * Rd(1.87%) * (1-Tc(0.18)))
Discount Rate = 7.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 33.33 | Cagr: 22.60%
[DCF] Terminal Value 75.44% ; FCFF base≈1.59b ; Y1≈1.60b ; Y5≈1.69b
[DCF] Fair Price = 43.46 (EV 26.3b - Net Debt 14.1b = Equity 12.2b / Shares 281.3m; r=8.35% [WACC [floored]]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: -93.99 | EPS CAGR: -16.88% | SUE: 4.0 | # QB: 1
Revenue Correlation: 96.47 | Revenue CAGR: 31.82% | SUE: 3.05 | # QB: 8
EPS current Quarter (2026-06-30): EPS=5.78 | Chg30d=+16.74% | Revisions=+30% | Analysts=21
EPS next Quarter (2026-09-30): EPS=5.01 | Chg30d=+11.72% | Revisions=+22% | Analysts=20
EPS current Year (2026-12-31): EPS=19.27 | Chg30d=+12.64% | Revisions=+33% | GrowthEPS=+44.1% | GrowthRev=+21.3%
EPS next Year (2027-12-31): EPS=17.18 | Chg30d=+1.26% | Revisions=+12% | GrowthEPS=-10.8% | GrowthRev=-7.0%
[Analyst] Revisions Ratio: +33%