FANG

Diamondback Energy, Inc.

Fundamental data last updated:August 16, 2026

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company profile

SECTOR

Energy

industry

Oil & Gas Exploration & Production

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Diamondback Energy, Inc. operates as an independent enterprise focused on oil and natural gas. Its core business involves the acquisition, development, exploration, and production of unconventional and onshore hydrocarbon reserves, predominantly located within the Permian Basin across West Texas and New Mexico. The company's development efforts primarily target significant geological formations, including the Spraberry and Wolfcamp in the Midland Basin, as well as the Wolfcamp and Bone Spring within the Delaware Basin – both crucial components of the broader Permian. As of December 31, 2021, Diamondback Energy's asset base included approximately 524,700 gross acres under its control in the Permian Basin. At that time, its estimated proved oil and natural gas reserves amounted to 1,788,991 thousand barrels of crude oil equivalent. The company also maintained working interests in 5,289 gross producing wells and held royalty interests in an additional 6,455 wells. Beyond its direct well operations, Diamondback Energy possesses mineral interests spanning roughly 930,871 gross acres and 27,027 net royalty acres across the Permian Basin and the Eagle Ford Shale. Furthermore, it manages a portfolio of midstream infrastructure, owning, operating, developing, and acquiring assets such as 866 miles of crude oil gathering pipelines, natural gas gathering pipelines, and an integrated water system within the Midland and Delaware Basins of the Permian. Established in 2007, Diamondback Energy, Inc. is headquartered in Midland, Texas.

 


VALUATION

P/E

121.91

Market Cap ($M USD)

$48.87B

Forward P/E

11.20

PEG

0.01

PRICE TO SALES

3.22

PRICE TO BOOK

1.35

EV / EBITDA

11.55

5-Year Average P/E

Free Cash Flow Yield

3.26%

DCF Value

$86.92

Graham Number

$64.31

Price to FCF

30.70

EV to FCF

39.32

Earnings Yield

0.82%

FCF Yield

3.26%

DIVIDEND

Yield

2.39%

Annual Payout

$4.15

Payout Ratio

317.87%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.43

Next Year EPS Growth Estimate

$15.51

Next Year Revenue Growth Estimate

$15.70B

Return on Equity (ROE)

1.06%

FREE CASH FLOW

Operating Margin

22.12%

Debt-to-Equity

0.40

Piotroski F-Score

6

Altman Z-Score

1.34

Return on Invested Capital (ROIC)

5.15%

Current Ratio

0.56

Quick Ratio

0.55

Net Debt to EBITDA

2.53

Interest Coverage

12.59

Gross Profit margin

41.83%

FCF PER SHARE

$5.63

REVENUE PER SHARE

$53.72

Gainseekers Quantitative Analysis

Summary

The market seems to have mispriced Diamondback Energy, Inc., with its snapshot price trading significantly above its DCF value and Graham Number. The Forward P/E of 11.28 suggests a more reasonable valuation compared to its astronomical trailing P/E, indicating expectations of robust earnings growth. However, the Altman Z-score of 1.44 raises red flags about financial distress risk. Despite a low earnings yield, the company’s growth potential is underscored by a forward PEG ratio of 0.01, hinting at undervaluation relative to its growth prospects.

AI Exposure / Tech Reliance

Operating in the energy sector, Diamondback Energy is less directly impacted by AI and tech shifts compared to tech-centric industries. However, advancements in AI could enhance operational efficiencies in exploration and production. The company’s resilience will depend on its ability to integrate such technologies to optimize costs and improve margins.

The Bull Case

For value and GARP investors, Diamondback Energy presents an intriguing opportunity. The company boasts a solid ROIC of 5.15%, indicating effective capital allocation. A Piotroski F-Score of 6 suggests decent financial health, while a 22.12% operating margin reflects strong pricing power. Despite a modest FCF yield, the company’s ability to generate cash flow supports its dividend, making it attractive for income-focused investors.

The Bear Case

Yet, structural risks loom large. The stock is technically overextended, trading close to its 52-week high, and its price-to-sales ratio of 3.49 suggests a premium valuation. The payout ratio of 317.87% is unsustainable, signaling potential dividend cuts. Additionally, a current ratio of 0.56 indicates liquidity concerns, which could strain operations if market conditions worsen.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$214.29

Institutional Ownership %

1-Year Beta

0.41

Insider Buying % (6 Mo)

Distance to 52-Week High

23.47%

Distance to 52-Week Low

22.70%

EARNINGS SURPRISE %

13.10%

50-DAY SMA

$194.30

200-DAY SMA

$168.90

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.