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Diamondback Energy Inc (FANG) Stock

Diamondback Energy Inc Stock Details, Movements and Public Alerts

Diamondback Energy (FANG): The $55B Permian Basin Pure-Play Delivering Industry-Leading Returns

When oil markets reward capital discipline and operational excellence, Diamondback Energy stands apart as the Permian Basin's most efficient large-cap producer. CEO Travis Stice built the company from a 2007 startup into a $55B enterprise through relentless focus on cost reduction, strategic acquisitions, and shareholder returns. The 2024 Endeavor Energy acquisition added 344,000 net acres, creating a Midland Basin position unmatched by any public competitor. Diamondback's $35/barrel breakeven enables profitability across commodity cycles while 75%+ free cash flow returns deliver base dividends plus variable dividends plus buybacks. Trading at 7x forward earnings with 5%+ total dividend yield, Diamondback offers energy investors premier exposure to America's most prolific oil basin with management proven through multiple cycles.

52-Week Range

$175.91 - $111.64

-12.42% from high · +38.00% from low

Avg Daily Volume

2,162,581

20-day average

100-day avg: 2,157,287

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

11.26

Below market average

Forward P/E

14.53

Earnings expected to decline

PEG Ratio

24.24

Potentially overvalued

Price to Book

1.18

EV/EBITDA

5.76

EPS (TTM)

$13.95

Price to Sales

3.11

Beta

0.61

Less volatile than market

How is FANG valued relative to its earnings and growth?
Diamondback Energy Inc trades at a P/E ratio of 11.26, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 14.53 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 24.24 indicates a premium valuation even accounting for growth.
What is FANG's risk profile compared to the market?
With a beta of 0.61, Diamondback Energy Inc is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 1.18 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

28.70%

Operating Margin

36.60%

EBITDA

$10.60B

Return on Equity

10.90%

Return on Assets

5.10%

Revenue Growth (YoY)

42.00%

Earnings Growth (YoY)

10.00%

How profitable and efficient is FANG's business model?
Diamondback Energy Inc achieves a profit margin of 28.70%, meaning it retains $28.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 36.60% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 10.90% and ROA at 5.10%, the company achieves moderate returns on invested capital.
What are FANG's recent growth trends?
Diamondback Energy Inc's revenue grew by 42.00% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 10.00% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against OIL & GAS E&P industry averages for proper context.

Dividend Information

Dividend Per Share

$4.00

Dividend Yield

2.50%

Ex-Dividend Date

Nov 13, 2025

Dividend Date

Nov 20, 2025

What dividend income can investors expect from FANG?
Diamondback Energy Inc offers a dividend yield of 2.50%, paying $4.00 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 13, 2025.
How reliable is FANG's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Diamondback Energy Inc pays $4.00 per share in dividends against earnings of $13.95 per share, resulting in a payout ratio of 28.67%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for Nov 20, 2025.

Company Size & Market

Market Cap

$45.5B

Revenue (TTM)

$14.63B

Revenue/Share (TTM)

$50.30

Shares Outstanding

286.53M

Book Value/Share

$136.25

Asset Type

Common Stock

What is FANG's market capitalization and position?
Diamondback Energy Inc has a market capitalization of $45.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 286.53M shares outstanding, the company's ownership is relatively concentrated. As a participant in the OIL & GAS E&P industry, it competes with other firms in this sector.
How does FANG's price compare to its book value?
Diamondback Energy Inc's book value per share is $136.25, while the current stock price is $154.06, resulting in a price-to-book (P/B) ratio of 1.13. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$178.80

16.06% upside potential

Analyst Recommendations

Strong Buy

7

Buy

21

Hold

3

Sell

0

Strong Sell

0

How reliable are analyst predictions for FANG?
31 analysts cover FANG with 90% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The strong bullish consensus may already be priced in. The consensus target of $178.80 implies 16.1% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on FANG?
Current analyst recommendations:7 Strong Buy, 21 Buy, 3 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

Technical Indicators

RSI (14-day)

61.29

Neutral

50-Day Moving Average

$142.59

8.04% above MA-50

200-Day Moving Average

$145.95

5.56% above MA-200

MACD Line

1.65

MACD Signal

0.85

MACD Histogram

0.80

Bullish

What does FANG's RSI value tell investors?
The RSI (Relative Strength Index) for FANG is currently 61.29, indicating the stock is showing bullish momentum (60-70 range). The stock has positive momentum without being extremely overbought. This zone often occurs during healthy uptrends where buyers remain in control. Combined with the price being above the 50-day moving average, this confirms bullish conditions.
How should traders interpret FANG's MACD and moving average crossovers?
MACD analysis shows the MACD line at 1.65 above the signal line at 0.85, with histogram at 0.80. This bullish crossover suggests upward momentum is building. The 50-day MA ($142.59) is below the 200-day MA ($145.95), forming a death cross pattern that often warns of extended weakness. Price is currently above both MAs, confirming strength.

Indicators last updated: Oct 8, 2025, 12:40 AM

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Diamondback Energy (FANG) Stock Analysis 2025: Permian Basin Investment Guide

The Permian Basin Champion

Diamondback Energy emerged from the 2012 Permian Basin renaissance when CEO Travis Stice and founder Travis Gamel recognized that horizontal drilling and hydraulic fracturing had transformed West Texas geology into the world's most prolific oil basin. From initial positions in the Midland Basin's Spraberry formation, Stice assembled acreage through disciplined acquisitions: Energen (2018), Guidon Partners (2021), FireBird Energy (2022), Lario Oil & Gas (2023), and the transformative Endeavor Energy Resources merger (2024). Each deal added contiguous acreage enabling longer laterals, shared infrastructure, and operational synergies.

The Endeavor acquisition deserves particular attention. At $26B (including debt), Diamondback acquired the largest private Permian operator, adding 344,000 net acres concentrated in Martin and Midland counties—the basin's highest-quality rock. Combined with existing positions, Diamondback now controls the Midland Basin's core with contiguous blocks enabling 15,000+ foot laterals that dramatically improve well economics. CEO Travis Stice targets $550M+ annual synergies from reduced drilling costs, shared facilities, and corporate overhead elimination. The deal transforms Diamondback from a leading independent into the undisputed Permian large-cap champion.

Business Model & Competitive Position

Diamondback's model combines low-cost production with disciplined capital allocation. The company produces approximately 60% oil and 40% natural gas/NGLs, with oil generating the vast majority of revenue at current commodity prices. Production costs average $10-11/BOE—among the lowest in North America—reflecting operational efficiency, infrastructure ownership, and Permian Basin geology. Capital allocation follows a simple framework: maintain production with disciplined drilling programs, return 75%+ of free cash flow to shareholders, and pursue accretive acquisitions when opportunities arise.

Competitive advantages stem from acreage quality, operational execution, and balance sheet strength. Diamondback's Permian position features 15+ years of premium drilling inventory at current pace, providing production visibility that shorter-cycle competitors lack. Drilling efficiency—completing wells 30%+ faster than industry averages—reduces costs and accelerates cash returns. Midstream ownership through Rattler Midstream (now reintegrated) captures margin across the value chain. Investment-grade credit ratings (Baa2/BBB) ensure capital access through commodity cycles. However, advantages face erosion as the Permian Basin matures and competitors match operational best practices.

Financial Performance

  • •Production: 470,000+ BOE/day (60% oil) growing 5-7% organically post-Endeavor integration
  • •Revenue: $10B+ annually at current strip pricing; highly sensitive to oil prices
  • •Margins: $35/barrel corporate breakeven enabling FCF across commodity cycles
  • •FCF Generation: $4B+ annually at $75+ oil supporting dividends, buybacks, and debt reduction
  • •Shareholder Returns: $3B+ annually via 75%+ FCF return framework (base + variable + buybacks)
  • •Valuation: 7x forward P/E and 4x EV/EBITDA reflecting commodity uncertainty and E&P skepticism

Growth Catalysts

  • •Endeavor Synergies: $550M+ annual run-rate savings from drilling efficiency, infrastructure, and G&A
  • •Inventory Delineation: Acquisition acreage unlocking additional drilling locations beyond initial estimates
  • •Natural Gas Infrastructure: Permian gas takeaway expansion enabling associated gas monetization
  • •Oil Price Recovery: Supply discipline and demand growth supporting $75+ prices
  • •Share Buybacks: Opportunistic repurchases reducing share count at attractive valuations

Risks & Challenges

  • •Oil Price Volatility: Earnings and FCF highly sensitive to crude prices; $10/barrel move impacts $2B+ annually
  • •Endeavor Integration: $26B acquisition requires flawless execution on synergies and cultural integration
  • •Permian Basin Maturation: Even premium acreage depletes; parent-child interference reduces well productivity
  • •Regulatory Risk: Federal permitting delays, methane regulations, and ESG pressure on oil production
  • •Natural Gas Basis Differentials: Permian takeaway constraints create pricing discounts versus benchmarks

Competitive Landscape

Pioneer Natural Resources—formerly Diamondback's closest competitor—was acquired by Exxon in 2024, reducing public Permian pure-plays. ConocoPhillips acquired Marathon Oil, consolidating the sector further. Devon Energy operates substantial Permian assets alongside Delaware Basin and other holdings. EOG Resources spans multiple basins but maintains significant Permian exposure. Occidental Petroleum's Permian position complements its carbon management strategy. Among remaining independents, Diamondback stands alone as the largest pure-play Permian producer, though competition for services and acreage remains intense.

CEO Travis Stice's operational focus differentiates Diamondback from competitors pursuing diversification or vertical integration. While Oxy invests in carbon capture and Conoco expands internationally, Diamondback concentrates capital on Permian drilling where returns are highest and competitive advantages greatest. This focus creates execution accountability—investors evaluate Diamondback purely on Permian performance rather than diverse portfolios that obscure results. The strategy appeals to investors seeking concentrated commodity exposure with best-in-class operations.

Who Is This Stock Suitable For?

Perfect For

  • ✓Energy investors seeking premier Permian Basin exposure
  • ✓Income seekers attracted to 5%+ total dividend yield with variable component
  • ✓Commodity bulls betting on oil price recovery and supply discipline
  • ✓Investors valuing management track record through multiple cycles

Less Suitable For

  • ✗Conservative investors uncomfortable with oil price volatility
  • ✗ESG-focused portfolios avoiding fossil fuel investments
  • ✗Those seeking stable, predictable earnings and dividends
  • ✗Investors concerned about peak oil demand thesis

Investment Thesis

Diamondback Energy represents the highest-quality public vehicle for Permian Basin exposure following the Pioneer/Exxon and Marathon/Conoco consolidations. CEO Travis Stice's operational excellence delivers industry-leading margins while the 75%+ FCF return framework ensures shareholders benefit from commodity tailwinds. The Endeavor acquisition creates unmatched scale in America's most prolific oil basin with 15+ years of premium inventory. At 7x forward P/E, the stock prices in meaningful oil price risk while providing upside leverage to supply tightness.

The investment debate centers on oil price trajectory and Permian Basin durability. Bulls point to OPEC+ discipline, limited non-OPEC supply growth, and emerging market demand supporting $75+ prices. Bears cite peak demand concerns, Chinese economic weakness, and Permian parent-child interference degrading well productivity. Diamondback's low breakeven ($35/barrel) provides protection, but meaningful FCF requires $70+ prices. For investors constructive on oil markets with multi-year horizons, Diamondback offers best-in-class execution at reasonable valuations. Position sizing should reflect commodity volatility appropriate for energy sector exposure.

Conclusion

Diamondback is a BUY for energy investors seeking best-in-class Permian Basin exposure with shareholder-friendly capital allocation. The 7x forward P/E provides margin of safety while 5%+ dividend yield compensates for volatility. CEO Travis Stice's track record through multiple cycles supports confidence in execution. Avoid if uncomfortable with oil price risk or fossil fuel exposure. Position sizing should reflect commodity sector volatility.
Bull Case
$210 (40% upside) - Oil above $85, Endeavor synergies exceed guidance, accelerated buybacks
Base Case
$165 (10% upside) - Oil at $75, synergies on track, 5%+ dividend yield sustained
Bear Case
$110 (25% downside) - Oil below $65, synergy delays, variable dividend suspended

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