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Diamondback Energy Inc FANG

Morningstar Rating
$204.17 −3.00 (1.45%)
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Company Report

OPEC+ Production Cut Extensions Send Clear Signal That Oil Markets Remain Oversupplied

The complexity of OPEC’s meeting outcome from June 2 should not obscure our view that it continues to operate from a position of weakness in an oversupplied market, pointing to near-term oil price weakness. We anticipate oil prices are more likely to hit $70 a barrel (WTI) and perhaps below $65 by the end of 2024. OPEC has three separate cuts in progress at the moment, totaling 5.86 million barrels per day. A groupwide cut of about 2 million barrels per day was originally set to expire at the end of 2024 but was extended to the end of 2025. Similarly, a 1.7 million barrels per day voluntary cut by certain members was also extended to the end of 2025 from the end of 2024. Finally, a second 2.2 million barrels per day voluntary cut by certain members was extended in full for another quarter, as it was due to expire at the end of June, before gradually being phased out by September 2025. Undervalued options have been harder to find in the energy space recently, but we favor SLB, Enbridge, TC Energy, APA, and Exxon Mobil.

Price vs Fair Value

FANG is trading within a range we consider fairly valued.
Price
$207.17
Fair Value
$244.00
Uncertainty
High
1-Star Price
$466.70
5-Star Price
$125.30
Economic Moat
Ynsfnmq
Capital Allocation
Qyrgnxjps

Bulls Say, Bears Say

Bulls

Diamondback is one of the lowest-cost oil producers operating in the United States.

Bears

Well productivity could decline when the best acreage is exhausted, pushing up break-evens over time.

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News

Trading Information

Previous Close Price
$207.17
Day Range
$203.43208.65
52-Week Range
$134.68211.96
Bid/Ask
$204.17 / $204.75
Market Cap
$36.41 Bil
Volume/Avg
1.1 Mil / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
11.16
Price/Sales
4.29
Dividend Yield (Trailing)
4.47%
Dividend Yield (Forward)
4.47%
Total Yield
6.12%

Company Profile

Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.
Sector
Energy
Industry
Oil & Gas E&P
Stock Style Box
Mid Value
Total Number of Employees
1,023

Competitors

Valuation

Metric
FANG
DVN
OXY
Price/Earnings (Normalized)
11.168.6019.00
Price/Book Value
2.182.422.42
Price/Sales
4.291.972.17
Price/Cash Flow
6.494.505.36
Price/Earnings
FANG
DVN
OXY

Financial Strength

Metric
FANG
DVN
OXY
Quick Ratio
0.870.860.52
Current Ratio
0.921.040.95
Interest Coverage
25.7112.346.61
Quick Ratio
FANG
DVN
OXY

Profitability

Metric
FANG
DVN
OXY
Return on Assets (Normalized)
11.70%14.30%4.28%
Return on Equity (Normalized)
20.54%29.77%14.61%
Return on Invested Capital (Normalized)
14.66%20.25%7.35%
Return on Assets
FANG
DVN
OXY
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Oil & Gas E&P Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
ConocoPhillips
COP
DmsbwxcrnVtqdm$132.7 Bil
EOG Resources Inc
EOG
DbmlxsjsWmkqjgh$73.7 Bil
Occidental Petroleum Corp
OXY
HhpbbymwSydrl$54.5 Bil
Hess Corp
HES
CscpjdxfhZjssf$45.5 Bil
Devon Energy Corp
DVN
DwcqwxjxVbwklf$29.1 Bil
EQT Corp
EQT
BtfpmrqjClr$16.4 Bil
Marathon Oil Corp
MRO
XvsgbhgkJnjds$16.0 Bil
APA Corp
APA
VldxdwzmQmftf$11.1 Bil
Antero Resources Corp
AR
VxrqfrlvJvrs$10.1 Bil

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