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Diamondback Energy, Inc. logo

Diamondback Energy, Inc.

Crude Petroleum & Natural Gas

$191.80
+0.06%
Market cap $53.7B

Diamondback is a crude oil and natural gas exploration and production firm whose operations represent a pure-play in the US Permian Basin. The company went public in 2012 and has established itself as a top-tier independent producer through disciplined acquisition and operational excellence.

It is a $53.7B energy company. Revenue grew 21.4% over the last year, it keeps 9¢ of every dollar of sales as profit, and its net debt equals ~1.3 years of free cash flow. It trades at 36.7× earnings — in the most expensive third of its own history.

Location
Midland, TX
Employees
1 762
Sector
Energy
Founded
2007

Skills

Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.

Valuation65Growth50Profitability28Health47Quality35Moat31

Profitability, Health, Quality and Moat lag behind.

Valuation65
  • P/E vs own history82th pct · 0/25
  • FCF yield18.9% · 25/25
  • P/S3.1x · 20/25
  • EV/EBITDA10.2x · 20/25
Growth50
  • Revenue CAGR21.9% · 25/25
  • Net income CAGR-6.6% · 0/25
  • EPS CAGR ~5Yn/a · 0/25
  • Fwd implied growth282.5% · 25/25
Profitability28
  • ROIC3.3% · 5/25
  • ROE3.9% · 5/25
  • Net margin8.6% · 13/25
  • Operating margin7.1% · 5/25
Health47
  • Altman Z1.57 · 10/25
  • Current ratio0.47 · 0/25
  • Interest coverage12.1x · 25/25
  • Net cash / debtD/A 19% · 12/25
Quality35
  • Piotroski F4/9 · 10/25
  • Beneish M1.84 · 0/25
  • FCF conversion272% · 25/25
  • Margin stabilityσ 82.7% · 0/25
Moat31
  • ROIC >12% years3/10 yrs · 6/25
  • Median gross margin91.9% · 25/25
  • FCF-positive yearsn/a · 0/25
  • Worst-year net marginworst -160.6% · 0/25

How the scores work →

Experience

The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.

  1. 2025Acquisition
    The company acquired Double Eagle IV for $3 billion in cash and 6.9 million shares of stock
  2. FY2024Financial
    Revenue crossed $10B
    $11.1B for the year
  3. 2024Acquisition
    The company acquired Endeavor Energy Resources
  4. FY2022Financial
    Best year on record
    $4.39B net income
  5. 2021Acquisition
    The company acquired QEP Resources
  6. FY2018Financial
    Revenue crossed $1B
    $2.18B for the year
  7. 2018Acquisition
    The company acquired the assets of Ajax Resources for $1.25 billion
  8. FY2017Financial
    Turned profitable
    $482M net income after a loss year
  9. 2017Acquisition
    The company acquired assets from Brigham Resources for $2.55 billion
  10. FY2016Financial
    Positive free cash flow every year since
    10-year streak
  11. 2012IPO
    The company became a public company via an initial public offering, issuing 12,500,000 shares of…
  12. 2007Founded
    The company began operations in December 2007 with the acquisition of 4,174 net acres in the Permian Basin

Achievements

Verifiable track record, straight from the reported numbers.

$10 000 invested in 2021 would be worth ~$25 560 today — price return only
$15.0B revenue in FY2025
Revenue up 21.4% year over year
Profitable 5 years in a row
Positive free cash flow 10 years in a row
1 762 employees

Strengths & watch-outs

What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.

Strengths

  • High gross margin (68.0%)
  • Revenue growing 21.4% year over year
  • Strong cash conversion — FCF is 59.3% of revenue
  • Interest covered 12.1× by operating earnings

Watch-outs

  • Altman Z-Score 1.57 — elevated financial-distress risk
  • Loss-making in 2 of the recent years

Qualifications

The basics a company should meet before you research it further. Each check uses the reported numbers.

8 of 11 checks passed
  • Revenue growing+21.4% YoY
  • Profitable$1.47B TTM
  • Profit growing-38.6% YoY
  • Generates cash$10.1B TTM
  • Debt under control~1.3y of cash flow to repay
  • Established company$53.7B market cap
  • Not printing shares+83.0% shares over ~5y
  • Proven track record8/10 profitable years
  • Financially stableAltman Z 1.6 — distress
  • Pays a dividendyield 2.19%
  • Valuation not extremeP/E 36.7
Peer comparisonDiamondback Energy, Inc. vs 6 largest energy peers — cap, P/E, growth and margin side by sideOpen ▾
CompanyMarket capP/ERevenue growthNet marginProfile
FANG this company$53.7B36.7+21.4%8.6%Mixed
XOM ExxonMobil Holdings Corporation$694.0B21.1+9.1%8.9%Mixed
CVX Chevron Corporation$416.8B20.3+10.2%9.6%Mixed
SHEL Shell plc$284.6B11.0-6.1%6.7%Solid
TTE TotalEnergies SE$191.1B10.9-6.8%7.2%Solid
COP ConocoPhillips$161.5B17.4+9.6%14.7%Strained
MPC Marathon Petroleum Corporation$127.8B14.9+15.0%5.6%Strained

Head-to-head: FANG vs XOM · FANG vs CVX · FANG vs SHEL

References

What covering analysts publish about the company — information only, not a recommendation.

Strong buy 9Buy 23Hold 4

Appendix · Financial records

The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.

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Figures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $191.80 · market cap $53.7B.