Diamondback Energy, Inc. (FANG) AI Stock Analysis

Diamondback Energy, Inc. is an independent oil and natural gas company that focuses on the acquisition, development, exploration, and exploitation of unconventional onshore reserves in the Permian Basin. It targets the Spraberry and Wolfcamp formations within the Midland Basin, as well as the Wolfcamp and Bone Spring formations in the Delaware Basin across West Texas and New Mexico. As of December 31, 2021, the company held approximately 524,700 gross acres in the Permian Basin with estimated proved reserves of 1,788,991 thousand barrels of crude oil equivalent. It also owns midstream infrastructure, including 866 miles of crude oil gathering pipelines and integrated water systems.

Over the past five fiscal years, Diamondback Energy achieved a revenue compound annual growth rate of 39.8%. Annual revenue rose from $6.75B in FY2021 to $9.57B in FY2022, before falling to $8.34B in FY2023. Revenue expanded to $11.02B in FY2024 and reached $15.03B in FY2025. Net income was $1.66B in FY2025, yielding a net margin of 11.1%, down from 32.3% in FY2021. In the trailing twelve months, revenue reached $16.25B with an operating margin of 48.5%. For the latest quarter ended June 30, 2026, quarterly revenue increased 52.5% year-over-year, while quarterly earnings grew 179.5%.

As of June 30, 2026, Diamondback Energy held $462.0M in cash and short-term investments against $12.61B in total debt, resulting in net debt of $12.15B. Shareholders' equity stood at $37.90B, yielding a debt-to-equity ratio of 0.33 and a current ratio of 0.47. In FY2025, operating cash flow reached $8.76B and free cash flow was $5.24B. The company allocated $3.52B to capital expenditures, $2.01B to share buybacks, and paid $1.16B in dividends.

Diamondback Energy trades at a trailing price-to-earnings multiple of 38.8x and a forward price-to-earnings ratio of 10.0x, with an enterprise value of $64.14B and market capitalization of $57.11B. Its valuation reflects an enterprise value-to-revenue ratio of 3.8x and an enterprise value-to-EBITDA of 8.7x. The company's shares closed at $203.95 on October 16, 2026, delivering a 1-year return of 49.8% and a 5-year return of 132.8%, outperforming the S&P 500 (SPY) gains of 16.8% and 83.0% over the respective periods.

Diamondback Energy pays a quarterly dividend with an annualized forward payout of $4.40 per share, yielding 2.16%. The dividend has been paid for 9 consecutive years and grew at an annualized rate of 21.7% over 5 years. Its payout ratio stands at 27.4%, and the last ex-dividend date was August 13, 2026.

Wall Street analysts hold 21 Strong Buy, 6 Buy, and 5 Hold ratings on the stock, with zero Sell or Strong Sell recommendations. The mean price target is $236.97, representing a 16.2% premium over the last close of $203.95. For the fiscal year ending December 31, 2026, analysts project revenue of $19.33B and EPS of $21.92, an estimated EPS growth of 63.9%. The company beat EPS estimates in 3 of the last 4 quarters, with next earnings scheduled for November 2, 2026.

This page is an AI-written research summary of Diamondback Energy, Inc. (FANG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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