Diamondback Energy Recent Performance Analysis
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Yahoo Finance
- Price Volatility Analysis: Diamondback Energy (FANG) has experienced a decline of about 1% over the past month, while gaining approximately 7% over the last three months, indicating a coexistence of short-term volatility and long-term growth potential.
- Annual Return Performance: Despite a 5.09% drop in share price in the short term, FANG boasts a year-to-date return of 26.44% and a total shareholder return of 40.57% over the past year, demonstrating the company's resilience and attractiveness in the market.
- Valuation and Market Expectations: With a current share price of $192.62, the market suggests a fair value near $232, indicating a 17% undervaluation that reflects strong expectations for medium-term cash flow and margin strength.
- Operational Efficiency Improvements: The company has consistently enhanced operational efficiency through optimized drilling times and workover programs, supporting stable net margins and robust free cash flow even in a volatile oil price environment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy FANG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on FANG
Wall Street analysts forecast FANG stock price to fall
19 Analyst Rating
18 Buy
1 Hold
0 Sell
Strong Buy
Current: 202.940
Low
158.00
Averages
180.94
High
218.00
Current: 202.940
Low
158.00
Averages
180.94
High
218.00
About FANG
Diamondback Energy, Inc. is an independent oil and natural gas company, focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. The Company's activities are primarily directed at the horizontal development of the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin within the Permian Basin. Its subsidiary, Viper Energy, Inc., focuses on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin. The Company has approximately 890,496 net acres, which primarily consists of 797,074 net acres in the Midland Basin and 93,422 net acres in the Delaware Basin. Its subsidiaries include Diamondback E&P LLC, Rattler Midstream GP LLC, Rattler Midstream LP, Diamondback RE Holdco LLC, Eclipse Merger Sub II, LLC, and QEP Resources, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Diamondback Energy Recent Performance Analysis
- Price Volatility Analysis: Diamondback Energy (FANG) has experienced a decline of about 1% over the past month, while gaining approximately 7% over the last three months, indicating a coexistence of short-term volatility and long-term growth potential.
- Annual Return Performance: Despite a 5.09% drop in share price in the short term, FANG boasts a year-to-date return of 26.44% and a total shareholder return of 40.57% over the past year, demonstrating the company's resilience and attractiveness in the market.
- Valuation and Market Expectations: With a current share price of $192.62, the market suggests a fair value near $232, indicating a 17% undervaluation that reflects strong expectations for medium-term cash flow and margin strength.
- Operational Efficiency Improvements: The company has consistently enhanced operational efficiency through optimized drilling times and workover programs, supporting stable net margins and robust free cash flow even in a volatile oil price environment.
See More
Mixed Close for US Stocks as Oil Prices Plunge
- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
See More
US Stocks Close Higher: S&P 500 Hits All-Time High
- Market Performance: The S&P 500 rose by 0.61% and the Nasdaq 100 increased by 1.76%, reaching all-time highs, indicating strong demand for tech stocks amid falling oil prices and progress in US-Iran peace talks.
- Oil Price Volatility: WTI crude oil prices fell to a 2.5-week low as US-Iran negotiations aimed at reopening the Strait of Hormuz progressed, although military actions by US Central Command pressured market sentiment, leading to declines in energy stocks.
- Economic Data Impact: The Chicago Fed National Activity Index rose to a 13-month high of 0.14, surpassing expectations, while a slight decline in the consumer confidence index reflects the complexities of economic recovery, potentially influencing future market trends.
- Earnings Reports: As of Tuesday, 83% of the 475 S&P 500 companies reported earnings above expectations, with Q1 earnings projected to grow by 12% year-on-year, although excluding the tech sector, the increase is only 3%, highlighting disparities across industries.
See More
Matador Resources Expands Delaware Basin Footprint
- Major Expansion: Matador Resources Company has significantly enhanced its position in the Delaware Basin by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion, which is expected to add 141 new drilling opportunities, thereby improving production efficiency and lowering costs.
- Infrastructure Utilization: The newly acquired acreage is strategically located adjacent to Matador's existing operated units, allowing the company to leverage its established infrastructure, with expectations of increased output through longer two-mile wells, shared infrastructure, and enhanced natural gas transportation capacity.
- Financial Outlook: Matador anticipates nearly $1.2 billion in adjusted free cash flow by 2026, with plans to substantially reduce acquisition-related debt by year-end 2026 and fully repay its reserve-based lending facility in the first half of 2027, indicating strong financial health.
- Market Environment: With West Texas Intermediate prices surpassing $90 per barrel, Matador and its peers, including Diamondback Energy and Exxon Mobil, are benefiting from a favorable pricing environment, further solidifying their competitive positions in the market.
See More
Investment Opportunities in Devon and Diamondback Energy Amidst Geopolitical Tensions
- Market Supply Warning: ExxonMobil CEO Darren Woods warns that the market is not fully recognizing the supply disruptions from the geopolitical conflict in the Middle East, suggesting that even after the conflict ends, it may take a long time for energy markets to normalize, potentially affecting investor confidence in energy stocks.
- Devon Energy Cash Flow Outlook: Devon Energy indicates that if West Texas Intermediate (WTI) crude reaches $90 per barrel, its free cash flow yield is projected at 15%, and if it rises to $100, the yield increases to 18%, highlighting the significant impact of high oil prices on its financial performance.
- Diamondback Energy Stability: Although Diamondback Energy did not provide detailed figures, it noted that at $90 WTI, its free cash flow yield could also reach 15%, demonstrating its profit potential during rising oil prices, and both companies being U.S.-based mitigates production risks from Middle Eastern conflicts.
- Long-Term Demand Outlook: The Middle East conflict may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term catalyst for both Devon and Diamondback that extends beyond the current industry upheaval.
See More
ExxonMobil CEO Warns of Prolonged Energy Market Disruptions
- Supply Disruption Warning: ExxonMobil CEO Darren Woods warns that the current supply disruptions due to geopolitical conflicts in the Middle East may last longer than expected, indicating that the market has not fully recognized this issue, which could affect investor confidence and market stability.
- Oil Price Impact Analysis: Devon Energy states that if West Texas Intermediate (WTI) crude reaches $90, its free cash flow yield is projected at 15%, and if oil prices rise to $100, the yield increases to 18%, highlighting the significant impact of rising oil prices on its financial performance.
- Geopolitical Risk Avoidance: Both Devon and Diamondback Energy are U.S.-based companies, meaning their production is unaffected by geopolitical conflicts, allowing investors to benefit from rising oil and gas prices without the uncertainties of geopolitical risks, enhancing their investment appeal.
- Long-Term Demand Outlook: The conflict in the Middle East may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term growth catalyst for both Devon and Diamondback, despite the likelihood of future oil price declines.
See More
Diamondback Energy Recent Performance Analysis
- Price Volatility Analysis: Diamondback Energy (FANG) has experienced a decline of about 1% over the past month, while gaining approximately 7% over the last three months, indicating a coexistence of short-term volatility and long-term growth potential.
- Annual Return Performance: Despite a 5.09% drop in share price in the short term, FANG boasts a year-to-date return of 26.44% and a total shareholder return of 40.57% over the past year, demonstrating the company's resilience and attractiveness in the market.
- Valuation and Market Expectations: With a current share price of $192.62, the market suggests a fair value near $232, indicating a 17% undervaluation that reflects strong expectations for medium-term cash flow and margin strength.
- Operational Efficiency Improvements: The company has consistently enhanced operational efficiency through optimized drilling times and workover programs, supporting stable net margins and robust free cash flow even in a volatile oil price environment.
See More
Mixed Close for US Stocks as Oil Prices Plunge
- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
See More
US Stocks Close Higher: S&P 500 Hits All-Time High
- Market Performance: The S&P 500 rose by 0.61% and the Nasdaq 100 increased by 1.76%, reaching all-time highs, indicating strong demand for tech stocks amid falling oil prices and progress in US-Iran peace talks.
- Oil Price Volatility: WTI crude oil prices fell to a 2.5-week low as US-Iran negotiations aimed at reopening the Strait of Hormuz progressed, although military actions by US Central Command pressured market sentiment, leading to declines in energy stocks.
- Economic Data Impact: The Chicago Fed National Activity Index rose to a 13-month high of 0.14, surpassing expectations, while a slight decline in the consumer confidence index reflects the complexities of economic recovery, potentially influencing future market trends.
- Earnings Reports: As of Tuesday, 83% of the 475 S&P 500 companies reported earnings above expectations, with Q1 earnings projected to grow by 12% year-on-year, although excluding the tech sector, the increase is only 3%, highlighting disparities across industries.
See More
Matador Resources Expands Delaware Basin Footprint
- Major Expansion: Matador Resources Company has significantly enhanced its position in the Delaware Basin by acquiring 5,154 net undeveloped acres in Southeast New Mexico for $1.1 billion, which is expected to add 141 new drilling opportunities, thereby improving production efficiency and lowering costs.
- Infrastructure Utilization: The newly acquired acreage is strategically located adjacent to Matador's existing operated units, allowing the company to leverage its established infrastructure, with expectations of increased output through longer two-mile wells, shared infrastructure, and enhanced natural gas transportation capacity.
- Financial Outlook: Matador anticipates nearly $1.2 billion in adjusted free cash flow by 2026, with plans to substantially reduce acquisition-related debt by year-end 2026 and fully repay its reserve-based lending facility in the first half of 2027, indicating strong financial health.
- Market Environment: With West Texas Intermediate prices surpassing $90 per barrel, Matador and its peers, including Diamondback Energy and Exxon Mobil, are benefiting from a favorable pricing environment, further solidifying their competitive positions in the market.
See More
Investment Opportunities in Devon and Diamondback Energy Amidst Geopolitical Tensions
- Market Supply Warning: ExxonMobil CEO Darren Woods warns that the market is not fully recognizing the supply disruptions from the geopolitical conflict in the Middle East, suggesting that even after the conflict ends, it may take a long time for energy markets to normalize, potentially affecting investor confidence in energy stocks.
- Devon Energy Cash Flow Outlook: Devon Energy indicates that if West Texas Intermediate (WTI) crude reaches $90 per barrel, its free cash flow yield is projected at 15%, and if it rises to $100, the yield increases to 18%, highlighting the significant impact of high oil prices on its financial performance.
- Diamondback Energy Stability: Although Diamondback Energy did not provide detailed figures, it noted that at $90 WTI, its free cash flow yield could also reach 15%, demonstrating its profit potential during rising oil prices, and both companies being U.S.-based mitigates production risks from Middle Eastern conflicts.
- Long-Term Demand Outlook: The Middle East conflict may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term catalyst for both Devon and Diamondback that extends beyond the current industry upheaval.
See More
ExxonMobil CEO Warns of Prolonged Energy Market Disruptions
- Supply Disruption Warning: ExxonMobil CEO Darren Woods warns that the current supply disruptions due to geopolitical conflicts in the Middle East may last longer than expected, indicating that the market has not fully recognized this issue, which could affect investor confidence and market stability.
- Oil Price Impact Analysis: Devon Energy states that if West Texas Intermediate (WTI) crude reaches $90, its free cash flow yield is projected at 15%, and if oil prices rise to $100, the yield increases to 18%, highlighting the significant impact of rising oil prices on its financial performance.
- Geopolitical Risk Avoidance: Both Devon and Diamondback Energy are U.S.-based companies, meaning their production is unaffected by geopolitical conflicts, allowing investors to benefit from rising oil and gas prices without the uncertainties of geopolitical risks, enhancing their investment appeal.
- Long-Term Demand Outlook: The conflict in the Middle East may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term growth catalyst for both Devon and Diamondback, despite the likelihood of future oil price declines.
See More
