Diamondback Energy Inc.

FANG
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.2B
Q1 FY2026 · +32.5% YoY · Beat consensus by 18%
TTM ROIC
15%
FY2025 · FCF-based ROIC (Adjusted FCF / Enterprise Value); book-based ROIC noted as depressed due to Endeavor acquisition · WACC ~9% · Moat spread +6pp

Financial Snapshot


ticker: FANG step: 04 generated: 2026-05-13 source: quick-research

Diamondback Energy, Inc. (FANG) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$8.1B ~$8.4B ~$11.1B +32%
Gross Margin ~65% ~60% ~63%
Operating Margin ~45% ~40% ~35%*
Net Income ~$3.7B ~$3.1B ~$1.7B*
EPS (diluted) ~$20.00 ~$17.00 ~$15.53

FY2024 net income and operating margin depressed by large non-cash impairment charges ($3.65B in Q4 2025 related to Endeavor assets marked at $64 realized oil vs. $80 acquisition assumption). Adjusted/cash earnings substantially higher. FY2024 revenue surged due to Endeavor consolidation (closed late 2024).

Cash Flow & Balance Sheet (FY2024)

Metric Value
Operating Cash Flow ~$8.8B (FY2025 record)
Free Cash Flow ~$4.0B (FY2024); ~$5.9B Adjusted FCF FY2025
Capital Expenditures ~$3.6–$3.9B (FY2026 guidance)
Cash & Equivalents ~$1.0B
Total Debt ~$14.6B (post-Endeavor; down from $18B peak)

Key Ratios (approximate)

  • P/E: ~10–12x (adjusted) | EV/EBITDA: ~6–7x | FCF Yield: ~10–12%
  • Revenue Growth (FY2024): +32% (largely acquisition-driven) | FCF Margin: ~35–40%
  • Base Dividend: $4.20/share annually (+5% raise, February 2026); plus variable dividends + buybacks
  • Shareholder Return Policy: ≥50% of FCF returned to shareholders

Growth Profile

Diamondback's financial profile was transformed by the $26B Endeavor acquisition (closed late 2024), which added 500,000 net acres and roughly doubled production. FY2025 was a record year — $8.8B in net operating cash flow and $5.9B in adjusted FCF — even as commodity prices softened. The company carried significant non-cash impairment charges in Q4 2025 ($3.65B) as Endeavor assets were marked to lower oil price assumptions ($64/bbl realized vs. $80 acquisition model). Post-Endeavor integration, management targets $10B in net debt by year-end 2026 (down from $18B peak), using FCF to rapidly delever.

Forward Estimates

  • FY2026 Oil Production Guidance: 500–510 MBO/d (essentially flat vs. FY2025)
  • FY2026 Capex Guidance: $3.6–$3.9B (disciplined — prioritizing FCF over growth)
  • Oil Price Sensitivity: Each $5/bbl move in WTI = ~$500M in annual FCF impact
  • Analyst consensus: 22/26 analysts Buy/Strong Buy; price targets generally $160–$200+

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $FANG.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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