Diamondback Energy Intrinsic Value – Diamondback Energy Pioneers Midland Before It Was Trendy
December 14, 2023
☀️Trending News
Diamondback Energy ($NASDAQ:FANG) is a pioneer in many ways, but especially when it comes to their chosen home. Long before Midland was trendy, Diamondback Energy had established their presence in the city. They are a premier independent oil and natural gas company engaged in the acquisition, development, exploration and exploitation of unconventional resource plays. Diamondback Energy has quickly become one of the fastest-growing and most-respected energy companies in the shale oil and gas industry. They are focused on growing their reserves and production through horizontal drilling of multiple stacked pay zones in the Permian Basin and South Texas.
Through their dedication to innovation and safety, Diamondback Energy has established itself as a leader in the midstream and upstream industry. Their strong record for operational success, financial strength, and a commitment to return value to shareholders has made Diamondback Energy an attractive stock choice for investors. With increased attention being placed on Midland, Diamondback Energy stands out as a company that was there before it was trendy.
Share Price
On Tuesday, DIAMONDBACK ENERGY opened at $148.3 and closed at $147.9, down by 1.1% from its previous closing price of 149.5. This minor dip in stock prices is hardly befitting of the company that has been pioneering the Midland oilfields for years before it was trendy. It is a company that has been on the cutting edge of the oil industry in Midland for a long time now, and Tuesday’s dip in stock prices is just a minor setback. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Diamondback Energy. More…
| Total Revenues | Net Income | Net Margin |
| 8.13k | 3.19k | 41.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Diamondback Energy. More…
| Operations | Investing | Financing |
| 5.74k | -3.24k | -1.7k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Diamondback Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 28.05k | 11.06k | 91.04 |
Key Ratios Snapshot
Some of the financial key ratios for Diamondback Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 37.3% | 90.1% | 54.4% |
| FCF Margin | ROE | ROA |
| 12.4% | 17.4% | 9.9% |
Analysis – Diamondback Energy Intrinsic Value
At GoodWhale, we have conducted an analysis of DIAMONDBACK ENERGY‘s financials. Our proprietary Valuation Line has found that the intrinsic value of DIAMONDBACK ENERGY’s share is around $126.4. Despite this, DIAMONDBACK ENERGY’s stock is currently being traded at $147.9, a price that is overvalued by 17.0%. More…
Peers
The oil and gas industry is a highly competitive sector with many firms vying for market share. Among the top competitors in this industry are Diamondback Energy Inc, Pioneer Natural Resources Co, Hess Corp, and Continental Resources Inc. All of these companies are engaged in a fierce battle to gain an advantage over the others in terms of production, reserves, and market share. While each company has its own strengths and weaknesses, they all share one common goal: to be the leading firm in the oil and gas industry.
– Pioneer Natural Resources Co ($NYSE:PXD)
Pioneer Natural Resources Co is an oil and gas exploration and production company with operations in the United States, South Africa, and Trinidad and Tobago. The company has a market cap of 58.25B as of 2022 and a return on equity of 21.22%. Pioneer Natural Resources is engaged in the business of exploring for, developing, and producing oil and gas properties. The company was founded in 1997 and is headquartered in Irving, Texas.
– Hess Corp ($NYSE:HES)
Hess Corp is an American oil and gas company with a market cap of 38.67B as of 2022. The company has a Return on Equity of 29.47%. Hess Corp is involved in the exploration, production, transportation, and sale of crude oil and natural gas. The company also has refining and marketing operations.
– Continental Resources Inc ($NYSE:CLR)
Continental Resources, Inc. is an oil and natural gas exploration and production company with operations in the United States. The company has a market cap of $26.51 billion and a return on equity of 30.54%. Continental Resources is engaged in the exploration, development and production of crude oil and natural gas. The company’s operations are primarily focused in the Bakken and Three Forks shale plays in the Williston Basin in North Dakota and Montana.
Summary
Diamondback Energy is a leading independent oil and natural gas company based in Midland, Texas. The company focuses on the acquisition, development and exploration of unconventional, onshore oil and natural gas reserves in the Permian Basin. Its asset base is concentrated in the Wolfcamp, Spraberry, Clearfork and Cline formations. Diamondback has a strong track record of investing heavily in the development of its assets, with an emphasis on horizontal drilling and completions optimization. The company’s operations are designed to maximize value creation and generate long-term shareholder returns.
In addition, Diamondback strives to be a leader in responsible energy development by emphasizing safety, environmental stewardship and corporate responsibility.
