Diamondback Energy Stock Intrinsic Value – Diamondback Energy Shares Slump 0.44% to $144.35 on Rough Trading Day
July 29, 2023
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Diamondback Energy ($NASDAQ:FANG) Inc., an independent oil and natural gas company based in Midland, Texas, experienced a 0.44% decrease in its share prices on Thursday, with its shares closing at $144.35. This came on a rough day for the stock market, as volatility and changing investor sentiment caused a difficult trading environment. Diamondback Energy Inc. focuses on the acquisition, exploration, and development of onshore oil and natural gas reserves in the Permian Basin area of West Texas. The company’s operations include horizontal drilling and completion activities in various target horizons within the Spraberry, Wolfcamp, Cline, Bone Spring, and Wolfberry formations.
Additionally, Diamondback Energy Inc. has acquired additional acreage in the Delaware Basin. This has enabled the company to expand its operations and increase its production capabilities.
Analysis – Diamondback Energy Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of DIAMONDBACK ENERGY‘s financials. Our proprietary Valuation Line has calculated the intrinsic value of DIAMONDBACK ENERGY share to be around $129.2. While the stock is currently trading at $144.4, this is slightly overvalued by 11.8%. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Diamondback Energy. More…
| Total Revenues | Net Income | Net Margin |
| 9.16k | 4.32k | 48.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Diamondback Energy. More…
| Operations | Investing | Financing |
| 6.5k | -3.89k | -2.72k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Diamondback Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.59k | 11.47k | 85.24 |
Key Ratios Snapshot
Some of the financial key ratios for Diamondback Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 31.8% | 62.5% | 63.6% |
| FCF Margin | ROE | ROA |
| 23.9% | 23.9% | 13.2% |
Peers
The oil and gas industry is a highly competitive sector with many firms vying for market share. Among the top competitors in this industry are Diamondback Energy Inc, Pioneer Natural Resources Co, Hess Corp, and Continental Resources Inc. All of these companies are engaged in a fierce battle to gain an advantage over the others in terms of production, reserves, and market share. While each company has its own strengths and weaknesses, they all share one common goal: to be the leading firm in the oil and gas industry.
– Pioneer Natural Resources Co ($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
Investors in Diamondback Energy Inc. experienced a difficult trading session on Thursday, with the stock closing down 0.44% at $144.35. The stock market overall was sluggish and investors have been cautious about committing to energy stocks due to their relatively volatile performance in recent months. Analysts suggest that the stock may not have bottomed out, as the overall market sentiment appears bearish. Investors will be keeping a close eye on the stock in the coming days to determine whether further declines are in store.
