Reading the tape
NASDAQ: FANG
Diamondback Energy, Inc.
Energy · Oil & Gas Exploration & Production
Market Cap
$60.11B
52w High
$214.51
52w Low
$127.75
P/E
149.95
Volume
2.72M
Outstanding Shares
281.31M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inModerate confidence
1Y Price: 60.57%Revenue (TTM): 18.35%FCF (TTM): 130.13%P/FCF: 88th pct
What changed
The stock rose 60.57% over the last year. Revenue grew 18.35% over the trailing twelve months. Operating margin moved from 38.57% to 21.56%. Free cash flow grew 130.13% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (88th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 21.56% — continued expansion would be needed to justify the premium. Revenue growth of 18.35% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional and onshore oil and natural gas reserves in the Permian Basin in West Texas.
CEOMatthew Kaes Van't Hof
SectorEnergy
IndustryOil & Gas Exploration & Production
Employees1,983
IPO dateOct 12, 2012
Valuation
Forward P/E—
EV/EBITDA8.08
Enterprise value$57.84B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth5.18%
Gross margin48.02%▼22.05%vs FY2024
Operating margin21.56%▼17.93%vs FY2024
ROE4.5%▼49.12%vs FY2024
Analyst consensus
RatingBuy
Target price$201.27▼5.81%
46
Buy
5
Hold
0
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Aug 3, 2026
Q3 FY26 · EPS est $5.11 · Revenue est $4.43B
View
Dividends
$4.05/shareQuarterlyAt RiskFANG pays a dividend with a 1.9% dividend yield, growing at 21.57% annually, covered 4.5× by free cash flow.
Dividend Yield
1.9%
Annual Div / Share
$4.05
5yr CAGR
+21.57%
Doubles every ~3.5yr
Payout Ratio
288.09%
At Risk
Dividend Growth Rate
3yr CAGR
-28.99%
5yr CAGR
+21.57%
Dividend Safety
6/10At Risk
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2025$4.05-34.8%
2024$6.21-23.5%
2023$8.12-28.2%
2022$11.31+480.0%
2021$1.95+27.9%
2020$1.52+62.7%
2019$0.94+87.5%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$19/yr
$2/mo
In 5 yrs
$33/yr+76%
$3/mo
In 10 yrs
$59/yr+211%
$5/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$19/yr $2/mo | $33/yr+76% $3/mo | $59/yr+211% $5/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 1.9% → 5.89% over 10yr
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 4.5× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 21.57% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
High payout ratio
With 288.09% of earnings paid as dividends, there is limited retained earnings for reinvestment — and a dividend cut becomes more likely if earnings decline.