NASDAQ · Energy

Diamondback Energy, Inc.

FANG · Oil & Gas E&P

$183.50

▼ -1.98 (-1.07%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Gross Profit Margin 37.9%

Operating Margin 36.0%

Net Income Margin 0.6%

Fin. Health

F⤢

Years to Pay Off Debt 555.9 yrs

Working Capital vs Long-Term Debt -$15.3B

Working Capital -$2.1B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.42x

Cash Flow

C⤢

Free Cash Flow $581M

CapEx % of Net Income 4988.0%

Owner Earnings $2.6B

Profitability

Gross Profit Margin 37.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 36.0%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 0.6%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 555.9 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$15.3B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital -$2.1B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $581M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 4988.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $2.6B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Diamondback Energy, Inc.

Diamondback Energy, Inc., an independent oil and natural gas company, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas, the United States. The company primarily focuses on the development of the Spraberry and Wolfcamp formations of the Midland Basin; and the Wolfcamp and Bone Spring formations of the Delaware Basin, both of which are part of the Permian Basin in West Texas and New Mexico. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

Market Data

Market Cap $51.6B

Enterprise Value $72.8B

P/E (TTM) 187.24

Dividend Yield 2.24%

Exchange NASDAQ

Key Margins

Gross Profit 37.9%

Operating Margin 36.0%

Net Margin 0.6%

Company Info

Sector Energy

Industry Oil & Gas E&P

Employees 1762

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Diamondback Energy, Inc. at $183.50.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $183.50, the stock trades at a 1101% premium to its Graham Number of $15.28. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	37.9%▲	23.7%•	N/A
Operating Margin %	36.0%▲	23.2%•	N/A
Net Income %	0.6%▲	-43.6%•	N/A
Diluted EPS	0.08▲	-5.11•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$70.1B	$71.1B	N/A
Total Debt	$13.9B▼	$14.9B•	N/A
Working Capital	-$2.1B▲	-$2.7B•	N/A
Years to Pay Debt	555.92	-10.21	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$581M▼	$873M•	N/A
Owner Earnings	$2.6B	$1.4B	N/A
CapEx % of Net Income	4,988.0%	N/A	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	-233,688	-814,895
Tax Rate For Calcs	0	0
Normalized EBITDA	2,808,000	2,535,000
Total Unusual Items	-1,284,000	-3,353,000
Total Unusual Items Excluding Goodwill	-1,284,000	-3,353,000
Net Income From Continuing Operation Net Minority Interest	25,000	-1,458,000
Reconciled Depreciation	1,285,000	1,416,000
Reconciled Cost Of Revenue	2,613,000	2,548,000
EBITDA	1,524,000	-818,000
EBIT	239,000	-2,234,000
Net Interest Income	-63,000	-78,000
Interest Expense	63,000	99,000
Normalized Income	1,075,312	1,080,105
Net Income From Continuing And Discontinued Operation	25,000	-1,458,000
Total Expenses	2,694,000	2,565,000
Total Operating Income As Reported	116,000	-2,782,000
Diluted Average Shares	282,792	285,789
Basic Average Shares	282,792	285,789
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	22,000	-1,458,000
Net Income Common Stockholders	22,000	-1,458,000
Otherunder Preferred Stock Dividend	3,000
Net Income	25,000	-1,458,000
Minority Interests	-119,000	308,000
Net Income Including Noncontrolling Interests	144,000	-1,766,000
Net Income Continuous Operations	144,000	-1,766,000
Tax Provision	32,000	-567,000
Pretax Income	176,000	-2,333,000
Other Income Expense	-1,277,000	-3,031,000
Other Non Operating Income Expenses	7,000	322,000
Special Income Charges	-1,401,000	-3,525,000
Other Special Charges	1,000	-33,000	0
Impairment Of Capital Assets	1,400,000
Restructuring And Mergern Acquisition			30,000
Gain On Sale Of Security	117,000	172,000
Net Non Operating Interest Income Expense	-63,000	-78,000
Interest Expense Non Operating	63,000	99,000
Operating Income	1,516,000	776,000
Operating Expense	81,000	17,000
Other Operating Expenses	2,000	-61,000
Selling General And Administration	79,000	78,000
General And Administrative Expense	79,000	78,000
Other Gand A	57,000	58,000
Salaries And Wages	22,000	20,000	16,000
Gross Profit	1,597,000	793,000
Cost Of Revenue	2,613,000	2,548,000
Total Revenue	4,210,000	3,341,000
Operating Revenue	4,210,000	3,341,000

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	281,312	284,595
Share Issued	281,312	284,595
Net Debt	13,724,000	14,385,000
Total Debt	13,898,000	14,879,000
Tangible Book Value	36,473,000	36,972,000
Invested Capital	50,371,000	51,461,000
Working Capital	-2,112,000	-2,685,000
Net Tangible Assets	36,473,000	36,972,000
Capital Lease Obligations		390,000	354,000
Common Stock Equity	36,473,000	36,972,000
Total Capitalization	49,622,000	50,698,000
Total Equity Gross Minority Interest	42,640,000	42,967,000
Minority Interest	6,167,000	5,995,000
Stockholders Equity	36,473,000	36,972,000
Gains Losses Not Affecting Retained Earnings	-7,000	-7,000
Other Equity Adjustments	-7,000	-7,000
Retained Earnings	4,467,000	4,740,000
Additional Paid In Capital	32,010,000	32,236,000
Capital Stock	3,000	3,000
Common Stock	3,000	3,000
Total Liabilities Net Minority Interest	27,440,000	28,092,000
Total Non Current Liabilities Net Minority Interest	22,624,000	23,492,000
Other Non Current Liabilities	561,000	625,000
Derivative Product Liabilities			106,000
Non Current Deferred Liabilities	8,914,000	9,141,000
Non Current Deferred Taxes Liabilities	8,914,000	9,141,000
Long Term Debt And Capital Lease Obligation	13,149,000	13,726,000
Long Term Debt	13,149,000	13,726,000
Long Term Provisions			573,000
Current Liabilities	4,816,000	4,600,000
Other Current Liabilities	62,000	15,000
Current Debt And Capital Lease Obligation	749,000	1,153,000
Current Capital Lease Obligation		390,000	354,000
Current Debt	749,000	763,000
Other Current Borrowings	749,000	763,000
Pensionand Other Post Retirement Benefit Plans Current		96,000	79,000
Payables And Accrued Expenses	4,005,000	3,336,000
Current Accrued Expenses	848,000	366,000
Interest Payable		187,000	145,000
Payables	3,157,000	2,970,000
Other Payable	1,459,000	1,413,000
Total Tax Payable	517,000	389,000
Income Tax Payable	517,000	149,000
Accounts Payable	1,181,000	1,168,000
Total Assets	70,080,000	71,059,000
Total Non Current Assets	67,376,000	69,144,000
Other Non Current Assets	763,000	523,000
Non Current Deferred Assets			173,000
Non Current Deferred Taxes Assets			173,000
Financial Assets			2,000
Investments And Advances			375,000
Long Term Equity Investment			375,000
Investment Properties
Net PPE	66,613,000	68,621,000
Accumulated Depreciation	-30,461,000	-27,782,000
Gross PPE	97,074,000	96,403,000
Other Properties
Land And Improvements	889,000
Current Assets	2,704,000	1,915,000
Other Current Assets	288,000	7,000
Hedging Assets Current		234,000	168,000
Restricted Cash	2,000	2,000
Prepaid Assets		96,000	74,000
Inventory	79,000	86,000
Receivables	2,161,000	1,386,000
Accounts Receivable	2,161,000	1,386,000
Cash Cash Equivalents And Short Term Investments	174,000	104,000
Cash And Cash Equivalents	174,000	104,000

Cash Flow

	2026	2025	2024
Free Cash Flow	581,000	873,000
Repurchase Of Capital Stock	-548,000	-434,000
Repayment Of Debt	-3,221,000	-3,747,000
Issuance Of Debt	2,525,000	2,020,000
Issuance Of Capital Stock	589,000	0
Capital Expenditure	-1,247,000	-1,470,000
Interest Paid Supplemental Data	7,000
Income Tax Paid Supplemental Data		18,000	414,000
End Cash Position	176,000	106,000
Beginning Cash Position	106,000	552,000
Changes In Cash	70,000	-446,000
Financing Cash Flow	-1,100,000	-2,671,000
Cash Flow From Continuing Financing Activities	-1,100,000	-2,671,000
Net Other Financing Charges	-150,000	-224,000
Cash Dividends Paid	-295,000	-286,000
Common Stock Dividend Paid	-295,000	-286,000
Net Common Stock Issuance	41,000	-434,000
Common Stock Payments	-548,000	-434,000
Common Stock Issuance	589,000	0
Net Issuance Payments Of Debt	-696,000	-1,727,000
Net Short Term Debt Issuance
Short Term Debt Payments
Short Term Debt Issuance
Net Long Term Debt Issuance	-696,000	-1,653,000
Long Term Debt Payments	-3,221,000	-11,895,000
Long Term Debt Issuance	2,525,000	10,242,000
Investing Cash Flow	-658,000	-118,000
Cash Flow From Continuing Investing Activities	-658,000	-118,000
Net Other Investing Changes	589,000	1,352,000
Net PPE Purchase And Sale	-1,247,000	-1,470,000
Purchase Of PPE	-1,247,000	-1,470,000
Operating Cash Flow	1,828,000	2,343,000
Cash Flow From Continuing Operating Activities	1,828,000	2,343,000
Change In Working Capital	-810,000	398,000
Change In Other Working Capital	-131,000	-27,000
Change In Payables And Accrued Expense	100,000	115,000
Change In Payable	100,000	115,000
Change In Account Payable	-257,000	12,000
Change In Tax Payable	287,000	116,000
Change In Income Tax Payable	287,000	116,000
Change In Prepaid Assets			-24,000
Change In Receivables	-779,000	245,000
Changes In Account Receivables	-779,000	248,000
Other Non Cash Items	34,000	-410,000
Stock Based Compensation			16,000
Asset Impairment Charge	1,400,000
Deferred Tax	-242,000	-754,000
Deferred Income Tax	-242,000	-754,000
Depreciation Amortization Depletion	1,285,000	1,416,000
Depreciation And Amortization	1,285,000	1,416,000
Amortization Cash Flow	2,000
Amortization Of Intangibles	2,000
Depreciation	1,283,000	1,423,000
Operating Gains Losses	17,000	-132,000
Earnings Losses From Equity Investments			2,000
Gain Loss On Investment Securities	16,000	-119,000
Net Income From Continuing Operations	144,000	-1,766,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $4.0B ▲ $4.2B +4.4%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 45.0% ▼ 37.9% -7.1pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 37.6% ▼ 36.0% -1.6pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 34.9% ▼ 0.6% -34.3pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$4.2B/qtr (≈$16.8B ann.)

vs > $1.5B annualised revenue

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

0.56x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$581M

vs Positive

Operating Cash Flow

$1.8B

Latest quarter · Buffett's cash reality check

ROIC

1.8%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

1.2x

Net Assets: $42.6B

Asset Context — Oil & Gas E&P

Asset-heavy businesses (energy, industrials, utilities, REITs) have physical assets with real replacement value — book value and Net Assets are more meaningful here than for technology or consumer brand companies. A low Market Cap / Net Assets ratio may indicate genuine undervaluation.

⚠️ Net margin compressed 34.3pp vs same quarter last year. Common causes: one-time charges (restructuring, write-downs, legal settlements), tax rate changes, or rising interest expense. Check the income statement notes before drawing conclusions about operating health.

Peers & Industry

No auto-detected peers for Oil & Gas E&P. You can manually compare FANG against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

27.01%

High — management has strong skin in the game

Return on Equity (ROE)

0.1%

Weak — poor returns on equity

Return on Assets (ROA)

0.0%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$2.0B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-6.6% YoY

Debt is declining — management is deleveraging

Leadership Team

Matthew Kaes Van't Hof

CEO & Director

Age 38

Pay: $3,829,961

15.320% of net income

Jere Thompson III

Executive VP & CFO

Age 36

Pay: $1,382,728

5.531% of net income

Daniel Wesson

Executive VP & COO

Age 40

Pay: $1,862,778

7.451% of net income

David Cannon

Senior Vice President of Geoscience & Technology

Adam Lawlis

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	6.58%	18,506,255
Vanguard Capital Management LLC	4.53%	12,731,585
Wellington Management Group, LLP	4.44%	12,501,304
State Street Corporation	4.28%	12,051,943
Vanguard Portfolio Management LLC	3.45%	9,714,024
JPMORGAN CHASE & CO	2.23%	6,265,298
Boston Partners	2.05%	5,766,947
Geode Capital Management, LLC	1.89%	5,324,534

⚠️ Current ratio below 1 — liquidity risk

Risk Analysis

Beta (Market Risk)

0.39

Low volatility — more stable than the market

Short Interest

5.4% of float

Moderate short interest

Debt-to-Equity

0.33x

Conservative balance sheet — low financial risk

Current Ratio

0.56x

Weak liquidity — current liabilities exceed current assets

52-Week Price Range

Low: $134.30 Current: $183.50 High: $214.51

Currently at 61% of 52-week range

Diamondback Energy, Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis