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FANG Diamondback Energy

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.

Company profile

Ticker
FANG
Exchange
CEO
Travis Stice
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
The following entities are the issuer and guarantor of Diamondback Energy • Diamondback E&P LLC ...

FANG stock data

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Calendar

5 Aug 21
23 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 396M 396M 396M 396M 396M 396M
Cash burn (monthly) (positive/no burn) (positive/no burn) (positive/no burn) 70.08M (positive/no burn) (positive/no burn)
Cash used (since last report) n/a n/a n/a 264.75M n/a n/a
Cash remaining n/a n/a n/a 131.25M n/a n/a
Runway (months of cash) n/a n/a n/a 1.9 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
1 Jul 21 Travis D. Stice Common Stock Sell Dispose S Yes Yes 100 40,000 4M 417,823
8 Jun 21 Teresa L. Dick Common Stock Sell Dispose S No No 90 2,500 225K 60,485
8 Jun 21 Teresa L. Dick Common Stock Sell Dispose S No No 89 2,500 222.5K 62,985
8 Jun 21 Hof Matthew Kaes Van't Common Stock Sell Dispose S No No 89.777 1,100 98.75K 65,943
3 Jun 21 West Steven E Common Stock Grant Acquire A No No 0 2,435 0 14,691
3 Jun 21 Houston David L Common Stock Grant Acquire A No No 0 2,435 0 16,764

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

95.5% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 622 574 +8.4%
Opened positions 118 163 -27.6%
Closed positions 70 57 +22.8%
Increased positions 248 210 +18.1%
Reduced positions 168 142 +18.3%
13F shares
Current Prev Q Change
Total value 15.9B 12.49B +27.3%
Total shares 172.86M 171.28M +0.9%
Total puts 2.87M 2.57M +11.7%
Total calls 9.89M 5.42M +82.6%
Total put/call ratio 0.3 0.5 -38.8%
Largest owners
Shares Value Change
Vanguard 20.65M $1.94B +1.8%
Capital Research Global Investors 14.74M $1.38B -24.0%
BLK Blackrock 12.38M $1.16B +7.1%
STT State Street 11.3M $1.06B +3.6%
BX Blackstone 10.68M $1B 0.0%
Guidon Energy 10.68M $739.64M 0.0%
JPM JPMorgan Chase & Co. 10.33M $969.8M +0.6%
Boston Partners 4.19M $393.12M +10.3%
Geode Capital Management 3.35M $314.28M +3.6%
Harris Associates L P 3.28M $308.08M -0.0%
Largest transactions
Shares Bought/sold Change
Capital Research Global Investors 14.74M -4.66M -24.0%
Arrowstreet Capital, Limited Partnership 13.7K -849.89K -98.4%
BLK Blackrock 12.38M +825.24K +7.1%
Voya Investment Management 934K +611.88K +190.0%
MS Morgan Stanley 1.52M +600.66K +65.6%
FMR 3.06M +565.33K +22.7%
Ceredex Value Advisors 506.88K +506.88K NEW
Westfield Capital Management 480.4K +480.4K NEW
Lord, Abbett & Co. 0 -444.01K EXIT
NTRS Northern Trust 1.98M +401.25K +25.3%

Financial report summary

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Risks
  • Declaration, payment and amounts of dividends, if any, distributed to our stockholders will be uncertain.
  • Our business and operations have been and will likely continue to be adversely affected by the ongoing COVID-19 pandemic.
  • Market conditions for oil and natural gas, and particularly volatility in prices for oil and natural gas, have in the past adversely affected, and may in the future adversely affect, our revenue, cash flows, profitability, growth, production and the present value of our estimated reserves.
  • A significant portion of our net leasehold acreage is undeveloped, and that acreage may not ultimately be developed or become commercially productive, which could cause us to lose rights under our leases as well as have a material adverse effect on our oil and natural gas reserves and future production and, therefore, our future cash flow and income.
  • Our development and exploration operations and our ability to complete acquisitions require substantial capital and we may be unable to obtain needed capital or financing on satisfactory terms or at all, which could lead to a loss of properties and a decline in our oil and natural gas reserves.
  • Our success depends on finding, developing or acquiring additional reserves.
  • Our failure to successfully identify, complete and integrate pending and future acquisitions of properties or businesses could reduce our earnings and slow our growth.
  • We may incur losses as a result of title defects in the properties in which we invest.
  • Our project areas, which are in various stages of development, may not yield oil or natural gas in commercially viable quantities.
  • Our identified potential drilling locations, which are part of our anticipated future drilling plans, are susceptible to uncertainties that could materially alter the occurrence or timing of their drilling.
  • Our acreage must be drilled before lease expiration, generally within three to five years, in order to hold the acreage by production. In a highly competitive market for acreage, failure to drill sufficient wells to hold acreage may result in a substantial lease renewal cost or, if renewal is not feasible, loss of our lease and prospective drilling opportunities.
  • We have entered into commodity price derivatives for a portion of our production. Although we have hedged a portion of our estimated 2021 and 2022 production, we may still be adversely affected by continuing and prolonged declines in the price of oil and may be exposed to other risks, including counterparty credit risk.
  • If production from our Permian Basin acreage decreases due to decreased developmental activities, production related difficulties or otherwise, we may fail to meet our obligations to deliver specified quantities of oil under our oil purchase contract, which will result in deficiency payments to the counterparty and may have an adverse effect on our operations.
  • The inability of one or more of our customers to meet their obligations may adversely affect our financial results.
  • Our method of accounting for investments in oil and natural gas properties may result in impairment of asset value.
  • Our estimated reserves and EURs are based on many assumptions that may turn out to be inaccurate. Any material inaccuracies in these reserve estimates or underlying assumptions will materially affect the quantities and present value of our reserves.
  • The standardized measure of our estimated proved reserves and our PV-10 are not necessarily the same as the current market value of our estimated proved oil reserves.
  • The development of our proved undeveloped reserves may take longer and may require higher levels of capital expenditures than we currently anticipate.
  • Our producing properties are located in the Permian Basin of West Texas, making us vulnerable to risks associated with operating in a single geographic area. In addition, we have a large amount of proved reserves attributable to a small number of producing horizons within this area.
  • We depend upon several significant purchasers for the sale of most of our oil and natural gas production. The loss of one or more of these purchasers could, among other factors, limit our access to suitable markets for the oil and natural gas we produce.
  • The unavailability, high cost or shortages of rigs, equipment, raw materials, supplies, oilfield services or personnel may restrict our operations.
  • Our operations are substantially dependent on the availability of water. Restrictions on our ability to obtain water may have an adverse effect on our financial condition, results of operations and cash flows.
  • We may have difficulty managing growth in our business, which could adversely affect our financial condition and results of operations.
  • We have incurred losses from operations during certain periods since our inception and may do so in the future.
  • Part of our strategy involves drilling in existing or emerging shale plays using the latest available horizontal drilling and completion techniques; therefore, the results of our planned exploratory drilling in these plays are subject to risks associated with drilling and completion techniques and drilling results may not meet our expectations for reserves or production.
  • Conservation measures and technological advances could reduce demand for oil and natural gas.
  • The marketability of our production is dependent upon transportation and other facilities, certain of which we do not control. If these facilities are unavailable, our operations could be interrupted and our revenues reduced.
  • Our operations are subject to various governmental laws and regulations which require compliance that can be burdensome and expensive.
  • Restrictions on drilling activities intended to protect certain species of wildlife may adversely affect our ability to conduct drilling activities in some of the areas where we operate.
  • If third party pipelines or other facilities interconnected to Rattler LLC’s midstream systems become partially or fully unavailable, or if the volumes we gather or treat do not meet the quality requirements of such pipelines or facilities, our midstream operations could be adversely affected.
  • We operate in areas of high industry activity, which may affect our ability to hire, train or retain qualified personnel needed to manage and operate our assets.
  • Drilling for and producing oil and natural gas are high-risk activities with many uncertainties that may result in a total loss of investment and adversely affect our business, financial condition or results of operations.
  • Our development and exploratory drilling efforts and our well operations may not be profitable or achieve our targeted returns.
  • Operating hazards and uninsured risks may result in substantial losses and could prevent us from realizing profits.
  • Our use of 2-D and 3-D seismic data is subject to interpretation and may not accurately identify the presence of oil and natural gas, which could adversely affect the results of our drilling operations.
  • We may not be able to keep pace with technological developments in our industry.
  • We are subject to certain requirements of Section 404 of the Sarbanes-Oxley Act. If we fail to comply with the requirements of Section 404 or if we or our auditors identify and report material weaknesses in internal control over financial reporting, our investors may lose confidence in our reported information and our stock price may be negatively affected.
  • The results of the 2020 U.S. presidential and congressional elections may create regulatory uncertainty for the oil and natural gas industry. Changes in environmental laws could increase our operating costs and adversely impact our business, financial condition and cash flows.
  • Our operations depend heavily on electrical power, internet and telecommunication infrastructure and information and computer systems. If any of these systems are compromised or unavailable, our business could be adversely affected.
  • A terrorist attack or armed conflict could harm our business.
  • We are subject to cyber security risks. A cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss.
  • We have relied in the past, and we may rely from time to time in the future, on borrowings under our revolving credit facility to fund a portion of our capital expenditures. Unless we are able to repay borrowings under the revolving credit facility with cash flow from operations and proceeds from equity or debt offerings, implementing our capital programs may require an increase in our total leverage through additional debt issuances. In addition, a reduction in availability under our revolving credit facility and the inability to otherwise obtain financing for our capital programs could require us to curtail our capital expenditures.
  • Our substantial level of indebtedness could adversely affect our financial condition and prevent us from fulfilling our obligations under our indebtedness.
  • Restrictive covenants in certain of our existing and future debt instruments may limit our ability to respond to changes in market conditions or pursue business opportunities.
  • Our indebtedness is structurally subordinated to the indebtedness and other liabilities of our subsidiaries, and our obligations are not obligations of any of our subsidiaries.
  • Servicing our indebtedness requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial indebtedness.
  • We depend on our subsidiaries for dividends, distributions and other payments.
  • We and our subsidiaries may still be able to incur substantial additional indebtedness in the future, which could further exacerbate the risks that we and our subsidiaries face.
  • Borrowings under our, Viper LLC’s and Rattler LLC’s revolving credit facilities expose us to interest rate risk.
  • The corporate opportunity provisions in our certificate of incorporation could enable affiliates of ours to benefit from corporate opportunities that might otherwise be available to us.
  • We have engaged in the past and may in the future engage in transactions with our affiliates. The terms of such transactions and the resolution of any conflicts that may arise may not always be in our or our stockholders’ best interests.
  • If the price of our common stock fluctuates significantly, your investment could lose value.
  • The declaration of dividends and any repurchases of our common stock are each within the discretion of our board of directors based upon a review of relevant considerations, and there is no guarantee that we will pay any dividends on or repurchase shares of our common stock in the future or at levels anticipated by our stockholders.
  • A change of control could limit our use of net operating losses.
  • If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our stock or if our operating results do not meet their expectations, our stock price could decline.
  • We may issue preferred stock whose terms could adversely affect the voting power or value of our common stock.
  • Provisions in our certificate of incorporation and bylaws and Delaware law make it more difficult to effect a change in control of the company, which could adversely affect the price of our common stock.
Management Discussion
  • ITEM 2.         MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  • We operate in two operating segments: (i) the upstream segment, which is engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas and (ii) through our subsidiary, Rattler, the midstream operations segment, which is focused on ownership, operation, development and acquisition of midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin.
  • On February 26, 2021, we completed the Guidon Acquisition, which included approximately 32,500 net acres in the Northern Midland Basin, in exchange for 10.68 million shares of the Company’s common stock and $375 million of cash.
Content analysis
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