Diamondback Energy (NASDAQ: FANG) is an independent oil and gas company focused on the exploration and production of unconventional, onshore oil and natural gas. The company operates primarily in the Permian Basin in West Texas. Although Diamondback has scaled up production, via its 2018 acquisition of upstream rival Energen, while significantly cutting costs, the stock is down by roughly 20% over the last month. The decline in the stock price mirrors a relatively weak commodity pricing environment. WTI crude prices are down from about $61 per barrel to about $53 per barrel over the last month, with gas price realizations also down in the U.S. on account of strong supply. Below, we take a look at the company’s financial performance over the last few years and what lies ahead.
View our interactive dashboard analysis on Why Is Diamondback Energy Stock Down 20% Over The Last Month?
How does Diamondback Energy’s Revenue Growth 2018 compare with that in prior periods and what’s the forecast?
Total Revenues for Diamondback Energy substantially increased from $1.21 Bil in 2017 to $2.18 Bil in 2018; an increase of 80.6%. The increase was driven by higher price realizations for oil and the closing of the acquisition in November 2018 of Energen, an upstream oil and gas player.
This compares with Total Revenues growth of:
- -9.88% in 2015 compared to 2014
- 18.0% in 2016 compared to 2015
- 129% in 2017 compared to 2016
We expect Total Revenue growth to stand at 88% in 2019, driven by the full-year effect of the Energen deal.
How does Diamondback Energy’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?
Total Expense for Diamondback Energy substantially increased from $708 Mil in 2017 to $1.06 Bil in 2018; an increase of 50.2%, driven by higher production volumes and the Energen deal.
This compares with Total Expense growth of:
- 527% in 2015 compared to 2014
- -42.1% in 2016 compared to 2015
- 2.33% in 2017 compared to 2016
We expect Total Expense growth to be 121% in 2019, driven by the full-year impact of the Energen deal, which is likely to increase costs meaningfully.
How does Diamondback Energy’s EBT in 2018 compare with that in prior periods and what’s the forecast?
EBT for Diamondback Energy increased dramatically by 124% from $497 Mil in 2017 to $1.11 Bil in 2018.
We expect EBT to increase by 57% to $1.8 Bil in 2019.
How do Diamondback Energy’s Net Income and EPS over 2018 compare with that in prior periods and what’s the forecast?
For more details on Diamondback Energy’s Net Income and EPS view our interactive dashboard analysis.
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