Diamondback Energy Earnings Preview: What to Expect

Company Overview - Diamondback Energy, Inc. (FANG) is an independent oil and natural gas company based in Midland, Texas, with a market capitalization of $43.3 billion. The company focuses on acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas [1]. Earnings Expectations - Analysts anticipate that FANG will report a profit of $2.41 per share on a diluted basis for the fiscal fourth quarter of 2025, representing a decline of 33.8% from $3.64 per share in the same quarter last year [2]. - For the full fiscal year, analysts expect FANG to report an EPS of $12.88, down 22.3% from $16.57 in fiscal 2024, with a further decline to $10.19 expected in fiscal 2026, a year-over-year decrease of 20.9% [3]. Stock Performance - FANG's stock has underperformed the S&P 500 Index, which gained 16.9% over the past 52 weeks, with FANG shares down 15.5% during the same period. The stock also lagged behind the Energy Select Sector SPDR Fund, which saw a gain of 2.3% [4]. - The underperformance is attributed to weaker oil pricing, with the company's realized oil price decreasing by 11.7% to $64.60 per barrel. Management has prioritized debt reduction and cash returns over increasing output, resulting in flat oil volumes [5]. Recent Financial Results - On November 3, 2025, FANG reported its Q3 results, with an adjusted EPS of $3.08, exceeding Wall Street expectations of $2.85. The company's revenue reached $3.9 billion, surpassing forecasts of $3.5 billion [5]. Analyst Ratings - The consensus opinion among analysts on FANG stock is bullish, with a "Strong Buy" rating overall. Out of 32 analysts, 26 recommend a "Strong Buy," three suggest a "Moderate Buy," and three give a "Hold." The average analyst price target for FANG is $180, indicating a potential upside of 19% from current levels [6].