I analyze oil and gas companies like Diamondback Energy and related companies in my service, Oil & Gas Value Research, where I look for undervalued names in the oil and gas space. I break down everything you need to know about these companies -- the balance sheet, competitive position and development prospects. This article is an example of what I do. But for Oil & Gas Value Research members, they get it first and they get analysis on some companies that is not published on the free site. Interested? Sign u ...

Core Insights - The article discusses the analysis of oil and gas companies, specifically focusing on Diamondback Energy and its competitive position in the market [1][2]. Group 1: Company Analysis - Diamondback Energy's management has recognized that the acquisition phase in the oil and gas sector is coming to an end, indicating a shift in strategy [2]. - The company operates in a cyclical industry characterized by boom and bust cycles, requiring patience and experience for successful investment [2]. Group 2: Investment Opportunities - The focus is on identifying undervalued and under-followed oil companies, as well as out-of-favor midstream companies that present compelling investment opportunities [2]. - The investing group, Oil & Gas Value Research, provides a platform for investors to discuss recent information and share ideas, enhancing the investment decision-making process [2].

With a strong Q4 report just released, I think Diamondback Energy ( FANG ) will be flying very high this year. EPS is overshadowed by an impairment charge that was purely tied to lowerMy name is Andres Veurink and I have been in the financial markets for over a decade at this point, spending the majority of that in a hedge fund here in Rotterdam, working my way up as an analyst. My work relfect rigourious standards as I myself have a very high standard as to what I invest my money in. My preferred sectors t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Zip Code) (Address of principal executive offices) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35700 Diamondback Energy, Inc. (Exact name of registrant as specified in its charter) DE 45-4502447 (I.R.S. Employer Identificatio ...

Since I last reviewed Diamondback Energy, Inc. ( FANG ) back in June, the company’s stock has appreciated by over 17%, posting an appreciable return considering the current dynamics of the market. As the company focused itsAs a detail-oriented investor with a strong foundation in finance and business writing, I focus on analyzing undervalued and disliked companies or industries that have strong fundamentals and good cash flows. I have a particular interest in sectors such as Oil&Gas and consumer goods. Basi ...

Key Takeaways FANG Q4 EPS of $1.74 missed estimates as lower oil and gas prices cut profits and revenues fell 9% Y/Y.Diamondback Energy produced 969,120 BOE/d, up 9.7% year over year, with oil output at 52.9%.FANG generated $1.2B adjusted free cash flow, raised its dividend 5% and outlined 2026 growth plans.Diamondback Energy, Inc. (FANG) reported fourth-quarter 2025 adjusted earnings per share (EPS) of $1.74, which missed the Zacks Consensus Estimate of $1.88. Moreover, the company’s bottom line declined f ...

Core Viewpoint - Diamondback Energy, Inc. is a key player in the U.S. shale industry, recognized for its operational efficiency and strategic capital management, with a positive outlook from Roth Capital maintaining a "Buy" rating and increasing the price target from $164 to $180 [1][6] Financial Performance - The company reported fourth-quarter earnings of $1.74 per share, which was below the consensus estimate of $2.08, leading to a decline in share price [2][6] - Quarterly revenue reached $3.38 billion, surpassing the Street estimate of $3.31 billion but lower than the $3.71 billion from the same period last year [2][6] Operational Efficiency - Diamondback Energy achieved an average oil production of 512.8 thousand barrels per day and a total production of 969.1 thousand barrels of oil equivalent per day, demonstrating strong operational performance [3] - The company generated net cash from operating activities of $2.3 billion and an adjusted free cash flow of $1.2 billion, indicating robust cash flow management [3] Capital Management - The company repurchased 2.90 million shares for approximately $434 million, with a significant portion allocated to repurchases from SGF FANG Holdings, LP [4] - Total return of capital, including stock repurchases and dividends, amounted to $734 million, representing 62% of the adjusted free cash flow, showcasing a commitment to returning capital to shareholders [4] Stock Performance - FANG's stock price is approximately $169.42, reflecting a decrease of about 2.53% or $4.40, with fluctuations between a low of $166.10 and a high of $176 during the day [5] - Over the past year, the stock reached a high of $177.02 and a low of $114, with a market capitalization of approximately $48.54 billion [5]

Financial Data and Key Metrics Changes - In Q4 2025, Viper Energy achieved over $8 billion in mineral acquisitions and significant growth in both absolute and per share metrics, with a 7% increase in oil production per share year-over-year [5][6] - The company reported a pro forma net debt of approximately $1.6 billion, representing just over one turn of leverage after fully repaying a $500 million term loan and outstanding revolver balance [8][10] - The board approved a 15% increase in the base dividend, which now represents about 50% of estimated 2026 free cash flow at $50 WTI [9][10] Business Line Data and Key Metrics Changes - Viper Energy's Permian Basin acreage grew nearly two and a half times, indicating strong operational activity supported by Diamondback Energy and third-party operators [5][6] - The company initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [6] Market Data and Key Metrics Changes - The company has maintained strong third-party activity, capturing about 50% of all third-party operations across the entire basin, despite rig count declines in the Permian [22][23] - The lease bonus income has been strong in 2025, with expectations that 2026 may see similar performance due to proactive management of the asset base [65][66] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow and delivering attractive shareholder returns while pursuing accretive Permian consolidation opportunities [11] - The company emphasizes the importance of mineral ownership, which allows it to benefit from operators' new techniques without incurring capital risk [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position, stating that Viper is better positioned than ever in terms of asset quality and future inventory [6][10] - The management noted that while the first half of 2026 looks promising, the second half may present challenges due to limited visibility on new permits and activity [40][41] Other Important Information - The company returned 90% of available cash during Q4 and is positioned to increase returns to upwards of 100% of cash available for distribution [10] - The relationship with Diamondback Energy remains strategic, with ongoing leasing activities and development plans that align with Viper's interests [14][51] Q&A Session Summary Question: Insights on Viper Energy's ownership in FANG's Barnett position - Management highlighted the benefits of mineral ownership, which allows Viper to accrue benefits from operators' activities without capital risk [13] Question: Outlook on third-party activity and production growth - Management confirmed strong third-party activity with no significant slowdown observed, which supports production growth [22][23] Question: Bid-ask environment for royalty assets - Management noted that while there haven't been many large deals recently, they are ready to pursue larger opportunities when market conditions improve [30][31] Question: 2026 oil guidance and visibility - Management indicated that visibility is better in the first half of 2026, with uncertainty in the second half due to reliance on existing DUCs and permits [40][41] Question: Lease bonus income outlook - Management expressed optimism that 2026 lease bonus income could be similar to 2025, driven by a larger asset base and proactive management [65][66] Question: Repurchase strategy and market conditions - Management discussed the flexibility in capital allocation, balancing between distributions and repurchases based on market conditions [72][73]

Financial Data and Key Metrics Changes - Viper Energy reported over $8 billion in mineral acquisitions during 2025, leading to significant growth in both absolute and per share metrics [3] - The company grew its Permian Basin acreage by nearly 2.5 times year-over-year and increased oil production per share by 7% [3] - Pro forma net debt was approximately $1.6 billion, representing just over 1 turn of leverage after repaying a $500 million term loan and outstanding revolver balance [4] Business Line Data and Key Metrics Changes - The company initiated average daily production guidance for 2026, implying mid-single digit organic production growth from the Q4 2025 exit rate [3] - Viper Energy returned 90% of available cash during Q4 2025 and is positioned to increase returns to upwards of 100% of cash available for distribution [5] Market Data and Key Metrics Changes - The company has not observed a slowdown in third-party activity, capturing about 50% of all activity across the entire basin [20] - The guidance for production growth is based on existing DUCs and permits, with visibility expected to improve as new wells are permitted [38] Company Strategy and Development Direction - Viper Energy is focused on generating strong free cash flow and delivering attractive shareholder returns while pursuing accretive Permian consolidation opportunities [6] - The company has approved a 15% increase in its base dividend and a $1 billion increase in share repurchase authorization, reflecting confidence in long-term cash generation [4] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the Permian Basin, indicating that larger operators continue to grow and that concerns about reductions in activity have quieted [75] - The company is well-positioned to benefit from the ongoing development of deeper zones and the resilience of third-party operators [20][21] Other Important Information - The company is leveraging technology and automation to manage a large number of leases and production data effectively, which is expected to enhance shareholder value [65] - The relationship with Diamondback Energy remains strategic, with ongoing leasing activities and development plans that align with Viper's interests [10][50] Q&A Session Summary Question: How does Viper Energy's ownership translate across FANG's Barnett position? - Management highlighted the benefits of mineral ownership, stating that operators' new techniques and zones accrue benefits to mineral owners without additional capital risk [9] Question: Will the return of capital strategy remain consistent? - Management indicated that the base dividend will remain a priority, with flexibility to adjust based on market conditions and stock price [12][14] Question: What is the outlook for third-party activity? - Management confirmed that third-party activity remains strong, with no significant slowdown observed [20] Question: How does the company view the current market for royalty assets? - Management noted that while there haven't been many large deals recently, they are ready to pursue larger opportunities when market conditions improve [26][28] Question: What is the outlook for lease bonus income in 2026? - Management suggested that lease bonus income could remain similar to 2025 levels, driven by proactive management and the larger asset base [64] Question: How does the company view its oil cut trend? - Management attributed the trend towards lower oil cut to various factors, including improved efficiency in gas systems and the overall performance of the basin [66]

Management repeatedly stressed that the play’s next step is driving costs down as development shifts from delineation to full-field execution. Van’t Hof said Barnett wells are currently around “$1,000 a foot,” and he framed a target of roughly “$800 a foot” as the threshold for returns to become competitive, particularly when paired with higher oil productivity.Chief Engineer Al Barkmann highlighted performance shown in the company’s investor materials, saying Barnett well results stood out versus the core ...