Diamondback EnergySTU:7DB -1.62%65 Interest Coverage is 24.06 as of Mar. 2026, which is 60% above its 10-year median of 15.01. GuruFocus rates STU:7DB with a GF Score™ of 65/100 and a GF Value™ of €163.69 (Fairly Valued). The stock has 6 warning signs investors should review. Among 731 Oil & Gas companies, Diamondback Energy ranks better than 70.31% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Diamondback Energy's
Operating Income
for the
three
months ended in Mar. 2026 was €1,311 Mil. Diamondback Energy's Interest Expense for the
three
months ended in Mar. 2026 was €-54 Mil.
Diamondback Energy's interest coverage for the quarter that ended in Mar. 2026 was 24.06.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Diamondback Energy's Interest Coverage or its related term are showing as below:
STU:7DB'
s Interest Coverage Range Over the Past 10 Years
Min: 2.79 Med: 15.01 Max: 44.07
Current: 16.4
STU:7DB's Interest Coverage is ranked better than 70.31% of 731
companies
in the Oil & Gas industry
Industry Median: 5.89
vs STU:7DB: 16.40
Diamondback Energy (STU:7DB) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Diamondback Energy Interest Coverage Related Terms
Diamondback Energy Interest Coverage Historical Data
* Premium members only.
The historical data trend for Diamondback Energy's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
STU:7DB vs OXY, DVN, EOG: Interest Coverage Comparison
For the Oil & Gas E&P subindustry, Diamondback Energy's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diamondback Energy Interest Coverage vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Diamondback Energy's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Diamondback Energy's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Diamondback Energy (STU:7DB) has a Interest Coverage of 24.06 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Diamondback Energy and its competitors. This is 60% above median its historical median of 15.01. Over the past decade, Diamondback Energy's Interest Coverage has ranged from 2.79 to 44.07. According to the industry distribution chart, Diamondback Energy ranks #217 out of 731 companies in the Oil & Gas industry, placing it in the top 29.7%.
Is Diamondback Energy's Interest Coverage too high?
Diamondback Energy's current Interest Coverage of 24.06 is 60% above median its 10-year median of 15.01. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 44.07. The Oil & Gas industry median Interest Coverage is 5.89. Diamondback Energy's value of 24.06 is 308.5% above this industry median. Based on the distribution chart, Diamondback Energy ranks #217 out of 731 companies in the Oil & Gas industry, which is above the industry midpoint. Overall, Diamondback Energy has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Diamondback Energy's Interest Coverage compare to OXY and DVN?
According to the Oil & Gas industry distribution chart, Diamondback Energy ranks #217 out of 731 companies for Interest Coverage. This puts Diamondback Energy in the upper half of its industry. The industry median Interest Coverage is 5.89. Diamondback Energy's value of 24.06 is 308.5% above this benchmark. Historically, Diamondback Energy's own Interest Coverage has ranged from 2.79 to 44.07 over the past decade. While the company's 10-year median is 15.01 vs. the industry median of 5.89, Diamondback Energy has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Oil & Gas company?
The median Interest Coverage among Oil & Gas companies is 5.89, based on 731 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondback Energy's current Interest Coverage of 24.06 is 308.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Diamondback Energy and its competitors. For the Oil & Gas industry, the median Interest Coverage is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondback Energy's current Interest Coverage is 24.06, which is 60% above median its own 10-year median of 15.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondback Energy stock overvalued right now?
Based on GuruFocus' analysis, Diamondback Energy (STU:7DB) is currently considered Fairly Valued. The stock's GF Value™ is €163.69, compared to a current price of €157.58 — trading 3.7% below its estimated fair value. The current Interest Coverage is 24.06, which is 60% above median its 10-year median of 15.01 and 308.5% above the Oil & Gas industry median of 5.89. Diamondback Energy's overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Diamondback Energy (STU:7DB), the current Interest Coverage is 24.06 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diamondback Energy (STU:7DB) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondback Energy stock appears to be undervalued.
The current stock price of €157.58 is trading 3.7% below its estimated GF Value™ of €163.69.
GuruFocus considers Diamondback Energy to be Fairly Valued.
Key valuation signals for STU:7DB:
Interest Coverage: 24.06 (60% above median its 10-year median of 15.01)
GF Value™: €163.69 vs. price of €157.58 (3.7% below fair value)
Industry Position: 308.5% above the Oil & Gas median (#217 of 731)
No single metric tells the full story. See the STU:7DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondback is a crude oil and natural gas exploration and production firm whose operations represent a pure-play in the US Permian Basin. The company went public in 2012 and has established itself as a top-tier independent producer through disciplined acquisition and operational excellence. The company's most transformational transaction occurred in September 2024 with the completion of its $26 billion merger with Endeavor Energy Resources, which added around 470,000 net acres and doubled Diamondback's total acreage position. Diamondback boasts an enviable position in the Midland sub-basin, with some of the lowest unit costs among its Permian peers.
65GF Score
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