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Diamondback Energy Financial Strength

: 6 (As of Jun. 2022)
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Diamondback Energy has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Diamondback Energy's Interest Coverage for the quarter that ended in Jun. 2022 was 61.81. Diamondback Energy's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.49. As of today, Diamondback Energy's Altman Z-Score is 2.60.


Competitive Comparison

For the Oil & Gas E&P subindustry, Diamondback Energy's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Oil & Gas industry and Energy sector, Diamondback Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's Financial Strength falls into.



Diamondback Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

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:

Diamondback Energy's Interest Expense for the months ended in Jun. 2022 was $-32 Mil. Its Operating Income for the months ended in Jun. 2022 was $1,978 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $5,401 Mil.

Diamondback Energy's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1978/-32
=61.81

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Diamondback Energy's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(55 + 5401) / 11072
=0.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Diamondback Energy has a Z-score of 2.60, indicating it is in Grey Zones. This implies that Diamondback Energy is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.6 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* 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  (NAS:FANG) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Diamondback Energy has the Financial Strength Rank of 6.


Diamondback Energy Financial Strength Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Diamondback Energy Business Description

Diamondback Energy logo
Traded in Other Exchanges
Address
500 West Texas Avenue, Suite 1200, Midland, TX, USA, 79701
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2021, the company reported net proven reserves of 1.8 billion barrels of oil equivalent. Net production averaged about 375,000 barrels per day in 2021, at a ratio of 60% oil, 20% natural gas liquids, and 20% natural gas.
Executives
Mains Stephanie K. director C/O GATES INDUSTRIAL CORPORATION PLC 1144 FIFTEENTH STREET, SUITE 1400 DENVER CO 80202
Brooks Vincent K director 900 POLO CLUB DRIVE AUSTIN TX 78737
Wesson Daniel N officer: Exec. VP - Operations 500 WEST TEXAS AVENUE SUITE 1200 MIDLAND TX 79701
Zmigrosky Matt officer: Exec. VP and General Counsel 500 WEST TEXAS AVENUE, SUITE 1200 MIDLAND TX 79701
Trent Melanie Montague director 2800 POST OAK BLVD. SUITE 5450 HOUSTON TX 7056
Hollis Michael L. officer: President and COO 500 WEST TEXAS SUITE 1225 MIDLAND TX 79701
Van't Hof Matthew Kaes officer: Sr. VP - Strategy & Corp Dev 500 WEST TEXAS SUITE 1200 MIDLAND TX 79701
Molnar Paul officer: Exec. VP Exploration & Bus Dev 500 WEST TEXAS SUITE 1225 MIDLAND TX 79701
Holder Randall J officer: Exec. VP, Gen. Counsel, Sec. 5330 E 31ST STREET TULSA OK 74135
Soliman Jennifer officer: Sr. VP and Chief HR Officer 500 WEST TEXAS SUITE 1200 MIDLAND TX 79701
Hawkins Thomas F. officer: Sr. VP - Land 500 WEST TEXAS SUITE 1200 MIDLAND TX 79701
Dick Teresa L. officer: CFO, Exec. VP, Assist. Sec. 500 WEST TEXAS SUITE 1225 MIDLAND TX 79701
Stice Travis D. director, officer: Chief Executive Officer 500 WEST TEXAS SUITE 1225 MIDLAND TX 79701
Pantermuehl Russell officer: Exec. VP Reservoir Engineering 500 WEST TEXAS SUITE 1225 MIDLAND TX 79701
West Steven E director 411 WEST PUTNAM AVE. SUITE 125 GREENWICH CT 06830

Diamondback Energy Headlines

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