Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Diamondback Energy, Inc. (FANG)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$386.22 - $1,245.26$624.62
Multi-Stage$252.17 - $275.58$263.66
Blended Fair Value$444.14
Current Price$143.10
Upside210.37%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS69.74%0.00%5.424.965.401.070.810.380.130.000.000.00
YoY Growth--9.28%-8.14%403.85%32.20%110.71%202.70%0.00%0.00%0.00%0.00%
Dividend Yield--3.39%2.49%4.00%0.78%1.10%1.47%0.12%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,196.00
(-) Cash Dividends Paid (M)1,132.00
(=) Cash Retained (M)3,064.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)839.20524.50314.70
Cash Retained (M)3,064.003,064.003,064.00
(-) Cash Required (M)-839.20-524.50-314.70
(=) Excess Retained (M)2,224.802,539.502,749.30
(/) Shares Outstanding (M)290.95290.95290.95
(=) Excess Retained per Share7.658.739.45
LTM Dividend per Share3.893.893.89
(+) Excess Retained per Share7.658.739.45
(=) Adjusted Dividend11.5412.6213.34
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate5.50%6.50%7.50%
Fair Value$386.22$624.62$1,245.26
Upside / Downside169.89%336.49%770.20%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,196.004,468.744,759.215,068.565,398.015,748.885,921.35
Payout Ratio26.98%39.58%52.19%64.79%77.40%90.00%92.50%
Projected Dividends (M)1,132.001,768.842,483.683,283.984,177.835,174.005,477.25

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate8.65%8.65%8.65%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,612.701,627.991,643.28
Year 2 PV (M)2,064.572,103.892,143.59
Year 3 PV (M)2,488.862,560.312,633.11
Year 4 PV (M)2,886.802,997.823,112.01
Year 5 PV (M)3,259.563,417.003,580.46
PV of Terminal Value (M)61,055.0864,004.0667,065.91
Equity Value (M)73,367.5776,711.0680,178.35
Shares Outstanding (M)290.95290.95290.95
Fair Value$252.17$263.66$275.58
Upside / Downside76.22%84.25%92.58%

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