FANGDiamondback Energy
Is the business good?
The checks split: nothing decisive, though margins compressing.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
A balanced mix of margins, efficiency, and leverage. ROE 5% = margin × turnover × leverage.
All from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FANG?
Diamondback Energy earns 1.7% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 7.3 points below what the capital costs: growth destroys value
- Operating margin
- 6.3%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Share count, year on year
- −3.7%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −195% |
| FY2021 | 59% |
| FY2022 | 67% |
| FY2023 | 54% |
| FY2024 | 40% |
| FY2025 | 8.4% |
Details›
- Operating margin12 months to Q2 2026
- 6.3%
- Net margin12 months to Q2 2026
- 8.6%
- Free cash flow margin
- 43%
- Revenue, trailing twelve months
- $17.1B
- Free cash flow, trailing twelve months
- $7.33B
- Net income, trailing twelve months
- $1.47B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 1.7%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Customers and suppliers
Who buys from FANG and who it buys from, as the companies report it.
- Medallion Midstream16%
Share of revenue · FY2025 10-K
- SHELShell plc13%
Share of revenue · FY2025 10-K
- EPDEnterprise Products Partners L.P.12%
Share of revenue · FY2025 10-K
- Vitol11%
Share of revenue · FY2025 10-K
- VNOMViper Energy, Inc.55%
FANG is 55% of its revenue · FY2025 10-K
A company has to disclose every customer behind 10% or more of its revenue. Each share comes from the latest annual report of the company that states it and shows on both companies’ pages; FANG’s own figures are from its FY2025 10-K. Smaller customers and suppliers go unreported.
Oil & Gas E&P
The closest names by size in the same industry