Diamondback Energy, Inc. (FANG), headquartered in Midland, Texas, acquires, develops, explores, and exploits unconventional, onshore oil and natural gas reserves in the Permian Basin. Valued at $51.6 billion by market cap, the company focuses on the Spraberry, Wolfcamp, and Bone Spring formations in the Midland and Delaware Basins. The leading independent oil and gas company is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Monday, Feb. 24.
Ahead of the event, analysts expect FANG to report a profit of $3.33 per share on a diluted basis, down 29.8% from $4.74 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect FANG to report EPS of $15.58, down 13.5% from $18.01 in fiscal 2023. Its EPS is expected to decline 5.1% year over year to $14.78 in fiscal 2025.
FANG stock has underperformed the S&P 500’s ($SPX) 25.8% gains over the past 52 weeks, with shares up 16.6% during this period. However, it outperformed the Energy Select Sector SPDR Fund’s (XLE) 14.3% gains over the same time frame.
FANG’s underperformance stems from balancing excess supply in the market along with tempered demand, reduced oil consumption in China, driven by an economic slowdown and geopolitical tensions impacting oil prices.
On Nov. 4, FANG shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $3.38 missed Wall Street expectations of $3.80. The company’s revenue was $2.7 billion, beating Wall Street forecasts of $2.5 billion.
Analysts’ consensus opinion on FANG stock is bullish, with a “Strong Buy” rating overall. Out of 29 analysts covering the stock, 22 advise a “Strong Buy” rating, three suggest a “Moderate Buy,” and four give a “Hold.” FANG’s average analyst price target is $213.93, indicating a potential upside of 21.1% from the current levels.
