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Diamondback Energy, Inc. FANG

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Diamondback was paid $96.82 a barrel for its oil last quarter and paid $2.15 to get rid of every thousand cubic feet of its gas.

Production crossed a million barrels of oil equivalent a day at the same time, so both of those numbers got bigger.

FANG · price with moving averages

Daily · 6MWeekly · 3Y
$116$142$167$192$218 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

Diamondback drills the Permian Basin in West Texas and does very little else. Horizontal wells into the Midland and Delaware, oil out, and whatever gas and natural gas liquids come up with it. There is no refining, no international, no downstream. The company is a pure expression of Permian rock, Permian costs and the prices West Texas can get.

Scale arrived through acquisition. Endeavor closed in September 2024 for roughly $27B, Double Eagle in April 2025, and Viper's purchase of Sitio in August 2025. The share count is up 35% in a year as a result. What that bought is the lowest cost structure in the basin: lease operating expense of $5.96 a barrel of oil equivalent and cash overhead of 52 cents.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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