Diamondback is a focused, low-cost Permian operator — essentially 100% Midland/Delaware Basin across ~890,000 net acres, with ~9,000 economic locations at $50/bbl WTI. The ~$26bn Endeavor acquisition (2024) roughly doubled its scale and the ~$4bn Double Eagle deal (2025) added more Midland acreage; it also controls the Viper Energy minerals subsidiary (merged with Sitio in 2025). FY2025 production was 921 mboe/d (54% oil).
On an adjusted basis it screens attractively — ~7.7x EV/EBITDA and a ~9% free-cash-flow yield — though its GAAP P/E is distorted by a Q4-2025 impairment (headline ~35x versus ~15–16x on adjusted EPS). Capital returns shifted to a base dividend plus buybacks ($2.0bn in 2025, ~54% of FCF returned), with net debt/EBITDA of ~1.5x falling after Endeavor. The key flags are single-basin concentration and direct oil-price leverage.
Its EV/EBITDA of 7.6x is above the 5.9x median across the 142-company universe, the free-cash-flow yield of 9.6% is higher than the 6.5% median, and at $19.94/boe of proved reserves it is richer than the $13.51/boe median.
On a balanced screen across the universe, Diamondback Energy scores 49/100, strongest on growth (84/100). Sub-scores: value 35, quality 50, growth 84, risk 44 (higher = riskier).
Diamondback Energy holds approximately 3.62 billion boe of proved (1P) reserves with FY2025 production of about 921 thousand boe/d (76% liquids), a reserve life of roughly 10.8 years. Break-even: ~$36/bbl (Capital + base dividend break-even (WTI)) — WTI oil price to hold production flat and fund the base dividend — among the lowest of US E&Ps (Q1-2026 presentation). The reinvestment-only break-even is materially lower; well costs ~$550/ft (Midland D,C&E).
Using Diamondback Energy's SEC-disclosed after-tax standardized measure of proved reserves ($36.9bn) less net debt ($14.6bn) gives an equity-NAV floor of about $22.3bn — the current market capitalisation sits +158% versus that floor. Disclosed pre-tax PV-10: —. This is a floor: proved reserves only, excluding undeveloped inventory, downstream and other business lines. Proved-only — EXCLUDES most of the ~9,000-location undeveloped inventory (SEC 5-year PUD rule). Understates a deep-inventory Permian pure-play.
| Country / region | Prod. share | Country risk | Key jurisdiction risk |
|---|---|---|---|
| United States (Permian) | 100% | 23 | Stable, deep; federal-lands leasing and permitting policy swings. |
Enerquill Advisory provides asset valuation, petroleum fiscal modelling and risk analysis for oil, gas and LNG transactions — including bespoke, deal-specific NAV and acquirer–target screens that go well beyond this public data.
Work with us →About Enerquill| Asset | Location | Type | Notes |
|---|---|---|---|
| Midland Basin core | United States — Permian (Midland, TX) | Shale oil | ~797k net acres, ~7,910 locations; low-cost multi-zone co-development |
| Delaware Basin | United States — Permian (Delaware, TX) | Shale oil | ~93k net acres; running-room complement to Midland |
| Endeavor Energy (acq.) | United States — Permian (Midland) | M&A | ~$26bn, closed 2024; made FANG the largest pure-play Midland operator |
| Double Eagle IV (acq.) | United States — Permian (Midland) | M&A bolt-on | ~$4bn, closed 2025; +40k net acres, 407 locations |
| Viper Energy (VNOM) | United States — Permian | Minerals & royalty | Listed subsidiary; no-capex royalty streams |
| Sitio Royalties (comb.) | United States — Permian + | Minerals M&A | ~$4.1bn into Viper (2025); merged two largest Permian minerals players |
| Midstream / water / DrillCo | United States — Permian | Infrastructure | Water, gathering & equity interests supporting the low-cost model |
| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Production (mboe/d) | 375 | 386 | 448 | 598 | 921 |
| Proved reserves (bnboe) | 1.79 | 2.03 | 2.18 | 3.56 | 3.62 |
| Revenue ($bn) | 6.8 | 9.6 | 8.4 | 11.1 | 15.0 |
| EBITDA ($bn) | 4.1 | 7.0 | 6.1 | 7.3 | 9.5 |
| Net income ($bn) | 2.2 | 4.4 | 3.1 | 3.3 | 1.7 |
| Free cash flow ($bn) | 2.5 | 4.6 | 2.9 | 3.6 | 5.5 |
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✓ FY2025 figures verified against primary sources:
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