Stock Analysis on Net
Stock Analysis on Net

Diamondback Energy Inc. (NASDAQ:FANG)

This company has been moved to the archive! The financial data has not been updated since November 8, 2022.

Common-Size Balance Sheet: Assets 

Diamondback Energy Inc., common-size consolidated balance sheet: assets

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Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Cash and cash equivalents 2.86 0.59 0.52 0.99 1.45
Restricted cash 0.08 0.02 0.02 0.00 0.00
Accounts receivable, joint interest and other, net 0.31 0.32 0.79 0.44 0.94
Accounts receivable, oil and natural gas sales, net 2.61 1.59 1.82 1.37 2.04
Inventories 0.27 0.19 0.16 0.17 0.12
Derivative instruments 0.06 0.01 0.20 1.07 0.01
Income tax receivable 0.00 0.57 0.08 0.00 0.00
Prepaid expenses and other current assets 0.12 0.13 0.10 0.23 0.06
Current assets 6.31% 3.42% 3.69% 4.28% 4.61%
Property and equipment, net 90.05 92.03 92.79 94.33 94.50
Funds held in escrow 0.05 0.29 0.00 0.00 0.08
Equity method investments 2.68 3.03 2.04 0.00 0.00
Derivative instruments 0.02 0.00 0.03 0.00 0.00
Deferred income taxes, net 0.17 0.41 0.60 0.45 0.00
Investment in real estate, net 0.38 0.57 0.46 0.54 0.00
Other assets 0.33 0.26 0.38 0.40 0.80
Long-term assets 93.69% 96.58% 96.31% 95.72% 95.39%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial data reveals several key trends in asset composition over the five-year period ending December 31, 2021.

Cash and Cash Equivalents
The proportion of cash and cash equivalents relative to total assets initially declined from 1.45% in 2017 to a low of 0.52% in 2019. After stabilizing somewhat in 2020 at 0.59%, it markedly increased to 2.86% in 2021, indicating a significant improvement in liquidity during the most recent year.
Restricted Cash
Restricted cash was not reported in 2017 or 2018 but appeared in minor amounts starting in 2019 (0.02%) and rose gradually to 0.08% in 2021. This suggests a growing allocation of funds under restriction potentially for specific operational or regulatory purposes.
Accounts Receivable
The share represented by accounts receivable (joint interest and oil and gas sales) showed variability. Joint interest and other receivables decreased from 0.94% in 2017 to 0.31% in 2021, reflecting improved collections or a lower volume of receivables. Conversely, accounts receivable from oil and natural gas sales fluctuated moderately, dipping to 1.37% in 2018 before rising to 2.61% in 2021, indicating an increase in sales-related receivables or price effects.
Inventories
Inventory levels as a percentage of total assets gradually increased over the period from 0.12% in 2017 to 0.27% in 2021, suggesting an accumulation of stock or materials potentially to support increased production or supply chain requirements.
Derivative Instruments
The presence of derivative instruments on the balance sheet varied notably. After a spike to 1.07% in 2018, the proportion receded sharply and remained low, indicating fluctuating hedging activity or derivative usage during the period.
Income Tax Receivable
Income tax receivables appeared only starting in 2019, reaching 0.57% in 2020 before dropping back to zero in 2021. This could correspond to timing differences in tax payments or recoveries.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets fluctuated modestly, peaking in 2018 at 0.23% and settling at 0.12% by 2021, showing relative stability with minor changes.
Current Assets
The total current assets as a percentage of total assets declined steadily from 4.61% in 2017 to 3.42% in 2020 before rising sharply to 6.31% in 2021. The 2021 increase aligns with the rise in cash and cash equivalents and possibly reflects improved short-term liquidity or shifts in asset management strategies.
Property and Equipment, Net
Property and equipment comprised the largest portion of total assets but experienced a gradual decline from 94.5% in 2017 to 90.05% in 2021. This decrease suggests either asset disposals, depreciation exceeding capital expenditures, or a shift towards more liquid assets.
Other Long-Term Assets
Funds held in escrow presented irregular values, peaking at 0.29% in 2020 then decreasing in 2021. Equity method investments rose to a peak of 3.03% in 2020 before reducing slightly in 2021, indicating some variability in joint ventures or associated company stakes. Deferred income taxes decreased over time from 0.45% in 2018 to 0.17% in 2021, possibly reflecting changes in deferred tax liabilities or assets.
Investment in Real Estate
This category remained relatively small and stable, fluctuating between 0.38% and 0.57%, implying a limited but consistent allocation to real estate investments.
Other Assets
Other assets steadily decreased from 0.8% in 2017 to 0.26% in 2020, with a slight recovery to 0.33% in 2021, indicating a general reduction with minor recent increases in miscellaneous long-term assets.
Total Long-Term Assets
Long-term assets consistently represented the vast majority of total assets, maintaining levels above 90% throughout. However, the percentage decreased slightly from 95.39% in 2017 to 93.69% in 2021, mainly due to the rising share of current assets.

Overall, the data illustrates a trend of moderate diversification in asset composition, with a noteworthy improvement in liquidity in 2021 as evidenced by increased cash and current assets. The dominant asset category remains property and equipment, though it has slightly declined in relative terms. The fluctuations in various asset categories may reflect operational adjustments, investment decisions, and responses to market conditions across the reviewed period.