Stock Analysis on Net
Stock Analysis on Net

Diamondback Energy Inc. (NASDAQ:FANG)

$22.49

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

Common-Size Income Statement

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Diamondback Energy Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Oil sales
Natural gas sales
Natural gas liquid sales
Revenue from contracts with customers
Midstream services
Other operating income
Revenues
Lease operating expenses
Production and ad valorem taxes
Gathering and transportation
Midstream services expense
Depreciation, depletion, amortization and accretion
Impairment of oil and natural gas properties
General and administrative expenses
Merger and integration expense
Other operating expense
Costs and expenses
Income (loss) from operations
Interest expense, less capitalized interest
Other fees and expenses
Interest income
Interest expense, net
Other income (expense), net
Gain (loss) on derivative instruments, net
Gain on sale of equity method investments
Loss on extinguishment of debt
Income (loss) from equity investments
Other income (expense), net
Income (loss) before income taxes
(Provision for) benefit from income taxes
Net income (loss)
Net (income) loss attributable to non-controlling interest
Net income (loss) attributable to Diamondback Energy, Inc.

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).

Revenue Composition Trends
The proportion of revenue derived from oil sales declined steadily from 88.01% in 2017 to 79.98% by 2021, indicating a diversification in revenue streams. Natural gas sales, after a decrease from 2017 to 2019, rose significantly to 8.43% in 2021, while natural gas liquid sales also showed growth from 7.59% to 11.59% over the period. Midstream services remained a minor contributor, peaking near 1.81% in 2020 before declining in 2021. Other operating income consistently diminished throughout the years, reaching a low of 0.07% in 2021.
Cost and Expense Patterns
Lease operating expenses exhibited volatility, initially decreasing from -10.67% in 2017 to a trough of -15.42% in 2020, then improving substantially to -8.37% in 2021. Production and ad valorem taxes remained relatively stable around -6.2% on average. Gathering and transportation costs increased notably until 2020, then receded by 2021. Midstream services expense followed a similar trend of increase to 2020 with a subsequent reduction. Depreciation, depletion, amortization, and accretion costs exhibited a sharp increase peaking at -47.57% in 2020, before a marked decrease to -18.9% in 2021, suggesting asset revaluation or impairment impact. A significant outlier was the impairment of oil and natural gas properties recorded as -20.32% in 2019 and a large charge of -218.47% in 2020, absent in other years. General and administrative expenses declined from -4.1% to -2.16%, indicating improved control or efficiency.
Profitability and Operating Income
Income from operations showed a general decline from 51% in 2017 to 17.88% in 2019, plummeting to a loss of -198.69% in 2020, coinciding with the significant impairment and increased costs. Recovery occurred in 2021 to a positive 59.3%, indicating a strong rebound. Overall costs and expenses followed a similar trajectory, peaking dramatically in 2020 due to extraordinary impairment losses and other expenses. The net income attributable to the company reflected this pattern with a drop to a loss of -163.9% in 2020 before improving to 32.34% in 2021.
Interest and Other Financial Items
Interest expense, net, increased in 2020 to -7.15% from approximately -3.42% to -4.43% in prior years, possibly reflecting higher debt service costs during a challenging year. This expense decreased significantly in 2021 to -2.95%. Other income (expense), net, showed variability with a noteworthy positive spike in 2018 but returned to negative values, worsening notably in 2021 to -16.21%. Losses on derivative instruments fluctuated greatly and deteriorated sharply in 2021 to -12.57%, indicating increased hedging costs or market volatility impact. Gains on sale of equity method investments were negligible except for a minor gain in 2021.
Tax and Net Income Effects
The provision for income taxes varied considerably, showing a benefit in 2020 of 40.06% which corresponds to the large operating loss that year, and reverted to a provision of -9.35% in 2021. Net income trends mirrored operating income patterns, with positive returns near 40-44% through 2017 and 2018, followed by sharp declines into losses in 2019 and 2020, then a recovery to positive territory in 2021. Non-controlling interests fluctuated in line with net results but remained a relatively small percentage.