Stock Analysis on Net
AI Tokens
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: Liabilities and Stockholders’ Equity

Diamondback Energy Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Accounts payable, trade 0.16 0.40 0.76 0.59 1.22
Accrued capital expenditures 1.29 1.06 2.02 2.29 2.85
Current maturities of long-term debt 0.20 1.08 0.00 0.00 0.00
Derivative liability payable 0.44 0.17 0.01 0.00 0.00
Lease operating expenses payable 0.38 0.65 0.51 0.28 0.36
Ad valorem taxes payable 0.31 0.32 0.29 0.23 0.04
Accrued compensation 0.21 0.15 0.00 0.00 0.00
Interest payable 0.20 0.21 0.11 0.12 0.09
Midstream operating expenses payable 0.06 0.10 0.09 0.00 0.00
Liability for drilling costs prepaid by joint interest partners 0.04 0.03 0.05 0.07 0.39
Other 0.27 0.07 0.23 0.48 0.31
Other accrued liabilities 1.90% 1.71% 1.29% 1.17% 1.19%
Revenues and royalties payable 1.97 1.35 1.18 0.66 0.88
Derivative instruments 0.76 1.41 0.11 0.00 1.29
Current liabilities 6.28% 7.02% 5.37% 4.72% 7.43%
Long-term debt, excluding current maturities 29.01 31.92 22.83 20.67 19.01
Derivative instruments 0.13 0.32 0.00 0.07 0.08
Asset retirement obligations 0.72 0.61 0.40 0.63 0.26
Deferred income taxes 5.84 4.44 8.01 8.26 1.39
Other long-term liabilities 0.17 0.04 0.05 0.04 0.00
Long-term liabilities 35.88% 37.34% 31.29% 29.68% 20.74%
Total liabilities 42.16% 44.36% 36.65% 34.40% 28.17%
Common stock, $0.01 par value 0.01 0.01 0.01 0.01 0.01
Additional paid-in capital 61.51 71.83 52.51 59.90 68.09
Retained earnings (accumulated deficit) -8.73 -21.93 3.78 3.53 -0.48
Accumulated other comprehensive income 0.00 0.00 0.00 0.00 0.00
Total Diamondback Energy, Inc. stockholders’ equity 52.79% 49.91% 56.30% 63.44% 67.62%
Non-controlling interest 5.05 5.73 7.04 2.16 4.21
Total equity 57.84% 55.64% 63.35% 65.60% 71.83%
Total liabilities and equity 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 organization's capital structure underwent a significant shift between 2017 and 2021, characterized by an increase in leverage and a corresponding reduction in the proportion of equity. Total liabilities grew from 28.17% of the total balance sheet in 2017 to a peak of 44.36% in 2020, before settling at 42.16% by the end of 2021. Conversely, total equity declined from 71.83% to 57.84% over the same period.

Long-Term Liability Trends
The primary driver of the increase in total liabilities was long-term debt, excluding current maturities, which rose steadily from 19.01% in 2017 to 31.92% in 2020, before decreasing slightly to 29.01% in 2021. Deferred income taxes also showed volatility, peaking at 8.26% in 2018 and 8.01% in 2019 before declining to 5.84% by 2021. Asset retirement obligations remained relatively low but showed a gradual upward trend, increasing from 0.26% in 2017 to 0.72% in 2021.
Current Liability Composition
Current liabilities as a percentage of total liabilities and equity remained relatively stable, fluctuating between 4.72% and 7.43%. Within this category, accounts payable, trade, exhibited a consistent downward trend, falling from 1.22% in 2017 to 0.16% in 2021. In contrast, revenues and royalties payable increased from 0.88% in 2017 to 1.97% in 2021, suggesting a shift in the timing of revenue recognition or payment obligations.
Stockholders' Equity Analysis
Total equity experienced a general contraction from 71.83% in 2017 to 57.84% in 2021. Additional paid-in capital showed significant volatility, reaching a high of 71.83% in 2020 before dropping to 61.51% in 2021. The most notable fluctuation occurred within retained earnings, which moved from a slight deficit of -0.48% in 2017 to a positive 3.78% in 2019, followed by a sharp decline to a deficit of -21.93% in 2020, and a partial recovery to -8.73% in 2021.
Capitalization and Risk Profile
The transition from an equity-heavy balance sheet in 2017 to a more leveraged position by 2021 indicates an increased reliance on debt financing. The sharp deficit in retained earnings observed in 2020, coupled with the peak in long-term debt during the same year, suggests a period of significant financial stress or aggressive capital restructuring during that fiscal cycle.

AI Ask an analyst for more

My previous chats

Add tokens

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?