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: Liabilities and Stockholders’ Equity 

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

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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 financial data reveals several notable trends in the company's liabilities and equity structure over the analyzed five-year period.

Current Liabilities
Current liabilities as a percentage of total liabilities and equity experienced fluctuations, starting at 7.43% in 2017, declining to a low of 4.72% in 2018, and then rising again to 7.02% in 2020 before slightly decreasing to 6.28% in 2021. Among individual components, accounts payable, trade showed a consistent downward trend, diminishing from 1.22% in 2017 to 0.16% in 2021, indicating a reduced reliance on trade payables. Accrued capital expenditures followed a declining pattern initially until 2020, with a minor increase in 2021. The emergence of current maturities of long-term debt from 2020 onward (1.08% and 0.20%) suggests increased short-term debt obligations during the latter years.
Derivative Liabilities and Instruments
Derivative-related liabilities and instruments indicated variability; the derivative liability payable rose from negligible values prior to 2019 to 0.44% by 2021. The derivative instruments component showed irregular presence, with 1.29% in 2017, minimal in 2019, a peak at 1.41% in 2020, and decreasing to 0.76% in 2021, reflecting fluctuating exposure to derivative financial instruments over the years.
Long-term Debt and Liabilities
The proportion of long-term debt, excluding current maturities, increased steadily from 19.01% in 2017 to a peak of 31.92% in 2020 before slightly declining to 29.01% in 2021. Similarly, other long-term liabilities remained relatively minor but rose slightly from near zero in 2018 to 0.17% in 2021. Overall long-term liabilities showed a marked uptrend, growing from 20.74% in 2017 to 37.34% in 2020, followed by a moderate decrease to 35.88% in 2021, indicating a significant and sustained increase in long-term financial obligations during the period.
Asset Retirement Obligations and Deferred Income Taxes
Asset retirement obligations increased gradually, from 0.26% to 0.72%, indicating rising future liabilities for site restoration or similar obligations. Deferred income taxes exhibited a strong increase from 1.39% in 2017 to 8.26% in 2018, maintaining elevated levels through 2019 before decreasing to 5.84% in 2021, suggesting fluctuations in deferred tax liabilities possibly linked to changes in tax positions or temporary differences.
Equity Components
Total equity as a percentage of total liabilities and equity decreased over the period, declining from 71.83% in 2017 to a low of 55.64% in 2020 before improving slightly to 57.84% in 2021. Additional paid-in capital demonstrated a decrease from 68.09% in 2017 to 52.51% in 2019, followed by an increase peaking at 71.83% in 2020 and then falling back to 61.51% in 2021, showing variability in capital contributions or accounting adjustments.
Retained earnings (accumulated deficit) improved from a negative position (-0.48%) in 2017 to positive levels (3.78%) by 2019 but then deteriorated sharply to -21.93% in 2020 and -8.73% in 2021, indicating significant net losses or dividend distributions during this timeframe. Common stock par value remained stable and insignificant in proportion. Non-controlling interest fluctuated, decreasing from 4.21% to 2.16% in 2018, then increasing sharply to 7.04% in 2019, followed by a decline to 5.05% in 2021.
Overall Liabilities and Equity Mix
Total liabilities increased from 28.17% in 2017 to 44.36% in 2020 before slightly reducing to 42.16% in 2021, while total equity proportion declined accordingly. The changes illustrate a trend toward higher leverage with increased liabilities relative to equity, particularly in 2020. The recovery in equity proportion in 2021 may suggest some deleveraging or improved profitability.

In summary, the data point to a company that progressively increased its long-term debt and overall liabilities during the period, especially evident by the sharp increases noticeable up to 2020. Concurrently, equity levels decreased, substantially impacted by deteriorating retained earnings in 2020. Certain liabilities, such as accounts payable and accrued capital expenditures, decreased in proportion, while deferred income taxes and asset retirement obligations grew. Derivative liabilities and instruments displayed variable patterns suggesting changing financial risk management activities during these years.