Diamondback Energy Inc. (NASDAQ:FANG)

The data reveals fluctuations in total assets and adjusted total assets over the five-year period. From December 31, 2017, to December 31, 2018, there was a substantial increase in total assets, more than doubling from 7,771 million US dollars to 21,596 million US dollars. This upward trend continued, albeit at a slower rate, with total assets rising slightly to 23,531 million US dollars by the end of 2019.

In 2020, a noticeable decline occurred, with total assets decreasing to 17,619 million US dollars, representing a significant contraction compared to the prior year. However, by December 31, 2021, total assets rebounded to 22,898 million US dollars, approaching the value recorded at the end of 2019.

The adjusted total assets exhibit a pattern closely mirroring that of total assets throughout the period, indicating consistent adjustments applied to the assets without material deviation. Starting at 7,771 million US dollars in 2017, adjusted total assets rose sharply in 2018 to 21,499 million US dollars and then increased modestly to 23,389 million US dollars in 2019. Similar to total assets, they declined in 2020 to 17,546 million US dollars before recovering to 22,858 million US dollars in 2021.

Key observations:

There is a strong growth phase from 2017 through 2019, with total assets and adjusted assets increasing significantly.

A sharp decrease in asset values is evident in 2020, which may be reflective of market conditions or operational challenges during that period.

Recovery is observed in 2021, with assets nearly returning to previous peak levels.

The adjusted asset figures consistently align closely with reported total assets, suggesting that adjustments made have a minimal net effect across the years provided.

Total liabilities

The total liabilities exhibited a pronounced upward trend from 2017 to 2021, increasing from 2,189 million USD at the end of 2017 to a peak of 9,653 million USD in 2021. Notably, there was a significant rise from 2017 to 2018, where liabilities surged by approximately 239%, followed by a steady but less steep increase over the subsequent years. A slight decrease occurred in 2020 compared to 2019, after which the total liabilities rose again in 2021.

Adjusted total liabilities

The adjusted total liabilities also trended upward over the same period, starting at 2,081 million USD in 2017 and rising to 8,315 million USD in 2021. Similar to total liabilities, the largest relative increase was observed between 2017 and 2018. Adjusted total liabilities increased consistently through to 2021, although the rate of increase slightly moderated between 2019 and 2020. The adjusted figures remained lower than total liabilities for each year, indicating the exclusion of certain liabilities or adjustments made for analytical purposes.

Comparative insights

The difference between total and adjusted total liabilities widened over time, suggesting that the adjustments accounted for a greater absolute value in recent years. This could imply increased off-balance sheet liabilities or other factors excluded from adjusted figures. The overall pattern reflects a substantial increase in the company's leverage or financial obligations, signaling potential risks associated with higher debt levels but also possibly increased capacity for operational investment or expansion.

The financial data indicates fluctuations in both total stockholders' equity and adjusted total equity over the five-year period ending December 31, 2021.

Total Stockholders' Equity

There was a substantial increase from 2017 to 2018, with the value rising from 5,255 million USD to 13,699 million USD, representing a significant growth in equity.

In 2019, the total stockholders' equity experienced a slight decline to 13,249 million USD but remained relatively stable compared to 2018.

A pronounced decline occurred in 2020, with equity falling to 8,794 million USD, marking the lowest level within the observed period.

In 2021, there was a notable recovery, with equity increasing to 12,088 million USD, although it did not fully return to previous peak levels.

Adjusted Total Equity

The adjusted total equity followed a similar pattern to the total stockholders' equity but was consistently higher across all years, indicating adjustments that increase the reported equity base.

From 2017 to 2018, adjusted total equity grew significantly from 5,690 million USD to 15,854 million USD.

The upward trend continued in 2019, reaching 16,650 million USD, marking the highest adjusted equity within the observed timeframe.

A decrease was observed in 2020, with adjusted equity falling to 10,514 million USD, paralleling the decline seen in total stockholders' equity.

There was a recovery in 2021 to 14,543 million USD, approaching the levels observed in 2018 and 2019 but still below the peak adjusted equity in 2019.

Overall, the data reveals volatility in equity values, with a strong growth period up to 2019, a significant downturn in 2020, and partial recovery by 2021. The adjusted equity figures consistently exceed the reported total equity, suggesting the presence of adjustments that enhance the equity base. The decline in 2020 may be associated with external economic or company-specific factors impacting equity, while the partial rebound in 2021 reflects some level of stabilization or recovery.

Total Reported Debt

The total reported debt exhibited a significant upward trend over the five-year period. Starting at $1,477 million in 2017, the debt level increased sharply to $4,464 million in 2018, followed by continued growth reaching $6,687 million by 2021. This represents a substantial increase, indicating a strategy potentially involving higher leverage or increased borrowing to finance operations or investments.

Total Stockholders’ Equity

Total stockholders’ equity showed considerable fluctuation. It rose substantially from $5,255 million in 2017 to a peak of $13,699 million in 2018. Thereafter, there was a slight decline in 2019 to $13,249 million, followed by a marked reduction to $8,794 million in 2020, and then a recovery to $12,088 million in 2021. The volatility could reflect changes in retained earnings, dividend payments, share repurchases, or impacts of other comprehensive income components.

Total Reported Capital

Total reported capital, defined as the sum of total debt and equity, followed a generally upward trajectory consistent with increases in both equity and debt. It grew from $6,732 million in 2017 to $18,775 million in 2021, despite a dip in 2020 that corresponds with the decline in equity during that year. This trend suggests overall growth in the company’s capital base, with temporary adjustments possibly linked to external market factors or operational shifts.

Adjusted Total Equity

Adjusted total equity followed a similar pattern to total stockholders’ equity but reported systematically higher values throughout the period. Beginning at $5,690 million in 2017, it rose to a maximum of $16,650 million in 2019 before decreasing to $10,514 million in 2020, then improving to $14,543 million in 2021. The adjustment appears to smooth some of the volatility seen in reported equity, though the overall trend confirms significant fluctuations especially around 2020.

Adjusted Total Capital

The adjusted total capital, which combines adjusted equity with debt, showed a consistent upward movement from $7,167 million in 2017 to $21,230 million in 2021. This measure also exhibits a dip in 2020 but rebounds more robustly in 2021. The growth rate of adjusted capital points to expansion financed by both increased borrowing and equity.

Overall Analysis

The data reveals a company that has significantly increased its capital base over five years, with total capital nearly tripling. The increase in debt is especially notable, with a near fivefold rise from 2017 to 2021, suggesting reliance on debt financing. Equity levels have fluctuated, with a sharp dip in 2020 likely linked to external factors impacting financial performance or asset values, but rebounded strongly in 2021. The adjustment figures indicate that underlying equity and capital trends, while volatile, generally align with reported values but provide a broader perspective that mitigates some short-term fluctuations. These patterns suggest active capital management, with responsiveness to economic conditions, and a strategic balance of debt and equity financing.

The financial data reveals significant volatility in the company's profitability over the observed periods. The net income attributable to the company shows a clear upward trajectory between 2017 and 2018, increasing from 482 million US dollars to 846 million US dollars. However, in 2019, net income dramatically declined to 240 million US dollars, followed by a sharp reversal to a substantial loss of 4.517 billion US dollars in 2020. The data improves again in 2021 with a substantial positive net income of 2.182 billion US dollars.

Similarly, the adjusted net income follows a comparable trend, although at generally higher levels compared to the net income figures. Starting at 496 million US dollars in 2017, adjusted net income rose significantly to 1.114 billion US dollars in 2018. In 2019, it decreased to 362 million US dollars, then plunged into a negative figure of 5.714 billion US dollars in 2020. The adjusted net income rebounds strongly to 2.882 billion US dollars in 2021, marking the highest point in the series.

Profitability Trend

The data indicates a period of growth followed by a severe downturn in both net income and adjusted net income during 2019 and 2020, which could be attributed to extraordinary factors or operational challenges. The sharp losses in 2020 suggest a significant adverse event impacting financial performance.

Recovery in 2021

Both net income and adjusted net income demonstrate a strong recovery in 2021, surpassing previous years' results, which indicates a possible successful strategic response or improvement in market conditions.

Adjusted vs. Reported Income

The adjusted net income consistently exceeds reported net income, highlighting adjustments for non-recurring or non-operational items. The wider gap during loss years points to substantial adjustments that exacerbate the reported losses or mitigate gains.