Return on Equity (ROE)
since 2012
Calculation
Diamondback Energy Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to Diamondback Energy, Inc.1 | ÷ | Total Diamondback Energy, Inc. stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2021 | 18.05% | = | 100 | × | 2,182) | ÷ | 12,088) |
| Dec 31, 2020 | -51.36% | = | 100 | × | (4,517) | ÷ | 8,794) |
| Dec 31, 2019 | 1.81% | = | 100 | × | 240) | ÷ | 13,249) |
| Dec 31, 2018 | 6.17% | = | 100 | × | 846) | ÷ | 13,699) |
| Dec 31, 2017 | 9.18% | = | 100 | × | 482) | ÷ | 5,255) |
| Dec 31, 2016 | -4.46% | = | 100 | × | (165) | ÷ | 3,697) |
| Dec 31, 2015 | -29.35% | = | 100 | × | (551) | ÷ | 1,876) |
| Dec 31, 2014 | 11.07% | = | 100 | × | 194) | ÷ | 1,751) |
| Dec 31, 2013 | 6.46% | = | 100 | × | 55) | ÷ | 846) |
| Dec 31, 2012 | -7.90% | = | 100 | × | (37) | ÷ | 462) |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
1 US$ in millions
The financial performance from 2012 to 2021 is characterized by significant volatility in both net income and return on equity (ROE), reflecting a cyclical pattern of expansion and contraction. The company experienced several periods of substantial net losses, which created extreme fluctuations in the returns generated for shareholders.
- Return on Equity (ROE) Trends
- ROE exhibited extreme instability over the analyzed period. After an initial recovery from -7.90% in 2012 to a high of 11.07% in 2014, a sharp decline occurred in 2015, with ROE falling to -29.35%. A period of moderate positive returns followed between 2017 and 2019, although the ratio trended downward from 9.18% to 1.81%. The most severe contraction occurred in 2020, where ROE dropped to -51.36%, followed by a robust recovery to 18.05% in 2021, the highest level recorded in the ten-year span.
- Profitability Analysis
- Net income demonstrated a pattern of erratic swings. The company faced significant losses in 2015 (US$ 551 million) and 2016 (US$ 165 million), which disrupted early growth. This volatility peaked in 2020 with a substantial net loss of US$ 4,517 million. However, the subsequent pivot in 2021 to a net income of US$ 2,182 million indicates a rapid recovery in operational profitability.
- Equity Base Expansion
- Total stockholders' equity grew aggressively from US$ 462 million in 2012 to a peak of US$ 13,699 million in 2018. Despite a contraction to US$ 8,794 million in 2020—corresponding with the period of maximum net loss—the equity base rebounded to US$ 12,088 million by 2021. The overall expansion of the equity base highlights a significant increase in the company's book value, though the efficiency of this capital, as measured by ROE, remained subject to high volatility.
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Comparison to Competitors
Diamondback Energy Inc., ROE, long-term trends, comparison to competitors
| Diamondback Energy Inc. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2021 | 18.05% | 11.24% | 17.79% | 13.67% |
| Dec 31, 2020 | -51.36% | -4.21% | -9.05% | -14.28% |
| Dec 31, 2019 | 1.81% | 2.03% | 20.55% | 7.48% |
| Dec 31, 2018 | 6.17% | 9.59% | 19.59% | 10.87% |
| Dec 31, 2017 | 9.18% | 6.21% | -2.79% | 10.50% |
| Dec 31, 2016 | -4.46% | -0.34% | -10.34% | 4.69% |
| Dec 31, 2015 | -29.35% | 3.00% | -11.14% | 9.45% |
| Dec 31, 2014 | 11.07% | 12.41% | 13.23% | 18.65% |
| Dec 31, 2013 | 6.46% | 14.37% | 17.58% | 18.72% |
| Dec 31, 2012 | -7.90% | 19.18% | 17.56% | 27.06% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Diamondback Energy Inc., ROE, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Diamondback Energy Inc. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2021 | 18.05% | 13.24% |
| Dec 31, 2020 | -51.36% | -9.63% |
| Dec 31, 2019 | 1.81% | 6.59% |
| Dec 31, 2018 | 6.17% | 11.08% |
| Dec 31, 2017 | 9.18% | 7.66% |
| Dec 31, 2016 | -4.46% | 1.07% |
| Dec 31, 2015 | -29.35% | 4.49% |
| Dec 31, 2014 | 11.07% | 15.37% |
| Dec 31, 2013 | 6.46% | 16.83% |
| Dec 31, 2012 | -7.90% | 22.69% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).
Comparison to Industry (Energy)
Diamondback Energy Inc., ROE, long-term trends, comparison to industry (energy)
| Diamondback Energy Inc. | Energy | |
|---|---|---|
| Dec 31, 2021 | 18.05% | 13.21% |
| Dec 31, 2020 | -51.36% | -12.46% |
| Dec 31, 2019 | 1.81% | 3.63% |
| Dec 31, 2018 | 6.17% | 10.63% |
| Dec 31, 2017 | 9.18% | 6.58% |
| Dec 31, 2016 | -4.46% | 0.52% |
| Dec 31, 2015 | -29.35% | 4.61% |
| Dec 31, 2014 | 11.07% | 15.28% |
| Dec 31, 2013 | 6.46% | 16.85% |
| Dec 31, 2012 | -7.90% | 22.06% |
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), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).