Diamondback Energy Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss) attributable to Diamondback Energy, Inc.	2,182)	(4,517)	240)	846)	482)
Net (income) loss attributable to non-controlling interest	94)	(155)	75)	99)	34)
Net noncash charges	1,632)	6,693)	2,586)	615)	420)
Changes in operating assets and liabilities	36)	97)	(167)	5)	(48)
Net cash provided by operating activities	3,944)	2,118)	2,734)	1,565)	889)
Interest paid, net of capitalized interest, net of tax¹	152)	190)	206)	90)	37)
Capitalized interest, net of tax²	69)	44)	57)	26)	14)
Drilling, completions and infrastructure additions to oil and natural gas properties	(1,457)	(1,719)	(2,677)	(1,461)	(793)
Additions to midstream assets	(30)	(140)	(244)	(204)	(68)
Free cash flow to the firm (FCFF)	2,678)	494)	77)	16)	80)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Diamondback Energy Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Diamondback Energy Inc. FCFF increased from 2019 to 2020 and from 2020 to 2021.

Diamondback Energy Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	21.70%	19.10%	13.00%	21.00%	35.00%
Interest Paid, Net of Tax
Interest paid, net of capitalized interest, before tax	194)	235)	237)	114)	58)
Less: Interest paid, net of capitalized interest, tax²	42)	45)	31)	24)	20)
Interest paid, net of capitalized interest, net of tax	152)	190)	206)	90)	37)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	88)	55)	66)	33)	22)
Less: Capitalized interest, tax³	19)	11)	9)	7)	8)
Capitalized interest, net of tax	69)	44)	57)	26)	14)

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).

¹ See details »

² 2021 Calculation
Interest paid, net of capitalized interest, tax = Interest paid, net of capitalized interest × EITR
= 194 × 21.70% = 42

³ 2021 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 88 × 21.70% = 19

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Diamondback Energy Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	35,957)
Free cash flow to the firm (FCFF)	2,678)
Valuation Ratio
EV/FCFF	13.43
Benchmarks
EV/FCFF, Competitors¹
Chevron Corp.	15.32
ConocoPhillips	17.07
Exxon Mobil Corp.	13.73
Marathon Petroleum Corp.	6.51
Occidental Petroleum Corp.	12.06
Valero Energy Corp.	6.87
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	13.34
EV/FCFF, Industry
Energy	13.68

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Diamondback Energy Inc., historical EV/FCFF calculation, comparison to benchmarks

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	29,862)	17,630)	16,315)	22,025)	13,977)
Free cash flow to the firm (FCFF)²	2,678)	494)	77)	16)	80)
Valuation Ratio
EV/FCFF³	11.15	35.72	212.96	1,402.68	175.30
Benchmarks
EV/FCFF, Competitors⁴
Chevron Corp.	13.33	106.63	16.67	—	—
ConocoPhillips	10.72	92.48	13.21	—	—
Exxon Mobil Corp.	10.06	—	44.38	—	—
Marathon Petroleum Corp.	7.80	—	13.14	—	—
Occidental Petroleum Corp.	8.39	25.58	45.65	—	—
Valero Energy Corp.	10.62	—	9.96	—	—
EV/FCFF, Sector
Oil, Gas & Consumable Fuels	10.61	399.27	21.17	—	—
EV/FCFF, Industry
Energy	10.93	210.37	21.44	—	—

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).

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² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 29,862 ÷ 2,678 = 11.15

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Diamondback Energy Inc. EV/FCFF ratio decreased from 2019 to 2020 and from 2020 to 2021.

Diamondback Energy Inc. (NASDAQ:FANG)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical