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.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Diamondback Energy Inc., income tax expense (benefit), continuing operations

US$ in millions

Microsoft Excel
12 months ended: Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal 10 (62) — — —
State 15 — — (1) 1
Current income tax provision (benefit) 25 (62) — (1) 1
Federal 594 (1,010) 40 161 (22)
State 12 (32) 7 8 1
Deferred income tax provision (benefit) 606 (1,042) 47 169 (21)
Provision for (benefit from) income taxes 631 (1,104) 47 168 (20)

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).

Item Description The company
Current income tax provision (benefit) Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Diamondback Energy Inc. current income tax provision (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Deferred income tax provision (benefit) Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Diamondback Energy Inc. deferred income tax provision (benefit) decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
Provision for (benefit from) income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Diamondback Energy Inc. provision for (benefit from) income taxes decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Effective Income Tax Rate (EITR)

Diamondback Energy Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Federal statutory tax rate 21.00% 21.00% 21.00% 21.00% 35.00%
Effective income tax rate 21.70% 19.10% 13.00% 151.00% -3.93%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Diamondback Energy Inc. effective income tax rate increased from 2019 to 2020 and from 2020 to 2021.

Components of Deferred Tax Assets and Liabilities

Diamondback Energy Inc., components of deferred tax assets and liabilities

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net operating loss and other carryforwards 682 524 453 154 75
Derivative instruments 36 60 — — 23
Stock based compensation 5 7 7 7 1
Viper’s investment in Viper LLC 163 150 134 94 —
Rattler’s investment in Rattler LLC 40 58 — — —
Other 22 8 11 9 2
Deferred tax assets 948 807 605 265 101
Valuation allowance (315) (166) (7) (14) —
Deferred tax assets, net of valuation allowance 633 641 598 251 101
Oil and natural gas properties and equipment (1,702) (1,156) (2,275) (1,825) (203)
Midstream investments (224) (192) (50) (67) (6)
Derivative instruments — — (6) (46) —
Rattler’s investment in Rattler LLC — — (8) — —
Other (5) (3) (3) — —
Deferred tax liabilities (1,931) (1,351) (2,342) (1,938) (209)
Net deferred tax assets (liabilities) (1,298) (710) (1,744) (1,688) (108)

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).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Diamondback Energy Inc. deferred tax assets increased from 2019 to 2020 and from 2020 to 2021.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Diamondback Energy Inc. deferred tax assets, net of valuation allowance increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Diamondback Energy Inc. net deferred tax assets (liabilities) increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Deferred Tax Assets and Liabilities, Classification

Diamondback Energy Inc., deferred tax assets and liabilities, classification

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Deferred tax assets, net 40 73 142 97 —
Deferred tax liabilities 1,338 783 1,886 1,785 108

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).

Item Description The company
Deferred tax assets, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Diamondback Energy Inc. deferred tax assets, net decreased from 2019 to 2020 and from 2020 to 2021.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Diamondback Energy Inc. deferred tax liabilities decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

Diamondback Energy Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Adjustment to Total Assets
Total assets (as reported) 22,898 17,619 23,531 21,596 7,771
Less: Noncurrent deferred tax assets, net 40 73 142 97 —
Total assets (adjusted) 22,858 17,546 23,389 21,499 7,771
Adjustment to Total Liabilities
Total liabilities (as reported) 9,653 7,815 8,625 7,429 2,189
Less: Noncurrent deferred tax liabilities, net 1,338 783 1,886 1,785 108
Total liabilities (adjusted) 8,315 7,032 6,739 5,645 2,081
Adjustment to Total Diamondback Energy, Inc. Stockholders’ Equity
Total Diamondback Energy, Inc. stockholders’ equity (as reported) 12,088 8,794 13,249 13,699 5,255
Less: Net deferred tax assets (liabilities) (1,298) (710) (1,744) (1,688) (108)
Total Diamondback Energy, Inc. stockholders’ equity (adjusted) 13,386 9,504 14,993 15,387 5,363
Adjustment to Net Income (loss) Attributable To Diamondback Energy, Inc.
Net income (loss) attributable to Diamondback Energy, Inc. (as reported) 2,182 (4,517) 240 846 482
Add: Deferred income tax expense (benefit) 606 (1,042) 47 169 (21)
Net income (loss) attributable to Diamondback Energy, Inc. (adjusted) 2,788 (5,559) 287 1,015 462

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).

Diamondback Energy Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Diamondback Energy Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Net Profit Margin
Reported net profit margin 32.34% -163.90% 6.17% 39.71% 40.65%
Adjusted net profit margin 41.32% -201.71% 7.38% 47.66% 38.92%
Total Asset Turnover
Reported total asset turnover 0.29 0.16 0.17 0.10 0.15
Adjusted total asset turnover 0.30 0.16 0.17 0.10 0.15
Financial Leverage
Reported financial leverage 1.89 2.00 1.78 1.58 1.48
Adjusted financial leverage 1.71 1.85 1.56 1.40 1.45
Return on Equity (ROE)
Reported ROE 18.05% -51.36% 1.81% 6.17% 9.18%
Adjusted ROE 20.83% -58.49% 1.91% 6.60% 8.61%
Return on Assets (ROA)
Reported ROA 9.53% -25.64% 1.02% 3.92% 6.21%
Adjusted ROA 12.20% -31.68% 1.23% 4.72% 5.94%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Diamondback Energy Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Diamondback Energy Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Diamondback Energy Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Diamondback Energy Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Diamondback Energy Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Diamondback Energy Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Diamondback Energy, Inc. 2,182 (4,517) 240 846 482
Revenue from contracts with customers 6,747 2,756 3,887 2,130 1,186
Profitability Ratio
Net profit margin1 32.34% -163.90% 6.17% 39.71% 40.65%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Diamondback Energy, Inc. 2,788 (5,559) 287 1,015 462
Revenue from contracts with customers 6,747 2,756 3,887 2,130 1,186
Profitability Ratio
Adjusted net profit margin2 41.32% -201.71% 7.38% 47.66% 38.92%

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).

2021 Calculations

1 Net profit margin = 100 × Net income (loss) attributable to Diamondback Energy, Inc. ÷ Revenue from contracts with customers
= 100 × 2,182 ÷ 6,747 = 32.34%

2 Adjusted net profit margin = 100 × Adjusted net income (loss) attributable to Diamondback Energy, Inc. ÷ Revenue from contracts with customers
= 100 × 2,788 ÷ 6,747 = 41.32%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Diamondback Energy Inc. adjusted net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Revenue from contracts with customers 6,747 2,756 3,887 2,130 1,186
Total assets 22,898 17,619 23,531 21,596 7,771
Activity Ratio
Total asset turnover1 0.29 0.16 0.17 0.10 0.15
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue from contracts with customers 6,747 2,756 3,887 2,130 1,186
Adjusted total assets 22,858 17,546 23,389 21,499 7,771
Activity Ratio
Adjusted total asset turnover2 0.30 0.16 0.17 0.10 0.15

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).

2021 Calculations

1 Total asset turnover = Revenue from contracts with customers ÷ Total assets
= 6,747 ÷ 22,898 = 0.29

2 Adjusted total asset turnover = Revenue from contracts with customers ÷ Adjusted total assets
= 6,747 ÷ 22,858 = 0.30

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Diamondback Energy Inc. adjusted total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Total assets 22,898 17,619 23,531 21,596 7,771
Total Diamondback Energy, Inc. stockholders’ equity 12,088 8,794 13,249 13,699 5,255
Solvency Ratio
Financial leverage1 1.89 2.00 1.78 1.58 1.48
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets 22,858 17,546 23,389 21,499 7,771
Adjusted total Diamondback Energy, Inc. stockholders’ equity 13,386 9,504 14,993 15,387 5,363
Solvency Ratio
Adjusted financial leverage2 1.71 1.85 1.56 1.40 1.45

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).

2021 Calculations

1 Financial leverage = Total assets ÷ Total Diamondback Energy, Inc. stockholders’ equity
= 22,898 ÷ 12,088 = 1.89

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total Diamondback Energy, Inc. stockholders’ equity
= 22,858 ÷ 13,386 = 1.71

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Diamondback Energy Inc. adjusted financial leverage ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Diamondback Energy, Inc. 2,182 (4,517) 240 846 482
Total Diamondback Energy, Inc. stockholders’ equity 12,088 8,794 13,249 13,699 5,255
Profitability Ratio
ROE1 18.05% -51.36% 1.81% 6.17% 9.18%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Diamondback Energy, Inc. 2,788 (5,559) 287 1,015 462
Adjusted total Diamondback Energy, Inc. stockholders’ equity 13,386 9,504 14,993 15,387 5,363
Profitability Ratio
Adjusted ROE2 20.83% -58.49% 1.91% 6.60% 8.61%

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).

2021 Calculations

1 ROE = 100 × Net income (loss) attributable to Diamondback Energy, Inc. ÷ Total Diamondback Energy, Inc. stockholders’ equity
= 100 × 2,182 ÷ 12,088 = 18.05%

2 Adjusted ROE = 100 × Adjusted net income (loss) attributable to Diamondback Energy, Inc. ÷ Adjusted total Diamondback Energy, Inc. stockholders’ equity
= 100 × 2,788 ÷ 13,386 = 20.83%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Diamondback Energy Inc. adjusted ROE deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Diamondback Energy, Inc. 2,182 (4,517) 240 846 482
Total assets 22,898 17,619 23,531 21,596 7,771
Profitability Ratio
ROA1 9.53% -25.64% 1.02% 3.92% 6.21%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income (loss) attributable to Diamondback Energy, Inc. 2,788 (5,559) 287 1,015 462
Adjusted total assets 22,858 17,546 23,389 21,499 7,771
Profitability Ratio
Adjusted ROA2 12.20% -31.68% 1.23% 4.72% 5.94%

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).

2021 Calculations

1 ROA = 100 × Net income (loss) attributable to Diamondback Energy, Inc. ÷ Total assets
= 100 × 2,182 ÷ 22,898 = 9.53%

2 Adjusted ROA = 100 × Adjusted net income (loss) attributable to Diamondback Energy, Inc. ÷ Adjusted total assets
= 100 × 2,788 ÷ 22,858 = 12.20%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Diamondback Energy Inc. adjusted ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.