Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Diamondback Energy Inc., EBITDA 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)
Add: Net income attributable to noncontrolling interest	94)	(155)	75)	99)	34)
Add: Income tax expense	631)	(1,104)	47)	168)	(20)
Earnings before tax (EBT)	2,907)	(5,776)	362)	1,113)	497)
Add: Interest expense, less capitalized interest	189)	195)	169)	77)	39)
Earnings before interest and tax (EBIT)	3,096)	(5,581)	531)	1,191)	536)
Add: Depreciation, depletion, amortization and accretion	1,275)	1,311)	1,454)	625)	328)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,371)	(4,270)	1,985)	1,816)	864)

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
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	Diamondback Energy Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	35,957)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,371)
Valuation Ratio
EV/EBITDA	8.23
Benchmarks
EV/EBITDA, Competitors¹
Chevron Corp.	5.70
ConocoPhillips	4.81
Exxon Mobil Corp.	6.50
Occidental Petroleum Corp.	4.98
Texas Pacific Land Corp.	47.54
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels	8.01
EV/EBITDA, Industry
Energy	8.19

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

¹ Click competitor name to see calculations.

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

Enterprise Value to EBITDA Ratio, Historical

Diamondback Energy Inc., historical EV/EBITDA 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)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	4,371)	(4,270)	1,985)	1,816)	864)
Valuation Ratio
EV/EBITDA³	6.83	—	8.22	12.13	16.18
Benchmarks
EV/EBITDA, Competitors⁴
Chevron Corp.	7.18	18.57	6.39	—	—
ConocoPhillips	6.34	23.12	4.13	—	—
Exxon Mobil Corp.	7.07	16.97	6.91	—	—
Occidental Petroleum Corp.	5.30	—	10.32	—	—
Texas Pacific Land Corp.	19.54	35.64	12.06	—	—
EV/EBITDA, Sector
Oil, Gas & Consumable Fuels	6.83	24.68	6.53	—	—
EV/EBITDA, Industry
Energy	7.08	36.93	7.66	—	—