Midland, Texas-based Diamondback Energy, Inc. (FANG), with a market capitalization of approximately $56.5 billion, is an independent oil and natural gas company focused on exploring, developing, and producing hydrocarbons in the Permian Basin. It also operates crude oil and natural gas gathering infrastructure through its subsidiary, Rattler Midstream.
Shares of this leading oil and gas company have significantly outperformed the broader market over the past year. FANG has climbed 45% over this period, compared with a 20.2% gain for the broader S&P 500 Index ($SPX). The stock has continued to outperform the index in 2026, gaining 33.6%, surpassing the index’s 13.2% gain over the same period.
Compared with the iShares U.S. Oil & Gas Exploration & Production ETF (IEO), FANG has also slightly underperformed. IEO has gained 48.1% over the past year and 44.6% year-to-date.
On August 3, Diamondback Energy reported its Q2 FY2026 earnings, with shares falling about 2.1% as investors digested the results, despite results topping estimates. Total revenues rose 51.2% year over year to $5.56 billion, driven by higher oil prices and production of more than 1 million barrels of oil equivalent per day. EPS rose 18% year over year to $6.65.
Diamondback raised its full-year 2026 guidance, increasing oil production to 522 MBO/d or more and total production to 1,000 MBOE/d or more, while maintaining capital expenditures at approximately $3.9 billion.
Analysts expect FANG’s diluted EPS to increase 47.6% year-over-year to $19.73 for the fiscal year ending in December 2026. FANG has surpassed consensus EPS estimates in three of the past four quarters, while missing in one quarter.
Among the 30 analysts covering FANG stock, the consensus rating is “Strong Buy,” based on 23 “Strong Buys,” three “Moderate Buys,” and four “Holds.”
This configuration is more bearish compared to three months ago, when the stock had 24 “Strong Buy” recommendations.
On August 10, Citigroup analyst Scott Gruber maintained a “Buy” rating on Diamondback Energy while lowering the price target from $221 to $220.
Based on analysts’ estimates, the mean price target of $229.36 implies a 14.2% premium to FANG’s current share price. The Street-high price target of $272 implies a 35.4% upside.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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