What Diamondback Energy Does & How It Makes Money (FANG)

Updated October 2026 · reflects Diamondback Energy's latest reported financials

Independent oil and gas producer focused on the Permian Basin. It makes money by producing crude oil, natural gas and related liquids from its Permian Basin wells and selling them at market prices.

Diamondback Energy's story, moat and numbers — in a 3-minute visual book.

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How Diamondback Energy makes money

It makes money by producing crude oil, natural gas and related liquids from its Permian Basin wells and selling them at market prices. Its revenue and profits therefore rise and fall with oil and gas prices.

What Diamondback Energy does

Diamondback Energy is an independent oil and natural gas company that acquires, develops, explores and exploits unconventional onshore reserves in the Permian Basin of West Texas and New Mexico. Its work centers on the Spraberry and Wolfcamp formations of the Midland Basin and the Wolfcamp and Bone Spring formations of the Delaware Basin. The company was founded in 2007 and is headquartered in Midland, Texas. It is a pure-play Permian producer, so its results depend closely on commodity prices, drilling efficiency and the quality of its acreage in the basin.

Products & services

• Crude oil
• Natural gas
• Natural gas liquids
• Midland Basin Spraberry and Wolfcamp development
• Delaware Basin Wolfcamp and Bone Spring development

What is Diamondback Energy worth?

On an owner-earnings DCF, Diamondback Energy's most-likely value is about $163 versus a recent price near $192 (15% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$114) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Related companies

Permian Resources (PR) · Viper Energy (VNOM) · Devon Energy (DVN) · Matador Resources (MTDR) · SM Energy (SM)