Bill Cara

Cara Community Oilers: Diamondback

 Energy (NASDAQ: FANG) reviewed 10-15-2020

Market Cap: $4.83 Billion (USD)                 Share Price: $30.63 (USD)

Stock chart: https://www.investing.com/equities/diamondback-energy-inc-chart

Shares outstanding: 157,829,000

Cash & cash equivalents: $51 Million (USD) at 30 Jun 2020

Debt:  $5.95 Billion (USD) at 30 Jun 2020

Insiders: Low                                      Institutional: 771 holders hold virtually all the stock

Website: ir.diamondbackenergy.com

Investor presentation: https://ir.diamondbackenergy.com/static-files/8df63284-bef7-4491-8447-d60d07a8f99d

CEO: Travis D. Stice                          HQs: Midland, TX

Independent oil & natural gas company focuses on acquisition, development, exploration, and exploitation of natural resources in the Permian Basin in west Texas and southeast New Mexico

Large operator: Has 348,000 net acres & 8,100 net horizontal locations in Midland & Delaware basins

Q3 production was updated on Oct 13, 2020, at 170MBOPD realizing a total unhedged price (oil equivalent) of $26.78 BOE

The balance sheet is laden with debt — the debt-to-cash ratio is approximately 116:1

Revenue of $1.18 Billion in 1H2020 compared to $1.69 Billion in 1H2019

Cash from operations was also lower, at $425 Million in Q2. This includes sales from oil, natural gas, liquids, and midstream services. The company had a painful impairment charge of over $2.5 Billion in Q2 due to curtailment of operations

Reported losses of ($15.16) per share in Q2 2020, and ($16.86) per share for 1st half 2020

Pays a $1.50 per share dividend with a yield of 4.93%

CEO states: “the concept of production growth should not be discussed until commodity prices recover and global inventories return to normalized levels”

Bottom Line:

  • The company was a strong performer in recent years but ran into huge headwinds in the past year
  • No position at present or contemplated although this was a personal favorite a few years ago, and may become one again in 2021