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FANG (Diamondback Energy) Gross Margin % : 49.44% (As of Jun. 2024)


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What is Diamondback Energy Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Diamondback Energy's Gross Profit for the three months ended in Jun. 2024 was $1,227 Mil. Diamondback Energy's Revenue for the three months ended in Jun. 2024 was $2,482 Mil. Therefore, Diamondback Energy's Gross Margin % for the quarter that ended in Jun. 2024 was 49.44%.


The historical rank and industry rank for Diamondback Energy's Gross Margin % or its related term are showing as below:

FANG' s Gross Margin % Range Over the Past 10 Years
Min: 22.64   Med: 49.31   Max: 70.29
Current: 55.02


During the past 13 years, the highest Gross Margin % of Diamondback Energy was 70.29%. The lowest was 22.64%. And the median was 49.31%.

FANG's Gross Margin % is ranked better than
80.31% of 904 companies
in the Oil & Gas industry
Industry Median: 27.72 vs FANG: 55.02

Diamondback Energy had a gross margin of 49.44% for the quarter that ended in Jun. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Diamondback Energy was 9.90% per year.


Diamondback Energy Gross Margin % Historical Data

The historical data trend for Diamondback Energy's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Diamondback Energy Gross Margin % Chart

Diamondback Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 40.19 22.64 63.56 70.29 57.91

Diamondback Energy Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 55.81 60.94 56.46 53.59 49.44

Competitive Comparison of Diamondback Energy's Gross Margin %

For the Oil & Gas E&P subindustry, Diamondback Energy's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Diamondback Energy's Gross Margin % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diamondback Energy's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's Gross Margin % falls into.



Diamondback Energy Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Diamondback Energy's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=4871 / 8412
=(Revenue - Cost of Goods Sold) / Revenue
=(8412 - 3541) / 8412
=57.91 %

Diamondback Energy's Gross Margin for the quarter that ended in Jun. 2024 is calculated as


Gross Margin % (Q: Jun. 2024 )=Gross Profit (Q: Jun. 2024 ) / Revenue (Q: Jun. 2024 )
=1227 / 2482
=(Revenue - Cost of Goods Sold) / Revenue
=(2482 - 1255) / 2482
=49.44 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Diamondback Energy  (NAS:FANG) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Diamondback Energy had a gross margin of 49.44% for the quarter that ended in Jun. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Diamondback Energy Gross Margin % Related Terms

Thank you for viewing the detailed overview of Diamondback Energy's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Diamondback Energy Business Description

Address
500 West Texas Avenue, Suite 1200, Midland, TX, USA, 79701
Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.
Executives
Teresa L. Dick officer: CFO, Exec. VP, Assist. Sec. 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Van't Hof Matthew Kaes officer: Sr. VP - Strategy & Corp Dev 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Daniel N Wesson officer: Exec. VP - Operations 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Matt Zmigrosky officer: Exec. VP and General Counsel 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Travis D. Stice director, officer: Chief Executive Officer 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
David L Houston director 14313 NORTH MAY AVENUE, OKLAHOMA CITY OK 73134
Steven E West director 411 WEST PUTNAM AVE., SUITE 125, GREENWICH CT 06830
Frank D. Tsuru director 500 WEST TEXAS AVENUE, SUITE 1200, MIDLAND TX 79701
Rebecca A Klein director 1411 E MISSION AVE, SPOKANE WA 99202
Jennifer Soliman officer: Sr. VP and Chief HR Officer 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Russell Pantermuehl officer: Exec. VP Reservoir Engineering 500 WEST TEXAS, SUITE 1225, MIDLAND TX 79701
Michael P Cross director 515 CENTRAL PARK, OKLAHOMA CITY OK 73101
Thomas F. Hawkins officer: Sr. VP - Land 500 WEST TEXAS, SUITE 1200, MIDLAND TX 79701
Stephanie K. Mains director C/O GATES INDUSTRIAL CORPORATION PLC, 1144 FIFTEENTH STREET, SUITE 1400, DENVER CO 80202
Vincent K Brooks director 900 POLO CLUB DRIVE, AUSTIN TX 78737