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FANG (Diamondback Energy) Beneish M-Score : -3.05 (As of Oct. 31, 2024)


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What is Diamondback Energy Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Diamondback Energy's Beneish M-Score or its related term are showing as below:

FANG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.14   Med: -2.06   Max: -0.57
Current: -3.05

During the past 13 years, the highest Beneish M-Score of Diamondback Energy was -0.57. The lowest was -3.14. And the median was -2.06.


Diamondback Energy Beneish M-Score Historical Data

The historical data trend for Diamondback Energy's Beneish M-Score 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 Beneish M-Score Chart

Diamondback Energy Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.47 -2.55 -2.02 -2.19 -3.14

Diamondback Energy Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score 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 -2.91 -2.60 -3.14 -2.88 -3.05

Competitive Comparison of Diamondback Energy's Beneish M-Score

For the Oil & Gas E&P subindustry, Diamondback Energy's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diamondback Energy's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Diamondback Energy's Beneish M-Score falls into.



Diamondback Energy Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Diamondback Energy for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9213+0.528 * 1.1336+0.404 * 0.3622+0.892 * 1.1164+0.115 * 0.8896
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.992+4.679 * -0.067907-0.327 * 1.261
=-3.05

* 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.

This Year (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $830 Mil.
Revenue was 2482 + 2228 + 2228 + 2340 = $9,278 Mil.
Gross Profit was 1227 + 1194 + 1258 + 1426 = $5,105 Mil.
Total Current Assets was $7,825 Mil.
Total Assets was $35,637 Mil.
Property, Plant and Equipment(Net PPE) was $27,099 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,864 Mil.
Selling, General, & Admin. Expense(SGA) was $165 Mil.
Total Current Liabilities was $2,137 Mil.
Long-Term Debt & Capital Lease Obligation was $11,980 Mil.
Net Income was 837 + 768 + 960 + 915 = $3,480 Mil.
Non Operating Income was 31 + -52 + 107 + -31 = $55 Mil.
Cash Flow from Operations was 1529 + 1334 + 1624 + 1358 = $5,845 Mil.
Total Receivables was $807 Mil.
Revenue was 1919 + 1925 + 2030 + 2437 = $8,311 Mil.
Gross Profit was 1071 + 1111 + 1311 + 1691 = $5,184 Mil.
Total Current Assets was $918 Mil.
Total Assets was $27,587 Mil.
Property, Plant and Equipment(Net PPE) was $25,145 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,527 Mil.
Selling, General, & Admin. Expense(SGA) was $149 Mil.
Total Current Liabilities was $2,123 Mil.
Long-Term Debt & Capital Lease Obligation was $6,543 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(830 / 9278) / (807 / 8311)
=0.089459 / 0.0971
=0.9213

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(5184 / 8311) / (5105 / 9278)
=0.623752 / 0.550226
=1.1336

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (7825 + 27099) / 35637) / (1 - (918 + 25145) / 27587)
=0.020007 / 0.055243
=0.3622

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=9278 / 8311
=1.1164

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1527 / (1527 + 25145)) / (1864 / (1864 + 27099))
=0.057251 / 0.064358
=0.8896

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(165 / 9278) / (149 / 8311)
=0.017784 / 0.017928
=0.992

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((11980 + 2137) / 35637) / ((6543 + 2123) / 27587)
=0.396133 / 0.314133
=1.261

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(3480 - 55 - 5845) / 35637
=-0.067907

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Diamondback Energy has a M-score of -3.05 suggests that the company is unlikely to be a manipulator.


Diamondback Energy Beneish M-Score Related Terms

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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