Diamondback Energy, Inc. (NASDAQ:FANG) Raises Dividend to $1.18 Per Share

Key Points

• Diamondback Energy raised its quarterly dividend 7.3% to $1.18 per share, payable November 19 to shareholders of record on November 12. The dividend implies an annualized payout of $4.72 and a 2.4% yield.
• The company has increased its dividend for seven consecutive years, with a current earnings payout ratio of 33.2%, suggesting the dividend remains well covered.
• Diamondback reported quarterly EPS of $5.86, beating estimates of $5.72, while revenue rose 38.4% year over year to $5.43 billion. Shares opened at $199.74 after falling 5.8%.

Diamondback Energy, Inc. (NASDAQ:FANG - Get Free Report) declared a quarterly dividend on Monday, November 2nd. Investors of record on Thursday, November 12th will be given a dividend of $1.18 per share by the oil and natural gas company on Thursday, November 19th. This represents a $4.72 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, November 12th. This is a 7.3% increase from Diamondback Energy's previous quarterly dividend of $1.10.

Diamondback Energy has raised its dividend by an average of 0.2% annually over the last three years and has increased its dividend annually for the last 7 consecutive years. Diamondback Energy has a payout ratio of 33.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Diamondback Energy to earn $20.10 per share next year, which means the company should continue to be able to cover its $4.40 annual dividend with an expected future payout ratio of 21.9%.

Diamondback Energy Stock Down 5.8%

Shares of Diamondback Energy stock opened at $199.74 on Tuesday. Diamondback Energy has a twelve month low of $137.03 and a twelve month high of $216.90. The stock has a market cap of $55.93 billion, a price-to-earnings ratio of 38.94 and a beta of 0.55. The company has a current ratio of 0.47, a quick ratio of 0.45 and a debt-to-equity ratio of 0.25. The company has a fifty day moving average price of $197.16 and a 200 day moving average price of $189.30.

Diamondback Energy (NASDAQ:FANG - Get Free Report) last issued its quarterly earnings data on Monday, November 2nd. The oil and natural gas company reported $5.86 EPS for the quarter, topping analysts' consensus estimates of $5.72 by $0.14. Diamondback Energy had a return on equity of 10.10% and a net margin of 8.58%. The company had revenue of $5.43 billion for the quarter, compared to analysts' expectations of $4.60 billion. During the same quarter in the previous year, the firm posted $3.08 earnings per share. The firm's quarterly revenue was up 38.4% on a year-over-year basis. Equities research analysts forecast that Diamondback Energy will post 21.49 earnings per share for the current fiscal year.

Diamondback Energy Company Profile

Diamondback Energy, Inc is an independent oil and natural gas company engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves. The company's operations are concentrated in the Permian Basin of West Texas and southeastern New Mexico, particularly the Midland and Delaware Basins.

Diamondback produces crude oil, natural gas and natural gas liquids from horizontal wells and related infrastructure. Its activities include drilling and completing wells, operating gathering and processing assets, and managing midstream services that support production.

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