Energy XXI Gulf Coast (EGC) & Diamondback Energy (FANG) Financial Analysis

Energy XXI Gulf Coast (NASDAQ:EGC) and Diamondback Energy (NASDAQ:FANG) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Energy XXI Gulf Coast and Diamondback Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Energy XXI Gulf Coast N/A N/A N/A
Diamondback Energy 33.63% 10.75% 7.35%

Analyst Recommendations

This is a breakdown of recent ratings for Energy XXI Gulf Coast and Diamondback Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Energy XXI Gulf Coast 0 0 0 0 N/A
Diamondback Energy 0 1 27 1 3.00

Diamondback Energy has a consensus price target of $157.52, indicating a potential upside of 51.32%. Given Diamondback Energy’s higher possible upside, analysts clearly believe Diamondback Energy is more favorable than Energy XXI Gulf Coast.

Institutional & Insider Ownership

74.7% of Energy XXI Gulf Coast shares are owned by institutional investors. 0.7% of Energy XXI Gulf Coast shares are owned by insiders. Comparatively, 0.6% of Diamondback Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Energy XXI Gulf Coast and Diamondback Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Energy XXI Gulf Coast N/A N/A N/A N/A N/A
Diamondback Energy $1.21 billion 8.75 $516.75 million $5.30 19.64

Diamondback Energy has higher revenue and earnings than Energy XXI Gulf Coast.

Dividends

Diamondback Energy pays an annual dividend of $0.50 per share and has a dividend yield of 0.5%. Energy XXI Gulf Coast does not pay a dividend. Diamondback Energy pays out 9.4% of its earnings in the form of a dividend.

Summary

Diamondback Energy beats Energy XXI Gulf Coast on 8 of the 11 factors compared between the two stocks.

About Energy XXI Gulf Coast

Energy XXI Gulf Coast, Inc., an exploration and production company, engages in the acquisition, development, exploitation, and operation of oil and natural gas properties in the United States Gulf Coast region. It primarily operates properties offshore on the Gulf of Mexico Shelf, as well as onshore in Louisiana and Texas. As of December 31, 2017, the company had total proved reserves of 88.2 million barrel of oil equivalent; and operated or had an interest in 577 gross producing wells on 421,974 net developed acres, including interests in 55 producing fields. Energy XXI Gulf Coast, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

About Diamondback Energy

Diamondback Energy, Inc., an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of onshore oil and natural gas reserves in the Permian Basin in West Texas. Its activities are primarily focused on the Wolfcamp, Spraberry, Clearfork, Bone Spring, and Cline formations. As of December 31, 2017, the company's net acreage position was approximately 206,660 acres in the Permian Basin; and estimated proved oil and natural gas reserves were 335,352 thousand barrels of crude oil equivalent. It also held working interests in 1,166 gross producing wells, as well as royalty interests in 64 additional wells. In addition, the company, through its subsidiary, Viper Energy Partners LP, owns mineral interests in approximately 247,602 gross acres primarily in Midland County, Texas. Diamondback Energy, Inc. was founded in 2007 and is headquartered in Midland, Texas.

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