10 High Growth Non-Tech Stocks That Are Profitable in 2024

6. Diamondback Energy, Inc. (NASDAQ:FANG)

5-Year Net Income Growth: 33.42%

5-Year Revenue Growth: 25.01%

TTM Net Income: $3.46 Billion

Number of Hedge Fund Holders: 44

Diamondback Energy, Inc. (NASDAQ:FANG) ranks 6th on our list of high-growth non-tech stocks that are profitable in 2024. It is an independent oil and natural gas company that operates in the oil-rich area of the Permian Basin. It engages in acquiring and developing land for oil and gas exploration and production. The company has significant holdings in the Permian Basin, with more than 607,800 acres of land, including more than 428,000 acres in the Midland Basin and around 174,800 acres in the Delaware Basin.

Recently, the company announced a significant merger with Endeavor Energy Resources in a deal valued at $26 billion. The merger is expected to add to the operational footprint of Diamondback Energy, Inc. (NASDAQ:FANG) and is expected to produce 816,000 barrels of oil equivalent (boe) daily.

The company is already producing significant volumes of oil. During the second quarter of 2024, it produced 271.6 Mbo/d which was up 1% subsequently. Moreover, it also generates significant cash flow from its operations and returns most of it to its investors. During the quarter it generated $816 million free cash flow, moreover, the recent merger is expected to further boost the annualized synergies by $550 million.

Its differentiating factor lies in its ability to emphasize increasing its production to generate more revenue and net income each quarter. The second quarter revenue for Diamondback Energy, Inc. (NASDAQ:FANG) was up more than 25% year-over-year. Whereas, its net income of $837 million indicated a 50.54% increase during the same time.

Looking ahead, management expects net production between 462 MBOE/d and 470 MBOE/d for the full year.

ClearBridge Select Strategy stated the following regarding Diamondback Energy, Inc. (NASDAQ:FANG) in its first quarter 2024 investor letter:

Our final addition was Diamondback Energy, Inc. (NASDAQ:FANG), a leading oil and gas producer that agreed to acquire fellow exploration and production company Endeavor Energy Resources in the quarter. The deal should allow Diamondback to capture operating synergies and streamline costs by reducing rig redundancies and optimizing production techniques. Endeavor has previously prioritized double-digit production growth over capital discipline, leading to the quick depletion of its core inventory in the oil-rich Midland Basin. Diamondback’s focus on free cash flow generation should allow the combined entity, which we consider an evolving opportunity, to rein back its production levels and extend the longevity of this high-quality acreage to fund cash returns. Diamondback replaces the energy exposure the portfolio will lose with the pending acquisition of top 15 holding Pioneer Natural Resources by Exxon Mobil.