12 High Growth Oil Stocks to Buy

8. Diamondback Energy Inc. (NASDAQ:FANG)

Revenue growth past 5 years: 31.05%

Diamondback Energy Inc. (NASDAQ:FANG) is an independent oil and natural gas company focused on acquiring, developing, and exploring unconventional reserves in the Permian Basin of West Texas.

In a major acquisition move, Diamondback Energy Inc. (NASDAQ:FANG) has agreed to purchase certain units of Double Eagle, an EnCap Investments-backed energy producer, in a $4.08 billion cash-and-stock deal. This will add approximately 40,000 net acres in the core of the Midland Basin. Additionally, the company has executed a $1.0 billion drop-down transaction with its subsidiary, Viper Energy, selling certain mineral and royalty interests in exchange for cash and 69.3 million Viper common units.

For Q4, 2024, the company posted 475,900 barrels of oil per day in average production, generating $2.3 billion in operating cash flow, with free cash flow of $1.3 billion. Capital expenditures came in at $933 million, reflecting efficient spending. Diamondback Energy Inc. (NASDAQ:FANG) increased its annual base dividend by 11% to $4.00 per share, declaring a Q4 dividend of $1.00 per share (2.6% annualized yield). The company also returned $694 million to shareholders through dividends and stock buybacks, representing 51% of adjusted free cash flow.