7 Best Cheap Energy Stocks to Invest in Now

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

Number of Hedge Fund Holders: 53

P/E Ratio: 10.06

Diamondback Energy, Inc. (NASDAQ:FANG) has been strengthening its presence in the Permian Basin through smart buyouts and capital management. The company has grown its top-tier drilling sites while maintaining a solid free cash flow and returns to shareholders.

For the quarter ending December 31, 2024, Diamondback Energy, Inc. (NASDAQ:FANG) reported $1.1 billion in net income, or $3.67 per share after dilution. Adjusted net income hit $3.64 per share, beating forecasts. The company had $2.3 billion in operating cash flow and $1.4 billion in adjusted free cash flow, reflecting its strong financial health.

Diamondback Energy, Inc. (NASDAQ:FANG)’s production rose to 475,900 barrels of oil per day, a 91% increase from the same period last year. This boost came from integrating Endeavor Energy, which the company acquired in 2024 for $26 billion. Looking forward, it expects full-year 2025 production will range from 883,000 to 909,000 BOE/d, with oil output projected at 485,000 to 498,000 barrels per day.

Diamondback Energy, Inc. (NASDAQ:FANG) is committed to selling at least $1.5 billion in non-core assets, aiming for long-term net debt cuts to $6-8 billion. At year-end 2024, net debt was $13.2 billion, with over $2.6 billion in cash on hand. The company also increased its yearly base dividend by 11% to $4.00 per share and bought back $402 million in shares during Q4.

With careful capital management and a growing presence in the Permian Basin, Diamondback Energy, Inc. (NASDAQ:FANG) is well-positioned for long-term value growth, making it a top pick among the best cheap energy stocks to buy now.