8 Most Profitable Oil Stocks To Invest In

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

Number of Hedge Funds Holders: 49

5-Year Net Income CAGR: 25.54%

TTM Net Income: $3.22 Billion

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and gas company based in Texas. The company specializes in the exploration and production of crude oil from the Permian Basin. Diamondback primarily serves domestic refineries and energy distributors. The company’s subsidiary, Viper Energy, Inc., owns and acquires mineral interests and royalty interests in oil and natural gas properties mainly in the Permian Basin.

Diamondback Energy, Inc. (NASDAQ:FANG) recently completed the merger with Endeavor Energy Resources, which increases its dominance in the Permian Basin. The deal valued at $26 billion will make Diamondback the majority shareholder of Endeavor with a total stake of almost 60.5%. Endeavor merger will potentially add another 816,000 barrels of oil and gas daily.

In the third quarter of 2024, the company posted a 13% year-over-year increase in revenue, driven by higher production volumes. In the first nine months of 2024, the company drilled 211 gross wells in the Midland Basin and 24 gross wells in the Delaware Basin. The company turned 283 operated wells to production in the Midland Basin and Delaware Basin. Furthermore, Diamondback Energy, Inc. (NASDAQ:FANG) has experienced six straight years of dividend growth and has a 5-year dividend CAGR of almost 49%.