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Diamondback Energy Extends Credit Agreement and Raises Dividend

Diamondback Energy, Inc. (NASDAQ:FANG) is one of the best dividend stocks according to Jim Cramer.

The company amended its Credit Agreement with Wells Fargo Bank on June 12, 2025. With the interest rates and certain fees reduced, the maturity date has been postponed to June 12, 2030.

A pipeline worker overseeing the flow of crude oil into storage tanks from an integrated water system.

Diamondback Energy, Inc. (NASDAQ:FANG) is a Texas-based independent oil and natural gas company, engaged in the business of hydrocarbon exploration. The focus of the company is on acquiring, developing, exploring, and exploiting unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin in West Texas.

With a market cap of $43.55 billion, Diamondback Energy, Inc. (NASDAQ:FANG) has announced an extension to its credit agreement on Thursday. The company’s existing credit facility had a maturity date of June 2, 2028. By successfully amending its credit terms with its lenders, the company has managed to extend the maturity date to June 12, 2030. The company’s subsidiary, Viper Energy, saw its board approve a 10% increase in base dividends after a $4.1 billion all-stock acquisition of Sitio Royalties Corp.

Following these developments, Wells Fargo reiterated their Buy rating for the stock on June 16, 2025, with a price target of $208.

Diamondback Energy, Inc. (NASDAQ:FANG) offers a dividend yield of 3.51%, with a payout ratio of 38.62%, signaling a self-sufficiency in meeting the dividend obligations. The company has had a consistent dividend payment record since 2018.

While we acknowledge the potential of FANG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Dividend Stocks for a Bear Market and 10 Best Dividend Stocks to Buy for Dependable Dividend Growth

Disclosure. None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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