Top 15 Energy Companies With the Highest Upside Potential

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

Upside Potential as of April 28: 38.86%

Diamondback Energy, Inc. (NASDAQ:FANG) is an independent oil and natural gas company, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in West Texas. The company completed its $26 billion merger with Endeavor Energy Resources last year, creating a leading operator focused on the prolific Permian Basin.

Diamondback Energy, Inc. (NASDAQ:FANG) posted strong results in Q4 2024 as its revenue surged by a significant 66.56% YoY to $3.71 billion, topping expectations by $161.67 million. The company’s adjusted EPS of $3.64 also beat estimates by $3.38. Diamondback’s production in Q4 almost doubled to an average of 883,424 boe/d, which helped offset a 9% drop in oil prices. The company’s average realized price for natural gas, however, surged by around 30%. Net cash provided by operating activities came in at $6.4 billion in FY 2024, while it generated a free cash flow of $3.6 billion.

Diamondback Energy, Inc. (NASDAQ:FANG) has experienced six straight years of dividend growth and has a 5-year dividend CAGR of almost 49%. The company recently increased its quarterly dividend by 11.1% to $1 per share and boasts a current dividend yield of 4.54%.

Diamondback Energy, Inc. (NASDAQ:FANG) remains focused on growth and is further expanding its portfolio with the acquisition of certain subsidiaries of Double Eagle IV Midco. The deal, valued at just over $4 billion, will add 27,000 barrels per day of net oil production plus 40,000 net acres in the Midland Basin of the Permian.

Recognizing its high potential, Citigroup recently upgraded Diamondback Energy, Inc. (NASDAQ:FANG) from Neutral to Buy with a price target of $180. The analyst firm touts FANG as a ‘top-tier’ exploration and production company with a break-even oil price at just $36 per barrel, the lowest in its coverage.

With an upside potential of 38.86% as of April 28, 2025, Diamondback Energy, Inc. (NASDAQ:FANG) is included among the Top Energy Stocks According to Wall Street.