Diamondback Energy Inc . (NASDAQ:FANG) has been trending higher since October, but has recently hit resistance. If the stock breaks through this resistance line, a breakout could soon occur. Read more to learn how to profit from this trade.Diamondback Energy Inc. (FANG) is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2020, the company reported net proven reserves of 1.3 billion barrels of oil equivalent.
The company has recently been active in building its asset base in the Permian Basin. Plus, FANG just announced it closed a deal to acquire QEP resources and Guidon Operating LLC. This should help the company consolidate its assets in the Midland Basin. Its oil production should increase along with higher prices this year.
While its cash of $121 million as of the end of the first quarter is low, its short-term debt is not much higher at $191 million. In terms of growth, FANG has generated an average of 48.2% sales growth over the past five years. Sales are expected to rise 117.7% year over year this quarter, while earnings are forecasted to soar 1,273.3%.