This Texas-based Driller Just Beat Earnings Estimates Again

Diamondback Energy (NASDAQ: FANG) reported Q4 and fiscal 2021 earnings results following the market close on Tuesday, Feb. 22. The Midland, Texas-based oil and gas exploration firm delivered outstanding results -- beating expectations for revenue and earnings.

Diamondback produces oil through a technique called hydraulic fracturing -- also known as fracking. This process involves injecting sand, water, or chemicals at high pressure deep underground to break or 'fracture' the existing bedrock. This method releases oil and gas trapped within the bedrock.

Rising energy prices supplied a strong tailwind for Diamondback, as worldwide energy demand has picked up as the coronavirus pandemic has waned. Even with the stellar report and rosy outlook, Diamondback's shares are up only 4.9% since the earnings release -- owing to the broader market sell-off following the Russian invasion of Ukraine. So is this an opportunity for investors to load up on Diamondback? Let's take a closer look.

Source Fool.com