DIAMONDBACK ENERGY INC
FANG
Energy
3
exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Diamondback Energy is an independent oil and gas exploration and production company focused on the Permian Basin. Its core business is the upstream extraction of fossil fuels, a sector with inherently high greenhouse gas intensity. The company’s operational model involves significant emissions from flaring, venting, and combustion.
ViolationTracker documents Diamondback with $4.1 million in penalties across five air pollution violations, alongside $1.6 million across 14 environmental violations. A 2025 investigation by The Texas Tribune highlighted the state’s permissive flaring regime, noting that more than half of all approved permanent flaring exemptions went to Endeavor Energy Resources prior to its merger with Diamondback. This acquisition integrates operations with a documented history of regulatory reliance on flaring exemptions. Diamondback’s emissions profile and compliance record place it among the higher-emitting peers within the upstream oil and gas sector.
Diamondback Energy is an independent oil and natural gas company focused exclusively on the acquisition, development, exploration, and exploitation of unconventional onshore reserves. Its operations are concentrated in the Permian Basin of West Texas. The company reported average production of 969,120 barrels of oil equivalent per day in the fourth quarter of 2025, deriving 100% of its revenue from fossil fuel extraction.
ViolationTracker documents a pattern of environmental enforcement actions against the company, with penalties totaling over $5.6 million across at least 19 records. The majority of these penalties are linked to air pollution and other environmental violations directly tied to its upstream extraction activities.
Diamondback Energy is an independent oil and natural gas company focused on the acquisition, development, exploration, and production of onshore oil and natural gas reserves in the Permian Basin. Its operations span the full fossil fuel value chain, encompassing upstream exploration and production as well as midstream services through its ownership of Rattler Midstream LP, which operates, develops, and acquires midstream infrastructure.
The company has accumulated $5.7 million in penalties across 19 environmental enforcement records documented by ViolationTracker, primarily for air and environmental violations. Furthermore, Diamondback Energy is currently the subject of multiple legal and regulatory actions alleging anti-competitive behavior. In 2024, the Federal Trade Commission initiated an investigation into whether company executives attempted to collude with OPEC officials on oil market dynamics. Separately, a class-action lawsuit filed by drivers in 2024 alleges Diamondback participated in a price-fixing scheme with other shale oil producers.
Research Sources
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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.
This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.
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