Diamondback Energy (FANG) Company Report

Q4 2025 maintenance CapEx of $925 million, targeting flat production at ~505 kbd in Q1 2026 and a 36% reinvestment rate at mid-$60 oil YTD.
Maintains a “yellow light” macro stance, prioritizing free cash flow per share, dividend sustainability, ~1% quarterly share buybacks, and debt reduction.
Executed $1 billion of non-core asset sales at premiums to trading multiples, including Viper non-core divestitures, and holds a 30% stake in water JV Deep Blue to drive value.
Endeavor co-development synergies delivering ~20% PV-10 per well uplift, more wells per section and higher returns per DSU; 2026 well performance expected to mirror 2024–25 levels.
Advancing gas monetization, committing 50 MMcf/d to a 1.3 GW Basin Ranch power plant (2029), reducing Waha exposure from >70% to ~40% by YE 2026 and securing pipeline capacity on Whistler, Matterhorn, Blackcomb, and Hugh Rinson.

Nov 4, 2025, 2:00 PM

Transcript

Diamondback Energy reports Q3 2025 results

FANG

Earnings

Guidance Update

Share Buyback

Diamondback achieved a 36% year-to-date reinvestment rate at mid-$60s oil, emphasizing free cash flow per share growth amid cautious macro conditions.
Q4 CapEx is guided to ~$925 million per quarter to maintain ~510,000 boe/d (down to 505,000 boe/d in Q1 post-Viper sale), setting a 2026 spending baseline.
The Endeavor merger is driving a ~20% improvement in pro forma PV-10 per well, and 2026 well performance is expected to mirror 2024–25 results.
Efficiency initiatives like continuous pumping boost lateral footage per day by ~20%, enhancing cycle times and capital efficiency.
Free cash flow priorities include the base dividend, share buybacks of ≥1% float per quarter, debt reduction, and selective bolt-on M&A.

Nov 4, 2025, 2:00 PM

Transcript

Diamondback Energy reports Q3 2025 results

FANG

Earnings

Guidance Update

Share Buyback

Generated $1.8 billion of Free Cash Flow and $1.8 billion of Adjusted Free Cash Flow (~$6.20/share) in Q3 2025; expects ~$5.8 billion of Adjusted FCF in 2025 at current commodity prices
Returned ~50% of Adjusted FCF in Q3 2025, distributing $892 million via a $1.00/share dividend and share repurchases; $3.0 billion remaining in buyback authorization
Achieved 503.8 Mbo/d oil production (942.9 Mboe/d) in Q3 2025; full-year 2025 oil production guidance raised to 495–498 Mbo/d with CAPEX of $3.45–3.55 billion
Maintained an investment-grade balance sheet with ~$15.9 billion net debt and ~$2.4 billion standalone liquidity

Nov 4, 2025, 2:00 PM

Presentation

Diamondback Energy outlines Q4 2025 CapEx guidance and strategic update

FANG

Guidance Update

Share Buyback

M&A

Q4 CapEx guidance of ~$925 million targets maintaining a 505,000 bbl/d run rate, implying a $875–975 million quarterly maintenance range for 2026.
Pro-forma section returns improved ~20% following the Endeavor merger; 2025 well performance aligns with 2024 and is expected to carry into 2026.
Cautious “yellow light” macro view, having generated 15% more free cash/share despite a 14% drop in oil prices, and executing at $63 oil with a 36–37% reinvestment ratio.
Completed $1.5 billion of non-core asset sales at premiums to Diamondback’s trading multiples, strengthening the balance sheet ahead of potential supply-side headwinds.
Free cash deployment priorities: maintain the base dividend, repurchase ≥1% of float per quarter, then pursue debt reduction and selective bolt-on M&A.

Nov 4, 2025, 2:00 PM

Transcript

Diamondback Energy details Q3 2025 performance and 2026 outlook

FANG

Guidance Update

Share Buyback

Divestitures

Merger synergy: Pro forma average PB per well expected to improve ~20%, with 2026 well performance projected to mirror 2024–25 results.
Divestitures: Sold $1.5 billion of non-core assets at premium multiples, strengthening the balance sheet and reducing debt leverage.
Capital strategy: Maintenance CapEx guidance of $925 million/quarter supports ~510 k bopd with a reinvestment ratio below 37%, while continuous-pumping rollout aims to boost lateral footage by ~20% per day to enhance cycle times.
Shareholder returns: Targets 1% of public float in quarterly share buybacks, maintains a growing dividend, and prioritizes further debt reduction.

Nov 4, 2025, 2:00 PM

Transcript

Diamondback Energy reports Q3 2025 results

FANG

Earnings

Guidance Update

Share Buyback

Diamondback Energy delivered Q3 2025 average oil production of 503.8 MBO/d (942.9 MBOE/d), net cash from operations of $2.4 billion, and free cash flow of $1.8 billion while investing $774 million in capex.
The Board declared a $1.00 per share base dividend for Q3 and repurchased 4.29 million shares for $603 million, returning $892 million to shareholders (50% of adjusted FCF).
M&A activity included the acquisition of Sitio Royalties by Viper Energy on August 19, and the divestitures of Environmental Disposal Systems (upfront $694 million) and EPIC Crude (upfront $504 million) with potential contingent proceeds.
Updated full-year 2025 guidance was raised to 495–498 MBO/d in oil production (910–920 MBOE/d), narrowed capex to $3.45–3.55 billion, and Q4 oil production guidance of 505–515 MBO/d with $875–975 million in capex.

Nov 3, 2025, 9:06 PM

8-K

Diamondback Energy announces Q3 2025 financial and operating results

FANG

Earnings

Dividends

Share Buyback

Diamondback averaged 503.8 MBO/d of oil (942.9 MBOE/d) in Q3 2025 and generated $2.4 billion of net cash from operating activities and $2.5 billion of operating cash flow before working capital changes.
The company incurred $774 million of cash capital expenditures in the quarter, resulting in $1.8 billion of both free cash flow and adjusted free cash flow.
The Board declared a $1.00 per share base dividend for Q3 2025 (2.8% annualized yield) and repurchased 4.29 million shares for $603 million, representing 50% of adjusted free cash flow returned via buybacks and dividends.
In recent highlights, Diamondback closed divestitures of Environmental Disposal Systems for $694 million and its 27.5% interest in EPIC Crude for $504 million, with up to $296 million of contingent consideration possible.

Nov 3, 2025, 9:01 PM

Press Release

FANG

Guidance Update

Share Buyback

M&A

Diamondback remains in the “yellow” macro zone, maintaining flat oil volumes until clearer price signals and focusing on lowering breakevens and reinvestment rates to maximize free cash flow.
2025 guidance revised: capex reduced by $500 million; Q4 capex set at $875–975 million; annual oil production guidance raised to 495–498 MBO/d and BOE guidance to 910–920 MBOE/d.
In Q3, oil production averaged 504 MBO/d, capex was $774 million, cash operating costs were $10.05/BOE, net operating cash flow was $2.4 billion, and free cash flow was $1.8 billion.
Returned approximately $892 million to shareholders in Q3 (≈50% of adjusted FCF), including repurchasing 4.3 million shares for $603 million at an average $140.70 per share; YTD repurchases total 10.9 million shares for $1.6 billion.
Exceeded $1.5 billion target in non-core asset sales with $694 million from Environmental Disposal and $504 million from EPIC; ended Q3 with $16.4 billion gross debt and $15.9 billion net debt.

Nov 3, 2025, 9:01 PM

Press Release

Viper Energy reports Q3 2025 results and non-Permian divestiture

FANG

Earnings

Dividends

M&A

Q3 2025 average production of 56,087 bo/d (108,859 boe/d).
Q3 consolidated net loss of $197 million; net loss attributable to Viper of $77 million, or $0.52 per Class A share; adjusted net income of $156 million, or $1.04 per share.
Declared base cash dividend of $0.33 and variable cash dividend of $0.25 per Class A share for Q3 2025.
Entered a definitive agreement to sell non-Permian assets for $670 million, expected to close Q1 2026.
Repurchased 2.4 million shares of Class A common stock for approximately $90 million (avg. $38.42/share).

Nov 3, 2025, 9:01 PM

Press Release

Diamondback Energy updates 2025 guidance and capital allocation

FANG

Guidance Update

Dividends

Share Buyback

Diamondback generated $1,242 million of Free Cash Flow in Q2 2025 ($4.25/share) and $1,334 million of Adjusted FCF ($4.57/share), returning ~52% of Adjusted FCF to shareholders via a $1.00 per share dividend and $398 million of share repurchases.
Updated full-year 2025 guidance: oil production of 485–492 Mbo/d, cash CAPEX of $3.4–$3.6 billion, and expected > $5.8 billion of Adjusted FCF at current commodity prices.
Committed to returning at least 50% of quarterly FCF with a $1.00 per share quarterly base dividend (annualized $4.00), protected down to ~$37/Bbl WTI, and $3.5 billion remaining under an $8 billion share buyback authorization.
Enhanced capital efficiency with 2025 oil production per $MM CAPEX of 50.9 Mbo/$MM, up 14% versus original guidance and 18% versus 2024.

Oct 26, 2025, 11:45 PM

Presentation

Earnings Transcripts

Quarterly earnings call transcripts for Diamondback Energy.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Kaes Van’t Hof say about margins?What are Diamondback Energy's strategic priorities?How is Diamondback Energy positioned vs competitors?How did Diamondback Energy do last quarter?

Let Fintool AI Agent track Diamondback Energy's earnings for you

Get instant analysis when filings drop