Diamondback Energy (FANG) Company Report

Diamondback unveiled a new Barnett shale position with 900 gross locations, targeting cost reductions from $1,000 to $800 per lateral foot to achieve competitive returns and meaningful NAV uplift.
Management executed a 60-well surfactant pilot in 2H 2025 to boost production and reserves, describing it as Version 1.0 of a potentially economic enhancement technology.
The company is rolling out continuous pumping across simul-frac fleets, achieving up to 5,500 ft/day, with the goal of shorter cycle times and eventual frac-crew reductions.
For 2026, Diamondback plans to maintain flat oil production under a conservative CapEx guide, while leaving room for H2 CapEx cuts if operational gains materialize.

13 hours ago

Transcript

Diamondback Energy unveils Barnett development and 2026 guidance

FANG

Earnings

Guidance Update

New Projects/Investments

Diamondback has built a 900-location Barnett position from near zero acreage in recent years without external capital or large acquisitions, with full-field development slated to begin in H2 2026 targeting a 20% cost reduction to drive attractive returns.
Initial Barnett well results show ~3,000 GORs, with a 67% oil cut sustained over 12 months (versus Midland core’s decline from ~80% to ~75% in 6 months), and the company aims to lower lateral costs to $800/ft (from $1,000/ft) to rival Midland’s $5.10–$5.20/ft development cost.
For 2026, Diamondback plans to drill ~30 Barnett wells and complete ~10 (ramping to ~100 wells in 2027), with first-half CapEx at the lower end of its ~$3.75 billion guidance and potential for full-year reductions if cost‐saving initiatives advance as expected.
Innovation remains a focus: the company ran a 60-well surfactant trial in H2 2025 with promising production uplifts, and grew core inventory organically—boosting average lateral lengths by ~600 ft in 2025—while continuing shareholder distributions.

13 hours ago

Transcript

Diamondback Energy reports Q4 2025 results and Barnett Shale strategy

FANG

Earnings

New Projects/Investments

Guidance Update

Diamondback unveiled Barnett Shale well economics with 36 MBOE per 1,000 ft 12-month cum vs 22 in the Midland Basin and current costs of $1,000/ft, targeting $800/ft to achieve returns competitive with core Midland wells.
The company emphasized inventory replenishment, having increased average lateral lengths by 600 ft in 2025 and planning to add inventory organically across Midland Basin deals without external capital while returning cash to shareholders.
For 2026, Diamondback set a $3.75 billion capital budget—allocating $150 million to Barnett—with a flat production strategy to maximize free cash flow under a “yellow light” macro outlook, pending a future “green light” for growth.
A 60-well surfactant pilot launched in H2 2025 delivered early production uplifts, marking V 1.0 of the program and expected to add reserves over time.

14 hours ago

Transcript

Diamondback Energy announces Q4 2025 results

FANG

Earnings

Dividends

Share Buyback

Diamondback delivered $1.0 billion of free cash flow and $1.2 billion of adjusted free cash flow in Q4 2025, contributing to $5.5 billion FCF and $5.9 billion adj. FCF for FY 2025, and expects ~$4.7 billion of FCF in 2026 at current commodity prices.
Declared a base cash dividend of $1.05 per share, up 5% QoQ, payable March 12, 2026, reflecting a ~7.1% average quarterly CAGR since 2018.
Returned $734 million of capital in Q4 2025 (~62% of adj. FCF) via dividend and share repurchases; $8.0 billion buyback authorization has $2.3 billion remaining.
Maintained net debt of $14.6 billion as of 12/31/2025 and market cap of $49.6 billion (enterprise value $70.2 billion); standalone liquidity was $2.6 billion.

1 day ago

Presentation

Diamondback Energy outlines Q4 2025 operational performance and capital returns

FANG

Dividends

Share Buyback

Delivered 513 MBO/d oil production near the top of guidance and incurred $943 million capex, generating $1.0 billion Free Cash Flow and $1.2 billion Adjusted Free Cash Flow in Q4.
Recorded a $3.7 billion non-cash impairment due to lower commodity prices, with no change to operational outlook.
Increased quarterly base dividend 5% to $1.05 per share, repurchasing 13.84 million shares for $2.0 billion in 2025 and executing opportunistic buys under the SGF agreement.
Generated $1.2 billion from EDS and EPIC pipeline asset sales, applied proceeds to reduce debt by paying down $950 million of term loan and repurchasing senior notes.
Expanded natural gas strategy with ~350,000 MMBtu/d of long-haul pipeline commitments, targeting ~800,000 MMBtu/d as new capacity comes online to enhance realized pricing.

1 day ago

8-K

Diamondback Energy reports Q4 and FY 2025 results and raises dividend

FANG

Earnings

Dividends

Share Buyback

Q4 2025: average oil production of 512.8 MBO/d (969.1 MBOE/d); net cash provided by operating activities of $2.3 billion and operating cash flow before working capital changes of $1.9 billion; free cash flow of $1.0 billion and adjusted free cash flow of $1.2 billion
Q4 capital return: repurchased 2.90 million shares for $434 million, delivering $734 million in total return of capital (62% of adjusted free cash flow); increased annual base dividend 5% to $4.20 per share and declared Q4 2025 dividend of $1.05 per share
FY 2025: average production of 497.2 MBO/d (921.0 MBOE/d); net cash provided by operating activities of $8.8 billion; adjusted free cash flow of $5.9 billion; repurchased 13.84 million shares for $2.0 billion, returning 54% of adjusted free cash flow via dividends and buybacks; declared total base-plus-variable dividends of $4.05 per share
Proved reserves as of December 31, 2025 totaled 3,618 MMBOE, up 2% year-over-year

1 day ago

Press Release

Diamondback Energy backs Conduit Power’s 200 MW ERCOT generation project

FANG

New Projects/Investments

Diamondback Energy (NASDAQ: FANG) commits a fixed capacity payment as a financial partner in Conduit Power’s development of 200 MW of distributed natural gas power generation in ERCOT’s Load Zone West.
Conduit Power will build, own and operate the assets, targeting first sites to reach commercial operation in 2026.
Granite Ridge Resources joins alongside Diamondback, with each partner receiving a preferred share of power proceeds in exchange for capacity payments.
The project aims to enhance grid reliability and stabilize supply-demand imbalances in West Texas amid rising renewable penetration.

Dec 17, 2025, 6:12 PM

Press Release

Diamondback Energy outlines Q4 2025 guidance and strategic update

FANG

Earnings

Guidance Update

Share Buyback

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