Diamondback Energy, Inc. Announces Third Quarter 2026 Financial and Operating Results; Increases Base Dividend

2026-11-02

NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States · Corporate Finance

MIDLAND, Texas, Nov. 02, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback,” “we,” “our” or the “Company”) today announced financial and operating results for the third quarter ended September 30, 2026.

THIRD QUARTER 2026 HIGHLIGHTS

Average oil production of 525 MBO/d (1,034 MBOE/d) Net cash provided by operating activities of $2.6 billion; Operating Cash Flow Before Working Capital Changes1of $3.2 billion Cash capital expenditures of $1.0 billion Free Cash Flow1and Adjusted Free Cash Flow1 of $2.1 billion and $2.2 billion, respectively Increased annual base dividend by 7.3% to $4.72 per share; marks an 18% year over year increase and a ~2.2% annualized yield2 Repurchased 1.3 million shares of common stock for approximately $251 million Repurchased $106 million in aggregate principal amount of 2054 and 2064 Senior Notes at a weighted average price of 94.9% of par ($103 million, including accrued interest) Acquired a 7.5% equity interest in the Solitude Pipeline System, a Permian-to-Katy natural gas pipeline

1NON-GAAP DISCLOSURES- For a definition of Operating Cash Flow Before Working Capital Changes, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EBITDA, Adjusted Net Income per Diluted Share, Net Debt and reconciliations of such non-GAAP financial metrics to their respective most directly comparable GAAP metrics, please see “Non-GAAP Financial Measures” below. 2Cash dividend payable on November 19, 2026; annualized yield based on October 30, 2026 closing share price of $212.08

UPDATED 2026 GUIDANCE HIGHLIGHTS

Increasing annual oil production guidance to ~524 (from 522+) MBO/d with total BOE production of ~1,015 (from 1,000+) MBOE/d and full year cash capital expenditures to $3.95 - $4.00 billion (from ~$3.9 billion) Q4 2026 oil production guidance of 518 - 528 MBO/d (1,025 - 1,045 MBOE/d) Q4 2026 cash capital expenditures guidance of $1,000 - $1,050 million

RECENT HIGHLIGHTS

Have repurchased 389,841 shares of common stock in Q4 2026 to date for approximately $73 million On October 1, redeemed all $698 million in aggregate principal amount of the Company’s 2026 Senior Notes at par Repurchased $195 million in aggregate principal amount of 2054 and 2064 Senior Notes at a weighted average price of 91.0% of par ($183 million, including accrued interest)

THIRD QUARTER2026OPERATIONS UPDATE

The following tables provide a summary of Diamondback’s key operational updates:

Wells Drilled and Completed:

| | | Three Months Ended September 30, 2026 | | Nine Months Ended September 30, 2026 | | | | | | | | | | | | | | | | Drilled | | Completed | | Drilled | | Completed | | | | | | | | | | | | Gross | | Net | | Gross | | Net | | Gross | | Net | | Gross | | Net | | Total | | 105 | | 100 | | 135 | | 133 | | 320 | | 300 | | 450 | | 427 |

Gross Wells Drilled and Completed By Zone:

| | | Three Months Ended September 30, 2026 | | Nine Months Ended September 30, 2026 | | | | | | | | Number of Wells Drilled | | Number of Wells Completed | | Number of Wells Drilled | | Number of Wells Completed | | Midland Basin: | | | | | | | | | | Upper Spraberry | | 3 | | 2 | | 6 | | 5 | | Middle Spraberry | | 5 | | 6 | | 18 | | 26 | | Jo Mill | | 17 | | 22 | | 55 | | 84 | | Lower Spraberry | | 15 | | 24 | | 55 | | 87 | | Dean | | 3 | | 2 | | 5 | | 13 | | Wolfcamp A | | 15 | | 36 | | 61 | | 105 | | Wolfcamp B | | 24 | | 33 | | 69 | | 104 | | Wolfcamp D | | 9 | | 8 | | 27 | | 23 | | Barnett | | 14 | | 2 | | 24 | | 3 | | Midland Basin Total | | 105 | | 135 | | 320 | | 450 | | | | | | | | | | | | Average Completed Lateral Length (in feet) | | | | 13,584 | | | | 12,251 |

Realized Average Prices:

| | | Three Months Ended | | | | | | | | | | | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | | Oil ($ per Bbl) | | $ | 87.30 | | $ | 96.82 | | | $ | 64.60 | | Natural gas ($ per Mcf) | | $ | 1.12 | | $ | (2.15 | ) | | $ | 0.75 | | Natural gas liquids ($ per Bbl) | | $ | 20.02 | | $ | 18.56 | | | $ | 17.28 | | Combined price ($ per BOE) | | $ | 51.03 | | $ | 51.68 | | | $ | 39.73 | | | | | | | | | | | | | | Oil, hedged ($ per Bbl)(1) | | $ | 85.89 | | $ | 94.33 | | | $ | 63.70 | | Natural gas, hedged ($ per Mcf)(1) | | $ | 0.90 | | $ | (0.34 | ) | | $ | 1.75 | | Natural gas liquids, hedged ($ per Bbl)(1) | | $ | 20.02 | | $ | 18.56 | | | $ | 17.28 | | Combined price, hedged ($ per BOE)(1) | | $ | 50.01 | | $ | 52.90 | | | $ | 40.58 | | (1) Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts. | | | | | | | | | | |

Average Cash Costs per BOE:

| | | Three Months Ended | | | | | | | | | | | September 30, 2026 | | June 30, 2026 | | September 30, 2025 | | | | | Lease operating expenses | | $ | 5.97 | | $ | 5.96 | | $ | 5.65 | | Production and ad valorem taxes | | | 3.02 | | | 3.26 | | | 2.44 | | Gathering, processing and transportation expense | | | 1.32 | | | 1.22 | | | 1.41 | | General and administrative - cash component | | | 0.60 | | | 0.52 | | | 0.55 | | Total operating expense - cash | | $ | 10.91 | | $ | 10.96 | | $ | 10.05 |

FINANCIAL UPDATE

Earnings Attributable to Diamondback Energy, Inc.:

| | | Three Months Ended September 30, 2026 | | | | | (in millions, except per share amounts) | | | Net income (loss) attributable to Diamondback Energy, Inc. | | $ | 1,603 | | Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted(1) | | $ | 5.69 | | Adjusted net income(1) | | $ | 1,649 | | Adjusted net income per common share - Diluted(1) | | $ | 5.86 | | (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc., (ii) less the reallocation of $9 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods. | | | |

Cash Capital Expenditures:

| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | | | | | | | | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | (in millions) | | | | | | | | | | | | Operated drilling and completion additions to oil and natural gas properties | | $ | 884 | | $ | 632 | | $ | 2,510 | | $ | 2,203 | | Non-operated additions to oil and natural gas properties and other | | | 142 | | | 142 | | | 445 | | | 377 | | Total | | $ | 1,026 | | $ | 774 | | $ | 2,955 | | $ | 2,580 |

Adjusted EBITDA and Free Cash Flow - Non-GAAP:

| | | Three Months Ended September 30, 2026 | | Nine Months Ended September 30, 2026 | | | | | | (in millions) | | | | | | Net income (loss) attributable to Diamondback Energy, Inc. | | $ | 1,603 | | $ | 3,510 | | Consolidated Adjusted EBITDA | | $ | 3,752 | | $ | 10,693 | | Adjusted EBITDA attributable to Diamondback Energy, Inc. | | $ | 3,393 | | $ | 9,646 | | Net cash provided by operating activities | | $ | 2,599 | | $ | 8,016 | | Free Cash Flow | | $ | 2,148 | | $ | 6,183 | | Adjusted Free Cash Flow | | $ | 2,150 | | $ | 6,218 |

Debt & Liquidity:

| | September 30, 2026 | | | | (in millions) | | | Standalone cash | $ | 548 | | Borrowings outstanding under the credit facility | $ | — | | Remaining availability under the credit facility | $ | 3,000 | | Total standalone liquidity | $ | 3,548 | | Consolidated total debt | $ | 13,375 | | Consolidated total net debt | $ | 12,817 |

RETURN OF CAPITAL UPDATE

Diamondback announced today that the Company’s Board of Directors (the “Board”) approved a 7.3% increase to the Company's base cash dividend, raising it to $1.18 per common share for the third quarter of 2026, payable on November 19, 2026, to stockholders of record at the close of business on November 12, 2026.

During the third quarter, the Company repurchased 1,348,209 shares of common stock for approximately $251 million at a weighted average price of $185.94 per share (excluding excise tax). The Company expects to continue repurchases opportunistically using cash on hand, free cash flow and potential asset sale proceeds. The program has no time limit and may be suspended, modified or discontinued at the Board’s discretion. Repurchases may be executed in privately negotiated or open-market transactions, consistent with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. All shares repurchased will be retired.

The table below summarizes Diamondback’s return of capital program, including dividends and share repurchases, with future actions subject to Board approval.

| | | Q32026 | | Q42026to date | | Cumulative | | | | | | | (in millions, except per share amounts, shares in thousands) | | | | | | | | | Base dividend | | $ | 1.18 | | | | | | | | Shares repurchased | | | 1,348 | | | 390 | | | 44,183 | | Weighted average repurchase price | | $ | 185.94 | | $ | 186.69 | | $ | 143.66 | | Total repurchase cost | | $ | 251 | | $ | 73 | | $ | 6,348 | | | | | | | | | | | | | Total return of capital | | $ | 582 | | | | | | |

UPDATED 2026 GUIDANCE

Below is Diamondback's and Viper Energy, Inc.'s (“Viper”) updated guidance for the full year 2026, which includes fourth quarter production and capital guidance.

CONFERENCE CALL

Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2026 on Tuesday, November 3, 2026 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site. Investors and others should note that Diamondback announces material financial and operational information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. The information we post through our investor relations website may be deemed material. Accordingly, investors should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the 2026 Drop Down, the Viper Riverbend acquisition, the Viper McElroy Ranch acquisition and Viper's Sitio acquisition and other acquisitions, divestitures or reorganizations); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: geopolitics and market conditions, including changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; actions taken by the members of OPEC and its non-OPEC allies (OPEC+) affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments; changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, and instability in the financial markets; regional supply and demand factors, including delays, curtailments or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change, changing political and social perspectives on climate change and other environmental, social and governance factors, and risks from our publicly disclosed targets related to sustainability and emissions reduction initiatives; challenges in developing our existing leasehold acreage and finding, developing or acquiring additional reserves; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water disposal well permits recently imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin; significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges; conditions in the capital, financial and credit markets, including the availability and pricing of capital for acquisitions, exploration and development operations; challenges with employee retention and an increasingly competitive labor market; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services; changes in safety, health, environmental, tax and other regulations or requirements (including those addressing air emissions, water management, or the impact of global climate change); security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business; lack of, or disruption in, access to adequate and reliable electrical power, internet and telecommunication infrastructure, information and computer systems, transportation, processing, storage and other facilities for our oil, natural gas and natural gas liquids; failures or delays in achieving expected reserve or production levels from existing and future oil and natural gas developments, including due to operating hazards, drilling risks, or the inherent uncertainties in predicting reserve and reservoir performance; inability to keep pace with technological developments in our industry; failure to meet our obligations under our oil purchase contracts; loss of one or more customers or their inability to meet their obligations; geographical concentration of our primary operations; risks from our return of capital activity, and uncertainties over our future dividends and share repurchases; difficulty in obtaining necessary approvals and permits; severe weather conditions and natural disasters; changes in the financial strength of counterparties to our credit facilities and hedging contracts; our substantial indebtedness and restrictions to our operating and financial flexibility; changes in our credit rating; failure to identify, complete and successfully integrate acquisitions, including Viper’s Riverbend acquisition, Viper's McElroy Ranch acquisition and Viper’s Sitio acquisition; the Endeavor stockholders’ ability to significantly influence our business and potential conflicts of interest; and other risks described in Part I, Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 25, 2026, and those risks disclosed in its subsequent filings on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this release or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Earlier from Diamondback Energy Inc.

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