Viper Energy, Inc. Class A press release
Diamondback Energy, Inc. Announces Fourth Quarter and Full Year 2025 Financial and Operating Results; Increases Base Dividend
NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States
MIDLAND, Texas, Feb. 23, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback,” “we,” “our” or the “Company”) today announced financial and operating results for the fourth quarter and full year ended December 31, 2025.
FOURTH QUARTER 2025 HIGHLIGHTS
Average oil production of 512.8 MBO/d (969.1 MBOE/d) Net cash provided by operating activities of $2.3 billion; Operating Cash Flow Before Working Capital Changes1of $1.9 billion Cash capital expenditures of $943 million Free Cash Flow1of $1.0 billion; Adjusted Free Cash Flow1of $1.2 billion Repurchased 2.90 million shares of common stock for approximately $434 million at a weighted average price of $149.50 per share excluding excise tax; includes $305 million for the repurchase of 2.00 million shares from SGF FANG Holdings, LP ("SGF") Total return of capital of $734 million from stock repurchases and the declared Q4 2025 base dividend; represents 62% of Adjusted Free Cash Flow Increased annual base dividend by 5% to $4.20 per share; declared Q4 2025 base cash dividend of $1.05 per share payable on March 12, 2026; implies a 2.4% annualized yield based on February 20, 2026 closing share price of $176.01 Repurchased $203 million in senior notes due 2051 & 2052 at 82.3% of par (~$167 million) Redeemed $950 million of principal on $1.5 billion term loan due 2027 ($550 million currently outstanding) Consolidated total debt and net debt as of December 31, 2025 of $14.7 billion and $14.6 billion, down 11% and 8% quarter over quarter, respectively
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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.
FULL YEAR 2025 HIGHLIGHTS
Average production of 497.2 MBO/d (921.0 MBOE/d) Net cash provided by operating activities of $8.8 billion; Operating Cash Flow Before Working Capital Changes of $9.1 billion Cash capital expenditures of $3.5 billion Free Cash Flow of $5.5 billion; Adjusted Free Cash Flow of $5.9 billion Repurchased 13.84 million shares of common stock for $2.0 billion, at a weighted average price of $145.26 per share excluding excise tax Total return of capital of $3.2 billion; represents 54% of Adjusted Free Cash Flow Declared total base-plus-variable dividends of $4.05 per share Generated $1.7 billion in cash proceeds from non-core asset sales Proved reserves as of December 31, 2025 of 3,618 MMBOE (49% oil), up 2% year over year; proved developed producing ("PDP") reserves of 2,521 MMBOE (47% oil), up 6% year over year
2026 GUIDANCE HIGHLIGHTS
Full year 2026 oil production guidance of 500 - 510 MBO/d (926 - 962 MBOE/d) Full year 2026 cash capital expenditures guidance of $3.6 - $3.9 billion. Includes approximately $100 - $150 million of capital for exploratory development in the Barnett / Woodford and multiple tests to increase oil recoveries from the existing asset base The Company expects to complete between 5.9 - 6.3 million net lateral feet in 2026 Q1 2026 oil production guidance of 502 - 512 MBO/d (930 - 966 MBOE/d) Q1 2026 cash capital expenditures guidance of $900 million - $975 million
RECENT HIGHLIGHTS
Have repurchased 2.27 million shares of common stock in Q1 2026 (to date) for $371 million at a weighted average price of $163.60 per share excluding excise tax, which includes the repurchase of 2.00 million shares from SGF Viper Energy, Inc. (the Company’s publicly traded mineral and royalty subsidiary, "Viper") closed its non-Permian divestiture in February, generating $617 million of net proceeds that were used to fully repay its term loan due 2027 and the outstanding balance on its revolving credit facility
FOURTH QUARTER 2025 OPERATIONS UPDATE
The following tables provide a summary of Diamondback’s key operational updates:
Wells Drilled and Completed:
| | Three Months Ended December 31, 2025 | | Year Ended December 31, 2025 | | | | | | | | | | | | | | | Drilled | | Completed | | Drilled | | Completed | | | | | | | | | | Area: | Gross | | Net | | Gross | | Net | | Gross | | Net | | Gross | | Net | | Midland Basin | 107 | | 100 | | 127 | | 121 | | 459 | | 426 | | 488 | | 463 | | Delaware Basin | — | | — | | — | | — | | 4 | | 4 | | 15 | | 13 | | Total | 107 | | 100 | | 127 | | 121 | | 463 | | 430 | | 503 | | 476 |
Gross Wells Drilled and Completed By Zone:
| | Three Months Ended December 31, 2025 | | Year Ended December 31, 2025 | | | | | | | Number of Wells Drilled | | Number of Wells Completed | | Number of Wells Drilled | | Number of Wells Completed | | Midland Basin: | | | | | | | | | Upper Spraberry | 1 | | 2 | | 7 | | 15 | | Middle Spraberry | 12 | | 19 | | 36 | | 51 | | Jo Mill | 18 | | 20 | | 81 | | 74 | | Lower Spraberry | 20 | | 32 | | 93 | | 109 | | Dean | 5 | | 4 | | 18 | | 26 | | Wolfcamp A | 24 | | 22 | | 97 | | 88 | | Wolfcamp B | 22 | | 22 | | 105 | | 102 | | Wolfcamp D | 5 | | 4 | | 14 | | 11 | | Barnett | — | | 2 | | 8 | | 12 | | Midland Basin Total | 107 | | 127 | | 459 | | 488 | | | | | | | | | | | Delaware Basin: | | | | | | | | | 2nd Bone Spring | — | | — | | — | | 2 | | 3rd Bone Spring | — | | — | | 3 | | 8 | | Wolfcamp A | — | | — | | 1 | | 5 | | Delaware Basin Total | — | | — | | 4 | | 15 | | | | | | | | | | | Total Company Operated | 107 | | 127 | | 463 | | 503 | | | | | | | | | | | Average Completed Lateral Length (in feet) | | | 12,474 | | | | 12,138 |
Realized Average Prices:
| | Three Months Ended December 31, | | Year Ended December 31, | | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | Oil ($ per Bbl) | $ | 58.00 | | $ | 69.48 | | $ | 64.04 | | $ | 73.52 | | Natural gas ($ per Mcf) | $ | 0.03 | | $ | 0.48 | | $ | 0.89 | | $ | 0.32 | | Natural gas liquids ($ per Bbl) | $ | 13.51 | | $ | 19.27 | | $ | 17.88 | | $ | 18.99 | | Combined ($ per BOE) | $ | 34.02 | | $ | 42.71 | | $ | 40.02 | | $ | 46.12 | | | | | | | | | | | | | | | Oil, hedged ($ per Bbl)(1) | $ | 57.07 | | $ | 68.72 | | $ | 63.14 | | $ | 72.68 | | Natural gas, hedged ($ per Mcf)(1) | $ | 1.03 | | $ | 0.82 | | $ | 1.84 | | $ | 0.91 | | Natural gas liquids, hedged ($ per Bbl)(1) | $ | 13.51 | | $ | 19.27 | | $ | 17.88 | | $ | 18.99 | | Average price, hedged ($ per BOE)(1) | $ | 34.88 | | $ | 42.76 | | $ | 40.79 | | $ | 46.38 |
(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 December 31, | | Year Ended December 31, | | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | Lease operating expenses | $ | 5.91 | | $ | 5.67 | | $ | 5.55 | | $ | 5.87 | | Production and ad valorem taxes | | 2.21 | | | 2.77 | | | 2.53 | | | 2.91 | | Gathering, processing and transportation expense | | 1.54 | | | 1.17 | | | 1.53 | | | 1.63 | | General and administrative - cash component | | 0.65 | | | 0.69 | | | 0.62 | | | 0.68 | | Total operating expense - cash | $ | 10.31 | | $ | 10.30 | | $ | 10.23 | | $ | 11.09 |
FINANCIAL UPDATE
Earnings Attributable to Diamondback Energy, Inc.:
| | Three Months Ended December 31, 2025 | | Year Ended December 31, 2025 | | | | | | (in millions, except per share amounts) | | | | | | | Net income (loss) attributable to Diamondback Energy, Inc. | $ | (1,458 | ) | | $ | 1,664 | | Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted(1) | $ | (5.11 | ) | | $ | 5.73 | | Adjusted net income(1) | $ | 499 | | | $ | 3,874 | | Adjusted net income per common share - Diluted(1) | $ | 1.74 | | | $ | 13.37 |
(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 $2 million and $8 million in earnings attributable to participating securities for the three months ended December 31, 2025 and year ended December 31, 2025, respectively, (iii) divided by diluted weighted average common shares outstanding for the respective periods.
Cash Capital Expenditures:
| | Three Months Ended December 31, | | Year Ended December 31, | | | | | | | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | | | | | (in millions) | | | | | | | | | | | | Operated drilling and completion additions to oil and natural gas properties | $ | 748 | | $ | 832 | | $ | 2,951 | | $ | 2,617 | | Capital workovers, non-operated additions to oil and natural gas properties and science | | 130 | | | 2 | | | 335 | | | 15 | | Infrastructure, environmental and midstream additions | | 65 | | | 99 | | | 237 | | | 235 | | Total | $ | 943 | | $ | 933 | | $ | 3,523 | | $ | 2,867 |
Adjusted EBITDA and Free Cash Flow - Non-GAAP:
| | Three Months Ended December 31, 2025 | | Year Ended December 31, 2025 | | | | | | (in millions) | | | | | | | Net income (loss) attributable to Diamondback Energy, Inc. | $ | (1,458 | ) | | $ | 1,664 | | Consolidated Adjusted EBITDA | $ | 2,254 | | | $ | 10,281 | | Adjusted EBITDA attributable to Diamondback Energy, Inc. | $ | 2,021 | | | $ | 9,536 | | Net cash provided by operating activities | $ | 2,343 | | | $ | 8,758 | | Free Cash Flow | $ | 1,002 | | | $ | 5,549 | | Adjusted Free Cash Flow | $ | 1,183 | | | $ | 5,892 |
Debt & Liquidity:
| | December 31, 2025 | | | | (in millions) | | | Standalone cash | $ | 91 | | Borrowings outstanding under the credit facility | $ | — | | Remaining availability under the credit facility | $ | 2,500 | | Total standalone liquidity | $ | 2,591 | | Consolidated total debt | $ | 14,667 | | Consolidated total net debt | $ | 14,563 |
RETURN OF CAPITAL UPDATE
Diamondback announced today that the Company’s Board of Directors (the "Board") declared a base cash dividend of $1.05 per common share for the fourth quarter of 2025 payable on March 12, 2026, to stockholders of record at the close of business on March 5, 2026.
Diamondback's share repurchase authorization totals $8.0 billion (excluding excise tax), with $2.3 billion remaining as of February 20, 2026. 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.
On November 28, 2025, Diamondback entered into a letter agreement with SGF under which SGF may (but is not obligated to) sell up to 3.0 million shares of Diamondback common stock to Diamondback per calendar quarter through December 31, 2026 at the most recent NASDAQ closing price prior to each transaction (subject to the agreement’s terms).
The table below summarizes Diamondback’s return of capital program, including dividends and share repurchases, with future actions subject to Board approval.
| | Q42025 | | Q12026to date | | Cumulative | | | | | | | (in millions, except per share amounts, shares in thousands) | | | | | | | | | | Base dividend | $ | 1.05 | | | | | | | | | Shares repurchased | | 2,904 | | | | 2,267 | | | 40,688 | | Weighted average repurchase price | $ | 149.50 | | | $ | 163.60 | | $ | 140.24 | | Total repurchase cost | $ | 434 | | | $ | 371 | | $ | 5,707 | | | | | | | | | | | | | Total return of capital | $ | 734 | | | | | | | | | Return of capital % free cash flow | | 73 | % | | | | | | | | Return of capital % adjusted free cash flow | | 62 | % | | | | | | |
RESERVES
Estimates of Diamondback's proved reserves as of December 31, 2025 were prepared by Diamondback's internal reservoir engineers and audited by Ryder Scott Company, L.P., an independent petroleum engineering firm.
The table below presents the realized prices as adjusted for differentials and contractual arrangements utilized in the computation of future cash inflows and the reference prices in accordance with applicable rules of the Securities and Exchange Commission.
Realized and Reference Prices:
| | December 31, | | | | | | | 2025 | | 2024 | | | | Realized Prices: | | | | | | | Oil (per Bbl) | $ | 64.99 | | $ | 76.15 | | Natural gas (per Mcf) | $ | 1.32 | | $ | 0.54 | | Natural gas liquids (per Bbl) | $ | 18.87 | | $ | 22.02 | | | | | | | | | Reference Prices: | | | | | | | Oil (per Bbl) | $ | 65.34 | | $ | 75.48 | | Natural gas (per Mmbtu) | $ | 3.39 | | $ | 2.13 |
Proved Reserves:
| | Year Ended December 31, | | | | | | | | | | | | | | 2025 | | % of Proved Reserves | | 2024 | | % of Proved Reserves | | % Change YoY | | | | | | (in MMBOE, except percentages) | | | | | | | | | | | | | Proved developed reserves | 2,521 | | 70 | % | | 2,385 | | 67 | % | | 6 | % | | Proved undeveloped reserves | 1,097 | | 30 | % | | 1,172 | | 33 | % | | (6 | )% | | Proved reserves | 3,618 | | 100 | % | | 3,557 | | 100 | % | | 2 | % |
Proved undeveloped ("PUD") reserves are comprised of 1,351 horizontal locations in which we have a working interest, of which 1,321 are in the Midland Basin.
Estimated Proved Reserves:
| | Oil (MBbls) | | Natural Gas (MMcf) | | Natural Gas Liquids (MBbls) | | Total MBOE | | | | | | As of December 31, 2024 | 1,761,049 | | | 5,024,915 | | | 958,881 | | | 3,557,416 | | | Extensions and discoveries | 306,431 | | | 765,623 | | | 144,884 | | | 578,919 | | | Revisions of previous estimates | (173,561 | ) | | (253,282 | ) | | (88,310 | ) | | (304,085 | ) | | Purchase of reserves in place | 99,239 | | | 268,935 | | | 44,547 | | | 188,609 | | | Divestitures | (37,276 | ) | | (84,515 | ) | | (15,463 | ) | | (66,825 | ) | | Production | (181,462 | ) | | (447,855 | ) | | (80,073 | ) | | (336,178 | ) | | As of December 31, 2025 | 1,774,420 | | | 5,273,821 | | | 964,466 | | | 3,617,856 | |
2025Reserve Statistics:
| | (in MBOE, except percentages) | | | Net proved reserve additions | 396,618 | | | Reserve replacement ratio(1) | 118 | % | | Organic reserve replacement ratio(2) | 82 | % |
(1)Defined as the sum of extensions and discoveries, revisions, purchases and divestitures, divided by annual production. (2) Defined as the sum of extensions and discoveries and revisions, divided by annual production.
Extensions and discoveries of reserves totaling 579 MMBOE were the primary contributor to the increase in reserves followed by net purchases of reserves totaling 122 MMBOE, with downward revisions of 304 MMBOE. PDP extensions were the result of 1,571 new wells in which the Company has an interest, and PUD extensions were the result of 582 new locations in which the Company has a working interest. Net purchases of reserves of 122 MMBOE were the net result of acquisitions of 189 MMBOE and divestitures of 67 MMBOE. Downward revisions of 304 MMBOE were primarily the result of negative revisions of 130 MMBOE associated with lower commodity prices, 129 MMBOE primarily due to PUD downgrades related to changes in the corporate development plan and 45 MMBOE primarily due to performance revisions. Divestitures of 67 MMBOE related primarily to non-core Delaware Basin assets.
The SEC PUD guidelines allow a company to book PUD reserves associated with projects that are to occur within the next five years. With its current development plan, the Company expects to continue its strong PUD conversion ratio in 2026 by converting an estimated 38% of its PUDs to a Proved Developed category, and develop approximately 89% of the consolidated 2025 year-end PUD reserves by the end of 2028.
Costs Incurred in Oil and Natural Gas Activities:
| | Year Ended December 31, | | | | | | | | | | 2025 | | 2024 | | 2023 | | | | | | (in millions, except BOE amounts) | | | | | | | | | Acquisition costs: | | | | | | | | | | Proved properties | $ | 4,608 | | $ | 21,275 | | $ | 1,314 | | Unproved properties | | 5,226 | | | 15,568 | | | 1,701 | | Development costs | | 3,613 | | | 2,992 | | | 1,962 | | Exploration costs | | 212 | | | 194 | | | 768 | | Total | $ | 13,659 | | $ | 40,029 | | $ | 5,745 | | | | | | | | | | | | PD F&D costs per BOE(1) | $ | 8.52 | | $ | 10.51 | | $ | 9.73 |
(1)Defined as exploration and development costs, excluding midstream, divided by the sum of reserves associated with transfers from proved undeveloped reserves at year-end 2024 including any associated revisions in 2025 and extensions and discoveries placed on production during 2025.
2026 GUIDANCE
Below is Diamondback and Viper's guidance for the full year 2026, which includes first quarter production and capital guidance.
| | 2026 Guidance | 2026 Guidance | | | Diamondback Energy, Inc. | Viper Energy, Inc. | | | | | | 2026 Net production - MBOE/d | 926 - 962 | 120.0 - 132.0 | | 2026 Oil production - MBO/d | 500 - 510 | 61.0 - 67.0 | | Q1 2026 Oil production - MBO/d (total - MBOE/d) | 502 - 512 (930 - 966) | 62.5 - 64.5 (124.0 - 128.0) | | | | | | Unit costs ($/BOE) | | | | Lease operating expenses, including workovers | $5.90 - $6.40 | | | G&A | | | | Cash G&A | $0.55 - $0.70 | $0.70 - $0.90 | | Non-cash equity-based compensation | $0.20 - $0.30 | $0.10 - $0.20 | | DD&A | $14.50 - $15.50 | $17.50 - $19.50 | | Interest expense (net of interest income) | $0.70 - $0.90 | $1.90 - $2.40 | | Gathering, processing and transportation | $1.50 - $1.70 | | | | | | | Production and ad valorem taxes (% of revenue) | ~7% | ~7% | | Corporate tax rate (% of pre-tax income) | 23% | | | Cash tax rate (% of pre-tax income)(1) | 18% - 21% | 27% - 30% | | Q1 2026 Cash taxes ($ - million)(2) | $180 - $240 | $17.0 - $23.0 | | | | | | Cash Capital Budget ($ - million) | | | | Operated drilling and completion | $3,050 - $3,270 | | | 2026 Total capital expenditures(3) | $3,600 - $3,900 | | | Q1 2026 Capital expenditures | $900 - $975 | | | | | | | Average lateral length (Ft.) | ~12,900' | | | Net lateral footage completed (1,000's of Ft.) | 5,900' - 6,300' | |
(1)Pre-tax income attributable to the Company is a non-GAAP measure. We are not able to forecast the most directly comparable GAAP measure - Income (loss) before income taxes - due to high variability and difficulty in predicting certain items that affect Income (loss) before income taxes, such as future commodity prices, pace of and costs of developing, producing and operating our interests in oil and natural gas properties, future changes in interest rates and various other business factors impacting our financial results. (2)Excludes tax impact from Viper's asset divestitures closed in the first quarter of 2026. (3)Includes non-operated drilling and completion, capital workovers, science, infrastructure, midstream and environmental.
CONFERENCE CALL
Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the fourth quarter of 2025 on Tuesday, February 24, 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.