Viper Energy, Inc. Class A press release
Diamondback Energy, Inc. Announces Third Quarter 2025 Financial and Operating Results
NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States
MIDLAND, Texas, Nov. 03, 2025 (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, 2025.
THIRD QUARTER 2025 HIGHLIGHTS
Average oil production of 503.8 MBO/d (942.9 MBOE/d) Net cash provided by operating activities of $2.4 billion; Operating Cash Flow Before Working Capital Changes 1 of $2.5 billion Cash capital expenditures of $774 million Free Cash Flow 1 of $1.8 billion; Adjusted Free Cash Flow 1 of $1.8 billion Declared Q3 2025 base cash dividend of $1.00 per share payable on November 20, 2025; implies a 2.8% annualized yield based on October 31, 2025 closing share price of $143.19 Repurchased 4,286,080 shares of common stock for approximately $603 million (at a weighted average price of $140.70 per share excluding excise tax) Total return of capital of $892 million; represents 50% of Adjusted Free Cash Flow from stock repurchases and the declared Q3 2025 base dividend As previously announced, Viper Energy, Inc. ("Viper"), a subsidiary of Diamondback, closed the acquisition of Sitio Royalties Corp. ("Sitio") on August 19th
_ 1 NON-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.
RECENT HIGHLIGHTS
On October 1st, closed the previously announced divestiture of Environmental Disposal Systems, LLC to Deep Blue Midland Basin LLC (“Deep Blue”); Diamondback retained its 30% equity ownership in Deep Blue and received $694 million upfront cash proceeds; additionally, Diamondback has the potential to earn up to $200 million in contingent consideration based on the achievement of certain completion thresholds for the years 2026 through 2028 On October 31st, closed the previously announced divestiture of the Company's 27.5% equity interest in EPIC Crude Holdings, LP ("EPIC Crude") and received $504 million upfront cash proceeds; additionally, Diamondback has the potential to earn $96 million in contingent consideration should a capacity expansion of EPIC Crude be formally sanctioned before year-end 2027 Repurchased 610,996 shares of common stock in Q4 2025 (to date) for $87 million (at a weighted average price of $143.21 per share excluding excise tax) Repurchased $203 million in senior notes due 2051 & 2052 at 82.3% of par (~$167 million) in Q4 2025 (to date)
UPDATED 2025 GUIDANCE HIGHLIGHTS
Increasing full year oil production guidance to 495 - 498 MBO/d and increasing annual BOE guidance to 910 - 920 MBOE/d Narrowing full year cash capital expenditures to $3.45 - $3.55 billion; unchanged at the midpoint from August update The Company expects to drill 445 - 465 gross (412 - 430 net) wells and complete between 510 - 520 gross (471 - 481 net) wells with an average lateral length of approximately 11,500 feet in 2025 Q4 2025 oil production guidance of 505 - 515 MBO/d (927 - 963 MBOE/d) Q4 2025 cash capital expenditures guidance of $875 - $975 million
OPERATIONS UPDATE
The following tables provide a summary of Diamondback’s key operational updates for the quarter:
Wells Drilled and Completed:
| | Three Months Ended September 30, 2025 | | Nine Months Ended September 30, 2025 | | | | | | | | | | | | | | | Drilled | | Completed | | Drilled | | Completed | | | | | | | | | | Area: | Gross | | Net | | Gross | | Net | | Gross | | Net | | Gross | | Net | | Midland Basin | 107 | | 97 | | 137 | | 127 | | 352 | | 326 | | 361 | | 342 | | Delaware Basin | 1 | | 1 | | — | | — | | 4 | | 4 | | 15 | | 13 | | Total | 108 | | 98 | | 137 | | 127 | | 356 | | 330 | | 376 | | 355 |
Gross Wells Drilled and Completed By Zone:
| | Three Months Ended September 30, 2025 | | Nine Months Ended September 30, 2025 | | | | | | | Number of Wells Drilled | | Number of Wells Completed | | Number of Wells Drilled | | Number of Wells Completed | | Midland Basin: | | | | | | | | | Upper Spraberry | 1 | | 3 | | 6 | | 13 | | Middle Spraberry | 7 | | 11 | | 24 | | 32 | | Jo Mill | 19 | | 26 | | 63 | | 54 | | Lower Spraberry | 19 | | 28 | | 73 | | 77 | | Dean | 1 | | 10 | | 13 | | 22 | | Wolfcamp A | 28 | | 27 | | 73 | | 66 | | Wolfcamp B | 25 | | 27 | | 83 | | 80 | | Wolfcamp D | 4 | | 1 | | 9 | | 7 | | Barnett | 3 | | 4 | | 8 | | 10 | | Midland Basin Total | 107 | | 137 | | 352 | | 361 | | | | | | | | | | | Delaware Basin: | | | | | | | | | 2nd Bone Spring | — | | — | | — | | 2 | | 3rd Bone Spring | 1 | | — | | 3 | | 8 | | Wolfcamp A | — | | — | | 1 | | 5 | | Delaware Basin Total | 1 | | — | | 4 | | 15 | | | | | | | | | | | Total Company Operated | 108 | | 137 | | 356 | | 376 | | | | | | | | | | | Average Completed Lateral Length (in feet) | | | 11,020 | | | | 12,060 |
Realized Average Prices:
| | Three Months Ended | | | | | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | | | | Average Prices: | | | | | | | | | | | Oil ($ per Bbl) | $ | 64.60 | | $ | 63.23 | | $ | 73.13 | | | Natural gas ($ per Mcf) | $ | 0.75 | | $ | 0.88 | | $ | (0.26 | ) | | Natural gas liquids ($ per Bbl) | $ | 17.28 | | $ | 18.13 | | $ | 17.70 | | | Combined ($ per BOE) | $ | 39.73 | | $ | 39.61 | | $ | 44.80 | | | | | | | | | | | | | | Oil, hedged ($ per Bbl) (1) | $ | 63.70 | | $ | 62.34 | | $ | 72.32 | | | Natural gas, hedged ($ per Mcf) ( 1) | $ | 1.75 | | $ | 1.45 | | $ | 0.60 | | | Natural gas liquids, hedged ($ per Bbl) (1) | $ | 17.28 | | $ | 18.13 | | $ | 17.70 | | | Average price, hedged ($ per BOE) (1) | $ | 40.58 | | $ | 39.89 | | $ | 45.43 | |
(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 Costs per BOE:
| | Three Months Ended | | | | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | | | Lease operating expenses | $ | 5.65 | | $ | 5.26 | | $ | 6.01 | | Production and ad valorem taxes | | 2.44 | | | 2.56 | | | 2.91 | | Gathering, processing and transportation expense | | 1.41 | | | 1.73 | | | 1.94 | | General and administrative - cash component | | 0.55 | | | 0.55 | | | 0.63 | | Total operating expense - cash | $ | 10.05 | | $ | 10.10 | | $ | 11.49 |
FINANCIAL UPDATE
Earnings Attributable to Diamondback Energy, Inc.:
| | Three Months Ended September 30, 2025 | | | | (in millions, except per share amounts) | | | Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,018 | | Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted (1) | $ | 3.51 | | Adjusted net income (1) | $ | 895 | | Adjusted net income per common share - Diluted (1) | $ | 3.08 |
(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 $4 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods.
Capital Expenditures:
| | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | | | | | | | | | 2025 | | | 2024 | | | 2025 | | | 2024 | | | (in millions) | | | | | | | | | | | | Operated drilling and completion additions to oil and natural gas properties | $ | 632 | | $ | 631 | | $ | 2,203 | | $ | 1,785 | | Capital workovers, non-operated additions to oil and natural gas properties and science | | 94 | | | 2 | | | 205 | | | 13 | | Infrastructure, environmental and midstream additions | | 48 | | | 55 | | | 172 | | | 136 | | Total | $ | 774 | | $ | 688 | | $ | 2,580 | | $ | 1,934 |
Adjusted EBITDA and Free Cash Flow - Non-GAAP:
| | Three Months Ended September 30, 2025 | | Nine Months Ended September 30, 2025 | | | | | (in millions) | | | | | | Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,018 | | $ | 3,122 | | Consolidated Adjusted EBITDA | $ | 2,638 | | $ | 8,027 | | Adjusted EBITDA attributable to Diamondback Energy, Inc. | $ | 2,408 | | $ | 7,520 | | Net cash provided by operating activities | $ | 2,383 | | $ | 6,415 | | Free Cash Flow | $ | 1,760 | | $ | 4,547 | | Adjusted Free Cash Flow | $ | 1,792 | | $ | 4,709 |
Debt & Liquidity:
| | September 30, 2025 | | | | (in millions) | | | Standalone cash | $ | 106 | | Borrowings outstanding under the credit facility | $ | 175 | | Remaining availability under the credit facility | $ | 2,325 | | Total liquidity | $ | 2,431 | | Consolidated total debt | $ | 16,432 | | Consolidated total net debt | $ | 15,893 |
RETURN OF CAPITAL UPDATE
Diamondback announced today that the Company’s Board of Directors (the "Board") declared a base cash dividend of $1.00 per common share for the third quarter of 2025 payable on November 20, 2025, to stockholders of record at the close of business on November 13, 2025.
On July 31, 2025, Diamondback’s Board approved a $2.0 billion increase to the share repurchase authorization, bringing total capacity to $8.0 billion (excluding excise tax), with $3.0 billion remaining as of October 31, 2025. 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.
| | Q3 2025 | | Q4 2025 to date | | Cumulative | | | | | | | (in millions, except per share amounts, shares in thousands) | | | | | | | | | | Base dividend | $ | 1.00 | | | | | | | | | Shares repurchased | | 4,286 | | | | 611 | | | 36,129 | | Weighted average repurchase price | $ | 140.70 | | | $ | 143.21 | | $ | 138.08 | | Total repurchase cost | $ | 603 | | | $ | 87 | | $ | 4,989 | | | | | | | | | | | | | Total return of capital | $ | 892 | | | | | | | | | Return of capital % free cash flow | | 51 | % | | | | | | | | Return of capital % adjusted free cash flow | | 50 | % | | | | | | |
FULL YEAR 2025 GUIDANCE
Below is Diamondback's updated guidance for the full year 2025, which includes fourth quarter production, cash tax and capital guidance.
| | 2025 Guidance | 2025 Guidance | | | Diamondback Energy, Inc. | Viper Energy, Inc. | | | | | | 2025 Net production - MBOE/d | 910 - 920 (from 890 - 910) | 92.8 - 93.5 | | 2025 Oil production - MBO/d | 495 - 498 (from 485 - 492) | 48.8 - 49.0 | | Q4 2025 Oil production - MBO/d (total - MBOE/d) | 505 - 515 (927 - 963) | 65.0 - 67.0 (124.0 - 128.0) | | | | | | Unit costs ($/BOE) | | | | Lease operating expenses, including workovers | $5.40 - $5.70 (from $5.30 - $5.70) | | | G&A | | | | Cash G&A | $0.60 - $0.75 | $0.80 - $1.00 | | Non-cash equity-based compensation | $0.25 - $0.35 | $0.10 - $0.20 | | DD&A | $14.50 - $15.50 | $16.75 - $17.25 | | Interest expense (net of interest income) | $0.60 - $0.80 | $2.50 - $3.00 | | Gathering, processing and transportation | $1.45 - $1.60 (from $1.60 - $1.75) | | | | | | | Production and ad valorem taxes (% of revenue) | ~7% | ~7% | | Corporate tax rate (% of pre-tax income) | 23% | | | Cash tax rate (% of pre-tax income) (1 ) | 15% - 18% | 21% - 23% | | Q4 2025 Cash taxes ($ - million) ( 2 ) ( 3 ) | $270 - $350 | $13 - $18 | | | | | | Capital Budget ($ - million) | | | | Operated drilling and completion | $2,925 - $2,950 (from $2,850 - $2,950) | | | Capital workovers, non-operated properties and science | $300 - $350 (from $250 - $300) | | | Infrastructure, environmental and midstream | $225 - $250 (from $300 - $350) | | | 2025 Total capital expenditures | $3,450 - $3,550 (from $3,400 - $3,600) | | | Q4 2025 Capital expenditures | $875 - $975 | | | | | | | Gross horizontal wells drilled (net) | 445 - 465 (412 - 430) (from 425 - 450 (395 - 418)) | | | Gross horizontal wells completed (net) | 510 - 520 (471 - 481) (from 490 - 515 (458 - 482)) | | | Average lateral length (Ft.) | ~11,500' | | | FY 2025 Midland Basin well costs per lateral foot | $550 - $580 | | | FY 2025 Delaware Basin well costs per lateral foot | $860 - $910 | | | Midland Basin completed net lateral feet (%) | ~95% | | | Delaware Basin completed net lateral feet (%) | ~5% | |
(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 ) Includes approximately $175 million tax impact from asset divestitures in the fourth quarter. ( 3 ) Includes estimated favorable impact on the year-to-date period of tax legislation enacted in the third quarter.
CONFERENCE CALL
Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2025 on Tuesday, November 4, 2025 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.
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 Endeavor acquisition, Double Eagle acquisition, 2025 drop down and Sitio acquisition and other acquisitions or divestitures; 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) as they relate to Diamondback 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: changes in supply and demand levels for oil, natural gas and natural gas liquids and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia 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 and inflation rates, instability in the financial sector; regional supply and demand factors, including delays, curtailment delays 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; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water 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; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; conditions in the capital, financial and credit markets, including the availability and pricing of capital for drilling and development operations and our environmental and social responsibility projects; 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 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; difficulty in obtaining necessary approvals and permits; severe weather conditions and natural disasters; acts of war or terrorist acts and the governmental or military response thereto; changes in the financial strength of counterparties to our credit agreement and hedging contracts; changes in our credit rating; risks related to the recently completed Endeavor acquisition, Double Eagle acquisition, 2025 drop down and Sitio acquisition; those other risks described in Part I, Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 26, 2025, and those risks disclosed in its subsequent filings on Forms 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.