Diamondback Energy, Inc. Announces Second Quarter 2026 Financial and Operating Results
Rhea-AI Summary
Diamondback Energy (NASDAQ:FANG) reported second quarter 2026 net income attributable to the company of $1.88 billion, or $6.65 diluted EPS, on total revenues of $5.56 billion versus $3.68 billion a year earlier. Consolidated Adjusted EBITDA was $3.94 billion, with Free Cash Flow of $2.33 billion and cash capital expenditures of $996 million.
Average Q2 production was 525 MBO/d and 1,018 MBOE/d. Diamondback reduced consolidated total debt to $12.77 billion and net debt to $12.30 billion, and reported standalone liquidity of $3.39 billion after expanding its credit facility to $3.0 billion and extending maturity to 2031.
The Board declared a $1.10 per share base dividend and repurchased 756,385 shares for $141 million in Q2, then increased share repurchase authorization to $16.0 billion with about $9.9 billion remaining. Full-year 2026 oil production guidance was raised to 522+ MBO/d and total production to 1,000+ MBOE/d while keeping the ~$3.9 billion capital budget unchanged.
Positive
- Q2 2026 revenue $5.56 billion vs. $3.68 billion in Q2 2025
- Q2 2026 net income $1.88 billion; diluted EPS $6.65
- Q2 2026 Free Cash Flow $2.33 billion with capex of $996 million
- Average Q2 production 1,018 MBOE/d, including 525 MBO/d of oil
- Net debt reduced to $12.30 billion; quarter-over-quarter debt down about $1.3 billion
- Share repurchase authorization doubled to $16.0 billion; ~$9.9 billion remaining
- 2026 oil production guidance raised to 522+ MBO/d with capital budget ~$3.9 billion unchanged
Negative
- Realized natural gas price was negative at $(2.15) per Mcf in Q2 2026
- 2026 cash tax rate guidance raised to 19%–22% from 18%–21%
- Impairment charge of $1.40 billion on oil and natural gas properties in first half 2026
- Consolidated total debt remains high at $12.77 billion as of June 30, 2026
News Explained
Q3 repurchases have started; $9.9 billion remained available on July 31, and the $1.10 dividend is payable August 20 to August 13 record holders.
By
The
The declared
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Nov 03 | Q3 earnings report | Positive | -1.3% | Reported production, cash flow, free cash flow, buybacks, and raised full-year guidance. |
| Aug 04 | Q2 earnings report | Positive | -1.4% | Reported strong results, increased repurchase authorization, dividend, and revised production guidance. |
| Jul 21 | Earnings scheduling | Neutral | +1.4% | Announced a revised second-quarter earnings release date and no conference call. |
| Jul 11 | Earnings scheduling | Neutral | +0.9% | Scheduled second-quarter operating and financial results and disclosed no conference call. |
| May 05 | Q1 earnings report | Negative | -0.8% | Reduced production and capital expenditure guidance amid commodity price volatility. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events had an average move of -0.25%, with Diamondback's recent positive earnings reports followed by negative 24-hour reactions.
Key Terms
mboe/d technical
non-gaap financial
rule 10b-18 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
MIDLAND, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback,” “we,” “our” or the “Company”) today announced financial and operating results for the second quarter ended June 30, 2026.
SECOND QUARTER 2026 HIGHLIGHTS
- Average oil production of 525 MBO/d
- Production of 1,018 MBOE/d, surpassing the 1.0 million barrels of oil equivalent per day milestone
- Net cash provided by operating activities of
$3.6 billion ; Operating Cash Flow Before Working Capital Changes1 of$3.3 billion - Cash capital expenditures of
$996 million - Free Cash Flow1 and Adjusted Free Cash Flow1 of
$2.3 billion - Repurchased 756,385 shares of common stock for approximately
$141 million - Declared base cash dividend of
$1.10 per share2 - Reduced total debt by ~
$1.3 billion quarter over quarter to$12.8 billion and net debt1 by ~$1.6 billion quarter over quarter to$12.3 billion
________________________________
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.
2 Implies a
UPDATED 2026 GUIDANCE HIGHLIGHTS
- Increasing annual oil production guidance to 522+ (from 520+) MBO/d and total BOE production to 1,000+ (from 972+) MBOE/d with full year cash capital expenditures unchanged at ~
$3.9 billion - Q3 2026 oil production guidance of 517 - 527 MBO/d (995 - 1,015 MBOE/d)
- Q3 2026 cash capital expenditures guidance of
$950 -$1,050 million
RECENT HIGHLIGHTS
- Repurchased 547,716 shares of common stock in Q3 2026 (to date) for approximately
$100 million - In July, the Board of Directors (the “Board”) doubled the Company's share repurchase authorization to
$16.0 billion from$8.0 billion previously. Approximately$9.9 billion remains available for future repurchases under the program
SECOND QUARTER 2026 OPERATIONS UPDATE
The following tables provide a summary of Diamondback’s key operational updates:
Wells Drilled and Completed:
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||||||||||||
| Drilled | Completed | Drilled | Completed | ||||||||||||
| Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||
| Total | 97 | 89 | 168 | 157 | 215 | 200 | 315 | 294 | |||||||
Gross Wells Drilled and Completed By Zone:
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||||
| Number of Wells Drilled | Number of Wells Completed | Number of Wells Drilled | Number of Wells Completed | ||||
| Midland Basin: | |||||||
| Upper Spraberry | 2 | 1 | 3 | 3 | |||
| Middle Spraberry | 6 | 13 | 13 | 20 | |||
| Jo Mill | 22 | 31 | 38 | 62 | |||
| Lower Spraberry | 16 | 31 | 40 | 63 | |||
| Dean | 1 | 5 | 2 | 11 | |||
| Wolfcamp A | 20 | 38 | 46 | 69 | |||
| Wolfcamp B | 16 | 41 | 45 | 71 | |||
| Wolfcamp D | 7 | 7 | 18 | 15 | |||
| Barnett | 7 | 1 | 10 | 1 | |||
| Midland Basin Total | 97 | 168 | 215 | 315 | |||
| Average Completed Lateral Length (in feet) | 11,983 | 11,679 | |||||
Realized Average Prices:
| Three Months Ended | |||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||
| Oil ($ per Bbl) | $ | 96.82 | $ | 73.47 | $ | 63.23 | |||
| Natural gas ($ per Mcf) | $ | (2.15 | ) | $ | 0.18 | $ | 0.88 | ||
| Natural gas liquids ($ per Bbl) | $ | 18.56 | $ | 16.68 | $ | 18.13 | |||
| Combined ($ per BOE) | $ | 51.68 | $ | 43.40 | $ | 39.61 | |||
| Oil, hedged ($ per Bbl)(1) | $ | 94.33 | $ | 72.53 | $ | 62.34 | |||
| Natural gas, hedged ($ per Mcf)(1) | $ | (0.34 | ) | $ | 1.90 | $ | 1.45 | ||
| Natural gas liquids, hedged ($ per Bbl)(1) | $ | 18.56 | $ | 16.68 | $ | 18.13 | |||
| Average price, hedged ($ per BOE)(1) | $ | 52.90 | $ | 45.21 | $ | 39.89 | |||
(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 | ||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||
| Lease operating expenses | $ | 5.96 | $ | 6.21 | $ | 5.26 | ||
| Production and ad valorem taxes | 3.26 | 3.04 | 2.56 | |||||
| Gathering, processing and transportation expense | 1.22 | 1.36 | 1.73 | |||||
| General and administrative - cash component | 0.52 | 0.65 | 0.55 | |||||
| Total operating expense - cash | $ | 10.96 | $ | 11.26 | $ | 10.10 | ||
FINANCIAL UPDATE
Earnings Attributable to Diamondback Energy, Inc.:
| Three Months Ended June 30, 2026 | ||
| (in millions, except per share amounts) | ||
| Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,882 |
| Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted(1) | $ | 6.65 |
| Adjusted net income(1) | $ | 1,833 |
| Adjusted net income per common share - Diluted(1) | $ | 6.48 |
(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
Cash Capital Expenditures:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| (in millions) | |||||||||||
| Operated drilling and completion additions to oil and natural gas properties | $ | 842 | $ | 707 | $ | 1,626 | $ | 1,571 | |||
| Non-operated additions to oil and natural gas properties and other | 154 | 157 | 303 | 235 | |||||||
| Total | $ | 996 | $ | 864 | $ | 1,929 | $ | 1,806 | |||
Adjusted EBITDA and Free Cash Flow - Non-GAAP:
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||
| (in millions) | |||||
| Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,882 | $ | 1,907 | |
| Consolidated Adjusted EBITDA | $ | 3,940 | $ | 6,941 | |
| Adjusted EBITDA attributable to Diamondback Energy, Inc. | $ | 3,549 | $ | 6,253 | |
| Net cash provided by operating activities | $ | 3,589 | $ | 5,417 | |
| Free Cash Flow | $ | 2,330 | $ | 4,035 | |
| Adjusted Free Cash Flow | $ | 2,331 | $ | 4,068 | |
Debt & Liquidity:
| June 30, 2026 | ||
| (in millions) | ||
| Standalone cash | $ | 385 |
| Borrowings outstanding under the credit facility | $ | — |
| Remaining availability under the credit facility(1) | $ | 3,000 |
| Total standalone liquidity | $ | 3,385 |
| Consolidated total debt | $ | 12,766 |
| Consolidated total net debt | $ | 12,304 |
(1) On June 12, 2026, the Company, as parent guarantor, entered into an amendment to its credit agreement, which increased total commitments from
RETURN OF CAPITAL UPDATE
Diamondback announced today that the Board declared a base cash dividend of
Underscoring confidence in the Company's long-term outlook and commitment to shareholder returns, the Board of Directors on July 30, 2026 doubled Diamondback's share repurchase authorization to
The table below summarizes Diamondback’s return of capital program, including dividends and share repurchases, with future actions subject to Board approval.
| Q2 2026 | Q3 2026 to date | Cumulative | ||||||
| (in millions, except per share amounts, shares in thousands) | ||||||||
| Base dividend | $ | 1.10 | ||||||
| Shares repurchased | 756 | 548 | 42,992 | |||||
| Weighted average repurchase price | $ | 186.63 | $ | 182.32 | $ | 142.44 | ||
| Total repurchase cost | $ | 141 | $ | 100 | $ | 6,124 | ||
| Total return of capital | $ | 452 | ||||||
UPDATED 2026 GUIDANCE
Below is Diamondback's and Viper Energy, Inc.'s (“Viper”) updated guidance for the full year 2026, which includes third quarter production and capital guidance.
| 2026 Guidance | 2026 Guidance | ||
| Diamondback Energy, Inc. | Viper Energy, Inc. | ||
| 2026 Net production - MBOE/d | 1,000+ (from 972+) | 132.5 - 135.0 | |
| 2026 Oil production - MBO/d | 522+ (from 520+) | 66.0 - 67.25 | |
| Q3 2026 Oil production - MBO/d (total - MBOE/d) | 517 - 527 (995 - 1,015) | 67.5 - 68.5 (133.5 - 135.5) | |
| Unit costs ($/BOE) | |||
| Lease operating expenses, including workovers | |||
| G&A | |||
| Cash G&A | |||
| Non-cash equity-based compensation | |||
| DD&A | |||
| Interest expense (net of interest income) | |||
| Gathering, processing and transportation | |||
| Production and ad valorem taxes (% of revenue) | ~ | ~ | |
| Corporate tax rate (% of pre-tax income) | |||
| Cash tax rate (% of pre-tax income)(1) | |||
| Q3 2026 Cash taxes ($ - million) | |||
| Cash Capital Budget ($ - million) | |||
| Operated drilling and completion | ~ | ||
| 2026 Total capital expenditures(2) | ~ | ||
| Q3 2026 Capital expenditures | |||
| Average lateral length (Ft.) | ~12,900' | ||
| Net lateral footage completed (1,000's of Ft.) | 6,100' - 6,500' | ||
(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 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 second quarter of 2026 on Tuesday, August 4, 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 Double Eagle acquisition, and the Sitio acquisition completed by Viper 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, 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, 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 commitment, 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, the Double Eagle 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.
| Diamondback Energy, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||
| (unaudited, $ in millions except per share data, shares in thousands) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Revenues: | |||||||||||||||
| Oil, natural gas and natural gas liquid sales | $ | 4,786 | $ | 3,316 | $ | 8,611 | $ | 6,973 | |||||||
| Sales of purchased oil | 739 | 335 | 1,124 | 709 | |||||||||||
| Other operating income | 37 | 27 | 67 | 44 | |||||||||||
| Total revenues | 5,562 | 3,678 | 9,802 | 7,726 | |||||||||||
| Costs and expenses: | |||||||||||||||
| Lease operating expenses | 552 | 440 | 1,099 | 848 | |||||||||||
| Production and ad valorem taxes | 302 | 214 | 570 | 442 | |||||||||||
| Gathering, processing and transportation | 113 | 145 | 233 | 256 | |||||||||||
| Purchased oil expense | 730 | 331 | 1,123 | 713 | |||||||||||
| Depreciation, depletion, amortization and accretion | 1,272 | 1,266 | 2,565 | 2,363 | |||||||||||
| Impairment of oil and natural gas properties | — | — | 1,400 | — | |||||||||||
| General and administrative expenses | 72 | 67 | 151 | 140 | |||||||||||
| Other operating expenses, net | 9 | 76 | 33 | 152 | |||||||||||
| Total costs and expenses | 3,050 | 2,539 | 7,174 | 4,914 | |||||||||||
| Income (loss) from operations | 2,512 | 1,139 | 2,628 | 2,812 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense, net | (56 | ) | (56 | ) | (119 | ) | (96 | ) | |||||||
| Other income (expense), net | (4 | ) | 2 | 3 | 37 | ||||||||||
| Gain (loss) on derivative instruments, net | 49 | (197 | ) | 166 | 29 | ||||||||||
| Gain (loss) on extinguishment of debt, net | 134 | 55 | 133 | 55 | |||||||||||
| Total other income (expense), net | 123 | (196 | ) | 183 | 25 | ||||||||||
| Income (loss) before income taxes | 2,635 | 943 | 2,811 | 2,837 | |||||||||||
| Provision for (benefit from) income taxes | 580 | 204 | 612 | 607 | |||||||||||
| Net income (loss) | 2,055 | 739 | 2,199 | 2,230 | |||||||||||
| Net income (loss) attributable to non-controlling interest | 173 | 40 | 292 | 126 | |||||||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,882 | $ | 699 | $ | 1,907 | $ | 2,104 | |||||||
| Earnings (loss) per common share: | |||||||||||||||
| Basic | $ | 6.65 | $ | 2.38 | $ | 6.72 | $ | 7.20 | |||||||
| Diluted | $ | 6.65 | $ | 2.38 | $ | 6.72 | $ | 7.20 | |||||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 281,202 | 292,135 | 281,993 | 290,880 | |||||||||||
| Diluted | 281,202 | 292,135 | 281,993 | 290,880 | |||||||||||
| Diamondback Energy, Inc. | |||||||
| Condensed Consolidated Balance Sheets | |||||||
| (unaudited, in millions, except share amounts) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents ( | $ | 462 | $ | 104 | |||
| Restricted cash | 2 | 2 | |||||
| Accounts receivable: | |||||||
| Joint interest and other, net | 261 | 258 | |||||
| Oil and natural gas sales, net ( | 1,669 | 1,128 | |||||
| Inventories | 67 | 86 | |||||
| Prepaid expenses and other current assets | 189 | 337 | |||||
| Total current assets | 2,650 | 1,915 | |||||
| Property and equipment: | |||||||
| Oil and natural gas properties: | |||||||
| Proved properties ( | 74,385 | 71,588 | |||||
| Unproved properties ( | 23,193 | 23,941 | |||||
| Other property, equipment and land | 899 | 874 | |||||
| Accumulated depletion, depreciation, amortization and impairment ( | (31,705 | ) | (27,782 | ) | |||
| Property and equipment, net | 66,772 | 68,621 | |||||
| Other assets | 796 | 523 | |||||
| Total assets | $ | 70,218 | $ | 71,059 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued capital expenditures | 1,264 | 1,168 | |||||
| Current maturities of debt | 1,548 | 763 | |||||
| Other accrued liabilities | 883 | 1,108 | |||||
| Revenues and royalties payable | 1,717 | 1,397 | |||||
| Derivative instruments | 36 | 15 | |||||
| Income taxes payable | 230 | 149 | |||||
| Total current liabilities | 5,678 | 4,600 | |||||
| Long-term debt ( | 11,066 | 13,726 | |||||
| Deferred income taxes | 8,933 | 9,141 | |||||
| Other long-term liabilities | 556 | 625 | |||||
| Total liabilities | 26,233 | 28,092 | |||||
| Stockholders’ equity: | |||||||
| Common stock, | 3 | 3 | |||||
| Additional paid-in capital | 31,866 | 32,236 | |||||
| Retained earnings (accumulated deficit) | 6,038 | 4,740 | |||||
| Accumulated other comprehensive income (loss) | (7 | ) | (7 | ) | |||
| Total Diamondback Energy, Inc. stockholders’ equity | 37,900 | 36,972 | |||||
| Non-controlling interest | 6,085 | 5,995 | |||||
| Total equity | 43,985 | 42,967 | |||||
| Total liabilities and stockholders’ equity | $ | 70,218 | $ | 71,059 | |||
| Diamondback Energy, Inc. | |||||||||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||||||||
| (unaudited, in millions) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income (loss) | $ | 2,055 | $ | 739 | $ | 2,199 | $ | 2,230 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
| Provision for (benefit from) deferred income taxes | 36 | (24 | ) | (206 | ) | (18 | ) | ||||||||
| Depreciation, depletion, amortization and accretion | 1,272 | 1,266 | 2,565 | 2,363 | |||||||||||
| Impairment of oil and natural gas properties | — | — | 1,400 | — | |||||||||||
| (Gain) loss on extinguishment of debt, net | (134 | ) | (55 | ) | (133 | ) | (55 | ) | |||||||
| (Gain) loss on derivative instruments, net | (49 | ) | 197 | (166 | ) | (29 | ) | ||||||||
| Cash received (paid) on settlement of derivative instruments | 113 | (37 | ) | 246 | 48 | ||||||||||
| Other | 33 | 20 | 59 | 54 | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | 216 | 166 | (563 | ) | 160 | ||||||||||
| Accounts payable and accrued liabilities | 53 | (9 | ) | (204 | ) | (383 | ) | ||||||||
| Income taxes payable | (287 | ) | (444 | ) | — | (309 | ) | ||||||||
| Revenues and royalties payable | 254 | (114 | ) | 324 | (30 | ) | |||||||||
| Other | 27 | (28 | ) | (104 | ) | 1 | |||||||||
| Net cash provided by (used in) operating activities | 3,589 | 1,677 | 5,417 | 4,032 | |||||||||||
| Cash flows from investing activities: | |||||||||||||||
| Additions to oil and natural gas properties | (996 | ) | (864 | ) | (1,929 | ) | (1,806 | ) | |||||||
| Property acquisitions | (438 | ) | (3,125 | ) | (752 | ) | (3,875 | ) | |||||||
| Proceeds from sale of assets | 53 | 16 | 657 | 57 | |||||||||||
| Other | (14 | ) | (6 | ) | (29 | ) | (8 | ) | |||||||
| Net cash provided by (used in) investing activities | (1,395 | ) | (3,979 | ) | (2,053 | ) | (5,632 | ) | |||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from debt | 3,765 | 5,145 | 6,290 | 8,622 | |||||||||||
| Repayment of debt | (4,923 | ) | (3,869 | ) | (8,047 | ) | (6,407 | ) | |||||||
| Repurchased shares under repurchase program | (141 | ) | (398 | ) | (180 | ) | (973 | ) | |||||||
| Repurchased shares - related party | — | — | (509 | ) | — | ||||||||||
| Repurchased shares/units under Viper’s repurchase program | (131 | ) | (10 | ) | (228 | ) | (10 | ) | |||||||
| Net proceeds from Viper’s issuance of common stock | — | — | — | 1,232 | |||||||||||
| Proceeds from sale of Viper's common stock | — | — | 589 | — | |||||||||||
| Dividends paid to stockholders | (310 | ) | (291 | ) | (605 | ) | (581 | ) | |||||||
| Dividends to non-controlling interest | (159 | ) | (82 | ) | (279 | ) | (177 | ) | |||||||
| Other | (7 | ) | (13 | ) | (37 | ) | (49 | ) | |||||||
| Net cash provided by (used in) financing activities | (1,906 | ) | 482 | (3,006 | ) | 1,657 | |||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | 288 | (1,820 | ) | 358 | 57 | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | 176 | 2,041 | 106 | 164 | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 464 | $ | 221 | $ | 464 | $ | 221 | |||||||
| Diamondback Energy, Inc. | |||||||||
| Selected Operating Data | |||||||||
| (unaudited) | |||||||||
| Three Months Ended | |||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||
| Production Data: | |||||||||
| Oil (MBbls) | 47,791 | 46,889 | 45,108 | ||||||
| Natural gas (MMcf) | 128,279 | 118,402 | 110,119 | ||||||
| Natural gas liquids (MBbls) | 23,436 | 21,519 | 20,248 | ||||||
| Combined volumes (MBOE)(1) | 92,607 | 88,142 | 83,709 | ||||||
| Daily oil volumes (BO/d) | 525,176 | 520,989 | 495,692 | ||||||
| Daily combined volumes (BOE/d) | 1,017,659 | 979,356 | 919,879 | ||||||
| Average Prices: | |||||||||
| Oil ($ per Bbl) | $ | 96.82 | $ | 73.47 | $ | 63.23 | |||
| Natural gas ($ per Mcf) | $ | (2.15 | ) | $ | 0.18 | $ | 0.88 | ||
| Natural gas liquids ($ per Bbl) | $ | 18.56 | $ | 16.68 | $ | 18.13 | |||
| Combined ($ per BOE) | $ | 51.68 | $ | 43.40 | $ | 39.61 | |||
| Oil, hedged ($ per Bbl)(2) | $ | 94.33 | $ | 72.53 | $ | 62.34 | |||
| Natural gas, hedged ($ per Mcf)(2) | $ | (0.34 | ) | $ | 1.90 | $ | 1.45 | ||
| Natural gas liquids, hedged ($ per Bbl)(2) | $ | 18.56 | $ | 16.68 | $ | 18.13 | |||
| Average price, hedged ($ per BOE)(2) | $ | 52.90 | $ | 45.21 | $ | 39.89 | |||
| Average Cash Costs ($/BOE): | |||||||||
| Lease operating expenses | $ | 5.96 | $ | 6.21 | $ | 5.26 | |||
| Production and ad valorem taxes | 3.26 | 3.04 | 2.56 | ||||||
| Gathering, processing and transportation expense | 1.22 | 1.36 | 1.73 | ||||||
| General and administrative - cash component | 0.52 | 0.65 | 0.55 | ||||||
| Total operating expense - cash | $ | 10.96 | $ | 11.26 | $ | 10.10 | |||
| General and administrative - non-cash component | $ | 0.26 | $ | 0.25 | $ | 0.25 | |||
| Depreciation, depletion, amortization and accretion | $ | 13.74 | $ | 14.67 | $ | 15.12 | |||
| Interest expense, net | $ | 0.60 | $ | 0.71 | $ | 0.67 | |||
(1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2) 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.
NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA
Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest ("net income (loss)") before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, impairment of oil and natural gas properties, non-cash equity-based compensation expense, capitalized equity-based compensation expense, other non-cash transactions and provision for (benefit from) income taxes. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA is useful because the measure allows it to evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company excludes the items listed above from net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.
The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:
| Diamondback Energy, Inc. | |||||||
| Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||
| (unaudited, in millions) | |||||||
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||||
| Net income (loss) attributable to Diamondback Energy, Inc. | $ | 1,882 | $ | 1,907 | |||
| Net income (loss) attributable to non-controlling interest | 173 | 292 | |||||
| Net income (loss) | 2,055 | 2,199 | |||||
| Non-cash (gain) loss on derivative instruments, net | 64 | 80 | |||||
| Interest expense, net | 56 | 119 | |||||
| Depreciation, depletion, amortization and accretion | 1,272 | 2,565 | |||||
| Depreciation and interest expense related to equity method investments | 12 | 26 | |||||
| (Gain) loss on extinguishment of debt | (134 | ) | (133 | ) | |||
| Impairment of oil and natural gas properties | — | 1,400 | |||||
| Non-cash equity-based compensation expense | 33 | 64 | |||||
| Capitalized equity-based compensation expense | (9 | ) | (18 | ) | |||
| Other non-cash transactions | 11 | 27 | |||||
| Provision for (benefit from) income taxes | 580 | 612 | |||||
| Consolidated Adjusted EBITDA | 3,940 | 6,941 | |||||
| Less: Adjustment for non-controlling interest | 391 | 688 | |||||
| Adjusted EBITDA attributable to Diamondback Energy, Inc. | $ | 3,549 | $ | 6,253 | |||
ADJUSTED NET INCOME
Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest ("net income (loss)") adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, impairment of oil and natural gas properties, other non-cash transactions and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company's performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company's performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.
The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:
| Diamondback Energy, Inc. | |||||||
| Adjusted Net Income | |||||||
| (unaudited, $ in millions except per share data, shares in thousands) | |||||||
| Three Months Ended | |||||||
| June 30, 2026 | |||||||
| Amounts | Amounts Per Diluted Share | ||||||
| Net income (loss) attributable to Diamondback Energy, Inc.(1) | $ | 1,882 | $ | 6.65 | |||
| Net income (loss) attributable to non-controlling interest | 173 | 0.62 | |||||
| Net income (loss)(1) | 2,055 | 7.27 | |||||
| Non-cash (gain) loss on derivative instruments, net | 64 | 0.23 | |||||
| (Gain) loss on extinguishment of debt | (134 | ) | (0.48 | ) | |||
| Other non-cash transactions | 11 | 0.04 | |||||
| Adjusted net income excluding above items(1) | 1,996 | 7.06 | |||||
| Income tax adjustment for above items | 13 | 0.05 | |||||
| Adjusted net income(1) | 2,009 | 7.11 | |||||
| Less: Adjusted net income attributable to non-controlling interest | 176 | 0.63 | |||||
| Adjusted net income attributable to Diamondback Energy, Inc.(1) | $ | 1,833 | $ | 6.48 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 281,202 | ||||||
| Diluted | 281,202 | ||||||
(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
OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES, FREE CASH FLOW AND ADJUSTED FREE CASH FLOW
Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in working capital. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in working capital relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.
The Company defines Free Cash Flow, which is a non-GAAP financial measure, as cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company defines Adjusted Free Cash Flow, which is a non-GAAP financial measure, as Free Cash Flow before the tax impact from divestitures (if any), merger and transaction expenses, costs of early termination of derivatives and settlements of any treasury locks (if any). The Company believes that Free Cash Flow and Adjusted Free Cash Flow are useful to investors as they provide a measure to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis, adjusted, as applicable, for non-recurring impacts from divestitures, merger and transaction expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of liquidity. The Company's computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies.
The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measures of Free Cash Flow and Adjusted Free Cash Flow:
| Diamondback Energy, Inc. | |||||||
| Operating Cash Flow Before Working Capital Changes, Free Cash Flow and Adjusted Free Cash Flow | |||||||
| (unaudited, in millions) | |||||||
| Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||||
| Net cash provided by operating activities | $ | 3,589 | $ | 5,417 | |||
| Less: Changes in cash due to changes in operating assets and liabilities: | |||||||
| Accounts receivable | 216 | (563 | ) | ||||
| Accounts payable and accrued liabilities | 53 | (204 | ) | ||||
| Income taxes payable | (287 | ) | — | ||||
| Revenues and royalties payable | 254 | 324 | |||||
| Other | 27 | (104 | ) | ||||
| Total working capital changes | 263 | (547 | ) | ||||
| Operating cash flow before working capital changes | 3,326 | 5,964 | |||||
| Additions to oil and natural gas properties | (996 | ) | (1,929 | ) | |||
| Total Cash CAPEX | (996 | ) | (1,929 | ) | |||
| Free Cash Flow | 2,330 | 4,035 | |||||
| Merger and transaction expenses(1) | 1 | 6 | |||||
| Early termination of derivatives | — | 27 | |||||
| Adjusted Free Cash Flow | $ | 2,331 | $ | 4,068 | |||
(1) Includes
NET DEBT
The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents and restricted cash that has been irrevocably deposited for the redemption of principal amounts of outstanding senior notes. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company's leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.
| Diamondback Energy, Inc. | |||||||||||||||||||||||
| Net Debt | |||||||||||||||||||||||
| (unaudited, in millions) | |||||||||||||||||||||||
| June 30, 2026 | Net Q2 Principal Borrowings/ (Repayments) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | ||||||||||||||||||
| Diamondback Energy, Inc.(1) | $ | 11,071 | $ | (1,377 | ) | $ | 12,448 | $ | 12,462 | $ | 13,792 | $ | 14,212 | ||||||||||
| Viper Energy, Inc.(1) | 1,695 | 75 | 1,620 | 2,205 | 2,640 | 1,105 | |||||||||||||||||
| Total debt | 12,766 | $ | (1,302 | ) | 14,068 | 14,667 | 16,432 | 15,317 | |||||||||||||||
| Cash and cash equivalents | (462 | ) | (174 | ) | (104 | ) | (539 | ) | (219 | ) | |||||||||||||
| Net debt | $ | 12,304 | $ | 13,894 | $ | 14,563 | $ | 15,893 | $ | 15,098 | |||||||||||||
(1) Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.
DERIVATIVES
As of July 31, 2026, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.
| Crude Oil (Bbls/day, $/Bbl) | |||||||||||||||||
| Q3 2026 | Q4 2026 | Q1 2027 | Q2 2027 | Q3 2027 | Q4 2027 | ||||||||||||
| Long Puts - Crude Brent Oil | 20,000 | 10,000 | 5,000 | — | — | — | |||||||||||
| Long Put Price ($/Bbl) | $ | 52.50 | $ | 55.00 | $ | 55.00 | — | — | — | ||||||||
| Deferred Premium ($/Bbl) | $ | -1.60 | $ | -1.33 | $ | -1.40 | — | — | — | ||||||||
| Long Puts - WTI (Magellan East Houston) | 95,000 | 70,000 | 50,000 | 35,000 | 5,000 | — | |||||||||||
| Long Put Price ($/Bbl) | $ | 50.53 | $ | 50.71 | $ | 50.00 | $ | 50.00 | $ | 50.00 | — | ||||||
| Deferred Premium ($/Bbl) | $ | -1.43 | $ | -1.33 | $ | -1.31 | $ | -1.35 | $ | -1.29 | — | ||||||
| Long Puts - WTI (Cushing) | 190,000 | 170,000 | 100,000 | 65,000 | 25,000 | — | |||||||||||
| Long Put Price ($/Bbl) | $ | 52.57 | $ | 50.59 | $ | 50.00 | $ | 50.00 | $ | 50.00 | — | ||||||
| Deferred Premium ($/Bbl) | $ | -1.30 | $ | -1.28 | $ | -1.34 | $ | -1.34 | $ | -1.41 | — | ||||||
| Put Spreads WTI (Cushing) | 15,000 | — | — | — | — | — | |||||||||||
| Long Put Price ($/Bbl) | $ | 50.00 | — | — | — | — | — | ||||||||||
| Short Put Price ($/Bbl) | $ | 55.00 | — | — | — | — | — | ||||||||||
| Basis Swaps - WTI (Midland) | 85,000 | 85,000 | 20,000 | 20,000 | 10,000 | 10,000 | |||||||||||
| $ | 1.09 | $ | 1.09 | $ | 1.51 | $ | 1.51 | $ | 1.01 | $ | 1.01 | ||||||
| WTI / Brent Basis Puts | 290,000 | 290,000 | — | — | — | — | |||||||||||
| Spread ($/Bbl) | $ | -42.76 | $ | -41.03 | — | — | — | — | |||||||||
| Deferred Premium ($/Bbl) | $ | -1.52 | $ | -1.44 | — | — | — | — | |||||||||
| Roll Swaps - WTI | 150,000 | 150,000 | — | — | — | — | |||||||||||
| $ | 2.89 | $ | 2.89 | — | — | — | — | ||||||||||
| Natural Gas (Mmbtu/day, $/Mmbtu) | |||||||||||
| Q3 2026 | Q4 2026 | FY 2027 | FY 2028 | ||||||||
| Costless Collars - Henry Hub | 840,000 | 840,000 | 720,000 | 50,000 | |||||||
| Floor Price ($/Mmbtu) | $ | 2.87 | $ | 2.87 | $ | 2.88 | $ | 2.60 | |||
| Ceiling Price ($/Mmbtu) | $ | 6.35 | $ | 6.35 | $ | 6.37 | $ | 5.78 | |||
| Natural Gas Basis Swaps - Waha Hub | 650,000 | 650,000 | 370,000 | — | |||||||
| $ | -1.87 | $ | -1.75 | $ | -1.27 | — | |||||
| Natural Gas Basis Swaps - Houston Ship Channel | 100,000 | 100,000 | 300,000 | 90,000 | |||||||
| $ | -0.35 | $ | -0.35 | $ | -0.31 | $ | -0.34 | ||||
Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
