Diamondback Energy Inc

Latest Results (20.10.2025):

Diamondback Energy Inc. reported its second quarter of 2025 with strong operational performance and robust financial metrics. The company achieved significant milestones in production, cash flow generation, and shareholder returns, while also updating its full-year guidance to reflect improved efficiency and strategic initiatives.

Production Performance

Diamondback Energy achieved an average oil production of 495.7 MBO/d (919.9 MBOE/d) in Q2 2025, demonstrating steady operational capabilities and effective resource management.

Strong Cash Flow

The company generated net cash provided by operating activities of $1.7 billion and reported an Operating Cash Flow Before Working Capital Changes of $2.1 billion. Free Cash Flow stood robust at $1.2 billion, with Adjusted Free Cash Flow reaching $1.3 billion.

Shareholder Returns

Diamondback declared a Q2 2025 base cash dividend of $1.00 per share, yielding approximately 2.7% based on the August 1, 2025 closing share price of $146.14. Additionally, the company repurchased nearly 2.99 million shares in Q2 2025 for $398 million and an additional 1.67 million shares in Q3 2025 for $238 million, totaling a return of capital of $691 million.

Capital Management

The company repurchased $252 million in aggregate principal amount of its Senior notes due between 2031 and 2054 at an average price of 76.8% of par value. Furthermore, Diamondback's Board of Directors increased the share repurchase authorization by $2.0 billion to a total of $8.0 billion, leaving approximately $3.5 billion available for future buybacks.

Updated 2025 Guidance

Diamondback narrowed its full-year oil production guidance to 485-492 MBO/d and raised annual BOE guidance by 2% to 890-910 MBOE/d. The company also lowered full-year cash capital expenditures to $3.4-$3.6 billion, enhancing capital efficiency by approximately 14% better than original guidance. Q3 2025 oil production is expected to be between 485-495 MBO/d with cash capital expenditures ranging from $750-$850 million.

Operational Highlights

In Q2 2025, Diamondback drilled and completed a total of 122 gross wells, turning 108 operated wells to production. The company plans to drill 425-450 gross wells and complete 490-515 gross wells in 2025, maintaining an average lateral length of around 11,500 feet.