DIAMONDBACK ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL AND OPERATING
DIAMONDBACK ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS; INCREASES BASE DIVIDEND Midland, TX (November 2, 2026) - 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.
• Net cash provided by operating activities of $2.6 billion; Operating Cash Flow Before Working Capital Changes 1 of $3.2 billion
• Free Cash Flow 1 and Adjusted Free Cash Flow 1 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 yield 2
• 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
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)
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 Cash dividend payable on November 19, 2026; annualized yield based on October 30, 2026 closing share price of $212.08
• Have repurch ased 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)
The following tables provide a summary of Diamondback’s key operational updates:
(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 ────────────────────────────────────────────────────────────────────────────── -in millions, except per share amounts Net income (loss) attributable to $ 1,603 Diamondback Energy, Inc. Earnings (loss) per common share attributable to Diamondback $ 5.69 Energy, Inc. - Diluted(1) Adjusted net income(1) $ 1,649 Adjusted net income per common share - $ 5.86 Diluted(1)
(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:
Nine Months Ended Three Months Ended September 30, September 30, 2026 2026 ────────────────────────────────────────────────────────────────────────────── -in millions Net income (loss) attributable to $ 1,603 $ 3,510 Diamondback Energy, Inc. Consolidated $ 3,752 $ 10,693 Adjusted EBITDA Adjusted EBITDA attributable to $ 3,393 $ 9,646 Diamondback Energy, Inc. Net cash provided by $ 2,599 $ 8,016 operating activities Free Cash Flow $ 2,148 $ 6,183 Adjusted Free $ 2,150 $ 6,218 Cash Flow
September 30, 2026 ────────────────────────────────────────────────────────────────────────────── -in millions Standalone cash $ 548 Borrowings outstanding under the credit $ — facility Remaining availability under the credit $ 3,000 facility Total standalone liquidity $ 3,548 Consolidated total debt $ 13,375 Consolidated total net debt $ 12,817
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.
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.
(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.
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.
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.
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.
Diamondback Energy, Inc. Condensed Consolidated Balance Sheets (unaudited, in millions, except share amounts) Assets September 30, December 31, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash equivalents ($10 million $ 558 $ 104 and $13 million related to Viper) Restricted cash 2 2 Accounts receivable: Joint interest and other, 247 258 net Oil and natural gas sales, net ($496 million and $262 million 2,118 1,128 related to Viper) Inventories 64 86 Prepaid expenses and other current 158 337 assets Total current assets 3,147 1,915 Property and equipment: Oil and natural gas properties: Proved properties ($10,102 million and 77,090 71,588 $9,746 million related to Viper) Unproved properties ($5,213 million and 22,990 23,941 $4,910 million related to Viper) Other property, equipment 932 874 and land Accumulated depletion, depreciation, amortization and impairment ($3,062 -33,000 -27,782 million and $2,455 million related to Viper) Property and equipment, 68,012 68,621 net Other assets 951 523 Total assets $ 72,110 $ 71,059 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable and accrued capital 1,374 1,168 expenditures Current maturities of 1,548 763 debt Other accrued liabilities 1,033 1,108 Revenues and royalties 1,645 1,397 payable Derivative instruments 47 15 Income taxes payable 92 149 Total current liabilities 5,739 4,600 Long-term debt ($2,394 million and 11,682 13,726 $2,186 million related to Viper) Deferred income taxes 8,936 9,141 Other long-term 620 625 liabilities Total liabilities 26,977 28,092 Stockholders’ equity: Common stock, $0.01 par value; 800,000,000 shares authorized; 279,241,756 and 284,594,908 shares 3 3 issued and outstanding at September 30, 2026, and December 31, 2025, respectively Additional paid-in 31,638 32,236 capital Retained earnings 7,332 4,740 (accumulated deficit) Accumulated other comprehensive income -7 -7 (loss) Total Diamondback Energy, Inc. 38,966 36,972 stockholders’ equity Non-controlling interest 6,167 5,995 Total equity 45,133 42,967 Total liabilities and stockholders’ $ 72,110 $ 71,059 equity
(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.
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 Three Months Ended Nine Months Ended (unaudited, in millions) September 30, 2026 September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net income (loss) attributable to $ 1,603 $ 3,510 Diamondback Energy, Inc. Net income (loss) attributable to 168 460 non-controlling interest Net income (loss) 1,771 3,970 Non-cash (gain) loss on derivative 85 165 instruments, net Interest expense, net 55 174 Depreciation, depletion, amortization 1,320 3,885 and accretion Depreciation and interest expense 13 39 related to equity method investments (Gain) loss on -4 -137 extinguishment of debt Impairment of oil and natural gas — 1,400 properties Non-cash equity-based compensation 37 101 expense Capitalized equity-based compensation -11 -29 expense Other non-cash -15 12 transactions Provision for (benefit from) income 501 1,113 taxes Consolidated Adjusted 3,752 10,693 EBITDA Less: Adjustment for non-controlling 359 1,047 interest Adjusted EBITDA attributable to $ 3,393 $ 9,646 Diamondback Energy, Inc.
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, 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 Three Months Ended share amounts, shares September 30, 2026 Amounts Per in thousands) Amounts Diluted Share ────────────────────────────────────────────────────────────────────────────── Net income (loss) attributable to $ 1,603 $ 5.69 Diamondback Energy, Inc.(1) Net income (loss) attributable to 168 0.60 non-controlling interest Net income (loss)(1) 1,771 6.29 Non-cash (gain) loss on derivative 85 0.30 instruments, net (Gain) loss on extinguishment of -4 -0.01 debt Other non-cash -15 -0.05 transactions Adjusted net income excluding above 1,837 6.53 items(1) Income tax adjustment -15 -0.05 for above items Adjusted net 1,822 6.48 income(1) Less: Adjusted net income attributable 173 0.62 to non-controlling interest Adjusted net income attributable to $ 1,649 $ 5.86 Diamondback Energy, Inc.(1) Weighted average common shares outstanding: Basic 279,959 Diluted 279,959
(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.
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 Three Months Ended Nine Months Ended (unaudited, in millions) September 30, 2026 September 30, 2026 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $ 2,599 $ 8,016 activities Less: Changes in cash due to changes in operating assets and liabilities: Accounts receivable -476 -1,039 Accounts payable and 71 -133 accrued liabilities Income taxes payable -138 -138 Revenues and royalties -54 270 payable Other 22 -82 Total working capital -575 -1,122 changes Operating cash flow before working 3,174 9,138 capital changes Additions to oil and natural gas -1,026 -2,955 properties Total Cash CAPEX -1,026 -2,955 Free Cash Flow 2,148 6,183 Merger and transaction 2 8 expenses(1) Early termination of — 27 derivatives Adjusted Free Cash Flow $ 2,150 $ 6,218
(1) Includes $4 million of Viper's transaction expenses primarily related to the Sitio Acquisition for the nine months ended September 30, 2026.
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.
(1) Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.
As of October 30, 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 and published index prices. Crude oil derivative settlements are based on New York Mercantile Exchange (“NYMEX”) West Texas Intermediate (“WTI”) pricing, Crude Oil Brent pricing and the regional crude oil pricing points indicated below. Natural gas derivative settlements are based on NYMEX Henry Hub pricing and the regional natural gas pricing points indicated below. Basis swaps settle on the differential between the applicable benchmark price and the regional index price, and roll swaps settle on the differential between NYMEX WTI prompt-month and second-month contract prices. When aggregating multiple contracts, the weighted average contract price is disclosed.
Full text with the tables
Exhibit 99.1
DIAMONDBACK ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL AND OPERATING
RESULTS; INCREASES BASE DIVIDEND
Midland, TX (November 2, 2026) - 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 Changes 1 of $3.2 billion
• Cash capital expenditures of $1.0 billion
• Free Cash Flow 1 and Adjusted Free Cash Flow 1 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 yield 2
• 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
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
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 Cash dividend payable on November 19, 2026; annualized yield based on October
30, 2026 closing share price of $212.08
RECENT HIGHLIGHTS
• Have repurch ased 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 ($183 million, including
accrued interest)
THIRD QUARTER
2026
OPERATIONS UPDATE
The following tables provide a summary of Diamondback’s key operational updates:
Wells Drilled and Completed:
T… N…
M… M…
E… E…
S… S…
3… 3…
2… 2…
──────────────────────────────────────────────────────────────────────────────
D… C… … …
G… N… G… … … … … …
… 1… 1… 1… 1… 3… 3… 4… 4…
Gross Wells Drilled and Completed By Zone:
Three Nine
Months Months
Ended Ended
Septe… Septe…
30, 30,
2026 2026
──────────────────────────────────────────────────────────────────────────────
Number Number Number Number
of of of of
Wells Wells Wells Wells
Drill… Compl… Drill… Compl…
Midl…
Basi…
Upper 3 2 6 5
Spra…
Midd… 5 6 18 26
Spra…
Jo 17 22 55 84
Mill
Lower 15 24 55 87
Spra…
Dean 3 2 5 13
Wolf… 15 36 61 105
A
Wolf… 24 33 69 104
B
Wolf… 9 8 27 23
D
Barn… 14 2 24 3
Midl…
Basin 105 135 320 450
Total
Aver…
Comp…
Late… 13,584 12,2…
Leng…
(in
feet)
Realized Average Prices:
Three
Months September June 30, September
Ended 30, 2026 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Oil ($ per $ 87.30 $ 96.82 $ 64.60
Bbl)
Natural
gas ($ per $ 1.12 $ -2.15 $ 0.75
Mcf)
Natural
gas $ 20.02 $ 18.56 $ 17.28
liquids ($
per Bbl)
Combined
price ($ $ 51.03 $ 51.68 $ 39.73
per BOE)
Oil,
hedged ($ $ 85.89 $ 94.33 $ 63.70
per
Bbl)(1)
Natural
gas,
hedged ($ $ 0.90 $ -0.34 $ 1.75
per
Mcf)(1)
Natural
gas
liquids, $ 20.02 $ 18.56 $ 17.28
hedged ($
per
Bbl)(1)
Combined
price,
hedged ($ $ 50.01 $ 52.90 $ 40.58
per
BOE)(1)
(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 September June 30, September
Ended 30, 2026 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Lease
operating $ 5.97 $ 5.96 $ 5.65
expenses
Production
and ad 3.02 3.26 2.44
valorem
taxes
Gathering,
processing
and 1.32 1.22 1.41
transport…
expense
General
and
administr… 0.60 0.52 0.55
- cash
component
Total
operating $ 10.91 $ 10.96 $ 10.05
expense -
cash
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 $ 1,603
Diamondback Energy, Inc.
Earnings (loss) per common share
attributable to Diamondback $ 5.69
Energy, Inc.
- Diluted(1)
Adjusted net income(1) $ 1,649
Adjusted net income per common
share - $ 5.86
Diluted(1)
(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 Nine
September Months
30, Ended
2026 September
(in 30,
millions) 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operated
drilling
and
complet…
additio… $ 884 $ 632 $ 2,510 $ 2,203
to oil
and
natural
gas
propert…
Non-ope…
additio…
to oil
and
natural 142 142 445 377
gas
propert…
and
other
Total $ 1,026 $ 774 $ 2,955 $ 2,580
Adjusted EBITDA and Free Cash Flow - Non-GAAP:
Nine Months Ended
Three Months Ended September 30,
September 30, 2026 2026
──────────────────────────────────────────────────────────────────────────────
-in millions
Net income
(loss)
attributable to $ 1,603 $ 3,510
Diamondback
Energy, Inc.
Consolidated $ 3,752 $ 10,693
Adjusted EBITDA
Adjusted EBITDA
attributable to $ 3,393 $ 9,646
Diamondback
Energy, Inc.
Net cash
provided by $ 2,599 $ 8,016
operating
activities
Free Cash Flow $ 2,148 $ 6,183
Adjusted Free $ 2,150 $ 6,218
Cash Flow
Debt & Liquidity:
September 30, 2026
──────────────────────────────────────────────────────────────────────────────
-in millions
Standalone cash $ 548
Borrowings outstanding under the credit $ —
facility
Remaining availability under the credit $ 3,000
facility
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.
Q3 2026
(in
millions,
except per
share
amounts,
shares in Q4 2026 to
thousands) date Cumulative
──────────────────────────────────────────────────────────────────────────────
Base $ 1.18
dividend
Shares 1,348 390 44,183
repurcha…
Weighted
average $ 185.94 $ 186.69 $ 143.66
repurcha…
price
Total
repurcha… $ 251 $ 73 $ 6,348
cost
Total
return of $ 582
capital
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.
2026 Guidance 2026 Guidance
Diamondback Energy, Viper Energy, Inc.
Inc.
2026 Net production - ~1,015 (from 1,000+) 137.0 - 138.0
MBOE/d
2026 Oil production - ~524(from 522+) 67.25 - 67.75
MBO/d
Q4 2026 Oil production 518 - 528 (1,025 - 70.0 - 71.0 (141.5 -
- MBO/d (total - 1,045) 143.5)
MBOE/d)
Unit costs ($/BOE)
Lease operating $5.95 - $6.20(from
expenses, including $5.90 - $6.40)
workovers
G&A
Cash G&A $0.55 - $0.65 $0.70 - $0.90
Non-cash equity-based $0.20 - $0.30 $0.10 - $0.20
compensation
DD&A $13.50 - $14.50 $14.75 - $17.25
Interest expense (net
of interest $0.50 - $0.70 $1.90 - $2.40
income)
Gathering, processing $1.30 - $1.50(from
and transportation $1.40 - $1.60)
Production and ad
valorem taxes (% of ~6.5%(from ~7%) ~7%
revenue)
Corporate tax rate (% 23%
of pre-tax income)
Cash tax rate (% of 19% - 22% 27% - 30%
pre-tax income)(1)
Q4 2026 Cash taxes ($ $500 - $560
- million)
Cash Capital Budget ($
- million)
Operated drilling and $3,350 - $3,400(from
completion ~$3,310)
2026 Total capital $3,950 - $4,000(from
expenditures(2) ~$3,900)
Q4 2026 Capital $1,000 - $1,050
expenditures
Average lateral length ~12,900'
(Ft.)
Net lateral footage 6,200' - 6,600' (from
completed (1,000's 6,100' - 6,500')
of Ft.)
(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 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.
D…
E…
I…
C…
C…
S…
of
O…
(…
in
m…
e…
p…
s… Thr… Nine
a… Mon… Mon…
s… End… End…
in Sep… Sep…
t… 30, 30,
R… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
O…
n…
g…
a… $ 4,… $ 3,4… $ 13… $ 10,…
n…
g…
l…
s…
S…
of 536 459 1,… 1,1…
p…
o…
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o… 41 18 108 62
i…
T… 5,… 3,9… 15… 11,…
r…
C…
a…
e…
L…
o… 568 490 1,… 1,3…
e…
P…
a…
ad 287 212 857 654
v…
t…
G…
p… 126 122 359 378
a…
t…
P…
o… 540 455 1,… 1,1…
e…
D…
d…
a… 1,… 1,2… 3,… 3,6…
a…
a…
I…
of
o…
a… — — 1,… —
n…
g…
p…
G…
a… 83 70 234 210
a…
e…
O…
o… 7 53 40 205
e…
n…
T…
c… 2,… 2,6… 10… 7,6…
a…
e…
I…
(… 2,… 1,2… 5,… 4,0…
f…
o…
O…
i…
(…
I…
e… -55 -70 -1… -166
n…
O…
i… 5 116 8 153
(…
n…
G…
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on -1… 120 -16 149
d…
i…
n…
G…
(…
on
e… 4 -32 137 23
of
d…
n…
T…
o…
i… -2… 134 -45 159
(…
n…
I…
(…
b… 2,… 1,3… 5,… 4,2…
i…
t…
P…
f…
(… 501 287 1,… 894
f…
i…
t…
N…
i… 1,… 1,0… 3,… 3,3…
(…
N…
i…
(…
a… 168 65 460 191
to
n…
i…
N…
i…
(…
a… $ 1,… $ 1,0… $ 3,… $ 3,1…
to
D…
E…
I…
E…
(…
p…
c…
s…
B… $ 5.… $ 3.51 $ 12… $ 10.…
D… $ 5.… $ 3.51 $ 12… $ 10.…
W…
a…
c…
s…
o…
B… 279… 28… 281… 29…
D… 279… 28… 281… 29…
Diamondback Energy, Inc.
Condensed Consolidated
Balance Sheets
(unaudited, in millions,
except share amounts)
Assets September 30, December 31,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash equivalents
($10 million $ 558 $ 104
and $13 million related
to Viper)
Restricted cash 2 2
Accounts receivable:
Joint interest and other, 247 258
net
Oil and natural gas
sales, net ($496
million and $262 million 2,118 1,128
related to
Viper)
Inventories 64 86
Prepaid expenses and
other current 158 337
assets
Total current assets 3,147 1,915
Property and equipment:
Oil and natural gas
properties:
Proved properties
($10,102 million and 77,090 71,588
$9,746 million related to
Viper)
Unproved properties
($5,213 million and 22,990 23,941
$4,910 million related to
Viper)
Other property, equipment 932 874
and land
Accumulated depletion,
depreciation,
amortization and
impairment ($3,062 -33,000 -27,782
million and $2,455
million related to
Viper)
Property and equipment, 68,012 68,621
net
Other assets 951 523
Total assets $ 72,110 $ 71,059
Liabilities and
Stockholders’ Equity
Current liabilities:
Accounts payable and
accrued capital 1,374 1,168
expenditures
Current maturities of 1,548 763
debt
Other accrued liabilities 1,033 1,108
Revenues and royalties 1,645 1,397
payable
Derivative instruments 47 15
Income taxes payable 92 149
Total current liabilities 5,739 4,600
Long-term debt ($2,394
million and 11,682 13,726
$2,186 million related to
Viper)
Deferred income taxes 8,936 9,141
Other long-term 620 625
liabilities
Total liabilities 26,977 28,092
Stockholders’ equity:
Common stock, $0.01 par
value;
800,000,000 shares
authorized;
279,241,756 and
284,594,908 shares 3 3
issued and outstanding at
September 30,
2026, and December 31,
2025,
respectively
Additional paid-in 31,638 32,236
capital
Retained earnings 7,332 4,740
(accumulated deficit)
Accumulated other
comprehensive income -7 -7
(loss)
Total Diamondback Energy,
Inc. 38,966 36,972
stockholders’ equity
Non-controlling interest 6,167 5,995
Total equity 45,133 42,967
Total liabilities and
stockholders’ $ 72,110 $ 71,059
equity
Diamo…
Energ…
Inc.
Conde…
Conso…
State…
of
Cash
Flows
(unau…
in
milli… Three Nine
Cash Months Months
flows Ended Ended
from Septem… Septem…
opera… 30, 30,
activ… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net
income $ 1,771 $ 1,083 $ 3,970 $ 3,313
(loss)
Adjus…
to
recon…
net
income
(loss)
to net
cash
provi…
by
(used
in)
opera…
activ…
Provi…
for
(bene…
from) -7 253 -213 235
defer…
income
taxes
Depre…
deple…
amort… 1,320 1,286 3,885 3,649
and
accre…
Impai…
of oil
and — — 1,400 —
natur…
gas
prope…
(Gain)
loss
on
extin… -4 32 -137 -23
of
debt,
net
(Gain)
loss
on 182 -120 16 -149
deriv…
instr…
net
Cash
recei…
(paid)
on -97 60 149 108
settl…
of
deriv…
instr…
Other 9 -60 68 -6
Chang…
in
opera…
assets
and
liabi…
Accou… -476 -22 -1,039 138
recei…
Accou…
payab…
and 71 28 -133 -355
accru…
liabi…
Income
taxes -138 -206 -138 -515
payab…
Reven…
and -54 58 270 28
royal…
payab…
Other 22 -9 -82 -8
Net
cash
provi…
by 2,599 2,383 8,016 6,415
(used
in)
opera…
activ…
Cash
flows
from
inves…
activ…
Addit…
to oil
and -1,026 -774 -2,955 -2,580
natur…
gas
prope…
Prope… -1,157 -1,536 -1,909 -5,411
acqui…
Proce…
from
sale 66 257 723 314
of
assets
Other -193 -6 -222 -14
Net
cash
provi…
by -2,310 -2,059 -4,363 -7,691
(used
in)
inves…
activ…
Cash
flows
from
finan…
activ…
Proce…
from 3,115 4,400 9,405 13,022
debt
Repay…
of -2,500 -3,313 -10,5… -9,720
debt
Repur…
shares
under -251 -603 -431 -1,576
repur…
progr…
Repur…
shares
- — — -509 —
relat…
party
Repur…
share…
under -90 -90 -318 -100
Viper…
repur…
progr…
Net
proce…
from
Viper… — — — 1,232
issua…
of
common
stock
Proce…
from
sale
of — — 589 —
Viper…
common
stock
Payme…
for
divid… -309 -290 -918 -874
and
divid…
equiv…
Divid…
to -158 -79 -437 -256
non-c…
inter…
Other — -18 -33 -64
Net
cash
provi…
by -193 7 -3,199 1,664
(used
in)
finan…
activ…
Net
incre…
(decr…
in
cash, 96 331 454 388
cash
equiv…
and
restr…
cash
Cash,
cash
equiv…
and
restr… 464 221 106 164
cash
at
begin…
of
period
Cash,
cash
equiv…
and
restr… $ 560 $ 552 $ 560 $ 552
cash
at end
of
period
Diamond…
Energy,
Inc.
Selected
Operati…
Data
(unaudi…
Product…
Data:
Oil
(MBbls)
Natural
gas
(MMcf)
Natural
gas
liquids
(MBbls)
Combined
volumes…
Daily
oil
volumes
(BO/d)
Daily 48,295 47,791 46,345
combined Three 135,002 128,279 115,353
volumes Months 24,330 23,436 21,180
(BOE/d) Ended 95,125 92,607 86,751
Average September 524,946 June 30, 525,176 Septemb… 503,750
Prices: 30, 2026 1,033,967 2026 1,017,659 30, 2025 942,946
──────────────────────────────────────────────────────────────────────────────
Oil ($ $ 87.30 $ 96.82 $ 64.60
per Bbl)
Natural
gas ($ $ 1.12 $ -2.15 $ 0.75
per Mcf)
Natural
gas
liquids $ 20.02 $ 18.56 $ 17.28
($ per
Bbl)
Combined
price ($ $ 51.03 $ 51.68 $ 39.73
per BOE)
Oil,
hedged $ 85.89 $ 94.33 $ 63.70
($ per
Bbl)(2)
Natural
gas,
hedged $ 0.90 $ -0.34 $ 1.75
($ per
Mcf)(2)
Natural
gas
liquids, $ 20.02 $ 18.56 $ 17.28
hedged
($ per
Bbl)(2)
Combined
price,
hedged $ 50.01 $ 52.90 $ 40.58
($ per
BOE)(2)
Average
Cash
Costs
($/BOE):
Lease
operati… $ 5.97 $ 5.96 $ 5.65
expenses
Product…
and ad 3.02 3.26 2.44
valorem
taxes
Gatheri…
process…
and 1.32 1.22 1.41
transpo…
expense
General
and
adminis… 0.60 0.52 0.55
- cash
compone…
Total
operati… $ 10.91 $ 10.96 $ 10.05
expense
- cash
General
and
adminis… $ 0.27 $ 0.26 $ 0.25
-
non-cash
compone…
Depreci…
depleti…
amortiz… $ 13.88 $ 13.74 $ 14.82
and
accreti…
Interest
expense, $ 0.58 $ 0.60 $ 0.81
net
(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 Three Months Ended Nine Months Ended
(unaudited, in millions) September 30, 2026 September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net income (loss)
attributable to $ 1,603 $ 3,510
Diamondback Energy, Inc.
Net income (loss)
attributable to 168 460
non-controlling interest
Net income (loss) 1,771 3,970
Non-cash (gain) loss on
derivative 85 165
instruments, net
Interest expense, net 55 174
Depreciation, depletion,
amortization 1,320 3,885
and accretion
Depreciation and interest
expense 13 39
related to equity method
investments
(Gain) loss on -4 -137
extinguishment of debt
Impairment of oil and
natural gas — 1,400
properties
Non-cash equity-based
compensation 37 101
expense
Capitalized equity-based
compensation -11 -29
expense
Other non-cash -15 12
transactions
Provision for (benefit
from) income 501 1,113
taxes
Consolidated Adjusted 3,752 10,693
EBITDA
Less: Adjustment for
non-controlling 359 1,047
interest
Adjusted EBITDA
attributable to $ 3,393 $ 9,646
Diamondback Energy, Inc.
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, 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 Three Months Ended
share amounts, shares September 30, 2026 Amounts Per
in thousands) Amounts Diluted Share
──────────────────────────────────────────────────────────────────────────────
Net income (loss)
attributable to $ 1,603 $ 5.69
Diamondback Energy,
Inc.(1)
Net income (loss)
attributable to 168 0.60
non-controlling
interest
Net income (loss)(1) 1,771 6.29
Non-cash (gain) loss
on derivative 85 0.30
instruments, net
(Gain) loss on
extinguishment of -4 -0.01
debt
Other non-cash -15 -0.05
transactions
Adjusted net income
excluding above 1,837 6.53
items(1)
Income tax adjustment -15 -0.05
for above items
Adjusted net 1,822 6.48
income(1)
Less: Adjusted net
income attributable 173 0.62
to non-controlling
interest
Adjusted net income
attributable to $ 1,649 $ 5.86
Diamondback Energy,
Inc.(1)
Weighted average
common shares
outstanding:
Basic 279,959
Diluted 279,959
(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.
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 Three Months Ended Nine Months Ended
(unaudited, in millions) September 30, 2026 September 30, 2026
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 2,599 $ 8,016
activities
Less: Changes in cash due
to changes in
operating assets and
liabilities:
Accounts receivable -476 -1,039
Accounts payable and 71 -133
accrued liabilities
Income taxes payable -138 -138
Revenues and royalties -54 270
payable
Other 22 -82
Total working capital -575 -1,122
changes
Operating cash flow before
working 3,174 9,138
capital changes
Additions to oil and
natural gas -1,026 -2,955
properties
Total Cash CAPEX -1,026 -2,955
Free Cash Flow 2,148 6,183
Merger and transaction 2 8
expenses(1)
Early termination of — 27
derivatives
Adjusted Free Cash Flow $ 2,150 $ 6,218
(1) Includes $4 million of Viper's transaction expenses primarily related to the
Sitio Acquisition for the nine months ended September 30, 2026.
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.
Dia…
Ene…
Inc.
Net
Debt Net
(un… Sept… Q3 June March Dece… Sept…
in 30, Prin… 30, 31, 31, 30,
mil… 2026 Borr… 2026 2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Dia…
tot… $ 10,9… $ -106 $ 11,0… $ 12,4… $ 12,4… $ 13,7…
deb…
Dia…
cash
and -548 -385 -146 -91 -106
cash
equ…
Dia…
net $ 10,4… $ 10,6… $ 12,3… $ 12,3… $ 13,6…
debt
Vip…
tot… $ 2,410 $ 715 $ 1,695 $ 1,620 $ 2,205 $ 2,640
deb…
Vip…
cash
and -10 -77 -28 -13 -433
cash
equ…
Vip…
net $ 2,400 $ 1,618 $ 1,592 $ 2,192 $ 2,207
debt
Tot… $ 13,3… $ 609 $ 12,7… $ 14,0… $ 14,6… $ 16,4…
debt
Cash
and -558 -462 -174 -104 -539
cash
equ…
Net $ 12,8… $ 12,3… $ 13,8… $ 14,5… $ 15,8…
debt
(1) Excludes debt issuance costs, discounts, premiums and unamortized basis
adjustments.
DERIVATIVES
As of October 30, 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 and published index prices. Crude oil derivative settlements are based
on New York Mercantile Exchange (“NYMEX”) West Texas Intermediate (“WTI”)
pricing, Crude Oil Brent pricing and the regional crude oil pricing points
indicated below. Natural gas derivative settlements are based on NYMEX Henry Hub
pricing and the regional natural gas pricing points indicated below. Basis swaps
settle on the differential between the applicable benchmark price and the
regional index price, and roll swaps settle on the differential between NYMEX
WTI prompt-month and second-month contract prices. When aggregating multiple
contracts, the weighted average contract price is disclosed.
C…
O…
(…
$…
Q4 Q1 … Q3 …
2… 2… … 2… …
…
…
- 1… … 1… — —
…
…
…
…
… $… … $… — —
…
…
…
… $… … $… — —
…
…
…
-
… 7… … 6… … 1…
…
…
…
…
… $… … $… … $…
…
…
…
… $… … $… … $…
…
…
…
- 1… … 1… … 4…
…
…
…
… $… … $… … $…
…
…
…
… $… … $… … $…
…
…
…
- 8… … 4… … 3…
…
…
$… $… $… … $…
…
/
… 2… — — — —
…
…
… $… — — — —
…
…
… $… — — — —
…
…
… 1… — — — —
-
…
$… — — — —
Natu…
Gas
(Mmb…
$/Mm…
Q4 FY FY
2026 2027 2028
Cos…
Col…
- 840,… 720… 130,…
Hen…
Hub
Flo…
Pri… $2.87 $2.… $2.65
($/…
Cei…
Pri… $6.35 $6.… $5.88
($/…
Nat…
Gas
Bas…
Swa… 650,… 370… 60,0…
-
Waha
Hub
$-1.… $-1… $-1.…
Nat…
Gas
Bas…
Swa… 100,… 300… 150,…
-
Hou…
Ship
Cha…
$-0.… $-0… $-0.…
Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com