Diamondback Energy, Inc. (FANG): Results of Operations and Financial Condition
Diamondback Energy, Inc. (FANG) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 DIAMONDBACK ENERGY, INC. ANNOUNCES SECOND QUARTER 2026 FINANCIAL AND OPERATING RESULTS Midland, TX (August 3, 2026) - Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback,” “we,” “our” or the “Company”) today announced financial and operating results for the second
How this was made
The 30-second read
Why it matters
Key tradable inputs are the raised full-year production guidance, Q3 2026 oil and BOE ranges, and capital return updates (dividend plus doubled repurchase authorization). These can drive revisions to cash-flow and valuation assumptions for the next quarter.
Market read
Guidance and capital return changes are likely to be the primary drivers for near-term positioning, with realized pricing and hedging remaining the main uncertainty.
What to watch
The filing emphasizes non-GAAP free cash flow and adjusted metrics; traders may focus on realized pricing, hedging effects, and the sustainability of capex levels versus debt reduction pace.
Diamondback reported second-quarter production of 1,018 MBOE/d, $ 1,882 million of net income attributable to Diamondback Energy, Inc., $ 2,330 million of Free Cash Flow, and raised 2026 oil and total production guidance while maintaining total capital expenditures of ~$3,900 million.
The filing reported production above 1.0 million BOE/d, substantial operating cash flow and free cash flow, lower quarter-over-quarter total and net debt, increased full-year production guidance, and unchanged full-year cash capital expenditures.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Average oil productionother | 525 MBO/d | – | – |
| Total productionother | 1,018 MBOE/d | – | – |
| Net income attributable to Diamondback Energy, Inc.GAAP | $ 1,882 (in millions) | – | – |
| Earnings per common share attributable to Diamondback Energy, Inc. - DilutedGAAP | $ 6.65 | – | – |
| Adjusted net incomenon-GAAP | $ 1,833 (in millions) | – | – |
| Adjusted net income per common share - Dilutednon-GAAP | $ 6.48 | – | – |
| Consolidated Adjusted EBITDAnon-GAAP | $ 3,940 (in millions) | – | – |
| Adjusted EBITDA attributable to Diamondback Energy, Inc.non-GAAP | $ 3,549 (in millions) | – | – |
| Net cash provided by operating activitiesGAAP | $ 3,589 (in millions) | – | – |
| Operating Cash Flow Before Working Capital Changesnon-GAAP | $3.3 billion | – | – |
| Free Cash Flownon-GAAP | $ 2,330 (in millions) | – | – |
| Adjusted Free Cash Flownon-GAAP | $ 2,331 (in millions) | – | – |
| Cash capital expendituresother | $ 996 (in millions) | – | – |
| Operated drilling and completion additions to oil and natural gas propertiesother | $ 842 (in millions) | – | – |
| Non-operated additions to oil and natural gas properties and otherother | $ 154 (in millions) | – | – |
| Six months net income attributable to Diamondback Energy, Inc.GAAP | $ 1,907 (in millions) | – | – |
| Six months Consolidated Adjusted EBITDAnon-GAAP | $ 6,941 (in millions) | – | – |
| Six months Adjusted EBITDA attributable to Diamondback Energy, Inc.non-GAAP | $ 6,253 (in millions) | – | – |
| Six months net cash provided by operating activitiesGAAP | $ 5,417 (in millions) | – | – |
| Six months Free Cash Flownon-GAAP | $ 4,035 (in millions) | – | – |
| Six months Adjusted Free Cash Flownon-GAAP | $ 4,068 (in millions) | – | – |
| Six months cash capital expendituresother | $ 1,929 (in millions) | – | – |
| Six months operated drilling and completion additions to oil and natural gas propertiesother | $ 1,626 (in millions) | – | – |
| Six months non-operated additions to oil and natural gas properties and otherother | $ 303 (in millions) | – | – |
| Realized oil priceother | $ 96.82 per Bbl | – | – |
| Realized natural gas priceother | $ (2.15) per Mcf | – | – |
| Realized natural gas liquids priceother | $ 18.56 per Bbl | – | – |
| Realized combined priceother | $ 51.68 per BOE | – | – |
| Hedged oil priceother | $ 94.33 per Bbl | – | – |
| Hedged natural gas priceother | $ (0.34) per Mcf | – | – |
| Hedged natural gas liquids priceother | $ 18.56 per Bbl | – | – |
| Hedged average priceother | $ 52.90 per BOE | – | – |
| Lease operating expensesother | $ 5.96 per BOE | – | – |
| Production and ad valorem taxesother | 3.26 per BOE | – | – |
| Gathering, processing and transportation expenseother | 1.22 per BOE | – | – |
| General and administrative - cash componentother | 0.52 per BOE | – | – |
| Total operating expense - cashother | $ 10.96 per BOE | – | – |
| Average completed lateral lengthother | 11,983 feet | – | – |
2026 guidance, including third quarter production and capital guidance outlook
- Tax rateCorporate tax rate (% of pre-tax income): 23%
- Note2026 Net production - MBOE/d: 1,000+ ( from 972+)
- Note2026 Oil production - MBO/d: 522+ (from 520+)
- NoteQ3 2026 Oil production - MBO/d (total - MBOE/d): 517 - 527 (995 - 1,015)
- NoteLease operating expenses, including workovers: $5.90 - $6.40 per BOE
- NoteCash G&A: $0.55 - $0.65 per BOE (from $0.55 - $0.70)
- NoteNon-cash equity-based compensation: $0.20 - $0.30 per BOE
- NoteDD&A: $13.50 - $14.50 per BOE (from $14.00 - $15.00)
- NoteInterest expense (net of interest income): $0.50 - $0.70 per BOE
- NoteGathering, processing and transportation: $1.40 - $1.60 per BOE (from $1.50 - $1.70)
- NoteProduction and ad valorem taxes (% of revenue): ~7%
- NoteCash tax rate (% of pre-tax income): 19% - 22% (from 18% - 21%)
- NoteQ3 2026 Cash taxes: $400 - $460 million
- NoteOperated drilling and completion: ~$3,310 million
- Note2026 Total capital expenditures: ~$3,900 million
- NoteQ3 2026 Capital expenditures: $950 - $1,050 million
- NoteAverage lateral length: ~12,900'
- NoteNet lateral footage completed: 6,100' - 6,500'
Capital returns
- Declared base cash dividend of $1.10 per common share for the second quarter of 2026, payable on August 20, 2026, to stockholders of record at the close of business on August 13, 2026.
- Repurchased 756,385 shares of common stock for approximately $141 million during the second quarter at a weighted average price of $186.63 per share (excluding excise tax).
- Repurchased 547,716 shares of common stock in Q3 2026 to date for approximately $100 million.
- The Board doubled the share repurchase authorization to $16.0 billion from $8.0 billion previously, excluding excise tax, with approximately $9.9 billion remaining as of July 31, 2026.
- Cumulative shares repurchased were 42,992 shares in thousands, with total repurchase cost of $ 6,124 million and weighted average repurchase price of $ 142.44.
- Total return of capital was $ 452 million.
What drove it
- Production of 1,018 MBOE/d surpassed the 1.0 million barrels of oil equivalent per day milestone.
- Second-quarter activity included 97 gross wells drilled and 168 gross wells completed, or 89 net wells drilled and 157 net wells completed.
- The Midland Basin completed-well count included 31 Jo Mill, 31 Lower Spraberry, 38 Wolfcamp A, and 41 Wolfcamp B wells.
- Realized oil price was $ 96.82 per Bbl and realized combined price was $ 51.68 per BOE.
- Total operating expense - cash was $ 10.96 per BOE, compared with $ 11.26 per BOE for March 31, 2026.
- Full-year production guidance increased to 522+ MBO/d of oil production and 1,000+ MBOE/d of net production while 2026 total capital expenditures remained ~$3,900 million.
Concerns
- Realized natural gas price was $ (2.15) per Mcf and hedged natural gas price was $ (0.34) per Mcf.
- Lease operating expenses were $ 5.96 per BOE, compared with $ 5.26 per BOE for June 30, 2025.
- Production and ad valorem taxes were 3.26 per BOE, compared with 2.56 per BOE for June 30, 2025.
- The filing did not provide total revenue, operating income, gross margin, or a GAAP income statement beyond the reported earnings metrics.
What to watch
- Q3 2026 oil production guidance of 517 - 527 MBO/d and total production guidance of 995 - 1,015 MBOE/d.
- Q3 2026 cash capital expenditures guidance of $950 - $1,050 million.
- Delivery of 2026 net production guidance of 1,000+ MBOE/d and oil production guidance of 522+ MBO/d.
- 2026 unit-cost targets, including lease operating expenses of $5.90 - $6.40 per BOE and cash G&A of $0.55 - $0.65 per BOE.
- Cash tax payments of $400 - $460 million in Q3 2026.
- Further repurchases under the $16.0 billion authorization, of which approximately $9.9 billion remained available as of July 31, 2026.
Balance sheet and cash flow
- Standalone cash was $ 385 million as of June 30, 2026.
- Borrowings outstanding under the credit facility were $ — million as of June 30, 2026.
- Remaining availability under the credit facility was $ 3,000 million, and total standalone liquidity was $ 3,385 million, as of June 30, 2026.
- Consolidated total debt was $ 12,766 million and consolidated total net debt was $ 12,304 million as of June 30, 2026.
- The company stated that total debt was reduced by ~$1.3 billion quarter over quarter to $12.8 billion and net debt was reduced by ~$1.6 billion quarter over quarter to $12.3 billion.
- On June 12, 2026, the credit agreement amendment increased total commitments from $2.5 billion to $3.0 billion, extended the maturity date from June 12, 2030 to June 12, 2031, and reduced applicable interest rates and certain fees.
Analysis
Diamondback reported a high-volume second quarter, with average oil production of 525 MBO/d and total production of 1,018 MBOE/d. The company described total production as surpassing the 1.0 million barrels of oil equivalent per day milestone. Operational activity was substantial, with 97 gross wells drilled and 168 gross wells completed during the quarter, alongside an average completed lateral length of 11,983 feet.
Cash generation was a central feature of the filing. Net cash provided by operating activities was $ 3,589 million, Free Cash Flow was $ 2,330 million, and Adjusted Free Cash Flow was $ 2,331 million. Cash capital expenditures were $ 996 million, compared with $ 864 million in the prior-year quarter. Net income attributable to Diamondback Energy, Inc. was $ 1,882 million, or $ 6.65 per diluted common share, while adjusted net income was $ 1,833 million, or $ 6.48 per diluted common share.
Commodity realizations and cash operating costs show an uneven cost and pricing backdrop. Realized oil price increased to $ 96.82 per Bbl from $ 73.47 per Bbl for March 31, 2026, while the realized combined price increased to $ 51.68 per BOE from $ 43.40 per BOE. In contrast, realized natural gas price was $ (2.15) per Mcf. Total operating expense - cash declined to $ 10.96 per BOE from $ 11.26 per BOE for March 31, 2026, although lease operating expenses and production and ad valorem taxes were higher than the respective June 30, 2025 figures shown in the filing.
Capital allocation combined debt reduction with shareholder returns. Consolidated total debt was $ 12,766 million and consolidated total net debt was $ 12,304 million as of June 30, 2026. The company reported quarter-over-quarter reductions of ~$1.3 billion in total debt and ~$1.6 billion in net debt. Diamondback repurchased 756,385 shares for approximately $141 million in the second quarter, declared a $1.10 per-share base cash dividend, and doubled its repurchase authorization to $16.0 billion.
The updated outlook raises the full-year production targets to 522+ MBO/d of oil and 1,000+ MBOE/d of net production while retaining 2026 total capital expenditures of ~$3,900 million. Third-quarter guidance calls for 517 - 527 MBO/d of oil production, 995 - 1,015 MBOE/d of total production, and $950 - $1,050 million of capital expenditures. The filing also narrowed or lowered several unit-cost guidance ranges, including cash G&A, DD&A, and gathering, processing and transportation expense.
Not in the filing
stated, not guessed- Total revenue and revenue comparisons
- Revenue by reportable segment
- Gross profit and gross margin
- GAAP operating income or loss and operating margin
- GAAP income tax expense and effective tax rate for the reported quarter
- GAAP net cash provided by operating activities comparison with prior-year or prior-quarter period
- GAAP diluted weighted average common shares outstanding
- Prior-year and prior-quarter comparisons for net income, EPS, adjusted net income, adjusted EPS, Adjusted EBITDA, Free Cash Flow, and Adjusted Free Cash Flow
- Operating cash flow before working capital changes reconciliation and comparative periods
- Prior outlook section from the previous earnings release, preventing a vs_prior_guidance comparison
- Named executive commentary or named executive quotes
- Detailed segment reporting
- Detailed income statement and statement of cash flows beyond the metrics included in the supplied filing text
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Diamondback Energy’s SEC Form 8-K (Item 2.02) with Exhibit 99.1 announcing Q2 2026 financial and operating results and updated 2026 guidance.
Ticker impact
Diamondback reports Q2 2026 results and raises full-year oil and total BOE production guidance, alongside $996M cash capex and $2.3B free cash flow.
Likely positive bias for the next trading session as guidance and buyback authorization expand, though oil price sensitivity remains a key swing factor.
The newest decision-relevant facts are the updated 2026 production guidance (oil 522+ MBO/d, total BOE 1,000+ MBOE/d), Q3 guidance ranges, and the July doubling of repurchase authorization to $16.0B with remaining $9.9B.
Market effects
Reinforces Permian-focused E&P cash-flow durability via high operating cash flow, free cash flow, and continued buybacks, supporting sentiment for similar operators.
Supports Midland Basin production outlook through raised oil and BOE guidance and ongoing drilling/completions cadence.
Limited direct global linkage beyond incremental confidence in US shale supply growth and capital return capacity.
Counterpoint
Higher production guidance can increase exposure to commodity price downside if realized prices weaken faster than costs and hedges offset.
Key entities
- public_companyDiamondback Energy, Inc.
Reports Q2 2026 results, updates 2026 and Q3 production guidance, declares a $1.10/share dividend, and doubles its repurchase authorization to $16.0B.
- governanceBoard of Directors
Doubled the share repurchase authorization to $16.0B in July and declared the base cash dividend payable Aug 20, 2026.
