DIAMONDBACK ENERGY, INC. ANNOUNCES THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS; INCREASES BASE DIVIDEND
Diamondback Energy, Inc. (FANG) filed an SEC Form 8-K — Results of Operations and Financial Condition. 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 operati
How this was made
The 30-second read
Why it matters
The raised production and capex guidance suggest improved earnings outlook, likely supporting the stock.
Market read
The guidance lift is material for investors and may drive short‑term price appreciation.
What to watch
Capital expenditures could pressure free cash flow if projects overrun
Diamondback Energy, Inc. Announces Third Quarter 2026 Financial and Operating Results; Increases Base Dividend
Third-quarter net income attributable to Diamondback Energy, Inc. was $1,603 million, net cash provided by operating activities was $2,599 million, and Free Cash Flow was $2,148 million. The Company increased its annual base dividend by 7.3% to $4.72 per share, repurchased approximately $251 million of common stock, and raised full-year oil and total production guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $5.43B | – | – |
| Q3 2026 oil, natural gas and natural gas liquid salesGAAP | $4.85B | – | – |
| Q3 2026 sales of purchased oilGAAP | $536M | – | – |
| Q3 2026 other operating incomeGAAP | $41M | – | – |
| Q3 2026 lease operating expensesGAAP | $568M | – | – |
| Q3 2026 production and ad valorem taxesGAAP | $287M | – | – |
| Q3 2026 gathering, processing and transportationGAAP | $126M | – | – |
| Q3 2026 purchased oil expenseGAAP | $540M | – | – |
| Q3 2026 depreciation, depletion, amortization and accretionGAAP | $1.32B | – | – |
| Q3 2026 general and administrative expensesGAAP | $83M | – | – |
| Q3 2026 other operating expenses, netGAAP | $7M | – | – |
| Q3 2026 total costs and expensesGAAP | $2.93B | – | – |
| Q3 2026 income from operationsGAAP | $2.5B | – | – |
| Q3 2026 interest expense, netGAAP | −$55M | – | – |
| Q3 2026 gain (loss) on derivative instruments, netGAAP | −$182M | – | – |
| Q3 2026 income before income taxesGAAP | $2.27B | – | – |
| Q3 2026 provision for income taxesGAAP | $501M | – | – |
| Q3 2026 net incomeGAAP | $1.77B | – | – |
| Q3 2026 net income attributable to Diamondback Energy, Inc.GAAP | $1.60B | – | – |
| Q3 2026 diluted earnings per common share attributable to Diamondback Energy, Inc.GAAP | $ 5.69 | – | – |
| Q3 2026 adjusted net income attributable to Diamondback Energy, Inc.non-GAAP | $1.65B | – | – |
| Q3 2026 adjusted net income per common share - dilutednon-GAAP | $ 5.86 | – | – |
| Q3 2026 consolidated Adjusted EBITDAnon-GAAP | $3.75B | – | – |
| Q3 2026 Adjusted EBITDA attributable to Diamondback Energy, Inc.non-GAAP | $3.39B | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $2.60B | – | – |
| Q3 2026 operating cash flow before working capital changesnon-GAAP | $3.17B | – | – |
| Q3 2026 total Cash CAPEXother | $1.03B | – | – |
| Q3 2026 Free Cash Flownon-GAAP | $2.15B | – | – |
| Q3 2026 Adjusted Free Cash Flownon-GAAP | $2.15B | – | – |
| Q3 2026 daily oil volumesother | 524,946 BO/d | – | – |
| Q3 2026 daily combined volumesother | 1,033,967 BOE/d | – | – |
| Q3 2026 combined volumesother | 95,125 MBOE | – | – |
| Q3 2026 oil priceother | $ 87.30 per Bbl | – | – |
| Q3 2026 natural gas priceother | $ 1.12 per Mcf | – | – |
| Q3 2026 natural gas liquids priceother | $ 20.02 per Bbl | – | – |
| Q3 2026 combined priceother | $ 51.03 per BOE | – | – |
| Q3 2026 combined price, hedgedother | $ 50.01 per BOE | – | – |
| Q3 2026 total operating expense - cashother | $ 10.91 per BOE | – | – |
| Q3 2026 lease operating expenses per BOEother | $ 5.97 per BOE | – | – |
| Q3 2026 depreciation, depletion, amortization and accretion per BOEother | $ 13.88 per BOE | – | – |
| Nine months ended September 30, 2026 total revenuesGAAP | $15.23B | – | – |
| Nine months ended September 30, 2026 net income attributable to Diamondback Energy, Inc.GAAP | $3.51B | – | – |
| Nine months ended September 30, 2026 diluted earnings per common shareGAAP | $ 12.41 | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $8.02B | – | – |
| Nine months ended September 30, 2026 total Cash CAPEXother | $2.96B | – | – |
| Nine months ended September 30, 2026 Free Cash Flownon-GAAP | $6.18B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
2026 and Q4 2026 outlook
- Tax rateCorporate tax rate (% of pre-tax income) 23%; Cash tax rate (% of pre-tax income) 19% - 22%; Q4 2026 Cash taxes $500 - $560 million
- Note2026 Net production - MBOE/d: ~1,015 (from 1,000+)
- Note2026 Oil production - MBO/d: ~524 (from 522+)
- NoteQ4 2026 Oil production - MBO/d (total - MBOE/d): 518 - 528 (1,025 - 1,045)
- NoteLease operating expenses, including workovers: $5.95 - $6.20 per BOE (from $5.90 - $6.40)
- NoteCash G&A: $0.55 - $0.65 per BOE
- NoteNon-cash equity-based compensation: $0.20 - $0.30 per BOE
- NoteDD&A: $13.50 - $14.50 per BOE
- NoteInterest expense (net of interest income): $0.50 - $0.70 per BOE
- NoteGathering, processing and transportation: $1.30 - $1.50 per BOE (from $1.40 - $1.60)
- NoteProduction and ad valorem taxes (% of revenue): ~6.5% (from ~7%)
- NoteOperated drilling and completion: $3,350 - $3,400 million (from ~$3,310 million)
- Note2026 Total capital expenditures: $3,950 - $4,000 million (from ~$3,900 million)
- NoteQ4 2026 Capital expenditures: $1,000 - $1,050 million
- NoteAverage lateral length: ~12,900'
- NoteNet lateral footage completed: 6,200' - 6,600' (from 6,100' - 6,500')
Capital returns
- The Board approved a 7.3% increase to the base cash dividend, raising it to $1.18 per common share for the third quarter of 2026.
- The annual base dividend was increased to $4.72 per share, an 18% year over year increase.
- The dividend is payable on November 19, 2026, to stockholders of record at the close of business on November 12, 2026.
- During Q3 2026, Diamondback 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.
- Q4 2026 to date, Diamondback repurchased 390 thousand shares for $73 million at a weighted average repurchase price of $186.69.
- Cumulative shares repurchased were 44,183 thousand, cumulative total repurchase cost was $6,348 million, and cumulative weighted average repurchase price was $143.66.
- Q3 2026 total return of capital was $582 million.
What drove it
- Daily oil volumes were 524,946 BO/d and daily combined volumes were 1,033,967 BOE/d in Q3 2026.
- Q3 2026 oil price was $ 87.30 per Bbl, natural gas price was $ 1.12 per Mcf, natural gas liquids price was $ 20.02 per Bbl, and combined price was $ 51.03 per BOE.
- Q3 2026 production was 48,295 MBbls of oil, 135,002 MMcf of natural gas, and 24,330 MBbls of natural gas liquids.
- The Company drilled 105 gross and 100 net wells and completed 135 gross and 133 net wells during Q3 2026.
- Diamondback acquired a 7.5% equity interest in the Solitude Pipeline System, a Permian-to-Katy natural gas pipeline.
Concerns
- Q3 2026 gain (loss) on derivative instruments, net was $ (182) million, compared with $ 120 million in Q3 2025.
- Lease operating expenses were $ 5.97 per BOE in Q3 2026, compared with $ 5.65 per BOE in Q3 2025.
- Production and ad valorem taxes were $ 3.02 per BOE in Q3 2026, compared with $ 2.44 per BOE in Q3 2025.
- Nine-month impairment of oil and natural gas properties was $ 1,400 million.
- Consolidated total debt was $ 13,375 million at September 30, 2026.
What to watch
- Delivery against Q4 2026 oil production guidance of 518 - 528 MBO/d and total production guidance of 1,025 - 1,045 MBOE/d.
- Delivery against Q4 2026 capital expenditure guidance of $1,000 - $1,050 million.
- Execution against 2026 oil production guidance of ~524 MBO/d and total production guidance of ~1,015 MBOE/d.
- Realized oil, natural gas and natural gas liquids prices, including the effect of outstanding derivative contracts.
- Future opportunistic share repurchases, which the Company expects to fund with cash on hand, free cash flow and potential asset sale proceeds.
- The Company's debt reduction activity following the October 1 redemption of the 2026 Senior Notes.
Balance sheet and cash flow
- Cash and cash equivalents were $ 558 million at September 30, 2026.
- Standalone cash was $ 548 million, remaining availability under the credit facility was $ 3,000 million, and total standalone liquidity was $ 3,548 million.
- Consolidated total debt was $ 13,375 million and consolidated total net debt was $ 12,817 million at September 30, 2026.
- Total debt was $ 13,375 million at September 30, 2026, compared with $ 16,432 million at September 30, 2025.
- Net debt was $ 12,817 million at September 30, 2026, compared with $ 15,893 million at September 30, 2025.
- Total assets were $ 72,110 million and total liabilities were $ 26,977 million at September 30, 2026.
- Net cash used in investing activities was $ (2,310) million in Q3 2026, including $ (1,026) million of additions to oil and natural gas properties and $ (1,157) million of property acquisitions.
- Net cash used in financing activities was $ (193) million in Q3 2026.
- On October 1, 2026, the Company redeemed all $698 million in aggregate principal amount of its 2026 Senior Notes at par.
- During Q3 2026, the Company repurchased $106 million in aggregate principal amount of 2054 and 2064 Senior Notes at a weighted average price of 94.9% of par, or $103 million including accrued interest.
Analysis
Diamondback reported Q3 2026 total revenues of $ 5,431 million, including $ 4,854 million of oil, natural gas and natural gas liquid sales, compared with $ 3,924 million and $ 3,447 million, respectively, in Q3 2025. Income from operations was $ 2,500 million, net income attributable to Diamondback Energy, Inc. was $ 1,603 million, and diluted earnings per common share were $ 5.69. Adjusted net income attributable to Diamondback Energy, Inc. was $ 1,649 million, or $ 5.86 per diluted share.
Production remained high, with daily oil volumes of 524,946 BO/d and daily combined volumes of 1,033,967 BOE/d. Oil volumes were close to the 525,176 BO/d reported for June 30, 2026, while daily combined volumes were above the 1,017,659 BOE/d reported for June 30, 2026. Realized oil pricing was $ 87.30 per Bbl, below $ 96.82 per Bbl in the prior quarter but above $ 64.60 per Bbl in Q3 2025. The combined price was $ 51.03 per BOE, while the hedged combined price was $ 50.01 per BOE.
Cash generation was substantial. Net cash provided by operating activities was $ 2,599 million and operating cash flow before working capital changes was $ 3,174 million. Total Cash CAPEX was $ 1,026 million, producing Free Cash Flow of $ 2,148 million and Adjusted Free Cash Flow of $ 2,150 million. The Company also reported $ 3,752 million of consolidated Adjusted EBITDA. Q3 total operating expense, cash was $ 10.91 per BOE, compared with $ 10.96 per BOE in the prior quarter and $ 10.05 per BOE in Q3 2025.
Capital allocation combined shareholder returns with debt reduction. Diamondback increased its quarterly base dividend to $1.18 per common share and repurchased 1,348,209 shares for approximately $251 million. Consolidated total debt was $ 13,375 million and consolidated total net debt was $ 12,817 million at September 30, 2026. Subsequent to quarter-end, the Company redeemed all $698 million aggregate principal amount of its 2026 Senior Notes at par and reported additional common-share and senior-note repurchases.
The updated outlook raises 2026 net production guidance to ~1,015 MBOE/d from 1,000+ and oil production guidance to ~524 MBO/d from 522+. The Company set Q4 oil production guidance at 518 - 528 MBO/d, with total production of 1,025 - 1,045 MBOE/d, and guided Q4 capital expenditures to $1,000 - $1,050 million. Full-year 2026 total capital expenditure guidance increased to $3,950 - $4,000 million from ~$3,900 million. The release also lowered production and ad valorem tax guidance to ~6.5% of revenue from ~7% and narrowed gathering, processing and transportation guidance to $1.30 - $1.50 per BOE from $1.40 - $1.60 per BOE.
Not in the filing
stated, not guessed- Prior-quarter total revenue was not reported.
- Prior-quarter GAAP operating income was not reported.
- Prior-quarter GAAP net income attributable to Diamondback Energy, Inc. was not reported.
- Prior-quarter GAAP diluted earnings per common share was not reported.
- Prior-year and prior-quarter adjusted net income and adjusted diluted earnings per share were not reported.
- Prior-year and prior-quarter Adjusted EBITDA were not reported.
- Prior-year Free Cash Flow and Adjusted Free Cash Flow were not reported.
- Gross profit and gross margin were not reported.
- Formal revenue guidance was not reported.
- A previous-release outlook section was not provided for comparison with actual results.
- Named executive commentary and attributable executive quotes were not provided.
AlphAI 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
Diamondback Energy filed a Form 8‑K reporting Q3 2026 results and updated guidance.
Ticker impact
raised guidance
likely upside as the market prices in higher production and cash flow expectations
The updated guidance signals stronger future earnings and cash generation, prompting investors to bid the stock higher.
Market effects
oil and gas sector may see a lift from higher production outlook
U.S. energy stocks could benefit from the guidance upgrade
potentially supports global oil price sentiment
Counterpoint
Higher guidance may be offset by rising input costs or execution risk
Key entities
- companyDiamondback Energy, Inc.
U.S. oil and gas producer
