$FANG earnings report

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.

This Item 2.02 filing is a limited third quarter 2026 update rather than a full earnings release. It reports realized commodity prices, derivative activity and weighted average basic and diluted shares outstanding for the quarter ended September 30, 2026. Consolidated revenue, production volumes, operating costs, earnings and cash flow are not reported.

Average unhedged realized prices were $87.30 per barrel of oil, $1.12 per Mcf of natural gas and $20.02 per barrel of natural gas liquids. Average realized hedged prices were $85.89 per barrel of oil, $0.90 per Mcf of natural gas and $20.02 per barrel of natural gas liquids. The filing states that hedged prices incorporate cash settlements for matured commodity derivatives but exclude gains or losses from early derivative settlements.

Derivative activity is the principal financial item disclosed. Diamondback anticipates a net loss on cash settlements for derivative instruments of $97 million and a net non-cash loss on derivative instruments of $85 million. The derivative table reports a $ (182) gain (loss) on commodity contracts, net, and $ (97) net cash received (paid) on commodity-contract settlements.

Basic and diluted weighted average shares outstanding were both 279,959, in thousands, for the third quarter of 2026. The matching basic and diluted figures provide the share counts relevant to future per-share reporting, but the filing does not provide net income, diluted EPS or any non-GAAP earnings measure. There is also no capital allocation update, balance sheet data or forward guidance in the document.

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.