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 quarter ended June 30, 2026.
SECOND QUARTER 2026 HIGHLIGHTS
•Average oil production of 525 MBO/d
•Production of 1,018 MBOE/d, surpassing the 1.0 million barrels of oil equivalent per day milestone
•Net cash provided by operating activities of $3.6 billion; Operating Cash Flow Before Working Capital Changes1 of $3.3 billion
•Cash capital expenditures of $996 million
•Free Cash Flow1 and Adjusted Free Cash Flow1 of $2.3 billion
•Repurchased 756,385 shares of common stock for approximately $141 million
•Declared base cash dividend of $1.10 per share2
•Reduced total debt by ~$1.3 billion quarter over quarter to $12.8 billion and net debt1 by ~$1.6 billion quarter over quarter to $12.3 billion
UPDATED 2026 GUIDANCE HIGHLIGHTS
•Increasing annual oil production guidance to 522+ (from 520+) MBO/d and total BOE production to 1,000+ (from 972+) MBOE/d with full year cash capital expenditures unchanged at ~$3.9 billion
•Q3 2026 oil production guidance of 517 - 527 MBO/d (995 - 1,015 MBOE/d)
•Q3 2026 cash capital expenditures guidance of $950 - $1,050 million
RECENT HIGHLIGHTS
•Repurchased 547,716 shares of common stock in Q3 2026 (to date) for approximately $100 million
•In July, the Board of Directors (the “Board”) doubled the Company's share repurchase authorization to $16.0 billion from $8.0 billion previously. Approximately $9.9 billion remains available for future repurchases under the program
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 Implies a 2.2% annualized yield. Cash dividend payable on August 20, 2026; annualized yield based on July 31, 2026 closing share price of $202.95.
SECOND QUARTER 2026 OPERATIONS UPDATE
The following tables provide a summary of Diamondback’s key operational updates:
Wells Drilled and Completed:
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
Drilled
Completed
Drilled
Completed
Gross
Net
Gross
Net
Gross
Net
Gross
Net
Total
97
89
168
157
215
200
315
294
Gross Wells Drilled and Completed By Zone:
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
Number of Wells Drilled
Number of Wells Completed
Number of Wells Drilled
Number of Wells Completed
Midland Basin:
Upper Spraberry
2
1
3
3
Middle Spraberry
6
13
13
20
Jo Mill
22
31
38
62
Lower Spraberry
16
31
40
63
Dean
1
5
2
11
Wolfcamp A
20
38
46
69
Wolfcamp B
16
41
45
71
Wolfcamp D
7
7
18
15
Barnett
7
1
10
1
Midland Basin Total
97
168
215
315
Average Completed Lateral Length (in feet)
11,983
11,679
Realized Average Prices:
Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
Oil ($ per Bbl)
$
96.82
$
73.47
$
63.23
Natural gas ($ per Mcf)
$
(2.15)
$
0.18
$
0.88
Natural gas liquids ($ per Bbl)
$
18.56
$
16.68
$
18.13
Combined ($ per BOE)
$
51.68
$
43.40
$
39.61
Oil, hedged ($ per Bbl)(1)
$
94.33
$
72.53
$
62.34
Natural gas, hedged ($ per Mcf)(1)
$
(0.34)
$
1.90
$
1.45
Natural gas liquids, hedged ($ per Bbl)(1)
$
18.56
$
16.68
$
18.13
Average price, hedged ($ per BOE)(1)
$
52.90
$
45.21
$
39.89
(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
June 30, 2026
March 31, 2026
June 30, 2025
Lease operating expenses
$
5.96
$
6.21
$
5.26
Production and ad valorem taxes
3.26
3.04
2.56
Gathering, processing and transportation expense
1.22
1.36
1.73
General and administrative - cash component
0.52
0.65
0.55
Total operating expense - cash
$
10.96
$
11.26
$
10.10
FINANCIAL UPDATE
Earnings Attributable to Diamondback Energy, Inc.:
Three Months Ended June 30, 2026
(in millions, except per share amounts)
Net income (loss) attributable to Diamondback Energy, Inc.
$
1,882
Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted(1)
$
6.65
Adjusted net income(1)
$
1,833
Adjusted net income per common share - Diluted(1)
$
6.48
(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 $11 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 June 30,
Six Months Ended June 30,
2026
2025
2026
2025
(in millions)
Operated drilling and completion additions to oil and natural gas properties
$
842
$
707
$
1,626
$
1,571
Non-operated additions to oil and natural gas properties and other
154
157
303
235
Total
$
996
$
864
$
1,929
$
1,806
Adjusted EBITDA and Free Cash Flow - Non-GAAP:
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
(in millions)
Net income (loss) attributable to Diamondback Energy, Inc.
$
1,882
$
1,907
Consolidated Adjusted EBITDA
$
3,940
$
6,941
Adjusted EBITDA attributable to Diamondback Energy, Inc.
$
3,549
$
6,253
Net cash provided by operating activities
$
3,589
$
5,417
Free Cash Flow
$
2,330
$
4,035
Adjusted Free Cash Flow
$
2,331
$
4,068
Debt & Liquidity:
June 30, 2026
(in millions)
Standalone cash
$
385
Borrowings outstanding under the credit facility
$
—
Remaining availability under the credit facility(1)
$
3,000
Total standalone liquidity
$
3,385
Consolidated total debt
$
12,766
Consolidated total net debt
$
12,304
(1) On June 12, 2026, the Company, as parent guarantor, entered into an amendment to its credit agreement, which 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.
RETURN OF CAPITAL UPDATE
Diamondback announced today that the Board declared a 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.
Underscoring confidence in the Company's long-term outlook and commitment to shareholder returns, the Board of Directors on July 30, 2026 doubled Diamondback's share repurchase authorization to $16.0 billion (excluding excise tax), with approximately $9.9 billion remaining as of July 31, 2026. During the second quarter, the Company repurchased 756,385 shares of common stock for approximately $141 million at a weighted average price of $186.63 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.
Q2 2026
Q3 2026 to date
Cumulative
(in millions, except per share amounts, shares in thousands)
Base dividend
$
1.10
Shares repurchased
756
548
42,992
Weighted average repurchase price
$
186.63
$
182.32
$
142.44
Total repurchase cost
$
141
$
100
$
6,124
Total return of capital
$
452
UPDATED 2026 GUIDANCE
Below is Diamondback's and Viper Energy, Inc.'s (“Viper”) updated guidance for the full year 2026, which includes third quarter production and capital guidance.
2026 Guidance
2026 Guidance
Diamondback Energy, Inc.
Viper Energy, Inc.
2026 Net production - MBOE/d
1,000+ (from 972+)
132.5 - 135.0
2026 Oil production - MBO/d
522+ (from 520+)
66.0 - 67.25
Q3 2026 Oil production - MBO/d (total - MBOE/d)
517 - 527 (995 - 1,015)
67.5 - 68.5 (133.5 - 135.5)
Unit costs ($/BOE)
Lease operating expenses, including workovers
$5.90 - $6.40
G&A
Cash G&A
$0.55 - $0.65 (from $0.55 - $0.70)
$0.70 - $0.90
Non-cash equity-based compensation
$0.20 - $0.30
$0.10 - $0.20
DD&A
$13.50 - $14.50 (from $14.00 - $15.00)
$14.75 - $17.25
Interest expense (net of interest income)
$0.50 - $0.70
$1.90 - $2.40
Gathering, processing and transportation
$1.40 - $1.60 (from $1.50 - $1.70)
Production and ad valorem taxes (% of revenue)
~7%
~7%
Corporate tax rate (% of pre-tax income)
23%
Cash tax rate (% of pre-tax income)(1)
19% - 22% (from 18% - 21%)
27% - 30%
Q3 2026 Cash taxes ($ - million)
$400 - $460
Cash Capital Budget ($ - million)
Operated drilling and completion
~$3,310
2026 Total capital expenditures(2)
~$3,900
Q3 2026 Capital expenditures
$950 - $1,050
Average lateral length (Ft.)
~12,900'
Net lateral footage completed (1,000's of Ft.)
6,100' - 6,500'
(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 second quarter of 2026 on Tuesday, August 4, 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 Double Eagle acquisition, and the Sitio acquisition completed by Viper 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, curtailment delays 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 commitment, 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, the Double Eagle 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 Statements of Operations
(unaudited, $ in millions except per share data, shares in thousands)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Revenues:
Oil, natural gas and natural gas liquid sales
$
4,786
$
3,316
$
8,611
$
6,973
Sales of purchased oil
739
335
1,124
709
Other operating income
37
27
67
44
Total revenues
5,562
3,678
9,802
7,726
Costs and expenses:
Lease operating expenses
552
440
1,099
848
Production and ad valorem taxes
302
214
570
442
Gathering, processing and transportation
113
145
233
256
Purchased oil expense
730
331
1,123
713
Depreciation, depletion, amortization and accretion
1,272
1,266
2,565
2,363
Impairment of oil and natural gas properties
—
—
1,400
—
General and administrative expenses
72
67
151
140
Other operating expenses, net
9
76
33
152
Total costs and expenses
3,050
2,539
7,174
4,914
Income (loss) from operations
2,512
1,139
2,628
2,812
Other income (expense):
Interest expense, net
(56)
(56)
(119)
(96)
Other income (expense), net
(4)
2
3
37
Gain (loss) on derivative instruments, net
49
(197)
166
29
Gain (loss) on extinguishment of debt, net
134
55
133
55
Total other income (expense), net
123
(196)
183
25
Income (loss) before income taxes
2,635
943
2,811
2,837
Provision for (benefit from) income taxes
580
204
612
607
Net income (loss)
2,055
739
2,199
2,230
Net income (loss) attributable to non-controlling interest
173
40
292
126
Net income (loss) attributable to Diamondback Energy, Inc.
$
1,882
$
699
$
1,907
$
2,104
Earnings (loss) per common share:
Basic
$
6.65
$
2.38
$
6.72
$
7.20
Diluted
$
6.65
$
2.38
$
6.72
$
7.20
Weighted average common shares outstanding:
Basic
281,202
292,135
281,993
290,880
Diluted
281,202
292,135
281,993
290,880
Diamondback Energy, Inc.
Condensed Consolidated Balance Sheets
(unaudited, in millions, except share amounts)
June 30,
December 31,
2026
2025
Assets
Current assets:
Cash and cash equivalents ($77 million and $13 million related to Viper)
$
462
$
104
Restricted cash
2
2
Accounts receivable:
Joint interest and other, net
261
258
Oil and natural gas sales, net ($461 million and $262 million related to Viper)
1,669
1,128
Inventories
67
86
Prepaid expenses and other current assets
189
337
Total current assets
2,650
1,915
Property and equipment:
Oil and natural gas properties:
Proved properties ($9,608 million and $9,746 million related to Viper)
74,385
71,588
Unproved properties ($4,545 million and $4,910 million related to Viper)
23,193
23,941
Other property, equipment and land
899
874
Accumulated depletion, depreciation, amortization and impairment ($2,856 million and $2,455 million related to Viper)
(31,705)
(27,782)
Property and equipment, net
66,772
68,621
Other assets
796
523
Total assets
$
70,218
$
71,059
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable and accrued capital expenditures
1,264
1,168
Current maturities of debt
1,548
763
Other accrued liabilities
883
1,108
Revenues and royalties payable
1,717
1,397
Derivative instruments
36
15
Income taxes payable
230
149
Total current liabilities
5,678
4,600
Long-term debt ($1,678 million and $2,186 million related to Viper)
11,066
13,726
Deferred income taxes
8,933
9,141
Other long-term liabilities
556
625
Total liabilities
26,233
28,092
Stockholders’ equity:
Common stock, $0.01 par value; 800,000,000 shares authorized; 280,567,508 and 284,594,908 shares issued and outstanding at June 30, 2026, and December 31, 2025, respectively
3
3
Additional paid-in capital
31,866
32,236
Retained earnings (accumulated deficit)
6,038
4,740
Accumulated other comprehensive income (loss)
(7)
(7)
Total Diamondback Energy, Inc. stockholders’ equity
37,900
36,972
Non-controlling interest
6,085
5,995
Total equity
43,985
42,967
Total liabilities and stockholders’ equity
$
70,218
$
71,059
Diamondback Energy, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in millions)
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Cash flows from operating activities:
Net income (loss)
$
2,055
$
739
$
2,199
$
2,230
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (benefit from) deferred income taxes
36
(24)
(206)
(18)
Depreciation, depletion, amortization and accretion
1,272
1,266
2,565
2,363
Impairment of oil and natural gas properties
—
—
1,400
—
(Gain) loss on extinguishment of debt, net
(134)
(55)
(133)
(55)
(Gain) loss on derivative instruments, net
(49)
197
(166)
(29)
Cash received (paid) on settlement of derivative instruments
113
(37)
246
48
Other
33
20
59
54
Changes in operating assets and liabilities:
Accounts receivable
216
166
(563)
160
Accounts payable and accrued liabilities
53
(9)
(204)
(383)
Income taxes payable
(287)
(444)
—
(309)
Revenues and royalties payable
254
(114)
324
(30)
Other
27
(28)
(104)
1
Net cash provided by (used in) operating activities
3,589
1,677
5,417
4,032
Cash flows from investing activities:
Additions to oil and natural gas properties
(996)
(864)
(1,929)
(1,806)
Property acquisitions
(438)
(3,125)
(752)
(3,875)
Proceeds from sale of assets
53
16
657
57
Other
(14)
(6)
(29)
(8)
Net cash provided by (used in) investing activities
(1,395)
(3,979)
(2,053)
(5,632)
Cash flows from financing activities:
Proceeds from debt
3,765
5,145
6,290
8,622
Repayment of debt
(4,923)
(3,869)
(8,047)
(6,407)
Repurchased shares under repurchase program
(141)
(398)
(180)
(973)
Repurchased shares - related party
—
—
(509)
—
Repurchased shares/units under Viper’s repurchase program
(131)
(10)
(228)
(10)
Net proceeds from Viper’s issuance of common stock
—
—
—
1,232
Proceeds from sale of Viper's common stock
—
—
589
—
Dividends paid to stockholders
(310)
(291)
(605)
(581)
Dividends to non-controlling interest
(159)
(82)
(279)
(177)
Other
(7)
(13)
(37)
(49)
Net cash provided by (used in) financing activities
(1,906)
482
(3,006)
1,657
Net increase (decrease) in cash, cash equivalents and restricted cash
288
(1,820)
358
57
Cash, cash equivalents and restricted cash at beginning of period
176
2,041
106
164
Cash, cash equivalents and restricted cash at end of period
$
464
$
221
$
464
$
221
Diamondback Energy, Inc.
Selected Operating Data
(unaudited)
Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
Production Data:
Oil (MBbls)
47,791
46,889
45,108
Natural gas (MMcf)
128,279
118,402
110,119
Natural gas liquids (MBbls)
23,436
21,519
20,248
Combined volumes (MBOE)(1)
92,607
88,142
83,709
Daily oil volumes (BO/d)
525,176
520,989
495,692
Daily combined volumes (BOE/d)
1,017,659
979,356
919,879
Average Prices:
Oil ($ per Bbl)
$
96.82
$
73.47
$
63.23
Natural gas ($ per Mcf)
$
(2.15)
$
0.18
$
0.88
Natural gas liquids ($ per Bbl)
$
18.56
$
16.68
$
18.13
Combined ($ per BOE)
$
51.68
$
43.40
$
39.61
Oil, hedged ($ per Bbl)(2)
$
94.33
$
72.53
$
62.34
Natural gas, hedged ($ per Mcf)(2)
$
(0.34)
$
1.90
$
1.45
Natural gas liquids, hedged ($ per Bbl)(2)
$
18.56
$
16.68
$
18.13
Average price, hedged ($ per BOE)(2)
$
52.90
$
45.21
$
39.89
Average Cash Costs ($/BOE):
Lease operating expenses
$
5.96
$
6.21
$
5.26
Production and ad valorem taxes
3.26
3.04
2.56
Gathering, processing and transportation expense
1.22
1.36
1.73
General and administrative - cash component
0.52
0.65
0.55
Total operating expense - cash
$
10.96
$
11.26
$
10.10
General and administrative - non-cash component
$
0.26
$
0.25
$
0.25
Depreciation, depletion, amortization and accretion
$
13.74
$
14.67
$
15.12
Interest expense, net
$
0.60
$
0.71
$
0.67
(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
(unaudited, in millions)
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
Net income (loss) attributable to Diamondback Energy, Inc.
$
1,882
$
1,907
Net income (loss) attributable to non-controlling interest
173
292
Net income (loss)
2,055
2,199
Non-cash (gain) loss on derivative instruments, net
64
80
Interest expense, net
56
119
Depreciation, depletion, amortization and accretion
1,272
2,565
Depreciation and interest expense related to equity method investments
12
26
(Gain) loss on extinguishment of debt
(134)
(133)
Impairment of oil and natural gas properties
—
1,400
Non-cash equity-based compensation expense
33
64
Capitalized equity-based compensation expense
(9)
(18)
Other non-cash transactions
11
27
Provision for (benefit from) income taxes
580
612
Consolidated Adjusted EBITDA
3,940
6,941
Less: Adjustment for non-controlling interest
391
688
Adjusted EBITDA attributable to Diamondback Energy, Inc.
$
3,549
$
6,253
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, impairment of oil and natural gas properties, 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 share data, shares in thousands)
Three Months Ended
June 30, 2026
Amounts
Amounts Per Diluted Share
Net income (loss) attributable to Diamondback Energy, Inc.(1)
$
1,882
$
6.65
Net income (loss) attributable to non-controlling interest
173
0.62
Net income (loss)(1)
2,055
7.27
Non-cash (gain) loss on derivative instruments, net
64
0.23
(Gain) loss on extinguishment of debt
(134)
(0.48)
Other non-cash transactions
11
0.04
Adjusted net income excluding above items(1)
1,996
7.06
Income tax adjustment for above items
13
0.05
Adjusted net income(1)
2,009
7.11
Less: Adjusted net income attributable to non-controlling interest
176
0.63
Adjusted net income attributable to Diamondback Energy, Inc.(1)
$
1,833
$
6.48
Weighted average common shares outstanding:
Basic
281,202
Diluted
281,202
(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 $11 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
(unaudited, in millions)
Three Months Ended June 30, 2026
Six Months Ended June 30, 2026
Net cash provided by operating activities
$
3,589
$
5,417
Less: Changes in cash due to changes in operating assets and liabilities:
Accounts receivable
216
(563)
Accounts payable and accrued liabilities
53
(204)
Income taxes payable
(287)
—
Revenues and royalties payable
254
324
Other
27
(104)
Total working capital changes
263
(547)
Operating cash flow before working capital changes
3,326
5,964
Additions to oil and natural gas properties
(996)
(1,929)
Total Cash CAPEX
(996)
(1,929)
Free Cash Flow
2,330
4,035
Merger and transaction expenses(1)
1
6
Early termination of derivatives
—
27
Adjusted Free Cash Flow
$
2,331
$
4,068
(1)Includes $4 million of Viper's transaction expenses related to the Sitio Acquisition for the six months ended June 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.
Diamondback Energy, Inc.
Net Debt
(unaudited, in millions)
June 30, 2026
Net Q2 Principal Borrowings/(Repayments)
March 31, 2026
December 31, 2025
September 30, 2025
June 30, 2025
Diamondback Energy, Inc.(1)
$
11,071
$
(1,377)
$
12,448
$
12,462
$
13,792
$
14,212
Viper Energy, Inc.(1)
1,695
75
1,620
2,205
2,640
1,105
Total debt
12,766
$
(1,302)
14,068
14,667
16,432
15,317
Cash and cash equivalents
(462)
(174)
(104)
(539)
(219)
Net debt
$
12,304
$
13,894
$
14,563
$
15,893
$
15,098
(1)Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.
DERIVATIVES
As of July 31, 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, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.
