Írán pohrozil americkým energetickým aktivům v Perském zálivu a ropa WTI vystřelila nad 91,48 USD za barel. Trh už se přesouvá do ropných, rafinérských a tankerových titulů.
Iran's latest threat against US energy assets in the Gulf sent oil past $91 a barrel, and the money is already rotating into a handful of names before most investors notice the trade is live.
Iran told Reuters on September 7 that US energy assets in the Gulf are vulnerable after the latest round of clashes, and the market is already pricing the threat: WTI printed $91.48 per barrel on September 1, up 9.0% in a week. If Tehran follows through, the money is already moving into the five names below. Miss the rotation and you are buying the top.
1. Transocean (The Rig Shortage No One Is Pricing) Transocean (NYSE:RIG | RIG Price Prediction) is a rig lessor. It owns and leases the ultra-deepwater and harsh-environment floaters that operators need when Middle East supply gets unreliable and majors race to sanction non-OPEC barrels. CEO Keelan Adamson told investors that “supply disruptions around the world, continued growth in oil and gas capex, and strong demand for our rigs all reinforce our view that we are in a multi-year upcycle for offshore drilling.”
The Q2 2026 numbers back him up. Transocean carries a $7.1 billion backlog at an implied average dayrate above $450,000, added $3.1 billion in contracts year to date including the Equinor award, and posted 97.0% fleet-wide revenue efficiency. Management expects deepwater utilization to move well into the 90% range during 2027.
The stock has already begun to move: RIG is up 88.71% over the past year and 41.65% year to date through September 4. That is the setup nobody is watching. The heavyweight below is the one everybody already owns.
2. Diamondback Energy (The Permian Cash Machine) Diamondback Energy (NASDAQ:FANG) is the pure-play US shale barrel that gets repriced every time an Iranian drone flies. Its production sits in the Permian, not the Persian Gulf, and its CEO Kaes Van’t Hof has been the loudest voice on Wall Street framing the trade. On the Q2 call he said “the disruption of oil flows through the Strait of Hormuz has triggered the largest supply shock in the history of the global oil market” and told investors he believes the restocking required to rebuild global inventories has structurally raised the floor for oil prices.
Q2 2026 turned that thesis into cash. Diamondback booked adjusted EPS of $6.48 on $5.56 billion in revenue, beating estimates by 8.32% and 12.3%, with a realized oil price of $96.82 per barrel versus $63.23 a year earlier and free cash flow of $2.33 billion. The board doubled the buyback authorization to $16.0 billion, with $9.9 billion remaining.
Shares are up 34.77% year to date through September 4. Fine. Now ask who monetizes the barrel after Diamondback pumps it.
3. Marathon Petroleum (The Refiner Running Hot) Marathon Petroleum (NYSE:MPC) is the crack-spread trade. When Gulf tensions curtail foreign refinery runs and US fuel prices hit a record Labor Day high, according to the Associated Press, MPC captures the spread. Management said on the Q2 call that global refining downtime is running roughly 4 million barrels per day above historical norms, driven by Persian Gulf disruptions and Ukrainian strikes on Russian infrastructure.
Q2 results were a monster. MPC delivered EPS of $17.73 versus a $13.9518 consensus, revenue of $51.99 billion, and R&M margin of $36.33 per barrel versus $17.58 a year earlier. Systemwide crude utilization ran 94%, with Gulf Coast refineries at 100%, and the company returned over $2.8 billion to shareholders in the quarter with $6.1 billion left on the buyback.
The market has noticed. MPC is up 141.93% year to date and 30.97% in the past month alone through September 4. Which brings us to the ships that move the barrels the refiners cannot get any other way.
Marathon Petroleum Refining Snapshot Metric Q2 2026 Year Ago R&M adjusted EBITDA $6.66B $1.89B R&M margin per barrel $36.33 $17.58 Net income to MPC $5.14B $1.22B 4. Scorpio Tankers (The Rerouting Trade) Scorpio Tankers (NYSE:STNG) operates the product tankers that carry gasoline, diesel, and jet fuel around the world. When Hormuz traffic reroutes and Red Sea risk pushes owners around the Cape of Good Hope, sailing distances balloon and ton-mile demand spikes. Management described the setup bluntly: “I’ve never seen a July or August market like this. This is not what you would consider to be a normal summer low.”
For Q2 Scorpio posted revenue of $408.73 million, up 77.5% year over year, and average daily TCE revenue more than doubled to $52,661 from $25,569. Q3 is already booking at elevated levels: LR2 spot rates at $65,000 per day with 34% booked, MR at $29,000 per day with 46% booked. The balance sheet is fortified with roughly $2.0 billion of unrestricted cash plus a $483.2 million undrawn revolver.
STNG has rallied 64.86% year to date through September 4. Solid. But there is one operator whose fleet is levered directly to the choke point itself.
5. Frontline (The Payoff Trade on the Choke Point) Frontline (NYSE:FRO) is the pure-play VLCC and Suezmax operator whose earnings live and die by the Strait of Hormuz. CEO Lars Barstad did not hedge on the Q2 call: “The current market dwarfs the previous cycles.” Frontline cited an 82% reduction in crude oil exports from inside the Strait of Hormuz and a 23% increase in idling days per VLCC, both of which tighten effective fleet supply even as headline volumes fall.
Q2 delivered a profit of $659.2 million, or $2.96 per share, the best quarter Frontline has ever recorded, with Q2 VLCC TCE of $152,700 per day and Suezmax of $111,400 per day. Management then paid the money out: the latest declared dividend of $2.61 per share is the largest in Frontline’s recent history, and Barstad framed the capital-return posture starkly: “Our proposition to investors continues to be that we pay everything out.”
The market has already awarded the payoff. FRO is up 127.11% year to date and 133.08% over the past year through September 4. It is the cleanest way to own the choke point without predicting whether it closes.
Year-to-Date Price Performance Trade in One Breath Iran’s warning is the catalyst; the setup is already in motion. Offshore rigs get scarcer, US shale barrels get bid, refiners bank the crack, and the tankers that carry what is left charge whatever the market will pay. Every one of these names posted a blowout Q2 into the same disruption Tehran is now threatening to widen. Waiting for confirmation means paying up.
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Diamondback Energy za poslední měsíc přidala asi 5,9 % po silných výsledcích za 2. čtvrtletí, kdy EPS 6,48 USD a tržby 5,6 miliardy USD překonaly odhady.
A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have added about 5.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Diamondback due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Diamondback Energy, Inc. before we dive into how investors and analysts have reacted as of late.
Diamondback Energy Q2 Earnings Beat EstimatesDiamondback Energy reported second-quarter 2026 adjusted earnings per share (EPS) of $6.48, which beat the Zacks Consensus Estimate of $5.96 and more than doubled from the year-ago adjusted profit of $2.67. The outperformance was driven by production growth and a 53.1% improvement in the year-over-year realized oil prices.
This Midland, TX-based oil and gas exploration and production company’s revenues of $5.6 billion increased more than 51% from the year-ago quarter and topped the Zacks Consensus Estimate by about 17%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income.
In the second quarter of 2026, Diamondback Energy generated free cash flow and adjusted free cash flow of $2.3 billion. Over the same period, it bought back nearly 756,385 common shares for roughly $141 million at an average price of $186.63 per share, excluding excise taxes.
In July, the board of directors increased the company's share repurchase authorization from $8 billion to $16 billion, effectively doubling the program's capacity. Following this increase, approximately $9.9 billion remains available for future share repurchases under the authorization.
FANG’s board of directors approved a base quarterly dividend of $1.10 per common share for the second quarter of 2026, payable on Aug. 20 to its stockholders of record on Aug. 13.
Q2 Production & Realized PricesFANG’s production of oil and natural gas averaged 1,017,659 barrels of oil equivalent per day (BOE/d), comprising 51.6% oil. The figure was up 10.6% from the year-ago quarter and beat our model estimate of 969,519.9 BOE/d. While crude and natural gas output increased 5.9% and 16.5% year over year, respectively, natural gas liquids volumes climbed 15.7%.
The average realized oil price during the quarter was $96.82 per barrel, 53.1% higher than the year-ago realization of $63.23. The figure also beat our estimate of $66.12 per barrel. Meanwhile, the average realized natural gas price decreased to a negative $2.15 per thousand cubic feet from 88 cents in the prior year. The figure was also below our model estimate of 60 cents. Overall, the upstream oil and gas company fetched $51.68 per barrel compared with $39.61 a year ago.
Costs & Financial PositionDiamondback Energy’s second-quarter cash operating cost was $10.96 per BOE compared with $10.10 in the prior-year quarter and our estimate of $12.56. The increase in costs compared with the year-ago period reflected a rise in lease operating expenses to $5.96 per BOE from $5.26 in the second quarter of 2025 and an increase in Production and ad valorem taxes to $3.26 per BOE from $2.56 in the prior-year quarter.
However, FANG’s gathering, processing and transportation expenses decreased 29.5% year over year to $1.22 per BOE. Cash G&A expenses also fell in the second quarter of 2026 to 52 cents per BOE from 55 cents in the corresponding period of 2025.
Diamondback Energy logged $996 million in capital expenditure — spending $842 million on operated drilling and completion additions to oil and natural gas properties, and $154 million on non-operated additions. The company booked $2.3 billion in adjusted free cash flow in the second quarter.
As of June 30, the Permian-focused operator had approximately $462 million in cash and cash equivalents and $11.1 billion in long-term debt, representing a debt-to-capitalization of 20.1%.
Q3 & 2026 GuidanceDiamondback Energy updated its 2026 guidance by raising its full-year oil production outlook to more than 522 MBO/d, up from the previous guidance of more than 520 MBO/d, and increasing its total production forecast to over 1,000 MBOE/d from more than 972 MBOE/d. The company maintained its full-year cash capital expenditure guidance at approximately $3.9 billion.
For the third quarter of 2026, the company expects oil production to range between 517 MBO/d and 527 MBO/d, with total combined production projected at 995-1,015 MBOE/d. Third-quarter cash capital expenditures are expected to be between $950 million and $1.05 billion.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 11.98% due to these changes.
VGM ScoresAt this time, Diamondback has a great Growth Score of A, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Diamondback has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerDiamondback is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Comstock Resources (CRK - Free Report) , a stock from the same industry, has gained 20.5%. The company reported its results for the quarter ended June 2026 more than a month ago.
Comstock reported revenues of $353.28 million in the last reported quarter, representing a year-over-year change of -24.9%. EPS of $0.03 for the same period compares with $0.13 a year ago.
For the current quarter, Comstock is expected to post earnings of $0.06 per share, indicating a change of -33.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -36.8% over the last 30 days.
Comstock has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Bank of Nova Scotia ve 2. čtvrtletí získala nový podíl v Diamondback Energy: 28 279 akcií za zhruba 4,971 milionu USD. Akcie FANG zároveň zahájily obchodování níže o 2,8 %.
Bank of Nova Scotia bought a new stake in shares of Diamondback Energy, Inc. (NASDAQ:FANG – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm bought 28,279 shares of the oil and natural gas company’s stock, valued at approximately $4,971,000.
Other institutional investors and hedge funds have also modified their holdings of the company. Compass Financial Management LLC acquired a new stake in Diamondback Energy in the second quarter valued at approximately $63,000. Elevation Point Wealth Partners LLC acquired a new position in shares of Diamondback Energy during the 2nd quarter worth $1,493,000. Daiichi Life Insurance Co. Ltd. acquired a new position in shares of Diamondback Energy during the 2nd quarter worth $1,243,000. Commerce Bank bought a new position in shares of Diamondback Energy during the 2nd quarter valued at $14,457,000. Finally, GQG Partners LLC bought a new position in shares of Diamondback Energy during the 2nd quarter valued at $103,192,000. 90.01% of the stock is currently owned by hedge funds and other institutional investors.
Insiders Place Their Bets In other Diamondback Energy news, EVP Matt Zmigrosky sold 5,000 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $200.54, for a total value of $1,002,700.00. Following the completion of the transaction, the executive vice president directly owned 46,392 shares of the company’s stock, valued at approximately $9,303,451.68. The trade was a 9.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Mark Lawrence Plaumann sold 500 shares of the business’s stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $196.50, for a total value of $98,250.00. Following the sale, the director owned 13,437 shares of the company’s stock, valued at approximately $2,640,370.50. The trade was a 3.59% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 129,167 shares of company stock worth $24,714,309. 0.64% of the stock is owned by company insiders.
Diamondback Energy Trading Down 2.8% Diamondback Energy stock opened at $199.89 on Wednesday. The business has a 50 day moving average price of $192.34 and a two-hundred day moving average price of $189.96. The company has a quick ratio of 0.45, a current ratio of 0.47 and a debt-to-equity ratio of 0.25. The stock has a market cap of $55.97 billion, a price-to-earnings ratio of 38.96 and a beta of 0.43. Diamondback Energy, Inc. has a 12 month low of $134.30 and a 12 month high of $216.90. Diamondback Energy (NASDAQ:FANG – Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The oil and natural gas company reported $6.48 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.08 by $0.40. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The firm had revenue of $5.56 billion for the quarter, compared to analyst estimates of $4.89 billion. During the same quarter in the previous year, the firm posted $2.38 EPS. The business’s revenue for the quarter was up 51.2% on a year-over-year basis. As a group, equities analysts forecast that Diamondback Energy, Inc. will post 20.13 EPS for the current year.
Diamondback Energy Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Thursday, August 13th were given a $1.10 dividend. The ex-dividend date was Thursday, August 13th. This represents a $4.40 annualized dividend and a yield of 2.2%. Diamondback Energy’s payout ratio is presently 85.77%.
Analyst Upgrades and Downgrades Several research firms have recently issued reports on FANG. Roth Capital set a $212.00 price target on Diamondback Energy and gave the stock a “buy” rating in a research note on Monday, June 22nd. Wells Fargo & Company raised their price objective on Diamondback Energy from $262.00 to $263.00 and gave the company an “overweight” rating in a research note on Wednesday, August 5th. Truist Financial boosted their target price on Diamondback Energy from $220.00 to $224.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Raymond James Financial reaffirmed a “strong-buy” rating and set a $248.00 target price on shares of Diamondback Energy in a research report on Friday, July 31st. Finally, Sanford C. Bernstein increased their price target on Diamondback Energy from $237.00 to $241.00 and gave the company an “outperform” rating in a report on Monday, May 11th. Four investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $222.21.
Check Out Our Latest Analysis on Diamondback Energy
Diamondback Energy Profile (Free Report)
Diamondback Energy, Inc (NASDAQ: FANG) is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback’s activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
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Aurora Investment Counsel ve 2. čtvrtletí koupila nový podíl v Diamondback Energy za zhruba 1,314 milionu USD. Firma zároveň vykázala za čtvrtletí zisk na akcii (EPS) 6,48 USD a tržby 5,56 miliardy USD, nad odhady.
Aurora Investment Counsel bought a new stake in Diamondback Energy, Inc. (NASDAQ:FANG – Free Report) during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 7,478 shares of the oil and natural gas company’s stock, valued at approximately $1,314,000.
A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. Laurel Wealth Advisors LLC bought a new stake in shares of Diamondback Energy during the 4th quarter worth about $26,000. Cedar Mountain Advisors LLC bought a new stake in Diamondback Energy during the first quarter worth approximately $26,000. JPL Wealth Management LLC bought a new stake in Diamondback Energy during the third quarter worth approximately $26,000. Wellington Shields & Co. LLC raised its holdings in Diamondback Energy by 264.7% during the fourth quarter. Wellington Shields & Co. LLC now owns 186 shares of the oil and natural gas company’s stock worth $28,000 after purchasing an additional 135 shares in the last quarter. Finally, Meeder Asset Management Inc. acquired a new stake in Diamondback Energy in the second quarter worth approximately $28,000. Institutional investors own 90.01% of the company’s stock.
Insider Transactions at Diamondback Energy In related news, Director Charles Alvin Meloy sold 33,333 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $198.41, for a total value of $6,613,600.53. Following the transaction, the director owned 818,197 shares in the company, valued at approximately $162,338,466.77. This represents a 3.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Matt Zmigrosky sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $200.54, for a total transaction of $1,002,700.00. Following the transaction, the executive vice president directly owned 46,392 shares in the company, valued at approximately $9,303,451.68. The trade was a 9.73% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 129,167 shares of company stock valued at $24,714,309 over the last 90 days. Company insiders own 0.64% of the company’s stock.
Analysts Set New Price Targets A number of equities analysts have issued reports on the company. Mizuho increased their price target on Diamondback Energy from $220.00 to $240.00 and gave the company an “outperform” rating in a research note on Wednesday, May 27th. Raymond James Financial restated a “strong-buy” rating and issued a $248.00 price objective on shares of Diamondback Energy in a report on Friday, July 31st. Susquehanna raised their target price on Diamondback Energy from $245.00 to $255.00 and gave the company a “positive” rating in a research note on Tuesday, July 21st. Weiss Ratings raised Diamondback Energy from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 31st. Finally, Roth Capital set a $212.00 target price on Diamondback Energy and gave the stock a “buy” rating in a report on Monday, June 22nd. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $222.21. View Our Latest Research Report on Diamondback Energy
Key Stories Impacting Diamondback Energy Here are the key news stories impacting Diamondback Energy this week:
Positive Sentiment: Morgan Stanley reaffirmed its Equal Weight rating but raised or maintained a $216 price target, implying modest upside from the referenced price. The target provides some support, though the neutral rating limits the bullish signal. Morgan Stanley rating report Positive Sentiment: Zacks Research increased its FY2028 EPS forecast to $15.37 from $14.83, suggesting potential longer-term earnings improvement. Diamondback Energy valuation and pipeline venture article Neutral Sentiment: Analysts continue to rate FANG Hold or Equal Weight, indicating neither a strong bullish nor bearish consensus. Diamondback’s Permian-to-Katy gas pipeline strategy and participation in the Solitude Pipeline venture could broaden its midstream exposure, but the investment benefits remain dependent on execution and future cash flows. Diamondback Permian-to-Katy gas pipeline article Negative Sentiment: Zacks Research cut several near- and medium-term forecasts: Q3 2026 EPS to $2.70 from $4.32, Q4 2026 to $3.11 from $4.19, FY2026 to $16.52 from $18.11, FY2027 to $14.95 from $16.42, Q4 2027 to $3.08 from $3.87, and Q1 2028 to $3.12 from $3.57. Additional reductions affected Q2 and Q3 2027 estimates. These revisions outweigh the isolated FY2028 increase and are likely pressuring the stock. Diamondback Energy Stock Down 0.7% FANG stock opened at $208.55 on Thursday. The company has a 50 day moving average of $191.03 and a two-hundred day moving average of $188.74. The company has a market cap of $58.40 billion, a price-to-earnings ratio of 40.65 and a beta of 0.43. Diamondback Energy, Inc. has a 12-month low of $134.30 and a 12-month high of $214.51. The company has a quick ratio of 0.45, a current ratio of 0.47 and a debt-to-equity ratio of 0.25.
Diamondback Energy (NASDAQ:FANG – Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The oil and natural gas company reported $6.48 EPS for the quarter, beating the consensus estimate of $6.08 by $0.40. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The business had revenue of $5.56 billion for the quarter, compared to analysts’ expectations of $4.89 billion. During the same period in the previous year, the company posted $2.38 EPS. Diamondback Energy’s revenue was up 51.2% on a year-over-year basis. On average, equities analysts anticipate that Diamondback Energy, Inc. will post 19.3 earnings per share for the current fiscal year.
Diamondback Energy Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 13th will be given a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Thursday, August 13th. Diamondback Energy’s dividend payout ratio is presently 85.77%.
(Free Report)
Diamondback Energy, Inc (NASDAQ: FANG) is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback’s activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
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Diamondback Energy poprvé v historii překročila 1 milion BOE denně, když těžila z letošního růstu cen ropy. Firma zároveň zvýšila celoroční výhled produkce.
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$134.30▼
$214.512.05%
41.54
$222.21
Diamondback Energy NASDAQ: FANG could not have timed it better.
Just as oil prices were soaring this year, the Texas-based company surpassed 1 million barrels of oil equivalent per day (BOE/d) for the first time in the company’s history.
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It’s no surprise, then, that the company is awash in cash. And it’s no real surprise that analysts rate the company a Buy.
The question for investors is whether the share price above $200 can survive if, or when, oil prices recede.
Scale Through Permian Basin ExpansionDiamondback didn’t reach that level of oil production by an accident of drilling.
The company spent the past decade rolling up the Permian Basin to become the largest pure-play operator in America's most productive oil patch.
Its biggest bets, a $26 billion merger with Endeavor Energy Resources in 2024 and the 2025 acquisition of Double Eagle subsidiaries, were wagers that the added value would pay off. Today, Diamondback sits just behind ExxonMobil and Chevron in terms of production in the Permian Basin.
Production Growth Drives Strong EarningsThis past quarter, the bet paid off.
Second-quarter revenue jumped 51.2% year-over-year (YOY) to $5.56 billion, well ahead of the roughly $4.89 billion Wall Street had predicted.
Adjusted earnings per share came in at $6.48, beating the $6.08 consensus, while net income more than doubled to $1.88 billion, or $6.65 per diluted share, more than twice the $699 million a year earlier. Adjusted EBITDA reached $3.55 billion, a margin of roughly 64% of revenue.
In all for the three months, average oil production hit 525,000 barrels per day, pushing total output past the 1-million (BOE/d) threshold.
Management responded by raising full-year guidance again, to more than 1 million BOE/d and 522,000 barrels of oil per day, up from 972,000 and 520,000 previously.
At the same time, it said it expected to hold capital spending steady at roughly $3.9 billion, meaning more production for the same budget.
Free Cash Flow Fuels Shareholder Returns Diamondback Energy Dividend Payments2.11%
$4.40
7 Years
21.67%
85.77%
Aug. 20
FANG Dividend History
For shareholders, the returns were real. Free cash flow for the second quarter reached $2.3 billion, up from $1.7 billion the previous quarter and $1.2 billion in the year-ago period. And Diamondback is leaning harder into returning that cash.
During the quarter, the company repurchased about $141 million of company shares and cut net debt by $1.6 billion to $12.3 billion.
The board also doubled the share buyback authorization to $16 billion from $8 billion in July, with roughly $9.9 billion still available as of July 31.
For income-oriented holders, the board raised the quarterly dividend earlier this year to $1.10 per share, putting the yield at around 2.1%.
Diamondback has grown its dividend for seven consecutive years and says the payout, as well as current production levels, are protected down to $36 per barrel of West Texas Intermediate (WTI) crude, well below where oil trades today.
Wall Street Remains Bullish on DiamondbackWall Street's take is decidedly favorable. Twenty-six analysts cover the stock with a consensus Buy rating, made up of four Strong Buys, 18 Buy ratings, and four analysts who suggest a Hold.
The average 12-month price target sits at $221.75, implying roughly 6% upside from recent prices, with targets ranging from $173 to $263.
Higher Oil Prices Bring Added RiskWith the current conditions, there are not many downsides. But current conditions in the oilfield rarely stay current for long. Much of Diamondback's recent strength is borrowed from a geopolitical shock, not organic demand growth.
Oil prices have surged since early 2026 because of the Iran war and the effective closure of the Strait of Hormuz. West Texas Intermediate crude is currently trading at about $86 per barrel, up from about $57 at the start of the year, driven by one of the largest supply disruptions in oil-market history.
The industry has benefited big. Diamondback reported that the realized average price of oil in the latest quarter was $96.82 per barrel compared with $73.47 in the previous three months and up more than 50% from a year ago.
Prices are expected to stay high this year, according to the federal Energy Information Administration (EIA), which expects WTI to average $80.88 a barrel in 2026. But those prices are likely to fall next year, the EIA predicts, as the average price is expected to decline to just $65.39 in 2027 as disrupted flows normalize. And a sooner-than-expected ceasefire could squeeze Diamondback earnings even faster.
Diamondback Offers Upside With VolatilityEven with that understanding, Diamondback looks like a disciplined operator benefiting from both its own execution and maybe a once-in-a-decade spike in oil prices. The production milestone, guidance raise, and doubled buyback authorization all point to management converting scale into shareholder returns.
How long high oil prices continue is impossible to say, so this might not be a stock for investors who want a smooth ride or a business separate from geopolitical headlines.
But for long-term holders who know and are comfortable with commodity swings, Diamondback’s growing dividend, aggressive buybacks, and operational momentum make this a strong name to own through all the future energy noise.
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Fielder Capital Group LLC purchased a new stake in Diamondback Energy, Inc. (NASDAQ:FANG – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 8,812 shares of the oil and natural gas company’s stock, valued at approximately $1,549,000.
Several other hedge funds also recently added to or reduced their stakes in FANG. Cedar Mountain Advisors LLC acquired a new position in shares of Diamondback Energy in the 1st quarter valued at about $26,000. Laurel Wealth Advisors LLC purchased a new stake in shares of Diamondback Energy in the fourth quarter worth about $26,000. JPL Wealth Management LLC acquired a new stake in Diamondback Energy during the third quarter worth about $26,000. Wellington Shields & Co. LLC grew its holdings in Diamondback Energy by 264.7% during the fourth quarter. Wellington Shields & Co. LLC now owns 186 shares of the oil and natural gas company’s stock worth $28,000 after acquiring an additional 135 shares during the period. Finally, Global Assets Advisory LLC purchased a new position in Diamondback Energy during the first quarter valued at approximately $40,000. 90.01% of the stock is owned by hedge funds and other institutional investors.
Insider Activity at Diamondback Energy In related news, EVP Matt Zmigrosky sold 5,000 shares of the company’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $200.54, for a total transaction of $1,002,700.00. Following the completion of the transaction, the executive vice president owned 46,392 shares in the company, valued at $9,303,451.68. This represents a 9.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Teresa L. Dick sold 7,000 shares of the firm’s stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $200.90, for a total transaction of $1,406,300.00. Following the completion of the transaction, the chief accounting officer directly owned 85,755 shares in the company, valued at $17,228,179.50. This represents a 7.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 134,167 shares of company stock worth $25,749,309 in the last ninety days. 0.64% of the stock is owned by company insiders.
Wall Street Analyst Weigh In FANG has been the subject of a number of analyst reports. Wall Street Zen raised Diamondback Energy from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Zacks Research cut shares of Diamondback Energy from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 28th. Morgan Stanley lowered their price target on shares of Diamondback Energy from $229.00 to $216.00 and set an “overweight” rating on the stock in a report on Monday, June 29th. Wells Fargo & Company lifted their price objective on shares of Diamondback Energy from $262.00 to $263.00 and gave the company an “overweight” rating in a report on Wednesday, August 5th. Finally, Raymond James Financial reiterated a “strong-buy” rating and issued a $248.00 price objective on shares of Diamondback Energy in a research report on Friday, July 31st. Four research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Diamondback Energy has an average rating of “Buy” and an average price target of $222.30. Get Our Latest Analysis on FANG
Diamondback Energy Stock Performance Shares of FANG stock opened at $202.47 on Monday. The company has a debt-to-equity ratio of 0.25, a current ratio of 0.47 and a quick ratio of 0.45. The company has a market cap of $56.70 billion, a price-to-earnings ratio of 39.47 and a beta of 0.43. The stock has a 50 day simple moving average of $190.31 and a 200-day simple moving average of $187.74. Diamondback Energy, Inc. has a 1-year low of $134.30 and a 1-year high of $214.51.
Diamondback Energy (NASDAQ:FANG – Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The oil and natural gas company reported $6.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.08 by $0.40. The firm had revenue of $5.56 billion for the quarter, compared to analysts’ expectations of $4.89 billion. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The firm’s revenue for the quarter was up 51.2% compared to the same quarter last year. During the same quarter last year, the company earned $2.38 EPS. On average, equities research analysts expect that Diamondback Energy, Inc. will post 19.73 EPS for the current fiscal year.
Diamondback Energy Announces Dividend The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Shareholders of record on Thursday, August 13th will be issued a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend is Thursday, August 13th. Diamondback Energy’s dividend payout ratio (DPR) is presently 85.77%.
Diamondback Energy Company Profile (Free Report)
Diamondback Energy, Inc (NASDAQ: FANG) is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback’s activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
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Diamondback zvýšil výhled produkce na rok 2026, ale celoroční kapitálové výdaje ponechal kolem 3,9 miliardy USD. Ve 2. čtvrtletí překonal odhady díky růstu produkce a meziročnímu skoku realizované ceny ropy o 53,1 %.
Key Takeaways Diamondback raised 2026 oil and total production guidance while keeping full-year capex near $3.9 billion.FANG's Q2 earnings beat reflected production growth and a 53.1% year-over-year rise in realized oil prices.FANG's drilling gains support output growth, but commodity prices and service-cost inflation remain risks. Diamondback Energy, Inc. (FANG - Free Report) raised its 2026 production outlook after a second quarter that topped earnings expectations, while leaving its full-year capital budget unchanged. That combination puts capital efficiency at the center of the investment case.
Higher volumes could extend earnings momentum if operating gains keep costs contained. The test is whether Diamondback can sustain the larger production base without requiring a proportional increase in spending.
FANG Raises Output Without Raising Full-Year CapexDiamondback increased 2026 oil production guidance to 522+ thousand barrels per day from 520+ thousand barrels per day. Total production guidance rose to 1,000+ thousand barrels of oil equivalent per day from 972+ thousand barrels of oil equivalent per day.
Full-year cash capital expenditures remain about $3.9 billion. For the third quarter, FANG expects oil production of 517-527 thousand barrels per day, total production of 995-1,015 thousand barrels of oil equivalent per day and capital spending of $950 million to $1.05 billion.
Image Source: Diamondback Energy
Diamondback's Q2 Beat Builds a Stronger BaseSecond-quarter production reached 1.018 million barrels of oil equivalent per day, including 525 thousand barrels of oil per day. Adjusted earnings were $6.48 per share, topping the Zacks Consensus Estimate of $5.96.
Revenues of $5.6 billion increased more than 51% year over year and beat the consensus mark by about 17%. The earnings outperformance reflected production growth and a 53.1% year-over-year improvement in realized oil prices.
Image Source: Diamondback Energy
FANG's Efficiency Gains Support the Higher TargetDiamondback has improved well construction, targeting, stimulation and completion techniques. Management noted that wells that once took about 30 days to drill can now be drilled in roughly five days, while longer laterals and lower costs per foot are supporting well economics.
The focus is on combining more wells per section with higher production per well at a low cost per well. ConocoPhillips (COP - Free Report) also continues to emphasize capital discipline, reaffirming its full-year 2026 guidance after the second quarter. Occidental Petroleum Corporation (OXY - Free Report) reported second-quarter production above the high end of guidance while spending $1.6 billion on capital expenditures.
Diamondback's Growth Plan Still Carries Key RisksCommodity sensitivity remains the biggest constraint. A sustained crude-price decline could pressure cash flow, drilling economics and the economics of carrying a higher production base. Service-cost inflation is another concern, particularly for casing, fuel and other consumables.
Management estimates that maintaining the higher production base could require roughly $1 billion or slightly more of quarterly capital spending. Rising gas production adds another risk because Permian natural gas pricing can weaken when takeaway capacity is tight, limiting the benefit of stronger volumes.
FANG's Hold Signal Keeps Expectations GroundedThe higher guidance supports the case that Diamondback can preserve operating momentum without lifting its full-year capital budget. Still, the payoff depends on execution, commodity prices and the company’s ability to keep efficiency gains ahead of cost inflation.
FANG currently carries a Zacks Rank #3 (Hold). It has a Growth Score of A, Momentum Score of A, Value Score of B and VGM Score of A. Those favorable Style Scores reflect attractive growth and momentum characteristics, while the Hold rank keeps the near-term view balanced as investors weigh commodity exposure, costs and execution risk.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Diamondback Energy ve 2. čtvrtletí překonal odhady: EPS činil 6,48 USD a tržby vzrostly meziročně o 51,2 % na 5,56 mld. USD. Společnost zároveň zvýšila produkční výhled pro rok 2026.
Balefire LLC purchased a new position in shares of Diamondback Energy, Inc. (NASDAQ:FANG – Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 5,400 shares of the oil and natural gas company’s stock, valued at approximately $949,000.
A number of other large investors have also recently made changes to their positions in FANG. Cedar Mountain Advisors LLC bought a new position in Diamondback Energy in the 1st quarter valued at about $26,000. Flagship Harbor Advisors LLC purchased a new position in shares of Diamondback Energy in the 4th quarter worth about $25,000. Laurel Wealth Advisors LLC bought a new position in shares of Diamondback Energy during the 4th quarter valued at approximately $26,000. Richardson Financial Services Inc. grew its holdings in Diamondback Energy by 245.1% during the fourth quarter. Richardson Financial Services Inc. now owns 176 shares of the oil and natural gas company’s stock valued at $26,000 after purchasing an additional 125 shares during the period. Finally, JPL Wealth Management LLC purchased a new stake in Diamondback Energy in the 3rd quarter worth about $26,000. 90.01% of the stock is owned by institutional investors.
Key Headlines Impacting Diamondback Energy Here are the key news stories impacting Diamondback Energy this week:
Positive Sentiment: Q2 results exceeded expectations: Diamondback reported earnings of $6.48 per share versus the $6.08 consensus estimate, while revenue climbed 51.2% year over year to $5.56 billion, surpassing forecasts of $4.89 billion. Higher realized oil prices and production growth supported the results. Diamondback Energy Q2 Earnings Beat Estimates, Revenues Rise Y/Y Positive Sentiment: Growth outlook improved: Diamondback raised its 2026 production guidance without increasing capital spending. Management also highlighted operational efficiency, potential gas-demand growth and well-performance improvements that could support expansion into 2027. Diamondback Q2 Earnings Call Focuses on Growth and Debt Reduction Positive Sentiment: Shareholder returns and balance-sheet progress: The company expanded its share-repurchase plan, reduced debt and maintained a quarterly dividend of $1.10, or $4.40 annualized. These actions may strengthen the investment case by returning more cash to shareholders while preserving financial discipline. Positive Sentiment: Analyst targets moved higher: Susquehanna raised its price target to $265 from $255, while Wells Fargo increased its target to $263 and maintained an Overweight rating. The revisions reflect confidence in Diamondback’s earnings, production and cash-flow outlook. Susquehanna Adjusts Price Target on Diamondback Energy Neutral Sentiment: Commodity-price exposure remains important: Management said higher oil prices may persist because of low global inventories. That could support revenue and cash flow, although FANG remains sensitive to any reversal in crude prices. Diamondback Says Higher Oil Prices May Persist Negative Sentiment: Director sold shares: Director Charles Alvin Meloy sold 33,333 shares for approximately $6.6 million. The transaction occurred under a pre-arranged Rule 10b5-1 plan, reducing its bearish significance, but insider selling can still weigh modestly on sentiment. Diamondback Energy Director Share Sale Wall Street Analyst Weigh In FANG has been the subject of several recent research reports. Wolfe Research reiterated an “outperform” rating and issued a $206.00 price target on shares of Diamondback Energy in a research report on Tuesday. Mizuho increased their price target on shares of Diamondback Energy from $220.00 to $240.00 and gave the stock an “outperform” rating in a report on Wednesday, May 27th. UBS Group decreased their price objective on Diamondback Energy from $246.00 to $243.00 and set a “buy” rating on the stock in a report on Tuesday, July 21st. Citigroup lowered their price target on shares of Diamondback Energy from $245.00 to $221.00 and set a “buy” rating for the company in a research note on Monday, July 20th. Finally, Sanford C. Bernstein increased their price objective on Diamondback Energy from $237.00 to $241.00 and gave the company an “outperform” rating in a research note on Monday, May 11th. Four investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $220.75.
View Our Latest Stock Analysis on FANG
Insiders Place Their Bets In other news, CAO Teresa L. Dick sold 7,000 shares of the business’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $200.90, for a total value of $1,406,300.00. Following the completion of the transaction, the chief accounting officer owned 85,755 shares in the company, valued at $17,228,179.50. The trade was a 7.55% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Matt Zmigrosky sold 5,000 shares of the business’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $200.54, for a total value of $1,002,700.00. Following the completion of the transaction, the executive vice president directly owned 46,392 shares of the company’s stock, valued at approximately $9,303,451.68. This trade represents a 9.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 139,167 shares of company stock worth $26,749,809 in the last 90 days. 0.64% of the stock is currently owned by company insiders.
Diamondback Energy Trading Up 1.9% NASDAQ FANG opened at $189.63 on Friday. The stock’s 50 day moving average is $190.46 and its 200 day moving average is $185.77. The firm has a market capitalization of $53.35 billion, a PE ratio of 36.96 and a beta of 0.43. The company has a quick ratio of 0.55, a current ratio of 0.47 and a debt-to-equity ratio of 0.25. Diamondback Energy, Inc. has a twelve month low of $134.30 and a twelve month high of $214.51.
Diamondback Energy (NASDAQ:FANG – Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The oil and natural gas company reported $6.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.08 by $0.40. Diamondback Energy had a net margin of 8.58% and a return on equity of 10.10%. The company had revenue of $5.56 billion during the quarter, compared to analyst estimates of $4.89 billion. During the same period last year, the business earned $2.38 EPS. Diamondback Energy’s quarterly revenue was up 51.2% compared to the same quarter last year. Research analysts forecast that Diamondback Energy, Inc. will post 18.77 earnings per share for the current fiscal year.
Diamondback Energy Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Thursday, August 13th will be given a dividend of $1.10 per share. The ex-dividend date of this dividend is Thursday, August 13th. This represents a $4.40 annualized dividend and a dividend yield of 2.3%. Diamondback Energy’s dividend payout ratio (DPR) is 85.77%.
Diamondback Energy Profile (Free Report)
Diamondback Energy, Inc (NASDAQ: FANG) is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback’s activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
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Diamondback Energy ve 2. čtvrtletí překonala odhady zisku i tržeb; upravený EPS činil 6,48 USD a tržby 5,6 mld. USD. Firma zároveň zvýšila výhled těžby na rok 2026 a zdvojnásobila program zpětného odkupu akcií na 16 mld. USD.
Key Takeaways Diamondback Energy beat Q2 EPS and revenue estimates as realized oil prices and sales increased YoY.FANG raised its 2026 oil and total production outlook while maintaining cash capital spending guidance.Diamondback Energy doubled its share repurchase authorization to $16 billion and declared a $1.10 dividend. Diamondback Energy, Inc. (FANG - Free Report) reported second-quarter 2026 adjusted earnings per share (EPS) of $6.48, which beat the Zacks Consensus Estimate of $5.96 and more than doubled from the year-ago adjusted profit of $2.67. The outperformance was driven by production growth and a 53.1% improvement in the year-over-year realized oil prices.
This Midland, TX-based oil and gas exploration and production company’s revenues of $5.6 billion increased more than 51% from the year-ago quarter and topped the Zacks Consensus Estimate by about 17%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income.
In the second quarter of 2026, Diamondback Energy generated free cash flow and adjusted free cash flow of $2.3 billion. Over the same period, it bought back nearly 756,385 common shares for roughly $141 million at an average price of $186.63 per share, excluding excise taxes.
In July, the board of directors increased the company's share repurchase authorization from $8 billion to $16 billion, effectively doubling the program's capacity. Following this increase, approximately $9.9 billion remains available for future share repurchases under the authorization.
FANG’s board of directors approved a base quarterly dividend of $1.10 per common share for the second quarter of 2026, payable on Aug. 20 to its stockholders of record on Aug. 13.
FANG’s Q2 Production & Realized PricesFANG’s production of oil and natural gas averaged 1,017,659 barrels of oil equivalent per day (BOE/d), comprising 51.6% oil. The figure was up 10.6% from the year-ago quarter and beat our model estimate of 969,519.9 BOE/d. While crude and natural gas output increased 5.9% and 16.5% year over year, respectively, natural gas liquids volumes climbed 15.7%.
The average realized oil price during the quarter was $96.82 per barrel, 53.1% higher than the year-ago realization of $63.23. The figure also beat our estimate of $66.12 per barrel. Meanwhile, the average realized natural gas price decreased to a negative $2.15 per thousand cubic feet from 88 cents in the prior year. The figure was also below our model estimate of 60 cents. Overall, the upstream oil and gas company fetched $51.68 per barrel compared with $39.61 a year ago.
FANG’s Costs & Financial PositionDiamondback Energy’s second-quarter cash operating cost was $10.96 per BOE compared with $10.10 in the prior-year quarter and our estimate of $12.56. The increase in costs compared with the year-ago period reflected a rise in lease operating expenses to $5.96 per BOE from $5.26 in the second quarter of 2025 and an increase in Production and ad valorem taxes to $3.26 per BOE from $2.56 in the prior-year quarter.
However, FANG’s gathering, processing and transportation expenses decreased 29.5% year over year to $1.22 per BOE. Cash G&A expenses also fell in the second quarter of 2026 to 52 cents per BOE from 55 cents in the corresponding period of 2025.
Diamondback Energy logged $996 million in capital expenditure — spending $842 million on operated drilling and completion additions to oil and natural gas properties, and $154 million on non-operated additions. The company booked $2.3 billion in adjusted free cash flow in the second quarter.
As of June 30, the Permian-focused operator had approximately $462 million in cash and cash equivalents and $11.1 billion in long-term debt, representing a debt-to-capitalization of 20.1%.
FANG’s Q3 & 2026 GuidanceDiamondback Energy updated its 2026 guidance by raising its full-year oil production outlook to more than 522 MBO/d, up from the previous guidance of more than 520 MBO/d, and increasing its total production forecast to over 1,000 MBOE/d from more than 972 MBOE/d. The company maintained its full-year cash capital expenditure guidance at approximately $3.9 billion.
For the third quarter of 2026, this Zacks Rank #3 (Hold) company expects oil production to range between 517 MBO/d and 527 MBO/d, with total combined production projected at 995-1,015 MBOE/d. Third-quarter cash capital expenditures are expected to be between $950 million and $1.05 billion.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Important Energy Earnings at a GlanceWhile we have discussed FANG’s second-quarter results in detail, let us take a look at three other key reports in the energy space.
Expand Energy Corporation (EXE - Free Report) reported second-quarter 2026 adjusted earnings per share of $1.33, beating the Zacks Consensus Estimate of $1.22. The company’s bottom line increased from the year-ago adjusted profit of $1.10 per share, fueled by strong production and lower operating expenses.
Expand Energy’s ‘natural gas, oil and NGL’ revenues of $1.8 billion missed the Zacks Consensus Estimate of $2 billion. The top line was also below the year-ago figure of $2 billion.
As of June 30, 2026, the company had $663 million in cash and cash equivalents. Expand Energy had a long-term debt of $3.7 billion, reflecting a debt-to-capitalization of 16%.
NOV Inc. (NOV - Free Report) reported second-quarter 2026 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 16 cents. The bottom line also increased 6.9% from the year-ago quarter’s 29 cents, driven by outperformance of the Energy Equipment segment.
The oil and gas equipment and services company’s total revenues of $2.1 billion beat the Zacks Consensus Estimate by $39 million. However, NOV’s revenues fell 2.5% from the year-ago quarter’s figure of $2.2 billion due to lower year-over-year revenues from the Energy Products and Services segment.
As of June 30, the company had cash and cash equivalents of $1.2 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.3%.
Core Laboratories Inc. (CLB - Free Report) reported second-quarter 2026 adjusted earnings of 11 cents per share, which beat the Zacks Consensus Estimate of 8 cents, driven by outperformance of the Production Enhancement segment. However, the bottom line decreased from the year-ago quarter’s reported figure of 19 cents due to the underperformance of the Reservoir Description segment and increased costs and expenses.
This oilfield service provider reported second-quarter operating revenues of $124.6 million, missing the Zacks Consensus Estimate of $128 million and decreasing from the earlier-year quarter’s reported figure of $130.1 million. This can be attributed to military conflicts in the Middle East and the Russia-Ukraine region, which disrupted energy infrastructure, delaying projects, disrupting crude oil trade and reducing demand for the company's international laboratory services.
As of June 30, 2026, the company had cash and cash equivalents of $22.7 million and long-term debt of $113.9 million. CLB’s debt-to-capitalization was about 29%.
Diamondback Energy oznámila výsledky za 2. čtvrtletí 2026 v rámci konferenčního hovoru k výsledkům. V prezentaci a dopise akcionářům společnost shrnula svůj finanční a provozní vývoj.
Diamondback Energy, Inc. (FANG) Q2 2026 Earnings Call August 4, 2026 9:00 AM EDT
Company Participants
Adam Lawlis - Vice President of Investor Relations
Kaes Van't Hof - CEO & Director
Albert Barkmann - EVP & Chief Engineer
Jere Thompson - Executive VP & CFO
Daniel Wesson - Executive VP & COO
Chad McAllaster - Executive Vice President of Operations
Conference Call Participants
Neal Dingmann - William Blair & Company L.L.C., Research Division
Neil Mehta - Goldman Sachs Group, Inc., Research Division
Scott Hanold - RBC Capital Markets, Research Division
Arun Jayaram - JPMorgan Chase & Co, Research Division
John Freeman - Raymond James & Associates, Inc., Research Division
Phillip Jungwirth - BMO Capital Markets Equity Research
Kevin MacCurdy - Pickering Energy Partners Insights
Douglas George Blyth Leggate - Wolfe Research, LLC
Geoff Jay - Daniel Energy Partners, LLC
Paul Sankey - Sankey Research LLC
Gabe Daoud - Truist Securities, Inc., Research Division
Derrick Whitfield - Texas Capital Securities, Research Division
Charles Meade - Johnson Rice & Company, L.L.C., Research Division
Leo Mariani - ROTH Capital Partners, LLC, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Diamondback Energy Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the call over to your host today, Adam Lawlis, VP of Investor Relations. Adam, please go ahead.
Adam Lawlis
Vice President of Investor Relations
Thank you, Grace. Good morning, and welcome to Diamondback Energy's Second Quarter 2026 Conference Call. During our call today, we will reference an updated investor presentation and letter to stockholders, which can be found on Diamondback's website. Representing Diamondback today are Kaes Van't Hof, CEO; Danny Wesson, COO; Jere Thompson, CFO; and Al Barkmann, Chief Engineer.
During this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future
Diamondback Energy zvýšila výhled produkce zhruba o 3 % až 4 % proti původnímu plánu na rok 2026 a nyní je asi o 4 % nad začátkem roku. Firma zároveň snížila čistý dluh o 1,6 miliardy USD.
3 Stocks to Own If Gas Prices Keep RisingDiamondback Energy NASDAQ: FANG said its second-quarter operational performance and view of global oil inventories support a potential path toward low-single-digit organic production growth in 2027, while management emphasized it intends to retain flexibility amid commodity-market volatility.
Chief Executive Officer Kaes Van’t Hof said the company increased its production outlook by roughly 3% to 4% versus its original 2026 plan after responding to oil-price signals in March. Production is now approximately 4% above its level at the start of the year, he said.
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Insider Selling: CRWV, DELL & FANG See +$100M in 2026 Sales Looking ahead, Van’t Hof said Diamondback is weighing whether to maintain production at elevated third-quarter levels or grow from that base. At present, the company’s model supports low-single-digit organic growth while maintaining capital efficiency and operating five frac crews consistently through the year.
“Our bet is that these global inventories, including SPRs, are going to need to be refilled,” Van’t Hof said, referring to strategic petroleum reserves. He said oil and product inventories have been drawing down and that, absent permanent demand destruction, the market will need additional supply to meet global demand and replenish inventories.
Operations and Well Productivity Diamondback Sees Resilient Demand Despite Cautious GuidanceManagement highlighted continued operational improvements across well construction, targeting and completions. Van’t Hof described the company’s progress as a “stacked innovation” effort, citing incremental advances that have improved drilling and completion performance over time.
Chief Engineer Al Barkmann said Diamondback has used larger tubulars that allow more aggressive flowback, while changes in stimulation design, stage architecture, perforating and well targeting have contributed to recent well outperformance. Management said its objective is to maximize the combination of wells per section, production per well and low well costs to generate the highest net present value per section and acre.
The company also discussed completion efficiency. Chief Operating Officer Danny Wesson said Diamondback averaged more than 21 hours of pumping per day during the first full quarter of continuous pumping. While the company sees potential to continue improving, Wesson said maintenance requirements and the cost of equipment redundancy create practical tradeoffs.
Diamondback is targeting average completion performance of 5,000 feet per day across its crews, after some pads surpassed that level, according to Wesson. The company is also using electric frac fleets, which management said have helped mitigate fuel-cost inflation.
On oilfield service costs, Wesson said Diamondback is seeing some inflation in consumables, particularly casing in the second half of 2026. He estimated the impact at slightly more than 1% of total well costs, adding that the company expects to offset much of that pressure through efficiency gains. Management said a quarterly capital run rate of roughly $1 billion to slightly more than $1 billion could be reasonable to hold production flat based on current conditions.
Gas, Power and Data Center Strategy Van’t Hof said improved gas pricing at Waha during July, following the start-up of new pipelines, provided near-term relief after weak second-quarter conditions. He said Diamondback views natural gas as an additive component of its oil-focused strategy and intends to secure more contracted transportation capacity to Gulf Coast markets, where gas demand could come from LNG exports, power generation and data centers.
The company said gas production has exceeded expectations. Wesson attributed much of that outperformance to improved local gas marketing, including maturing gathering and processing systems, additional redundancy and strategic split connections. Barkmann said a growing role for Barnett development could cause gas volumes to increase further over time.
Chief Financial Officer Jere Thompson provided an update on a proposed power project at Diamondback’s approximately 30,000-acre Bryant Ranch site near Midland, Texas. The project is being developed with an independent power producer and is intended to provide a bridge-to-grid power solution using behind-the-meter reciprocating units.
Management said the site has distributed generation, remediated land, and dedicated natural gas and water access. The initial phase could deliver first gas as soon as the second half of 2027, according to Thompson. Diamondback is also pursuing grid-connected power as early as 2028 through ERCOT’s Batch Zero process. The company was awaiting ERCOT’s determination on project eligibility following an August 20 meeting. Thompson said Diamondback has set aside 200 million to 250 million cubic feet per day of natural gas for the project. He described a potential in-basin feed-gas solution as the project’s largest value driver, with additional possible benefits from Diamondback’s 30% interest in water infrastructure company Deep Blue and potential land-related proceeds.
Management said it would provide a broader update after signing definitive documentation with a hyperscale customer. Van’t Hof stressed that Diamondback does not plan to become a power or data center operator, but intends to provide molecules, surface acreage, water and industry knowledge.
Capital Allocation and Balance Sheet Van’t Hof said Diamondback has moved away from a formulaic minimum free-cash-flow return commitment in favor of a more flexible capital-allocation approach. The company repurchased some shares in the second quarter and continued buying stock in the third quarter, he said, while also reducing net debt by $1.6 billion during the second quarter.
Van’t Hof estimated that the debt reduction represented $5.60 per share of value moving from the debt side of the capital structure to equity. He said Diamondback intends to use buybacks opportunistically rather than pursue procyclical repurchases.
The company also plans to build enough cash to address debt callable in 2026 and prepare for 2027 maturities, while potentially accumulating cash for maturities due between 2029 and 2032. Van’t Hof said cash accumulation is not intended to fund large cash acquisitions.
Barnett, EOR and Portfolio Development Diamondback said it continues to expand and consolidate its Barnett position, including through leasing activity with Double Eagle. The company’s first four-well Spanish Trail pad has been drilled and is expected to be completed in coming months. Management said it expects full-section results around year-end or early 2027.
Van’t Hof said Barnett drilling costs are approaching $400 per foot, with some wells already below that level. The company expects to achieve costs around $400 per foot or less consistently as it builds scale in the play.
The company is also testing surfactant-based enhanced oil recovery techniques. Barkmann said Diamondback completed a 12-well project during the quarter and was flowing back the wells, with initial results described as positive. Management said results have varied widely across earlier work, with some wells showing no uplift and others producing three to four times more than before treatment.
Van’t Hof said the average earlier result involved wells producing roughly 150 to 200 barrels per day gaining an additional 100 to 150 barrels per day, though the company is still determining which rock types and reservoir conditions respond best. Diamondback is also incorporating the approach into new-well pads, with control and surfactant-treated portions of certain sections.
Management said it sees artificial intelligence and automation as early-stage tools for improving artificial lift optimization, reducing downtime and lowering operating costs. The company’s lease operating expense fell below $6 per barrel during the quarter, primarily because of higher production volumes, though management said it expects costs to remain around that level or somewhat higher in the second half.
About Diamondback Energy (NASDAQ:FANG)Diamondback Energy, Inc NASDAQ: FANG is an independent oil and natural gas company focused on the development, exploration and production of unconventional resources in the Permian Basin. Headquartered in Midland, Texas, the company concentrates its operations in the core Midland and Delaware sub‑basins of West Texas and southeastern New Mexico, where it pursues contiguous acreage positions to support repeatable drilling programs.
Diamondback's activities span the upstream value chain, including leasehold acquisition, well planning, drilling, completion and production optimization.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Diamondback Energy uvedla, že konflikt s Íránem trvale zvedl minimum cen ropy, protože globální zásoby je nutné znovu doplnit. Tržby vzrostly na 5,56 miliardy USD a upravený zisk na akcii dosáhl 6,48 USD.
For much of the past decade, investors treated oil price spikes as temporary disruptions that eventually faded. That assumption is becoming harder to defend. The Iran war has fundamentally changed the balance between global supply and demand, and the world’s oil market is still struggling to recover.
Before hostilities erupted, West Texas Intermediate (WTI) crude traded near $65 per barrel while Brent crude hovered around $70. Both briefly surged above $100 after the Strait of Hormuz was effectively shut down, and although prices have eased from those peaks, WTI and Brent remain above $80 today. Diamondback Energy‘s (NASDAQ:FANG | FANG Price Prediction) latest earnings report suggests that elevated prices may no longer be the exception — they could become the baseline.
Diamondback’s Results Tell the Story Diamondback Energy delivered one of the strongest earnings reports in the energy sector, according to its quarterly earnings release. Revenue climbed to $5.56 billion, beating the $4.81 billion Wall Street consensus and rising from $3.68 billion a year earlier. Adjusted earnings reached $6.48 per share, ahead of the $6.01 analysts expected.
The numbers extended well beyond the income statement.
Metric Q2 2026 Revenue $5.56 billion Adjusted EPS $6.48 Free Cash Flow $2.33 billion Production 1.018 million BOE/d Oil Production 525 MBO/d Management also raised full-year production guidance while forecasting 517,000 to 527,000 barrels of oil per day during the third quarter.
Diamondback isn’t benefiting from a temporary windfall alone. It is generating enough cash to expand production while returning capital to shareholders, illustrating how higher commodity prices quickly translate into stronger financial results for efficient producers.
Although exports through the region are recovering in stages, Van’t Hof argued that the market has fundamentally changed.
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“These draws will eventually have to reverse, and we believe the restocking required to rebuild global inventories has structurally raised the floor for oil prices compared to pre-conflict prices.”
That is an important distinction. Inventories don’t replenish overnight. Even if geopolitical tensions ease tomorrow, producers must rebuild depleted stockpiles before supply catches demand. That creates persistent buying pressure that supports higher oil prices.
Ironically, Saudi Aramco warned early in the conflict that unless shipping disruptions ended quickly, the consequences would prove lasting. Diamondback’s latest assessment suggests exactly that scenario is unfolding.
The Inflation Problem Isn’t Going Away For producers like Diamondback, Chevron (NYSE:CVX), and ExxonMobil (NYSE:XOM), stronger crude prices generally expand profits and free cash flow. For consumers, however, gasoline prices above $4 per gallon continue squeezing household budgets and remain one of inflation’s largest contributors.
President Trump criticized Chevron, ExxonMobil, and other producers yesterday over gasoline prices, seemingly absolving himself of any responsibility and ignoring that integrated oil companies have little influence over prices set at the pump. Oil companies simply sell into the market they are given.
That has broader implications for investors. If energy inflation remains elevated, the Federal Reserve may find it harder to declare victory over inflation. Diamondback’s comments point toward sustained upward pressure on prices, increasing the possibility that interest rates rise sooner than markets currently expect.
Key Takeaway In short, Diamondback’s quarterly results were impressive, but its outlook may matter even more. The company’s earnings release and shareholder letter argue that the Iran conflict didn’t simply create a temporary spike in oil prices — it permanently raised the market’s starting point by draining global inventories that now must be rebuilt.
Granted, peace negotiations could eventually restore more supply. Regardless, rebuilding millions of barrels of depleted inventories will take time, supporting crude prices well above pre-war levels. For investors, that favors efficient energy producers like Diamondback. For consumers, it suggests expensive gasoline — and the inflation pressure that comes with it — may be the new normal.
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Diamondback Energy vykázala za čtvrtletí zisk na akcii 6,48 USD a tržby 5,56 miliardy USD, obojí nad odhady. Akcie jsou od začátku roku výše asi o 35 %.
Diamondback Energy (FANG - Free Report) came out with quarterly earnings of $6.48 per share, beating the Zacks Consensus Estimate of $5.96 per share. This compares to earnings of $2.67 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.73%. A quarter ago, it was expected that this energy exploration and production company would post earnings of $3.55 per share when it actually produced earnings of $4.23, delivering a surprise of +19.15%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Diamondback, which belongs to the Zacks Oil and Gas - Exploration and Production - United States industry, posted revenues of $5.56 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 16.82%. This compares to year-ago revenues of $3.68 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Diamondback shares have added about 35% since the beginning of the year versus the S&P 500's gain of 9.4%.
What's Next for Diamondback?While Diamondback has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Diamondback was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.28 on $4.26 billion in revenues for the coming quarter and $18.90 on $18.37 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Oil and Gas - Exploration and Production - United States is currently in the bottom 13% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Magnolia Oil & Gas Corp (MGY - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.
This company is expected to post quarterly earnings of $0.90 per share in its upcoming report, which represents a year-over-year change of +109.3%. The consensus EPS estimate for the quarter has been revised 24% lower over the last 30 days to the current level.
Magnolia Oil & Gas Corp's revenues are expected to be $440.11 million, up 38% from the year-ago quarter.
Diamondback Energy ve 2. čtvrtletí poprvé v historii překročila 1 milion BOE denně, když celková produkce dosáhla 1 018 MBOE/d. Firma zároveň zvýšila celoroční výhled těžby ropy i celkové produkce.
This letter is meant to be a supplement to our earnings release and is being furnished to the Securities and Exchange Commission (SEC) and released to our stockholders simultaneously with our earnings release. Please see the information regarding forward-looking statements and non-GAAP financial information included at the end of this letter.
Macro Update
The disruption of oil flows through the Strait of Hormuz has triggered the largest supply shock in the history of the global oil market. Global oil production in May was estimated to be 13.6 million barrels per day below pre-conflict levels, with global observed inventories drawing an estimated 143 million barrels in the month1. As a result, prices spiked and volatility surged.
Diamondback responded to this price signal by leveraging our significant inventory of drilled but uncompleted wells. We were able to quickly add an additional completion crew and immediately brought incremental barrels to market, adding significant cash flow and value for our stockholders.
Today, the macro backdrop remains highly volatile. Oil flows are recovering in fits and starts with significant future uncertainty. The supply shock drove record global inventory draws, averaging an estimated 3.8 million barrels per day from the onset of the conflict and accelerating to an estimated 4.6 million barrels per day in May2. These draws will eventually have to reverse, and we believe the restocking required to rebuild global inventories has structurally raised the floor for oil prices compared to pre-conflict prices. The timing of the eventual supply normalization is impossible to predict and we therefore expect this volatility to continue. Through this volatility, our priorities remain unchanged: execute with the best capital efficiency in the industry and allocate Free Cash Flow appropriately to maximize long-term stockholder value.
1 Source: International Energy Agency, Oil Market Report – June 2026 (June 17, 2026).
2 Inventory figures reflect International Energy Agency's preliminary estimates of observed global stocks.
Second Quarter 2026 Operational Performance
Second quarter oil production averaged 525 MBO/d, 1% above what we produced in the first quarter and at the top end of our guidance range. Total production for the quarter averaged 1,018 MBOE/d, putting Diamondback’s average production above one million barrels of oil equivalent per day for the first time in our Company’s history.
We are honored to join the million barrel of oil equivalent per day “club” as an independent oil and gas company born and raised in Midland, Texas. It was just 2012 when Diamondback was barely producing 3,000 BOE/d from vertical Wolfberry wells. That same year, Diamondback launched a failed sales process. In fact, we received zero bids from eight potential suitors, forcing us to go public as our only viable strategic alternative. Those early days formed our identity and ingrained the unique culture we still have today. I, and all our employees, owe a debt of gratitude to the founders who took a chance on building this company; our success is directly attributable to the decisions they made back then.
As a result of our year-to-date volume outperformance, we are raising full-year oil production guidance to 522+ MBO/d (from 520+) and total production guidance to 1,000+ MBOE/d (from 972+). Our full-year capex guidance remains unchanged at approximately $3.90 billion.
Cash capital expenditures for the quarter were $996 million, in line with guidance. While we have not seen significant service cost inflation to date outside of fuel and fuel-adjacent costs, we expect to see inflation on fixed costs (such as casing) through the rest of this year and into 2027 as we anticipate activity levels and rig count in the Permian Basin to grow. We have a track record of offsetting inflation with efficiency gains in the field and we will challenge our teams to do so again during this cycle.
Lease operating expense declined in the second quarter to $5.96 per BOE from $6.21 in the first quarter as the team did a great job minimizing both production downtime and our backlog ratio. Additionally, cash G&A fell to $0.52 per BOE from $0.65 per BOE in the first quarter. Together these improvements brought total cash operating expense to $10.96 per BOE, down ~3% quarter over quarter.
Our operations teams delivered another strong quarter while managing a meaningful step-up in activity. The team drilled its longest well ever at a record 31,465' total depth, drilled the three lowest-cost Wolfcamp D wells in our history and executed our first six U-turn wells (3-mile laterals, 1.5 miles out and back). Completions delivered its first full quarter of continuous pumping with 21.3 hours of average pumping time per day which translated to an average of ~4,700 lateral feet completed per day. Equipment cost per well fell ~14% quarter over quarter, and our gas offload strategy contributed to an estimated ~24% reduction in flaring quarter over quarter, helping protect ~1,400 MBO of oil that would otherwise have been choked back due to takeaway constraints.
We continue to test and develop our chemical Enhanced Oil Recovery program, and the early results have us increasingly excited about the opportunity ahead. Our second batch of well tests is currently flowing back with encouraging results, building on the momentum of our pilot 50-well program that we completed in the second half of 2025. We believe improving oil recovery factors across the Permian Basin is one of the most important frontiers emerging in our industry today. Unlocking even a fraction more of the barrels in place beneath our thousands of producing wells represents one of the highest-return uses of capital available anywhere in our business. A modest uplift in recovery factor, applied across a well base of this scale, has the potential to rival the value created by the drillbit itself without adding a single new location to our inventory.
We intend to be on the front foot here: not only learning and testing new methods, but also positioning ourselves to invest behind them with conviction as the data set matures. We are building the technical foundation today to deploy capital across these opportunities at scale tomorrow. The durability and low cost of our inventory are precisely what afford us the flexibility to pursue this next leg of value creation at our own pace.
Second Quarter 2026 Financial Performance
We generated $3.6 billion in net cash from operating activities in the second quarter, which translated to $2.3 billion of Free Cash Flow and Adjusted Free Cash Flow.
Per-share growth through the commodity price cycles remains a core tenet of our value proposition, and nothing demonstrates this better than the nearly two years since closing the Endeavor merger. Comparing the second quarter of 2026 to the second quarter of 2024: net cash provided by operating activities per share has grown 49%, Free Cash Flow per share has grown 81% and oil production per share has grown 21%. These results extend a decade of compounding per-share metrics: net cash provided by operating activities per share has grown roughly nineteen-fold since 2016, oil production and reserves per share have more than quadrupled and the dividend has compounded 8.8 times since its 2018 initiation.
Gas Monetization
Second quarter gas realizations were negative $2.15/Mcf (pre-hedge), a direct consequence of insufficient takeaway capacity trapping gas in West Texas. This issue was compounded by spring pipeline maintenance that drove Waha pricing to a record low of approximately negative $10/Mcf. The basis hedges we layered on over the last couple years helped insulate us from this negative pricing complex, but we did not exit the quarter unscathed. With new takeaway capacity coming online, Waha turned positive in July and has held up since, setting up what we view as a meaningful tailwind for the coming years.
To combat the persistent gas takeaway issues in the Permian Basin, we have deliberately been building in optionality for our gas molecules. We have significantly increased our pipeline capacity via commitments to multiple long-haul pipelines to the Gulf Coast while also working to develop local paths to in-basin demand. Our additional secured takeaway capacity is expected to more than double our long-haul takeaway by the end of this year, structurally shifting our price exposure toward larger demand hubs.
We believe in the long-term thesis for gas demand growth in this country, with both LNG buildout and power generation driving this need for incremental future supply. We always talk internally that the Permian “hasn’t even tried to produce gas yet,” and we think that still holds true today. Should there ever be a price signal calling for Permian gas growth, whether it be for power needs for AI data centers, LNG demand or simply replacing supply, we are confident the Permian Basin will be able to answer that call.
Over the past few months, we have been pleased to see announcements for sizable behind-the-meter data center buildouts in the Permian Basin. We continue to firmly believe the best way to assuage the public’s concerns on data centers and their potential impact on the average American’s energy affordability is to build them where energy (through the natural gas molecule) and land are abundant. There is no better place in the country to do this today than the Permian Basin. Diamondback continues to work on bringing additional gigawatt+ scale power opportunities to West Texas on our surface acreage. We have a large, shovel-ready project that we are working to bring to fruition and will provide more detail when we have a signed long-term contract with a credible counterparty.
Capital Allocation
Last quarter, we emphasized that maximizing flexibility for the allocation of Free Cash Flow is paramount to long-term value creation in a cyclical, commodity-based business. The second quarter proved this point. By removing our prior formulaic return of capital framework, we were able to materially accelerate absolute debt reduction. We reduced consolidated total debt by approximately $1.3 billion quarter over quarter to $12.8 billion, and consolidated net debt by approximately $1.6 billion quarter over quarter to $12.3 billion. In the last 12 months, we have reduced our consolidated total debt by $2.6 billion, or ~17%, and our consolidated net debt by $2.8 billion, or ~19%. We expect to continue to prioritize debt reduction and use excess Free Cash Flow to improve the balance sheet.
Today, we also announced that our Board of Directors has approved the doubling of our share repurchase authorization to $16.0 billion. Since initiating our buyback program in 2021, we have repurchased ~43 million shares for $6.1 billion at an average price of $142.44 per share. Today’s increased authorization provides significant capacity and flexibility to opportunistically repurchase our shares when they are trading below our view of per share value at a conservative mid-cycle oil price with a rate of return above our implied cost of capital.
For example, during the second quarter, we repurchased approximately 756,000 shares for $141 million at an average price of $186.63 per share. As the share price weakened early in the third quarter, we increased our pace, repurchasing 547,716 additional shares for $100 million at an average price of approximately $182.32 per share. This is exactly how the program is set to work: maximize flexibility to step in when volatility creates opportunity.
Closing
During the second quarter, we were able to move quickly to take advantage of an elevated oil pricing environment. Our operations team demonstrated why they are the best in the business, putting us in an advantaged position to bring forward material value on our differentiated asset base. We were able to generate significant Free Cash Flow, allocate it appropriately and continue to create stockholder value for you, the owners of the Company.
As always, we are grateful for the trust you have placed in us and thank you for your interest in Diamondback Energy.
Sincerely,
Kaes Van't Hof
Chief Executive Officer and Director
This letter 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 Diamondback's subsidiary, Viper Energy, Inc. (“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 letter, 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) as they relate to Diamondback 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 sector; 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-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 letter 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.
Non-GAAP Financial Measures
This letter includes financial information not prepared in conformity with generally accepted accounting principles (GAAP), such as Free Cash Flow, Free Cash Flow per share, Adjusted Free Cash Flow, and net debt. The non-GAAP information should be considered by the reader in addition to, but not instead of, financial information prepared in accordance with GAAP. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in Diamondback's quarterly results, which are posted on Diamondback's website at www.diamondbackenergy.com/investors and included as Exhibit 99.1 to the Current Report on Form 8-K filed by Diamondback with the SEC that also includes this letter as Exhibit 99.2. Furthermore, this letter includes or references certain forward-looking, non-GAAP financial measures. Because Diamondback provides these measures on a forward-looking basis, it cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP financial measures, such as future impairments and future changes in working capital. Accordingly, Diamondback is unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Diamondback believes that these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing Diamondback's forecasted financial performance to the forecasted financial performance of other companies in the industry.
Diamondback Energy (FANG) má výsledky za 2. čtvrtletí 2026 oznámit 3. srpna; konsensus čeká zisk 6,08 USD na akcii a výnosy 4,8 mld. USD. Firma čelila slabým cenám plynu a vyšším nákladům, ale podpořila ji silnější těžba ropy a zajištění.
Key Takeaways Diamondback reports Q2 2026 results on Aug. 3, with consensus estimates of $6.08 EPS and $4.8B in revenues.FANG faced weak gas prices and higher costs, though hedging and stronger oil production supported performance.Diamondback boosted activity with more rigs and AI-driven optimization while maintaining capital discipline. Diamondback Energy (FANG - Free Report) is set to release second-quarter 2026 results on Aug. 3. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $6.08 per share on revenues of $4.8 billion.
Let’s delve into the factors that might have influenced the Permian-focused oil and gas producer’s performance in the June quarter. But it’s worth taking a look at FANG’s previous-quarter performance first.
Highlights of Q1 Earnings & Surprise HistoryIn the last reported quarter, this Midland, TX-based upstream player reported adjusted earnings per share of $4.23, which beat the Zacks Consensus Estimate of $3.55, driven by strong production. Revenues of $4.2 billion also topped the consensus estimate by 10.6%.
FANG beat the Zacks Consensus Estimate in three of the last four quarters and missed in one, delivering an average surprise of 5.3%. This is depicted in the graph below:
Trend in Estimate RevisionThe Zacks Consensus Estimate for the second-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 127.7% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 31.1% increase from the year-ago period.
Factors to Consider for FANG’s Q2 PerformanceDiamondback is a leading pure-play Permian Basin operator recognized for its low-cost production, capital discipline and shareholder-friendly approach. Its high-quality, high-margin asset base enables the company to generate robust free cash flow across commodity cycles. Diamondback held around 3,618 million barrels of oil equivalent in proved reserves, and its average daily output totaled 921 thousand barrels of oil equivalent per day in 2025.
Diamondback could face softer second-quarter results despite a favorable oil backdrop. Deeply negative Waha natural gas prices likely pressured realized gas and NGL pricing, forcing the company to temporarily curtail roughly 2,000-3,000 barrels of daily production on economic grounds. While management raised activity by adding rigs and a fifth completion crew, higher operating activity may have lifted production-related costs before the associated volumes fully contributed. FANG also acknowledged continued macro uncertainty, making production decisions quarter by quarter. In addition, ongoing investments in Barnett development and debt reduction priorities could have limited the immediate benefit of elevated commodity prices on quarterly earnings. Our model suggests that the company’s total costs and expenses are expected to have increased to $4.3 billion from the year-ago level of $2.5 billion, weighing on its earnings in the to-be-reported quarter.
However, on a bullish note, Diamondback’s strong well performance, reduced production downtime through automation and AI-driven optimization, and improved completion designs continued to enhance operational efficiency. Management increased activity with additional rigs and a fifth frac crew while maintaining capital discipline, positioning the company for higher oil production. Robust oil prices, effective crude marketing and extensive hedging against weak gas prices should have further supported cash flows and operating performance in the quarter to be reported.
What Does Our Model Say About FANG?Our proven model does not predict an earnings beat for Diamondback this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.
FANG presently has an Earnings ESP of -0.84% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable CombinationHere are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.
Riley Exploration Permian, Inc. (REPX - Free Report) currentlyhas an Earnings ESP of +6.63% and a Zacks Rank #3. Itis scheduled to release earnings on Aug. 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
REPX beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other, with the average being 22.3%. Valued at around $740.3 billion, Riley Exploration’s shares have gained 18.1% in a year.
Magnolia Oil & Gas Corporation (MGY - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank #3 at present. The firm is scheduled to release earnings on Aug. 5.
For 2026, MGY has a projected earnings growth rate of 50.3%. Valued at nearly $4.4 billion, Magnolia’s shares have lost 4.8% in a year.
Permian Resources Corporation (PR - Free Report) currently has an Earnings ESP of +0.77% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.
For 2026, PR has a projected earnings growth rate of 35.7%. Valued at nearly $17 billion, Permian Resources’ shares have rallied 36.8% in a year.
Diamondback Energy (FANG) v posledním obchodní seanci oslabila o 2,47 % na 182,00 USD, zatímco S&P 500 přidal 0,81 %. Akcie za poslední měsíc ztratily 5,06 %.
In the latest close session, Diamondback Energy (FANG - Free Report) was down 2.47% at $182.00. The stock's performance was behind the S&P 500's daily gain of 0.81%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 1.3%.
Shares of the energy exploration and production company witnessed a loss of 5.06% over the previous month, trailing the performance of the Oils-Energy sector with its loss of 3.61%, and the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Diamondback Energy in its upcoming earnings disclosure. The company's earnings report is set to go public on August 3, 2026. It is anticipated that the company will report an EPS of $5.84, marking a 118.73% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $4.75 billion, up 29.28% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.33 per share and revenue of $17.9 billion. These totals would mark changes of +44.58% and +19.13%, respectively, from last year.
Any recent changes to analyst estimates for Diamondback Energy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.62% lower within the past month. Currently, Diamondback Energy is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Diamondback Energy has a Forward P/E ratio of 9.65 right now. For comparison, its industry has an average Forward P/E of 9.61, which means Diamondback Energy is trading at a premium to the group.
The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 29% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
