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Key Takeaways WTI crude above $95 is supporting Permian producers as EIA sees basin output rising this year.Diamondback Energy says its roughly 8,854 Permian locations remain economical at $50 oil.ExxonMobil and Chevron are using technology and scale in the Permian to boost recovery and production. Oil prices have been making headlines, as the Iran war shock has pushed commodity prices back toward their glory days. Although the tensions have made the stock market highly uncertain, energy stocks have retained their appeal. Is it time to keep an eye on stocks such as Diamondback Energy, Inc. (FANG - Free Report) , ExxonMobil Holdings Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) ?

High Oil Price to Aid Permian Producers?West Texas Intermediate (“WTI”) crude is trading at more than the $95-per-barrel mark. The high prices are being driven by intensifying conflicts in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $80.88 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting exploration and production activities.

In this regard, the upstream players that are operating in the Permian, the most prolific basin in the United States, are likely to continue to gain from the ongoing strength in oil prices. In the outlook, EIA estimated that total crude oil production in the Permian would be 6.78 million barrels per day this year, higher than 6.60 million barrels per day last year.

Thus, with high prices of the commodity, production will likely increase in the most prolific basin, aiding the bottom lines of explorers and producers operating in the basin.

3 Permian Players to GainDiamondback Energy is a well-known name among pure-play Permian players. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. The upstream energy major mentioned that those wells are economical even if the price of oil fell to $50 per barrel. Thus, with premium drilling inventories and an investment-grade balance sheet, Diamondback Energy, carrying a Zacks Rank #3 (Hold), is likely to capitalize on the ongoing strength of oil prices.

ExxonMobil has a strong footprint in the Permian. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries. With the acquisition of Pioneer Natural Resources in 2024, XOM enhanced its footprint in the basin, further strengthening its production outlook while realizing significant cost synergies. Thus, XOM, with a Zacks Rank of 3, is also well poised to gain like FANG. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in the Permian, Zacks #3 Ranked CVX has been able to generate more production while employing lower capital spending, thanks to advanced drilling techniques. Chevron added that to increase its oil and gas volumes, it is now employing significantly fewer rigs. Thus, like XOM and FANG, CVX is also strongly positioned now.

Diamondback Energy remains a Buy, trading at a conservative valuation with continued operational excellence and strong management. FANG reported a robust quarter, beating EPS and revenue estimates, with $2.33B Q2 Adj. FCF and $4.07B in H1, supporting buybacks and dividends alongside significant debt repayments. The Bryant Ranch project positions FANG to capitalize on data center energy demand, allocating 14–18% of gas output and enhancing midstream economics.

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Stock to Watch: Diamondback Energy (FANG - Free Report) Founded in 2007, Midland, TX-headquartered Diamondback Energy, Inc. is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 902,005 net acres. Its activities are concentrated in the Wolfcamp, Spraberry and Bone Spring formations.

FANG is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Oils-Energy stock. FANG has a Momentum Style Score of A, and shares are up 0.9% over the past four weeks.

Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.80 to $20.13 per share. FANG boasts an average earnings surprise of +7.1%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, FANG should be on investors' short list.

Matthew Kaes Van'T Hof, Chief Executive Officer of Diamondback Energy, Inc. (FANG -1.42%), sold 10,000 shares of common stock on Aug. 20, 2026, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$2.1 millionShares sold (directly held)10,000Post-transaction shares (directly held)~116,000Post-transaction value$24.47 millionTransaction value based on SEC Form 4 weighted average sale price ($214.66); post-transaction value based on Aug. 20, 2026, market close ($211.02).

Key questionsWhat were the execution details of this sale?
The shares were sold in multiple transactions at prices ranging from $214.015 to $215.07 per share on Aug. 20, 2026, resulting in a weighted average price of $214.66.How much direct equity does the CEO retain in the firm?
Following this transaction, Matthew Kaes Van'T Hof directly holds ~116,000 shares of common stock, representing a total beneficial ownership stake of 0.0412%.What is the current market valuation and operational scale of the company?
As of the Aug. 21, 2026 market close, the Midland-based energy firm maintains a market capitalization of $59.3 billion and generated trailing-twelve-month revenue of $17.1 billion.In what pricing context did this transaction occur?
The sale was executed at $214.66, approximately 53% higher than its level one year prior to the transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-21)$210.72Market Capitalization$59.3 billionRevenue (TTM)$17.1 billionNet Income (TTM)$1.6 billionCompany SnapshotDiamondback Energy engages in the acquisition, development, exploration, and production of unconventional and onshore oil and natural gas reserves, with primary operations concentrated in the Permian Basin across West Texas and New Mexico, targeting formations including the Spraberry, Wolfcamp, and Bone Spring.The company generates revenue through the extraction and sale of crude oil and natural gas, operating an integrated upstream business model that captures value across the full hydrocarbon production lifecycle, from exploration through commercialization.Diamondback serves global energy markets and downstream customers, including refineries, petrochemical facilities, and energy traders, positioning itself within the broader crude oil and natural gas supply chain serving industrial and commercial end-users.Diamondback Energy operates as a mid-cap independent oil and gas exploration and production company with significant scale, commanding a $59.3 billion market capitalization and generating $17.1 billion in TTM revenue. The company's competitive positioning is anchored by its substantial acreage position in the Permian Basin, one of the world's most prolific and lowest-cost hydrocarbon production regions, enabling operational efficiency and margin expansion. With a 53.06% one-year stock price appreciation, Diamondback has demonstrated strong capital appreciation, reflecting both commodity price dynamics and operational execution within the energy sector.

What this transaction means for investorsInsider transactions aren't the final word on a stock. In fact, many occur for reasons having little, if anything, to do with a company's performance. Insiders sell as part of pre-arranged sales plans, for tax withholding, and for estate planning, for example. Therefore, investors should always return to a company's fundamentals to get a true measure of how it is performing -- and whether it is a smart investment. With that in mind, let's have a look at Diamondback Energy (FANG).

Firstly, FANG has performed very well over the last few years. Since 2021, FANG has generated a total return of 238%, equating to a compound annual growth rate (CAGR) of 27.6%. That's well ahead of the S&P 500, which has delivered a total return of 84% over this same period, with a CAGR of 12.9%.

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One reason FANG has performed so well is that it is a cash-flow juggernaut. The company has grown its free cash flow from just under $2.0 billion in 2021 to nearly $6.5 billion now. In turn, FANG has delivered massive shareholder returns through two mechanisms. First, it has aggressively bought back its own shares. Second, it has increased its dividend; its dividend yield now stands at 2.1%.

All in all, FANG is an energy stock worth considering, given its solid long-term performance and steady cash flow.

Key Takeaways Permian producers stand to gain as WTI trades above $80 and basin output is projected to rise this year.Diamondback Energy estimates 8,854 gross Permian drilling locations, with wells economical at $50 oil.ExxonMobil and Chevron use technology and scale in the Permian to boost recoveries and production. Oil prices have been making newspaper headlines, as the Middle East conflict has pushed commodity prices higher and kept them elevated. Although the tensions have made the stock market highly uncertain, energy stocks have retained their appeal. Diamondback Energy, Inc. (FANG - Free Report) , ExxonMobil Holdings Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) are some players that are likely to gain amid this backdrop.

High Oil Price: Sweet Spot for Permian Producers?West Texas Intermediate (“WTI”) crude is trading above $80 per barrel. The high prices are being driven by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $80.88 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting exploration and production activities.

In this regard, the upstream players that are operating in the Permian, the most prolific basin in the United States, are likely to continue to gain from the ongoing strength in oil prices. In the outlook, EIA estimated that total crude oil production in the Permian would be 6.78 million barrels per day this year, higher than 6.60 million barrels per day last year.

Thus, with high prices of the commodity, production will likely increase in the most prolific basin, aiding the bottom lines of explorers and producers operating in the basin.

3 Permian Players in the SpotlightDiamondback Energy is a well-known pure-play Permian player. In the prolific basin, FANG has a huge and high-quality drilling site, with the company estimating it at roughly 8,854 gross locations. The upstream energy major mentioned that those wells are economical even if the price of oil fell to $50 per barrel. Thus, with premium drilling inventories and an investment-grade balance sheet, Diamondback Energy, carrying a Zacks Rank #3 (Hold), is likely to capitalize on the ongoing strength of oil prices.

ExxonMobil has a strong footprint in the Permian and is among the key assets that the energy major believes will contribute to its long-term production growth. In the Permian, the integrated giant has been employing lightweight proppant technology and hence has been capable of boosting its well recoveries. With the acquisition of Pioneer Natural Resources in 2024, XOM enhanced its footprint in the basin, further strengthening its production outlook while realizing significant cost synergies. Thus, XOM, with a Zacks Rank of 3, is well-positioned to gain like FANG. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chevron also has a strong footprint in the Permian. CVX mentioned that it has an interest in one of every five wells in the most prolific basin. Over the years, while growing its operations in the Permian, Zacks #3 Ranked CVX has been able to generate more production while using lower capital spending, thanks to advanced drilling techniques.  Thus, like XOM and FANG, CVX is also strongly placed now.

Callan Family Office LLC purchased a new stake in Diamondback Energy, Inc. (NASDAQ: FANG) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm purchased 12,186 shares of the oil and natural gas company's stock, valued at approximately $2,142,000. A

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.

See Also Five stocks we like better than Diamondback Energy Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding FANG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Diamondback Energy, Inc. (NASDAQ:FANG – Free Report).

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Capital Financial Group Inc. Co. ADV purchased a new position in Diamondback Energy, Inc. (NASDAQ: FANG) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 3,891 shares of the oil and natural gas company's stock, valued at approximately

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.

For the quarter ended June 2026, Diamondback Energy (FANG - Free Report) reported revenue of $5.56 billion, up 51.2% over the same period last year. EPS came in at $6.48, compared to $2.67 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $4.76 billion, representing a surprise of +16.82%. The company delivered an EPS surprise of +8.73%, with the consensus EPS estimate being $5.96.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Diamondback performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average daily production / Daily combined volumes: 1,017,659.00 BOE/D compared to the 976,804.50 BOE/D average estimate based on eight analysts.Average Prices - Natural gas liquids, hedged: $/18.56 compared to the $/20.01 average estimate based on five analysts.Average Prices - Oil -hedged: $/94.33 compared to the $/95.31 average estimate based on five analysts.Average Prices - Natural gas, hedged: $-0.34 per thousand cubic feet versus $0.18 per thousand cubic feet estimated by five analysts on average.Average Prices - Natural gas liquids: $/18.56 versus $/20.61 estimated by four analysts on average.Total Production Volume - Natural gas liquids: 23,436.00 MBBL versus 21,440.35 MBBL estimated by four analysts on average.Total Production Volume - Natural gas: 128,279.00 MMcf compared to the 118,874.10 MMcf average estimate based on four analysts.Total Production Volume - Oil: 47,791.00 MBBL compared to the 47,491.60 MBBL average estimate based on four analysts.Revenues- Oil, natural gas and natural gas liquid: $4.79 billion versus the five-analyst average estimate of $4.6 billion. The reported number represents a year-over-year change of +44.3%.Revenues- Oil sales: $4.63 billion compared to the $4.17 billion average estimate based on four analysts. The reported number represents a change of +62.2% year over year.Revenues- Natural gas liquid sales: $435 million versus $444.33 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +18.5% change.Revenues- Natural gas sales: $-276 million versus $-71.41 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -384.5% change.View all Key Company Metrics for Diamondback here>>>

Shares of Diamondback have returned +4.2% over the past month versus the Zacks S&P 500 composite's +2.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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%.

HomeEarnings AnalysisEnergy Analysis

SummaryDiamondback Energy, Inc. is rated Buy with a $275 price target, supported by resilient oil prices and improving gas market fundamentals.FANG benefits from global oil supply disruptions and is poised for production growth, with forecasted 6-7% output increase in e2h26.Midstream gas constraints pressured Q2 gas prices, but new pipeline capacity and rising power demand are expected to drive future gas price recovery.FANG's capital allocation prioritizes debt reduction and steady dividends, while opportunistically repurchasing shares through the pricing cycle. Artystarty/iStock via Getty Images

Diamondback Energy, Inc. (FANG) experienced strong oil price support in Q2 ’26, driven by global production constraints in the Middle East. With approximately 20% of global production stranded due to the closure of the Strait of Hormuz, oil prices

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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

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.

Think high gas prices are just a phase? Think again. A permanent supply shock has rewritten the global market, turning massive producer profits into a long-term tax on your wallet. © 24/7 Wall St. Management Thinks Oil Has Changed Permanently The more important message came in CEO Kaes Van’t Hof’s shareholder letter. He called the Iran conflict “the largest supply shock in the history of the global oil market.” According to Diamondback, global production fell by 13.6 million barrels per day, while worldwide inventories declined by an estimated 3.8 million barrels per day after the conflict began, accelerating to roughly 4.6 million barrels per day in May.

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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Contact [email protected] for any questions or corrections.

For the quarter ended June 2026, Diamondback Energy (FANG - Free Report) reported revenue of $5.56 billion, up 51.2% over the same period last year. EPS came in at $6.48, compared to $2.67 in the year-ago quarter.

The reported revenue represents a surprise of +16.82% over the Zacks Consensus Estimate of $4.76 billion. With the consensus EPS estimate being $5.96, the EPS surprise was +8.73%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Diamondback performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average daily production / Daily combined volumes: 1,017,659.00 BOE/D versus the eight-analyst average estimate of 976,804.50 BOE/D.Average Prices - Natural gas liquids, hedged: $/18.56 versus the five-analyst average estimate of $/20.01.Average Prices - Oil -hedged: $/94.33 versus $/95.31 estimated by five analysts on average.Average Prices - Natural gas, hedged: $-0.34 per thousand cubic feet versus $0.18 per thousand cubic feet estimated by five analysts on average.Average Prices - Natural gas liquids: $/18.56 compared to the $/20.61 average estimate based on four analysts.Total Production Volume - Natural gas liquids: 23,436.00 MBBL compared to the 21,440.35 MBBL average estimate based on four analysts.Total Production Volume - Natural gas: 128,279.00 MMcf versus the four-analyst average estimate of 118,874.10 MMcf.Total Production Volume - Oil: 47,791.00 MBBL compared to the 47,491.60 MBBL average estimate based on four analysts.Total Production Volume (Combined volumes): 92,607.00 MBOE versus 88,744.43 MBOE estimated by four analysts on average.Average Prices - Oil: $/96.82 versus the four-analyst average estimate of $/88.82.Average Prices - Natural gas: $-2.15 per thousand cubic feet versus the four-analyst average estimate of $-1.45 per thousand cubic feet.Revenues- Oil, natural gas and natural gas liquid: $4.79 billion compared to the $4.6 billion average estimate based on five analysts. The reported number represents a change of +44.3% year over year.View all Key Company Metrics for Diamondback here>>>

Shares of Diamondback have returned +18% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

MIDLAND, Texas, Aug. 03, 2026 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback,” “we,” “our” or the “Company”) today announced financial and operating results for the second quarter ended June 30, 2026.

SECOND QUARTER 2026 HIGHLIGHTS

Average oil production of 525 MBO/dProduction of 1,018 MBOE/d, surpassing the 1.0 million barrels of oil equivalent per day milestoneNet cash provided by operating activities of $3.6 billion; Operating Cash Flow Before Working Capital Changes1 of $3.3 billionCash capital expenditures of $996 millionFree Cash Flow1 and Adjusted Free Cash Flow1 of $2.3 billionRepurchased 756,385 shares of common stock for approximately $141 millionDeclared base cash dividend of $1.10 per share2Reduced total debt by ~$1.3 billion quarter over quarter to $12.8 billion and net debt1 by ~$1.6 billion quarter over quarter to $12.3 billion ________________________________ 
1 NON-GAAP DISCLOSURES - For a definition of Operating Cash Flow Before Working Capital Changes, Free Cash Flow, Adjusted Free Cash Flow, Adjusted Net Income, Adjusted EBITDA, Adjusted Net Income per Diluted Share, Net Debt and reconciliations of such non-GAAP financial metrics to their respective most directly comparable GAAP metrics, please see “Non-GAAP Financial Measures” below.
2 Implies a 2.2% annualized yield. Cash dividend payable on August 20, 2026; annualized yield based on July 31, 2026 closing share price of $202.95.

UPDATED 2026 GUIDANCE HIGHLIGHTS

Increasing annual oil production guidance to 522+ (from 520+) MBO/d and total BOE production to 1,000+ (from 972+) MBOE/d with full year cash capital expenditures unchanged at ~$3.9 billionQ3 2026 oil production guidance of 517 - 527 MBO/d (995 - 1,015 MBOE/d)Q3 2026 cash capital expenditures guidance of $950 - $1,050 million RECENT HIGHLIGHTS

Repurchased 547,716 shares of common stock in Q3 2026 (to date) for approximately $100 millionIn July, the Board of Directors (the “Board”) doubled the Company's share repurchase authorization to $16.0 billion from $8.0 billion previously. Approximately $9.9 billion remains available for future repurchases under the program SECOND QUARTER 2026 OPERATIONS UPDATE

The following tables provide a summary of Diamondback’s key operational updates:

Wells Drilled and Completed:

 Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Drilled Completed Drilled Completed Gross Net Gross Net Gross Net Gross NetTotal97 89 168 157 215 200 315 294 Gross Wells Drilled and Completed By Zone:

 Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Number of Wells
Drilled Number of Wells
Completed Number of Wells
Drilled Number of Wells
CompletedMidland Basin:       Upper Spraberry2 1 3 3Middle Spraberry6 13 13 20Jo Mill22 31 38 62Lower Spraberry16 31 40 63Dean1 5 2 11Wolfcamp A20 38 46 69Wolfcamp B16 41 45 71Wolfcamp D7 7 18 15Barnett7 1 10 1Midland Basin Total97 168 215 315        Average Completed Lateral Length (in feet)  11,983   11,679 Realized Average Prices:

 Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025Oil ($ per Bbl)$96.82  $73.47 $63.23Natural gas ($ per Mcf)$(2.15) $0.18 $0.88Natural gas liquids ($ per Bbl)$18.56  $16.68 $18.13Combined ($ per BOE)$51.68  $43.40 $39.61      Oil, hedged ($ per Bbl)(1)$94.33  $72.53 $62.34Natural gas, hedged ($ per Mcf)(1)$(0.34) $1.90 $1.45Natural gas liquids, hedged ($ per Bbl)(1)$18.56  $16.68 $18.13Average price, hedged ($ per BOE)(1)$52.90  $45.21 $39.89 (1) Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.

Average Cash Costs per BOE:

 Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025Lease operating expenses$5.96 $6.21 $5.26Production and ad valorem taxes 3.26  3.04  2.56Gathering, processing and transportation expense 1.22  1.36  1.73General and administrative - cash component 0.52  0.65  0.55Total operating expense - cash$10.96 $11.26 $10.10 FINANCIAL UPDATE

Earnings Attributable to Diamondback Energy, Inc.:

 Three Months Ended
June 30, 2026 (in millions, except per share amounts)Net income (loss) attributable to Diamondback Energy, Inc.$1,882Earnings (loss) per common share attributable to Diamondback Energy, Inc. - Diluted(1)$6.65Adjusted net income(1)$1,833Adjusted net income per common share - Diluted(1)$6.48 (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc., (ii) less the reallocation of $11 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods.

Cash Capital Expenditures:

 Three Months Ended June 30, Six Months Ended June 30, 2026
 2025
 2026
 2025
 (in millions)Operated drilling and completion additions to oil and natural gas properties$842 $707 $1,626 $1,571Non-operated additions to oil and natural gas properties and other 154  157  303  235Total$996 $864 $1,929 $1,806 Adjusted EBITDA and Free Cash Flow - Non-GAAP:

 Three Months Ended
June 30, 2026 Six Months Ended
June 30, 2026 (in millions)Net income (loss) attributable to Diamondback Energy, Inc.$1,882 $1,907Consolidated Adjusted EBITDA$3,940 $6,941Adjusted EBITDA attributable to Diamondback Energy, Inc.$3,549 $6,253Net cash provided by operating activities$3,589 $5,417Free Cash Flow$2,330 $4,035Adjusted Free Cash Flow$2,331 $4,068 Debt & Liquidity:

 June 30, 2026 (in millions)Standalone cash$385Borrowings outstanding under the credit facility$—Remaining availability under the credit facility(1)$3,000Total standalone liquidity$3,385Consolidated total debt$12,766Consolidated total net debt$12,304 (1) On June 12, 2026, the Company, as parent guarantor, entered into an amendment to its credit agreement, which increased total commitments from $2.5 billion to $3.0 billion, extended the maturity date from June 12, 2030 to June 12, 2031, and reduced applicable interest rates and certain fees.

RETURN OF CAPITAL UPDATE

Diamondback announced today that the Board declared a base cash dividend of $1.10 per common share for the second quarter of 2026, payable on August 20, 2026, to stockholders of record at the close of business on August 13, 2026.

Underscoring confidence in the Company's long-term outlook and commitment to shareholder returns, the Board of Directors on July 30, 2026 doubled Diamondback's share repurchase authorization to $16.0 billion (excluding excise tax), with approximately $9.9 billion remaining as of July 31, 2026. During the second quarter, the Company repurchased 756,385 shares of common stock for approximately $141 million at a weighted average price of $186.63 per share (excluding excise tax). The Company expects to continue repurchases opportunistically using cash on hand, free cash flow and potential asset sale proceeds. The program has no time limit and may be suspended, modified or discontinued at the Board’s discretion. Repurchases may be executed in privately negotiated or open-market transactions, consistent with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. All shares repurchased will be retired.

The table below summarizes Diamondback’s return of capital program, including dividends and share repurchases, with future actions subject to Board approval.

 Q2 2026 Q3 2026 to date Cumulative (in millions, except per share amounts, shares in thousands)Base dividend$1.10    Shares repurchased 756  548  42,992Weighted average repurchase price$186.63 $182.32 $142.44Total repurchase cost$141 $100 $6,124      Total return of capital$452     UPDATED 2026 GUIDANCE

Below is Diamondback's and Viper Energy, Inc.'s (“Viper”) updated guidance for the full year 2026, which includes third quarter production and capital guidance.

 2026 Guidance2026 Guidance Diamondback Energy, Inc.Viper Energy, Inc.   2026 Net production - MBOE/d1,000+ (from 972+)132.5 - 135.02026 Oil production - MBO/d522+ (from 520+)66.0 - 67.25Q3 2026 Oil production - MBO/d (total - MBOE/d)517 - 527 (995 - 1,015)67.5 - 68.5 (133.5 - 135.5)   Unit costs ($/BOE)  Lease operating expenses, including workovers$5.90 - $6.40 G&A  Cash G&A$0.55 - $0.65 (from $0.55 - $0.70)$0.70 - $0.90Non-cash equity-based compensation$0.20 - $0.30$0.10 - $0.20DD&A$13.50 - $14.50 (from $14.00 - $15.00)$14.75 - $17.25Interest expense (net of interest income)$0.50 - $0.70$1.90 - $2.40Gathering, processing and transportation$1.40 - $1.60 (from $1.50 - $1.70)    Production and ad valorem taxes (% of revenue)~7%~7%Corporate tax rate (% of pre-tax income)23%
 Cash tax rate (% of pre-tax income)(1)19% - 22% (from 18% - 21%)27% - 30%Q3 2026 Cash taxes ($ - million)$400 - $460    Cash Capital Budget ($ - million)  Operated drilling and completion~$3,310 2026 Total capital expenditures(2)~$3,900 Q3 2026 Capital expenditures$950 - $1,050    Average lateral length (Ft.)~12,900' Net lateral footage completed (1,000's of Ft.)6,100' - 6,500'  (1) Pre-tax income attributable to the Company is a non-GAAP measure. We are not able to forecast the most directly comparable GAAP measure - Income (loss) before income taxes - due to high variability and difficulty in predicting certain items that affect Income (loss) before income taxes, such as future commodity prices, pace of and costs of developing, producing and operating our interests in oil and natural gas properties, future changes in interest rates and various other business factors impacting our financial results.
(2) Includes non-operated drilling and completion, capital workovers, science, infrastructure, midstream and environmental.

CONFERENCE CALL

Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2026 on Tuesday, August 4, 2026 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site. Investors and others should note that Diamondback announces material financial and operational information to our investors using our investor relations website, press releases, SEC filings and public conference calls and webcasts. The information we post through our investor relations website may be deemed material. Accordingly, investors should monitor our investor relations website in addition to following our press releases, SEC filings and public conference calls and webcasts.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the Double Eagle acquisition, and the Sitio acquisition completed by Viper and other acquisitions, divestitures or reorganizations); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: geopolitics and market conditions, including changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers and any resulting trade tensions; actions taken by the members of OPEC and its non-OPEC allies (OPEC+) affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments; changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, and instability in the financial markets; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change, changing political and social perspectives on climate change and other environmental, social and governance factors, and risks from our publicly disclosed targets related to sustainability and emissions reduction initiatives; challenges in developing our existing leasehold acreage and finding, developing or acquiring additional reserves; restrictions on the use of water, including limits on the use of produced water and a moratorium on new produced water disposal well permits recently imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin; significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges; conditions in the capital, financial and credit markets, including the availability and pricing of capital for acquisitions, exploration and development operations; challenges with employee retention and an increasingly competitive labor market; changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services; changes in safety, health, environmental, tax and other regulations or requirements (including those addressing air emissions, water management, or the impact of global climate change); security threats, including cybersecurity threats and disruptions to our business and operations from breaches of our information technology systems, or from breaches of information technology systems of third parties with whom we transact business; lack of, or disruption in, access to adequate and reliable electrical power, internet and telecommunication infrastructure, information and computer systems, transportation, processing, storage and other facilities for our oil, natural gas and natural gas liquids; failures or delays in achieving expected reserve or production levels from existing and future oil and natural gas developments, including due to operating hazards, drilling risks, or the inherent uncertainties in predicting reserve and reservoir performance; inability to keep pace with technological developments in our industry; failure to meet our obligations under our oil purchase contracts; loss of one or more customers or their inability to meet their obligations; geographical concentration of our primary operations; risks from our return of capital commitment, and uncertainties over our future dividends and share repurchases; difficulty in obtaining necessary approvals and permits; severe weather conditions and natural disasters; changes in the financial strength of counterparties to our credit facilities and hedging contracts; our substantial indebtedness and restrictions to our operating and financial flexibility; changes in our credit rating; failure to identify, complete and successfully integrate acquisitions, including Viper’s Riverbend acquisition, the Double Eagle acquisition and Viper’s Sitio acquisition; the Endeavor stockholders’ ability to significantly influence our business and potential conflicts of interest; and other risks described in Part I, Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 25, 2026, and those risks disclosed in its subsequent filings on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this release or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

Diamondback Energy, Inc.Condensed Consolidated Statements of Operations(unaudited, $ in millions except per share data, shares in thousands)         Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Revenues:       Oil, natural gas and natural gas liquid sales$4,786  $3,316  $8,611  $6,973 Sales of purchased oil 739   335   1,124   709 Other operating income 37   27   67   44 Total revenues 5,562   3,678   9,802   7,726 Costs and expenses:       Lease operating expenses 552   440   1,099   848 Production and ad valorem taxes 302   214   570   442 Gathering, processing and transportation 113   145   233   256 Purchased oil expense 730   331   1,123   713 Depreciation, depletion, amortization and accretion 1,272   1,266   2,565   2,363 Impairment of oil and natural gas properties —   —   1,400   — General and administrative expenses 72   67   151   140 Other operating expenses, net 9   76   33   152 Total costs and expenses 3,050   2,539   7,174   4,914 Income (loss) from operations 2,512   1,139   2,628   2,812 Other income (expense):       Interest expense, net (56)  (56)  (119)  (96)Other income (expense), net (4)  2   3   37 Gain (loss) on derivative instruments, net 49   (197)  166   29 Gain (loss) on extinguishment of debt, net 134   55   133   55 Total other income (expense), net 123   (196)  183   25 Income (loss) before income taxes 2,635   943   2,811   2,837 Provision for (benefit from) income taxes 580   204   612   607 Net income (loss) 2,055   739   2,199   2,230 Net income (loss) attributable to non-controlling interest 173   40   292   126 Net income (loss) attributable to Diamondback Energy, Inc.$1,882  $699  $1,907  $2,104         Earnings (loss) per common share:       Basic$6.65  $2.38  $6.72  $7.20 Diluted$6.65  $2.38  $6.72  $7.20 Weighted average common shares outstanding:       Basic 281,202   292,135   281,993   290,880 Diluted 281,202   292,135   281,993   290,880  Diamondback Energy, Inc.Condensed Consolidated Balance Sheets(unaudited, in millions, except share amounts)     June 30, December 31,  2026   2025 Assets   Current assets:   Cash and cash equivalents ($77 million and $13 million related to Viper)$462  $104 Restricted cash 2   2 Accounts receivable:   Joint interest and other, net 261   258 Oil and natural gas sales, net ($461 million and $262 million related to Viper) 1,669   1,128 Inventories 67   86 Prepaid expenses and other current assets 189   337 Total current assets 2,650   1,915 Property and equipment:   Oil and natural gas properties:   Proved properties ($9,608 million and $9,746 million related to Viper) 74,385   71,588 Unproved properties ($4,545 million and $4,910 million related to Viper) 23,193   23,941 Other property, equipment and land 899   874 Accumulated depletion, depreciation, amortization and impairment ($2,856 million and $2,455 million related to Viper) (31,705)  (27,782)Property and equipment, net 66,772   68,621 Other assets 796   523 Total assets$70,218  $71,059 Liabilities and Stockholders’ Equity   Current liabilities:   Accounts payable and accrued capital expenditures 1,264   1,168 Current maturities of debt 1,548   763 Other accrued liabilities 883   1,108 Revenues and royalties payable 1,717   1,397 Derivative instruments 36   15 Income taxes payable 230   149 Total current liabilities 5,678   4,600 Long-term debt ($1,678 million and $2,186 million related to Viper) 11,066   13,726 Deferred income taxes 8,933   9,141 Other long-term liabilities 556   625 Total liabilities 26,233   28,092 Stockholders’ equity:   Common stock, $0.01 par value; 800,000,000 shares authorized; 280,567,508 and 284,594,908 shares issued and outstanding at June 30, 2026, and December 31, 2025, respectively 3   3 Additional paid-in capital 31,866   32,236 Retained earnings (accumulated deficit) 6,038   4,740 Accumulated other comprehensive income (loss) (7)  (7)Total Diamondback Energy, Inc. stockholders’ equity 37,900   36,972 Non-controlling interest 6,085   5,995 Total equity 43,985   42,967 Total liabilities and stockholders’ equity$70,218  $71,059  Diamondback Energy, Inc.Condensed Consolidated Statements of Cash Flows(unaudited, in millions)         Three Months Ended June 30, Six Months Ended June 30,  2026   2025   2026   2025 Cash flows from operating activities:       Net income (loss)$2,055  $739  $2,199  $2,230 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:       Provision for (benefit from) deferred income taxes 36   (24)  (206)  (18)Depreciation, depletion, amortization and accretion 1,272   1,266   2,565   2,363 Impairment of oil and natural gas properties —   —   1,400   — (Gain) loss on extinguishment of debt, net (134)  (55)  (133)  (55)(Gain) loss on derivative instruments, net (49)  197   (166)  (29)Cash received (paid) on settlement of derivative instruments 113   (37)  246   48 Other 33   20   59   54 Changes in operating assets and liabilities:       Accounts receivable 216   166   (563)  160 Accounts payable and accrued liabilities 53   (9)  (204)  (383)Income taxes payable (287)  (444)  —   (309)Revenues and royalties payable 254   (114)  324   (30)Other 27   (28)  (104)  1 Net cash provided by (used in) operating activities 3,589   1,677   5,417   4,032 Cash flows from investing activities:       Additions to oil and natural gas properties (996)  (864)  (1,929)  (1,806)Property acquisitions (438)  (3,125)  (752)  (3,875)Proceeds from sale of assets 53   16   657   57 Other (14)  (6)  (29)  (8)Net cash provided by (used in) investing activities (1,395)  (3,979)  (2,053)  (5,632)Cash flows from financing activities:       Proceeds from debt 3,765   5,145   6,290   8,622 Repayment of debt (4,923)  (3,869)  (8,047)  (6,407)Repurchased shares under repurchase program (141)  (398)  (180)  (973)Repurchased shares - related party —   —   (509)  — Repurchased shares/units under Viper’s repurchase program (131)  (10)  (228)  (10)Net proceeds from Viper’s issuance of common stock —   —   —   1,232 Proceeds from sale of Viper's common stock —   —   589   — Dividends paid to stockholders (310)  (291)  (605)  (581)Dividends to non-controlling interest (159)  (82)  (279)  (177)Other (7)  (13)  (37)  (49)Net cash provided by (used in) financing activities (1,906)  482   (3,006)  1,657 Net increase (decrease) in cash, cash equivalents and restricted cash 288   (1,820)  358   57 Cash, cash equivalents and restricted cash at beginning of period 176   2,041   106   164 Cash, cash equivalents and restricted cash at end of period$464  $221  $464  $221  Diamondback Energy, Inc.Selected Operating Data(unaudited)       Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025Production Data:     Oil (MBbls) 47,791   46,889  45,108Natural gas (MMcf) 128,279   118,402  110,119Natural gas liquids (MBbls) 23,436   21,519  20,248Combined volumes (MBOE)(1) 92,607   88,142  83,709      Daily oil volumes (BO/d) 525,176   520,989  495,692Daily combined volumes (BOE/d) 1,017,659   979,356  919,879      Average Prices:     Oil ($ per Bbl)$96.82  $73.47 $63.23Natural gas ($ per Mcf)$(2.15) $0.18 $0.88Natural gas liquids ($ per Bbl)$18.56  $16.68 $18.13Combined ($ per BOE)$51.68  $43.40 $39.61      Oil, hedged ($ per Bbl)(2)$94.33  $72.53 $62.34Natural gas, hedged ($ per Mcf)(2)$(0.34) $1.90 $1.45Natural gas liquids, hedged ($ per Bbl)(2)$18.56  $16.68 $18.13Average price, hedged ($ per BOE)(2)$52.90  $45.21 $39.89      Average Cash Costs ($/BOE):     Lease operating expenses$5.96  $6.21 $5.26Production and ad valorem taxes 3.26   3.04  2.56Gathering, processing and transportation expense 1.22   1.36  1.73General and administrative - cash component 0.52   0.65  0.55Total operating expense - cash$10.96  $11.26 $10.10      General and administrative - non-cash component$0.26  $0.25 $0.25Depreciation, depletion, amortization and accretion$13.74  $14.67 $15.12Interest expense, net$0.60  $0.71 $0.67 (1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
(2) Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest ("net income (loss)") before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, impairment of oil and natural gas properties, non-cash equity-based compensation expense, capitalized equity-based compensation expense, other non-cash transactions and provision for (benefit from) income taxes. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA is useful because the measure allows it to evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company excludes the items listed above from net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:

Diamondback Energy, Inc.Reconciliation of Net Income (Loss) to Adjusted EBITDA(unaudited, in millions)     Three Months Ended
June 30, 2026 Six Months Ended
June 30, 2026Net income (loss) attributable to Diamondback Energy, Inc.$1,882  $1,907 Net income (loss) attributable to non-controlling interest 173   292 Net income (loss) 2,055   2,199 Non-cash (gain) loss on derivative instruments, net 64   80 Interest expense, net 56   119 Depreciation, depletion, amortization and accretion 1,272   2,565 Depreciation and interest expense related to equity method investments 12   26 (Gain) loss on extinguishment of debt (134)  (133)Impairment of oil and natural gas properties —   1,400 Non-cash equity-based compensation expense 33   64 Capitalized equity-based compensation expense (9)  (18)Other non-cash transactions 11   27 Provision for (benefit from) income taxes 580   612 Consolidated Adjusted EBITDA 3,940   6,941 Less: Adjustment for non-controlling interest 391   688 Adjusted EBITDA attributable to Diamondback Energy, Inc.$3,549  $6,253  ADJUSTED NET INCOME

Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest ("net income (loss)") adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, impairment of oil and natural gas properties, other non-cash transactions and related income tax adjustments. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company's performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company's performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.

The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:

Diamondback Energy, Inc.Adjusted Net Income(unaudited, $ in millions except per share data, shares in thousands)   Three Months Ended June 30, 2026 Amounts Amounts Per
Diluted ShareNet income (loss) attributable to Diamondback Energy, Inc.(1)$1,882  $6.65 Net income (loss) attributable to non-controlling interest 173   0.62 Net income (loss)(1) 2,055   7.27 Non-cash (gain) loss on derivative instruments, net 64   0.23 (Gain) loss on extinguishment of debt (134)  (0.48)Other non-cash transactions 11   0.04 Adjusted net income excluding above items(1) 1,996   7.06 Income tax adjustment for above items 13   0.05 Adjusted net income(1) 2,009   7.11 Less: Adjusted net income attributable to non-controlling interest 176   0.63 Adjusted net income attributable to Diamondback Energy, Inc.(1)$1,833  $6.48     Weighted average common shares outstanding:   Basic  281,202 Diluted  281,202  (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc., (ii) less the reallocation of $11 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods.

OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES, FREE CASH FLOW AND ADJUSTED FREE CASH FLOW

Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in working capital. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in working capital relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.

The Company defines Free Cash Flow, which is a non-GAAP financial measure, as cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company defines Adjusted Free Cash Flow, which is a non-GAAP financial measure, as Free Cash Flow before the tax impact from divestitures (if any), merger and transaction expenses, costs of early termination of derivatives and settlements of any treasury locks (if any). The Company believes that Free Cash Flow and Adjusted Free Cash Flow are useful to investors as they provide a measure to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis, adjusted, as applicable, for non-recurring impacts from divestitures, merger and transaction expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of liquidity. The Company's computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies.

The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measures of Free Cash Flow and Adjusted Free Cash Flow:

Diamondback Energy, Inc.Operating Cash Flow Before Working Capital Changes, Free Cash Flow and Adjusted Free Cash Flow(unaudited, in millions) Three Months Ended
June 30, 2026 Six Months Ended
June 30, 2026Net cash provided by operating activities$3,589  $5,417 Less: Changes in cash due to changes in operating assets and liabilities:   Accounts receivable 216   (563)Accounts payable and accrued liabilities 53   (204)Income taxes payable (287)  — Revenues and royalties payable 254   324 Other 27   (104)Total working capital changes 263   (547)Operating cash flow before working capital changes 3,326   5,964 Additions to oil and natural gas properties (996)  (1,929)Total Cash CAPEX (996)  (1,929)Free Cash Flow 2,330   4,035 Merger and transaction expenses(1) 1   6 Early termination of derivatives —   27 Adjusted Free Cash Flow$2,331  $4,068  (1) Includes $4 million of Viper's transaction expenses related to the Sitio Acquisition for the six months ended June 30, 2026.

NET DEBT

The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents and restricted cash that has been irrevocably deposited for the redemption of principal amounts of outstanding senior notes. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company's leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

Diamondback Energy, Inc.Net Debt(unaudited, in millions)             June 30,
2026 Net Q2
Principal
Borrowings/
(Repayments) March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025  Diamondback Energy, Inc.(1)$11,071  $(1,377) $12,448  $12,462  $13,792  $14,212 Viper Energy, Inc.(1) 1,695   75   1,620   2,205   2,640   1,105 Total debt 12,766  $(1,302)  14,068   14,667   16,432   15,317 Cash and cash equivalents (462)    (174)  (104)  (539)  (219)Net debt$12,304    $13,894  $14,563  $15,893  $15,098  (1) Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.

DERIVATIVES

As of July 31, 2026, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

 Crude Oil (Bbls/day, $/Bbl) Q3 2026 Q4 2026 Q1 2027 Q2 2027 Q3 2027 Q4 2027Long Puts - Crude Brent Oil 20,000  10,000  5,000  —  —  —Long Put Price ($/Bbl)$52.50 $55.00 $55.00  —  —  —Deferred Premium ($/Bbl)$-1.60 $-1.33 $-1.40  —  —  —Long Puts - WTI (Magellan East Houston) 95,000  70,000  50,000  35,000  5,000  —Long Put Price ($/Bbl)$50.53 $50.71 $50.00 $50.00 $50.00  —Deferred Premium ($/Bbl)$-1.43 $-1.33 $-1.31 $-1.35 $-1.29  —Long Puts - WTI (Cushing) 190,000  170,000  100,000  65,000  25,000  —Long Put Price ($/Bbl)$52.57 $50.59 $50.00 $50.00 $50.00  —Deferred Premium ($/Bbl)$-1.30 $-1.28 $-1.34 $-1.34 $-1.41  —Put Spreads WTI (Cushing) 15,000  —  —  —  —  —Long Put Price ($/Bbl)$50.00  —  —  —  —  —Short Put Price ($/Bbl)$55.00  —  —  —  —  —Basis Swaps - WTI (Midland) 85,000  85,000  20,000  20,000  10,000  10,000$1.09 $1.09 $1.51 $1.51 $1.01 $1.01WTI / Brent Basis Puts 290,000  290,000  —  —  —  —Spread ($/Bbl)$-42.76 $-41.03  —  —  —  —Deferred Premium ($/Bbl)$-1.52 $-1.44  —  —  —  —Roll Swaps - WTI 150,000  150,000  —  —  —  —$2.89 $2.89  —  —  —  —  Natural Gas (Mmbtu/day, $/Mmbtu) Q3 2026 Q4 2026 FY 2027 FY 2028Costless Collars - Henry Hub 840,000  840,000  720,000  50,000Floor Price ($/Mmbtu)$2.87 $2.87 $2.88 $2.60Ceiling Price ($/Mmbtu)$6.35 $6.35 $6.37 $5.78Natural Gas Basis Swaps - Waha Hub 650,000  650,000  370,000  —$-1.87 $-1.75 $-1.27  —Natural Gas Basis Swaps - Houston Ship Channel 100,000  100,000  300,000  90,000$-0.35 $-0.35 $-0.31 $-0.34            

The company benefited from the run-up in oil prices following the start of the war in Iran.

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.

Posted by Defense World Staff on Jul 27th, 2026

Bradley Foster & Sargent Inc. CT acquired a new position in Diamondback Energy, Inc. (NASDAQ:FANG – Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 15,560 shares of the oil and natural gas company’s stock, valued at approximately $3,078,000.

A number of other large investors have also recently made changes to their positions in the stock. Deseret Mutual Benefit Administrators lifted its holdings in Diamondback Energy by 31.7% during the fourth quarter. Deseret Mutual Benefit Administrators now owns 274 shares of the oil and natural gas company’s stock valued at $41,000 after purchasing an additional 66 shares in the last quarter. Scotia Capital Inc. increased its stake in shares of Diamondback Energy by 0.3% in the third quarter. Scotia Capital Inc. now owns 19,719 shares of the oil and natural gas company’s stock worth $2,822,000 after purchasing an additional 68 shares in the last quarter. Townsend & Associates Inc raised its position in shares of Diamondback Energy by 0.5% during the 4th quarter. Townsend & Associates Inc now owns 14,330 shares of the oil and natural gas company’s stock valued at $2,161,000 after purchasing an additional 75 shares during the period. Capital Financial Group Inc. Co. ADV raised its position in shares of Diamondback Energy by 2.1% during the 1st quarter. Capital Financial Group Inc. Co. ADV now owns 3,584 shares of the oil and natural gas company’s stock valued at $709,000 after purchasing an additional 75 shares during the period. Finally, Physician Wealth Advisors Inc. lifted its stake in shares of Diamondback Energy by 40.0% during the 4th quarter. Physician Wealth Advisors Inc. now owns 301 shares of the oil and natural gas company’s stock valued at $45,000 after buying an additional 86 shares in the last quarter. 90.01% of the stock is owned by hedge funds and other institutional investors.

Diamondback Energy Price Performance NASDAQ:FANG opened at $204.68 on Monday. The business’s 50-day moving average is $191.42 and its 200 day moving average is $182.82. Diamondback Energy, Inc. has a 12 month low of $134.30 and a 12 month high of $214.51. The company has a market capitalization of $57.58 billion, a P/E ratio of 238.00 and a beta of 0.42. The company has a current ratio of 0.56, a quick ratio of 0.55 and a debt-to-equity ratio of 0.31.

Diamondback Energy (NASDAQ:FANG – Get Free Report) last released its quarterly earnings results on Monday, May 4th. The oil and natural gas company reported $4.23 earnings per share for the quarter, beating the consensus estimate of $3.74 by $0.49. The business had revenue of $4.24 billion during the quarter, compared to analysts’ expectations of $3.83 billion. Diamondback Energy had a return on equity of 7.76% and a net margin of 1.87%.The firm’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the business posted $4.54 EPS. On average, equities research analysts forecast that Diamondback Energy, Inc. will post 18.9 earnings per share for the current fiscal year.

Diamondback Energy Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, May 21st. Stockholders of record on Thursday, May 14th were issued a $1.10 dividend. This is a boost from Diamondback Energy’s previous quarterly dividend of $1.05. The ex-dividend date was Thursday, May 14th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 2.1%. Diamondback Energy’s payout ratio is presently 511.63%.

Insider Buying and Selling at Diamondback Energy In other news, CAO Teresa L. Dick sold 7,000 shares of the company’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 sale, the chief accounting officer directly owned 85,755 shares in the company, valued at approximately $17,228,179.50. This represents a 7.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Matt Zmigrosky sold 5,000 shares of the business’s stock in a transaction that occurred on 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 sale, the executive vice president directly owned 46,392 shares in the company, valued at $9,303,451.68. The trade was a 9.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 113,691 shares of company stock valued at $21,622,752. Corporate insiders own 0.64% of the company’s stock.

Wall Street Analysts Forecast Growth A number of equities research analysts have issued reports on the company. Wall Street Zen upgraded Diamondback Energy from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Weiss Ratings downgraded Diamondback Energy from a “hold (c)” rating to a “hold (c-)” rating in a research report on Thursday, July 16th. Scotiabank upped their price objective on Diamondback Energy from $175.00 to $195.00 and gave the stock a “sector outperform” rating in a research note on Wednesday, April 22nd. Roth Capital set a $212.00 target price on Diamondback Energy and gave the stock a “buy” rating in a research report on Monday, June 22nd. Finally, KeyCorp lifted their target price on Diamondback Energy from $196.00 to $225.00 and gave the company an “overweight” rating in a research note on Thursday, April 2nd. Four analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Buy” and an average price target of $218.68.

View Our Latest Stock Analysis on FANG

About Diamondback Energy (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.

Further Reading Five stocks we like better than Diamondback Energy RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding FANG? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Diamondback Energy, Inc. (NASDAQ:FANG – Free Report).

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In the latest close session, Diamondback Energy (FANG - Free Report) was up +1.22% at $205.49. The stock's performance was ahead of the S&P 500's daily loss of 1.21%. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.

The stock of energy exploration and production company has risen by 10.65% in the past month, leading the Oils-Energy sector's gain of 5.23% and the S&P 500's gain of 0.42%.

The investment community will be paying close attention to the earnings performance of Diamondback Energy in its upcoming release. The company is slated to reveal its earnings on August 3, 2026. The company is expected to report EPS of $6.08, up 127.72% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $4.82 billion, indicating a 31.08% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $18.9 per share and revenue of $18.37 billion, which would represent changes of +41.36% and +22.23%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Diamondback Energy. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.72% lower. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).

In terms of valuation, Diamondback Energy is presently being traded at a Forward P/E ratio of 10.74. This signifies a premium in comparison to the average Forward P/E of 10.42 for its industry.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Diamondback Energy (FANG - Free Report) closed the most recent trading day at $195.54, moving +2.85% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 1.01%. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.4%.

Coming into today, shares of the energy exploration and production company had gained 3.61% in the past month. In that same time, the Oils-Energy sector gained 1.22%, while the S&P 500 gained 0.32%.

The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company's earnings report is expected on August 3, 2026. The company is expected to report EPS of $6.08, up 127.72% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.82 billion, reflecting a 30.95% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.14 per share and revenue of $18.35 billion, indicating changes of +43.16% and +22.1%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Diamondback Energy. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.93% lower. Diamondback Energy is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 9.93. For comparison, its industry has an average Forward P/E of 9.98, which means Diamondback Energy is trading at a discount to the group.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Diamondback Energy?The final step today is to look at a stock that meets our ESP qualifications. Diamondback Energy (FANG - Free Report) earns a #3 (Hold) 28 days from its next quarterly earnings release on August 3, 2026, and its Most Accurate Estimate comes in at $5.89 a share.

By taking the percentage difference between the $5.89 Most Accurate Estimate and the $5.65 Zacks Consensus Estimate, Diamondback Energy has an Earnings ESP of +4.29%. Investors should also know that FANG is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

FANG is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at EOG Resources (EOG - Free Report) as well.

EOG Resources is a Zacks Rank #3 (Hold) stock, and is getting ready to report earnings on August 4, 2026. EOG's Most Accurate Estimate sits at $5.03 a share 29 days from its next earnings release.

The Zacks Consensus Estimate for EOG Resources is $4.90, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.77%.

Because both stocks hold a positive Earnings ESP, FANG and EOG could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Two factors often determine stock prices in the long run: earnings and interest rates. Investors can't control the latter, but they can focus on a company's earnings results every quarter.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider SM Energy?The final step today is to look at a stock that meets our ESP qualifications. SM Energy (SM - Free Report) earns a #3 (Hold) 30 days from its next quarterly earnings release on July 30, 2026, and its Most Accurate Estimate comes in at $1.96 a share.

SM has an Earnings ESP figure of +4.81%, which, as explained above, is calculated by taking the percentage difference between the $1.96 Most Accurate Estimate and the Zacks Consensus Estimate of $1.87. SM Energy is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

SM is part of a big group of Oils and Energy stocks that boast a positive ESP, and investors may want to take a look at Diamondback Energy (FANG - Free Report) as well.

Diamondback Energy, which is readying to report earnings on August 3, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $5.89 a share, and FANG is 34 days out from its next earnings report.

For Diamondback Energy, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $5.65 is +4.25%.

Because both stocks hold a positive Earnings ESP, SM and FANG could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Diamondback Energy (FANG - Free Report) closed at $179.91 in the latest trading session, marking a -1.45% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 0.24%.

Shares of the energy exploration and production company witnessed a loss of 5.97% over the previous month, beating the performance of the Oils-Energy sector with its loss of 8.57%, and underperforming the S&P 500's loss of 1.42%.

The upcoming earnings release of Diamondback Energy will be of great interest to investors. The company is forecasted to report an EPS of $5.73, showcasing a 114.61% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.8 billion, indicating a 30.5% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.92 per share and a revenue of $18.13 billion, signifying shifts of +48.99% and +20.68%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Diamondback Energy. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 2.37% rise in the Zacks Consensus EPS estimate. As of now, Diamondback Energy holds a Zacks Rank of #3 (Hold).

Investors should also note Diamondback Energy's current valuation metrics, including its Forward P/E ratio of 9.16. This denotes no noticeable deviation relative to the industry average Forward P/E of 9.16.

The Oil and Gas - Exploration and Production - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

June 15, 2026 — (Maple Hill Syndicate) — Oil and gasoline prices will “drop like a rock,” President Trump has said.

When? “As soon as the war is over.”

How far? “To where they were before.”

I disagree, for several reasons. Some refineries, pipelines and storage facilities have been destroyed in combat, and will take a long time to fix. Governments see, more than ever, the need for strategic petroleum reserves, so they will be busy buying oil.

And then there's the uncertainty premium. People who have seen $100 oil, and watched as Iran closed the Strait of Hormuz, will be uncertain about future oil supplies. Their nervousness will help buoy up the price.

So, even if the Iran war ends soon, I expect oil prices to bounce around between $80 and $90 for much of the next two years, rather than reverting to the $65 to $74 range of last year.

These are some of the reasons why I favor energy stocks, especially oil-and-gas stocks. Energy makes up only 3.5% of the Standard & Poor's 500 Index. My clients have about double that, and I may expand the energy weighting in their portfolios further.

Fossils?Are fossil fuels, oil and gas, outdated? In a sense, are they fossils themselves?

Some people believe so, but I think they are confusing long-range forecasts with present realities.

According to the U.S. Energy Information Administration, oil accounts for about 38% of total U.S. energy consumption, and natural gas 36%. Throw in coal at 9% and you find that fossil fuels account for about 83% of all energy used in America.

Almost all of the rest is nuclear and renewable-source energy, including wind, solar and hydro.

My conclusion from these facts is that oil and natural gas will be significant energy sources in the U.S. for at least another decade.

DiamondbackOne of my favorite energy stocks is Diamondback Energy Inc. (FANG), based in Midland, Texas. It drills exclusively in the Permian Basin, primarily in western Texas, an advantage at a time of worldwide geopolitical uncertainty.

Diamondback's profit was only about $1.7 billion last year, but that was a down year for the company. Analysts expect profit to jump to $5.6 billion this year. That's one reason 28 of the 31 analysts who follow the company recommend it.

TotalEnergiesAnother favorite of mine is TotalEnergies SE (TTE), based in Courbevoie, France. In addition to being the largest oil company in France, it has large-scale operations in solar and wind energy.

Currently, TotalEnergies generates about 34 gigawatts of electricity from solar and wind projects worldwide. The company says it hopes to raise that to 100 gigawatts by 2030. A gigawatt equals a billion watts, enough to power 750,000 to a million homes.

At 13 times earnings and 1.1 times revenue, I think TotalEnergies is attractively priced.

Exxon MobilFor clients who prefer a conservative approach, I often buy Exxon Mobil Corp. XOM , the largest U.S. oil company. It has a strong balance sheet, with debt only 19% of equity. It has more than $8 billion in cash and cash equivalents.

Exxon has shown a profit in 29 of the past 30 years, the sole exception being 2020, when the pandemic reduced gasoline consumption.

The company has paid a dividend every year for the past 43 years, and increased the amount of the dividend every year. The dividend yield is currently about 2.8%.

Electric RevolutionU.S. electricity demand was nearly flat for more than a decade until 2021. Now it's growing, and some authorities estimate it will grow 20% over the next four years, as data centers, which are electricity hogs, come online.

The pie chart of fuel sources for electric power generation looks different than the one for overall energy use. Oil generates less than 1% of the nation's electricity. Natural gas generates about 41%.

Nuclear power is next, at 18%. Coal, despite environmental groups' opposition, accounts for about 17%. Wind is about 11%, solar 7% and hydroelectric 6%. Figures are again from the U.S. Energy Information Administration.

I think there are opportunities, from time to time, in each of these industries. I made some good profits in coal in 2024-2025, but have no investments there now. I'm mostly in oil and gas, but am looking for nuclear opportunities.

Disclosure: I own Diamondback and TotalEnergies for most of my clients. I own call options on SLB Ltd. (SLB), an oilfield services giant, personally and for a few clients.

One or more of my firm's clients own Chevron Corp. (CVX), ConocoPhillips (COP), Eco Wave Power Global AB (WAVE), Exxon Mobil Corp. XOM , Global X MLP & Energy Infrastructure ETF (MLPX), Halliburton Co. (HAL), TEMA Electrification ETF (VOLT) and Tourmaline Oil Corp. (TRMLF).

John Dorfman is chairman of Dorfman Value Investments LLC in Boston, Massachusetts. He or his clients may own or trade securities discussed in this column. He can be reached at [email protected].