MIDLAND, Texas, Aug. 04, 2025 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the second quarter ended June 30, 2025.
SECOND QUARTER 2025 AND RECENT HIGHLIGHTS
Net cash provided by operating activities of $1.7 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.1 billion
Cash capital expenditures of $864 million
Free Cash Flow (as defined and reconciled below) of $1.2 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.3 billion
Declared Q2 2025 base cash dividend of $1.00 per share payable on August 21, 2025; implies a 2.7% annualized yield based on August 1, 2025 closing share price of $146.14
Repurchased 2,991,653 shares of common stock in Q2 2025 for $398 million excluding excise tax (at a weighted average price of $133.15 per share); repurchased 1,669,115 shares of common stock to date in Q3 2025 for $238 million excluding excise tax (at a weighted average price of $142.45 per share)
Total Q2 2025 return of capital of $691 million; represents ~52% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q2 2025 base dividend
Repurchased $252 million in aggregate principal amount across Diamondback’s Senior notes due 2031, 2051, 2052 and 2054 at a weighted average price of 76.8% of par (~$196 million)
On July 31st, the Company’s Board of Directors approved a $2.0 billion increase to the share repurchase authorization to $8.0 billion from $6.0 billion previously, leaving approximately $3.5 billion of current availability for future repurchases
UPDATED 2025 GUIDANCE HIGHLIGHTSNarrowing full year oil production guidance to 485 – 492 MBO/d and increasing annual BOE guidance by 2% to 890 – 910 MBOE/d
Lowering full year cash capital expenditures to $3.4 – $3.6 billion; $100 million (3%) below prior midpoint and down $500 million (13%) from original full year 2025 guidance midpoint
Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 50.9, ~14% better than original guidance
The Company expects to drill 425 – 450 gross (395 – 418 net) wells and complete between 490 – 515 gross (458 – 482 net) wells with an average lateral length of approximately 11,500 feet in 2025
Q3 2025 oil production guidance of 485 – 495 MBO/d (890 – 920 MBOE/d)
Q3 2025 cash capital expenditures guidance of $750 – $850 million
OPERATIONS UPDATE
The tables below provide a summary of operating activity for the three and six months ended June 30, 2025:
Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Drilled Completed Drilled Completed
Area: Gross Net Gross Net Gross Net Gross Net
Midland Basin 121 113 108 103 245 229 224 215
Delaware Basin 1 1 8 6 3 3 15 13
Total 122 114 116 109 248 232 239 228
Total Activity (Gross Operated):
Three Months Ended June 30, 2025 Six Months Ended June 30, 2025
Number of Wells Drilled Number of Wells Completed Number of Wells Drilled Number of Wells Completed
Midland Basin:
Upper Spraberry 1 8 5 10
Middle Spraberry 9 13 17 21
Jo Mill 26 11 44 28
Lower Spraberry 27 21 54 49
Dean 5 8 12 12
Wolfcamp A 24 11 45 39
Wolfcamp B 26 31 58 53
Wolfcamp D 1 3 5 6
Barnett 2 2 5 6
Midland
Basin Total 121 108 245 224
Delaware Basin:
2nd Bone Spring — — — 2
3rd Bone Spring 1 5 2 8
Wolfcamp A — 3 1 5
Delaware
Basin Total 1 8 3 15
Total Company Operated 122 116 248 239
During the second quarter of 2025, the Company turned 108 operated wells to production in the Midland Basin and eight gross wells in the Delaware Basin, with an average lateral length of 13,402 feet. For the six months ended June 30, 2025, the Company turned 224 operated wells to production in the Midland Basin and 15 operated wells to production in the Delaware Basin. The average lateral length for wells completed during the six months ended June 30, 2025 was 12,656 feet.
FINANCIAL UPDATE
Diamondback’s second quarter 2025 net income was $699 million, or $2.38 per diluted share. Adjusted net income (as defined and reconciled below) for the second quarter was $785 million, or $2.67 per diluted share.
Second quarter 2025 net cash provided by operating activities was $1.7 billion.
During the second quarter of 2025, Diamondback spent $707 million on operated drilling and completions, $90 million on capital workovers, non-operated drilling and completions and science and $67 million on infrastructure, environmental and midstream, for total cash capital expenditures of $864 million. For the first half of 2025, Diamondback spent $1.6 billion on operated drilling and completions, $111 million on capital workovers, non-operated drilling and completions and science and $124 million on infrastructure, environmental and midstream, for total cash capital expenditures of $1.8 billion.
Second quarter 2025 Consolidated Adjusted EBITDA (as defined and reconciled below) was $2.4 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the second quarter was $2.3 billion. For the first half of 2025, Consolidated Adjusted EBITDA was $5.4 billion. Adjusted EBITDA net of non-controlling interest for the first half of 2025 was $5.1 billion.
Diamondback’s second quarter 2025 Free Cash Flow (as defined and reconciled below) was $1.2 billion. Adjusted Free Cash Flow (as reconciled and defined below) for the second quarter was $1.3 billion. For the first half of 2025, Diamondback’s Free Cash Flow was $2.8 billion, with $2.9 billion of Adjusted Free Cash Flow over the same period.
Second quarter 2025 average unhedged realized prices were $63.23 per barrel of oil, $0.88 per Mcf of natural gas and $18.13 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $39.61 per BOE.
Diamondback’s cash operating costs for the second quarter of 2025 were $10.10 per BOE, including lease operating expenses (“LOE”) of $5.26 per BOE, cash general and administrative (“G&A”) expenses of $0.55 per BOE, production and ad valorem taxes of $2.56 per BOE and gathering, processing and transportation expenses of $1.73 per BOE.
As of June 30, 2025, Diamondback had $191 million in standalone cash and $595 million of borrowings outstanding under its revolving credit facility, with approximately $1.9 billion available for future borrowings under the facility and approximately $2.1 billion of total liquidity. As of June 30, 2025, the Company had consolidated total debt of $15.3 billion and consolidated net debt (as defined and reconciled below) of $15.1 billion.
DIVIDEND DECLARATIONS
Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $1.00 per common share for the second quarter of 2025 payable on August 21, 2025 to stockholders of record at the close of business on August 14, 2025.
Future base and variable dividends remain subject to review and approval at the discretion of the Company’s Board of Directors.
COMMON STOCK REPURCHASE PROGRAM
During the second quarter of 2025, Diamondback repurchased ~3.0 million shares of common stock at an average share price of $133.15 for a total cost of approximately $398 million, excluding excise tax. We have repurchased ~1.7 million shares of common stock to date in Q3 2025 for $238 million excluding excise tax (at a weighted average price of $142.45 per share) To date, Diamondback has repurchased ~32.9 million shares of common stock at an average share price of $137.86 for a total cost of approximately $4.5 billion. On July 31, 2025 the Company’s Board of Directors approved an incremental $2.0 billion increase to the Company’s share repurchase authorization program, lifting total buyback capacity to $8.0 billion (excluding excise tax), of which approximately $3.5 billion (excluding excise tax) remains available for future repurchases as of the date of this release. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired.
FULL YEAR 2025 GUIDANCE
Below is Diamondback’s updated guidance for the full year 2025, which includes third quarter production, cash tax and capital guidance. This guidance does not give effect to the pending acquisition by the Company’s publicly traded subsidiary Viper Energy, Inc. (“Viper”) of Sitio Royalties Corp. (the “Sitio Acquisition”), which is expected to close in the third quarter of 2025 pending stockholder approval and the satisfaction or waiver of other customary closing conditions.
2025 Guidance 2025 Guidance
Diamondback Energy, Inc. Viper Energy, Inc.
2025 Net production – MBOE/d 890 – 910(from 857 – 900) 76.5 – 81.5
2025 Oil production – MBO/d 485 – 492(from 480 – 495) 41.0 – 43.5
Q3 2025 Oil production – MBO/d (total – MBOE/d) 485 – 495 (890 – 920) 46.0 – 49.0 (86.0 – 92.0)
Unit costs ($/BOE)
Lease operating expenses, including workovers $5.30
– $5.70(from $5.65 – $6.05)
G&A
Cash G&A $0.60
– $0.75 $0.80
– $1.00
Non-cash equity-based compensation $0.25
– $0.35 $0.10
– $0.20
DD&A $14.50
– $15.50(from $14.00 – $15.00) $16.50
– $17.50
Interest expense (net of interest income) $0.60
– $0.80(from $0.40 – $0.65) $2.00
– $2.50
Gathering, processing and transportation $1.60
– $1.75(from $1.40 – $1.60)
Production and ad valorem taxes (% of revenue) ~7% ~7%
Corporate tax rate (% of pre-tax income) 23%
Cash tax rate (% of pre-tax income) 15% – 18%(from 19% – 22%) 21% – 23%
Q3 2025 Cash taxes ($ – million)(1) (2) $50
– $110 $13
– $18
Capital Budget ($ – million)
Operated drilling and completion $2,850
– $2,950(from $2,780 – $3,090)
Capital workovers, non-operated properties and science $250
– $300(from $280 – $320)
Infrastructure, environmental and midstream(3) $300
– $350(from $340 – $390)
2025 Total capital expenditures $3,400
– $3,600(from $3,400 – $3,800)
Q3 2025 Capital expenditures $750
– $850
Gross horizontal wells drilled (net) 425 – 450 (395 – 418)(from 385 – 435 (349 – 395))
Gross horizontal wells completed (net) 490 – 515 (458 – 482)(from 475 – 550 (444 – 514))
Average lateral length (Ft.) ~11,500′
FY 2025 Midland Basin well costs per lateral foot $550
– $580 (from $550 – $590)
FY 2025 Delaware Basin well costs per lateral foot $860
– $910
Midland Basin
completed net lateral feet (%) ~95%
Delaware Basin
completed net lateral feet (%) ~5%
(1) Includes approximately $20-25 million from gains on sales of assets expected to close in the third quarter.
(2) Includes estimated favorable impact on the year-to-date period of tax legislation enacted in the third quarter.
(3) Includes approximately $60 million in estimated midstream capital expenditures for the full year 2025.
CONFERENCE CALL
Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2025 on Tuesday, August 5, 2025 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.
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 recently completed Endeavor merger, the recently completed Double Eagle acquisition and other acquisitions or divestitures including Viper’s pending Sitio Acquisition; 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) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; 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 Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the conflicts in the Middle East and other regions on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures on the cost of products or services used in our operations due to the imposition of tariffs or otherwise; higher interest rates and their impact on the cost of capital; 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; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 26, 2025, 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 letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.