The Investor
04 Nov 2025, 06:12
Diamondback Energy posts strong Q3 results, raises full-year oil production outlook
Diamondback Energy (NASDAQ: FANG) reported robust Q3 2025 results, with average oil production reaching 503.8 thousand barrels per day (MBO/d) and total production of 942.9 thousand barrels of oil equivalent per day (MBOE/d). Operating cash flow before working capital changes totaled $2.5 billion, while free cash flow came in at $1.8 billion. Capital expenditures were $774 million. The company declared a base dividend of $1.00 per share, yielding 2.8%, and repurchased 4.3 million shares for $603 million, returning a total of $892 million to shareholders—equivalent to 50% of adjusted free cash flow.
During the quarter, subsidiary Viper Energy completed its merger with Sitio Royalties, while Diamondback divested Environmental Disposal Systems and its 27.5% stake in EPIC Crude, generating over $1.2 billion in cash proceeds with potential for $296 million in additional contingent payments. In early Q4, the company repurchased another 611 thousand shares for $87 million and $203 million in long-term notes at a discount.
Reflecting strong operational execution, Diamondback raised its 2025 oil production guidance to 495–498 MBO/d and total output to 910–920 MBOE/d, while maintaining capital expenditure guidance of $3.45–$3.55 billion. The company expects to drill up to 465 gross wells and complete as many as 520 this year, maintaining a focus on capital efficiency and shareholder returns.
Diamondback Energy (NASDAQ: FANG) reported robust Q3 2025 results, with average oil production reaching 503.8 thousand barrels per day (MBO/d) and total production of 942.9 thousand barrels of oil equivalent per day (MBOE/d). Operating cash flow before working capital changes totaled $2.5 billion, while free cash flow came in at $1.8 billion. Capital expenditures were $774 million. The company declared a base dividend of $1.00 per share, yielding 2.8%, and repurchased 4.3 million shares for $603 million, returning a total of $892 million to shareholders—equivalent to 50% of adjusted free cash flow.
During the quarter, subsidiary Viper Energy completed its merger with Sitio Royalties, while Diamondback divested Environmental Disposal Systems and its 27.5% stake in EPIC Crude, generating over $1.2 billion in cash proceeds with potential for $296 million in additional contingent payments. In early Q4, the company repurchased another 611 thousand shares for $87 million and $203 million in long-term notes at a discount.
Reflecting strong operational execution, Diamondback raised its 2025 oil production guidance to 495–498 MBO/d and total output to 910–920 MBOE/d, while maintaining capital expenditure guidance of $3.45–$3.55 billion. The company expects to drill up to 465 gross wells and complete as many as 520 this year, maintaining a focus on capital efficiency and shareholder returns.
