Diamondback Energy

Diamondback Energy produces oil, natural gas and natural gas liquids in the Permian Basin of West Texas, mainly in the Midland Basin. In Q2 2026, it produced 1,018 thousand barrels of oil equivalent per day, of which 525 thousand barrels per day were oil. It became much larger after it bought Endeavor Energy Resources in 2024.

Diamondback also controls Viper Energy, a listed company that owns mineral and royalty interests. Its results move mainly with the price of oil. It returns cash to shareholders with a base dividend and share buybacks.

The market prices Diamondback for the risk that oil prices fall back from their current high level. The conflict in the Middle East moved the global oil market into a deficit in 2026, and Diamondback's realized oil price rose to $96.82 per barrel in Q2 2026 from $63.23 a year earlier. In Q3 2026 it fell to $87.30. Its realized natural gas price in the Permian Basin was negative in Q2 2026.

The Stephens family holders (SGF FANG Holdings), who received shares in the Endeavor purchase, sold 11 million shares in March 2026, and more sales can put pressure on the share price. For the gap to close, three things must be true. Diamondback must keep production at 1,000 thousand barrels of oil equivalent per day or more with capital spending of about $3.9 billion a year. It must keep its free cash flow high enough to cut debt and buy back shares, as in Q2 2026, when it cut debt by about $1.3 billion.

Oil prices must stay high enough for strong cash flow after the conflict ends. The Q3 2026 report on November 2, 2026 gives the next test. The 2027 plan in February 2027 shows how much Diamondback can produce and return at the new oil prices. If these checks pass, the gap can close over the next two to four quarters.

The main reason it may not close is a sharp fall in oil prices, which Diamondback cannot control.

1. Nov 2, 2026Pending

   Q3 2026 results: free cash flow and debtOil production within the 517 to 527 thousand barrels per day guidance, capital spending within $950 million to $1,050 million and lower net debt pass; lower production or higher spending fails.
2. Feb 2027 · est.Pending

   2027 plan: production, capital spending and returnsA 2027 plan with flat or higher oil production at capital spending near $3.9 billion passes; higher spending for the same output or a cut in shareholder returns fails.

Every passed and failed checkpoint across all picks

Diamondback funds itself mainly with senior notes, and its consolidated figures include Viper Energy. At June 30, 2026, consolidated total debt was $12.77 billion and net debt was $12.30 billion, down about $1.3 billion and $1.6 billion from March 31, 2026. Read more

• Results depend on the price of oil. Prices rose in 2026 because of the conflict in the Middle East. If the conflict ends or OPEC+ adds supply, oil prices can fall quickly and cut cash flow.
• Local natural gas prices in the Permian Basin, such as at the Waha Hub, are often far below national prices. Diamondback's realized gas price was negative $2.15 per Mcf in Q2 2026. Low gas prices reduce income and can limit oil production.
• The Stephens holders still own a large stake from the Endeavor purchase. More large sales of shares can weigh on the share price.
• Diamondback drills in one basin. New rules on emissions, water disposal or earthquakes in the Permian Basin can raise costs for all its wells.

• October 8, 2026Diamondback said that its average realized oil price was $87.30 per barrel in Q3 2026, or $85.89 with hedges. Its realized natural gas price was $1.12 per Mcf. It expects a net loss of $97 million on cash settlements of derivatives for the quarter.
• September 29, 2026Diamondback and SGF FANG Holdings amended their stockholders agreement. The Stephens holders can now name two directors while they own 10% to 25% of the shares, and none below 10%. Two directors, Darin Holderness and Lance Robertson, left the board under this agreement.
• August 3, 2026Diamondback reported Q2 2026 results. Production passed 1.0 million barrels of oil equivalent per day for the first time. Net income was $1,882 million, or $6.65 per share, and free cash flow was $2.3 billion. Total debt fell by about $1.3 billion to $12.8 billion. The board doubled the buyback authorization to $16.0 billion, and Diamondback raised its 2026 production guidance.