Diamondback Energy Raises Production Guidance as Net Income Climbs
The Permian Basin operator reported free cash flow of $2.3 billion for the second quarter.
Diamondback Energy (FANG) reported a significant increase in net income for the second quarter, driven by higher realized oil prices and expanded production volumes.
The results marked a sharp inflection in profitability compared to the previous quarter, as the company surpassed a key production milestone and reduced its debt load.
Net income attributable to Diamondback Energy rose to $1.882 billion, up from $25 million in the first quarter. Free cash flow increased to $2.3 billion from $1.7 billion in the prior period.
Total production reached 1,018 MBOE/d, surpassing the 1.0 million BOE/d milestone compared to 979.4 MBOE/d in the first quarter. Average oil production rose to 525 MBO/d from 521.0 MBO/d. Average completed lateral length increased to 11,983 feet from 11,332 feet.
Financial results were bolstered by a realized average oil price of $96.82 per Bbl, compared to $73.47 per Bbl in the first quarter. This offset a decline in the realized average natural gas price, which dropped to $(2.15) per Mcf from $0.18 per Mcf. Total cash operating expenses decreased to $10.96 per BOE from $11.26 per BOE.
Diamondback raised its annual oil production guidance to 522+ MBO/d from 520+ MBO/d and increased total BOE production guidance to 1,000+ MBOE/d from 972+ MBOE/d. Full-year cash capital expenditures guidance remained unchanged at approximately $3.9 billion.
The company narrowed its Cash G&A guidance to $0.55 - $0.65 per BOE and lowered guidance for DD&A to $13.50 - $14.50 per BOE. Guidance for gathering, processing, and transportation was lowered to $1.40 - $1.60 per BOE, while the cash tax rate guidance was raised to 19% - 22%.
Diamondback reduced total debt by approximately $1.3 billion to $12.8 billion and net debt by approximately $1.6 billion to $12.3 billion. In July 2026, the board doubled the share repurchase authorization to $16.0 billion from $8.0 billion.