Diamondback Energy FANG is set to release third-quarter 2026 results on Nov. 2. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of $4.92 per share on revenues of $4.29 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 is worth taking a look at FANG’s previous-quarter performance first.
Highlights of Q2 Earnings & Surprise History
In the last reported quarter, this Midland, TX-based upstream player reported adjusted earnings per share of $6.48, which beat the Zacks Consensus Estimate of $5.96, driven by strong production growth and a 53.1% improvement in the year-over-year realized oil prices. Revenues of $5.6 billion also topped the consensus estimate by 16.8%.
FANG’s earnings beat the Zacks Consensus Estimate in three of the past four quarters and missed in one, delivering an average surprise of 7.12%.
This is depicted in the graph below:
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. price-eps-surprise | Diamondback Energy, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter earnings has witnessed two upward revisions and no downward movement over the past seven days. The estimated figure indicates a 59.74% rise year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 9.45% increase from the year-ago period.
Factors to Consider for FANG’s Q3 Performance
Diamondback Energy is a leading pure-play Permian Basin operator with a focus on low-cost production, disciplined capital allocation and shareholder returns. Its high-quality, high-margin assets support strong free cash flow generation across commodity cycles.
We expect Diamondback Energy’s production growth and continued operational improvements to support its third-quarter earnings. Management said production was approximately 4% above the level at the start of 2026 after the company increased its production plan. Better well productivity and improved drilling and completion efficiency are also likely to have supported volumes. Management noted that gas production was outperforming expectations and that development of the Barnett formation might have further increased gas volumes. Better access to Gulf Coast markets might have also improved the company’s ability to monetize its natural gas production.
Our model projects Diamondback Energy’s third-quarter oil production volume to increase 3.9% year over year to 48.2 million barrels (MBbls), while natural gas production is expected to rise 10.6% to 127.6 billion cubic feet and natural gas liquids production is projected to grow 7.4% to 22.8 MBbls.
On the bearish side, our model suggests that total costs and expenses are expected to increase to $2.73 billion from the year-ago level, weighing on earnings in the to-be-reported quarter. Lease operating expenses are expected to rise 12.7% year over year to $552.2 million, while production and ad valorem taxes are expected to increase 50.3% to $318.7 million. Gathering and transportation expenses are also expected to climb 19% to $145.2 million.
What Does Our Model Predict for FANG?
Our proven model predicts an earnings beat for Diamondback Energy this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
Earnings ESP of FANG: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +15.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FANG’s Zacks Rank: FANG currently carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Here are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
Gulfport Energy GPOR has an Earnings ESP of +10.53% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 4, 2026. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gulfport Energy is an independent exploration and production company focused on developing and producing natural gas and oil in the Appalachian and Anadarko basins. Its focus on operational efficiency and disciplined capital allocation supports long-term value creation.
Mach Natural Resources LP MNR has an Earnings ESP of +11.11% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 5, 2026.
Mach Natural Resources is an independent upstream energy company engaged in the acquisition, development and production of oil, natural gas and natural gas liquids. Its established asset base and focus on efficient production support Mach Natural Resources’ development and cash flow generation.
Pembina Pipeline PBA has an Earnings ESP of +10.53% and a Zacks Rank #3. The firm is scheduled to release earnings on Nov. 5, 2026.
Pembina Pipeline is an energy transportation and midstream service provider that operates pipelines, gas processing plants, fractionation facilities and export terminals. Its integrated infrastructure network and long-term customer contracts support stable cash flows and growth opportunities.
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Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
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Mach Natural Resources LP (MNR) : Free Stock Analysis Report
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
