Diamondback Energy, Inc. FANG reported third-quarter 2026 adjusted earnings per share of $5.86, beating the Zacks Consensus Estimate of $4.92 by 19.1%. GAAP earnings increased 62.1% year over year to $5.69 per share from $3.51, supported by higher realized oil prices and increased production volumes.
The Midland, TX-based energy company’s revenues of $5.43 billion surged 38.4% year over year and surpassed the Zacks Consensus Estimate of $4.30 billion by 26.5%. Total production averaged 1,033,967 barrels of oil equivalent per day (“BOE/d”), reflecting higher oil, natural gas and natural gas liquids output.
Diamondback Energy, Inc. Price, Consensus and EPS Surprise
Diamondback Energy, Inc. Price, Consensus and EPS Surprise
Diamondback Energy, Inc. price-consensus-eps-surprise-chart | Diamondback Energy, Inc. Quote
FANG’s Production Volumes Rise Year Over Year
Diamondback’s total production increased 9.7% from 942,946 BOE/d in the year-ago quarter, comprising approximately 50.8% oil. Crude production averaged 524,946 barrels per day, representing a 4.2% increase from 503,750 barrels in the corresponding period of 2025.
Natural gas production climbed 17% year over year to 135,002 million cubic feet, while natural gas liquids volumes advanced 14.9% to 24.3 million barrels. During the quarter, FANG drilled 105 gross wells and completed 135 gross wells, with an average completed lateral length of 13,584 feet.
Diamondback Benefits From Higher Realized Oil Prices
The average realized oil price during the quarter was $87.30 per barrel, increasing 35.1% from $64.60 in the prior-year period. However, the figure declined 9.8% sequentially from $96.82 in the second quarter of 2026.
Meanwhile, the average realized natural gas price improved to $1.12 per thousand cubic feet from 75 cents a year ago. Natural gas liquids prices increased 15.9% to $20.02 per barrel. Overall, the upstream operator realized $51.03 per BOE compared with $39.73 in the year-ago quarter, representing a 28.4% improvement.
FANG’s Operating Costs Show Mixed Trends
Diamondback’s third-quarter cash operating costs increased to $10.91 per BOE from $10.05 in the prior-year period. The increase reflected higher lease operating expenses, which rose to $5.97 per BOE from $5.65, and production and ad valorem taxes, which climbed to $3.02 per BOE from $2.44.
However, gathering, processing and transportation expenses declined 6.4% year over year to $1.32 per BOE. Cash general and administrative expenses increased to 60 cents per BOE from 55 cents. Despite the annual increase, total cash operating costs edged down sequentially from $10.96 per BOE.
Diamondback Generates Strong Free Cash Flow
FANG generated $2.6 billion in net cash from operating activities and $3.2 billion in operating cash flow before working capital changes. Free cash flow totaled $2.15 billion, while adjusted free cash flow reached $2.15 billion. Consolidated adjusted EBITDA stood at $3.75 billion.
Capital expenditures totaled $1.03 billion, including $884 million for operated drilling and completion activities and $142 million for non-operated properties and other additions. As of Sept. 30, Diamondback had $548 million in standalone cash, $13.38 billion in consolidated debt and $3 billion in available credit facility capacity.
FANG Raises Dividend and Continues Share Repurchases
Diamondback’s board approved a 7.3% increase in its quarterly base dividend to $1.18 per common share, representing an 18% year-over-year increase. The dividend is payable on Nov. 19, 2026, to shareholders of record as of Nov. 12.
During the third quarter, the company repurchased approximately 1.35 million common shares for $251 million at an average price of $185.94 per share. FANG also repurchased $106 million in principal amount of senior notes, reinforcing its focus on shareholder returns and balance-sheet management.
Diamondback Raises Its 2026 Production Guidance
Diamondback increased its full-year 2026 oil production guidance to approximately 524,000 barrels per day from more than 522,000 barrels previously. Total production is now projected at approximately 1.015 million BOE/d, up from the previous outlook of more than 1 million BOE/d.
The company raised its 2026 capital expenditure guidance to $3.95-$4 billion from approximately $3.9 billion. For the fourth quarter, Diamondback expects oil production between 518,000 and 528,000 barrels per day and total production between 1.025 million and 1.045 million BOE/d, with capital expenditures of $1-$1.05 billion.
Management also emphasized continued capital discipline, targeting a reinvestment rate near 30% for 2026. Diamondback expects approximately $9.2 billion in full-year free cash flow at prevailing commodity strip prices. The company continues to prioritize efficient Permian Basin development while evaluating opportunities in natural gas infrastructure, power generation and enhanced oil recovery.
FANG’s Zacks Rank & Other Key Picks
Currently, FANG sports a Zacks Rank #2 (Buy).
Investors interested in the energy sector might consider other top-ranked stocks, such as Marathon Petroleum MPC, Delek US Holdings DK and Canadian Natural Resources Limited CNQ, each sporting a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum is valued at $125.65 billion. The company is a leading U.S. independent refiner, marketer and transporter of petroleum products, with a strong refining footprint and an extensive midstream business. Marathon Petroleum benefits from its integrated operations, strategic refining assets and diversified earnings streams across the energy value chain.
Delek US Holdings is valued at $4.30 billion. It is a diversified downstream energy company engaged in petroleum refining, renewable fuels, asphalt production and logistics operations. Delek US Holdings operates multiple refineries in the United States and is committed to delivering safe, reliable energy while investing in cleaner energy initiatives.
Canadian Natural Resources is valued at $110.23 billion. It is an independent energy company. Canadian Natural Resources is engaged in the exploration, development, production and marketing of crude oil, natural gas and natural gas liquids.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
