Diamondback Energy (FANG) investor relations material

Executive summary

• Significant focus on Barnett asset expansion, with plans to ramp up drilling and development in 2026 and beyond, aiming for long-term inventory growth and improved corporate returns.

• Continued strong performance and productivity improvements in Midland Basin core operations, with increased lateral lengths and efficiency gains year-over-year.

• Generated $1.0 billion of free cash flow in Q4 2025 and $5.5 billion for the full year, with $5.9 billion in adjusted free cash flow for 2025.

• Returned $734 million to shareholders in Q4 2025, representing 62% of adjusted free cash flow, through dividends and share repurchases.

• Increased annual base dividend by 5% to $4.20 per share and repurchased ~4.8% of shares outstanding in 2025.

Financial highlights

• Q4 2025 net income attributable to shareholders was a loss of $1.46 billion, primarily due to a $3.65 billion impairment charge; adjusted net income was $499 million.

• Full year 2025 net income was $1.66 billion; adjusted net income was $3.87 billion.

• Q4 adjusted EBITDA was $2.25 billion; full year adjusted EBITDA was $10.3 billion.

• Q4 free cash flow was $1.0 billion; adjusted free cash flow was $1.18 billion. Full year free cash flow was $5.55 billion; adjusted free cash flow was $5.89 billion.

• Year-end 2025 proved reserves increased 2% to 3,618 MMBoe, with 70% proved developed.

Outlook and guidance

• 2026 oil production guidance: 500–510 MBO/d (926–962 MBOE/d); Q1 2026 guidance: 502–512 MBO/d (930–966 MBOE/d).

• 2026 CapEx guidance is conservative, with expectations to trend toward the lower end in the first half and potential for further reductions if cost improvements materialize.

• 2026 cash capital expenditures guidance: $3.6–$3.9 billion, including $100–$150 million for exploratory development.

• Projected 2026 free cash flow of ~$4.7 billion at current commodity prices.

• Barnett development to accelerate in the second half of 2026, with a significant ramp-up in 2027; about 30 Barnett wells to be drilled in 2026, increasing to 100 in 2027.