Diamondback Energy (FANG) Q1 2026 earnings summary

Executive summary

• Achieved average oil production of 521.0 MBO/d (979.4 MBOE/d) in Q1 2026, reflecting strong operational performance and completion design improvements.

• Net cash from operating activities was $1.8 billion, with free cash flow of $1.7 billion and adjusted EBITDA of $3.0 billion.

• Capital allocation focused on flexibility, with increased dividends, opportunistic buybacks, and rapid debt reduction.

• Projected to generate at least $8.3 billion in free cash flow for 2026 at current commodity prices, with production and dividends protected down to $36/Bbl WTI.

• Net income for Q1 2026 was $25 million, impacted by a $1.4 billion non-cash impairment on proved oil and gas properties.

Financial highlights

• Q1 2026 net income attributable to shareholders was $25 million ($0.08 per diluted share); adjusted net income was $1.2 billion ($4.23 per diluted share).

• Q1 2026 adjusted free cash flow was $1.7 billion ($6.14/share), with a return of capital of $859 million (~50% of adjusted FCF).

• Total revenues for Q1 2026 were $4.24 billion, up from $4.05 billion in Q1 2025.

• Lease operating expenses averaged $6.21/BOE, and total cash operating expenses were $11.26/BOE.

• Cash capital expenditures totaled $933 million in Q1 2026.

Outlook and guidance

• Raised 2026 annual oil production guidance to 520+ MBO/d and total BOE to 972+ MBOE/d, implying ~5% organic growth.

• Increased full-year cash capital expenditures guidance to ~$3.90 billion.

• Q2 2026 oil production guidance is 515–525 MBO/d (950–990 MBOE/d); Q2 cash capital expenditures guidance is $925–$1,025 million.

• Reinvestment rate for 2026 estimated at 34%, maintaining capital efficiency.

• Plans to maintain a higher DUC well balance to support operational flexibility.