Diamondback Energy (FANG) Q2 2025 earnings summary

Executive summary

• Achieved $1.3 billion in Adjusted Free Cash Flow in Q2 2025, with $4.57 per share, and expects at least $5.8 billion in Adjusted FCF for 2025 at current prices.

• Maintains a leading position in the Permian Basin with ~859,000 net acres and ~490 Mbo/d run-rate production starting Q3 2025, emphasizing operational excellence and disciplined capital allocation.

• Returned $691 million (~52% of Q2 2025 Adjusted FCF) to stockholders via dividends and share repurchases; increased repurchase authorization to $8.0 billion.

• Completed major acquisitions including Endeavor and Double Eagle, with pending $4.1 billion Sitio Acquisition expected to close in Q3 2025.

• Maintains investment grade balance sheet with $2.1 billion liquidity and $15.1 billion net debt as of June 30, 2025.

Financial highlights

• Q2 2025 revenues reached $3.68 billion, with net income of $699 million and Adjusted Free Cash Flow of $1.3 billion.

• Cash operating costs were $10.10/BOE in Q2, with Lease Operating Expense at $5.26/BOE.

• Q2 2025 base dividend declared at $1.00/share, with a $4.00/share annualized base dividend protected at ~$37/Bbl WTI.

• Operating cash flow before working capital changes was $2.1 billion in Q2 2025.

• Oil production per million shares up 10% year-over-year; combined volumes up 9% sequentially, mainly from Double Eagle acquisition.

Outlook and guidance

• 2025 capital budget reduced to $3.4–$3.6 billion, prioritizing Free Cash Flow and efficiency gains.

• Full year 2025 oil production guidance: 485–492 Mbo/d (890–910 Mboe/d); Q3 2025 oil production expected at 485–495 Mbo/d.

• Plan to drill 425–450 gross (395–418 net) wells and complete 490–515 gross (458–482 net) wells in 2025.

• Lease operating expenses expected at $5.30–$5.70/BOE; G&A cash expenses at $0.60–$0.75/BOE.

• Maintains flexibility in activity levels, with readiness to adjust based on oil price signals and macro conditions.