Diamondback Energy (FANG) Q2 2026 earnings summary

Executive summary

• Production surpassed 1 million BOE/d for the first time in Q2 2026, with record oil output of 525 MBO/d and net income of $1.88 billion.

• Generated $7.8 billion in free cash flow for 2026 at current prices, with base dividend protected down to $36/Bbl WTI.

• Maintained industry-leading cost structure, with Midland Basin drilling costs at ~$550/ft and lease operating expenses near $6/BOE.

• Share repurchase authorization doubled to $16 billion, with $9.9 billion remaining, and $141 million repurchased in Q2 2026.

• Major transactions included bolt-on acquisitions, the Double Eagle and Sitio deals, and Viper's divestiture of non-Permian assets.

Financial highlights

• Q2 2026 revenues were $5.56 billion, net income was $1.88 billion, and adjusted EBITDA reached $3.94 billion.

• Free cash flow for Q2 2026 was $2.3 billion, with six-month operating cash flow at $5.42 billion.

• Net debt reduced to $12.3 billion as of June 30, 2026, with liquidity of $3.4 billion.

• Lease operating expenses were $5.96/BOE, and cash operating costs were $10.96/BOE.

• Dividend payout was $1.10/share for Q2 2026, with $609 million paid in H1 2026.

Outlook and guidance

• Full-year 2026 oil production guidance raised to 522+ MBO/d and total production to 1,000+ MBOE/d.

• Capital expenditures guidance for 2026 set at $3.9 billion, with Q3 2026 guidance at $950–$1,050 million.

• Expect to complete 6.1–6.5 million net lateral feet in 2026, with average lateral length of ~12,900 feet.

• Base dividend of $4.40/share protected down to $36/Bbl WTI.

• Non-D&C spend projected to rise slightly in 2027 due to Barnett infrastructure buildout.