Diamondback Tops Estimates With $5.43 Billion Revenue and $5.86 Adjusted EPS

Diamondback Energy (Nasdaq: FANG) reported third-quarter revenue of $5.43 billion, above the $4.91 billion analysts expected, and adjusted EPS of $5.86 against the $5.60 consensus estimate, in an 8-K filed Monday. Revenue rose from $3.92 billion a year earlier.

GAAP net income attributable to Diamondback was $1.60 billion, or $5.69 per diluted share, compared with $1.02 billion, or $3.51 per share, a year earlier.

Production and cash flow

Average oil production was 525 MBO/d, or 1,034 MBOE/d including gas and natural gas liquids. Net cash provided by operating activities was $2.6 billion, and free cash flow was $2.1 billion. Cash capital expenditures were $1.0 billion. The realized oil price was $87.30 per barrel, compared with $64.60 a year earlier.

Capital returns

The board raised the annual base dividend 7.3% to $4.72 per share, an 18% year-over-year increase. The third-quarter base dividend is $1.18 per share, payable Nov. 19. Diamondback repurchased 1.3 million shares for about $251 million and redeemed all $698 million of its 2026 senior notes at par on Oct. 1.

Outlook

Diamondback raised its full-year 2026 oil production guidance to about 524 MBO/d from 522+ MBO/d, and total production guidance to about 1,015 MBOE/d from 1,000+ MBOE/d. Full-year cash capital expenditures are now expected at $3.95 billion to $4.00 billion, up from about $3.9 billion. For the fourth quarter, the company guided to 518 to 528 MBO/d of oil and $1.00 billion to $1.05 billion of capital spending.

Analysts' consensus estimates for the fourth quarter were EPS of $6.28 and revenue of $5.18 billion. For the full year, the consensus was EPS of $22.51 and revenue of $19.85 billion.