Diamondback Energy (FANG) Q3 2025 Financial Results Summary

2025-11-04 · Stocks · QuoteReporter

Diamondback Energy, Inc. (FANG) Q3 2025 Financial Results Summary

Diamondback Energy, Inc. (NASDAQ: FANG) announced its financial and operating results for the third quarter ended September 30, 2025, on November 3, 2025. Below is a summary of the key highlights and metrics from the report:

Q3 2025 Financial Highlights

Average Oil Production:
503.8 MBO/d (~942.9 MBOE/d)
Decrease of 4.3% from Q3 2024 (approximately 321,054 BOE/d).
Net Cash Provided by Operating Activities:
$2.4 billion;
Operating Cash Flow Before Working Capital Changes of $2.5 billion.
Cash Capital Expenditures:
$774 million;
Increased from $688 million in Q3 2024 (growth of 12.5%).
Free Cash Flow:
$1.8 billion;
Adjusted Free Cash Flow also at $1.8 billion.
Quarterly Dividend:
Declared a base cash dividend of $1.00 per share, payable on November 20, 2025; this implies a 2.8% annualized yield based on the October 31, 2025 closing share price of $143.19.
Share Repurchase Program:
Repurchased 4,286,080 shares of common stock for approximately $603 million (at a weighted average price of $140.70 per share).

Financial Metrics and Ratios

Total Return of Capital:
Totalled $892 million, representing 50% of Adjusted Free Cash Flow from stock repurchases and the declared Q3 dividend.
Net Income (Loss):
$1,018 million (or $3.51 per diluted share);
Up from $659 million in Q3 2024 (growth of 54.6% in net income).
Adjusted Net Income:
$895 million (or $3.08 per diluted share).

Operational Highlights

Recent Transactions:
Closed the acquisition of Sitio Royalties Corp. by Viper Energy, Inc. on August 19, 2025.
Closed the divestiture of Environmental Disposal Systems, LLC to Deep Blue Midland Basin LLC on October 1, 2025, for $694 million in cash and potential additional earnings of $200 million totaling based on specific thresholds.
Closed the divestiture of a 27.5% equity interest in EPIC Crude Holdings, LP, resulting in $504 million in cash proceeds.
Wells Drilled:
108 gross wells drilled in Q3 2025:
- 107 in the Midland Basin and 1 in the Delaware Basin.
137 total gross wells completed in Q3 2025.
Costs Per BOE (compared to Q3 2024):
Lease Operating Expenses: $5.65 (down from $6.01; a growth of 6%).
Total Operating Expense – Cash: $10.05 (decreased from $11.49; a growth of 12.5%).

Updated 2025 Guidance Highlights

Production Guidance:
Full-year oil production now expected to be 495 – 498 MBO/d, an increase from the previous guidance of 485 – 492 MBO/d.
Capital Expenditure Guidance:
Full year cash capital expenditures narrowed to $3.45 – 3.55 billion.
Q4 2025 Cash Capital Expenditures Guidance:
Expected to be $875 – 975 million.

Debt and Liquidity

Total Consolidated Debt:
$16.432 billion as of September 30, 2025, which represents an increase from $15.317 billion in Q3 2024.
Net Debt:
$15.893 billion, reflecting a slight increase from the previous quarter.

Conclusion

The results show that Diamondback Energy maintained a strong operational performance and shareholder returns through its dividend and share repurchase program, despite slight declines in production metrics.

Revenues:	2025	2024	2025	2024
Oil, natural gas and natural gas liquid	$3,447	$2,354	$10,420	$6,629
Sales of purchased oil	459	282	1,168	698
Other operating income	18	9	62	28
Total revenues	3,924	2,645	11,650	7,355
Costs and expenses:
Lease operating expenses	490	316	1,338	825
Production and ad valorem taxes	212	153	654	413
Gathering, processing and transportation	122	102	378	261
Purchased oil expense	455	280	1,168	696
Depreciation, depletion, amortization	1,286	742	3,649	1,694
and accretion
General and administrative expenses	70	49	210	141
Merger and transaction expenses	17	258	94	273
Other operating expenses	36	35	111	68
Total costs and expenses	2,688	1,935	7,602	4,371
Income (loss) from operations	1,236	710	4,048	2,984
Other income (expense):
Interest expense, net	-70	-18	-166	-101
Other income (expense), net	108	89	133	87
Gain (loss) on derivative instruments, net	120	131	149	101
Gain (loss) on extinguishment of debt	-32	—	23	2
Income (loss) from equity investments, net	8	6	20	23
Total other income (expense), net	134	208	159	112
Income (loss) before income taxes	1,370	918	4,207	3,096
Provision for (benefit from) income taxes	287	210	894	685
Net income (loss)	1,083	708	3,313	2,411
Net income (loss) attributable to non-controlling interest	65	49	191	147
Net income (loss) attributable to	1,018	659	3,122	2,264
Diamondback Energy, Inc.
Earnings (loss) per common share:
Basic	$3.51	$3.19	$10.71	$12.00
Diluted	3.51	3.19	10.71	12.00
Weighted average common shares outstanding:
Basic	288,826	204,730	290,188	187,253
Diluted	288,826	204,730	290,188	187,253

Assets	September 30, 2025	December 31, 2024
Current assets:
Cash and cash equivalents ($53 million and $27 million related to Viper)	$159	$161
Restricted cash ($390 million and $— million related to Viper)	393	3
Accounts receivable:
Joint interest and other, net	345	198
Oil and natural gas sales, net ($290 million and $149 million related to Viper)	1,280	1,387
Inventories	86	116
Derivative instruments	174	168
Prepaid expenses and other current assets	144	77
Total current assets	2,581	2,110
Property and equipment:
Oil and natural gas properties, full cost method of accounting ($24,498 million and $22,666 million excluded from amortization at September 30, 2025, and December 31, 2024, respectively)	94,309	82,240
Other property, equipment and land	1,019	1,440
Accumulated depletion, depreciation, amortization and impairment ($1,454 million and $1,081 million related to Viper)	-22,795	-19,208
Property and equipment, net	72,533	64,472
Funds held in escrow	17	1
Equity method investments	362	375
Assets held for sale	505	—
Derivative instruments	1	2
Deferred income taxes, net ($— million and $185 million related to Viper)	—	173
Other assets	214	159
Total assets	$76,213	$67,292
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable – trade	$426	$253
Accrued capital expenditures	846	690
Current maturities of debt ($380 million and $— million related to Viper)	394	900
Other accrued liabilities	1,000	1,020
Revenues and royalties payable	1,433	1,491
Derivative instruments	10	43
Income taxes payable	33	414
Total current liabilities	4,142	4,811
Long-term debt ($2,