It has been about a month since the last earnings report for Diamondback Energy (FANG Quick QuoteFANG - Free Report) . Shares have added about 2.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Diamondback due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Diamondback Energy, Inc. before we dive into how investors and analysts have reacted as of late.

Diamondback Energy Q2 Earnings Beat Estimates

Diamondback Energy reported second-quarter 2025 adjusted earnings per share of $2.67, which beat the Zacks Consensus Estimate of $2.63. The outperformance was primarily driven by higher-than-expected production and lower cash operating costs. However, the company’s bottom line declined significantly from the year-ago adjusted profit of $4.52, mainly due to a 20% year-over-year decrease in the average realized oil price.

Meanwhile, revenues of $3.7 billion rose 48.1% from the year-ago quarter’s sales and outperformed the Zacks Consensus Estimate by 11.8%.

During the second quarter of 2025, the company returned a total of $691 million to shareholders, representing approximately 52% of its adjusted free cash flow. This return of capital was comprised of share repurchases and the declared base cash dividend.

Midland, TX-based oil and gas exploration and production company’s board of directors also declared a quarterly cash dividend of $1 per share to its common shareholders of record as of Aug. 1, 2025. The payout will be made on Aug. 21, 2025.

In terms of share repurchases, the company bought back 2,991,653 shares of common stock during the second quarter for $398 million, excluding excise tax, at a weighted average price of $133.15 per share.

Production & Realized Prices

Diamondback’s production of oil and natural gas averaged 919,879 barrels of oil equivalent per day (BOE/d), comprising 54% oil. The figure was up 94% from the year-ago quarter and beat our estimate of 884,987.3 BOE/d. While crude and natural gas output increased 80% and 115% year over year, respectively, natural gas liquids volumes surged 113%.

The average realized oil price during the most recent quarter was $63.23 per barrel, 20% lower than the year-ago realization of $79.51. However, the figure beat our estimate of $60.50 per barrel. Meanwhile, the average realized natural gas price surged to 88 cents per thousand cubic feet from 10 cents in the prior year. The figure was above our estimate of 55 cents. Overall, the upstream oil and gas company fetched $39.61 per barrel compared with $50.33 a year ago.

Costs & Financial Position

Diamondback’s second-quarter cash operating cost was $10.10 per BOE compared with $11.67 in the prior-year quarter and our estimate of $10.87. The drop in costs compared with the year-ago period reflected a decrease in lease operating expenses to $5.26 per BOE from $5.88 in the second quarter of 2024.

Further, Diamondback’s gathering, processing and transportation expenses fell 9% year over year to $1.73 per BOE, while cash G&A expenses fell in the second quarter of 2025 to 55 cents from 63 cents during the corresponding period of 2024. Moreover, production and ad valorem taxes rose 21% year over year to $2.56 per BOE.

Diamondback logged $864 million in capital expenditure — spending $707 million on drilling and completion, $90 million on infrastructure and environment, and $67 million on capital workovers. The company booked $1.3 billion in adjusted free cash flow in the second quarter.

As of June 30, the Permian-focused operator had approximately $219 million in cash and cash equivalents and $15.1 billion in long-term debt, representing a debt-to-capitalization of 26.1%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -10.17% due to these changes.

VGM Scores

Currently, Diamondback has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Diamondback has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Diamondback belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Matador Resources (MTDR Quick QuoteMTDR - Free Report) , has gained 7.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.

Matador reported revenues of $895.31 million in the last reported quarter, representing a year-over-year change of +5.7%. EPS of $1.53 for the same period compares with $2.05 a year ago.

Matador is expected to post earnings of $1.42 per share for the current quarter, representing a year-over-year change of -24.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -9.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Matador. Also, the stock has a VGM Score of C.