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Why Is Diamondback (FANG) Up 11.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
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 its latest 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 Q3 Earnings Beat Estimates
Diamondback Energy reported third-quarter 2025 adjusted earnings per share (EPS) of $3.08, which beat the Zacks Consensus Estimate of $2.85. The outperformance was primarily driven by higher-than-expected production and lower cash operating costs. However, the company’s bottom line declined from the year-ago adjusted profit of $3.38, mainly due to an 11.7% decrease in the average realized oil price.
Meanwhile, revenues of $3.9 billion rose 48.4% from the year-ago quarter’s sales and topped the Zacks Consensus Estimate by 13.4%.
During the quarter, Viper Energy, a subsidiary of Diamondback Energy, closed the acquisition of Sitio Royalties Corp.
During the third quarter of 2025, FANG returned a total of $892 million to its shareholders, representing approximately 50% of its adjusted free cash flow. This return of capital was comprised of share repurchases and the declared base cash dividend.
The 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 Oct. 31, 2025. The payout will be made on Nov. 20.
In terms of share repurchases, Diamondback Energy bought back 4,286,080 shares of common stock during the third quarter for $603 million, excluding excise tax, at a weighted average price of $140.70 per share.
Furthermore, the company repurchased $203 million in principal amount of its outstanding senior notes maturing in 2051 and 2052. These were acquired at an average price of 82.3% of par, amounting to a total cost of approximately $167 million.
Q3 Production & Realized Prices
FANG’s production of oil and natural gas averaged 942,946 barrels of oil equivalent per day (BOE/d), comprising 53% oil. The figure was up 65% from the year-ago quarter and beat our estimate of 904,988.8 BOE/d. While crude and natural gas output increased 57% and 73.4% year over year, respectively, natural gas liquids volumes surged 77.7%.
The average realized oil price during the quarter was $64.60 per barrel, 11.7% lower than the year-ago realization of $73.13. However, the figure beat our estimate of $54.94 per barrel. Meanwhile, the average realized natural gas price surged to 75 cents per thousand cubic feet from negative 26 cents in the prior year. The figure was below our estimate of 87 cents. Overall, the upstream oil and gas company fetched $39.73 per barrel compared with $44.80 a year ago.
FANG’s Costs & Financial Position
Diamondback Energy’s third-quarter cash operating cost was $10.05 per BOE compared with $11.49 in the prior-year quarter and our estimate of $10.76. The drop in costs compared with the year-ago period reflected a decrease in lease operating expenses to $5.65 per BOE from $6.01 in the third quarter of 2024.
Further, FANG’s gathering, processing and transportation expenses fell 27.3% year over year to $1.41 per BOE, while cash G&A expenses fell in the third quarter of 2025 to 55 cents from 63 cents during the corresponding period of 2024. Moreover, production and ad valorem taxes also fell 16.2% year over year to $2.44 per BOE.
Diamondback Energy logged $774 million in capital expenditure — spending $632 million on drilling and completion, $48 million on infrastructure and environment and $94 million on capital workovers. The company booked $1.8 billion in adjusted free cash flow in the third quarter.
As of Sept. 30, the Permian-focused operator had approximately $159 million in cash and cash equivalents and $15.9 billion in long-term debt, representing a debt-to-capitalization of 25.8%.
FANG’s Q4 & 2025 Guidance
Diamondback Energy increases its full-year 2025 oil production guidance to 495-498 thousand barrels of oil per day (MBO/d). The company anticipates its annual BOE will increase to a range of 910-920 thousand barrels of oil equivalent per day (MBOE/d). In terms of capital expenditures, it expects to lower its full-year cash capital expenditures to a range of $3.45 billion to $3.55 billion. In 2025, Diamondback Energy expects to drill 445-465 gross (412-430 net) wells and complete between 510 and 520 gross (471-481 net) wells.
For the fourth quarter of 2025, this Zacks Rank #3 (Hold) company expects oil production to be 505-515 MBO/d and cash capital expenditures to be between $875 million and $975 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Diamondback has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. 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 is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Matador Resources (MTDR - Free Report) , a stock from the same industry, has gained 10.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Matador reported revenues of $939.02 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.36 for the same period compares with $1.89 a year ago.
Matador is expected to post earnings of $0.98 per share for the current quarter, representing a year-over-year change of -46.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
Matador has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
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Why Is Diamondback (FANG) Up 11.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have added about 11.9% in that time frame, outperforming the S&P 500.
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 its latest 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 Q3 Earnings Beat Estimates
Diamondback Energy reported third-quarter 2025 adjusted earnings per share (EPS) of $3.08, which beat the Zacks Consensus Estimate of $2.85. The outperformance was primarily driven by higher-than-expected production and lower cash operating costs. However, the company’s bottom line declined from the year-ago adjusted profit of $3.38, mainly due to an 11.7% decrease in the average realized oil price.
Meanwhile, revenues of $3.9 billion rose 48.4% from the year-ago quarter’s sales and topped the Zacks Consensus Estimate by 13.4%.
During the quarter, Viper Energy, a subsidiary of Diamondback Energy, closed the acquisition of Sitio Royalties Corp.
During the third quarter of 2025, FANG returned a total of $892 million to its shareholders, representing approximately 50% of its adjusted free cash flow. This return of capital was comprised of share repurchases and the declared base cash dividend.
The 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 Oct. 31, 2025. The payout will be made on Nov. 20.
In terms of share repurchases, Diamondback Energy bought back 4,286,080 shares of common stock during the third quarter for $603 million, excluding excise tax, at a weighted average price of $140.70 per share.
Furthermore, the company repurchased $203 million in principal amount of its outstanding senior notes maturing in 2051 and 2052. These were acquired at an average price of 82.3% of par, amounting to a total cost of approximately $167 million.
Q3 Production & Realized Prices
FANG’s production of oil and natural gas averaged 942,946 barrels of oil equivalent per day (BOE/d), comprising 53% oil. The figure was up 65% from the year-ago quarter and beat our estimate of 904,988.8 BOE/d. While crude and natural gas output increased 57% and 73.4% year over year, respectively, natural gas liquids volumes surged 77.7%.
The average realized oil price during the quarter was $64.60 per barrel, 11.7% lower than the year-ago realization of $73.13. However, the figure beat our estimate of $54.94 per barrel. Meanwhile, the average realized natural gas price surged to 75 cents per thousand cubic feet from negative 26 cents in the prior year. The figure was below our estimate of 87 cents. Overall, the upstream oil and gas company fetched $39.73 per barrel compared with $44.80 a year ago.
FANG’s Costs & Financial Position
Diamondback Energy’s third-quarter cash operating cost was $10.05 per BOE compared with $11.49 in the prior-year quarter and our estimate of $10.76. The drop in costs compared with the year-ago period reflected a decrease in lease operating expenses to $5.65 per BOE from $6.01 in the third quarter of 2024.
Further, FANG’s gathering, processing and transportation expenses fell 27.3% year over year to $1.41 per BOE, while cash G&A expenses fell in the third quarter of 2025 to 55 cents from 63 cents during the corresponding period of 2024. Moreover, production and ad valorem taxes also fell 16.2% year over year to $2.44 per BOE.
Diamondback Energy logged $774 million in capital expenditure — spending $632 million on drilling and completion, $48 million on infrastructure and environment and $94 million on capital workovers. The company booked $1.8 billion in adjusted free cash flow in the third quarter.
As of Sept. 30, the Permian-focused operator had approximately $159 million in cash and cash equivalents and $15.9 billion in long-term debt, representing a debt-to-capitalization of 25.8%.
FANG’s Q4 & 2025 Guidance
Diamondback Energy increases its full-year 2025 oil production guidance to 495-498 thousand barrels of oil per day (MBO/d). The company anticipates its annual BOE will increase to a range of 910-920 thousand barrels of oil equivalent per day (MBOE/d). In terms of capital expenditures, it expects to lower its full-year cash capital expenditures to a range of $3.45 billion to $3.55 billion. In 2025, Diamondback Energy expects to drill 445-465 gross (412-430 net) wells and complete between 510 and 520 gross (471-481 net) wells.
For the fourth quarter of 2025, this Zacks Rank #3 (Hold) company expects oil production to be 505-515 MBO/d and cash capital expenditures to be between $875 million and $975 million.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
At this time, Diamondback has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. 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 is part of the Zacks Oil and Gas - Exploration and Production - United States industry. Over the past month, Matador Resources (MTDR - Free Report) , a stock from the same industry, has gained 10.8%. The company reported its results for the quarter ended September 2025 more than a month ago.
Matador reported revenues of $939.02 million in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.36 for the same period compares with $1.89 a year ago.
Matador is expected to post earnings of $0.98 per share for the current quarter, representing a year-over-year change of -46.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.5%.
Matador has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.