Diamondback Energy, Inc. (FANG Quick QuoteFANG - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of $4.23, which beat the Zacks Consensus Estimate of $3.55, driven by strong production. However, the company’s bottom line declined from the year-ago adjusted profit of $4.54. The underperformance was due to a 91.5% drop in the year-over-year realized natural gas prices.

This Midland, TX-based oil and gas exploration and production company’s revenues of $4.2 billion increased 4.7% from the year-ago quarter and topped the Zacks Consensus Estimate by 10.6%, fueled primarily by higher sales of oil, natural gas and natural gas liquids, increased sales of purchased oil and higher revenues from other operating income.

Diamondback Energy, Inc. Price, Consensus and EPS Surprise

Diamondback Energy, Inc. price-consensus-eps-surprise-chart | Diamondback Energy, Inc. Quote

In the first quarter of 2026, Diamondback Energy generated free cash flow of about $1.7 billion, while adjusted free cash flow stood at $1.74 billion. Over the same period, it bought back nearly 3.3 million common shares for roughly $548 million at an average price of $167.61 per share, excluding excise taxes. This included a $509 million transaction to repurchase 3 million shares from SGF FANG Holdings, LP.

Overall, shareholder returns totaled approximately $859 million through a combination of share repurchases and the declared base dividend for the quarter, accounting for 50% of adjusted free cash flow.

FANG’s board of directors approved a 5% increase to the company's base quarterly dividend, raising it to $1.10 per common share for the first quarter of 2026, payable on May 21, 2026, to stockholders of record on May 14.

FANG’s Q1 Production & Realized Prices

FANG’s production of oil and natural gas averaged 979,356 barrels of oil equivalent per day (BOE/d), comprising 53.2% oil. The figure was up 15.1% from the year-ago quarter and beat our estimate of 951,053.3 BOE/d. While crude and natural gas output increased 9.5% and 17.7% year over year, respectively, natural gas liquids volumes climbed 26.9%.

The average realized oil price during the quarter was $73.47 per barrel, 3.5% higher than the year-ago realization of $70.95. The figure also beat our estimate of $51.71 per barrel. Meanwhile, the average realized natural gas price decreased to 18 cents per thousand cubic feet from $2.11 in the prior year. The figure was also below our estimate of $1.71. Overall, the upstream oil and gas company fetched $43.40 per barrel compared with $47.77 a year ago.

FANG’s Costs & Financial Position

Diamondback Energy’s first-quarter cash operating cost was $11.26 per BOE compared with $10.48 in the prior-year quarter and our estimate of $11.34. The increase in costs compared with the year-ago period reflected a rise in lease operating expenses to $6.21 per BOE from $5.33 in the first quarter of 2025 and an increase in Production and ad valorem taxes to $3.04 per BOE from $2.98 in the prior-year quarter.

However, FANG’s gathering, processing and transportation expenses decreased 6.2% year over year to $1.36 per BOE. Cash G&A expenses also fell in the first quarter of 2026 to 65 cents per BOE from 72 cents in the corresponding period of 2025.

Diamondback Energy logged $933 million in capital expenditure — spending $784 million on operated drilling and completion additions to oil and natural gas properties, and $149 million on non-operated additions. The company booked $1.7 billion in adjusted free cash flow in the first quarter.

As of March 31, the Permian-focused operator had approximately $174 million in cash and cash equivalents and $13.1 billion in long-term debt, representing a debt-to-capitalization of 23.6%.

FANG’s Q2 & 2026 Guidance

Diamondback Energy updated its 2026 guidance following a strong first-quarter operational performance and improved production outlook. The company raised its full-year oil production guidance to more than 520 MBO/d from the earlier range of 500-510 MBO/d, while total production guidance was increased to more than 972 MBOE/d from 926-962 MBOE/d. Management indicated that the revised outlook reflects approximately 5% year-over-year organic production growth. To support this higher activity level, FANG also increased its 2026 cash capital expenditure budget to around $3.9 billion from the prior estimate of roughly $3.75 billion, with operated drilling and completion spending now expected at about $3.31 billion.

In addition, this Zacks Rank #1 (Strong Buy) company provided second-quarter oil production guidance of 515-525 MBO/d. Despite the higher capital plan, Diamondback Energy lowered portions of its cost outlook, including DD&A and interest expense guidance, highlighting improved operational efficiencies and balance sheet management.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Important Energy Earnings at a Glance

While we have discussed FANG’s first-quarter results in detail, let us take a look at three other key reports in the energy space.

Patterson-UTI Energy, Inc. (PTEN Quick QuotePTEN - Free Report) reported a first-quarter 2026 adjusted net loss of 6 cents per share, narrower than the Zacks Consensus Estimate of a 10-cent loss. However, the bottom line decreased from the year-ago quarter's breakeven result due to a decrease in operating income in its Drilling Services, Completion Services and Drilling Products segments.

Total revenues of $1.1 billion beat the Zacks Consensus Estimate by 3.1%. This was driven by higher-than-expected revenues from the Drilling Services and Completion Services segments. The Drilling Services and Completion Services segments reported revenues of $351.7 million and $679.6 million, which beat the consensus mark of $350 million and $37.1 million, respectively. However, the top line decreased about 12.8% year over year. This underperformance can be attributed to the decrease in year-over-year segment revenues.

As of March 31, 2026, the company had cash and cash equivalents worth $337.2 million and long-term debt of $1.2 billion. Its debt-to-capitalization was 27.8%.

NOV Inc. (NOV Quick QuoteNOV - Free Report) reported first-quarter 2026 adjusted earnings of 15 cents per share, which missed the Zacks Consensus Estimate of 17 cents. The bottom line also decreased 21% from the year-ago quarter’s 19 cents.

The oil and gas equipment and services company’s total revenues of $2.05 billion beat the Zacks Consensus Estimate by $2 million but fell 2.4% from the year-ago quarter’s figure of $2.1 billion.

The lower-than-expected quarterly earnings of the company were primarily attributable to conflict in the Middle East, which disrupted logistics, delayed deliveries and increased operational costs.

As of March 31, the company had cash and cash equivalents of $1.3 billion and long-term debt of $1.7 billion with a debt-to-capitalization of 21.2%. NOV had $1.5 billion available on its primary revolving credit facility during the same time.

Nabors Industries Ltd. (NBR Quick QuoteNBR - Free Report) reported a first-quarter 2026 adjusted loss of $1.54 per share, narrower than the Zacks Consensus Estimate of a loss of $2.39. Additionally, the metric is significantly above the prior-year quarter’s reported loss of $7.5 per share. This outperformance was mainly driven by higher adjusted operating income from its International Drilling segment.

The oil and gas drilling company’s operating revenues of $783.5 million beat the Zacks Consensus Estimate of $779 million. The top line also increased from the year-ago quarter’s $736.2 million, primarily supported by higher contributions from the U.S. Drilling, International Drilling and Drilling Solutions segments.

As of March 31, 2026, Nabors had $500.9 million in cash and short-term investments. Long-term debt was about $2.1 billion, with a debt-to-capitalization of 78.8%.