We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Diamondback (FANG) Down 1.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Diamondback due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Diamondback Energy Q1 Earnings Beat Estimates, Dividend Raised
Diamondback Energy 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.
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.
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.
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%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.89% due to these changes.
VGM Scores
At this time, Diamondback has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Diamondback has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Diamondback (FANG) Down 1.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Diamondback Energy (FANG - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Diamondback due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Diamondback Energy Q1 Earnings Beat Estimates, Dividend Raised
Diamondback Energy 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.
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.
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.
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%.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 10.89% due to these changes.
VGM Scores
At this time, Diamondback has a average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Diamondback has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.