Will Diamondback's Permian Scale Drive Q3 Earnings Beat?

Core Insights - Diamondback Energy (FANG) is scheduled to report its third-quarter 2025 results on November 3, with an expected earnings per share (EPS) of $2.79 and revenues of $3.4 billion [1][9] Group 1: Previous Performance - In the second quarter, Diamondback reported adjusted EPS of $2.67, exceeding the Zacks Consensus Estimate of $2.63, with revenues of $3.7 billion, surpassing estimates by 11.8% [2] - The company has beaten the Zacks Consensus Estimate in three of the last four quarters, with the most recent estimate for the third quarter revised upward by 2.6%, indicating a year-over-year decline of 17.5% in EPS but a revenue increase of 29.1% [3] Group 2: Operational Factors - Diamondback holds over 850,000 net acres in the Delaware and Midland regions, with nearly 9,600 drilling locations and production exceeding 900,000 barrels of oil equivalent per day [4] - The recent $26 billion acquisition of Endeavor Energy enhances Diamondback's position in the Permian Basin, providing access to high-quality acreage and lower production costs [5] - The company is expected to benefit from increased production in the third quarter, with an average volume forecasted at 904,988.8 BOE/d, reflecting a 58.5% increase from the previous year's level of 571,098 BOE/d [6] Group 3: Earnings Outlook - The company's earnings model suggests a likely earnings beat, supported by a positive Earnings ESP of +4.26% and a Zacks Rank of 3 [7]