Diamondback Energy Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - Diamondback Energy, Inc. (FANG) reported third-quarter 2025 adjusted earnings per share (EPS) of $3.08, exceeding the Zacks Consensus Estimate of $2.85, driven by higher production and lower cash operating costs, although the EPS declined from $3.38 in the previous year due to an 11.7% decrease in average realized oil price [1][9] Financial Performance - Revenues for the quarter reached $3.9 billion, a 48.4% increase from the same quarter last year, surpassing the Zacks Consensus Estimate by 13.4% [2] - The company returned $892 million to shareholders, approximately 50% of its adjusted free cash flow, through share repurchases and dividends [2][3] - A quarterly cash dividend of $1 per share was declared, payable on November 20, 2025 [3] Production and Costs - Average production was 942,946 barrels of oil equivalent per day (BOE/d), a 65% increase year-over-year, with 53% of this being oil [5] - The average realized oil price was $64.60 per barrel, down 11.7% from $73.13 a year ago, but above the estimate of $54.94 [6] - Cash operating costs decreased to $10.05 per BOE from $11.49 in the prior year, reflecting lower lease operating expenses [7][8] Capital Expenditures and Debt - Capital expenditures totaled $774 million, with significant investments in drilling and completion [9] - As of September 30, the company had $159 million in cash and cash equivalents and $15.9 billion in long-term debt, resulting in a debt-to-capitalization ratio of 25.8% [10] Future Guidance - Diamondback Energy raised its full-year 2025 oil production guidance to 495-498 thousand barrels per day (MBO/d) and expects annual BOE to increase to 910-920 MBOE/d [11] - The company plans to reduce full-year cash capital expenditures to a range of $3.45 billion to $3.55 billion [11][12]