Diamondback Energy, Inc. Announces Fourth Quarter and Full Year 2025 Financial and Operating Results; Increases Base Dividend

Core Insights - Diamondback Energy, Inc. reported financial and operational results for Q4 and the full year of 2025, highlighting significant production and cash flow metrics, alongside a strategic focus on capital returns to shareholders [1]. Fourth Quarter 2025 Highlights - Average oil production reached 512.8 thousand barrels per day (MBO/d), with net cash provided by operating activities of $2.3 billion and operating cash flow before working capital changes of $1.9 billion [7]. - Free cash flow was reported at $1.0 billion, with adjusted free cash flow at $1.2 billion [7]. - The company repurchased 2.90 million shares for approximately $434 million at an average price of $149.50 per share, representing a total return of capital of $734 million, which is 62% of adjusted free cash flow [7][19]. - The annual base dividend was increased by 5% to $4.20 per share, with a declared Q4 2025 cash dividend of $1.05 per share [7][19]. Full Year 2025 Highlights - Total revenues for 2025 were $15.0 billion, up from $11.1 billion in 2024, driven by higher oil and gas sales [43]. - Average production for the year was 497.2 MBO/d, with free cash flow of $5.5 billion and adjusted free cash flow of $5.9 billion [8]. - Proved reserves as of December 31, 2025, were 3,618 million barrels of oil equivalent (MMBOE), a 2% increase year-over-year [8][26]. 2026 Guidance Highlights - The company anticipates oil production for 2026 to be between 500 - 510 MBO/d, with cash capital expenditures projected at $3.6 - $3.9 billion [8][34]. - Q1 2026 oil production guidance is set at 502 - 512 MBO/d, with cash capital expenditures expected to be between $900 million and $975 million [8][34]. Operational Updates - In Q4 2025, Diamondback drilled 107 gross wells and completed 127 gross wells, primarily in the Midland Basin [9]. - The average completed lateral length was approximately 12,474 feet [10]. Financial Update - The net income attributable to Diamondback Energy for Q4 2025 was a loss of $1.458 billion, with adjusted net income of $499 million [14]. - Consolidated adjusted EBITDA for the year was $10.281 billion, with net cash provided by operating activities totaling $8.758 billion [17]. Debt and Liquidity - As of December 31, 2025, consolidated total debt was $14.7 billion, with total standalone liquidity of $2.591 billion [18]. - The company has a share repurchase authorization totaling $8.0 billion, with $2.3 billion remaining as of February 20, 2026 [20].