Diamondback Energy Reports Q2 2025 Financial Results: $1.2 Billion Free Cash Flow and $691 Million Share Repurchases

Diamondback Energy reported strong Q2 2025 results, with oil production at 495.7 MBO/d and $1.2 billion in free cash flow. The company declared a $1.00 per share dividend and repurchased $691 million in shares. It increased its share repurchase authorization by $2 billion, bringing the total to $8 billion. The company reduced its capital expenditures guidance to $3.4-$3.6 billion and increased its annual BOE guidance by 2% to 890-910 MBOE/d.

Diamondback Energy, Inc. (NASDAQ: FANG) reported robust financial performance for the second quarter of 2025, with notable achievements in production, cash flow, and capital expenditures. The company announced its results on August 4, 2025, highlighting key financial metrics and strategic initiatives [1].

Production and Cash Flow

Diamondback's average oil production for the quarter stood at 495.7 million barrels of oil equivalent per day (MBOE/d), representing a significant increase in operational efficiency. The company generated $1.7 billion in net cash provided by operating activities, with a strong operating cash flow of $2.1 billion. Notably, free cash flow (FCF) reached $1.2 billion, demonstrating the company's ability to generate substantial liquidity from its operations [1].

Dividend and Share Repurchases

Diamondback declared a base cash dividend of $1.00 per share for the second quarter, payable on August 21, 2025. The company also repurchased $691 million in shares, representing approximately 52% of its adjusted free cash flow. This strategic move reflects the company's commitment to returning value to shareholders [1].

Capital Expenditures and Production Guidance

Diamondback reduced its full-year capital expenditures guidance to $3.4-$3.6 billion, a decrease of $500 million from the original guidance. This reduction is part of the company's ongoing efforts to optimize capital spending and enhance operational efficiency. The company also increased its annual BOE guidance by 2% to 890-910 MBOE/d, underscoring its commitment to steady production growth [1].

Operational Highlights

During the second quarter, Diamondback drilled and completed a total of 248 gross wells, with 224 operated wells turned to production in the Midland Basin and 15 in the Delaware Basin. The average lateral length for these wells was 12,656 feet, indicating the company's focus on maximizing well productivity [1].

Financial Update

Diamondback's second-quarter net income was $699 million, or $2.38 per diluted share. Adjusted net income was $785 million, or $2.67 per diluted share. The company's consolidated adjusted EBITDA was $2.4 billion, with adjusted EBITDA net of non-controlling interest at $2.3 billion. Free cash flow for the quarter was $1.2 billion, while adjusted free cash flow stood at $1.3 billion [1].

Future Outlook

The company's Board of Directors approved a $2 billion increase to the share repurchase authorization, bringing the total to $8 billion. This move underscores Diamondback's commitment to shareholder value and provides flexibility for future repurchases. The company expects to drill 425-450 gross wells and complete 490-515 gross wells in 2025, with an average lateral length of approximately 11,500 feet [1].

Conclusion

Diamondback Energy's strong Q2 2025 results reflect the company's operational excellence and strategic focus. The company's robust cash flow, reduced capital expenditures, and increased production guidance position it well for future growth and value creation for shareholders.

References:

[1] Diamondback Energy, Inc. (2025). Diamondback Energy, Inc. Announces Second Quarter 2025 Financial and Operating Results. Retrieved from https://www.diamondbackenergy.com/news-releases/news-release-details/diamondback-energy-inc-announces-second-quarter-2025-financial