Diamondback Energy reported its third‑quarter 2025 financial results, posting adjusted earnings of $3.08 per share and revenue of $3.92 billion. The company’s adjusted earnings beat the consensus estimate of $2.85 per share, while revenue surpassed the $3.46 billion forecast by 13.5%.
Operating cash flow rose to $2.4 billion, up from $1.2 billion in the same quarter a year earlier, and free cash flow reached $1.8 billion, a 154% increase from $708 million in Q3 2024. Net income for the quarter was $3.08 billion, compared with $2.26 billion a year earlier. Production averaged 503.8 million barrels of oil per day and 942.9 million barrels of oil equivalent per day, up 56% and 65% respectively from Q3 2024.
The company also announced the sale of Viper Energy’s non‑Permian assets for $670 million. The transaction is expected to close in the first half of 2026 and will reduce Diamondback’s debt while providing cash to fund high‑quality Permian development. Management said the sale aligns with the company’s strategy of divesting lower‑margin assets to strengthen its balance sheet.
Diamondback declared a base cash dividend of $1.00 per share for the quarter and repurchased approximately 4.3 million shares for $603 million, a significant portion of its free cash flow. The company updated its full‑year 2025 production guidance to 495‑498 million barrels of oil per day and 910‑920 million barrels of oil equivalent per day, reflecting continued investment in the Permian Basin following the Endeavor Energy merger.
The results demonstrate Diamondback’s ability to grow production and maintain profitability despite a decline in average oil prices, which fell to $64.60 per barrel from $73.13 a year earlier. The company’s focus on capital efficiency and debt reduction positions it for sustained growth in the Permian market.
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