Diamondback Energy

Diamondback Energy (FANG) Q2 2026 Earnings

Reported Aug 3, 2026 at 4:06 PM ET · SEC Source

Q2 26 EPS

$6.48

BEAT +8.32%

Est. $5.98

Q2 26 Revenue

$5.56B

BEAT +12.30%

Est. $4.95B

Did FANG Beat Earnings? Q2 2026 Results

Diamondback Energy, Inc. Delivered a decisive beat across the board in the second quarter of 2026, as a historic disruption to global oil flows supercharged the Permian producer's financials. The Midland-based company reported adjusted EPS of $6.48, … Read more Diamondback Energy, Inc. Delivered a decisive beat across the board in the second quarter of 2026, as a historic disruption to global oil flows supercharged the Permian producer's financials. The Midland-based company reported adjusted EPS of $6.48, beating the $6.00 consensus estimate by 8.32%, while revenue of $5.56 billion topped expectations of $4.95 billion by 12.30% and climbed 52.3% from the year-ago period. The primary driver was a surge in realized oil prices to $96.82 per barrel, up sharply from $63.23 a year ago, as disruption to oil flows through the Strait of Hormuz pulled an estimated 13.6 million barrels per day from global supply, triggering record inventory draws. Diamondback moved quickly to capitalize, accelerating completions activity to bring incremental barrels to market, with total production crossing one million BOE per day for the quarter. Free cash flow reached $2.33 billion, and the company reduced net debt by roughly $1.60 billion. Looking ahead, management raised full-year oil production guidance to 522-plus MBO per day while holding capital expenditures steady at approximately $3.90 billion.

Key Takeaways

  • Strait of Hormuz supply disruption drove oil prices significantly higher with realized oil price of $96.82/Bbl vs $63.23/Bbl year-ago
  • Oil production grew to 525 MBO/d, up from 496 MBO/d year-ago
  • Total production surpassed 1 million BOE/d at 1,018 MBOE/d
  • Total cash operating costs declined ~3% quarter over quarter to $10.96/BOE
  • Equipment cost per well fell ~14% quarter over quarter
  • Debt reduced by approximately $1.3 billion quarter over quarter
  • Added incremental completion crew to capitalize on elevated pricing

FANG Forward Guidance & Outlook

Diamondback raised its full-year 2026 oil production guidance to 522+ MBO/d (from 520+) and total production guidance to 1,000+ MBOE/d (from 972+), with full-year cash capital expenditures unchanged at approximately $3.9 billion. Q3 2026 oil production is guided at 517-527 MBO/d (total 995-1,015 MBOE/d) with Q3 capital expenditures of $950-$1,050 million. Several unit cost guidance items were tightened: cash G&A lowered to $0.55-$0.65/BOE, DD&A to $13.50-$14.50/BOE, and gathering/processing/transportation to $1.40-$1.60/BOE. The company expects service cost inflation on fixed costs such as casing through the rest of 2026 and into 2027 as Permian Basin rig count grows. Management expects to continue prioritizing debt reduction with excess free cash flow. The macro outlook remains highly volatile due to the Strait of Hormuz disruption, but management believes the restocking required to rebuild global inventories has structurally raised the floor for oil prices. New gas takeaway capacity turned Waha pricing positive in July, representing a potential tailwind going forward.

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FANG YoY Financials

Q2 2026 vs Q2 2025, source: SEC Filings

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FANG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q2 26

“During the second quarter, we were able to move quickly to take advantage of an elevated oil pricing environment. Our operations team demonstrated why they are the best in the business, putting us in an advantaged position to bring forward material value on our differentiated asset base. We were able to generate significant Free Cash Flow, allocate it appropriately and continue to create stockholder value for you, the owners of the Company.”

— Kaes Van't Hof, Q2 2026 Earnings Press Release