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

Diamondback Energy, Inc. FANG reported third-quarter 2025 adjusted earnings per share (EPS) of $3.08, which beat the Zacks Consensus Estimate of $2.85. The outperformance was primarily driven by higher-than-expected production and lower cash operating costs. However, the company’s bottom line declined from the year-ago adjusted profit of $3.38, mainly due to an 11.7% decrease in the average realized oil price.

Meanwhile, revenues of $3.9 billion rose 48.4% from the year-ago quarter’s sales and topped the Zacks Consensus Estimate by 13.4%.

Diamondback Energy, Inc. Price, Consensus and EPS Surprise

Diamondback Energy, Inc. price-consensus-eps-surprise-chart | Diamondback Energy, Inc. Quote

During the quarter, Viper Energy, a subsidiary of Diamondback Energy, closed the acquisition of Sitio Royalties Corp.

During the third quarter of 2025, FANG returned a total of $892 million to its shareholders, representing approximately 50% of its adjusted free cash flow. This return of capital was comprised of share repurchases and the declared base cash dividend.

The Midland, TX-based oil and gas exploration and production company’s board of directors also declared a quarterly cash dividend of $1 per share to its common shareholders of record as of Oct. 31, 2025. The payout will be made on Nov. 20.

In terms of share repurchases, Diamondback Energy bought back 4,286,080 shares of common stock during the third quarter for $603 million, excluding excise tax, at a weighted average price of $140.70 per share.

Furthermore, the company repurchased $203 million in principal amount of its outstanding senior notes maturing in 2051 and 2052. These were acquired at an average price of 82.3% of par, amounting to a total cost of approximately $167 million.

FANG’s Q3 Production & Realized Prices

FANG’s production of oil and natural gas averaged 942,946 barrels of oil equivalent per day (BOE/d), comprising 53% oil. The figure was up 65% from the year-ago quarter and beat our estimate of 904,988.8 BOE/d. While crude and natural gas output increased 57% and 73.4% year over year, respectively, natural gas liquids volumes surged 77.7%.

The average realized oil price during the quarter was $64.60 per barrel, 11.7% lower than the year-ago realization of $73.13. However, the figure beat our estimate of $54.94 per barrel. Meanwhile, the average realized natural gas price surged to 75 cents per thousand cubic feet from negative 26 cents in the prior year. The figure was below our estimate of 87 cents. Overall, the upstream oil and gas company fetched $39.73 per barrel compared with $44.80 a year ago.

FANG’s Costs & Financial Position

Diamondback Energy’s third-quarter cash operating cost was $10.05 per BOE compared with $11.49 in the prior-year quarter and our estimate of $10.76. The drop in costs compared with the year-ago period reflected a decrease in lease operating expenses to $5.65 per BOE from $6.01 in the third quarter of 2024.

Further, FANG’s gathering, processing and transportation expenses fell 27.3% year over year to $1.41 per BOE, while cash G&A expenses fell in the third quarter of 2025 to 55 cents from 63 cents during the corresponding period of 2024. Moreover, production and ad valorem taxes also fell 16.2% year over year to $2.44 per BOE.

Diamondback Energy logged $774 million in capital expenditure — spending $632 million on drilling and completion, $48 million on infrastructure and environment and $94 million on capital workovers. The company booked $1.8 billion in adjusted free cash flow in the third quarter.

As of Sept. 30, the Permian-focused operator had approximately $159 million in cash and cash equivalents and $15.9 billion in long-term debt, representing a debt-to-capitalization of 25.8%.

FANG’s Q4 & 2025 Guidance

Diamondback Energy increases its full-year 2025 oil production guidance to 495-498 thousand barrels of oil per day (MBO/d). The company anticipates its annual BOE will increase to a range of 910-920 thousand barrels of oil equivalent per day (MBOE/d). In terms of capital expenditures, it expects to lower its full-year cash capital expenditures to a range of $3.45 billion to $3.55 billion. In 2025, Diamondback Energy expects to drill 445-465 gross (412-430 net) wells and complete between 510 and 520 gross (471-481 net) wells.

For the fourth quarter of 2025, this Zacks Rank #3 (Hold) company expects oil production to be 505-515 MBO/d and cash capital expenditures to be between $875 million and $975 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Important Energy Earnings at a Glance

While we have discussed FANG’s third-quarter results in detail, let us take a look at three other key reports in this space.

Alberta-based integrated energy company Suncor Energy Inc. SU reported third-quarter 2025 adjusted operating earnings of $1.07 per share, which beat the Zacks Consensus Estimate of 85 cents. This outperformance can be attributed to strong production growth in its upstream segment. However, the bottom line declined marginally from the year-ago quarter’s reported figure of $1.08 due to lower upstream price realizations.

Operating revenues of $9.2 billion beat the Zacks Consensus Estimate by 11.1%, primarily driven by increased sales volumes in both the upstream and downstream segments. However, the top line decreased approximately 3.9% year over year.

As of Sept. 30, 2025, Suncor Energy had cash and cash equivalents of C$2.9 billion and long-term debt of C$8.6 billion. Its debt-to-capitalization was 16%.

The Denver, CO-based oil and gas exploration and production company, Ovintiv Inc. OVV, reported third-quarter 2025 adjusted earnings per share of $1.03, which beat the Zacks Consensus Estimate of 97 cents. The outperformance was driven by higher plant condensate production volumes and higher average realized natural gas prices. However, the bottom line decreased from the year-ago level of $1.85.

OVV’s total revenues of $2.1 billion decreased 11% from the year-ago quarter’s figure, driven by lower oil production volumes and lower average realized oil and plant condensate prices. However, the top line beat the Zacks Consensus Estimate by 6.1%.

As of Sept. 30, the company had cash and cash equivalents worth $25 million and long-term debt of $4.4 billion. Its debt-to-capitalization was 30%.

The Calgary-based integrated oil and gas company, Imperial Oil Limited IMO, reported third-quarter 2025 adjusted earnings per share of $1.57, which beat the Zacks Consensus Estimate of $1.44. However, the bottom line decreased from the year-ago quarter’s $1.71. This decrease was due to lower upstream price realizations, partly offset by higher production volumes.

Revenues of $8.8 billion missed the Zacks Consensus Estimate of $11.1 billion. The top line also decreased from the year-ago quarter’s level of $9.7 billion due to weak performance in both the Upstream and Downstream segments.

As of Sept. 30, Imperial Oil had cash and cash equivalents of C$1.9 billion. Total debt of the company amounted to C$4 billion, with a debt-to-capitalization of 14.4%.

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This article originally published on Zacks Investment Research (zacks.com).

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