Diamondback Energy

FANG Q2 2025 Earnings

Reported Aug 4, 2025 at 4:11 PM ET · SEC Source

Q2 25 EPS

$2.67

MISS 2.23%

Est. $2.73

Q2 25 Revenue

$3.68B

BEAT +10.30%

Est. $3.33B

vs S&P Since Q2 25

+29.8%

BEATING MARKET

FANG +44.6% vs S&P +14.8%

Market Reaction

Did FANG Beat Earnings? Q2 2025 Results

Diamondback Energy delivered a split-second quarter for Q2 2025, posting adjusted EPS of $2.67 against a consensus estimate of $2.73, a 2.23% miss, while revenue of $3.68 billion cleared expectations by 10.30% and surged 48.7% year over year. The div… Read more Diamondback Energy delivered a split-second quarter for Q2 2025, posting adjusted EPS of $2.67 against a consensus estimate of $2.73, a 2.23% miss, while revenue of $3.68 billion cleared expectations by 10.30% and surged 48.7% year over year. The divergence tells the story of a Permian operator caught between record operational efficiency and a punishing commodity price environment, with unhedged oil realizations sliding to $63.23 per barrel from $79.51 a year ago. New CEO Kaes Van't Hof, stepping into the role in May, used the quarter to accelerate a disciplined pullback, dropping four operated rigs to 13 and cutting the full-year capital budget by another $100 million to $3.40 to $3.60 billion, now 13% below the original midpoint. Despite that reduced spend, Diamondback narrowed its oil production guidance upward to 485 to 492 MBO/d, while the board expanded its buyback authorization by $2 billion to $8 billion total, signaling confidence in free cash flow even as management warned that U.S. Shale production has likely peaked at current prices.

Key Takeaways

  • Record-low drilling and completion cycle times driving capital efficiency
  • Completions crews averaged over 3,900 completed lateral feet per day, a company quarterly record
  • Endeavor merger synergies and lower service costs reducing capital budget
  • Cash operating costs fell to $10.10/BOE with LOE of $5.26/BOE
  • Oil production near top of guidance at 495.7 MBO/d despite reduced rig count
  • Improved gas capture and liquids yields in Martin County following Energy Transfer operations
  • Drilled longest well in company history at 31,035 feet total depth
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FANG YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

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FANG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q4 25

“We continue to believe that, at current oil prices, U.S. shale oil production has likely peaked and activity levels in the Lower 48 will remain depressed.”

— Kaes Van't Hof, Q2 2025 Earnings Press Release