Diamondback Energy Reports $1.7 Billion Net Income and $15.03 Billion Revenue for 2025

Diamondback Energy Inc. reported a net income of $1.7 billion for the year ended December 31, 2025, which includes an impairment of approximately $3.7 billion recorded on its proved oil and natural gas properties during the fourth quarter. The company's total revenue reached $15.03 billion, driven by oil sales of $11.62 billion, natural gas sales of $400 million, and natural gas liquids sales of $1.43 billion. Average prices for the year were $64.04 per barrel of oil, $0.89 per Mcf of natural gas, and $17.88 per barrel of natural gas liquids, resulting in a combined average price of $40.02 per BOE.

Compared to the previous year, Diamondback's combined production volumes increased significantly, averaging 921.0 MBOE/d in 2025 compared to 598.3 MBOE/d in 2024. This increase was primarily due to new wells and the acquisitions of Endeavor and Double Eagle. Cash operating costs were $10.23 per BOE, including lease operating expenses of $5.55 per BOE. The company's cash capital expenditures, excluding acquisitions, totaled $3.5 billion. The company also divested its 27.5% equity interest in EPIC for approximately $504 million in cash and an additional $96 million in contingent consideration, resulting in a gain on the sale of equity method investments of approximately $299 million.

Strategic developments for Diamondback in 2025 included the completion of the Double Eagle Acquisition on April 1 for $3.1 billion in cash and approximately 6.84 million shares of the company's common stock. The company also divested its subsidiary, Environmental Disposal Systems, LLC, to Deep Blue Midland Basin LLC for upfront net cash proceeds of $694 million and approximately $34 million of additional equity interests issued by Deep Blue as non-cash consideration. Viper Energy, Inc., a subsidiary of Diamondback, completed the Sitio Acquisition on August 19 in an all-equity transaction valued at approximately $4.0 billion.

Operationally, Diamondback drilled 463 gross horizontal wells and completed 503 gross operated horizontal wells during the year. As of December 31, 2025, the company had approximately 869,036 net acres in the Permian Basin and an estimated 8,854 gross horizontal locations that it believes to be economic at $50.00 per Bbl WTI. The company paid dividends to stockholders of $1.2 billion during 2025 and declared a base cash dividend payable in the first quarter of 2026 of $1.05 per share of common stock. The company also increased its common stock repurchase program authorization to $8.0 billion, excluding excise taxes, and repurchased $2.0 billion of its common stock in 2025, leaving approximately $2.7 billion available for future repurchases at December 31, 2025. Looking ahead, Diamondback estimates its 2026 cash capital expenditures will be between $3.60 billion and $3.90 billion.