Diamondback Energy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income attributable to Diamondback Energy, Inc. of $1,603 million for the three months ended September 30, 2026, compared to $1,018 million in the same period in 2025.
• Earnings per diluted share were $5.69 for the quarter, up from $3.51 in Q3 2025.
• Adjusted net income for the quarter was $1,649 million, or $5.86 per diluted share.
• Consolidated Adjusted EBITDA was $3,752 million for the quarter, with $3,393 million attributable to Diamondback Energy, Inc.
• Net cash provided by operating activities was $2,599 million for the quarter, compared to $2,383 million in Q3 2025.
• Operating cash flow before working capital changes was $3.2 billion for the quarter.
• Free cash flow was $2.1 billion, and Adjusted Free Cash Flow was $2.2 billion for the quarter.
• Total revenues were $5,431 million for the quarter, up from $3,924 million in Q3 2025.
• Cash capital expenditures were $1,026 million for the quarter, compared to $774 million in Q3 2025.
• Consolidated total debt was $13,375 million as of September 30, 2026, down from $14,667 million as of June 30, 2026.
• Consolidated net debt was $12,817 million as of September 30, 2026.
• Standalone cash was $548 million, with $3,000 million remaining availability under the credit facility, resulting in total standalone liquidity of $3,548 million.
• Nine-month net income attributable to Diamondback Energy, Inc. was $3,510 million, compared to $3,122 million in the same period in 2025.
• Nine-month Adjusted EBITDA was $10,693 million.
• Nine-month Free Cash Flow was $6.2 billion.

Guidance and Future Outlook:

• Increased full-year 2026 oil production guidance to approximately 524 MBO/d (from 522+ MBO/d).
• Increased full-year 2026 total BOE production guidance to approximately 1,015 MBOE/d (from 1,000+ MBOE/d).
• Increased full-year 2026 cash capital expenditures guidance to $3.95–$4.00 billion (from ~$3.9 billion).
• Provided Q4 2026 oil production guidance of 518–528 MBO/d (1,025–1,045 MBOE/d).
• Provided Q4 2026 cash capital expenditures guidance of $1,000–$1,050 million.
• Updated 2026 unit cost guidance: Lease operating expenses to $5.95–$6.20/BOE (from $5.90–$6.40); Gathering, processing and transportation to $1.30–$1.50/BOE (from $1.40–$1.60); Production and ad valorem taxes to ~6.5% of revenue (from ~7%).
• Maintained 2026 cash G&A guidance of $0.55–$0.65/BOE and non-cash equity-based compensation of $0.20–$0.30/BOE.
• Maintained 2026 interest expense guidance of $0.50–$0.70/BOE and DD&A guidance of $13.50–$14.50/BOE.
• Maintained 2026 corporate tax rate guidance of 23% and cash tax rate guidance of 19%–22%.
• Provided Q4 2026 cash taxes guidance of $500–$560 million.
• Maintained 2026 average lateral length guidance of approximately 12,900 feet.
• Increased 2026 net lateral footage completed guidance to 6,200–6,600 thousand feet (from 6,100–6,500 thousand feet).

Business Segments and Product Lines:

• Average oil production for Q3 2026 was 525 MBO/d (1,034 MBOE/d).
• Drilled 105 gross wells (100 net) and completed 135 gross wells (133 net) in Q3 2026.
• Completed 450 gross wells (427 net) in the first nine months of 2026.
• Average completed lateral length in Q3 2026 was 13,584 feet.
• Realized average oil price was $87.30 per Bbl in Q3 2026, compared to $64.60 in Q3 2025.
• Realized combined price was $51.03 per BOE in Q3 2026, compared to $39.73 in Q3 2025.
• Total operating expense per BOE was $10.91 in Q3 2026, compared to $10.05 in Q3 2025.
• Acquired a 7.5% equity interest in the Solitude Pipeline System, a Permian-to-Katy natural gas pipeline.
• Redeemed all $698 million in aggregate principal amount of the Company's 2026 Senior Notes at par on October 1, 2026.

Market and Competitive Landscape:

• The Company operates primarily in the Permian Basin in West Texas.
• Realized oil prices increased significantly year-over-year, contributing to higher revenues and cash flow.
• The Company continues to execute a strategy of high-return capital allocation through dividends and share repurchases.

Risks and Challenges:

• Forward-looking statements involve risks including geopolitical and market conditions, changes in commodity prices, and OPEC+ actions.
• Risks include changes in U.S. energy, environmental, monetary, and trade policies, including tariffs.
• Potential impacts from induced seismicity in the Permian Basin, including restrictions on water use and moratoriums on new disposal well permits.
• Risks related to climate change, ESG factors, and the Company's sustainability targets.
• Challenges in employee retention, labor market competition, and availability/cost of rigs and equipment.
• Risks associated with substantial indebtedness and restrictions on operating and financial flexibility.
• Risks related to the integration of acquisitions, including Viper's Riverbend, McElroy Ranch, and Sitio acquisitions.
• Potential conflicts of interest with Endeavor stockholders.

Management Commentary and Tone:

• The Board of Directors approved a 7.3% increase to the base cash dividend, raising it to $1.18 per common share for Q3 2026, payable November 19, 2026.
• The annualized dividend yield is approximately 2.2% based on the October 30, 2026 closing share price.
• The Company expects to continue repurchasing shares opportunistically using cash on hand, free cash flow, and potential asset sale proceeds.
• Management highlighted the successful redemption of the 2026 Senior Notes and the acquisition of the Solitude Pipeline System equity interest as recent highlights.

Other Key Points:

• Repurchased 1,348,209 shares of common stock in Q3 2026 for approximately $251 million at a weighted average price of $185.94 per share.
• Repurchased $106 million in aggregate principal amount of 2054 and 2064 Senior Notes at a weighted average price of 94.9% of par ($103 million including accrued interest).
• Repurchased $195 million in aggregate principal amount of 2054 and 2064 Senior Notes in the first nine months of 2026 at a weighted average price of 91.0% of par ($183 million including accrued interest).
• Repurchased 389,841 shares of common stock in Q4 2026 to date for approximately $73 million.
• Cumulative share repurchases under the program total 44,183 thousand shares for a total cost of $6,348 million.
• Total return of capital in Q3 2026 was $582 million (dividends plus share repurchases).
• The share repurchase program has no time limit and may be suspended, modified, or discontinued at the Board's discretion.
• All shares repurchased will be retired.
• Conference call and webcast scheduled for November 3, 2026, at 8:00 a.m. CT.