Diamondback Raises Base Distribution 7.3% After Quarterly Earnings Beat Expectations
Key Facts
Diamondback Energy raised its third-quarter base cash distribution 7.3% to $1.18 per share after the board approved the increase alongside quarterly results in which adjusted earnings per share exceeded the average analyst estimate. The company said the distribution will be paid on November 19, 2026, to shareholders of record at the close of business on November 12. Adjusted earnings per share were $5.86, compared with an average estimate of $5.46, beating the estimate by $0.40. For the quarter ended September 30, the company recorded net income attributable to it of $1.603 billion and diluted earnings of $5.69 per share. The base distribution increase came as the company reported quarterly operating cash flow and free cash flow.
Revenue from sales of oil, natural gas and natural gas liquids rose to $4.85 billion in the third quarter, up 41% year over year from $3.45 billion in the same period of 2025. Average oil production was 525 thousand barrels per day, while total production reached 1.034 million barrels of oil equivalent per day. These figures put the scale of operating activity alongside the reported revenue growth, while adjusted earnings per share topped the analyst average. On a quarterly comparison, net income attributable to the company was $1.882 billion and diluted earnings per share were $6.65 in the second quarter of 2026. The third quarter that followed posted lower net income and diluted earnings than that prior quarter.
Diamondback reported net cash from operating activities of $2.6 billion in the third quarter, while operating cash flow before changes in working capital reached $3.2 billion. Cash capital expenditures totaled $1.0 billion during the period. The company also disclosed free cash flow of $2.148 billion and adjusted free cash flow of $2.150 billion. These metrics provide a separate view of the cash generated by operations and capital investment during the quarter, alongside the decision to increase the distribution. The company did not describe the increase as tied to a specific metric, but announced it as part of its quarterly results and financial figures.
Alongside the distribution, the company repurchased 1,348,209 of its shares for about $251 million during the third quarter. The weighted average repurchase price was $185.94 per share, excluding the excise tax on share repurchases. The buyback represents an additional amount of cash directed to shareholders during the period, alongside the base cash distribution of $1.18 per share. FANG shares closed at $199.74 on November 2, 2026. The available closing data did not include a figure for the stock's high during that day's session.
The company raised its 2026 oil production guidance to about 524 thousand barrels per day, from more than 522 thousand in its previous guidance. It also raised its total production forecast to about 1.015 million barrels of oil equivalent per day, compared with more than 1 million previously. For the fourth quarter, it set an oil production range of 518 thousand to 528 thousand barrels per day, with total production targeted at between 1.025 million and 1.045 million barrels of oil equivalent per day. It estimated fourth-quarter cash capital expenditures at between $1.000 billion and $1.050 billion. It also raised its full-year 2026 capital expenditure guidance to a range of $3.95–$4.00 billion, from about $3.9 billion previously.
Diamondback is scheduled to hold a conference call and webcast to discuss its third-quarter results on November 3, 2026, at 8:00 a.m. U.S. Central Time. The event follows the company's release of its quarterly results and guidance, including estimates for fourth-quarter production and capital spending. Investing.com reported that the company's shares remained steady after the announcement. The record date for shareholders is November 12, with the distribution to be paid on November 19. These are the announced dates for eligibility for and payment of the third-quarter distribution.