Diamondback Records 525,000 Barrels of Oil a Day, Raises 2026 Production and Spending Guidance
Key Facts
Diamondback Energy reported results on November 2 for the third quarter ended September 30, 2026, recording average oil production of 525,000 barrels per day, a level unchanged from the previous quarter. Average total production was 1.034 million barrels of oil equivalent per day, up 2% quarter over quarter, according to the company’s results. The company raised its full-year oil production guidance to about 524,000 barrels per day, from 522,000 or more, and raised its total production outlook to about 1.015 million barrels of oil equivalent per day, from 1 million or more. Its expected annual capital spending range increased to $3.95–4.00 billion, compared with about $3.9 billion previously. The revisions pair a modest increase in production expectations with a higher capital budget, while the company says capital efficiency remains a priority in a volatile market.
Third-quarter results showed net income attributable to Diamondback rose to $1.603 billion, compared with $1.018 billion in the same period of 2025, according to its quarterly report. Cash operating costs were $10.91 per barrel of oil equivalent, including well operating expenses of $5.97 per barrel of oil equivalent. These figures offer an indication of profitability and operating costs in the quarter in which the company reported an increase in total production quarter over quarter. Oil production in the second quarter was 525,000 barrels per day, up 1% from the first quarter, while total production then was 1.018 million barrels of oil equivalent per day. Oil production therefore remained at the same level in the third quarter, while total production rose from the second-quarter level.
The revised annual guidance also reflects a higher estimate for capital activity, as the company raised its spending range from about $3.9 billion to $3.95–4.00 billion. At the same time, oil production guidance increased to about 524,000 barrels per day from 522,000 or more, and total production guidance rose to about 1.015 million barrels of oil equivalent per day from 1 million or more. The company said the macroeconomic environment is “highly volatile and impossible to predict” and that it expects current volatility to continue. It said its priorities include capital efficiency and appropriate allocation of free cash flow. The guidance puts spending and production at the center of its plan for the rest of the year, while acknowledging that market conditions may remain volatile.
On shareholder returns, Diamondback raised its third-quarter base cash distribution 7.3% to $1.18 per share. The company said the distribution will be paid on November 19, 2026, to shareholders of record on November 12. The decision was part of quarterly results that also included higher annual production and spending guidance. The distribution sets a date for eligible shareholders, while the company said allocating free cash flow remains among its priorities. The company’s stated policy thus combines spending on operating activity with a base cash distribution.
For the fourth quarter, the company set an oil production range of 518,000 to 528,000 barrels per day and total production of 1.025 million to 1.045 million barrels of oil equivalent per day. It also set cash capital expenditures for the period at $1.00 billion to $1.05 billion. These figures outline operating activity and spending for the period immediately following the reported quarter. In the broader market, the U.S. Energy Information Administration said the average Brent spot price was $114 per barrel in September, up $23 from August. The agency attributed the increase to escalating attacks on oil infrastructure and tankers in the Middle East, and is scheduled to release its next Short-Term Energy Outlook update on November 10, 2026.
For 2027, Diamondback expects to regularly operate five electric frac fleets simultaneously and said it will have enough drilling rigs to stay ahead of the frac fleets and maintain execution margins. The company linked this arrangement to its goal of maximizing operational efficiency. This comes as it reiterated that capital efficiency will remain a priority amid continued economic volatility. It represents an outlook for activity next year within the information the company announced, while fourth-quarter guidance remains defined by oil production, total production and capital spending within the stated ranges. The EIA’s next Short-Term Energy Outlook update is due on November 10.