Diamondback Energy, an independent oil and gas producer based in the Permian Basin, recorded adjusted free cash flow of $1.8bn in the third quarter of 2025. The company achieved an average daily oil production of 503,750 barrels, equivalent to 942,946 barrels of oil equivalent per day, confirming stable operational performance in a moderate pricing environment.
Capital returns and asset refocusing
During the quarter, the company returned $892mn to shareholders through dividends and share repurchases, representing 50% of its adjusted free cash flow. A total of 4,286,080 shares were repurchased for approximately $603mn at an average price of $140.70 per share.
At the same time, Diamondback completed the sale of its 27.5% stake in EPIC Crude Holdings, LP, generating $504mn in cash, with an additional contingent consideration of $96mn tied to a possible future capacity expansion. Another transaction was closed on October 1 with the divestment of its subsidiary Environmental Disposal Systems for $694mn, while retaining a 30% equity interest in the acquirer, Deep Blue Midland Basin LLC.
Revised guidance and capital discipline
For the full year 2025, Diamondback now expects oil production between 495,000 and 498,000 barrels per day, up from a previous range of 485,000 to 492,000. Capital expenditure guidance has been narrowed to $3.45bn to $3.55bn, consistent with earlier forecasts.
The company plans to drill between 445 and 465 gross horizontal wells and complete 510 to 520 wells during the year. The average completed lateral length stands at approximately 11,500 feet. In the third quarter, 108 wells were drilled and 137 completed, mostly in the Midland Basin, with development costs estimated at $550 to $580 per foot.
Robust financial indicators despite price decline
Net income attributable to Diamondback reached $1.02bn, or $3.51 per diluted share. The company generated $2.4bn in operating cash flow, including $2.5bn before changes in working capital. Total revenues amounted to $3.92bn, including $3.45bn from oil, natural gas and liquids sales.
Despite a lower average oil price of $64.60 per barrel compared to $73.13 a year earlier, Diamondback maintained its margins by reducing operating costs to $10.05 per barrel of oil equivalent.
Financial structure and buyback strategy
Consolidated net debt stood at $15.89bn as of September 30, with total liquidity of $2.43bn. Since the start of the fourth quarter, the company has already repurchased $87mn in shares and $203mn in long-term debt at a discount.
The authorised share repurchase programme, increased to $8bn in July, had $3bn in remaining capacity as of October 31. Diamondback stated it will continue buybacks opportunistically using available cash, free cash flow, and proceeds from asset sales.
