Key Highlights

  • Diamondback Energy (NASDAQ:FANG) traded near USD 206.10 on October 26, 2026, up 0.17%, with a market value near USD 57.71 billion, a trailing P/E of 39.93, EPS of USD 5.16 and a yield near 2.1%.
  • Second-quarter 2026 adjusted free cash flow was USD 2.331 billion on production of 1,018 thousand barrels of oil equivalent a day, with realized oil of USD 96.82.
  • Diamondback Energy (NASDAQ:FANG) raised full-year oil guidance to 522 thousand barrels a day or more and doubled its buyback authorization to USD 16.0 billion.
  • Net debt fell about USD 1.6 billion in the quarter to USD 12.3 billion, and third-quarter results are expected on November 2, 2026.

Free Cash Flow at Realized Prices

Brent crude changed hands near USD 114.51 (about USD 114) and West Texas Intermediate near USD 101.04 (about USD 100) on October 26, 2026. Diamondback Energy (NASDAQ:FANG) realized USD 96.82 a barrel of oil in the second quarter, or USD 94.33 after hedges, and generated USD 2.331 billion of adjusted free cash flow. That came from capital spending of USD 996 million against 525 thousand barrels a day of oil. Net income attributable was USD 1.882 billion, or USD 6.65 a share, with adjusted income of USD 1.833 billion or USD 6.48. Natural gas realized a negative price of USD 2.15 per thousand cubic feet, a reminder of Permian gas takeaway constraints.

Capital Returns and Guidance

The company repurchased 756,385 shares for about USD 141 million in the second quarter and a further 547,716 shares for about USD 100 million in the third quarter to date. The authorization was doubled to USD 16.0 billion with about USD 9.9 billion remaining. The base dividend is USD 1.10 a share. Full-year capital spending is unchanged at about USD 3.9 billion, while oil guidance rose to 522 thousand barrels a day or more and total guidance to 1,000 thousand barrels of oil equivalent a day or more. Net debt was USD 12.304 billion.

Risks and What to Watch

A trailing P/E of 39.93 is the highest in the group because trailing earnings include weaker earlier quarters, so the valuation looks lower on forward numbers; this is a caution, not a conclusion. Negative gas realizations and a hedge book that cost about USD 2.49 a barrel in the quarter (simple arithmetic on two published realized prices) reduce upside. A published calendar lists third-quarter results for November 2, 2026, after the close. A Middle East settlement or weaker demand would cut crude, and the Federal Reserve decision on October 28 and U.S. midterms on November 3 add event risk. Capital spending for the third quarter is guided to USD 950 million to 1.05 billion, and liquidity of USD 3.385 billion gives flexibility if prices fall. Total debt was USD 12.766 billion at June 30, 2026, down about USD 1.3 billion in the quarter.

Where Things Stand

Diamondback Energy (NASDAQ:FANG) showed in the second quarter that a realized price near USD 97 can produce more tha USD 2.3 billion of quarterly free cash flow, enough to fund buybacks and debt reduction at once. If WTI stays near USD 100, the third quarter should look similar, subject to its guidance of 517 to 527 thousand barrels of oil a day. The November 2 report will test that, and a peace deal would be the main risk.