Key Highlights

  • Diamondback Energy reported Net Income of $1.603 billion on Revenue of $5.431 billion, up 38.4% (calculated), and raised its base Dividend 7.3%.
  • California Resources reported a $315 million net loss after a $540 million non-cash derivative loss, with adjusted net income of $104 million.
  • Crescent Energy reported revenue up 56% to $1.35 billion and a net loss of $0.6 million after a $405.8 million derivative loss.
  • Kosmos Energy reported a net loss of $43.0 million, narrowed from $124.3 million, with a $133.9 million derivative loss.
  • Vitesse Energy reported a net loss of $36.4 million on revenue of $83.0 million, up 23%, after a $58.6 million derivative loss.

Why Did Four of Five Oil and Gas Producers Post Losses on Higher Revenue?

Five oil and gas producers filed or reported third quarter 2026 results on Nov 2, 2026, and four posted net losses. Diamondback Energy (NASDAQ:FANG) reported net income of $1.603 billion on revenue of $5.431 billion, up 38.4% (calculated). California Resources (NYSE:CRC) reported a net loss of $315 million on revenue of $421 million, down 50.8% (calculated). Crescent Energy (NYSE:CRGY) reported a net loss of $0.6 million on revenue of $1.351 billion, up 56%.

Kosmos Energy (NYSE:KOS) reported a net loss of $43.0 million on revenue of $409.88 million, up 31.7% (calculated), and discussed it on a Nov 3, 2026 call. Vitesse Energy (NYSE:VTS) reported a net loss of $36.4 million on revenue of $83.0 million, up 23%.

The common thread is Commodity derivatives. Each of the four loss-makers booked a derivative loss of $58.6 million to $540 million. The group is not ranked, and revenue bases differ widely. California Resources' total revenue is stated after a derivative loss, which is why it fell even though its oil, gas and Natural Gas liquids sales rose about 40% (calculated).

Diamondback Energy: How Much Free Cash Flow Did $5.4 Billion of Revenue Produce?

Diamondback's net income was $1.603 billion, or $5.69 per diluted share, versus $1.018 billion a year earlier, and adjusted Earnings were $5.86 per share. Oil production held at 525 MBO/d, flat with the second quarter, and the realized oil price was $87.30 per barrel versus $64.60 a year ago.

Free cash flow was $2.148 billion, and net Debt was $12.817 billion at Sep 30, 2026. The board raised the annual base dividend 7.3% to $4.72 per share, payable at $1.18 per quarter on Nov 19, 2026, and the company bought back 1.3 million shares for about $251 million. Full-year oil production guidance was raised to about 524 MBO/d, and fourth quarter output is guided to 518 to 528 MBO/d.

California Resources: Is an Adjusted Profit Hidden Behind a $315 Million Net Loss?

California Resources reported a net loss of $315 million, or $3.55 per diluted share, versus net income of $64 million a year earlier. A $540 million non-cash loss on the Fair Value of commodity Derivatives drove the swing. Excluding that and other items, adjusted net income was $104 million, or $1.17 per share, versus $123 million.

Production averaged 152 thousand barrels of oil equivalent per day, and free cash flow was $147 million. The company raised its annual dividend about 4% to $1.68, payable Dec 18, 2026, and repurchased $30 million of shares. It agreed to sell Uinta Basin Assets for about $90 million and guided fourth quarter adjusted EBITDAX to $340 million to $380 million.

Crescent Energy: How Did a $478.7 Million Operating Profit End in a Small Loss?

Crescent's income from operations jumped to $478.7 million from $30.8 million, but a $405.8 million derivative loss, against a $55.7 million gain a year earlier, and $94.2 million of interest expense left a net loss of $0.6 million. The loss attributable to Crescent was $2.2 million, or $0.01 per share.

Oil revenue rose 75% to $1.04 billion on a 34% higher realized oil price of $84.52 per barrel and 30% higher volumes, helped by a December 2025 merger. Adjusted EBITDAX rose 62% to $785.8 million. On Oct 8, 2026 the company agreed to buy Eagle Ford assets for about $4.2 billion in cash. The article draws on a quarterly filing only, with no press release or call.

Kosmos Energy: What Narrowed the Net Loss to $43.0 Million?

Kosmos cut its net loss to $43.0 million, or $0.07 per share, from $124.3 million, as oil and gas revenue climbed 31.9% (calculated) to $410.1 million. Oil sales averaged $88.57 per barrel versus $67.30. The $133.9 million derivatives loss, which the filing attributes to changes in the forward oil price curve, kept the quarter in the red.

Nine-month Operating Cash Flow was $445.6 million versus $98.7 million, and net debt fell to $2.47 billion from $2.98 billion, down 17.1% (calculated). Management expects about $300 million of free cash flow in 2026 and lower fourth quarter net production. A Ghana drilling campaign of up to ten wells is planned from mid-2027.

Vitesse Energy: Why Did Higher Realized Prices Still End in a $36.4 Million Loss?

Vitesse's revenue rose 23% to $83.0 million, as the average realized price before hedging rose 33% to $53.59 per barrel of oil equivalent, while volumes slipped 7%. Net loss was $36.4 million, or $0.86 per share, versus $1.3 million a year earlier.

A commodity derivative loss of $58.6 million, of which $46.6 million was unrealized, was the main driver, as the benchmark oil price moved from $69.50 per barrel at Jun 30, 2026 to $90.42 at Sep 30, 2026. About 76% of oil volumes were hedged, and the after-hedging oil price was $68.33 per barrel. The next dividend of $0.4375 per share is payable Dec 31, 2026.

Hedging Losses Versus Realized Oil Prices: How Do the Five Producers Compare?

Total derivative losses disclosed by the four loss-making producers were $1.138 billion (calculated). Combined net income for the five was $1.208 billion (calculated), but without Diamondback the other four combined for a net loss of $395.0 million (calculated). Diamondback made up 70.6% of the group's $7.696 billion combined revenue (calculated).

Realized oil prices before derivative settlements were similar, averaging $85.27 per barrel (calculated) across the five, with a spread of $6.01 (calculated) between Kosmos at $88.57 and Vitesse at $82.56. The definitions differ by company, so the figures are only loosely comparable.

What to Watch Next: Dividend Dates, Asset Sales and the Eagle Ford Deal

Diamondback pays its dividend on Nov 19, 2026, and Crescent pays on Nov 30, 2026. California Resources pays on Dec 18, 2026 and expects its Uinta Basin sale to close by year-end. Vitesse pays on Dec 31, 2026 to holders of record on Dec 15, 2026.

Crescent's Eagle Ford purchase is expected to close in the fourth quarter of 2026 or early 2027, subject to antitrust Waiting Period conditions. California Resources will give 2027 guidance with its fourth quarter report, and Kosmos names a Ghana campaign from mid-2027. No exact report dates were identified.