Diamondback Energy raised its production guidance for 2026 after reporting a solid first quarter driven by activity in the Permian Basin and strong free cash flow generation.
The company reached an average production of 521 thousand barrels of oil per day during the quarter and raised its annual projection to 520 MBO/d, compared to the previous range of between 500 and 510 MBO/d. Likewise, the total estimated production for the year rose to 972 MBOE/d.
Operational performance was supported by activity in the Midland Basin, where Diamondback drilled 118 gross wells and completed 147 during the period. Operations were primarily concentrated in the Wolfcamp and Spraberry formations, considered strategic within the Permian.
Free cash flow exceeds $1.7 billion
The company generated $1.8 billion in net cash from operating activities, while operating cash flow before working capital reached $2.6 billion.
Furthermore, adjusted EBITDA attributable to Diamondback stood at $2.7 billion, allowing for free cash flow of approximately $1.7 billion.
Realized oil prices averaged $73.47 per barrel and cash operating costs remained at $11.26 per BOE, a figure that reflects the company’s operational efficiency in the Permian.
Diamondback increases dividends and share buybacks
The company also reinforced its capital return strategy for shareholders. During the quarter, it repurchased 3.3 million shares for $548 million at a weighted average price of $167.61 per share.
Additionally, Diamondback increased its base dividend to $1.10 per share, representing a 10% year-over-year increase.
In total, the capital return to shareholders reached $859 million between dividends and buybacks.
Lower debt and higher investment for 2026
Diamondback also reported progress on its debt reduction strategy. The company retired approximately $777 million in senior notes and fully settled a $550 million term loan.
As a result, pro forma gross debt was reduced to $12.7 billion at the close of April 2026.
Meanwhile, the full-year cash capital expenditure guidance increased to $3.9 billion. The company projects average lateral lengths of 12,900 feet and oil production for the second quarter in a range between 515 and 525 MBO/d.
Production in the Permian maintains growth
The results consolidate Diamondback Energy as one of the independent producers with the highest cash generation capacity in the Permian Basin.
The increase in production, along with financial discipline and debt reduction, strengthens the company’s position against oil market volatility and maintains its organic growth prospects for 2026.
Source: Diamondback Energy