Diamondback Energy Raises Production Guidance to 520 MBO/d, Boosts Dividend 10%
Diamondback Energy averaged 521 MBO/d of oil output in Q1 2026, generated $2.6 billion operating cash flow and returned $859 million via $548 million in buybacks and a 10% dividend boost to $1.10. It raised full-year oil guidance to 520 MBO/d and reduced pro forma debt to $12.7 billion.
1. Q1 Financial Performance
Diamondback Energy reported average oil output of 521 MBO/d in Q1 2026 and total production of 979 MBOE/d, driven by Midland Basin operations. Net cash from operations was $1.8 billion, operating cash flow reached $2.6 billion, supporting $1.7 billion in free cash flow and $2.7 billion in Adjusted EBITDA.
2. Capital Returns and Debt Reduction
The company returned $859 million to shareholders through $548 million in share repurchases and raised its base dividend by 10% to $1.10 per share. It redeemed $777 million of senior notes, fully repaid a $550 million term loan and reduced pro forma gross debt to $12.7 billion with $2.1 billion of buyback authorization remaining.
3. Updated Guidance and Future Outlook
Diamondback increased full-year 2026 oil production guidance to 520 MBO/d (from 500–510 MBO/d) and set Q2 output guidance at 515–525 MBO/d. Capital expenditures are forecast at $3.9 billion with average lateral lengths of 12,900 feet, reflecting a disciplined approach to growth in the Permian Basin.