Diamondback Energy Generates $5.9B FCF, Raises Dividend 5% and Authorizes $2.3B Buybacks
Diamondback Energy generated $5.9 billion in adjusted free cash flow on 921 MBOE/d average production in 2025. It raised dividends 5% to $4.20 per share, returned $3.2 billion to investors, authorized $2.3 billion more for buybacks and guided 2026 oil output of 500–510 MBO/d on a $3.6–3.9 billion capex budget.
1. 2025 Operational Results
Diamondback Energy averaged 921.0 MBOE/d of production across 2025, highlighted by Q4 oil output of 512.8 MBO/d. This performance drove $5.9 billion in adjusted free cash flow for the full year and $1.2 billion in the fourth quarter.
2. Shareholder Returns
The company increased its annual base dividend by 5% to $4.20 per share and returned $734 million through dividends and 2.90 million share repurchases in Q4. Total capital returns for 2025 reached $3.2 billion, representing 54% of adjusted free cash flow, with $2.3 billion of additional repurchase authorization remaining.
3. 2026 Guidance
For 2026, Diamondback projects oil production of 500–510 MBO/d supported by a $3.6–3.9 billion capital budget. The plan dedicates $100–150 million to exploratory projects in the Barnett and Woodford formations and targets completion of approximately 6 million net lateral feet.