Diamondback Energy Q4 FCF $1.2B; Raises Dividend 5% to $4.20, Guides 502–512 MBO/d
Diamondback Energy generated $2.3B of operating cash flow in Q4, made $943M of cash capex and delivered $1.2B of adjusted free cash flow, repurchasing 2.9M shares for $434M and raising its annual base dividend 5% to $4.20 per share. The company reduced net debt by 8% sequentially and guided Q1 oil production of 502–512 MBO/d and capex of $900–975M for 2026.
1. Q4 Financial Highlights
Diamondback Energy reported $2.3 billion of net cash from operations in the fourth quarter of 2025, funding $943 million in capital expenditures and delivering $1.2 billion of adjusted free cash flow. The strong cash generation exceeded capital outlays and supported increased shareholder returns through buybacks and dividend growth.
2. Debt Reduction and Capital Allocation
During Q4, the company repurchased 2.90 million shares for approximately $434 million and increased its annual base dividend by 5% to $4.20 per share, representing a 2.4% yield. Diamondback also redeemed $950 million of term loan principal and reduced consolidated net debt by 8% quarter-over-quarter to $14.6 billion.
3. 2026 Guidance
Diamondback guided first-quarter 2026 oil production to 502–512 MBO/d (930–966 MBOE/d) and cash capital expenditures of $900–975 million. Full-year 2026 guidance targets 500–510 MBO/d of oil output and $3.6–$3.9 billion of capex, reflecting continued investment in drilling and completions efficiency.