Diamondback Q2 profit beats estimates on higher oil prices, hikes forecast

Diamondback Energy

03/08/2026 21:10

Overview
U.S. oil and gas producer's Q2 adjusted EPS and adjusted net income beat analyst expectations
Company, in July, doubled share repurchase authorization to $16 bln, with $9.9 bln remaining
Repurchased $141 mln in shares during Q2 2026

Outlook
Diamondback raises 2026 oil production guidance to 522+ MBO/d and total production to 1,000+ MBOE/d
Company sees Q3 2026 oil production of 517 - 527 MBO/d and capital expenditures of $950 - $1,050 mln
Diamondback maintains full-year capital expenditures guidance at ~$3.9 bln

Result Drivers
HIGHER OIL PRICES - Co realized average oil price of $96.82 per barrel in Q2, up from $63.23 a year earlier
PRODUCTION GROWTH - Q2 oil production averaged 525,000 barrels per day, with total production surpassing 1 million BOE per day

Company press release: ID:nGNX7d1LT

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Beat
$6.48
$6.01 (22 Analysts)
Q2 EPS
 
$6.65
 
Q2 Adjusted Net Income
Beat
$1.83 bln
$1.73 bln (15 Analysts)
Q2 NET_INCOME
 
$1.88 bln
 
Q2 Adjusted Free Cash Flow
 
$2.33 bln
 
Q2 Dividend
 
$1.10
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the oil & gas exploration and production peer group is "buy"
Wall Street's median 12-month price target for Diamondback Energy Inc is $223.00, about 9.9% above its July 31 closing price of $202.95
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 3 - War-fueled oil rally set to lift shale profits to highest since 2022
Aug 3 - Kosmos Energy tops Q2 revenue estimates, swings to profit
July 31 - Chevron records highest quarterly profit in six years, beating analyst estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)