Diamondback rides on higher oil prices to top profit estimates, raise output forecast (updated)

Diamondback Energy

03/08/2026 21:07

Q2 profit beats estimates on higher oil prices 
Raises 2026 production forecast to more than 1 million boepd
Diamondback doubles share buyback authorization to $16 billion
Adds CEO quote in paragraph 8, analyst comment in paragraph 8, details throughout, graphics
By Katha  Kalia
Aug 3 (Reuters) - Diamondback Energy FANG.O beat analysts' expectations for second-quarter profit and raised its annual production forecast on Monday, as supply disruptions due to the prolonged conflict in the Middle East keep global oil prices elevated.
The war in Iran, which started in late February, nearly shut the flow of Middle East cargoes through the crucial Strait of Hormuz, sending Brent crude from an average of $69.82 a barrel in January to $126.41 in April and WTI from $65.17 to $109.64.

 
"The timing of the eventual supply normalization is impossible to predict and we therefore expect this volatility to continue," CEO Kaes Van't Hof said in a letter to shareholders.
The company's realized price for each barrel of oil produced came in at $94.33 in the second quarter, compared with $62.34 a year earlier.
Diamondback said service-cost inflation has so far been largely limited to fuel-related expenses, but warned that costs for fixed items such as casing would rise through the rest of 2026 and into 2027 as activity levels and rig counts increase in the Permian Basin.
The company also doubled its share repurchase authorization to $16 billion, excluding tax, with about $9.9 billion remaining under the program as of July 31.
RBC Capital Markets analyst Scott Hanold said share buybacks exceeded expectations.
Oil producers are widely expected to prioritize dividends, share buybacks and balance-sheet strength as profits soar from higher prices of the commodity.
Diamondback now expects to produce over 1 million barrels of oil equivalent per day in 2026, compared with its prior projection of 972,000 boepd.
The company produced 1,018 Mboepd in the second quarter, up from 919,879 boepd a year earlier.

The Midland, Texas-based company Diamondback reported an adjusted profit of $6.48 per share for the three months ended June 30, compared with analysts' estimates of $6.01, according to data compiled by LSEG.

 (Reporting by Katha Kalia in Bengaluru; Editing by Sriraj Kalluvila)
 ((Katha.Kalia@thomsonreuters.com;))