Shale producer Diamondback Energy beats first-quarter profit estimates (updated)

Diamondback Energy

04/05/2026 21:08

Adds CEO comments in paragraph 3, details throughout, analyst comment in paragraph 13; updates shares

By Vallari Srivastava

May 4 (Reuters) - U.S. shale producer Diamondback Energy FANG.O raised its annual production forecast on Monday, after beating Wall Street expectations for first-quarter profit on a rally in oil prices.

    The first quarter was marked by geopolitical uncertainty and extreme volatility in oil prices, which have surged more than 87% this year after the U.S.-Israeli war on Iran disrupted supply chains and damaged key energy infrastructure.

"We believe there is a legitimate supply-demand imbalance and that the associated price signal is the catalyst to begin to grow production," said CEO Kaes Van't Hof.

Although Diamondback's operations are based in the U.S., the company benefits from higher commodity prices. Its realized price for each barrel of oil produced came in 3.5% higher at $72.53.

"Because of our positioning, our preparation and this price signal, we are bringing incremental barrels to the market immediately," Van't Hof said, adding that the company was well positioned to respond to the current macro environment.

Diamondback plans to run five completion crews and add two to three rigs over the remainder of 2026, a plan Van't Hof said enables it to maintain capital efficiency.

For the full-year, it expects capital expenditures of roughly $3.9 billion, up from $3.75 billion previously.

Diamondback now expects to produce over 972,000 barrels of oil equivalent per day in 2026, compared with its prior projection of 926,000 to 962,000 boepd.

The company said it aims to maximize shareholder value through opportunistic buybacks versus allocated returns, adding that variable dividends "would be put aside for now."

During the first quarter, Diamondback produced 979,356 boepd, up from 850,656 boepd a year earlier.

The Midland, Texas-based company posted an adjusted profit of $4.23 per share in the first-quarter, compared with analysts' estimates of $3.30 per share, according to data compiled by LSEG.

RBC Capital Markets analyst Scott Hanold said the results were positive, attributing the nearly 1% fall in shares during after-market trade to investors' "positioning into the print".

Crude rallies after Iran war breaks out https://reut.rs/4sErT10

 (Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid)

 ((Srivastava.Vallari@thomsonreuters.com;))