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Diamondback Energy, Inc. 8-K Report, Financial Results (Feb 23, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 23, 2026
Period End
February 23, 2026
Security
FANG
In the record · 2016–202610-K1210-Q328-K174

FANG filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 174 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Feb ’19Feb ’19
  2. Material agreement8-K · Mar ’21Mar ’21
  3. Leadership change8-K · Mar ’23Mar ’23
  4. Material agreement8-K · Mar ’25Mar ’25

01—Abstract

Summary

Summary of the 8-K filed February 23, 2026. Cited figures are marked; the original filing is the authoritative source.

Diamondback Energy (FANG) reported Q4 and full-year 2025 results on February 23, 2026, with the headline item being a 5% increase in its annual base dividend to $4.20a per share ($1.05 quarterly).

Q4 2025 oil production averaged 512.8 MBO/d (969.1 MBOE/d) and generated $2.3 billionb of operating cash flow, $1.0 billion of Free Cash Flow and $1.2 billion of Adjusted Free Cash Flow. Full-year 2025 Adjusted Free Cash Flow was $5.9 billion, and total return of capital reached $3.2 billion (54% of Adjusted Free Cash Flow), with 13.84 million shares repurchased for $2.0 billion. Reported results were weighed down by a $3.7 billion non-cash impairment in Q4, which produced a Q4 GAAP net loss attributable to Diamondback of $1.46 billion (-$5.11 per diluted share), though adjusted net income was $499 million ($1.74 per share).

The balance sheet improved meaningfully. Consolidated total debt fell to $14.7 billion and net debt to $14.6 billionc at year-end, down 11% and 8% quarter over quarter, supported by about $1.7 billion of full-year non-core asset sale proceeds (including EDS and EPIC Crude interests in Q4) and the repurchase of senior notes at a discount. Subsequent to year-end, Viper closed its non-Permian divestiture for $617 million of net proceeds, which were used to retire its term loan and revolver balance.

For 2026, management guided to flat activity versus 4Q25 levels, with oil production of 500-510 MBO/d and total cash capital expenditures of $3.6d-3.9 billion, including roughly $100-150 million for exploratory Barnett/Woodford and enhanced oil recovery work. Management also highlighted the SGF share repurchase arrangement, which allows the largest stockholder to sell up to 3.0 million shares per quarter to the company through 2026, and a stated intent to remain aggressive buyers of stock until commodity prices recover. The main risks flagged are continued oil price weakness, LOE increasing to $5.90-6.40 per BOE after the EDS sale, and gas egress constraints in the Permian.

02—Key points

Key Highlights

  1. Annual base dividend raised 5% to $4.20 per share; Q4 2025 base dividend of $1.05 payable March 12, 2026 (implies ~2.4% yield at $176.01).
  2. Q4 2025 Free Cash Flow of $1.0B and Adjusted Free Cash Flow of $1.2B; full-year Adjusted FCF of $5.9B with total return of capital of $3.2B (54% of Adjusted FCF).
  3. Q4 2025 GAAP net loss attributable to Diamondback of $1.46B (-$5.11/share) driven by a $3.65B non-cash impairment; adjusted net income was $499M ($1.74/share).
  4. Consolidated total debt reduced to $14.7B and net debt to $14.6B at year-end 2025, down 11% and 8% QoQ, aided by $950M term loan paydown and $203M of senior notes repurchased at 82.3% of par.
  5. 2026 guidance: oil production 500-510 MBO/d, total cash capex $3.6-3.9B, and activity held flat to 4Q25 levels.
  6. Proved reserves rose 2% to 3,618 MMBOE in 2025, with a 118% reserve replacement ratio (82% organic).
  7. Viper closed its non-Permian divestiture in February 2026 for $617M net proceeds, fully repaying its 2027 term loan and revolver balance; SGF may sell up to 3.0M shares per quarter to the company through December 31, 2026.

03—Questions

Frequently Asked Questions

  1. Is the dividend increase sustainable given the large Q4 GAAP loss?

    The Q4 loss was driven by a $3.65 billion non-cash impairment under full cost accounting, tied to lower year-end commodity prices rather than cash flow. Cash metrics support the payout: full-year Adjusted Free Cash Flow of $5.9B covered the $4.20 annual base dividend plus repurchases, and total return was 54% of Adjusted FCF, consistent with the company's stated commitment to return at least 50%.

  2. How much capital is Diamondback returning to shareholders?

    In 2025 the company returned $3.2B, including $2.0B in buybacks (13.84M shares, about 5% of beginning shares outstanding at $145.26 average) and dividends. In Q4 alone, total return was $734M, or 62% of Adjusted FCF. Q1 2026 buybacks to date totaled $371M (2.27M shares at $163.60).

  3. What does 2026 look like in terms of production and spending?

    Guidance calls for 500-510 MBO/d of oil (926-962 MBOE/d) and $3.6-3.9B of total cash capex, with activity kept flat to Q4 2025 levels. Q1 2026 guidance is 502-512 MBO/d and $900-975M of capex. Approximately $100-150M is allocated to exploratory and enhanced oil recovery work, including about $125M for Barnett and Woodford delineation.

  4. Why are operating costs rising in 2026?

    The company sold its Environmental Disposal Systems (EDS) business to Deep Blue for about $694M upfront, which raised Q4 LOE to $5.91/BOE. Management expects LOE to reset to $5.90-6.40/BOE in 2026 due to higher disposal and power costs, partly offset by the operating efficiencies and lower G&A the company is targeting.

  5. What is the SGF share repurchase arrangement?

    On November 28, 2025, Diamondback agreed with SGF FANG Holdings, LP, its largest stockholder, that SGF may (but is not required to) sell up to 3.0 million shares per calendar quarter back to the company at the most recent NASDAQ closing price through December 31, 2026. The company has used this to repurchase 4.0M shares since November, including a $305M purchase in Q4 2025, providing an orderly liquidity path that addresses concerns about a share overhang.

04—Continue

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