Diamondback Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

MIDLAND, Texas, May 05, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2025. FIRST QUARTER 2025 AND RECENT HIGHLIGHTS Average oil production of 475.9 MBO/d (850.7 MBOE/d)Net cash provided by operating activities of $2.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.5 billionCash capital expenditures of $942 millionFree Cash Flow (as defined and reconciled below) of $1.5 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.6 billionDeclared Q1 2025 base cash dividend of $1.00 per share payable on May 22, 2025; implies a 2.9% annualized yield based on May 2, 2025 closing share price of $136.81Repurchased 3,656,044 shares of common stock in Q1 2025 for $575 million excluding excise tax (at a weighted average price of $157.15 per share); repurchased 1,965,180 shares of common stock to date in Q2 2025 for $255 million excluding excise tax (at a weighted average price of $129.71 per share)Total Q1 2025 return of capital of $864 million; represents ~55% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q1 2025 base dividendAs previously announced, closed acquisition of certain subsidiaries of Double Eagle IV Midco, LLC ("Double Eagle") on April 1stClosed drop down transaction to Viper Energy, Inc. ("Viper"), a subsidiary of Diamondback, on May 1st UPDATED 2025 GUIDANCE HIGHLIGHTS As a result of recent commodity price volatility, Diamondback is reducing activity in order to prioritize free cash flow generation. The Company believes this revised plan enhances capital efficiency and provides flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen. Full year oil production of 480 - 495 MBO/d (857 - 900 MBOE/d)Full year 2025 cash capital expenditures guidance of $3.4 - $3.8 billionThe Company expects to drill 385 - 435 gross (349 - 395 net) wells and complete between 475 - 550 gross (444 - 514 net) wells with an average lateral length of approximately 11,500 feet in 2025Q2 2025 oil production guidance of 485 - 500 MBO/d (866 - 900 MBOE/d)Q2 2025 cash capital expenditures guidance of $800 - $900 millionImplies full year 2025 oil production per million dollars of cash capital expenditures ("MBO per $MM of CAPEX") of 49.4, ~10% better than the Company's original full year 2025 guidance provided in February 2025 OPERATIONS UPDATE The tables below provide a summary of operating activity for the first quarter of 2025. Total Activity (Gross Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin 124 116 Delaware Basin 2 7 Total 126 123 Total Activity (Net Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin 116 112 Delaware Basin 2 7 Total 118 119 During the first quarter of 2025, Diamondback drilled 124 gross wells in the Midland Basin and two gross wells in the Delaware Basin. The Company turned 116 operated wells to production in the Midland Basin and seven gross wells in the Delaware Basin, with an average lateral length of 11,978 feet. Operated completions during the first quarter consisted of 30 Wolfcamp A wells, 28 Lower Spraberry wells, 22 Wolfcamp B wells, 17 Jo Mill wells, eight Middle Spraberry wells, four Dean wells, four Barnett wells, three Third Bone Spring wells, three Wolfcamp D wells, two Second Bone Spring wells and two Upper Spraberry wells. FINANCIAL UPDATE Diamondback's first quarter 2025 net income was $1.4 billion, or $4.83 per diluted share. Adjusted net income (as defined and reconciled below) for the first quarter was $1.3 billion, or $4.54 per diluted share. First quarter 2025 net cash provided by operating activities was $2.4 billion. During the first quarter of 2025, Diamondback spent $864 million on operated drilling and completions, $21 million on capital workovers and non-operated drilling and completions and $57 million on infrastructure, environmental and midstream, for total cash capital expenditures of $942 million. First quarter 2025 Consolidated Adjusted EBITDA (as defined and reconciled below) was $2.9 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the first quarter was $2.8 billion. Diamondback's first quarter 2025 Free Cash Flow (as defined and reconciled below) was $1.5 billion. Adjusted Free Cash Flow (as reconciled and defined below) for the first quarter was $1.6 billion. First quarter 2025 average unhedged realized prices were $70.95 per barrel of oil, $2.11 per Mcf of natural gas and $23.94 per barrel of natural gas liquids ("NGLs"), resulting in a total equivalent unhedged realized price of $47.77 per BOE. Diamondback's cash operating costs for the first quarter of 2025 were $10.48 per BOE, including lease operating expenses ("LOE") of $5.33 per BOE, cash general and administrative ("G&A") expenses of $0.72 per BOE, production and ad valorem taxes of $2.98 per BOE and gathering, processing and transportation expenses of $1.45 per BOE. As of March 31, 2025, Diamondback had $1.3 billion in standalone cash and no borrowings outstanding under its revolving credit facility, with approximately $2.5 billion available for future borrowings under the facility and approximately $3.8 billion of total liquidity. As of March 31, 2025, the Company had consolidated total debt of $14.1 billion and consolidated net debt (as defined and reconciled below) of $12.3 billion, up from consolidated total debt of $13.2 billion and consolidated net debt of $13.0 billion as of December 31, 2024. DIVIDEND DECLARATIONS Diamondback announced today that the Company's Board of Directors declared a base cash dividend of $1.00 per common share for the first quarter of 2025 payable on May 22, 2025 to stockholders of record at the close of business on May 15, 2025. Future base and variable dividends remain subject to review and approval at the discretion of the Company's Board of Directors. COMMON STOCK REPURCHASE PROGRAM During the first quarter of 2025, Diamondback repurchased ~3.7 million shares of common stock at an average share price of $157.15 for a total cost of approximately $575 million, excluding excise tax. To date, Diamondback has repurchased ~30.2 million shares of common stock at an average share price of $137.55 for a total cost of approximately $4.2 billion and has approximately $1.8 billion remaining on its current share buyback authorization. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired. FULL YEAR 2025 GUIDANCE Below is Diamondback's updated guidance for the full year 2025, which includes second quarter production, cash tax and capital guidance. Given recent weakness in commodity prices, the Company is reducing its activity levels and lowering its capital budget to prioritize free cash generation. Diamondback will continue to closely monitor the macro environment and has flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen. 2025 Guidance2025 Guidance Diamondback Energy, Inc.Viper Energy, Inc. 2025 Net production - MBOE/d857 - 900 (from 883 - 909)74.5 - 79.02025 Oil production - MBO/d480 - 495 (from 485 - 498)41.0 - 43.5Q2 2025 Oil production - MBO/d (total - MBOE/d)485 - 500 (866 - 900)40.0 - 43.0 (72.5 - 78.0) Unit costs ($/BOE) Lease operating expenses, including workovers$5.65 - $6.05 (from $5.90 - $6.30) G&A Cash G&A$0.60 - $0.75$0.80 - $1.00Non-cash equity-based compensation$0.25 - $0.35$0.10 - $0.20DD&A$14.00 - $15.00$15.50 - $16.50Interest expense (net of interest income)$0.40 - $0.65 (from $0.25 - $0.50)$2.00 - $2.50Gathering, processing and transportation$1.40 - $1.60 (from $1.20 - $1.40) Production and ad valorem taxes (% of revenue)~7%~7%Corporate tax rate (% of pre-tax income)23% Cash tax rate (% of pre-tax income)19% - 22% (from 17% - 20%)21% - 23%Q2 2025 Cash taxes ($ - million)(1)$340 - $400$10 - $15 Capital Budget ($ - million) Operated drilling and completion$2,780 - $3,090 (from $3,130 - $3,440) Capital workovers, non-operated properties and science$280 - $320 Infrastructure, environmental and midstream(2)$340 - $390 (from $390 - $440) 2025 Total capital expenditures$3,400 - $3,800 (from $3,800 - $4,200) Q2 2025 Capital expenditures$800 - $900 Gross horizontal wells drilled (net)385 - 435 (349 - 395) (from 446 - 471 (406 - 428)) Gross horizontal wells completed (net)475 - 550 (444 - 514) (from 557 - 592 (526 - 560)) Average lateral length (Ft.)~11,500' FY 2025 Midland Basin well costs per lateral foot$550 - $590 (from $555 - $605) FY 2025 Delaware Basin well costs per lateral foot$860 - $910 Midland Basin completed net lateral feet (%)~95% Delaware Basin completed net lateral feet (%)~5% (1)Includes approximately $170 million of cash taxes related to the Viper dropdown transaction.(2)Includes approximately $60 million in estimated midstream capital expenditures for the full year 2025. CONFERENCE CALL Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 2025 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site. About Diamondback Energy, Inc. Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com. Forward-Looking Statements This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger, the recently completed Double Eagle acquisition and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements. Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; changes in U.S. energy, environmental, monetary and trade policies, including with respect to tariffs or other trade barriers, and any resulting trade tensions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 26, 2025, and those risks disclosed in its subsequent filings on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors. In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law. Diamondback Energy, Inc.Condensed Consolidated Balance Sheets(unaudited, in millions, except share amounts) March 31, December 31, 2025 2024Assets Current assets: Cash and cash equivalents ($560 million and $27 million related to Viper) $ 1,816 $ 161 Restricted cash 225 3 Accounts receivable: Joint interest and other, net 257 198 Oil and natural gas sales, net ($146 million and $149 million related to Viper) 1,334 1,387 Inventories 117 116 Derivative instruments 267 168 Prepaid expenses and other current assets 67 77 Total current assets 4,083 2,110 Property and equipment: Oil and natural gas properties, full cost method of accounting ($22,019 million and $22,666 million excluded from amortization at March 31, 2025 and December 31, 2024, respectively) ($6,097 million and $5,713 million related to Viper and $2,279 million and $2,180 million excluded from amortization related to Viper) 83,727 82,240 Other property, equipment and land 1,452 1,440 Accumulated depletion, depreciation, amortization and impairment ($1,148 million and $1,081 million related to Viper) (20,283) (19,208)Property and equipment, net 64,896 64,472 Funds held in escrow 208 1 Equity method investments 383 375 Derivative instruments 61 2 Deferred income taxes, net ($249 million and $185 million related to Viper) 235 173 Other assets 200 159 Total assets $ 70,066 $ 67,292 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable - trade $ 124 $ 253 Accrued capital expenditures 754 690 Current maturities of debt 914 900 Other accrued liabilities 761 1,020 Revenues and royalties payable 1,575 1,491 Derivative instruments 75 43 Income taxes payable 550 414 Total current liabilities 4,753 4,811 Long-term debt ($822 million and $1,083 million related to Viper) 12,996 12,075 Derivative instruments 93 106 Asset retirement obligations 586 573 Deferred income taxes 9,887 9,826 Other long-term liabilities 8 39 Total liabilities 28,323 27,430 Stockholders’ equity: Common stock, $0.01 par value; 800,000,000 shares authorized; 287,287,926 and 290,984,373 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 3 3 Additional paid-in capital 33,125 33,501 Retained earnings (accumulated deficit) 5,352 4,238 Accumulated other comprehensive income (loss) (7) (6)Total Diamondback Energy, Inc. stockholders’ equity 38,473 37,736 Non-controlling interest 3,270 2,126 Total equity 41,743 39,862 Total liabilities and stockholders' equity $ 70,066 $ 67,292 Diamondback Energy, Inc.Condensed Consolidated Statements of Operations(unaudited, $ in millions except per share data, shares in thousands) Three Months Ended March 31, 2025 2024 Revenues: Oil, natural gas and natural gas liquid sales $ 3,657 $ 2,101 Sales of purchased oil 374 116 Other operating income 17 10 Total revenues 4,048 2,227 Costs and expenses: Lease operating expenses 408 255 Production and ad valorem taxes 228 119 Gathering, processing and transportation 111 77 Purchased oil expense 382 117 Depreciation, depletion, amortization and accretion 1,097 469 General and administrative expenses 73 46 Merger and integration expense 37 12 Other operating expenses 39 14 Total costs and expenses 2,375 1,109 Income (loss) from operations 1,673 1,118 Other income (expense): Interest expense, net (40) (39)Other income (expense), net 27 (3)Gain (loss) on derivative instruments, net 226 (48)Gain (loss) on extinguishment of debt — 2 Income (loss) from equity investments, net 8 2 Total other income (expense), net 221 (86)Income (loss) before income taxes 1,894 1,032 Provision for (benefit from) income taxes 403 223 Net income (loss) 1,491 809 Net income (loss) attributable to non-controlling interest 86 41 Net income (loss) attributable to Diamondback Energy, Inc. $ 1,405 $ 768 Earnings (loss) per common share: Basic $ 4.83 $ 4.28 Diluted $ 4.83 $ 4.28 Weighted average common shares outstanding: Basic 289,612 178,477 Diluted 289,612 178,477 Diamondback Energy, Inc.Condensed Consolidated Statements of Cash Flows(unaudited, in millions) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Net income (loss) $ 1,491 $ 809 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Provision for (benefit from) deferred income taxes 6 52 Depreciation, depletion, amortization and accretion 1,097 469 (Gain) loss on extinguishment of debt — (2)(Gain) loss on derivative instruments, net (226) 48 Cash received (paid) on settlement of derivative instruments 85 (4)(Income) loss from equity investment, net (8) (2)Equity-based compensation expense 18 14 Other 24 16 Changes in operating assets and liabilities: Accounts receivable (6) (95)Income tax receivable 3 12 Prepaid expenses and other current assets 6 89 Accounts payable and accrued liabilities (374) (110)Income taxes payable 135 70 Revenues and royalties payable 84 (35)Other 20 3 Net cash provided by (used in) operating activities 2,355 1,334 Cash flows from investing activities: Additions to oil and natural gas properties (942) (609)Property acquisitions (750) (153)Proceeds from sale of assets 41 12 Other (2) (1)Net cash provided by (used in) investing activities (1,653) (751)Cash flows from financing activities: Proceeds from borrowings under credit facilities 2,277 90 Repayments under credit facilities (2,538) (80)Proceeds from senior notes 1,200 — Repayment of senior notes — (25)Repurchased shares under buyback program (575) (42)Proceeds from partial sale of investment in Viper Energy, Inc. — 451 Net proceeds from Viper's issuance of common stock 1,232 — Dividends paid to stockholders (290) (548)Dividends/distributions to non-controlling interest (95) (44)Other (36) (71)Net cash provided by (used in) financing activities 1,175 (269)Net increase (decrease) in cash and cash equivalents 1,877 314 Cash, cash equivalents and restricted cash at beginning of period 164 585 Cash, cash equivalents and restricted cash at end of period $ 2,041 $ 899 Diamondback Energy, Inc.Selected Operating Data(unaudited) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Production Data: Oil (MBbls) 42,835 43,785 24,874 Natural gas (MMcf) 100,578 107,249 50,602 Natural gas liquids (MBbls) 16,961 19,615 8,653 Combined volumes (MBOE)(1) 76,559 81,275 41,961 Daily oil volumes (BO/d) 475,944 475,924 273,341 Daily combined volumes (BOE/d) 850,656 883,424 461,110 Average Prices: Oil ($ per Bbl) $ 70.95 $ 69.48 $ 75.06 Natural gas ($ per Mcf) $ 2.11 $ 0.48 $ 0.99 Natural gas liquids ($ per Bbl) $ 23.94 $ 19.27 $ 21.26 Combined ($ per BOE) $ 47.77 $ 42.71 $ 50.07 Oil, hedged ($ per Bbl)(2) $ 70.06 $ 68.72 $ 74.13 Natural gas, hedged ($ per Mcf)(2) $ 3.34 $ 0.82 $ 1.36 Natural gas liquids, hedged ($ per Bbl)(2) $ 23.94 $ 19.27 $ 21.26 Average price, hedged ($ per BOE)(2) $ 48.89 $ 42.76 $ 49.97 Average Costs per BOE: Lease operating expenses $ 5.33 $ 5.67 $ 6.08 Production and ad valorem taxes 2.98 2.77 2.84 Gathering, processing and transportation expense 1.45 1.17 1.84 General and administrative - cash component 0.72 0.69 0.76 Total operating expense - cash $ 10.48 $ 10.30 $ 11.52 General and administrative - non-cash component $ 0.24 $ 0.20 $ 0.34 Depreciation, depletion, amortization and accretion $ 14.33 $ 14.22 $ 11.18 Interest expense, net $ 0.52 $ 0.42 $ 0.93 (1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.(2)Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts. NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest ("net income (loss)") before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, if any, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expenses, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA: Diamondback Energy, Inc.Reconciliation of Net Income (Loss) to Adjusted EBITDA(unaudited, in millions) Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024Net income (loss) attributable to Diamondback Energy, Inc. $ 1,405 $ 1,074 $ 768 Net income (loss) attributable to non-controlling interest 86 216 41 Net income (loss) 1,491 1,290 809 Non-cash (gain) loss on derivative instruments, net (141) (51) 44 Interest expense, net 40 34 39 Depreciation, depletion, amortization and accretion 1,097 1,156 469 Depreciation and interest expense related to equity method investments 21 30 23 (Gain) loss on extinguishment of debt — — (2)Non-cash equity-based compensation expense 23 24 21 Capitalized equity-based compensation expense (5) (8) (7)Merger and integration expenses 37 30 12 Other non-cash transactions (19) 2 2 Provision for (benefit from) income taxes 403 115 223 Consolidated Adjusted EBITDA 2,947 2,622 1,633 Less: Adjustment for non-controlling interest 146 118 86 Adjusted EBITDA attributable to Diamondback Energy, Inc. $ 2,801 $ 2,504 $ 1,547 ADJUSTED NET INCOME Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest ("net income (loss)") adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, merger and integration expense, other non-cash transactions and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company's performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company's performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income: Diamondback Energy, Inc.Adjusted Net Income(unaudited, $ in millions except per share data, shares in thousands) Three Months Ended March 31, 2025 Amounts Amounts Per Diluted ShareNet income (loss) attributable to Diamondback Energy, Inc.(1) $ 1,405 $ 4.83 Net income (loss) attributable to non-controlling interest 86 0.30 Net income (loss)(1) 1,491 5.13 Non-cash (gain) loss on derivative instruments, net (141) (0.49)Merger and integration expense 37 0.13 Other non-cash transactions (19) (0.07)Adjusted net income excluding above items(1) 1,368 4.70 Income tax adjustment for above items 26 0.09 Adjusted net income(1) 1,394 4.79 Less: Adjusted net income attributable to non-controlling interest 74 0.25 Adjusted net income attributable to Diamondback Energy, Inc.(1) $ 1,320 $ 4.54 Weighted average common shares outstanding: Basic 289,612 Diluted 289,612 (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc, (ii) less the reallocation of $6 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding for the respective periods. OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure. Free Cash Flow, which is a non-GAAP financial measure, is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis as adjusted for non-recurring tax impacts from divestitures, merger and integration expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company's computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company uses Free Cash Flow to reduce debt, as well as return capital to stockholders as determined by the Board of Directors. The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow: Diamondback Energy, Inc.Operating Cash Flow Before Working Capital Changes and Free Cash Flow(unaudited, in millions) Three Months Ended March 31, 2025 December 31, 2024Net cash provided by operating activities $ 2,355 $ 2,341 Less: Changes in cash due to changes in operating assets and liabilities: Accounts receivable (6) (103)Income tax receivable 3 (3)Prepaid expenses and other current assets 6 (24)Accounts payable and accrued liabilities (374) 114 Income taxes payable 135 138 Revenues and royalties payable 84 59 Other 20 (100)Total working capital changes (132) 81 Operating cash flow before working capital changes 2,487 2,260 Additions to oil and natural gas properties (942) (933)Total Cash CAPEX (942) (933)Free Cash Flow 1,545 1,327 Merger and integration expenses 37 30 Treasury locks 1 — Adjusted Free Cash Flow $ 1,583 $ 1,357 NET DEBT The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company's leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt. Diamondback Energy, Inc.Net Debt(unaudited, in millions) March 31, 2025 Net Q1 Principal Borrowings/(Repayments) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 (in millions)Diamondback Energy, Inc.(1) $ 13,269 $ 1,200 $ 12,069 $ 12,284 $ 11,169 $ 5,669 Viper Energy, Inc.(1) 830 (261) 1,091 830 1,007 1,103 Total debt 14,099 $ 939 13,160 13,114 12,176 6,772 Cash and cash equivalents (1,816) (161) (370) (6,908) (896)Net debt $ 12,283 $ 12,999 $ 12,744 $ 5,268 $ 5,876 (1)Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments. DERIVATIVES As of May 2, 2025, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper Energy, Inc. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed. Crude Oil (Bbls/day, $/Bbl) Q2 2025 Q3 2025 Q4 2025 Q1 2026Long Puts - Crude Brent Oil 50,000 36,000 21,000 4,000 Long Put Price ($/Bbl) $58.30 $56.39 $55.00 $55.00 Deferred Premium ($/Bbl) $-1.50 $-1.50 $-1.47 $-1.45 Long Puts - WTI (Magellan East Houston) 96,000 102,000 65,000 15,000 Long Put Price ($/Bbl) $55.10 $54.75 $54.62 $55.00 Deferred Premium ($/Bbl) $-1.59 $-1.61 $-1.63 $-1.66 Long Puts - WTI (Cushing) 152,000 146,000 86,000 25,000 Long Put Price ($/Bbl) $55.53 $54.40 $53.98 $55.00 Deferred Premium ($/Bbl) $-1.59 $-1.55 $-1.55 $-1.32 Basis Swaps - WTI (Midland) 71,000 76,000 76,000 — $1.05 $1.05 $1.05 — Roll Swaps - WTI 25,000 25,000 25,000 — $0.93 $0.93 $0.93 — Natural Gas (Mmbtu/day, $/Mmbtu) Q2 2025 Q3 2025 Q4 2025 FY 2026FY 2027Costless Collars - Henry Hub 690,000 690,000 690,000 620,000 40,000 Floor Price ($/Mmbtu) $2.49 $2.49 $2.49 $2.77 $3.00 Ceiling Price ($/Mmbtu) $5.28 $5.28 $5.28 $6.33 $6.65 Natural Gas Basis Swaps - Waha Hub 610,000 610,000 610,000 460,000 240,000 $-0.88 $-0.88 $-0.88 $-1.62 $-1.48 Natural Gas Basis Swaps - Houston Ship Channel 13,407 20,000 20,000 40,000 — $-0.49 $-0.49 $-0.49 $-0.37 — Investor Contact:Adam Lawlis+1 432.221.7467alawlis@diamondbackenergy.com

Diamondback Energy, Inc. Announces First Quarter 2025 Financial and Operating Results

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