Quarterly ResultMay 4, 2026, 04:04 PM
Diamondback Energy Boosts Dividend 5% to $4.40; Q1 Production 521 MBO/d
AI Summary
Diamondback Energy reported strong first-quarter 2026 operational and financial results, with oil production averaging 521 MBO/d, exceeding guidance. The company announced a strategic shift in its capital allocation, removing the formulaic return commitment to stockholders to allow for greater flexibility. As part of this, Diamondback increased its base dividend by 5% to $4.40 per share annually and will continue share repurchases, while pausing variable dividends. The company also plans to increase production immediately by working down drilled but uncompleted wells and adding rigs, responding to a significant global oil supply deficit.
Key Highlights
- Base dividend increased by 5% to $4.40 per share annually.
- Q1 2026 oil production averaged 521 MBO/d, exceeding guidance of 502-512 MBO/d.
- Generated $1.7 billion in Free Cash Flow and Adjusted Free Cash Flow in Q1.
- Q1 capital expenditures were $933 million, below the midpoint of guidance.
- Consolidated gross debt decreased by $0.6 billion quarter-over-quarter.
- Repurchased $777 million in principal of long-dated notes for $632 million.
- Fully repaid $550 million outstanding on term loan due 2027.
- Total debt reduced by approximately $3.7 billion since Q3 2025.