Quarterly ResultMay 6, 2026, 04:20 PM
Diamondback Q1 Net Income Plummets to $25M; $1.4B Impairment Charge
AI Summary
Diamondback Energy, Inc. reported a significant decline in net income for Q1 2026, falling to $25 million from $1,405 million in Q1 2025, primarily due to a $1.4 billion impairment charge on oil and natural gas properties. Despite an increase in total revenues to $4.24 billion, natural gas and NGL sales decreased. The company also completed the divestiture of Viper's non-Permian assets for $610 million and sold Viper Class A common stock for $589 million, using proceeds for debt reduction and general corporate purposes.
Key Highlights
- Net income attributable to Diamondback Energy, Inc. was $25 million in Q1 2026, down from $1,405 million in Q1 2025.
- Basic earnings per common share decreased to $0.08 in Q1 2026 from $4.83 in Q1 2025.
- Total revenues increased to $4.24 billion in Q1 2026 from $4.05 billion in Q1 2025.
- A $1.4 billion impairment charge on oil and natural gas properties was recognized in Q1 2026.
- Viper divested non-Permian assets for $610 million, used to repay $500 million Viper Term Loan.
- Diamondback sold Viper Class A common stock for $589 million, accelerating debt reduction.
- Net cash provided by operating activities was $1.83 billion in Q1 2026, down from $2.36 billion in Q1 2025.
- Long-term debt decreased to $13.15 billion as of March 31, 2026, from $13.73 billion.