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Diamondback Energy (NASDAQ:FANG) Announces Earnings Results, Beats Expectations By $0.14 EPS
The payout now consumes only 15% of third-quarter free cash flow as Diamondback also bought back 1.35 million shares and cut debt to $13.4 billion.
Diamondback Energy raised its quarterly base dividend 7.3% to $1.18 per share, extending a pattern of steady increases since November 2024.
Management prioritizes a stable, growing base dividend and opportunistic stock buybacks to ensure payout durability even if oil prices fall sharply.
Diamondback produced $2.15 billion of free cash flow in the third quarter, with the $309 million dividend payout covered nearly 7 times over.
Oil production per share rose 7.5% year-over-year while Diamondback continues reducing its $13.4 billion debt, strengthening the dividend's long-term foundation.
Chief Operating Officer Daniel Wesson projects 2027 maintenance costs at "roughly $1 billion to a little over $1 billion a quarter," keeping output flat with oil below $40 per barrel.