Diamondback Energy Inc (NASDAQ:FANG) stock fell 3.03% (As on February 24, 11:12:11 AM UTC-4, Source: Google Finance) after the company fell short of Wall Street expectations for fourth-quarter profit, as the U.S. shale producer struggled with weaker oil prices. Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of more Venezuelan barrels returning to the market. WTI crude fell about 20% in 2025, and declined 8% in the October-December quarter. Benchmark Brent crude averaged about $63.13 per barrel during the October-December period, down more than 9% sequentially. The company said the average price was $58 per barrel during the fourth quarter, compared with $69.48 per barrel a year earlier. However, record oil production in the U.S. helped cushion the impact of weaker prices, with the country’s output averaging about 13.6 million barrels per day in 2025. Diamondback said it produced 969,120 barrels of oil equivalent per day, compared with 883,424 boepd a year earlier. The company said average realized prices for natural gas during the fourth quarter came in at $1.03 per thousand cubic feet (Mcf) after hedging, compared with 82 cents per Mcf a year earlier. For the net cash provided by operating activities of $2.3 billion and operating Cash Flow Before Working Capital Changes of $1.9 billion. Cash capital expenditures of $943 million and Adjusted Free Cash Flow of $1.2 billion
Moreover, Viper Energy, Inc. (the Company’s publicly traded mineral and royalty subsidiary, “Viper”) closed its non-Permian divestiture in February, generating $617 million of net proceeds that were used to fully repay its term loan due 2027 and the outstanding balance on its revolving credit facility.
FANG in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.74, missing the analysts’ estimates for the adjusted earnings per share of $2.08, according to data compiled by LSEG. Operating income for the quarter ended Dec. 31 was $435 million, up from $229 million a year earlier. Analysts surveyed by FactSet expected $422.8 million.
Additionally, the company increased annual base dividend by 5% to $4.20 per share; declared Q4 2025 base cash dividend of $1.05 per share payable on March 12, 2026; implies a 2.4% annualized yield based on February 20, 2026 closing share price of $176.01.
Diamondback now expects current-year net production to be between 926,000 boepd and 962,000 boepd. It forecasts capital expenditure to be between $3.6 billion and $3.9 billion. The capex includes $100 million-$150 million for exploration in the Barnett and Woodford, along with tests aimed at boosting oil recovery.