Diamondback opens the
books on Monday evening.

Production Growth Strategy

production_growth_strategy

Diamondback plans to strategically grow production into 2027 with low single-digit organic growth, betting on low global inventories and a longer-term bid for oil, while maintaining capital efficiency.

"I think the goalposts are for us going into next year, do we hold production flat, which we're kind of doing from these higher elevated levels right now in Q3, or do we grow organically off of this number in a capital-efficient way. And right now, the model spits out some form of low single-digit organic growth while maintaining capital efficiency and running 5 frac crews consistently throughout the year."

- Kaes Van't Hof, CEO - Q2 FY26 Earnings Call - August 3, 2026

Gas Data Center Strategy

gas_data_center_strategy

As part of the gas mega theme, Diamondback is developing a unique "bridge-to-grid" power solution for data centers at its 30,000-acre Bryant Ranch location, aiming to deliver first gas in the back half of 2027.

"We have secured distributed power generation, remediated land and directed access to dedicated nat gas and water supply. All of this should allow us to provide a shovel-ready development project, delivering first gas as soon as the back half of 2027 through the use of behind-the-meter recip units."

- Jere Thompson, CFO - Q2 FY26 Earnings Call - August 3, 2026

Capital Allocation Debt

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Diamondback removed its minimum free cash flow commitment to enhance capital allocation flexibility, reducing net debt by $1.6 billion in Q2, which translated to $5.60 per share of value.

"So we did allocate a little bit to the buyback in Q2 as weakness stepped in at the end of the quarter. We've allocated a little bit to the buyback here in Q3. You can see that those numbers that we're willing to buy back at have gone up. But we also reduced net debt by $1.6 billion. And that translates to $5.60 a share of value that went from the debt side of the equation to the equity side because, in my mind, our NAV wasn't -- didn't go down much in the second quarter. In fact, it went up."

- Kaes Van't Hof, CEO - Q2 FY26 Earnings Call - August 3, 2026

Barnett Cost Reduction

barnett_cost_reduction

Diamondback is aggressively developing its Barnett position, aiming to reduce drilling costs to $400 per foot or less, expecting this program to yield returns competitive with the base plan.

"I will say, we're seeing wins on the drilling side. I think we're more on our front foot than anybody else in the basin on Barnett exposure and drilling costs. And they're getting closer to $400 a foot. I think we have 5% or 10% to go. There have been a couple of wells below $400 a foot, but I'm think we expect to consistently get to around that $400 or less per foot number to make returns competitive with the base plan."

- Kaes Van't Hof, CEO - Q2 FY26 Earnings Call - August 3, 2026

Enhanced Oil Recovery

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Diamondback's initial results from its 12-well surfactant EOR project are very positive, with some wells seeing production increases of 100 to 150 barrels/day, and the company plans to integrate this technology into new well pads.

"Yes, Arun, we -- so we executed a 12-well project this quarter and are in the process of flowing those wells back currently. The initial results are very positive. And I think we're going to take the learnings from this batch of wells in terms of what rock type, what reservoirs this technology is really suitable for and take those learnings and apply it to the next group of wells that we'll be doing in Q3."

- Albert Barkmann, Chief Engineer - Q2 FY26 Earnings Call - August 3, 2026