Record Production Milestone
Average daily production reached 1,017.7 MBOE/d, surpassing the 1 million BOE/d threshold for the first time.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Diamondback Energy's second quarter fiscal 2026 was defined by record production, with daily output surpassing 1 million barrels of oil equivalent for the first time. The primary driver was sharply higher realized oil prices—up 32% sequentially on global supply constraints—which management identified as the key catalyst for revenue growth. Cost discipline and a $134 million gain on debt extinguishment further boosted net income, but natural gas realizations were pressured by widening Permian basis differentials. Looking ahead, the company raised its annual production guidance to approximately 1,000 MBOE/d, contingent on easing takeaway constraints later in the year.
Revenue
$5.56B
+51.22% YoY
EPS (Diluted)
$6.65
+179.41% YoY
Operating Income
$2.51B
+120.54% YoY
Source: SEC XBRL
Diamondback Energy (FANG) reported Q2 FY2026 revenue of $5.56B, up 51.2% year over year. Operating margin was 45.2%, up 14.2 points from 31.0% a year earlier. FANG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 6.48 | 6.13 | Beat +5.6% |
| Mar 2026 | 4.23 | 3.37 | Beat +25.5% |
| Dec 2025 | 1.74 | 2.12 | Miss -18.0% |
| Sep 2025 | 3.08 | 2.98 | Beat +3.2% |
Adjusted (non-GAAP) EPS of $6.48 versus the $6.13 analyst consensus — a +5.6% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $6.65.
Compiled by AI from 10-Q Item 2 of this filing
Average daily production reached 1,017.7 MBOE/d, surpassing the 1 million BOE/d threshold for the first time.
Source: 10-Q Item 2 MD&A
Management raised full-year production guidance by 3% to approximately 1,000 MBOE/d, citing global oil supply constraints and improved operational efficiencies.
Source: 10-Q Item 2 MD&A
The company retired $828 million in senior notes and fully repaid its $550 million term loan, recording a $134 million gain on extinguishment.
Source: 10-Q Item 2 MD&A
The board increased the share repurchase authorization from $8 billion to $16 billion, excluding excise tax.
Source: 10-Q Item 2 MD&A
Cash operating costs were $10.96 per BOE, reflecting disciplined cost management across lease operating, G&A, and gathering expenses.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 1 high, 3 medium, 1 low
The company's revenues and cash flows are highly sensitive to oil, natural gas, and NGL prices, which are influenced by global geopolitical events, OPEC+ decisions, and economic conditions. In 2026, oil prices rose on supply deficits, but future declines could materially impact earnings.
Source: 10-Q Item 2 MD&A
Natural gas realizations in the Permian Basin were adversely affected by basis differentials at the Waha Hub, leading to negative pricing periods. While infrastructure expansions are expected to alleviate constraints, realized prices remain vulnerable to regional supply and demand imbalances.
Source: 10-Q Item 2 MD&A
A $1.4 billion non-cash ceiling test impairment was recorded in Q1 2026 due to lower trailing 12-month commodity prices. If price benchmarks decline further, additional material write-downs of oil and gas properties could occur.
Source: 10-Q Item 2 MD&A
Conflicts, tariffs, trade barriers, and changing government policies contribute to commodity price uncertainty. For instance, Middle East tensions shifted the global oil market to a deficit in 2026, directly impacting the company's price realizations.
Source: 10-Q Item 2 MD&A
The company's growth depends on timely and cost-effective drilling and completion of wells. Any delays, cost overruns, or operational setbacks in the Permian Basin could hinder achieving production targets and capital efficiency.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.56 $B | 3.68 $B | +51.22% |
Operating Income $B | 2.51 $B | 1.14 $B | +120.54% |
Net Income $B | 1.88 $B | 0.70 $B | +169.24% |
EPS (Basic) $ | 6.65 $ | 2.38 $ | +179.41% |
EPS (Diluted) $ | 6.65 $ | 2.38 $ | +179.41% |
SG&A Expense $M | 72.00 $M | 67.00 $M | +7.46% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
FANG reported Q1 FY2026 revenue of $4.24B (+4.7% YoY) but saw a dramatic collapse in profitability, with operating income plunging 93.1% to $116M and net income falling 98.2% to just $25M, likely driven by a significant one-time or non-cash charge.
FANG (Diamondback Energy) delivered record revenue of $15.0B in FY2025, up 35.8% YoY driven by production growth, but operating income collapsed 71.2% to $1.27B as surging D&A costs from acquisitions compressed margins significantly.
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