Diamondback Energy, Inc. (FANG)

Diamondback Energy is an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves, primarily in the Permian Basin of West Texas. It reports a single segment, the upstream segment. Its publicly traded subsidiary, Viper Energy, owns mineral and royalty interests primarily in the Permian Basin, and Diamondback owned about 42% of Viper's shares on a fully diluted basis at December 31, 2025. The company's strategy emphasizes capital discipline, low-cost development, a capital return program of at least 50% of quarterly Adjusted Free Cash Flow, and acquisitions in the Permian.

Activity centers on horizontal development of the Spraberry and Wolfcamp formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin. At year-end 2025 the company held about 1,097,846 gross (869,036 net) acres, mostly in the Midland Basin (774,645 net acres) with the remainder in the Delaware Basin (94,391 net acres). It had working interests in 6,677 horizontal producing wells, of which it operated 5,342. Estimated proved reserves were 3,617,856 MBOE, including 406,035 MBOE attributable to Viper's mineral interests. About 70% were proved developed producing, and the reserves were roughly 49% oil, 24% natural gas and 27% natural gas liquids. The company identified about 8,854 gross (6,541 net) potential horizontal drilling locations at an assumed WTI price of about $50 per barrel. In 2025 it drilled 463 gross operated horizontal wells and completed 503, with cash capital spending of $3.5 billion. For 2026 it expects $3.60 billion to $3.90 billion of cash capital expenditures and plans to run 15 to 18 rigs.

The company's business is oil, natural gas and natural gas liquids production in the Permian Basin, which covers much of West Texas and eastern New Mexico. In 2025 it completed the $3.1 billion Double Eagle Acquisition in the Midland Basin and divested about $1.7 billion of non-core assets, including its 27.5% interest in EPIC Crude Holdings and Environmental Disposal Systems. Viper acquired Sitio Royalties in an all-equity transaction valued at about $4.0 billion. It also acquired the Endeavor Subsidiaries from Diamondback in a drop down, and in February 2026 sold its non-Permian assets for about $617 million. At year-end 2025, Viper owned mineral interests underlying about 36,004 net royalty acres in the Delaware Basin and 50,595 net royalty acres in the Midland Basin, and about 35% of these net royalty acres are operated by Diamondback.

Diamondback operates about 97% of its acreage with an average working interest of 79%. It develops contiguous acreage with a "manufacturing" approach that uses centralized production and fluid handling facilities. It holds licensed 3-D seismic data covering about 17,498 square miles. Reserve estimates are prepared by internal reservoir engineers and audited by the independent firm Ryder Scott, which covered 100% of proved reserves. At year-end 2025 Diamondback had $91 million of standalone cash and a $2.5 billion borrowing base, fully available, and it targets reducing net debt to $10.0 billion.