Diamondback Energy (FANG) Q1 Results - May 6

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FIRST QUARTER 2025 AND RECENT HIGHLIGHTS

Average oil production of 475.9 MBO/d (850.7 MBOE/d) < Pre-announced.

Net cash provided by operating activities of $2.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.487 billion < Slightly above my forecast of $2.429 million.

Cash capital expenditures of $942 million

Free Cash Flow (as defined and reconciled below) of $1.5 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $1.6 billion

Declared Q1 2025 base cash dividend of $1.00 per share payable on May 22, 2025; implies a 2.9% annualized yield based on May 2, 2025 closing share price of $136.81

Repurchased 3,656,044 shares of common stock in Q1 2025 for $575 million excluding excise tax (at a weighted average price of $157.15 per share); repurchased 1,965,180 shares of common stock to date in Q2 2025 for $255 million excluding excise tax (at a weighted average price of $129.71 per share)

Total Q1 2025 return of capital of $864 million; represents ~55% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q1 2025 base dividend

As previously announced, closed acquisition of certain subsidiaries of Double Eagle IV Midco, LLC ("Double Eagle") on April 1st

Closed drop down transaction to Viper Energy, Inc. ("Viper"), a subsidiary of Diamondback, on May 1st


UPDATED 2025 GUIDANCE HIGHLIGHTS

As a result of recent commodity price volatility, Diamondback is reducing activity in order to prioritize free cash flow generation. The Company believes this revised plan enhances capital efficiency and provides flexibility to (i) cut additional capital if prices weaken further or (ii) resume its original 2025 plan if commodity prices strengthen.

Full year oil production of 480 - 495 MBO/d (857 - 900 MBOE/d)

Full year 2025 cash capital expenditures guidance of $3.4 - $3.8 billion

The Company expects to drill 385 - 435 gross (349 - 395 net) wells and complete between 475 - 550 gross (444 - 514 net) wells with an average lateral length of approximately 11,500 feet in 2025

Q2 2025 oil production guidance of 485 - 500 MBO/d (866 - 900 MBOE/d)

Q2 2025 cash capital expenditures guidance of $800 - $900 million

Implies full year 2025 oil production per million dollars of cash capital expenditures ("MBO per $MM of CAPEX") of 49.4, ~10% better than the Company's original full year 2025 guidance provided in February 2025