Diamondback Energy, Inc.

Diamondback Energy, Inc. provided a focused financial update for the third quarter of 2025, primarily detailing its derivative activity and realized commodity prices. The company reported average unhedged realized prices of $64.60 per barrel for oil, $0.75 per Mcf for natural gas, and $17.28 per barrel for NGLs. Through its hedging strategy, average realized hedged prices were $63.70 per barrel for oil and $1.75 per Mcf for natural gas, with NGLs remaining at $17.28 per barrel, demonstrating the impact of its commodity derivative transactions.

Financially, Diamondback anticipates a significant net gain of $60 million on cash settlements for derivative instruments and an additional $60 million net non-cash gain on derivative instruments for the quarter, culminating in a total net gain of $120 million from derivative activities. This includes a $72 million net cash received from commodity contract settlements. Notably, the company incurred a $15 million realized loss on the early termination of a portion of its interest rate swaps, which it plans to exclude from its third-quarter return of capital calculation, signaling a strategic adjustment to its financial structure. Weighted average basic and diluted shares outstanding for the quarter were 288,826 thousand.

Management commentary, though not explicitly detailed in this specific transcript section, is implicitly positive regarding the effectiveness of their hedging strategies, as evidenced by the substantial gains from derivatives. The mention of recently completed strategic transactions like the Endeavor merger and Double Eagle acquisition in the forward-looking statements section suggests ongoing portfolio optimization and growth initiatives. Competitive positioning is reinforced by these strategic moves, aiming to enhance scale and efficiency. Risk factors highlighted include volatility in commodity prices, geopolitical developments (including conflicts in the Middle East), instability in financial markets, inflationary pressures, higher interest rates, and regulatory changes related to hydraulic fracturing and climate change. The transcript did not include an analyst Q&A section.