Diamondback Energy raises 2025 production guidance amid asset sales

Diamondback Energy Inc. (NASDAQ: FANG) raised its 2025 oil production guidance to 495-498 thousand barrels per day, an increase of 8 thousand barrels per day at the midpoint, according to a letter to stockholders released Sunday. The company also increased its total production guidance by approximately 2% to 910-920 thousand barrels of oil equivalent per day.

The upward revisions reflect the completion of Viper Energy's acquisition of Sitio Royalties, which closed on August 19, 2025, and improvements in gas capture efficiency. Viper Energy is Diamondback's publicly traded mineral and royalty subsidiary.

The company reduced its 2025 capital expenditures by $500 million, or approximately 13%, compared to original guidance through activity moderation and efficiency gains. Fourth quarter capital expenditures are expected to range from $875 million to $975 million, up from $774 million in the third quarter.

Third quarter oil production averaged 504 thousand barrels per day, at the top of the company's revised guidance range. The company generated $2.4 billion in net cash from operating activities and $1.8 billion of free cash flow during the quarter.

Diamondback returned approximately $892 million to stockholders in the third quarter through dividends and share repurchases, representing about 50% of adjusted free cash flow. The company repurchased 4.3 million shares for $603 million at an average price of $140.70 per share, marking its largest quarterly buyback in company history.

The company completed two major asset sales in October. On October 1, it sold Environmental Disposal Systems to Deep Blue Midland Basin for $694 million in upfront cash while retaining a 30% equity interest. On October 31, it divested its 27.5% equity interest in EPIC Crude Holdings for $504 million.

These transactions, along with previous sales, exceeded Diamondback's $1.5 billion non-core asset sale target established following the Double Eagle acquisition announcement in February.

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