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Mar 31
Diamondback Q1 2025 Earnings Report
Diamondback reported strong Q1 performance with solid revenue growth, high free cash flow, and shareholder returns.
Key Takeaways
Diamondback Energy posted robust Q1 2025 financials with $4.05B in revenue and $1.4B in net income. The company generated $1.6B in adjusted free cash flow and returned $864M to shareholders. Operationally, it maintained high production levels while focusing on capital efficiency amid commodity price volatility.
Generated $1.6B in adjusted free cash flow, funding aggressive shareholder returns.
Achieved strong production levels averaging 850.7 MBOE/d.
Returned $864M to shareholders through buybacks and dividends.
Declared $1.00 per share cash dividend and repurchased ~3.7M shares in Q1.
Diamondback
Diamondback
Diamondback Revenue by Geographic Location
Forward Guidance
Diamondback revised its 2025 plan to focus on capital efficiency and flexibility in response to commodity price volatility.
Positive Outlook
- Maintains high production guidance of 480-495 MBO/d for 2025.
- Reduced full-year CAPEX to $3.4B–$3.8B to enhance free cash flow.
- Expecting improved oil production per CAPEX dollar (49.4 MBO/$MM).
- Guides Q2 oil production to increase to 485–500 MBO/d.
- Completed strategic acquisition and dropdown transactions to strengthen portfolio.
Challenges Ahead
- CAPEX guidance cut due to weaker commodity pricing.
- Slight decline in full-year production guidance from prior forecast.
- Higher expected interest expense vs. previous guidance.
- Cash tax rate increased to 19–22%, up from 17–20%.
- Potential for further capital reductions if prices weaken further.