Company Reports

We've re-evaluated our Morningstar Uncertainty Rating for Diamondback as the dispersion of potential outcomes in our forecast narrows.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by more than 200 times and its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor ($26 billion, effectively doubling Diamondback’s size), and Double Eagle ($4 billion).

Diamondback grew its second-quarter total daily production to 1,018 thousand barrels of oil equivalent per day, an impressive sequential growth of 4% and 11% year on year. Even with the production increase, cash operating unit costs dropped by nearly 3% to $10.96. The stock declined 3% on the news.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by more than 200 times and its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor ($26 billion, effectively doubling Diamondback’s size), and Double Eagle ($4 billion).

We have published an outlook on 2035 North American natural gas demand, which we see growing to 169 billion cubic feet per day (Bcf/d).

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by more than 200 times and its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor ($26 billion, effectively doubling Diamondback’s size), and Double Eagle ($4 billion).

Diamondback's oil production of 521 mb/d easily exceeded our expectations this quarter. Importantly, higher production came in relatively in line with capex guidance, while cash unit costs (per boe) of $11.26 came in a bit lower. Diamondback returned roughly 50% of its adjusted free cash flow.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by more than 200 times and its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor ($26 billion, effectively doubling Diamondback’s size), and Double Eagle ($4 billion).

The United Arab Emirates announced it will leave The Organization of the Petroleum Exporting Countries after six decades of membership effective May 1.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by over 200 times, while exponentially increasing its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor (at $26 billion effectively doubled Diamondback’s size), and Double Eagle ($4 billion).

Over the March 14-15 weekend, the US conducted large-scale strikes on Kharg Island, according to NBC News. The island houses Iran's critical crude export terminal, which ships over 90% of Iran's crude exports. We understand that the strikes focused on military targets and avoided oil infrastructure.

On March 10, a CNN source report said Iran has begun laying mines in the Strait of Hormuz. The strait is the world's most important maritime route, as about 20% of global crude volumes pass through it. While not extensive, nearly 15 million barrels per day of crude production are stranded there now.

The US has agreed to provide insurance backstops and naval escorts for commercial vessels transiting the Strait of Hormuz amid Iran's sustained attacks on ships in response to US-Israeli strikes launched over the weekend. In response, Brent prices declined a bit to the upper-70s.

On Feb. 28, the US and Israel launched strikes on Iran with the goal of regime change. Brent benchmark oil prices had risen over 7% by March 2 morning trading.

Diamondback had a solid fourth quarter, net-net, broadly in line with our expectations. Total daily production of 969.1 mboe/d exceeded our expectations, though oil mix and capital expenditures were in line, while pretax cash unit costs of $7.99 per barrel came in slightly above our forecast.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by over 200 times, while exponentially increasing its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor (at $26 billion effectively doubled Diamondback’s size), and Double Eagle ($4 billion).

The US has assembled a massive force of jet fighters and aircraft support to the Middle East. Negotiations over Iran's enrichment of uranium haven't yielded a resolution between the two nations. President Donald Trump indicated he will decide in 10 days whether to begin kinetic strikes against Iran.

Major crude oil benchmarks rose slightly on Dec. 17 on news of a US blockade in Venezuela. The US has ramped up pressure following the seizure of an oil tanker a week prior. Both West Texas Intermediate and Brent each fell 5% during the week to lows of $55 per barrel and $59/bbl, respectively.

We're transferring coverage of Diamondback Energy, a leading independent shale producer.

Diamondback’s strategy is simple: It acquires and exploits assets in the low-cost Permian Basin, where it’s successfully built an enviable track record. Diamondback began operations in late 2007 following its acquisition of over 4,000 net acres in the Permian producing 800 net barrels of oil equivalent per day. As of 2025, the firm has multiplied its net acreage by over 200 times, while exponentially increasing its total daily production by well over 1,000 times. It’s done so through acquisitions, including Energen ($9 billion), QEP ($3 billion), Endeavor (at $26 billion effectively doubled Diamondback’s size), and Double Eagle ($4 billion).