Diamondback Energy Raises Quarterly Dividend 5% to $1.05, Increases Annual Payout
Diamondback Energy, an independent oil and gas company operating in the Permian Basin, declared a quarterly cash dividend of $1.05 per share for Q4 2025, marking a 5% increase from the previous $1.00. The dividend is payable March 12 to shareholders of record as of March 5.
Diamondback Energy, Inc. (NASDAQ: FANG), an independent oil and gas company operating in the Permian Basin, declared a quarterly cash dividend of $1.05 per share for the fourth quarter of 2025. The payment represents a 5% increase from the prior quarterly dividend of $1.00 per share and brings the company's annual base dividend to $4.20 per share. Read more dividend announcements.
The dividend will be paid on March 12, 2026, to stockholders of record at the close of business on March 5, 2026. Based on the company's February 20, 2026 closing share price of $176.01, the annual dividend implies a yield of 2.4%.
| Dividend Details | Information |
|---|---|
| Amount per Share | $1.05 |
| Record Date | March 5, 2026 |
| Payment Date | March 12, 2026 |
| Previous Amount | $1.00 |
| Increase | 5% |
| Annual Rate | $4.20 |
Fourth Quarter Financial Performance
Diamondback reported average oil production of 512,800 barrels per day during the fourth quarter of 2025, with total production reaching 969,100 barrels of oil equivalent per day. Net cash provided by operating activities totaled $2.3 billion, while operating cash flow before working capital changes reached $1.9 billion.
The company generated free cash flow of $1.0 billion and adjusted free cash flow of $1.2 billion during the quarter. Cash capital expenditures totaled $943 million, including $748 million for operated drilling and completion activities.
Capital Allocation and Shareholder Returns
Total return of capital to shareholders reached $734 million in the fourth quarter, representing 62% of adjusted free cash flow. This included the declared Q4 base dividend and share repurchases of 2.90 million shares for approximately $434 million at a weighted average price of $149.50 per share, excluding excise tax.
During the full year 2025, Diamondback repurchased 13.84 million shares for $2.0 billion at a weighted average price of $145.26 per share. Total return of capital for the year reached $3.2 billion, representing 54% of adjusted free cash flow.
The company maintains a share repurchase authorization totaling $8.0 billion, with $2.3 billion remaining as of February 20, 2026. All repurchased shares are retired.
Debt Reduction
Diamondback reduced its debt position during the quarter, repurchasing $203 million in senior notes due 2051 and 2052 at 82.3% of par value, approximately $167 million. The company also redeemed $950 million of principal on its $1.5 billion term loan due 2027, leaving $550 million outstanding.
As of December 31, 2025, consolidated total debt stood at $14.7 billion and net debt at $14.6 billion, down 11% and 8% quarter over quarter, respectively. The company reported standalone cash of $91 million and total standalone liquidity of $2.6 billion, including $2.5 billion of remaining availability under its credit facility.
Full Year 2025 Results
For the full year 2025, Diamondback averaged oil production of 497,200 barrels per day with total production of 921,000 barrels of oil equivalent per day. Net cash provided by operating activities reached $8.8 billion, while operating cash flow before working capital changes totaled $9.1 billion.
The company reported free cash flow of $5.5 billion and adjusted free cash flow of $5.9 billion for the year. Cash capital expenditures totaled $3.5 billion, with $2.95 billion allocated to operated drilling and completion activities.