Diamondback Energy, Inc. (FANG)

Diamondback Energy is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional onshore oil and gas reserves in the Permian Basin of West Texas and New Mexico, operating primarily through horizontal development of the Spraberry and Wolfcamp formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin. The company reports in a single upstream segment and also holds a roughly 42% stake in its publicly traded subsidiary Viper Energy, which owns mineral and royalty interests primarily in the Permian Basin, including Permian assets acquired via the 2025 Sitio Royalties merger. As of December 31, 2025, Diamondback's total acreage position was approximately 1,097,846 gross (869,036 net) acres, with estimated proved reserves of 3,617,856 MBOE (49% oil, 24% natural gas, 27% NGLs), about 70% classified as proved developed producing, and an identified inventory of approximately 8,854 gross (6,541 net) potential horizontal drilling locations.

Significant 2025 corporate activity included the Double Eagle Acquisition (Midland Basin assets for approximately $3.1 billion in cash and equity), the divestiture of the Endeavor Subsidiaries into Viper (the "2025 Drop Down") for $873 million cash plus Viper equity, over $1.7 billion in non-core asset divestitures (including EPIC Crude and EDS water assets), and Viper's Sitio Acquisition (an all-equity transaction valued at approximately $4.0 billion) followed by Viper's subsequent divestiture of non-Permian assets for approximately $617 million in early 2026. The company's business strategy emphasizes capital discipline (2026 capex guidance of $3.60–$3.90 billion), low-cost development leveraging its contiguous, largely operated (approximately 97%) acreage position, a capital return program targeting at least 50% of Adjusted Free Cash Flow to shareholders via dividends and buybacks, pursuit of strategic acquisitions, and maintenance of financial flexibility, supported by a $2.5 billion fully available borrowing base and a net debt reduction target of $10.0 billion. The company holds working interests in 11,750 gross producing wells, operates 15 drilling rigs and four completion crews as of year-end 2025, and maintains approximately 17,498 square miles of licensed 3-D seismic data supporting its multi-year horizontal drilling inventory across geologically favorable, well-established formations including the Clearfork, Spraberry, Bone Spring, Wolfcamp, Strawn, Atoka, Barnett, and Woodford intervals.