FANG US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Diamondback Energy (FANG) · Q3 2026 results and valuation
Share price: $180.98 · 2026-11-11
Diamondback Energy is an American company engaged in hydrocarbon exploration in the Permian Basin. It operates in the Midland, Texas region. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 2 Nov 2026 and 3 Aug 2026
Net income down 22.0% on the previous quarter. Management sounded cautious, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−22.0%
Net income vs Q2 2026
Net income 1.60B vs 2.06B
Revenue −2.4%
Against the same quarter last year (Q3 2025) it is +57.5%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out Nothing unusual flagged this period.
Valuation
Is Diamondback Energy undervalued?
Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.0% growth a year (3-year revenue growth), the model's fair value is $85.66 a share — the stock trades 111% above it. Today's price assumes 16.8% growth a year.
Current price
$180.98
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+16.8% for 10 yrs
Fair value / share
$85.66
Buy below
$64.24
Price vs fair value
Overvalued 111%
Price vs buy-below price
Overvalued 182%
Read between the lines
No major shifts flagged this period.
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“I do agree with you, M &A is tough in this type of volatility, especially the front month volatility.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 5.43B | 5.56B | −2.4% | 3.92B | +38.4% |
| Operating income | 2.50B | 2.51B | −0.5% | 1.24B | +102.3% |
| Net income | 1.60B | 2.06B | −22.0% | 1.02B | +57.5% |
| EPS | 5.69 | 6.65 | −14.4% | 3.51 | +62.1% |
| P/E today 24.1 | 24.7 | 33.5 | −8.8 | 10.0 | +14.7 |
Topics
Most discussed now
- No clear topics this period.
Faded since Q2 2026
- Dropped The reconciliations with the appropriate GAAP measures can be found in Diamondback Energy's earnings release issued yesterday afternoon.
- Fading Diamondback Energy can debate at what price those inventories need to be refilled, but I do think that helps it get...
- Fading Absent permanent demand destruction, which Diamondback Energy is hopeful is not the case, those inventories are going to have to be…
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
For the third quarter of 2026, the company reported average unhedged realized prices of $87.30 per barrel of oil, $1.12 per Mcf of natural gas, and $20.02 per barrel of NGLs.
- Material agreement; Director or officer change · SEC 8-K
Diamondback Energy, Inc. entered into a Stockholders Agreement amendment on September 29, 2026, and directors Darin Holderness and Lance Robertson resigned from the board on September 29 and 30, 2026.
- Results of operations · SEC 8-K
Diamondback Energy reported net cash from operating activities of $3.6 billion and free cash flow of $2.3 billion for the second quarter ended June 30, 2026.
- Results of operations · SEC 8-K
For the second quarter of 2026, the company reported average unhedged realized prices of $96.82 per barrel of oil, $(2.15) per Mcf of natural gas, and $18.56 per barrel of NGLs.
- Material agreement; New financial obligation · SEC 8-K
Diamondback Energy entered into an amendment extending the credit agreement maturity to June 12, 2031, and increasing total commitments from $2.5 billion to $3.0 billion.
- Director or officer change; Shareholder vote results · SEC 8-K
Effective May 20, 2026, Travis D. Stice stepped down as Executive Chairman and became non-executive Chairman of the Board of Directors.
- Results of operations · SEC 8-K
Diamondback Energy reported a Q1 2026 base cash dividend of $1.10 per share, which represents a 10% year-over-year increase.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-18.
Cash & runway
Cash & equivalents
$462.0M
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.7% YoY, -0.6% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 204.7M |
| Q1 2025 | 289.6M |
| Q2 2025 | 292.1M |
| Q3 2025 | 288.8M |
| Q1 2026 | 282.8M |
| Q2 2026 | 281.2M |
Shares outstanding: 280.0M (2026-07-31)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 83 filings; 50 filings parsed.
Sold by insiders
29.0M shares
$5.87B · 54 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
-
over the next 10-plus years
gas production outperforming expectations
Source quote
“I think that will continue over the next 10-plus years.”
-
as soon as the back half of 2027
delivering first gas through the use of behind-the-meter recip units
Source quote
“All of this should allow us to provide a shovel-ready development project, delivering first gas as soon as the back half of 2027 through the use of behind-the-meter recip units.”
-
as soon as 2028
working to secure grid connected power via Batch Zero
Source quote
“Beyond this initial phase of power generation, we are working to secure grid connected power as soon as 2028 via Batch Zero.”
-
as soon as their meeting on August 20
ERCOT's final determination regarding project eligibility for the next interconnection study
Source quote
“We believe we are well positioned within the Batch Zero queue and are awaiting ERCOT's final determination regarding project eligibility for the next interconnection study as soon as their meeting on August 20.”
-
back half of the year
casing prices going to come up
Source quote
“What we've seen -- what we're seeing in the future, casing prices in the back half of the year are going to come up.”