Diamondback Raises Dividend 7.3% on Strong Permian Results
The Midland-based producer lifted its quarterly base dividend to $1.18 per share after reporting third-quarter 2026 earnings and free cash flow.
Updated on Nov. 3, 2026 in Oil and Gas
Diamondback Energy raised its quarterly base dividend by 7.3% to $1.18 per share and increased its full-year 2026 oil production guidance to approximately 524,000 barrels per day. The moves followed third-quarter net income of $1.6 billion, or $5.69 per diluted share, on total revenue of $5.43 billion.
Why it matters
The increase reflects stronger earnings and cash generation from the company's Permian Basin operations, with the company returning capital to shareholders while continuing development. It also signals how Texas-based producers are allocating cash as oil prices remain elevated relative to operating costs.
Diamondback reported third-quarter 2026 free cash flow of $2.15 billion and average cash operating costs of $10.91 per boe, while repurchasing about 1.35 million shares for $251 million. Net debt excluding Viper Energy fell to approximately $10.42 billion at the end of September, but future oil price effects remain unaddressed in the filing.
The players
Diamondback Energy
Diamondback Energy is an independent oil and natural gas company focused on the Permian Basin, headquartered in Midland, Texas.
The details
Diamondback acquired a 7.5% equity interest in the Solitude Pipeline System, a natural gas line linking the Permian Basin with Katy, Texas. During the quarter the company drilled 105 gross wells, completed 135 gross wells, and averaged roughly 525,000 bpd of oil, and it expects full-year capital expenditures of $3.95 billion to $4 billion.
Timeline
Q2 2026: Prior quarter with realized oil prices of $96.82 per barrel.
Q3 2026: Quarter covered by the reported earnings, production, and cash flow results.
End of September 2026: Standalone net debt declined to approximately $10.42 billion.
Q4 2026: Company forecasts fourth-quarter capital spending of $1 billion to $1.05 billion.
Market Landscape
Diamondback's results are concentrated in the Midland Basin, one of the core areas of the Permian Basin that has driven much of U.S. shale oil growth. The company's combination of raised output guidance and a higher dividend reflects how major Permian producers are balancing growth with shareholder payouts.
Shareholders receive a higher quarterly base dividend of $1.18 per share, and the company's $582 million in quarterly capital returns signals ongoing buybacks and payouts. For Texas residents, Permian production growth and the new Solitude pipeline stake connect the company's expansion to regional energy infrastructure.
The takeaway
Producers with strong free cash flow are sharing more of it with shareholders while holding output growth steady. Watch fourth-quarter production against the guided range to gauge whether the company's Permian plans stay on track.
What happens next
Diamondback has guided fourth-quarter 2026 oil production to 518,000 to 528,000 bpd and capital spending to $1 billion to $1.05 billion, with results for that period to follow.
Further reading
For more on the sector, see Oil and Gas coverage across Texas.
