Diamondback Energy Posts Higher Quarterly Revenue but Softer Operating Income, Net Income and Diluted EPS

Bottom line

Across the headline three-month reporting period, Diamondback Energy, Inc. (ticker FANG) delivered higher top-line Revenues than the prior-year quarter, while each of the three profitability measures tracked — Operating Income (Loss), Net Income (Loss) Attributable to Parent, and Earnings Per Share, Diluted — printed lower than the same quarter a year earlier. The direction of each comparison is sourced directly from the reported year-over-year ledger applied to this filing, not from any narrative inference on the page.

- Operating Income (Loss) for the three-month reporting period stood at $116,000,000 USD, compared with $1,673,000,000 USD for the prior-year quarter; both are profits, with the current quarter lower than the prior. - Net Income (Loss) Attributable to Parent reached $25,000,000 USD for the three-month reporting period, against $1,405,000,000 USD for the prior-year quarter; the current quarter is a profit and the prior is a profit, with the current quarter lower than the prior. - Earnings Per Share, Diluted landed at $0.08 per diluted share USD/SHARES for the three-month reporting period, versus $4.83 per diluted share USD/SHARES for the prior-year quarter; both are profits per share, with the current quarter lower than the prior. - Revenues reached $4,240,000,000 USD for the three-month reporting period, against $4,048,000,000 USD for the prior-year quarter; both are positive, with the current quarter higher than the prior.

The filing evidence does not attribute the divergence between higher revenue and lower profitability to any single cause. The filing evidence does not attribute this change to any single cause.

The reporting context is a Quarterly Report on Form 10-Q filed by Diamondback Energy, Inc. for the three-month period the three months ended March 31, 2026, with the comparative quarter being the three months ended March 31, 2025. The filing identifier on record is 0001539838-26-000077, filed under CIK 0001539838, covering the fiscal period period-ended-2026-03-31. The scope of this analysis is limited to those headline income-statement and per-share values shown above; balance-sheet, cash-flow, segment, and six-month figures are addressed in later sections.

Source scope is the quarterly report itself, including the unaudited condensed consolidated financial statements in Part I, the notes referenced as Note 1 (basis of presentation) and Note 2 (summary of significant accounting policies), and the other referenced notes and items in the filing where additional context is set out. Industry terminology used by the company is defined in the glossary that precedes the financial statements in this report. No external peer benchmarks, third-party consensus, or post-period events are part of the filing evidence for this section. The filing evidence contains no peer or industry comparison.

Readers comparing this read to other interim filings can place it alongside Diamondback Energy Quarterly Report Shows Higher Quarter Profit and Revenue but Softer Six-Month Bottom Line and ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing, both of which use the same quarterly-result framing against a prior-year quarter. Counter-evidence in the form of management explanation for the specific revenue-up, profit-down split is not provided in the portion of the filing included in this section, and unknowns beyond the items catalogued above are left to subsequent sections.

Financial performance

- YOY: For the three months covered by 10-Q for period-ended-2026-03-31 filed under accession 0001539838-26-000077, Diamondback Energy, Inc. (ticker FANG, CIK 0001539838) reports a year-over-year pattern in which the top line moved higher while the profitability lines moved lower. Revenues increased compared with the three months ended March 31, 2025, with the current-quarter figure reported at $4,240,000,000 USD versus the prior-year comparative of $4,048,000,000 USD.

Operating Income (Loss), by contrast, decreased relative to the prior-year quarter, with the current-period amount of $116,000,000 USD compared against the prior-year amount of $1,673,000,000 USD. Net Income (Loss) Attributable to Parent likewise decreased, with the current-quarter result of $25,000,000 USD set against the prior-year result of $1,405,000,000 USD. 83 per diluted share USD/SHARES in the three months ended March 31, 2025.

The pattern is profit to profit on the bottom-line measures and positive to positive on revenues; only the directional signs differ. The filing evidence does not attribute this change to any single cause. - QOQ: The filing evidence for this section is limited to the three-month view of the current quarter against the prior-year quarter.

A sequential quarter-on-quarter comparison against an immediately preceding three-month period is not supported by the catalog of facts assigned to this section, and the filing language supplied here does not present a prior-quarter balance either. Readers looking for a sequential bridge should treat that comparison as outside what this section is authorized to assert, and the underlying revenue, operating-income, net-income, and per-share figures for any such prior quarter are not in evidence here. - GUIDANCE: The filing excerpt reproduced for this section does not contain a quantitative forward guidance table.

The cautionary statement regarding forward-looking statements appears in the front matter, but no specific revenue, production, capital-expenditure, or per-share outlook number is attached to this section's evidence. Management's own forward-looking framing therefore stands as context only; any specific expectation that the company will hit a particular revenue, margin, or earnings level in a coming quarter is not stated in the evidence available to this section. - EXPECTATIONS: The directional contrast — higher revenue paired with lower operating income, lower net income, and lower diluted earnings per share — is the headline read across the three months ended March 31, 2026 versus the three months ended March 31, 2025.

Because the catalog does not pair this with a peer set, an external consensus estimate, or an internal guidance figure, The filing evidence contains no peer or industry comparison.. The accounting context rests on the policies summarized in Note 1 and Note 2, which frame how the reported figures are prepared, and on the acquisition and divestiture activity described in Note 4, which sits behind the period-over-period comparability of the income statement. Note 15 governs the equity side, including any per-share computation, while the legal-proceedings, risk-factor, and market-risk sections under Item 1, Item 1A, Item 2, Item 3, and Item 4 provide surrounding context but do not alter the headline financial read for this section, and Item 5 and Item 6 close out the filing with exhibits and signatures.

For readers triangulating this print against other recent energy interim filings, Diamondback Energy Quarterly Report Shows Higher Quarter Profit and Revenue but Softer Six-Month Bottom Line sits adjacent in the recent filing stream.

Operating drivers and segments

- Diamondback Energy, Inc. operates as a single reportable segment under the management framework described in its interim filing. The upstream segment covers the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves, with a primary geographic footprint in the Permian Basin in West Texas. The same segment also captures Viper's activities and the Company's remaining midstream operations, so segment revenue and cost lines are not split into separate exploration, production, or midstream buckets in the interim report. Because the filing consolidates VNOM Sub, Inc. (formerly Viper Energy, Inc.) and the upstream production activities into one segment, no stand-alone margin disclosure exists for either the upstream operations or Viper within this filing. Item 1 Note 1 Note 2 - The consolidated three-month revenue line prints at $4,240,000,000 USD for the three months ended March 31, 2026, versus $4,048,000,000 USD for the three months ended March 31, 2025, and the consolidated three-month operating income line prints at $116,000,000 USD for the three months ended March 31, 2026 against $1,673,000,000 USD for the three months ended March 31, 2025. Because the upstream segment and the related midstream and Viper activities are bundled together, those reported revenue and operating-income totals reflect the combined entity and cannot be decomposed into a clean upstream-only margin in this filing.

- Management's forward-looking statement legend is reproduced from the filing, listing terms such as "aim," "anticipate," "believe," "could," "estimate," "expect," "forecast," "guidance," "intend," "may," "outlook," "plan," "project," "target," and similar expressions as the trigger language for forward-looking commentary throughout the report. The filing itself does not provide a narrative paragraph in this section that ties the reported operating income movement to identifiable operational drivers (production volumes, realized prices, hedge settlements, or unit costs), so any operating-driver explanation from management beyond the legend is absent here. Item 1A Item 2 Note 15 - Within the year-over-year comparison the filing's authorized direction for the three-month revenue line is an increase against the prior-year quarter, and the authorized direction for the three-month operating income line is a decrease against the prior-year quarter, with both lines remaining in profit territory, so the segment-level pattern across the interim period is higher top-line revenue paired with a lower operating-income result versus the prior-year comparative quarter. The filing evidence does not attribute this change to any single cause. - An independent check against the interim filing's other reported line items shows the same pattern: net income attributable to parent and diluted earnings per share both register an authorized decrease against the prior-year quarter while staying in profit territory, financing-activities cash flow registers an authorized decrease that flips the line from a positive to a negative reading, investing-activities cash flow shows an authorized increase while remaining negative, operating-activities cash flow shows an authorized decrease while staying positive, and ordinary common-stock dividend payments show an authorized increase against the prior-year quarter. The interim filing ties all of those movements to the same upstream segment, but the filing itself does not attribute any of the period-over-period changes to a single identifiable cause, and the filing evidence contains no peer or industry comparison that would let a reader benchmark the upstream segment's combined revenue and operating-income print against external operators or basin benchmarks. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison. - Readers looking for a parallel interim-filing pattern in another upstream-adjacent name can cross-check with the Diamondback Energy Quarterly Report Shows Higher Quarter Profit and Revenue but Softer Six-Month Bottom Line insight, which frames the same three-month revenue direction against a weaker six-month bottom line.

Cash flow and capital

- Operating cash generation softened year over year, with Net Cash Provided by (Used in) Operating Activities of $1,828,000,000 USD for the three months ended March 31, 2026 compared with the higher $2,355,000,000 USD recorded in the three months ended March 31, 2025, a profit-to-profit step-down inside the operating line. - Investing activity remained a use of cash in both quarters, with Net Cash Provided by (Used in) Investing Activities of -$658,000,000 USD for the three months ended March 31, 2026 versus -$1,653,000,000 USD for the three months ended March 31, 2025; the cash drain narrowed, indicating a smaller net outflow even though both periods remained in negative territory.

- Financing activity swung from a source of cash to a use of cash, with Net Cash Provided by (Used in) Financing Activities of -$1,100,000,000 USD (a negative result) for the three months ended March 31, 2026 against the positive $1,175,000,000 USD reported in the three months ended March 31, 2025, in a profit-to-loss transition that mirrors typical debt-repayment or shareholder-return periods. - Ordinary common-stock dividends paid rose to $295,000,000 USD for the three months ended March 31, 2026 from $290,000,000 USD for the three months ended March 31, 2025, a positive-to-positive increase consistent with a higher quarterly capital return to shareholders in the more recent period.

- The combined cash-flow pattern — lower operating inflows, a smaller investing outflow, and a financing line turned negative alongside rising dividends — is consistent with capital being returned to shareholders and debt being addressed in the three months ended March 31, 2026 rather than being drawn down. The filing evidence does not attribute this change to any single cause. - On the balance sheet at the balance sheet date of March 31, 2026, Cash and Cash Equivalents stood at $174,000,000 USD, while Long-term Debt, Excluding Current Maturities was $13,149,000,000 USD, providing the liquidity and leverage backdrop against which the year's capital allocation choices were made.

- Accounts Receivable, after Allowance for Credit Loss, Current was $1,834,000,000 USD at the balance sheet date of March 31, 2026, a working-capital position relevant to the cash conversion discussion above. The filing evidence does not attribute this change to any single cause. 's own history rather than against external benchmarks.

The filing evidence contains no peer or industry comparison. - Disclosure cross-references for the period appear in Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, and Item 6; the basis-of-presentation context is set out in Note 1, while accounting policy detail sits in Note 2, acquisitions and divestitures in Note 4, and stockholders' equity in Note 15 of the cited filing. 's quarter with peers such as ONEOK, whose interim filing is reviewed in ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing, can use this section as a same-industry cash-return anchor rather than as a fully comparable capital-structure dataset.

Peer and historical context

A side-by-side read of Diamondback Energy, Inc.'s three-month results against the prior-year quarter, drawn from period-ended-2026-03-31 under 10-Q (accession 0001539838-26-000077, CIK 0001539838, ticker FANG), shows a mixed pattern. The top line moved higher: Revenues of $4,240,000,000 USD for the three months ended March 31, 2026 sits above the $4,048,000,000 USD recorded for the three months ended March 31, 2025, the only year-over-year direction the catalog authorizes as an increase. Operating Income (Loss), however, moved the other way, landing at $116,000,000 USD versus $1,673,000,000 USD a year earlier, a decrease between two profit readings. The bottom line tracks the same shape, with Net Income (Loss) Attributable to Parent of $25,000,000 USD against $1,405,000,000 USD in the prior quarter, both profits and both softening. Net Cash Provided by (Used in) Operating Activities of $1,828,000,000 USD compared with $2,355,000,000 USD a year earlier also steps down between two positive readings. Read together, the filing's own three-month track record is one of higher revenue paired with lower profitability and lower cash generation, while outside company-by-company benchmarks sit outside the filing evidence. For readers weighing the result against similarly framed interim filings, a useful reference point is the peer-period summary at CMS Energy Reports Softer Bottom Line Against Higher Contract Revenue in the reporting period 10-Q Filing, which highlights a comparable split between a softer bottom line and a stronger top-line number. Any claim that this softer profitability profile is unique to Diamondback Energy, Inc. runs into the same wall: the filing does not benchmark the period against named Permian or E&P peers, and the source narrative tied to Item 1A only flags the usual commodity-price, regulatory, capital-markets and integration risks without naming a competitor's numbers. The forward-looking commentary also notes significant declines in prices for oil, natural gas, or natural gas liquids and the need for possible impairment charges, which can cut across the peer set rather than isolate Diamondback Energy, Inc.. The prior-year quarter's stronger profit readings, set against the current quarter's softer ones, could reflect commodity swings or acquisition effects tied to the Double Eagle Acquisition and Sitio Acquisition referenced in Note 4, but the filing does not separate those effects in the filing evidence. The filing evidence contains no peer or industry comparison.. The filing evidence does not attribute this change to any single cause..

On the historical axis, the three-month series itself is the only internal benchmark available: revenue is higher than a year ago, while operating income, net income and operating cash flow are all lower than a year ago, and the year-over-year shift leaves each item on the same side of zero it occupied before. That single-quarter reversal is not, on its own, enough to characterize a trend, and the filing supplies no multi-quarter history beyond what is captured in the comparative columns of the three months ended March 31, 2026. As a cross-check for how peers are framing similar top-line versus bottom-line gaps, the interim write-up at ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing illustrates a different shape, with operating income and net income both advancing alongside revenue.

Scenario analysis

- Diamondback Energy, Inc., identified in this 10-Q filing for period-ended-2026-03-31 under accession 0001539838-26-000077, continues to operate as a single upstream segment focused on the Permian Basin, with Viper Energy, Inc. consolidated as a variable interest entity under the guidance discussed in the cited note. The base case assumes that oil and natural gas realized prices, production volumes, and operating cost trends remain close to the levels implied by the quarterly results reported here, without sharp deviations in either direction.

- Revenues for the three-month reporting period the three months ended March 31, 2026 totaled $4,240,000,000 USD, higher than the prior-year comparative revenue of $4,048,000,000 USD for the three months ended March 31, 2025, consistent with the authorized direction for top-line growth. Net Income (Loss) Attributable to Parent came in at $25,000,000 USD for the quarter, compared with $1,405,000,000 USD in the prior-year period, marking a decline from a profit to a smaller profit. Within the base case, ordinary dividends on common stock remain an authorized direction of increase compared with the prior year, while operating cash inflows decline and investing outflows widen, and financing flows shift from an inflow to an outflow.

- The filing's risk-factor and use-of-estimates discussion, reflected in the cited note on significant accounting policies, flags continued volatility in oil and natural gas prices, geopolitical conflict, OPEC and non-OPEC actions, tariffs, interest-rate paths, and supply-chain disruption as drivers that elevate estimation uncertainty. The base case assumes no further shock beyond what is already embedded in the reported figures.

- Realized commodity prices rise above the base path and production volumes hold or grow, lifting revenues and operating income further. Capital discipline continues, so dividend cash outflows expand modestly while investing outflows are kept within cash-flow capacity. The filing evidence does not attribute this change to any single cause.

- Net Income (Loss) Attributable to Parent moves toward the higher end of the range implied by the quarter's reported $25,000,000 USD, narrowing the gap to the prior-year $1,405,000,000 USD result rather than widening it. The comparison sits within a peer set where, for example, ONEOK Posts Higher Revenue, Operating Income, Net Income and Diluted EPS Year-Over-Year in Interim Filing illustrates a similar pattern of higher revenue alongside softer bottom-line dynamics.

- Realized prices weaken, the authorized direction of revenue growth for the three months ended March 31, 2026 versus the three months ended March 31, 2025 reverses, and the year-over-year decline in Net Income (Loss) Attributable to Parent deepens below the $25,000,000 USD level relative to the prior-year $1,405,000,000 USD baseline.

- Operating cash inflows contract further along the authorized decline, and the already-negative financing and investing flows widen as the Company leans on external funding. Management's own use-of-estimates language, summarized in the cited note on significant accounting policies, indicates that such volatility in oil and natural gas pricing has historically translated into material impacts on industry financial results, supporting this downside as a credible rather than remote outcome. The filing evidence does not attribute this change to any single cause.

Risks and what to watch

- Reported facts: For the three months ended March 31, 2026, Diamondback Energy, Inc. reported Revenues of $4,240,000,000 USD and Net Income (Loss) Attributable to Parent of $25,000,000 USD, each on the face of the unaudited condensed consolidated statements filed with 10-Q for period-ended-2026-03-31 under accession 0001539838-26-000077. The prior-year comparatives on the same statements were Revenues of $4,048,000,000 USD and Net Income (Loss) Attributable to Parent of $1,405,000,000 USD for the three months ended March 31, 2025.

- Management explanations: The cited note on use of estimates, presented within Note 1 and expanded in Note 2, calls out that preparing the interim figures requires management to estimate values or conditions that cannot be known with certainty, and that the oil and natural gas industry is currently subject to volatility from geopolitical conflicts, elevated interest rates, tariff effects, OPEC and non-OPEC actions, global supply chain disruption, inflation-fighting measures, and financial-sector instability. The same language frames these conditions as generally increasing uncertainty in accounting estimates, particularly those involving financial forecasts, and states that the results of companies in the industry have been and may continue to be impacted materially.

- Analyst inference: Revenues rose year over year, while Net Income (Loss) Attributable to Parent fell year over year on a profit-to-profit basis, so the quarter's top line and bottom line moved in opposite directions. The filing evidence does not attribute this change to any single cause. The split makes the next print's commodity-price sensitivity, lifting-cost trajectory, and hedging results the most informative pressure points to monitor before drawing a structural read.

- Counter-evidence: The same note on use of estimates also acknowledges that prior period amounts have been reclassified to conform to the current period presentation and that such reclassifications had an immaterial effect on previously reported totals, which tempers any pure-as-reported year-over-year read. In addition, the Item 1A risk-factor section is updated by reference to the prior Form (omitted), so material new disclosures between filings may not appear in this Form (omitted) itself. - Unknowns: The filing evidence does not disclose segment-level detail for this dimension.

The filing evidence contains no peer or industry comparison. The interim filing does not, on the face of the cited evidence, break out segment-level results for revenue or net income, and no peer or industry benchmark is provided inside the same document for direct comparison. - Items to watch in the next period: realized oil and gas prices versus the prior quarter, hedging gains or losses, unit lifting and severance-equivalent costs, any new disclosures added to Item 1A risk factors, updates under Item 3 on market risk, changes under Item 4 on legal proceedings, ordinary-dividend cash payments per the cited financing-activity disclosure, and the buyback or issuance activity disclosed under Item 2 and the equity note referenced as Note 15.

Acquisitions and divestitures discussed in Note 4 also remain a swing factor, while any new exhibits filed under Item 5 or Item 6 should be checked for incremental commitments.