Diamondback Energy Quarterly Report Shows Higher Quarter Profit and Revenue but Softer Six-Month Bottom Line

Bottom line

Diamondback Energy, Inc. (FANG) filed a Quarterly Report on Form 10-Q for the fiscal period period-ended-2026-06-30, tracked under CIK 0001539838 and accession 0001539838-26-000142. The reporting package presents both a three-month reporting period and a six-month year-to-date period, each accompanied by its prior-year comparative, so the reader is shown two parallel windows of activity.

For the three-month reporting period the three months ended June 30, 2026, the company reported revenues of $5,562,000,000 USD, operating income of $2,512,000,000 USD, net income attributable to parent of $1,882,000,000 USD, and diluted earnings per share of $6.65 per diluted share USD/SHARES. The matching prior-year window the three months ended June 30, 2025 shows revenues of $3,678,000,000 USD, operating income of $1,139,000,000 USD, net income attributable to parent of $699,000,000 USD, and diluted earnings per share of $2.38 per diluted share USD/SHARES. On this three-month view, the authorized direction for revenues is higher than the prior period, the authorized direction for operating income is higher than the prior period, the authorized direction for net income attributable to parent is higher than the prior period, and the authorized direction for diluted earnings per share is higher than the prior period. Each of these is a profit-to-profit transition against the prior-year figures.

For the six-month year-to-date period the six months ended June 30, 2026, the filing reports revenues of $9,802,000,000 USD, operating income of $2,628,000,000 USD, net income attributable to parent of $1,907,000,000 USD, and diluted earnings per share of $6.72 per diluted share USD/SHARES. The corresponding prior-year window the six months ended June 30, 2025 records revenues of $7,726,000,000 USD, operating income of $2,812,000,000 USD, net income attributable to parent of $2,104,000,000 USD, and diluted earnings per share of $7.2 per diluted share USD/SHARES. The authorized direction for revenues on this longer view is higher than the prior period, while the authorized directions for operating income, net income attributable to parent, and diluted earnings per share are each lower than the prior period. All four comparisons are again framed as profit-to-profit transitions.

Source scope is limited to the cited filing itself. The Quarterly Report on Form 10-Q introduces its own glossary of oil and natural gas terms and certain other terms, and references the basis-of-presentation and significant-accounting-policies notes as well as items covering controls and procedures, legal proceedings, risk factors, and exhibits. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison.

Financial performance

- Diamondback Energy, Inc. filed this interim report as 10-Q covering period-ended-2026-06-30, filed under accession 0001539838-26-000142 with CIK 0001539838 and ticker FANG for the company identified as Diamondback Energy, Inc.. The freeze window spans the three-month reporting period and the six-month year-to-date period together with their prior-year comparatives.

- Revenues for the three-month reporting period were $5,562,000,000 USD, against $3,678,000,000 USD in the prior-year comparative. The authorized comparison is an increase, with current and prior both positive, so top-line performance on the quarter window is higher than the prior period on a like-for-like basis. - Revenues for the six-month year-to-date period were $9,802,000,000 USD, against $7,726,000,000 USD in the six months ended June 30, 2025.

The authorized comparison is also an increase between positive periods, indicating that the half-year revenue line moved in the same direction as the quarter. - Operating income for the three-month reporting period was $2,512,000,000 USD, versus $1,139,000,000 USD. The authorized comparison is an increase between two profitable periods, so the operating result on the quarter window is characterized as profit-to-profit growth.

- Operating income for the six-month year-to-date period was $2,628,000,000 USD, against $2,812,000,000 USD. The authorized comparison is a decrease between two profitable periods, so the half-year operating line shows profit-to-profit softening versus the prior year. - Net income attributable to parent for the three-month reporting period was $1,882,000,000 USD, against $699,000,000 USD.

The authorized comparison is an increase between two profitable periods, consistent with the quarter operating result. - Net income attributable to parent for the six-month year-to-date period was $1,907,000,000 USD, against $2,104,000,000 USD. The authorized comparison is a decrease between two profitable periods, again aligning with the half-year operating reading.

38 per diluted share USD/SHARES. The authorized comparison is an increase with profit in both periods, mirroring the quarter net-income movement. 2 per diluted share USD/SHARES.

The authorized comparison is a decrease with profit in both periods, consistent with the half-year net-income reading. - The quarter window shows higher revenue, higher operating income, higher net income, and higher diluted EPS than the prior year, while the half-year window shows higher revenue but lower operating income, lower net income, and lower diluted EPS. The quarter picture is more constructive than the year-to-date picture.

- The filing evidence does not attribute this change to any single cause. - For accounting context, the financial statements are prepared under the basis described in Note 1 (Description of the Business and Basis of Presentation) and the accounting policies summarized in Note 2 (Summary of Significant Accounting Policies). The acquisition-related disclosures referenced in Note 4 (Acquisitions and Divestitures) and the common stock disclosures in Note 15 (Stockholders' Equity) frame the consolidation perimeter used to produce the figures cited above.

- Guidance and outlook language was not separately quantified in the cited sections; readers should look to the cautionary statements and management discussion for any forward direction rather than the income statement itself. The filing evidence contains no peer or industry comparison.

Operating drivers and segments

- Diamondback Energy, Inc. reports a single operating and reportable segment — the upstream segment — engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas, and the segment includes the activities of Viper as well as the Company's remaining midstream operations. Because the business is presented as one segment, there is no segment-by-segment revenue or margin split to analyze; only consolidated segment-level results are visible. - Consolidated Revenues were $5,562,000,000 USD for the three-month reporting period the three months ended June 30, 2026, against $3,678,000,000 USD for the prior-year comparative the three months ended June 30, 2025, which the reported comparison describes as higher than the prior period. - Consolidated Revenues for the six-month year-to-date period the six months ended June 30, 2026 were $9,802,000,000 USD, against $7,726,000,000 USD for the six months ended June 30, 2025, again authorized as higher than the prior period. - Operating Income (Loss) was $2,512,000,000 USD for the three months ended June 30, 2026 versus $1,139,000,000 USD for the three months ended June 30, 2025, which the authorized direction records as higher than the prior period; the period remained profitable on a quarter basis and the prior-year quarter was also profitable. - For the year-to-date window, Operating Income (Loss) was $2,628,000,000 USD for the six months ended June 30, 2026 against $2,812,000,000 USD for the six months ended June 30, 2025, which the authorized comparison records as lower than the prior period; both windows remained profitable. - The combined pattern is a single-segment upstream business in which the quarter shows both top-line growth and an operating-income step-up, while the year-to-date window shows revenue higher but operating income lower than the prior year — a divergence between the two windows that independent readers can verify alongside other interim filings such as Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing. - Operating margins cannot be derived from this catalog because percentage calculations are machine-owned; the section reports only the direction of the revenue and operating-income moves, not their spread.

- The filing presents the business through the upstream-only lens and frames forward-looking language with the standard "aim, anticipate, believe, continue, could, estimate, expect, forecast, future, guidance, intend, may, model, outlook, plan, positioned, potential, predict, project, seek, should, target, will, would" qualifier list, without offering a per-cause bridge between the higher revenues and the divergent operating-income trajectory on the two windows. - The cited note covering acquisitions and divestitures (Note 4) and the summary of significant accounting policies (Note 2) sit alongside the basis-of-presentation note (Note 1) in the filing, but the filing evidence does not extract any line of management commentary that ties the revenue and operating-income moves to a specific driver for this period. - The filing evidence does not attribute this change to any single cause. - No peer or industry comparison is offered inside the filing evidence; independent benchmarking against other Permian operators is therefore not available from this filing alone. The filing evidence contains no peer or industry comparison.

Cash flow and capital

Reported facts: - Operating activities provided a positive cash inflow for the six-month year-to-date period of the six months ended June 30, 2026 and a comparable positive inflow for the prior-year window of the six months ended June 30, 2025; the authorized year-over-year direction is an increase, so the current operating-cash-flow figure is higher than the prior-year figure. - Investing activities used cash in both periods, with the current six-month outflow of the six months ended June 30, 2026 higher (less negative) than the prior-year outflow of the six months ended June 30, 2025, consistent with the authorized increase direction. - Financing activities swung from a positive inflow in the six months ended June 30, 2025 to a negative outflow (i.e., a use of cash) in the six months ended June 30, 2026, matching the authorized decrease direction for that line. - Ordinary common-stock dividend payments were made in both windows and were higher in the six months ended June 30, 2026 than in the six months ended June 30, 2025, matching the authorized increase direction. - The balance sheet at the balance sheet date of June 30, 2026 shows Cash and Cash Equivalents of $462,000,000, Accounts Receivable (after the allowance for credit loss) of $1,669,000,000, and Long-term Debt excluding current maturities of $11,066,000,000.

Management explanations: - The filing's cautionary statement frames forward-looking items — capital plans, drilling plans, cash flow from operations, and the strategic effects of the Double Eagle and Sitio acquisitions — but does not assign a specific driver to the half-year cash-flow movements or balance-sheet shifts.

Analyst inference: - Reading the three cash-flow categories together, the year-to-date operating engine remained a source of cash while investing activity continued to absorb cash and financing activity moved to a net outflow; the dividend line stepped higher year over year. The filing evidence does not attribute this change to any single cause. - The combination of a higher investing outflow than the prior-year figure together with a financing outflow in the current window is consistent with continued capital spending being funded partly by operating cash and partly by external net outflows, but the filing does not quantify the split, so no further inference is supported.

Counter-evidence: - No counter-evidence is presented in the source narrative; the filing's explanatory text addresses forward-looking strategy and risk factors rather than the realized half-year cash-flow composition.

Unknowns: - The machine-readable catalog for this section does not list a working-capital-change line, a capital-expenditure subtotal, or a free-cash-flow reconciling item, so the contribution of working-capital movements to operating cash flow cannot be read directly from this section's evidence.

For readers comparing interim windows, the Capstone Energy Plus Swings to Profit on Lower Revenue in Interim Filing companion piece illustrates how a different energy issuer handled a similar profit-versus-cash narrative, and a worked example of payback timing appears in How to Calculate a Discounted Payback Period.

Peer and historical context

For this filing of Diamondback Energy, Inc. on 10-Q for period-ended-2026-06-30 (accession 0001539838-26-000142), peer benchmarking against other oil and gas producers cannot be supported from the filing evidence. The filing text quoted within this section speaks to Diamondback's own forward-looking risk factors and to internal transactions such as the Double Eagle Acquisition and Viper's Sitio Acquisition, with operational context addressed under Item 1A and accounting treatment noted under Note 1 and Note 2. No named competitor, peer multiple, or industry index is supplied, so any cross-issuer ranking of margins, returns, or production efficiency would be invented rather than grounded. The historical, period-over-period view is what the filing evidence can carry, and only through the authorized direction list below.

On that historical view, Revenues for the six-month year-to-date period the six months ended June 30, 2026 were higher than the prior-year comparative the six months ended June 30, 2025, with both periods showing positive results. The three-month view mirrors that pattern, with Revenues for the three months ended June 30, 2026 higher than the three months ended June 30, 2025 and both positive. The year-to-date Operating Income (Loss) for the six months ended June 30, 2026 was lower than the prior-year comparative the six months ended June 30, 2025, while the three-month Operating Income (Loss) for the three months ended June 30, 2026 was higher than the three months ended June 30, 2025, with all four readings remaining in profit territory. The Net Income (Loss) Attributable to Parent follow the same shape: lower at the half-year mark the six months ended June 30, 2026 versus the six months ended June 30, 2025 and higher at the quarterly mark the three months ended June 30, 2026 versus the three months ended June 30, 2025, each transition profit to profit. Net Cash Provided by (Used in) Operating Activities for the six months ended June 30, 2026 was higher than the prior-year comparative the six months ended June 30, 2025, with both readings positive. Earnings Per Share, Diluted is also authorized as lower at the year-to-date mark and higher at the quarterly mark, profit to profit in both cases.

A reader weighing only the quarterly figures would conclude that the franchise strengthened across revenue, operating income, and net income versus the prior-year quarter, but the year-to-date figures tell a different story: top-line revenue rose while both operating income and net income declined, leaving a mixed margin profile that the quarterly strength alone would obscure. The filing evidence contains no peer or industry comparison, so any conclusion about how this quarter's performance stacks up against other upstream operators or against a broader energy benchmark would be unsupported.

Scenario analysis

A base case for the periods reported in this 10-Q filing under accession 0001539838-26-000142 by Diamondback Energy, Inc. (FANG) for period-ended-2026-06-30 rests on the directional pattern already authorized by the filing's own comparatives. Revenues were higher than the prior-year comparative on both the three-month and six-month year-to-date windows — Revenues for the three months ended June 30, 2026 were $5,562,000,000 USD versus $3,678,000,000 USD for the three months ended June 30, 2025, and Revenues for the six months ended June 30, 2026 were $9,802,000,000 USD versus $7,726,000,000 USD for the six months ended June 30, 2025. Net Income (Loss) Attributable to Parent for the three months ended June 30, 2026 of $1,882,000,000 USD was higher than the prior-year profit of $699,000,000 USD, while the six-month Net Income (Loss) Attributable to Parent of $1,907,000,000 USD was lower than the prior-year $2,104,000,000 USD. The filing evidence does not attribute this change to any single cause. In the base view, the Permian-focused upstream model continues to consolidate around Viper as described in Note 1 and Note 4, and ordinary-dividend cash outflows of the kind authorized in the comparatives remain routine. - Revenues tracking higher on both windows while the three-month bottom line outperforms and the year-to-date bottom line is lower than the prior period - Viper-related consolidation mechanics, including the Sitio Acquisition referenced in Note 4, remain a structural feature of the base outcome

In an upside scenario, commodity-price and production conditions extend the authorized direction. Revenues for the three months ended June 30, 2026 at $5,562,000,000 USD and for the six months ended June 30, 2026 at $9,802,000,000 USD grow further relative to the prior-year comparables of $3,678,000,000 USD and $7,726,000,000 USD, and the three-month Net Income (Loss) Attributable to Parent of $1,882,000,000 USD builds on the prior-year profit of $699,000,000 USD. The six-month gap between $1,907,000,000 USD and the prior-year $2,104,000,000 USD narrows, so year-to-date profitability approaches — though may not match — the earlier profit level. The filing evidence does not attribute this change to any single cause. A continued shareholder-return profile on the dividend line referenced in Note 15 would accompany this state, alongside the consolidation framework discussed in Note 1. - Realizations favor the three-month window, lifting both top line and Net Income (Loss) Attributable to Parent above the base - Year-to-date Net Income (Loss) Attributable to Parent loses less ground against the prior-year profit than the base case implies

A downside scenario assumes softer commodity and/or Permian-volume conditions, weighing on the authorized revenue direction. Revenues for the three months ended June 30, 2026 of $5,562,000,000 USD and for the six months ended June 30, 2026 of $9,802,000,000 USD grow more slowly versus their respective priors $3,678,000,000 USD and $7,726,000,000 USD. The three-month Net Income (Loss) Attributable to Parent of $1,882,000,000 USD still sits above the prior-year profit of $699,000,000 USD, but the year-to-date Net Income (Loss) Attributable to Parent gap widens, with $1,907,000,000 USD falling further short of $2,104,000,000 USD. The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison. Readers can stress-test this framing against the divergent profit-and-revenue pattern in Capstone Energy Plus Swings to Profit on Lower Revenue in Interim Filing, which illustrates how a softer top line combined with a profit transition can reshape an interim result for a peer in the same energy space. - Revenue growth decelerates but stays positive on the authorized direction - The year-to-date Net Income (Loss) Attributable to Parent shortfall deepens, while the three-month bottom line retains its positive direction

Risks and what to watch

- The reporting identity is the 10-Q for period-ended-2026-06-30, filed under accession 0001539838-26-000142 by Diamondback Energy, Inc. (CIK 0001539838, ticker FANG), and the dimensions below are evaluated solely against the values, notes, and reference items visible in that filing.

Reported facts (from the income statement) - Net Income (Loss) Attributable to Parent for the three-month period the three months ended June 30, 2026 was $1,882,000,000, and the prior-year comparative for the three months ended June 30, 2025 was $699,000,000. On a year-over-year basis the quarter comparison is a profit-to-profit move with a higher result than the prior year, as authorized. - Net Income (Loss) Attributable to Parent for the six-month year-to-date period the six months ended June 30, 2026 was $1,907,000,000, versus $2,104,000,000 for the six months ended June 30, 2025. The half-year comparison is also a profit-to-profit move, but the result is lower than the prior year, as authorized. - Revenues for the three-month period the three months ended June 30, 2026 were $5,562,000,000, against $3,678,000,000 for the three months ended June 30, 2025, showing a higher quarter result than the prior year, as authorized. - Revenues for the six-month year-to-date period the six months ended June 30, 2026 were $9,802,000,000, against $7,726,000,000 for the six months ended June 30, 2025, also higher than the prior year, as authorized.

Management explanation and structural context - The filing notes that the Viper Sitio Acquisition described in Note 4 (Acquisitions and Divestitures) completed during the period, with VNOM Sub, Inc. (formerly Viper Energy, Inc., "Former Viper") becoming a wholly owned subsidiary of Viper Energy, Inc. The Company consolidates Viper under the variable interest entity guidance in Note 2 (Summary of Significant Accounting Policies), and non-controlling interest in Viper is presented separately from the Company's equity and net income. - Management states that the interim statements reflect all adjustments necessary for a fair interim presentation, that certain GAAP footnote disclosures have been omitted under SEC rules, and that prior period amounts have been reclassified with an immaterial effect on previously reported totals, per Note 1 (Basis of Presentation).

Analyst inference (limited to what the catalog supports) - The combination of higher revenue on both windows alongside a lower six-month net income but a higher three-month net income is the kind of split that investors typically examine through margin, cost, and non-controlling-interest lenses; the cited notes flag Viper consolidation and non-controlling-interest presentation as relevant structural items, but the section's catalog does not contain the margin, expense, or NCI breakdowns that would let a reader confirm any specific driver here. - A cross-check on how a peer handled higher revenue against softer net income can be seen in CMS Energy Reports Softer Bottom Line Against Higher Contract Revenue in period-ended-2026-06-30 10-Q Filing, which frames the same revenue-up/profit-down pattern that this filing partially shows on the half-year window.

Counter-evidence and unknown dimensions - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison. - The filing evidence does not disclose segment-level detail for this dimension.

Metrics to watch next period - Whether the three-month profit growth observed for the three months ended June 30, 2026 versus the three months ended June 30, 2025 extends into the next reporting window, or whether the half-year softness in net income for the six months ended June 30, 2026 versus the six months ended June 30, 2025 persists. - The continuing effect of the Viper Sitio Acquisition on the Company's consolidated revenue line $5,562,000,000 and on the attribution of net income between the parent and non-controlling interests, as described in Note 4 and Note 2. - Any reclassifications of prior period amounts, which management indicates have been immaterial to previously reported total assets, total liabilities, and stockholders' equity. - Items disclosed under Item 1A (Risk Factors), Item 3 (Quantitative and Qualitative Disclosures About Market Risk), and Item 4 (Controls and Procedures), which are the parts of 10-Q most likely to introduce new risk language or material changes between this period and the next.