Overview

• U.S. oil producer's Q1 revenue and adjusted EPS beat analyst expectations

• Company raised base dividend by 5% and removed formulaic free cash flow return commitment

• Q1 oil production exceeded guidance despite weather impacts; company reduced gross debt by $0.6 bln

Outlook

• Diamondback expects to maintain production above 520,000 Bo/d, up 3% from prior 2026 guidance

• Company plans to run 5 completion crews and add 2-3 rigs for the rest of 2026

• Diamondback removes formulaic free cash flow return, increases base dividend to $4.40 per share annually

Result Drivers

• PRODUCTION OUTPERFORMANCE - Q1 oil production averaged 521,000 barrels per day, exceeding guidance due to strong execution and efficiency gains

• MARKET RESPONSE - Co accelerated production in response to higher oil prices and a global supply-demand imbalance

• OPERATIONAL EFFICIENCY - Efficiency gains in drilling and completions contributed to production beat, including record well drilling times and increased electrification of frac fleet

Company press release: ID:nGNX7xD5Zc

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$4.24 bln	$3.75 bln (17 Analysts)
Q1 Adjusted EPS	Beat	$4.23	$3.30 (25 Analysts)
Q1 Adjusted Free Cash Flow		$1.70 bln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 28 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

• Wall Street's median 12-month price target for Diamondback Energy Inc is $215.00, about 3.5% above its May 1 closing price of $207.65

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.