Diamondback Energy announced its Q3 2025 earnings after the close of the market Monday, reiterating a disciplined approach to production in a softening macro environment for crude oil. The company remains a pure-play Permian producer, with about 95% of its completed lateral footage in 2025 located in the Midland portion of the Permian, where per-foot drilling and completion costs are significantly lower than the Delaware.
Citing uncertainty about near-term crude oil oversupply, Diamondback announced Q4 2025 crude oil production guidance of 505-515 Mbbl/d, essentially flat compared with Q3, noting there was "no need for incremental oil barrels until there is a proper price signal". With a deep inventory of wells that make sense even at $50/bbl oil (see table below), the company can afford to wait for a clearer price signal without sacrificing cash generation.
