Diamondback Energy, Inc. (NASDAQ: FANG)

Diamondback Energy, Inc. is an independent oil and natural gas company engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin of West Texas. As of September 30, 2025, the company held approximately 862,019 net acres in the Permian Basin, comprising about 751,146 net acres in the Midland Basin and 110,873 net acres in the Delaware Basin. Its operations are concentrated on the horizontal development of the Wolfcamp and Spraberry formations in the Midland Basin and the Wolfcamp and Bone Spring formations in the Delaware Basin.

The company generates revenue primarily from the sale of oil, natural gas, and natural gas liquids produced from its operated wells. For the nine months ended September 30, 2025, total oil, natural gas and natural gas liquid revenues amounted to $10.4 billion, while third quarter 2025 revenues were $3.4 billion. In addition, its publicly traded subsidiary Viper contributes royalty income and lease bonus income from mineral interests it holds in the Permian Basin and other regions. Revenues are driven by production volumes and the average sales prices received for those hydrocarbons.

The company operates through the following segments.

• Upstream segment: This segment encompasses the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin. Activities include drilling and completion of horizontal wells, with the company reporting 107 gross horizontal wells drilled in the Midland Basin and one gross horizontal well drilled in the Delaware Basin during the third quarter of 2025, and operating approximately 5,260 gross horizontal wells as of September 30, 2025. The segment also manages gathering, processing, and transportation of hydrocarbons for sale.

Diamondback Energy, Inc. ranks among the largest independent producers in the Permian Basin, competing with companies such as EOG Resources, Pioneer Natural Resources, and Chevron’s upstream operations. Its competitive advantages stem from a substantial acreage position, operational scale that allows efficient drilling and completion activities, and integrated midstream capabilities that reduce gathering, processing, and transportation costs. The company also employs a commodity hedging program to mitigate price volatility and protect cash flow.

The company sells its oil, natural gas, and natural gas liquids to refiners, marketers, and other energy companies that purchase hydrocarbons for processing, resale, or end use consumption. These customers include major refining firms and energy marketing entities that take delivery of the produced volumes under term or spot contracts.