Diamondback Energy Q2 Earnings: Will Higher Costs Offset Strong Production?

Diamondback Energy (FANG) is set to release its second-quarter 2026 results on August 3. The company has seen a rise in earnings per share, with the Zacks Consensus Estimate pegged at $6.08 per share on revenues of $4.8 billion.

The Permian-focused oil and gas producer reported adjusted earnings per share of $4.23 in its last reported quarter, beating the Zacks Consensus Estimate by 19%. Revenues also topped the consensus estimate by 10.6%.

Diamondback has a history of beating expectations, with an average surprise of 5.3% over the past four quarters. However, our model suggests that the company's total costs and expenses are expected to have increased to $4.3 billion from the year-ago level of $2.5 billion.

The company has been impacted by deeply negative Waha natural gas prices, which have pressured realized gas and NGL pricing. Additionally, Diamondback had to curtail roughly 2,000-3,000 barrels of daily production on economic grounds.