Diamondback Energy, Inc. Q3 FY2025 earnings call

• Focus on generating free cash flow per share with a 36% reinvestment rate at mid-60s oil. - Synergy from Endeavor acquisition improving PV-10 per well. - Development styles in Permian with low cost structure and best execution. - Gas egress solutions like committing nat gas to Basin Ranch power plant and reducing Waha exposure. - Efficiency gains in drilling with continuous pumping design and improvements in well productivity. - Testing of new zones like Barnett and Woodford, and working on power projects for data centers.

No specific product segment financial performance data provided in the transcript.

• 4Q CapEx around $925 million, with baseline production at 510,000 barrels a day (pro forma for Viper deal) holding flat. - Expect Waha gas exposure to be down to over 40% of gas sales by year-end 2026 from over 70% today. - Continued focus on optimizing production and capital allocation for future growth.

• Macro-economic uncertainties affecting oil prices and demand. - Supply-demand imbalances in the Permian basin. - Volatility in natural gas pricing and egress options.

Q: On activity and others accelerating in Permian despite macro, does it affect Diamondback's plans?

A: Kaes Van't Hof says Diamondback has conviction in its plan, focuses on free cash flow per share, has low cost structure and net debt.

Q: On Slide 8 and Endeavor acquired acreage in 2026, changes to graphs?

A: Albert Barkmann says 2026 well performance expected to be consistent with 2024-2025.

Q: On efficiency gains and continuous pumping design?

A: Kaes Van't Hof mentions well costs down despite steel tariffs, Danny Wesson talks about drilling consistency and continuous pumping improving cycle times.

Q: On macro and green light scenario for Permian?

A: Kaes Van't Hof says industry can accelerate but capital efficiency matters, and at $70-$80 oil, returns higher.

Q: On maintenance capital and production?

A: Kaes Van't Hof says maintenance CapEx around $925 million per quarter, and DUC backlog is a structural advantage.

Q: On gas egress and pipelines?

A: Jere Thompson talks about committing nat gas to Basin Ranch power plant and reducing Waha exposure.

Q: On continuous pumping fleets and base production work?

A: Kaes Van't Hof says two fleets deployed today, planning to roll out more, and working on optimizing older wells with acidization, oxidation, etc.

Q: On red light scenario and M&A?

A: Kaes Van't Hof says red light is low oil prices, and M&A includes bolt-ons and value accretive deals.

Q: On lateral lengths and proprietary technology?

A: Albert Barkmann talks about lateral lengths in 2025, and Kaes Van't Hof mentions testing new technologies for recovery.