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Here are 1-3 brief analogies to describe Diamondback Energy:

• The ExxonMobil for Permian Basin oil and gas extraction.

• A focused Chevron for West Texas oil and gas production.

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• Crude Oil: Diamondback Energy produces and sells crude oil, a primary fossil fuel commodity.
• Natural Gas: The company extracts and sells natural gas, used for heating, electricity generation, and industrial processes.
• Natural Gas Liquids (NGLs): Diamondback also produces and sells natural gas liquids such as ethane, propane, and butane, which are used as feedstocks and fuels.

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Diamondback Energy (FANG) Major Customers

Diamondback Energy (FANG) is an independent oil and natural gas company focused on the acquisition, development, exploration, and exploitation of unconventional oil and associated natural gas reserves. As such, it sells its crude oil, natural gas, and natural gas liquids primarily to other companies.

According to its most recent annual filings (10-K), Diamondback Energy's major customers and their approximate percentage of total revenues for the year ended December 31, 2023, include:

• Phillips 66 Company (PSX) - Approximately 12% of total revenues
• Plains All American Pipeline, L.P. (PAA) - Approximately 12% of total revenues
• Enterprise Products Operating LLC (EPD) - Approximately 11% of total revenues

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• Helmerich & Payne (NYSE: HP)
• Patterson-UTI Energy (NASDAQ: PTEN)
• ProPetro Holding Corp. (NYSE: PUMP)
• Liberty Energy (NYSE: LBRT)
• U.S. Silica Holdings, Inc. (NYSE: SLCA)

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Kaes Van't Hof, Chief Executive Officer and Director

Mr. Van't Hof has served as the Chief Executive Officer and a director of Diamondback since May 2025. Prior to this, he held various leadership positions within Diamondback, including President (February 2025 – May 2025), President and Chief Financial Officer (February 2022 – February 2025), and Chief Financial Officer and Executive Vice President of Business Development (February 2019 – February 2022). Before joining Diamondback in July 2016, Mr. Van't Hof served as Chief Executive Officer for Bison Drilling and Field Services from September 2012 to June 2016. He also worked as an analyst for Wexford Capital, LP, a private equity fund, from August 2011 to August 2012, where he was involved in developing operating models and business plans for Diamondback's initial public offering. Earlier in his career, he worked in investment banking for Citigroup Global Markets, Inc.

Jere Thompson, Executive Vice President and Chief Financial Officer

Mr. Thompson has served as Executive Vice President and Chief Financial Officer since February 2025. He previously served as Executive Vice President of Strategy and Corporate Development from February 2024 to February 2025, Senior Vice President of Strategy and Corporate Development from February 2023 to February 2024, and Vice President of Strategy and Corporate Development since joining Diamondback in March 2021. Prior to joining Diamondback, Mr. Thompson was Vice President of Planning at Concho Resources Inc.

Travis D. Stice, Executive Chairman of the Board

Mr. Stice has served as Executive Chairman of the Board since May 2025. He previously served as Chairman of the Board since February 2022 and as Chief Executive Officer of Diamondback from January 2012 until May 2025. Mr. Stice also served as Chief Executive Officer and a director of Viper Energy Partners, Inc., a publicly traded subsidiary of Diamondback, from February 2014 to February 2025. Additionally, he was Chief Executive Officer and a director of the general partner of Rattler Midstream LP from July 2018, which was acquired by Diamondback in August 2022. His extensive career in the oil and gas industry began with Mobil Oil in 1985, followed by positions of increasing responsibility at Burlington Resources, ConocoPhillips, Laredo Petroleum Holdings, Inc., and Apache Corporation.

Teresa L. Dick, Executive Vice President, Chief Accounting Officer and Assistant Secretary

Ms. Dick has served as Executive Vice President, Chief Accounting Officer and Assistant Secretary since February 2019. Before her current role, she served as Executive Vice President and Chief Financial Officer for Diamondback from January 2017 to February 2019. Ms. Dick has over 25 years of accounting experience, including public company experience in both audit and tax areas. Prior to joining Diamondback in January 2007, she held various accounting roles with Faulkner Exploration and served as a Tax Director and Controller at Hiland Partners LLC. Ms. Dick is also an Independent Director at Bank7 Corp.

Matt Zmigrosky, Executive Vice President, Chief Legal and Administrative Officer and Secretary

Mr. Zmigrosky has served as Executive Vice President, Chief Legal and Administrative Officer and Secretary since February 2023. Prior to this, he served as Executive Vice President, General Counsel and Secretary since joining Diamondback in February 2019. Before his tenure at Diamondback, Mr. Zmigrosky served as Associate General Counsel for Pioneer Natural Resources USA, Inc. from June 2005 to April 2014, and as Senior Attorney from January 2002 to June 2005. He holds a BSM in Finance and a JD.

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The key risks to Diamondback Energy's business (NASDAQ: FANG) are primarily linked to the inherent volatility and regulatory landscape of the oil and natural gas industry.

1. Commodity Price Volatility: As an independent oil and natural gas company, Diamondback Energy's financial performance, including profitability, cash flow, and valuation, is highly sensitive to fluctuations in crude oil and natural gas prices. Significant downturns in commodity prices can materially and adversely affect its revenues, cash flows, and ability to generate shareholder returns.
2. Regulatory and Environmental Risks: The company operates within a heavily regulated environment, facing extensive federal and state laws concerning hydraulic fracturing, air emissions, water management, and climate change. Changes in existing regulations or the introduction of new environmental policies could lead to increased operating costs, impose limits on production, or reduce long-term demand for fossil fuels, thereby impacting Diamondback Energy's operations and financial condition.
3. Operating Risks and Production Challenges: Diamondback Energy faces operational challenges and uncertainties inherent in oil and natural gas exploration and production. These risks include the unpredictability of reserve and reservoir performance, potential failures or delays in achieving anticipated production levels, drilling hazards, and difficulties in securing necessary permits and approvals. Rising operating costs and potential declines in well productivity as high-quality acreage is depleted could also pressure margins and free cash flow.

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The rapid acceleration of the global energy transition, specifically driven by faster-than-anticipated electrification of the transportation sector and widespread, cost-competitive deployment of renewable energy sources coupled with advanced energy storage solutions.

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Diamondback Energy (NASDAQ: FANG) primarily operates in the Permian Basin, focusing on the exploration and production of crude oil, natural gas, and natural gas liquids (NGLs). The addressable market for these products is primarily within the Permian Basin region of West Texas and New Mexico.

For 2025, the estimated addressable market sizes in the Permian Basin are:

• Crude Oil: The Permian Basin's crude oil output is projected to reach approximately 6.6 million barrels per day (b/d) in 2025.
• Natural Gas: Marketed natural gas production in the Permian Basin is expected to grow to about 25.8 billion cubic feet per day (Bcf/d) in 2025.
• Natural Gas Liquids (NGLs): While a total market size for NGLs in the Permian Basin is not explicitly stated in barrels per day, the region is a dominant driver for NGL growth in the U.S. It is expected to contribute over 180 thousand barrels per day (Mb/d) to an anticipated 198 Mb/d increase in total U.S. NGL purity product production in 2025. The Permian Basin is considered a substantial producing region for NGLs, driven by strong economic incentives for drilling.

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Here are 3-5 expected drivers of future revenue growth for Diamondback Energy (FANG) over the next 2-3 years:

1. Increased Hydrocarbon Production Volumes: Diamondback Energy has consistently demonstrated strong operational performance and has raised its full-year oil production guidance for 2025. The company reported an average oil production of 503.8 thousand barrels per day (MBO/d) in Q3 2025, with total production reaching 942.9 thousand barrels of oil equivalent per day (BOE/d). Furthermore, Diamondback has set a baseline oil production target of 510,000 barrels per day for 2026, indicating a sustained focus on increasing or maintaining high production levels.
2. Strategic Acquisitions and Optimized Portfolio: Diamondback Energy has engaged in strategic transactions aimed at enhancing its portfolio and financial flexibility. A notable example is the acquisition of Sitio Royalties Corp. by its subsidiary, Viper Energy, Inc., which closed in August 2025. Additionally, the company has completed divestitures of non-core assets, such as Environmental Disposal Systems, LLC, generating significant cash proceeds that can be reinvested into higher-growth opportunities. These actions allow for a more focused and efficient deployment of capital to maximize revenue generation from core assets.
3. Operational Efficiencies and Cost Reduction Initiatives: The company has prioritized efficiency improvements and well cost reductions, even in the face of challenges like tariffs on steel. Diamondback attributes these savings to enhanced efficiencies, including continuous pumping and improved drilling techniques. While primarily impacting profitability, these efficiencies indirectly drive revenue growth by enabling the company to maintain or increase production at a lower cost per barrel, thereby supporting more aggressive development plans or better returns on capital reinvestment.
4. Gas Monetization and Diversification into New Markets: Diamondback Energy is exploring opportunities in gas monetization and potential expansion into new markets, such as power generation and data centers. The company has also secured a long-term supply agreement with Competitive Power Ventures for a 1.3 gigawatt power plant, which is expected to reduce its exposure to Waha pricing from over 70% to 40% by 2026. These initiatives represent new avenues for revenue generation beyond traditional oil and gas sales, diversifying the company's income streams.

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Share Repurchases

• Diamondback Energy's board of directors increased its share repurchase authorization to $4 billion in November 2022.
• The company repurchased $888 million of common stock during the full year 2023.
• In the first quarter of 2024, approximately $292 million of common stock was repurchased.

Outbound Investments

• In December 2023, Diamondback Energy announced an agreement to acquire Endeavor Energy Resources, LP, in a cash and stock transaction valued at approximately $26 billion.
• Diamondback Energy completed the acquisition of all outstanding common units of Rattler Midstream LP in an all-stock transaction valued at approximately $2.2 billion, which closed in Q3 2022.
• In October 2023, the company acquired leasehold interests and related assets across approximately 30,000 net acres in the Midland Basin from private operators for $462 million in cash.

Capital Expenditures

• Diamondback Energy's full-year 2023 capital expenditures totaled $2.32 billion.
• The company's 2024 capital expenditure budget is projected to be between $2.8 billion and $3.0 billion.
• The primary focus of capital expenditures is on drilling and completion activities within the Permian Basin.