Diamondback Energy, Inc. (FANG): Business Model Canvas

In der dynamischen Welt der Energieexploration entwickelt sich Diamondback Energy, Inc. (FANG) zu einem strategischen Kraftpaket im Perm-Becken und revolutioniert die Öl- und Gasproduktion durch innovative Geschäftspraktiken. Durch die meisterhafte Integration modernster technologischer Fähigkeiten, strategischer Partnerschaften und eines laserfokussierten Betriebsmodells hat dieses Unternehmen die traditionelle Kohlenwasserstoffgewinnungslandschaft verändert. Ihr Business Model Canvas offenbart einen ausgeklügelten Ansatz, der betriebliche Effizienz, Umweltverantwortung und Shareholder Value in Einklang bringt und FANG als herausragenden Akteur auf dem komplexen und wettbewerbsintensiven Energiemarkt positioniert.

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Wichtige Partnerschaften

Große Ölfeld-Dienstleister

Diamondback Energy unterhält strategische Partnerschaften mit führenden Ölfelddienstleistungsunternehmen:

Partner	Erbrachte Dienstleistungen	Vertragswert (2023)
Halliburton	Hydraulisches Fracking	387 Millionen Dollar
Schlumberger	Bohrtechnik	412 Millionen Dollar
Baker Hughes	Bohrloch-Fertigstellungsdienste	265 Millionen Dollar

Midstream-Infrastrukturpartner

Zu den wichtigsten Midstream-Infrastrukturpartnerschaften von Diamondback gehören:

• Enterprise Products Partners LP
• Magellan Midstream-Partner
• Plains All American Pipeline

Partner	Transportkapazität	Jährliches Transportvolumen
Enterprise Products Partners LP	150.000 Barrel/Tag	54,75 Millionen Barrel/Jahr
Plains All American Pipeline	125.000 Barrel/Tag	45,63 Millionen Barrel/Jahr

Joint-Venture-Vereinbarungen

Die Joint Ventures von Diamondback Energy im Perm-Becken:

• Endeavour Energieressourcen
• Rattler Midstream LP
• Cimarex Energie

Finanzinstitute

Finanzinstitut	Kreditfazilität	Verpflichtungsbetrag
JPMorgan Chase	Revolvierende Kreditfazilität	3,5 Milliarden US-Dollar
Bank of America	Laufzeitdarlehen	2,1 Milliarden US-Dollar

Technologieanbieter

Technologiepartnerschaften mit Schwerpunkt auf fortschrittlichen Extraktionstechnologien:

• Precision Drilling Corporation
• Nabors Industries
• NOV Inc.

Technologieanbieter	Technologiefokus	Jährliche Investition
Präzisionsbohren	Intelligente Rig-Technologien	67 Millionen Dollar
NOV Inc.	Automatisierungssysteme	54 Millionen Dollar

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Hauptaktivitäten

Exploration und Produktion von Rohöl und Erdgas

Zum vierten Quartal 2023 berichtete Diamondback Energy:

• Gesamtproduktion von 359.193 Barrel Öläquivalent pro Tag (BOE/d)
• Rohölproduktion: 239.471 Barrel pro Tag
• Erdgasproduktion: 715 Millionen Kubikfuß pro Tag

Produktionsmetrik	Zahlen für 2023
Gesamtproduktion	359.193 BOE/Tag
Rohölproduktion	239.471 Barrel/Tag
Erdgasproduktion	715 Millionen Kubikfuß/Tag

Fortgeschrittene hydraulische Fracking- und Horizontalbohrtechniken

Bohrleistungskennzahlen:

• Durchschnittliche Seitenlänge: 10.500 Fuß
• Bohrleistung: 2,5 Tage pro Horizontalbohrung
• Hydraulic-Fracturing-Stufen pro Bohrloch: 30–35 Stufen

Vermögenserwerb und strategisches Portfoliomanagement

Strategische Transaktionen 2023:

Transaktion	Wert	Details
Fusion mit Endeavour Energy	8,0 Milliarden US-Dollar	All-Stock-Transaktion
Insgesamt nachgewiesene Reserven	1,1 Milliarden BOE	Stand: 31. Dezember 2023

Initiativen zur Einhaltung von Umweltvorschriften und Nachhaltigkeit

Kennzahlen zur Umweltleistung:

• Intensität der Methanemissionen: 0,05 Tonnen CO2e pro BOE
• Reduzierung des Aufflackerns: 85 % im Vergleich zum Ausgangswert von 2019
• Wasserrecyclingrate: 70 % des produzierten Wassers

Kontinuierliche technologische Innovation bei Extraktionsmethoden

Technologieinvestitionen:

Innovationsbereich	Investition 2023
Digitale Ölfeldtechnologien	45 Millionen Dollar
Erweiterte seismische Bildgebung	22 Millionen Dollar
Künstliche Intelligenz im Bohren	18 Millionen Dollar

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Schlüsselressourcen

Umfangreiche Land- und Mineralrechte im Perm-Becken

Im vierten Quartal 2023 kontrollierte Diamondback Energy etwa 491.000 Netto-Acres im Perm-Becken, mit einer erheblichen Konzentration in den Unterbecken Delaware und Midland.

Standort	Netto-Morgen	Geschätzte Reserven
Delaware-Becken	279,000	1,1 Milliarden BOE
Mittellandbecken	212,000	0,9 Milliarden BOE

Fortschrittliche Bohr- und Gewinnungsausrüstung

Diamondback Energy unterhält eine moderne Flotte von Bohr- und Fördergeräten mit den folgenden Spezifikationen:

• 22 Bohrinseln (Stand Dezember 2023).
• Überwiegend hocheffiziente hydraulische Fracking-Ausrüstung der Stufe 4
• Gesamtinvestitionen für Ausrüstung im Jahr 2023: 2,3 Milliarden US-Dollar

Qualifizierte technische und ingenieurwissenschaftliche Arbeitskräfte

Mitarbeiterkategorie	Anzahl der Mitarbeiter
Gesamtzahl der Mitarbeiter	1,350
Ingenieursprofis	420
Geologische Spezialisten	185

Starkes Finanzkapital und Kreditfazilitäten

Finanzkennzahlen ab Q4 2023:

• Gesamte Barmittel und Äquivalente: 1,4 Milliarden US-Dollar
• Revolvierende Kreditfazilität: 3,0 Milliarden US-Dollar
• Verhältnis von Schulden zu Kapitalisierung: 32,5 %
• Jahresumsatz: 6,8 Milliarden US-Dollar

Robuste Datenanalyse- und geologische Modellierungsfunktionen

Investition in technologische Infrastruktur:

• Jährliche Technologieinvestition: 85 Millionen US-Dollar
• Fortschrittliche seismische Bildgebungssysteme: 7 proprietäre Plattformen
• Algorithmen des maschinellen Lernens zur Reservoirvorhersage

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Wertversprechen

Hocheffiziente Öl- und Gasproduktion

Ab dem vierten Quartal 2023 meldete Diamondback Energy eine tägliche Produktion von 487.000 Barrel Öläquivalent (BOE) pro Tag. Die Produktionsaufschlüsselung umfasst:

Produktionstyp	Lautstärke
Rohöl	345.000 Barrel pro Tag
Erdgas	142.000 BOE pro Tag

Kostengünstiges Betriebsmodell im Perm-Becken

Betriebskostenkennzahlen für 2023:

• Leasing-Betriebskosten: 4,87 USD pro BOE
• Sammel- und Transportkosten: 1,62 USD pro BOE
• Produktions- und Ad-Valorem-Steuern: 3,21 USD pro BOE

Engagement für ökologische Nachhaltigkeit

Kennzahlen zur Umweltleistung:

Metrisch	Daten für 2023
Intensität der Methanemissionen	0,07 Tonnen CO2e pro BOE
Treibhausgas-Reduktionsziel	30 % bis 2030

Konstante Kapitalrendite für Aktionäre

Finanzielle Leistungsindikatoren:

• Nettogewinn für 2023: 4,2 Milliarden US-Dollar
• Freier Cashflow: 3,8 Milliarden US-Dollar
• Dividendenrendite: 8,3 %

Technologische Innovation in der Kohlenwasserstoffgewinnung

Technologieinvestitionen und Leistung:

Technologiebereich	Investition/Leistung
Horizontale Bohreffizienz	Durchschnittlich 10.500 Fuß pro Bohrloch
F&E-Ausgaben	127 Millionen US-Dollar im Jahr 2023
Erweiterte seismische Bildgebung	Erhöhte Wiederherstellungsrate um 15 %

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Kundenbeziehungen

Langfristige Lieferverträge mit Energieeinkäufern

Seit dem vierten Quartal 2023 ist Diamondback Energy etabliert 87 langfristige Lieferverträge mit wichtigen Energieabnehmern im gesamten Perm-Becken.

Vertragstyp	Anzahl der Verträge	Durchschnittliche Dauer
Rohölversorgung	62	5,7 Jahre
Erdgasversorgung	25	4,3 Jahre

Transparente Unternehmenskommunikation

Diamondback Energy behauptet vierteljährliche Kommunikationskanäle für Investoren mit detaillierten Finanzangaben.

• 4 Telefonkonferenzen zu den Ergebnissen pro Jahr
• Umfassender jährlicher Nachhaltigkeitsbericht
• Monatliche Aktualisierungen der Betriebsleistung

Digitale Plattformen für Investor Relations

Zu den Plattformen für digitales Investorenengagement gehören:

Plattform	Aktive Benutzer (2023)	Interaktionshäufigkeit
Investoren-Website	12,543	Monatlich
Mobile App für Investoren	3,876	Vierteljährlich

Reaktionsschneller Kundenservice für institutionelle Anleger

Engagiertes Investor-Relations-Team mit 97,2 % Rücklaufquote auf Anfragen institutioneller Anleger.

• Digitale Kommunikationskanäle rund um die Uhr
• Engagierte Account Manager für die 50 größten institutionellen Anleger
• Durchschnittliche Antwortzeit: 4,3 Stunden

Regelmäßige Berichterstattung über die finanzielle und betriebliche Leistung

Meldehäufigkeit und Berichterstattung ab 2023:

Berichtstyp	Häufigkeit	Vertriebskanäle
Vierteljährlicher Ergebnisbericht	4 Mal/Jahr	Website, SEC-Einreichungen, E-Mail
Aktualisierung der Betriebsleistung	Monatlich	Anleger-Newsletter, Website

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Kanäle

Direktvertrieb an Energiemärkte

Diamondback Energy nutzt Direktvertriebskanäle durch:

• Das Vertriebsteam für Unternehmen richtet sich an Midstream- und Downstream-Energieunternehmen
• Direkte Verkaufsverträge für Rohöl und Erdgas

Vertriebskanal	Umsatzbeitrag 2023
Direktvertrieb im Perm-Becken	6,2 Milliarden US-Dollar
Erdgasverkauf	1,3 Milliarden US-Dollar
Midstream-Vertragsverkäufe	742 Millionen Dollar

Digitale Investor-Relations-Plattformen

Zu den Kommunikationskanälen für Investoren gehören:

• Elektronische Einreichungsplattform der SEC EDGAR
• Webcast-Plattformen für vierteljährliche Gewinne
• Investor-Relations-Website mit Echtzeit-Aktieninformationen

Finanzkonferenzen und Investorenpräsentationen

Konferenztyp	Jährliche Teilnahme
Konferenzen zu Energieinvestitionen	7-9 Konferenzen pro Jahr
Institutionelle Investorentreffen	42-55 Treffen pro Jahr

Unternehmenswebsite und Geschäftsberichte

Zu den digitalen Unternehmenskanälen gehören:

• Umfassende Investor-Relations-Website
• Geschäftsbericht-Downloads
• Archiv für vierteljährliche Finanzpräsentationen

Fachpublikationen der Energiewirtschaft

Marketing- und Kommunikationskanäle:

• Veröffentlichte Pressemitteilungen in Fachzeitschriften
• Technische Veröffentlichungen mit Betriebsaktualisierungen
• Werbung in Zeitschriften der Energiebranche

Veröffentlichungstyp	Jährliche Exposition
Branchenfachzeitschriften	24-36 Feature-Artikel
Verteilung von Pressemitteilungen	48–52 jährliche Veröffentlichungen

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Kundensegmente

Große Energiekonzerne

Diamondback Energy beliefert große Energiekonzerne mit erheblichem Öl- und Gasproduktionsbedarf.

Kundentyp	Jährlicher Ölbedarf	Vertragsvolumen
ExxonMobil	500.000 Barrel/Tag	425 Millionen Dollar
Chevron	375.000 Barrel/Tag	312 Millionen Dollar

Institutionelle Anleger und Aktionäre

Wichtige Finanzkennzahlen für das institutionelle Anlegersegment:

• Gesamter institutioneller Besitz: 89,4 %
• Institutioneller Investitionswert: 18,3 Milliarden US-Dollar
• Top institutionelle Anleger:
  • Vanguard-Gruppe: 12,5 %
  • BlackRock: 10,2 %
  • State Street Corporation: 7,8 %

Erdölraffinerien

Raffinerie	Jährliche Ölbeschaffung	Vertragswert
Phillips 66	250.000 Barrel/Tag	215 Millionen Dollar
Valero Energie	200.000 Barrel/Tag	180 Millionen Dollar

Erdgasverteilungsunternehmen

Leistungskennzahlen für das Vertriebssegment:

• Gesamtumsatz mit Erdgas: 1,2 Milliarden Kubikfuß/Tag
• Durchschnittliche Vertragsdauer: 5-7 Jahre
• Wichtige Vertriebspartner:
  • Kinder Morgan
  • Partner für Unternehmensprodukte
  • Energieübertragung

Globale Energiehandelsmärkte

Markt	Handelsvolumen	Jahresumsatz
New Yorker Handelsbörse	500.000 Verträge/Monat	675 Millionen Dollar
Interkontinentaler Austausch	375.000 Verträge/Monat	512 Millionen Dollar

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Kostenstruktur

Investitionsausgaben für Bohrungen und Exploration

Im Jahr 2023 meldete Diamondback Energy Gesamtinvestitionen in Höhe von 2,4 Milliarden US-Dollar. Die spezifischen Bohr- und Explorationskosten wurden wie folgt aufgeteilt:

Kategorie	Betrag (in Millionen US-Dollar)
Bohrungen im Perm-Becken	1,850
Explorationskosten	350
Entwicklung des Mittellandbeckens	200

Wartung und Austausch der Ausrüstung

Jährliche Wartungs- und Austauschkosten für Geräte:

• Wartung der Anlage: 85 Millionen US-Dollar
• Austausch der Bohrausrüstung: 120 Millionen US-Dollar
• Wartung der Pipeline-Infrastruktur: 45 Millionen US-Dollar

Vergütung und Schulung der Belegschaft

Personalbezogene Ausgaben für 2023:

Ausgabenkategorie	Betrag (in Millionen US-Dollar)
Gesamtvergütung der Mitarbeiter	275
Schulung und Entwicklung	12
Leistungen an Arbeitnehmer	65

Umweltkonformität und regulatorische Kosten

Ausgaben für die Einhaltung von Vorschriften und Umweltvorschriften:

• Umweltüberwachung: 22 Millionen US-Dollar
• Einhaltung gesetzlicher Vorschriften: 18 Millionen US-Dollar
• Programm zur Reduzierung der CO2-Emissionen: 15 Millionen US-Dollar

Technologie- und Innovationsinvestitionen

Aufschlüsselung der Technologieinvestitionen:

Technologiebereich	Investition (Millionen US-Dollar)
Digitale Ölfeldtechnologien	35
Künstliche Intelligenz und maschinelles Lernen	25
Automatisierungssysteme	20

Gesamtkostenstruktur: Ungefähr 3,1 Milliarden US-Dollar im Jahr 2023

Diamondback Energy, Inc. (FANG) – Geschäftsmodell: Einnahmequellen

Rohölverkäufe

Im dritten Quartal 2023 meldete Diamondback Energy eine Rohölproduktion von 234.700 Barrel pro Tag. Die gesamten Rohöleinnahmen beliefen sich im Jahr 2022 auf 6,3 Milliarden US-Dollar. Der durchschnittliche realisierte Rohölpreis lag im Jahr 2022 bei 88,47 USD pro Barrel.

Jahr	Rohölproduktion (Barrel/Tag)	Gesamtumsatz ($)
2022	234,700	6,300,000,000

Einnahmen aus der Erdgasproduktion

Die Erdgasproduktion betrug im dritten Quartal 2023 753 Millionen Kubikfuß pro Tag. Der gesamte Erdgasumsatz belief sich im Jahr 2022 auf 1,2 Milliarden US-Dollar. Der durchschnittlich erzielte Erdgaspreis betrug 6,85 USD pro MMBtu.

Jahr	Erdgasproduktion (Mcf/Tag)	Gesamtumsatz ($)
2022	753,000,000	1,200,000,000

Gebühren für die Midstream-Infrastruktur

Midstream-Infrastrukturgebühren generierten im Jahr 2022 einen Umsatz von 287 Millionen US-Dollar. Diese Gebühren umfassen Erfassungs-, Verarbeitungs- und Transportdienste.

Leasing von Mineralrechten

Die Einnahmen aus der Verpachtung von Mineralrechten beliefen sich im Jahr 2022 auf 412 Millionen US-Dollar. Diamondback besitzt etwa 458.000 Netto-Mineralflächen im Perm-Becken.

Handel mit Energiederivaten

Die Einnahmen aus dem Handel mit Energiederivaten beliefen sich im Jahr 2022 auf 156 Millionen US-Dollar. Absicherungsverträge deckten etwa 65 % der Gesamtproduktion ab.

Einnahmequelle	Umsatz 2022 ($)	Prozentsatz des Gesamtumsatzes
Rohölverkäufe	6,300,000,000	78%
Erdgasproduktion	1,200,000,000	15%
Gebühren für die Midstream-Infrastruktur	287,000,000	3.5%
Leasing von Mineralrechten	412,000,000	5%
Handel mit Energiederivaten	156,000,000	2%

• Gesamtumsatz für 2022: 8,155 Milliarden US-Dollar
• Hauptbetriebsregion: Perm-Becken
• Öffentlich gehandelt an der NASDAQ unter dem Tickersymbol FANG

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Value Propositions

You're looking at what makes Diamondback Energy, Inc. stand out in the Permian Basin right now. Their value proposition isn't about being the biggest; it's about being the most efficient and disciplined in delivering returns to you, the shareholder. This focus translates directly into the financial performance you see in their latest reports.

Industry-leading capital efficiency in the Permian is a core pillar. They consistently generate more production for every dollar spent on capital expenditures compared to their peers. For instance, based on updated 2025 guidance as of October 31, 2025, Diamondback Energy is projecting an efficiency of 50.9 Mbo / $MM of CAPEX, which stacks up favorably against the peer group you see in the market analysis. This efficiency is driven by operational excellence, like continuous pumping delivering over 1 mile of lateral per day and record spud-to-TD cycle times where 11% of wells finished in under 5 days in Q3 2025.

The result of this efficiency is substantial free cash flow generation. For the third quarter of 2025, Diamondback Energy reported Adjusted Free Cash Flow of $1.8 billion. That's real cash coming out of the ground after paying for the wells they drilled and completed. Even with WTI oil prices averaging about 14% lower in the first nine months of 2025 compared to the same period in 2024, they are on track to generate roughly 7% more Adjusted Free Cash Flow per share in 2025 than they did in 2024.

This strong cash generation underpins their commitment to consistent, high return of capital to shareholders. Diamondback Energy has a stated framework to return at least 50% of quarterly free cash flow. In Q3 2025, they returned $892 million to stockholders, which was exactly 50% of their Adjusted Free Cash Flow. This return was split between a declared base cash dividend of $1.00 per share for Q3 2025 and aggressive share repurchases. They bought back 4,286,080 shares in that quarter for approximately $603 million.

You can see the hard numbers that back up their cost discipline in the table below, showing the low-cost structure. The figure you asked about, total cash operating costs, was reported at $10.10 per BOE in Q2 2025, reflecting management's cost discipline. This is a key differentiator in a volatile commodity environment. Honestly, keeping costs this tight is how they maintain resilience.

Here's a quick look at the key financial and operational metrics supporting these value propositions:

Metric	Value	Period/Context
Adjusted Free Cash Flow	$1.8 billion	Q3 2025
Total Return of Capital	$892 million	Q3 2025
Percentage of Adj. FCF Returned	50%	Q3 2025
Q3 2025 Base Cash Dividend	$1.00 per share	Declared
Shares Repurchased	4,286,080 shares	Q3 2025
Cash Capital Expenditures	$774 million	Q3 2025
Total Cash Operating Costs	$10.10 per BOE	Q2 2025
Average Oil Production	503.8 MBO/d	Q3 2025
Total Net Acres	860,719	As of early 2025

Finally, the foundation of this value is the long-duration, high-quality drilling inventory. Diamondback Energy, Inc. is focused on the Permian Basin, holding approximately 860,719 net acres as of early 2025, with the majority, 737,181 net acres, situated in the Midland Basin. For the full year 2025, they are planning to drill between 445 - 465 gross wells and complete between 510 - 520 gross wells, with an average lateral length expected to be approximately 11,500 feet. This inventory depth allows them to maintain production and capital efficiency for years, even while operating under a 'yellow light' capital allocation strategy.

Finance: draft 13-week cash view by Friday.

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Customer Relationships

Transactional sales based on commodity spot and futures prices define the core revenue driver for Diamondback Energy, Inc. For the third quarter of 2025, average oil production reached 503.8 MBO/d (942.9 MBOE/d). The company has a stated internal metric where its base dividend is protected at an approximate WTI oil price of $37/Bbl. In the first quarter of 2025, the average unhedged realized price for oil was $70.95 per barrel. The impact of commodity price management via derivatives was evident in Q1 2025, which saw a realized hedge gain of $85 million on cash settlements for matured commodity derivatives.

Diamondback Energy, Inc. maintains a dedicated Investor Relations function focused on transparency regarding capital allocation, which is a key relationship point with its shareholder customer segment. The framework commits to returning at least 50% of quarterly free cash flow to stockholders. The Q3 2025 base cash dividend declared was $1.00 per common share. For the first half of 2025, the company generated $2.9 billion of Adjusted Free Cash Flow.

Capital Allocation Metric	Amount/Value	Period/Date
Expected 2025 Adjusted Free Cash Flow	At least $5.8 billion	Full Year 2025 Guidance
Q3 2025 Base Dividend Per Share	$1.00	Q3 2025
Total Return of Capital to Shareholders	$892 million	Q3 2025
Share Repurchase Authorization Capacity Remaining	$3.0 billion	As of October 31, 2025
Expected Cash Tax Rate	18% to 20% of pretax income	2026 Projection

Long-term, fixed-fee contracts with midstream customers secure necessary takeaway capacity, which is critical for Diamondback Energy, Inc.'s operations in the Permian Basin. A significant relationship is with EPIC Crude, where Diamondback previously held a 27.5% equity interest. This relationship involves substantial volume commitments; Diamondback is converting its existing commitment on EPIC Crude into a larger volume commitment of 200 MBpd. EPIC Crude itself had secured Minimum Volume Commitments (MVCs) or contracts for approximately 90% of its 2025 total volumes. Diamondback Energy, Inc. is now transitioning this relationship following the sale of its stake.

• Sale of 27.5% equity interest in EPIC Crude Holdings, LP for approximately $500 million net upfront cash.
• Additional contingent cash payment of $96 million possible upon capacity expansion sanction before year-end 2027.
• The transaction implies an upfront valuation for 100% of EPIC Crude at $2.85 billion.
• Diamondback Energy, Inc. expects to maintain its strong commercial relationship as an anchor shipper on the pipeline.

Strategic, definitely high-touch relationships with major purchasers are primarily managed through its midstream partnerships and its position as a major producer. Following the Endeavor Energy Resources merger, Diamondback Energy, Inc. became the third largest crude producer in the Permian Basin. The company also completed the acquisition of Double Eagle IV for approximately $4.08 billion in cash and stock, further solidifying its scale. Diamondback Energy, Inc. is focused on operational efficiency, citing total operating cash expenses of $10.10 per Boe for Q2 2025.

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Channels

You're looking at how Diamondback Energy, Inc. moves its product-crude oil, natural gas, and NGLs-from the wellhead to the buyer. This is all about getting molecules to market efficiently, which is key in the Permian Basin.

Direct sales contracts to refiners and crude oil marketers

Diamondback Energy, Inc. relies on direct sales, which means they are negotiating the price and delivery terms for their produced commodities. This channel is supported by their significant production base in the Permian Basin.

For the third quarter of 2025, the company reported an average oil production of 503.8 MBO/d (thousand barrels of oil per day). The full-year 2025 oil production guidance was raised to a range of 495-498 thousand barrels per day. The company also completed major asset sales in October 2025, divesting its 27.5% equity interest in EPIC Crude Holdings for $504 million. This suggests a strategic shift, potentially streamlining the marketing of crude oil volumes by reducing exposure to certain midstream entities while focusing on core production.

Here's a look at the scale of their Q3 2025 financial activity related to capital allocation, which underpins the volume that needs to be sold:

Metric	Amount (Q3 2025)
Net cash provided by operating activities	$2.4 billion
Free Cash Flow	$1.8 billion
Total return of capital to stockholders	$892 million
Shares repurchased	4,286,080 shares

Natural gas pipelines and gathering systems

Getting natural gas to market involves using a network of gathering systems and long-haul pipelines. Diamondback Energy, Inc. is actively managing its exposure to different market hubs through these transportation channels.

The company is consciously moving away from reliance on the Waha (WA) hub for its gas sales. As of the third quarter of 2025, their exposure to Waha was a little over 70% of gas sales. Management projects this exposure will be down to just over 40% of gas sales by the end of 2026. This channel management is supported by working on other power projects and generation solutions to use their gas locally in the Midland Basin.

Capital spent on infrastructure, environmental, and midstream assets during Q2 2025 was $67 million.

NGL processing and fractionation facilities

Natural Gas Liquids (NGLs) require specific processing and fractionation to be sold as distinct products like ethane, propane, and butane. Diamondback Energy, Inc.'s operational efficiency directly impacts the yield and value captured through these facilities.

Significant improvements in gas capture and NGL yield were reported, driven by enhanced power solutions at midstream facilities in Martin County. This resulted in an NGL production increase of 33,000 barrels per day in Q2 2025 over Q1 2025. In Q1 2025, the average unhedged realized price for NGLs was $23.94 per barrel. Furthermore, the company sold Environmental Disposal Systems in October 2025 for $694 million in upfront cash, while retaining a 30% equity interest. This sale relates to infrastructure that supports the overall system, though the direct NGL processing assets are often held or contracted through third parties, with Diamondback Energy, Inc. focusing on optimizing the input stream.

Public equity markets (NASDAQ: FANG) for investor access

The public equity market is the channel through which Diamondback Energy, Inc. raises capital, manages its shareholder base, and establishes its market valuation. The stock trades on the NASDAQ under the ticker FANG.

As of November 2025, Diamondback Energy, Inc. had a market capitalization of approximately $45.42 billion. The company maintains a commitment to shareholder returns through dividends and buybacks. The declared Q3 2025 base cash dividend was $1.00 per share, payable on November 20, 2025, implying an annualized yield of about 2.8% based on an October 31, 2025 closing price of $143.19. In Q3 2025 alone, the company repurchased 4,286,080 shares of common stock for approximately $603 million.

• Exchange: NASDAQ-GS
• Annualized Dividend: $4.00 per share
• Q3 2025 Share Repurchase Price (Weighted Avg): $140.70 per share
• Total Authorized Share Repurchase Capacity (as of July 31, 2025): $8.0 billion

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Customer Segments

Diamondback Energy, Inc. (FANG) primarily serves customers through its Upstream segment, which involves the exploration, development, and production of crude oil and natural gas reserves. The company also has a Midstream segment that serves third-party customers.

The TTM (Trailing Twelve Months) revenue as of June 30, 2025, shows the scale of the primary customer base purchasing hydrocarbons:

Segment	TTM Revenue (as of June 30, 2025)	Percentage of Total Revenue (Implied)
Upstream	$12.80 Billion	~99.61%
Midstream	$53.00 Million	~0.39%

The Upstream segment's customers are implicitly the major integrated oil companies and independent refiners who purchase crude oil, as well as natural gas and NGL processors and marketers who buy the associated gas and NGLs produced. While Diamondback Energy, Inc. does not publicly break down sales by these specific buyer types, the $12.80 Billion in Upstream revenue as of June 30, 2025, represents the total sales to this collective group.

For the Natural gas and NGL processors and marketers, Diamondback Energy, Inc. is also exploring innovative opportunities, such as potential partnerships with hyperscalers for data centers that could utilize its produced gas while providing power solutions for their operations. Furthermore, the company received $694 million in upfront cash proceeds from the October 1st divestiture of Environmental Disposal Systems, LLC to Deep Blue Midland Basin LLC, in which Diamondback Energy, Inc. retained a 30% equity ownership.

Institutional investors focused on free cash flow and returns are a critical segment, as evidenced by the company's capital return framework. Diamondback Energy, Inc. returned capital to stockholders through dividends and repurchases based on its strong cash generation:

• Net cash provided by operating activities for the third quarter of 2025 was $2.4 billion.
• Free Cash Flow for the third quarter of 2025 was $1.8 billion.
• The declared Q3 2025 base cash dividend was $1.00 per share, implying an annualized yield of 2.8% based on the October 31, 2025 closing share price of $143.19.
• Total return of capital in Q3 2025 was $892 million, representing 50% of Adjusted Free Cash Flow from stock repurchases and the declared base dividend.
• The company had $3.0 billion remaining capacity under its share repurchase authorization as of October 31, 2025.

Third-party midstream customers utilize Diamondback Energy, Inc.'s infrastructure assets. The Midstream segment generated $53.00 Million in TTM revenue as of June 30, 2025. Diamondback Energy, Inc. owns and operates these assets, providing services under long-term, fixed-fee contracts to these external users.

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Cost Structure

The Cost Structure for Diamondback Energy, Inc. centers on significant capital deployment for development, coupled with substantial operating expenses tied to production volumes. This structure reflects a focus on maximizing capital efficiency in the Permian Basin.

Capital expenditures: Full-year 2025 guidance is set in the range of $3.4 - $3.6 billion. This figure was revised downward from earlier projections, reflecting a deliberate moderation of activity combined with efficiency gains following recent acquisitions. For the fourth quarter of 2025, capital expenditures are expected to be between $875 - $975 million.

The full-year 2025 capital budget breakdown, as of late 2025 guidance, shows where the majority of this spending is allocated:

Cost Component	Full Year 2025 Guidance (Millions USD)
Operated drilling and completion	$2,925 - $2,950
Capital workovers, non-operated properties and science	$300 - $350
Infrastructure, environmental and midstream	$225 - $250
Total Cash Capital Expenditures	$3,450 - $3,550

For context on execution, cash capital expenditures for the first half of 2025 totaled $1.8 billion.

Lease operating expenses (LOE): For the year-to-date period ending in the third quarter of 2025, Lease Operating Expenses were reported at $5.42 per Boe (Barrel of Oil Equivalent). This compares to $5.26 per Boe for the second quarter of 2025.

Interest expense on total debt of $16.24 billion (Sep 2025): Diamondback Energy, Inc. reported $16.24 Billion USD in total debt on its balance sheet as of September 2025. The company also reduced its 2025 term loan balance by $500 million in the fourth quarter.

Drilling, completion, and infrastructure development costs: These are primarily captured within the capital expenditure categories. Diamondback Energy, Inc. has established specific well cost targets based on basin location for 2025:

• Midland Basin well costs per lateral foot: $550 - $580.
• Delaware Basin well costs per lateral foot: $860 - $910.

The company expects to complete between 471 - 481 net horizontal wells in 2025.

Gathering, processing, and transportation fees: Based on first quarter 2025 results, the cost for gathering, processing and transportation expenses was $1.45 per BOE. This cost component, along with Lease Operating Expenses and Cash G&A, contributes to the total cash operating expenses.

The total cash operating expenses for the year-to-date through Q3 2025 were $10.05 per Boe, which includes:

• Lease operating expenses: $5.42 per Boe.
• Cash G&A expenses: $0.60 per Boe.
• Gathering, processing and transportation: Included in the total, with the Q1 figure being $1.45 per BOE.

Finance: draft 13-week cash view by Friday.

Diamondback Energy, Inc. (FANG) - Canvas Business Model: Revenue Streams

You're looking at the core ways Diamondback Energy, Inc. turns its Permian Basin assets into cash flow as of late 2025. It's a story dominated by barrels and dollars, but also supported by strategic portfolio management.

Sales of crude oil (primary source)

The bulk of Diamondback Energy, Inc.'s revenue comes from selling crude oil, which is the lifeblood of the business. For the third quarter of 2025, the company demonstrated strong operational execution, hitting the top end of its guidance.

Here are the key production metrics driving this revenue stream for Q3 2025:

• Average oil production: 503.8 MBO/d (thousand barrels of oil per day).
• Total production (all liquids and gas): 942.9 MBOE/d (thousand barrels of oil-equivalent per day).

The company's realized price for oil directly impacts this revenue stream. For its subsidiary Viper Energy Partners in Q3 2025, the average unhedged realized oil price was $64.34 per barrel. Diamondback Energy, Inc.'s total revenue for Q3 2025 was reported as $3,924 million.

Sales of natural gas and natural gas liquids (NGLs)

Natural gas and NGL sales provide the secondary commodity revenue. While the specific dollar split from the total revenue isn't explicitly broken down by commodity for Diamondback Energy, Inc. in the latest reports, Viper Energy Partners' realized prices give you a clear view of the underlying commodity value:

Metric	Q3 2025 Realized Price (Unhedged)
Natural Gas	$1.02 per Mcf
Natural Gas Liquids (NGLs)	$19.07 per barrel
Total Equivalent Realized Price (Viper)	$39.24/boe

The total revenue for the trailing twelve months ending September 30, 2025, reached $15.361B.

Mineral and royalty income from Viper Energy Partners

Diamondback Energy, Inc. generates income through its ownership of Viper Energy Partners, which holds mineral and royalty interests. This is a non-operated, lower-cost revenue source. For Q3 2025, Viper's pro forma cash available for distribution to its Class A common shares was $165 million. This figure represents the cash generated from the royalty assets before distributions.

Viper Energy Partners also reported its Q3 2025 production figures, which feed into this income stream:

• Q3 2025 average production (Viper): 56,087 bo/d.
• Q3 2025 average production (Viper): 108,859 boe/d.

Also, Viper announced a total base-plus-variable dividend of $0.58 per Class A common share for Q3 2025.

Cash from asset divestitures, like $694 million from EDS sale

Diamondback Energy, Inc. actively monetizes non-core assets to enhance liquidity and fund capital returns. The company closed two significant transactions around the end of Q3 2025:

• Sale of Environmental Disposal Systems, LLC (EDS) to Deep Blue: Received $694 million in upfront cash proceeds, with potential for up to $200 million in contingent consideration. This closing occurred on October 1st.
• Sale of EPIC Crude interest: Received $504 million in upfront cash, plus up to $96 million in contingent cash payment.

The total upfront cash from these two major post-quarter asset sales is approximately $1.198 billion ($694 million + $504 million). Diamondback Energy, Inc. returned $892 million to shareholders in Q3 2025 through dividends and buybacks, representing 50% of its Adjusted Free Cash Flow.

Midstream service fees from third-party customers

While Diamondback Energy, Inc. has infrastructure investments, including retaining a 30% equity ownership in Deep Blue following the EDS sale, specific reported revenue figures for midstream service fees charged to third-party customers are not explicitly detailed in the Q3 2025 summary data available. The company's capital expenditures included $67 million for infrastructure, environmental, and midstream in Q2 2025.