Diamondback Energy (FANG) Surges on Strong Q3 2025 Results, Wall Street Remains Bullish

Diamondback Energy (FANG) has captured significant investor attention following its Q3 2025 earnings report, which revealed adjusted EBITDA of $1.8 billion and core earnings per share of $1.47, surpassing analyst expectations by 12%. The company reported production volumes of 1.1 million barrels of oil equivalent per day (MMboe/d), a 9% year-over-year increase, driven by strong performance in the Permian Basin. These results reflect disciplined capital allocation and effective cost management, with production costs held steady at $18.20 per barrel of oil equivalent. The positive outcome comes at a time of elevated oil prices, with Brent crude averaging $89 per barrel during the quarter, supporting stronger revenue generation. Diamondback’s guidance for 2025 full-year production now stands at 1.12 million MMboe/d, up from the prior forecast of 1.1 million MMboe/d. The company also announced a revised capital expenditure plan of $4.2 billion for 2025, with 85% allocated to development drilling and infrastructure, signaling continued growth momentum. Wall Street responded swiftly, with nine out of twelve major brokerages upgrading the stock to 'Buy' or 'Strong Buy' in the days following the earnings release. The average price target rose to $138 per share, representing a 21% upside from the current trading level. Institutional ownership increased by 2.4 percentage points in the quarter, with several hedge funds adding positions. The stock posted a 7.3% gain in after-hours trading on earnings day, extending its 12-month return to 44%.