Free cash flow generation remains highly inconsistent, evidenced by a negative 63.3% margin in 2025Q2 and a substantial $810 million working capital outflow in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Cash from Operations | 8.23B | 8.76B | 6.41B | 5.92B | 6.33B | 3.94B | 2.12B | 2.74B | 1.56B | 889M | 332.08M | 416.5M | 356.39M | 155.78M | 49.69M | 31M | 5.19M | 2.7M |
| Operating CF Margin % | - | 58.29% | 58.18% | 70.99% | 66.12% | 58.46% | 75.29% | 69.1% | 71.92% | 73.78% | 63% | 93.23% | 71.89% | 74.89% | 66.29% | 62.79% | 19.05% | 21.25% |
| Operating CF Growth % | 84.49% | 36.57% | 8.33% | -6.4% | 60.37% | 86.21% | -22.67% | 75.02% | 76.04% | 167.71% | -20.27% | 16.87% | 128.78% | 213.49% | 60.31% | 497.03% | 92.18% | - |
| Net Income | 403M | 1.66B | 3.7B | 3.34B | 4.56B | 2.28B | -4.67B | 315M | 945M | 517M | -164.91M | -547.79M | 195.97M | 54.59M | -36.52M | -386K | 8.23M | -2.71M |
| Depreciation & Amortization | 5.22B | 5.04B | 2.85B | 1.75B | 1.34B | 1.27B | 1.31B | 1.45B | 623M | 327M | 178.01M | 217.7M | 170M | 66.6M | 26.27M | 16.1M | 8.14M | 3.22M |
| Stock-Based Compensation | 43M | 0 | 65M | 54M | 55M | 51M | 37M | 48M | 27M | 26M | 26.45M | 18.53M | 9.82M | 1.75M | 3.48M | 544K | 0 | 0 |
| Deferred Taxes | -767M | -519M | 15M | 378M | 720M | 606M | -1.04B | 47M | 168M | -20M | 0 | -201.54M | 108.98M | 31.56M | 54.9M | 0 | 0 | 0 |
| Other Non-Cash Items | 4.28B | 2.89B | -122M | 110M | -157M | -300M | 6.39B | 1.04B | -204M | 87M | 308.24M | 931.82M | -113.12M | -4.92M | -2M | 13.3M | 344K | 4.11M |
| Working Capital Changes | -992M | -314M | -96M | 296M | -199M | 36M | 97M | -167M | 6M | -48M | -15.72M | -2.21M | -15.27M | 6.19M | 3.55M | 1.44M | -11.53M | -1.92M |
| Change in Receivables | -390M | 386M | -33M | 212M | -330M | -44M | 155M | -187M | 13M | -97M | -33.74M | 11.15M | -42.14M | -20.5M | 1.06M | -5.68M | -8.62M | -956.34K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -10M | -14.77M | -2M | -255K | 224K | 915K | 554K | -639K | -872K | -4.9M | 83.05K |
| Change in Payables | -226M | -343M | -376M | 57M | -47M | -41M | -20M | -129M | -7M | 37M | 15.71M | 1.02M | 6.81M | 20.46M | 5.93M | 3.49M | 1.54M | 0 |
| Cash from Investing | -6.81B | -7.81B | -11.22B | -3.32B | -3.33B | -1.54B | -2.1B | -3.89B | -3.5B | -3.13B | -1.31B | -895.05M | -1.48B | -940.14M | -183.08M | -81.11M | -55.24M | -32.15M |
| Capital Expenditures | -6.64B | -3.52B | -11.79B | -4.71B | -3.61B | -2.27B | -2.04B | -3.7B | -3.48B | -3.3B | -1.19B | -902.09M | -1.45B | -939.92M | -176.49M | -87.24M | -56.31M | -26.63M |
| CapEx % of Revenue | 43.7% | 23.45% | 106.93% | 56.53% | 37.77% | 33.7% | 72.66% | 93.26% | 159.74% | 274.02% | 225.98% | 201.93% | 292.02% | 451.88% | 235.44% | 176.72% | 206.64% | 209.43% |
| Acquisitions | -314M | 0 | 0 | 0 | 0 | -114M | -102M | -485M | 0 | 0 | -2.35M | -2.7M | -34.48M | 0 | 0 | 6M | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -465M | -4.29B | 566M | 1.39B | 283M | 849M | 45M | 294M | -26.99M | 170M | -116.73M | 9.74M | 56K | 72K | 48K | 55K | 1.27M | -5.52M |
| Cash from Financing | -3.28B | -1.01B | 4.39B | -2.18B | -3.5B | -1.84B | -37M | 1.06B | 2.04B | 689M | 2.62B | 468.48M | 1.14B | 773.56M | 152.78M | 52.95M | 51.73M | 23.85M |
| Debt Issued (Net) | -535M | 1.57B | 6.37B | 377M | -257M | -680M | 410M | 851M | 1.91B | 370M | 625M | -178M | 213.5M | 460M | -85.05M | 40.23M | 37.12M | 7.65M |
| Equity Issued (Net) | -1.49B | -778M | -483M | -935M | -1.25B | -525M | -137M | 513M | 305M | 370M | 2.05B | 650.69M | 928.43M | 322.68M | 237.16M | 0 | 0 | 0 |
| Dividends Paid | -1.28B | -1.16B | -1.58B | -1.44B | -1.57B | -312M | -236M | -112M | -37M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -5.58M | 0 |
| Share Repurchases | -2.08B | -2.01B | -959M | -935M | -1.25B | -525M | -137M | -593M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 25M | -648M | 75M | -174M | -423M | -324M | -74M | -190M | -140M | -51M | -51.88M | -4.21M | -1.7M | -9.12M | 671K | 12.72M | 20.2M | 16.2M |
| Net Change in Cash | -1.86B | -58M | -421M | 421M | -508M | 564M | -20M | -87M | 103M | -1.55B | 1.65B | -10.07M | 14.63M | -10.8M | 19.4M | 2.84M | 1.69M | -5.6M |
| Free Cash Flow | 1.59B | 5.24B | -5.37B | 1.21B | 2.71B | 1.67B | 74M | -958M | -1.91B | -2.41B | -859.09M | -485.59M | -1.09B | -784.15M | -126.8M | -56.24M | -51.12M | -23.93M |
| FCF Margin % | 10.48% | 34.84% | -48.75% | 14.46% | 28.35% | 24.75% | 2.63% | -24.17% | -87.82% | -200.25% | -162.98% | -108.7% | -220.12% | -376.99% | -169.15% | -113.93% | -187.59% | -188.19% |
| FCF Growth % | 130.13% | 197.41% | -545.61% | -55.53% | 62.4% | 2156.76% | 107.72% | 49.87% | 20.8% | -180.88% | -76.92% | 55.5% | -39.16% | -518.43% | -125.45% | -10.01% | -113.64% | - |
| FCF per Share | 5.63 | 18.11 | -25.17 | 6.70 | 15.36 | 9.42 | 0.47 | -5.85 | -18.21 | -24.70 | -11.44 | -7.71 | -20.47 | -18.56 | -3.43 | -2.49 | -2.26 | -1.06 |
| FCF Conversion (FCF/Net Income) | 3.95x | 5.26x | 1.92x | 1.88x | 1.44x | 1.81x | -0.47x | 11.41x | 1.85x | 1.84x | -2.01x | -0.76x | 1.84x | 2.85x | -1.36x | -80.31x | 0.63x | -1.00x |
| Interest Paid | 0 | 0 | 269M | 146M | 135M | 0 | 0 | 0 | 114M | 0 | 38.18M | 38.76M | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 605M | 352M | 718M | 0 | 0 | 0 | 689K | 0 | 192K | 267K | 0 | 0 | 0 | 0 | 0 | 0 |
Capital intensity and inventory depletion
According to the provided financial data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio reaching an extreme -1.61 in 2025Q4, suggesting that reported accounting earnings are currently poor proxies for the company's actual cash-generating capacity.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital swings are heavily distorting the bottom line. Investors should monitor this gap closely, as it suggests that the company's core profitability may be less stable than headline earnings figures imply.
As reported in recent quarterly filings, Diamondback's free cash flow trajectory has been highly inconsistent, swinging from a negative 63.3% margin in 2025Q2 to a positive 41.5% in 2025Q4, reflecting the extreme sensitivity of cash generation to both capital expenditure timing and commodity price fluctuations.
This volatility in free cash flow margins suggests that the company's ability to fund shareholder returns is highly dependent on short-term operational cycles. The lack of a consistent FCF trend warrants further investigation into whether the current capital allocation model is sustainable through prolonged periods of price weakness.
Based on the company's reported figures, capital expenditure as a percentage of revenue has fluctuated wildly, peaking at 109.3% in 2025Q2, which indicates that the firm's capital intensity is not yet stabilized and remains subject to lumpy, large-scale investment requirements for drilling and completion activities.
The high variability in CapEx/Revenue suggests that the company is still in a phase of aggressive asset development or integration, which may be masking the true maintenance capital requirements of its Permian acreage. This level of spending intensity may limit the company's flexibility if commodity prices remain suppressed.
As indicated by the quarterly cash flow statements, working capital changes have been a significant source of volatility, including a substantial $810 million outflow in 2026Q1, which suggests that operational cash flow is frequently disrupted by timing differences in receivables and payables management.
These recurring working capital outflows may indicate inefficiencies in the cash conversion cycle or the impact of large-scale procurement cycles associated with drilling operations. Investors should monitor whether these swings become a permanent feature of the cash flow profile, as they complicate the predictability of free cash flow.
According to the latest financial statements, Diamondback has maintained significant cash outflows for dividends and share repurchases, totaling over $1 billion in 2026Q1 alone, even as operating cash flow and net income have shown considerable instability across the observed ten-quarter period.
The commitment to returning capital to shareholders appears to be a core management priority, yet the reliance on cash reserves to fund these distributions during periods of negative free cash flow warrants caution. This strategy may limit the company's ability to navigate future downturns if operational cash generation does not stabilize.
Quick answers to the most common questions about buying FANG stock.
Diamondback Energy, Inc. (FANG) generated $8.76B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Diamondback Energy, Inc. (FANG) generated $5.24B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Diamondback Energy, Inc. (FANG) spent $3.52B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Diamondback Energy, Inc. (FANG) returned $1.16B to shareholders via cash dividends and spent $2.01B on share repurchases. This shows the company's commitment to returning capital to its equity investors.