FANG · 10-Q · 2026Q2 · Full report
Capital Return Program
Diamondback Energy, Inc. · 2026-08-05 · Importance 65 · Surprise 82 · In source text
Beginning in the second quarter of 2026, the board removed Diamondback’s minimum 50% quarterly return-of-capital commitment to provide greater discretion over free-cash-flow allocation. On July 30, 2026, the board declared a $1.10-per-share base cash dividend for the second quarter. The board also doubled the common-stock repurchase authorization from $8.0 billion to $16.0 billion, excluding the 1% U.S. federal excise tax on certain repurchases under the Inflation Reduction Act. Through July 31, 2026, Diamondback had repurchased 43.0 million shares for $6.1 billion and had approximately $9.9 billion remaining under the program.
Key facts
- On July 30, 2026, the board approved an increase in the stock repurchase authorization from $8.0 billion to $16.0 billion, excluding excise tax, and as of July 31, 2026 approximately $9.9 billion remained available for future repurchases. source
- On July 30, 2026, board increased common stock repurchase program from $8.0 billion to $16.0 billion (excluding 1% excise tax); since inception through July 31, 2026 repurchased 43.0 million shares for total cost $6.1 billion including $814 million for 5.0 million shares from SGF, leaving approximately $9.9 billion for future repurchases. source
- As of June 30, 2026, the Company’s board approved a common stock repurchase program to acquire up to $8.0 billion of the Company’s outstanding common stock, excluding excise tax. source
- The Company paid dividends to stockholders, including dividend equivalent rights, of $311 million, or $1.10 per share, during the second quarter of 2026 and declared a base cash dividend payable in the third quarter of 2026 of $1.10 per share. source
- As of June 30, 2026, approximately $2.0 billion remained available for future repurchases under the Company’s common stock repurchase program, excluding excise tax. source
- On November 28, 2025, the Company entered into a letter agreement with SGF which provides SGF with the right, but not the obligation, to sell up to 3.0 million shares of the Company’s common stock to the Company per quarter through December 31, 2026 at the most recent Nasdaq closing price of such transaction. source
- Beginning in the second quarter of 2026, board approved removal of minimum 50% return of capital quarterly commitment to allow more discretion in allocation of Free Cash Flow. source
- On July 30, 2026, board declared a base cash dividend for Q2 2026 of $1.10 per share of common stock. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | committed | -12.0% | On July 30, 2026, board increased common stock repurchase program from $8.0 billion to $16.0 billion (excluding 1% excise tax); since… |
| cash | negative | realized | -8.7% | On July 30, 2026, board increased common stock repurchase program from $8.0 billion to $16.0 billion (excluding 1% excise tax); since… |
| cash | negative | realized | -0.4% | The Company paid dividends to stockholders, including dividend equivalent rights, of $311 million, or $1.10 per share, during the second… |
| liability | negative | committed | — | The Company paid dividends to stockholders, including dividend equivalent rights, of $311 million, or $1.10 per share, during the second… |
| cash | unclear | committed | — | Beginning in the second quarter of 2026, board approved removal of minimum 50% return of capital quarterly commitment to allow more… |
| liability | negative | committed | — | On July 30, 2026, board declared a base cash dividend for Q2 2026 of $1.10 per share of common stock. |