Diamondback Energy and Viper Energy 2Q26 Earnings Preview: Anticipating Upside Oil Production and Cash Flow Print on Well Productivity Strength

Research evidence excerpt

Diamondback Energy and Viper Energy 2Q26 Earnings Preview: Anticipating Upside Oil Production and Cash Flow Print on Well Productivity Strength

J P M O R G A N North America Equity Research

16 July 2026

Diamondback Energy and Viper

Energy

2Q26 Earnings Preview: Anticipating Upside Oil

Production and Cash Flow Print on Well Productivity

Strength

JPM View: We expect an upbeat print on the back of solid well productivity trends Oil & Gas Exploration & Production

ACand stronger-than-expected realizations, with our 2Q26 EPS/CFPS of $6.19/ Arun Jayaram

$11.52 sitting +1%/+1% above the Street estimate of $6.12/$11.41. Our (1-212) 622-8541

EBITDAX estimate of $3,781mm compares to the STe at $3,711mm. We are arun.jayaram@jpmchase.com

modeling 2Q26 oil production of 523.5 MBo/d, which is a hair above the STe at Pankaj Bhatter, CFA

521.5 MBo/d and above the midpoint of FANG’s guidance range of 515 - 525 MBo/ (1-212) 622-3795

d. Our above consensus forecast is driven by strong well productivity trends with pankaj.bhatter@jpmchase.com

the 2026 program trending above our type curve. The company had announced a Jack Jerusalmi

shift to a modicum of growth on the 1Q26 call, which included the early addition (1-212) 622-6552

jack.jerusalmi@jpmorgan.com

of a 5th HAL Zeus frac crew and a planned drawdown of DUC balances. The J.P. Morgan Securities LLC

company continues to message that growth would be an output of its program with

5 frac crews. On the back of strong well productivity trends (see Figure 1FANGMidlandBasinOilCumes), we are

raising our full-year oil production forecast to 524.7 MBo/d (from 523 MBo/d),

including 2H26 oil production of ~527.2 MBo/d (from 526.7 MBo/d). At recent

strip prices, we forecast 2026 FCF of $6.76bn (~12.7% FCF yield) on the back of