Diamondback raises Q3 guidance following Viper’s acquisition of Sitio

Published 19/08/2025, 12:06
Diamondback raises Q3 guidance following Viper’s acquisition of Sitio

MIDLAND, Texas - Diamondback Energy, Inc. (NASDAQ:FANG), a $40.4 billion market cap energy company trading at an attractive P/E ratio of 9.8, announced Tuesday that its publicly traded subsidiary, Viper Energy, Inc. (NASDAQ:VNOM), has completed its previously announced acquisition of Sitio Royalties Corp. According to InvestingPro analysis, Diamondback currently appears undervalued based on its Fair Value estimates.

Following the transaction’s closing, Diamondback has revised its third-quarter 2025 production guidance upward to account for 43 days of contribution from the Sitio assets beginning August 19.

The company increased its Q3 2025 net production guidance to 908-938 thousand barrels of oil equivalent per day (MBOE/d), up from the previous range of 890-920 MBOE/d. Oil production guidance was raised to 494-504 thousand barrels of oil per day (MBO/d) from the prior 485-495 MBO/d range.

For Viper Energy specifically, the Q3 2025 guidance projects net production of 104-110 MBOE/d and oil production of 54.5-57.5 MBO/d.

Diamondback indicated it will provide updated full-year 2025 guidance with its third-quarter earnings release in November 2025.

Diamondback Energy is an independent oil and natural gas company headquartered in Midland, Texas, focused on unconventional oil and natural gas reserves in the Permian Basin. Viper Energy, formed by Diamondback, specializes in owning and acquiring mineral and royalty interests primarily in oil-weighted basins.

The information in this article is based on a company press release statement.

In other recent news, Diamondback Energy reported its second-quarter earnings for 2025, which revealed a mixed financial performance. The company missed its earnings per share (EPS) forecast, reporting $2.67 compared to the expected $2.86, representing a negative surprise of 6.64%. However, Diamondback Energy exceeded revenue expectations, achieving $3.68 billion against the forecasted $3.38 billion, an 8.88% increase. In related developments, CFRA adjusted its price target for Diamondback Energy to $181.00 from $196.00, while maintaining a Buy rating on the stock. The research firm also revised its EPS estimates for the company, lowering the 2025 forecast by $0.61 to $13.26 and the 2026 projection by $0.93 to $15.75. These recent developments highlight the ongoing financial adjustments and market expectations surrounding Diamondback Energy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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