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DIAMONDBACK Energy Diamondback Energy , Inc. Announces Second Quarter 2021 Financial and Operating Results August 2 , 2021 MIDLAND , Texas , Aug. 02 , 2021 ( GLOBE NEWSWIRE ) Diamondback Energy , Inc. ( NASDAQ : FANG ) ( " Diamondback " or the " Company " ) today announced financial and operating results for the second quarter ended June 30 , 2021 . SECOND QUARTER 2021 HIGHLIGHTS -- • Q2 2021 average production of 242.5 MBO / d ( 401.5 MBOE / d ) • Generated Q2 2021 cash flow from operating activities of $ 954 million ; Operating Cash Flow Before Working Capital Changes ( as defined and reconciled below ) of $ 944 million , or $ 5.19 per diluted share • Q2 2021 cash capital expenditures of $ 366 million ; Q2 2021 activity - based capital expenditures incurred of approximately $ 418 million • Generated Q2 2021 Free Cash Flow ( as defined and reconciled below ) of $ 578 million , or $ 3.18 per diluted share • Increasing annual dividend by 12.5 % to $ 1.80 per share ; declared Q2 2021 cash dividend of $ 0.45 per share payable on August 19 , 2021 ; implies a 2.3 % annualized yield based on the July 30 , 2021 share closing price of $ 77.13 • Closed previously announced divestitures of non - core Permian assets for net proceeds of $ 82 million • Previously announced divestiture of Williston Basin assets expected to close in late Q3 2021 • As previously announced , Diamondback fully redeemed the $ 191 million aggregate principal amount of remaining 4.625 % 2021 Energen bonds in June • Announced full redemption of $ 432 million remaining aggregate principal amount of 5.375 % bonds due 2025 • Flared 1.0 % ( 2.0 % including QEP ) of gross natural gas production in the second quarter of 2021 ; 0.9 % ( 1.7 % including QEP ) in the first half of 2021 2021 GUIDANCE UPDATE • Increasing full year 2021 oil production guidance to 219 - 222 MBO / d ( 363-370 MBOE / d ) , up from 212 - 216 MBO / d ( 350 - 360 MBOE / d ) previously • Lowering full year 2021 cash CAPEX guidance to $ 1.525 - $ 1.625 billion , down 6 % at the midpoint from $ 1.60 - $ 1.75 billion previously • Initiating Q3 2021 oil production guidance of 233 239 MBO / d ( 388 - 398 MBOE / d ) ; includes 15 - 17 MBO / d ( 25 - 29 MBOE / d ) attributable to a full quarter of estimated net Q3 2021 Williston Basin production • Initiating Q3 2021 Permian Basin oil production guidance of 218 - 222 MBO / d ( 363-370 MBOE / d ) • Q3 2021 cash CAPEX guidance of $ 430 - $ 480 million • Diamondback believes it can maintain Q4 2021 Permian Basin oil production through full year 2022 with 10 % - 15 % more capital than the midpoint of its revised 2021 capital budget " Diamondback built on its track record of execution in the second quarter , generating $ 578 million of Free Cash Flow . Operationally , capital efficiency continues to improve . As a result , we are cutting our 2021 capital budget by $ 100 million due to cost control and volume outperformance . Put simply , we are doing more with less : producing more barrels with less capital , fewer completed wells and fewer drilling rigs , " stated Travis Stice , Chief Executive Officer of Diamondback . Mr. Stice continued , " From a macro perspective , the world oil market is still artificially undersupplied and there is not a call on shale production growth today . Therefore , Diamondback will maintain capital discipline by holding oil production flat for the foreseeable future . If this maintenance plan continues into 2022 , we expect to be able to hold fourth quarter 2021 Permian oil production flat with 10-15 % more capital than our current 2021 plan , demonstrating our improved capital efficiency that incorporates a full year of spend on the assets we acquired in the first quarter . We still believe the best path to long term value creation for stockholders today is achieved through flat oil production , lower costs and return of Free Cash Flow . " Mr. Stice continued , " As we have stated in the past , an increased return will not hinder our efforts to continue to pay down gross debt , and we have proven that again today with our second dividend increase this year , bringing our year - to - date dividend growth to 20 % . Additionally , beginning in 2022 , we plan to return 50 % of our Free Cash Flow to our stockholders . The form of this additional capital return will be decided by the Board at the appropriate time , but we intend to be flexible based on which opportunities we believe present the best return to our stockholders at that time . " OPERATIONS UPDATE The tables below provide a summary of operating activity for the second quarter of 2021 . Total Activity ( Gross Operated ) : Midland Basin Delaware Basin Number of Wells Drilled 47 9 Number of Wells Completed 47 14