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DIAMONDBACK Energy Diamondback Energy , Inc. Announces Third Quarter 2021 Financial and Operating Results ; Increases Dividend November 1 , 2021 MIDLAND , Texas , Nov. 01 , 2021 ( GLOBE NEWSWIRE ) -- Diamondback Energy , Inc. ( NASDAQ : FANG ) ( " Diamondback " or the " Company " ) today announced financial and operating results for the third quarter ended September 30 , 2021 . THIRD QUARTER 2021 HIGHLIGHTS • Q3 2021 average production of 239.8 MBO / d ( 404.3 MBOE / d ) • Q3 2021 Permian Basin production of 223.0 MBO / d ( 374.3 MBOE / d ) • Q3 2021 cash flow from operating activities of $ 1,199 million ; Operating Cash Flow Before Working Capital Changes ( as defined and reconciled below ) of $ 1,131 million • Q3 2021 cash capital expenditures of $ 391 million ; Q3 2021 activity - based capital expenditures incurred of approximately $ 430 million • Q3 2021 Free Cash Flow ( as defined and reconciled below ) of $ 740 million • Closed previously announced full redemption of $ 432 million remaining aggregate principal amount of 5.375 % bonds due 2025 • Announced commitment to return 50 % of Free Cash Flow to stockholders beginning in Q4 2021 ; Board authorized $ 2 billion share repurchase program as part of this commitment ● Repurchased 268,291 shares of common stock at an average price of $ 82.02 during the third quarter of 2021 • Flared 0.8 % ( 1.6 % including QEP ) of gross natural gas production in the third quarter of 2021 ; 0.9 % ( 1.6 % including QEP ) in the first nine months of 2021 RECENT HIGHLIGHTS • Increasing annual dividend by 11.1 % to $ 2.00 per share ; declared Q3 2021 cash dividend of $ 0.50 per share payable on November 18 , 2021 ; implies a 1.9 % annualized yield based on the October 29 , 2021 share closing price of $ 107.19 • Closed previously announced divestiture of Williston Basin assets on October 21 , 2021 ; net cash proceeds of $ 586 million after closing price adjustments • Closed previously announced full redemption of $ 650 million aggregate principal amount of 0.9 % bonds due 2023 • Agreed to drop down transaction ( " Drop Down " ) of water midstream assets to subsidiary Rattler Midstream LP ( NASDAQ : RTLR ) ( " Rattler " ) for gross consideration of $ 160 million , subject to certain closing adjustments ; expected to close in Q4 2021 • Closed sale of Mustang Springs Gas Gathering assets for net consideration of approximately $ 54 million , after certain post - closing adjustments GUIDANCE UPDATE • Full year 2021 oil production guidance of 222 223 MBO / d ( 370 - 372 MBOE / d ) , up from 219-222 MBO / d ( 363-370 MBOE / d ) previously , after giving effect for Q4 2021 Williston Basin production through October 21 , 2021 • Lowering full year 2021 cash CAPEX guidance to $ 1.49 $ 1.53 billion , down 4 % at the midpoint from $ 1.525 - $ 1.625 billion previously • Initiating Q4 2021 oil production guidance of 221 - 225 MBO / d ( 368 - 375 MBOE / d ) ; includes ~ 3 MBO / d ( ~ 5 MBOE / d ) of estimated net Q4 2021 Williston Basin production • Initiating Q4 2021 Permian Basin oil production guidance of 218 - 222 MBO / d ( 363-370 MBOE / d ) • Initiating Q4 2021 cash CAPEX guidance of $ 435 - $ 475 million • Diamondback believes it can maintain Q4 2021 Permian Basin oil production through full year 2022 assuming Q4 2021's run rate CAPEX spend " Diamondback continued building on its execution track record in the third quarter , generating a record $ 740 million of Free Cash Flow while keeping capital costs under control . Efficiency gains , particularly in the Midland Basin drilling and completion programs , have mitigated the inflationary pressures seen on well costs and have led to our second decrease in capital guidance this year , now down 10 % from guidance presented in April 2021. Through the third quarter of 2021 , Diamondback has generated $ 1.65 billion of Free Cash Flow , and we have used this Free Cash Flow to reduce our gross debt by $ 1.3 billion and increase our dividend for the third time this year , now up 33 % from a year ago , " stated Travis Stice , Chief Executive Officer of Diamondback . Mr. Stice continued , " In addition , we are well - positioned to deliver on the enhanced return of capital program we recently outlined , where we expect to distribute 50 % of quarterly Free Cash Flow beginning with the fourth quarter's performance . This program consists of our sustainable and growing base dividend , which is well protected below $ 40 oil , and a combination of share repurchases and variable dividends which will be used