U.S. shale producer Diamondback Energy has raised its full-year production outlook after reporting stronger-than-expected first-quarter earnings, driven by a sharp rally in global oil prices.
The Midland, Texas-based company announced the upgrade on Monday, citing a tightening supply-demand balance following geopolitical disruptions, including the ongoing U.S.-Israeli conflict with Iran, which has significantly impacted energy infrastructure and supply chains.
Chief Executive Officer Kaes Van’t Hof said elevated crude prices are prompting the firm to accelerate output growth, adding that Diamondback is well positioned to quickly bring additional barrels to market.
For 2026, the company now expects production to exceed 972,000 barrels of oil equivalent per day, up from its earlier forecast range of 926,000 to 962,000 boepd.
Diamondback plans to scale operations by deploying five completion crews and adding up to three rigs, while maintaining capital discipline. It also raised its capital expenditure guidance to approximately $3.9 billion.
In the first quarter, output rose to 979,356 boepd from 850,656 boepd a year earlier, reflecting stronger operational performance.
The company posted adjusted earnings of $4.23 per share, surpassing analysts’ expectations of $3.30, according to LSEG data.
Despite the positive results, shares dipped slightly in after-hours trading, which analysts attributed to investor positioning rather than fundamentals.
Diamondback added that it will prioritize share buybacks over variable dividends in the near term as part of its strategy to maximize shareholder returns.
The outlook underscores how U.S. shale producers are capitalizing on higher crude prices amid ongoing global supply uncertainty.