In the volatile world of U.S. shale, few operators demonstrate the kind of strategic discipline that defines Diamondback Energy (NASDAQ: FANG). While much of the industry chases momentum, Diamondback has built a reputation for moving in the opposite direction — acquiring quality assets when the market turns bearish and sentiment hits its lowest point.
Permian Wells Drilled Last 12 Months
Includes: Account, Well Name, Locations, Contractor and Rig….
This contrarian approach has not only fueled consistent growth but also positioned Diamondback as a model of resilience through multiple commodity price cycles.
Acquisition Discipline at the Core
Diamondback’s long-term success can be traced to a simple but powerful principle: buy when others hesitate.
The company’s acquisition strategy thrives on downturns. When valuations compress and competitors focus on survival, Diamondback quietly expands. Recent acquisitions — including Endeavor Energy Resources and Double Eagle IV — have fortified its dominance in the Permian Basin, particularly in Martin, Midland, and Reagan counties.
Each acquisition is guided by strict financial discipline. The goal isn’t just to grow production, but to enhance accretive free cash flow per share, ensuring that every barrel produced strengthens the balance sheet and shareholder returns.
Cyclical Opportunity: Downturns Breed Upside
Oil and gas remains one of the most cyclical industries on earth. The current environment of weak prices and cautious investor sentiment mirrors conditions seen before past rebounds.
When the consensus believes prices will “stay low forever,” history tends to prove otherwise. For investors, that creates the kind of asymmetric upside that only appears in periods of widespread pessimism.
Diamondback is well-positioned for this next inflection point. With lean operations, premium Permian acreage, and efficient capital deployment, the company is built to thrive as soon as the cycle turns upward.
Balance Sheet Strength & Shareholder Returns
A hallmark of Diamondback’s strategy is maintaining investment-grade financial strength even while aggressively growing.
In 2025, the company continues to deliver sustainable free cash flow, returning a significant portion to shareholders through dividends and share buybacks. At the same time, Diamondback has kept leverage low — a key differentiator that allows it to weather volatility and act decisively when opportunity strikes.
This combination of stability and agility gives the company a long-term edge over peers who rely on higher debt or short-term production gains.
2025 Wells Drilled Report: Operational Consistency Amid Market Uncertainty
Despite soft commodity prices, Diamondback maintained an impressive drilling pace through 2025, reflecting strong project execution and cost control.
📊 Total Wells Drilled: 380
🗺️ Top Counties by Wells Drilled
- Martin County: 218 wells
- Reagan County: 80 wells
- Midland County: 39 wells
- Ector County: 19 wells
- Upton County: 17 wells
Martin County continues to be the company’s core production engine — a testament to its highly productive Midland Basin acreage.
📅 Wells Drilled by Month (2025)
Drilling activity remained steady throughout the year, with notable peaks in April and September, signaling efficient rig scheduling and completion programs:
- Highest Activity: April (51 wells) and September (50 wells)
- Average Monthly Wells: ~38
🛠️ Contractor Insights
Diamondback maintained a strong relationship with Ensign Drilling, which dominated field operations:
- Ensign Rig 775 led with 28 wells
- Ensign Rig 766 followed with 22 wells
- Cactus Rig 132 also contributed notably
This consistency across rigs reflects operational reliability — a key advantage when managing multiple development zones across the Permian.
Why Diamondback Represents Contrarian Value
Investors often overlook energy companies during downcycles, assuming weakness will persist indefinitely. But those who understand the cyclical nature of the industry recognize that the best opportunities emerge when others pull back.
Diamondback Energy’s disciplined acquisition history, strong balance sheet, and robust operational base position it for outsized long-term gains once the next upcycle begins.
As the saying goes — “Buy when there’s fear in the market.” For Diamondback, that isn’t just a saying. It’s the strategy that built its success.
✅ Key Takeaway:
Diamondback Energy remains one of the most strategically positioned and financially disciplined operators in the Permian Basin — a proven contrarian bet in a cyclical market that rewards patience and timing.
