Diamondback (NASDAQ: FANG) flags $97 million derivative loss amid high prices

Posted by Stephan Jacobs on Oct 8th, 2026

What happened

Diamondback Energy, Inc. (NASDAQ: FANG) said third-quarter 2026 derivatives are expected to show a $97 million cash-settlement loss. Unhedged oil averaged $87.30 a barrel.

The company also reported hedged oil at $85.89 a barrel, natural gas at $0.90 per Mcf, and NGLs at $20.02 a barrel. Natural gas liquids were $20.02 a barrel in both the unhedged and hedged tables.

Diamondback said net non-cash derivative losses are expected to be $85 million. Basic and diluted weighted average shares outstanding were 279,959 thousand each. The report was filed October 8, 2026 and covers the quarter ended September 30, 2026.

Key numbers

Metric	Latest	Source
Unhedged oil price	$87.30 per barrel	SEC 8-K
Hedged oil price	$85.89 per barrel	SEC 8-K
Natural gas price	$1.12 per Mcf	SEC 8-K
Net loss on cash settlements for derivative instruments	$97 million	SEC 8-K
Net non-cash loss on derivative instruments	$85 million	SEC 8-K

Why it matters

OptimistFi's case is that Diamondback works if its concentrated Permian acreage remains a low-cost cash machine and 2025's earnings compression proves cyclical rather than evidence that the inventory economics have deteriorated. This filing is mixed for that view because it shows strong realized prices, but it also adds a $97 million cash-settlement loss and an $85 million non-cash loss on derivatives.

OptimistFi's comparison shows unhedged oil averaged $1.41 a barrel more than hedged oil in the quarter. That points to a modest hedge drag on that benchmark.

The filing still shows high absolute realized prices for oil, natural gas and NGLs, so the expected derivative losses could prove temporary. The release is a pricing and hedging snapshot, so investors can use it as a near-term read on how the quarter landed.

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What's next

Diamondback's next quarterly report is the next dated test in the filing's timeline. If the next update shows narrower derivative losses and similar realized prices, that would support the view that the drag is temporary.

If realized prices weaken or derivative losses widen, the quarter would look less like an isolated hedge issue. Until then, this filing mainly sets a baseline for comparing the next report with the quarter ended September 30, 2026. Investors can compare the next report against the October 8 figures for oil, gas, NGLs, and derivative losses. That will show whether this quarter's hedge drag was a one-off or a pattern.