Published: December 22, 2025 |

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Diamondback Energy on Monday beat estimates for quarterly profit and said it would sell its subsidiary Viper Energy’s non-Permian assets for $670 million to an affiliate of GRP Energy Capital and Warwick Capital Partners.

U.S. shale producers are turning to asset sales as shareholders increasingly favor disciplined spending and steady returns over rapid growth in an uncertain oil market.

The transaction, set to close in the first quarter of 2026, is expected to bring Diamondback closer to achieving its target of raising $1.5 billion from divestitures and reduce debt.

Last month, Diamondback sold its Environmental Disposal Systems for $694 million and divested its stake in pipeline operator EPIC Crude Holdings for $504 million.

Viper Energy in June acquired Sitio Royalties in an all-stock deal valued at about $4.1 billion, to expand its presence across top U.S. oilfields including the Permian Basin.

Diamondback’s total output jumped over 65 percent to 942,946 barrels of oil equivalent per day (boepd) in the third quarter.

However, CEO Kaes Van’t Hof said in the current macro environment he believed there was no need for incremental oil barrels until there is a proper price signal.

Van’t Hof said he would keep oil volumes roughly flat and focus on maximizing free cash flow to pay dividends, buy back shares and reduce debt.

The producer raised its annual production forecast by 2 percent to 910,000 to 920,000 boepd.

Source: Reuters

Viper Energy is a corporation formed by Diamondback Energy to own, acquire, and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin.

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