Diamondback Energy Raises Return of Free Cash Flow to Shareholders

The Diamondback Energy board approved an increase to its current commitment to return at least 50% of its free cash flow. The net effect will return 75% of the Permian Basin producer’s FCF during the second half of 2022.

Diamondback Energy Raises Return of Free Cash Flow to Shareholders

“We are excited by the enhanced capital return program, as it further emphasizes Diamondback’s commitment to shareholder returns and should be rewarded by the market,” Raymond James analyst John Freeman wrote in a note to investors. (Source: Hart Energy, Diamondback logo by Pavel Kapysh / Shutterstock.com)

Permian Basin pure play Diamondback Energy is ratcheting up its multifaceted approach to returning value to shareholders.

“This is a natural progression of our shareholder returns program that began with the initiation of our base dividend in 2018, which has been increased 500% since then and continues to deliver significant value to our stockholders,” said CEO Travis Stice in a statement. https://www.diamondbackenergy.com/news-releases/news-release-details/diamondback-energy-inc-announces-further-enhancement-its-capital

Diamondback announced on June 21 a board of directors’ decision to increase its current commitment to return at least 50% of its free cash flow (FCF). The net effect will return 75% of the Midland, Texas-based oil and gas producer’s FCF during the second half of the year.

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