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Diamondback Energy: The Real Pressure Point Is $1000 Per Foot Barnett Costs!

Diamondback Energy’s fourth-quarter 2025 report highlights several developments shaping its operational and strategic outlook. A significant point of focus is the company’s expansion into the Barnett play, a recently acquired position which grew substantially without the need for capital raises or acquisitions. Management emphasized that the Barnett resource holds approximately 900 gross locations with encouraging well productivity, particularly regarding oil and gas volumes. Initial well economics show higher first-year cumulative production per lateral foot compared to the company’s Midland Basin core operations, although current drilling and completion costs remain elevated at approximately $1,000 per lateral foot, nearly double the Midland Basin’s $510–$520 range. The firm plans to reduce Barnett costs to about $800 per lateral foot via operational efficiencies such as multi-well pads, longer extended laterals targeting 15,000 feet, and continuous hydraulic fracturing techniques, which should enhance drilling and completion economics over time.