Diamondback Energy is an independent oil and gas producer focused almost entirely on the Permian Basin in West Texas and New Mexico. Diamondback drills and completes horizontal wells targeting oil-rich shale formations — primarily the Spraberry and Wolfcamp zones in the Midland Basin, which accounts for roughly 89% of production. Diamondback makes money by selling crude oil, NGLs, and natural gas at market prices; oil is the primary value driver, representing over half of production volumes. The business model hinges on commodity prices, well productivity, and well costs — Diamondback's drilling and completion costs of roughly $510–$550 per lateral foot are among the lowest in the Permian, which management views as the company's core competitive advantage. Diamondback also owns roughly 42% of Viper Energy, a publicly traded subsidiary that holds mineral and royalty interests across the Permian Basin, generating high-margin royalty income without bearing drilling capital costs. Viper's mineral interest ownership also gives Diamondback access to private, well-level production data across competitor acreage. Diamondback has historically grown through acquiring Permian acreage from private operators, including the ~$26B Endeavor acquisition and ~$3.1B Double Eagle deal. Operationally, Diamondback pursues longer laterals, simultaneous multi-zone development, and efficiency improvements in completion crews to sustain capital efficiency. The company targets returning at least 50% of free cash flow to shareholders via a base dividend and buybacks, with the remainder directed to debt reduction.