Revenue during the quarter grew 26.96 percent to $142.13 million from $111.95 million in the previous year period. Gross margin for the quarter expanded 372 basis points over the previous year period to 82.39 percent.

Operating income for the quarter was $6.69 million, compared with an operating loss of $254.77 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $102.24 million compared with $109.87 million in the prior year period. At the same time, adjusted EBITDA margin contracted 2621 basis points in the quarter to 71.94 percent from 98.15 percent in the last year period.

"Our strong financial performance during the third quarter reflects our ability to execute and achieve accretive growth for our shareholders. Our disciplined strategy during the first half of 2016 allowed us to maintain our financial flexibility and maximize the value of our world class resource. In doing so, we were able to respond quickly when commodity prices improved and are now just beginning to bear the fruit of our activity ramp. We recently added a fifth rig to the Midland Basin and plan to add a sixth rig to begin developing our Southern Delaware Basin acreage in the coming months," stated Travis Stice, chief executive officer of Diamondback.