MIDLAND, Texas - Diamondback (NASDAQ:FANG) Energy, Inc. (NASDAQ:FANG), an independent oil and natural gas company, announced its financial and operating results for the first quarter ended March 31, 2024.
The company reported a slight earnings beat with an adjusted EPS of $4.50, surpassing the analyst consensus by $0.04. Revenue for the quarter was robust at $2.22 billion, exceeding the consensus estimate of $2.1 billion.
Despite the positive earnings and revenue results, Diamondback Energy's stock experienced a modest decline of 1.25% following the announcement. This movement is below the threshold that typically indicates a strong market response, suggesting a measured reaction from investors to the quarter's financial outcomes.
The company's production averaged 273.3 thousand barrels of oil per day (MBO/d), contributing to an overall production of 461.1 thousand barrels of oil equivalent per day (MBOE/d). The operating cash flow before working capital changes was reported at $1.4 billion, with free cash flow reaching $791 million. Diamondback also declared a Q1 2024 base cash dividend of $0.90 per share and a variable cash dividend of $1.07 per share, both payable on May 22, 2024.
During the quarter, Diamondback drilled 69 gross wells in the Midland Basin and ten gross wells in the Delaware Basin, with 101 operated wells turned to production in the Midland Basin. The company's cash operating costs were $11.52 per BOE, including lease operating expenses of $6.08 per BOE.
The company's CEO commented on the results, stating, "Our strong operational performance and disciplined capital spending have yielded significant free cash flow, enabling us to reward our shareholders with dividends and share repurchases while maintaining a solid balance sheet."
Looking ahead, Diamondback has provided full-year guidance for 2024, including projections for the second quarter. The company anticipates net production to range between 458 and 466 MBOE/d, with oil production estimated between 270 and 275 MBO/d. For the second quarter of 2024, the company expects oil production to be between 271 and 275 MBO/d.
Diamondback's guidance for the second quarter of 2024 includes capital expenditures between $580 and $620 million. The company remains focused on generating value for its shareholders through efficient operations and strategic growth initiatives, including the announced merger with Endeavor Energy Resources, L.P., which is expected to close in the fourth quarter of 2024.
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