Companies /Energy

Diamondback Energy Inc

NASDAQ: FANG Oil & Gas E&p
$197.77
▼ $2.75 (−1.37%) today
Markets open · 2:54pm ET

Q2 2024 Earnings

Reported Aug 5, 2024, 4:06pm ET · SEC source
$4.52
Beat +0.22%
EPS · est. $4.51
$2.5B
Beat +13.69%
Revenue · est. $2.2B
−8.8%
Trailing market
FANG vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
0+2%+4%Aug 5Aug 6report 4:06pm ETearnings+0.5%+2.6%
0+2%+4%Aug 5Aug 6earnings+0.5%+2.6%
FANG +2.6%S&P 500 +0.5%
0+2%+4%Aug 5Aug 6report 4:06pm ETearnings+0.2%+2.6%
0+2%+4%Aug 5Aug 6earnings+0.2%+2.6%
FANG +2.6%NASDAQ +0.2%
0+4%+8%Aug 5Aug 13report 4:06pm ETearnings+4.2%+5.5%
0+4%+8%Aug 5Aug 13earnings+4.2%+5.5%
FANG +5.5%S&P 500 +4.2%
−4%0+4%+8%Aug 5Aug 13report 4:06pm ETearnings+5.4%+5.5%
−4%0+4%+8%Aug 5Aug 13earnings+5.4%+5.5%
FANG +5.5%NASDAQ +5.4%
+2.44%
Day of report
+0.89%
Next session
+3.39%
One week
−5.26%
30 days

S&P 500 over the same 30 days: +3.49%.

Did FANG Beat Earnings? Q2 2024 Results

Diamondback Energy posted a near-clean beat in Q2 2024, with adjusted earnings per share of $4.52 edging past the $4.51 consensus estimate while revenue of $2.48 billion cleared expectations by 13.69%, rising 29.4% year over year as higher realized oil prices of $79.51 per barrel versus $71.33 a year earlier padded results. The standout driver behind the quarter was operational efficiency, with Diamondback drilling and completing wells faster than at the start of the year, allowing the company to trim its rig count from 12 to 10 and reduce frac crews from four to three while still exceeding its oil production guidance of 271 to 275 MBO per day with an actual output of 276.1 MBO per day. Free cash flow reached $816.00 million, supporting $421.00 million in shareholder returns. Looking ahead, management raised full-year production guidance to 273 to 276 MBO per day and lowered capital expenditure guidance to $2.35 to $2.45 billion, with the pending Endeavor Energy merger expected to close in Q3 or Q4 2024.

Key Takeaways
  • Higher realized oil prices of $79.51/bbl vs $71.33/bbl in Q2 2023
  • Oil production of 276.1 MBO/d above high end of guidance range
  • Drilling efficiency improvements averaging ~10% faster than beginning of year
  • Completion rate increased to nearly 100 wells per crew per year from original budget of 80
  • Lower lease operating expenses of $5.88/BOE vs guidance of $6.00-$6.50/BOE
  • Free Cash Flow generation of $816 million

“Diamondback built significant momentum in the first half of the year. As a result of our first and second quarter performance, we are increasing our full year production guidance and lowering our annual capex guidance. Our operations team has done an incredible job of focusing on what we do best: lowering costs and generating additional efficiencies in the field, truly differentiating Diamondback as we convert rock into cash flow.”

Diamondback Energy CEO, on the earnings call

Forward Guidance & Outlook

Diamondback raised its full-year 2024 oil production guidance to 273–276 MBO/d (from 270–275 MBO/d) and total production guidance to 462–470 MBOE/d (from 458–466 MBOE/d), reflecting first-half outperformance. Q3 2024 oil production is guided at 271–275 MBO/d. Full-year capital expenditures were lowered to $2.35–$2.45 billion (from $2.30–$2.55 billion), with Q3 capex guided at $570–$610 million. LOE guidance was lowered to $5.90–$6.40/BOE. The company increased gross wells drilled guidance to 275–290 and completed to 310–330 for the full year. The Endeavor merger is expected to close in Q3 or Q4 2024, and post-close the company targets reducing pro forma net debt below $10 billion near-term, with a longer-term target of ~$6–$8 billion.

FANG YoY Financials

Q2 2024 vs Q2 2023 · SEC filings Q2 2023 Q2 2024
$0$700.0M$1.4B$2.1B$1.9B$2.5BRevenue$1.0B$1.2BOperating Income$556.0M$837.0MNet Income
$0$700.0M$1.4B$2.1BRevenueOperating IncomeNet Income

FANG Revenue by Segment

Oil$2.0B
Purchased Oil Sales$300.0M
Natural Gas Liquids$171.0M
Natural Gas$5.0M

Figures from SEC filings and company reports. Not investment advice.