Diamondback Q1 2022 Earnings Report
Key Takeaways
Diamondback Energy, Inc. reported strong financial and operating results for the first quarter of 2022. The company achieved average production of 381.4 MBOE/d, generated $1,252 million in cash flow from operating activities, and $974 million in free cash flow. Diamondback also increased its annual base dividend by 17% and declared a variable cash dividend of $2.35 per share.
Average production of 222.8 MBO/d (381.4 MBOE/d).
Cash flow from operating activities of $1,252 million; Operating Cash Flow Before Working Capital Changes of $1,411 million.
Cash capital expenditures of $437 million.
Free Cash Flow of $974 million.
Diamondback
Diamondback
Forward Guidance
Diamondback's guidance for the full year 2022 includes second quarter production and capital guidance. As a result of the increase in commodity prices, Diamondback is increasing its expected cash tax rate to 10% - 15% of pre-tax income from 6% - 11% previously.
Positive Outlook
- Total net production – MBOE/d 369 - 376
- Oil production – MBO/d 218 - 222
- Q2 2022 oil production - MBO/d (total - MBOE/d) 218 - 222 (369 - 376)
- Gross horizontal wells drilled (net) 270 - 290 (248 - 267)
- Gross horizontal wells completed (net) 260 - 280 (240 - 258)
Challenges Ahead
- Lease operating expenses, including workovers $4.00 - $4.50
- Cash G&A $0.65 - $0.80
- Non-cash equity-based compensation $0.40 - $0.50
- DD&A $8.75 - $9.75
- Interest expense (net of interest income) $1.10 - $1.30