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Mar 31, 2024
Diamondback Q1 2024 Earnings Report
Diamondback Energy's financial performance remained strong, driven by robust production and effective capital management.
Key Takeaways
Diamondback Energy, Inc. reported a net income of $768 million, or $4.28 per diluted share, and an adjusted net income of $809 million, or $4.50 per diluted share, for the first quarter of 2024. The company achieved average production of 461.1 MBOE/d and generated $1.3 billion in net cash from operating activities. Diamondback also announced a merger with Endeavor Energy Resources, L.P., expected to close in the fourth quarter of 2024.
Average production reached 461.1 MBOE/d.
Net cash provided by operating activities was $1.3 billion.
Cash capital expenditures totaled $609 million.
Free cash flow amounted to $791 million.
Diamondback
Diamondback
Forward Guidance
Diamondback provided full year 2024 guidance for production, unit costs, cash taxes, and capital expenditures, including second quarter specific estimates.
Positive Outlook
- Net production is expected to be between 458 and 466 MBOE/d.
- Oil production is projected to range from 270 to 275 MBO/d.
- Lease operating expenses are estimated at $6.00 to $6.50 per BOE.
- Cash G&A expenses are anticipated to be $0.55 to $0.65 per BOE.
- The average completed lateral length is expected to be approximately 11,500 feet.
Challenges Ahead
- The corporate tax rate is projected to be 23% of pre-tax income.
- The cash tax rate is expected to be 15% to 18% of pre-tax income.
- Q2 2024 cash taxes are estimated between $180 and $220 million.
- Total capital expenditures for 2024 are forecasted to be $2.3 to $2.55 billion.
- FY 2024 Delaware Basin well costs per lateral foot are estimated at $875 - $925.