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Jun 30, 2021

Diamondback Q2 2021 Earnings Report

Announced financial and operating results for the second quarter ended June 30, 2021.

Key Takeaways

Diamondback Energy reported a strong second quarter, generating $578 million in Free Cash Flow with improved capital efficiency. The company is cutting its 2021 capital budget by $100 million due to cost control and volume outperformance.

Q2 2021 average production of 242.5 MBO/d (401.5 MBOE/d).

Generated Q2 2021 cash flow from operating activities of $954 million; Operating Cash Flow Before Working Capital Changes of $944 million, or $5.19 per diluted share.

Q2 2021 cash capital expenditures of $366 million.

Generated Q2 2021 Free Cash Flow of $578 million, or $3.18 per diluted share.

Total Revenue
$1.68B
Previous year: $425M
+295.5%
EPS
$2.4
Previous year: $0.15
+1500.0%
Daily combined volumes (BOE/d)
401.45K
Previous year: 294.13K
+36.5%
Cash flow from operations
$954M
Previous year: $324M
+194.4%
Operating Cash Flow
$944M
Previous year: $390M
+142.1%
Gross Profit
$997M
Previous year: -$113M
-982.3%
Cash and Equivalents
$344M
Previous year: $51M
+574.5%
Free Cash Flow
$578M
Total Assets
$22.3B
Previous year: $20.3B
+9.8%

Diamondback

Diamondback

Forward Guidance

Diamondback provided updated guidance for the full year 2021 and initiated third quarter production and capital guidance.

Positive Outlook

  • Increasing full year 2021 oil production guidance to 219 - 222 MBO/d (363 - 370 MBOE/d), up from 212 - 216 MBO/d (350 - 360 MBOE/d) previously.
  • Lowering full year 2021 cash CAPEX guidance to $1.525 - $1.625 billion, down 6% at the midpoint from $1.60 - $1.75 billion previously.
  • Initiating Q3 2021 oil production guidance of 233 - 239 MBO/d (388 - 398 MBOE/d); includes 15 - 17 MBO/d (25 - 29 MBOE/d) attributable to a full quarter of estimated net Q3 2021 Williston Basin production.
  • Initiating Q3 2021 Permian Basin oil production guidance of 218 - 222 MBO/d (363 - 370 MBOE/d).
  • Q3 2021 cash CAPEX guidance of $430 - $480 million.