Diamondback Q2 2022 Earnings Report
Key Takeaways
Diamondback Energy, Inc. reported a record $1.3 billion in Free Cash Flow for Q2 2022, exceeding the previous quarter's record by 35%. The company used the cash to reduce net debt by 5% quarter over quarter, pay a total dividend of $3.05 per share, and repurchase over 2.3 million shares.
Average production of 221.1 MBO/d (380.5 MBOE/d).
Cash flow from operating activities of $1.7 billion; Operating Cash Flow Before Working Capital Changes of $1.8 billion.
Free Cash Flow of $1.3 billion.
Board approved a $2.0 billion increase to share repurchase program authorization to $4.0 billion from $2.0 billion previously.
Diamondback
Diamondback
Forward Guidance
Diamondback is raising the midpoints of both total and oil net production for the year due to the production outperformance seen year-to-date as well as the Company's confidence in its forward outlook. Diamondback is also increasing its lease operating expense guidance for the year primarily due to the realized and expected increase in the cost of power in Texas.
Positive Outlook
- Total net production – MBOE/d 374 - 380
- Oil production – MBO/d 220 - 222
- Gross horizontal wells drilled (net) 270 - 290 (248 - 267)
- Gross horizontal wells completed (net) 260 - 280 (240 - 258)
- Average lateral length (Ft.) ~10,200'
Challenges Ahead
- Lease operating expenses, including workovers $4.50 - $5.00
- 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