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Jun 30, 2023

Diamondback Q2 2023 Earnings Report

Announced second quarter 2023 financial and operating results.

Key Takeaways

Diamondback Energy reported a net income of $556 million, or $3.05 per diluted share, and adjusted net income of $669 million, or $3.68 per diluted share, for the second quarter of 2023. The company's net cash provided by operating activities was $1.51 billion, with free cash flow of $547 million.

Average production of 263.1 MBO/d (449.9 MBOE/d)

Net cash provided by operating activities of $1.51 billion

Cash capital expenditures of $711 million

Free Cash Flow of $547 million

Total Revenue
$1.92B
Previous year: $2.77B
-30.7%
EPS
$3.68
Previous year: $7.07
-47.9%
Daily combined volumes (BOE/d)
449.9K
Previous year: 380.45K
+18.3%
Cash flow from operations
$1.51B
Previous year: $1.71B
-11.5%
Operating Cash Flow
$1.26B
Previous year: $1.79B
-29.5%
Gross Profit
$1.05B
Previous year: $2.02B
-48.0%
Cash and Equivalents
$18M
Previous year: $43M
-58.1%
Free Cash Flow
$547M
Previous year: $1.3B
-57.9%
Total Assets
$27.6B
Previous year: $23.4B
+17.7%

Diamondback

Diamondback

Forward Guidance

Diamondback is raising the midpoints of both total and net oil production for the full year 2023 due to production outperformance year-to-date as well as narrowing unit costs, capital expenditures and activity levels due to increased confidence in its forward outlook.

Positive Outlook

  • Net production - MBOE/d 435 - 445
  • Oil production - MBO/d 260 - 262
  • Lease operating expenses $4.90 - $5.40
  • Cash G&A $0.60 - $0.75
  • Drilling, completion, capital workovers, and non-operated properties $2,330 - $2,365

Challenges Ahead

  • Non-cash equity-based compensation $0.35 - $0.45
  • DD&A $10.00 - $10.75
  • Interest expense (net of interest income) $1.20 - $1.30
  • Gathering and transportation $1.80 - $2.00
  • Corporate tax rate 23%