Diamondback Q3 2021 Earnings Report
Key Takeaways
Diamondback Energy, Inc. announced its Q3 2021 financial and operating results, featuring average production of 404.3 MBOE/d, cash flow from operating activities of $1,199 million, and free cash flow of $740 million. The company is increasing its annual dividend by 11.1% and has committed to returning 50% of free cash flow to stockholders beginning in Q4 2021.
Average production of 404.3 MBOE/d.
Cash flow from operating activities reached $1,199 million.
Free cash flow was a record $740 million.
Committed to return 50% of Free Cash Flow to stockholders beginning in Q4 2021.
Diamondback
Diamondback
Forward Guidance
Diamondback provided full year 2021 oil production guidance of 222 - 223 MBO/d (370 - 372 MBOE/d). Lowering full year 2021 cash CAPEX guidance to $1.49 - $1.53 billion. Initiating Q4 2021 oil production guidance of 221 - 225 MBO/d (368 - 375 MBOE/d) and Q4 2021 cash CAPEX guidance of $435 - $475 million.
Positive Outlook
- Full year 2021 oil production guidance increased to 222 - 223 MBO/d (370 - 372 MBOE/d).
- Full year 2021 cash CAPEX guidance lowered to $1.49 - $1.53 billion.
- Q4 2021 oil production guidance initiated at 221 - 225 MBO/d (368 - 375 MBOE/d).
- Q4 2021 Permian Basin oil production guidance initiated at 218 - 222 MBO/d (363 - 370 MBOE/d).
- Diamondback believes it can maintain Q4 2021 Permian Basin oil production through full year 2022 assuming Q4 2021's run rate CAPEX spend
Challenges Ahead
- Still seeing excess oil supply and varying demand recovery profiles across the globe.
- Inflationary pressures seen on well costs.
- Committing to maintaining our fourth quarter 2021 Permian oil volumes throughout next year.
- Expect to distribute 50% of quarterly Free Cash Flow beginning with the fourth quarter’s performance.
- Expect to be in a position to maximize Free Cash Flow, grow our dividend, further pay down debt and overall return more capital to stockholders.