•
Sep 30, 2024

Diamondback Q3 2024 Earnings Report

Diamondback's financial performance was marked by strong production and strategic capital allocation.

Key Takeaways

Diamondback Energy, Inc. reported net income of $659 million, or $3.19 per diluted share, and net cash provided by operating activities of $1.2 billion for the third quarter of 2024. The company closed its merger with Endeavor Energy Resources, repurchased shares, and announced a trade agreement with TRP Energy.

Closed merger with Endeavor Energy Resources on September 10, 2024.

Average production of 571.1 MBOE/d.

Net cash provided by operating activities of $1.2 billion.

Repurchased 2,919,763 shares of common stock for $515 million.

Total Revenue
$2.65B
Previous year: $2.34B
+13.0%
EPS
$3.38
Previous year: $5.49
-38.4%
Daily combined volumes (BOE/d)
571.1K
Previous year: 452.8K
+26.1%
Cash flow from operations
$1.2B
Previous year: $1.4B
-14.3%
Operating Cash Flow
$1.4B
Previous year: $1.5B
-6.7%
Gross Profit
$2.36B
Previous year: $2.18B
+8.3%
Cash and Equivalents
$370M
Previous year: $827M
-55.3%
Free Cash Flow
$708M
Previous year: $820M
-13.7%
Total Assets
$65.7B
Previous year: $28B
+134.4%

Diamondback

Diamondback

Forward Guidance

Diamondback provided updated guidance for the full year 2024, incorporating the Endeavor merger completed on September 10, 2024.

Positive Outlook

  • Net production is expected to be 587 - 590 MBOE/d.
  • Oil production is projected to be 335 - 337 MBO/d.
  • Q4 oil production is anticipated to be 470 - 475 MBO/d.
  • Gathering, processing and transportation costs are estimated at $1.60 - $1.80 per BOE.
  • Gross horizontal wells drilled (net) in Q4 are forecasted to be 105 - 125.

Challenges Ahead

  • Total capital expenditures are projected to be $2,875 - $3,000 million.
  • Q4 capital expenditures are expected to be $950 - $1,050 million.
  • Cash taxes are estimated to be $240 - $300 million.
  • Corporate tax rate is projected at approximately 23% of pre-tax income.
  • DD&A is expected to be $14.00 - $15.00 per BOE.