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Dec 31, 2023
Diamondback Q4 2023 Earnings Report
Diamondback's financial performance remained strong, driven by robust production and efficient capital management.
Key Takeaways
Diamondback Energy, Inc. reported strong financial and operating results for Q4 2023, including average production of 462.6 MBOE/d, net income of $960 million, and free cash flow of $910 million. The company increased its annual base dividend by 7% and repurchased shares of common stock, demonstrating its commitment to returning capital to shareholders.
Average production reached 462.6 MBOE/d.
Net cash provided by operating activities totaled $1.6 billion.
Free cash flow was $910 million.
The company repurchased 872,667 shares for $129 million.
Diamondback
Diamondback
Forward Guidance
Diamondback provided guidance for the full year 2024, including production and capital expenditure estimates.
Positive Outlook
- Full year 2024 oil production guidance of 270 - 275 MBO/d (458 - 466 MBOE/d)
- Full year 2024 cash capital expenditures guidance of $2.30 - $2.55 billion
- Expects to drill between 265 - 285 gross (244 - 263 net) wells and complete between 300 - 320 gross (273 - 291 net) wells with an average lateral length of approximately 11,500 feet in 2024
- Q1 2024 oil production guidance of 270 - 274 MBO/d (458 - 464 MBOE/d)
- Q1 2024 cash capital expenditures guidance of $580 - $620 million
Challenges Ahead
- Corporate tax rate (% of pre-tax income) of 23%
- Cash tax rate (% of pre-tax income) of 15% - 18%
- Midland Basin net lateral feet (%) ~90%
- Delaware Basin net lateral feet (%) ~10%
- Gathering, processing and transportation $1.80 - $2.00