Summary
Diamondback Energy, Inc. (FANG) reported strong performance for the nine months ended September 30, 2018, driven by significant production growth and higher commodity prices. Revenues surged by 89% year-over-year to $1.5 billion, reflecting a 38,175 BOE/d increase in average daily production. This operational success was bolstered by strategic acquisitions, including the Ajax Resources deal and the pending merger with Energen Corporation, which is set to substantially expand the company's acreage and drilling locations in the Permian Basin. The company is actively managing its capital expenditures, with a 2018 budget focused on drilling and completion activities. Despite increased operating expenses and interest costs related to growth and acquisitions, Diamondback maintained strong operating cash flow of $1.2 billion for the period. The company also secured additional transportation agreements and strengthened its balance sheet through senior note offerings and credit facility adjustments, positioning itself for continued growth.
Financial Highlights
42 data points| Revenue | $538.03M |
| SG&A Expenses | $14.00M |
| Operating Expenses | $269.00M |
| Operating Income | $268.00M |
| Net Income | $157.00M |
| EPS (Basic) | $1.59 |
| EPS (Diluted) | $1.59 |
| Shares Outstanding (Basic) | 98.64M |
| Shares Outstanding (Diluted) | 98.82M |
Key Highlights
- 1Revenue increased significantly by 89% to $1.5 billion for the nine months ended September 30, 2018, compared to the same period in 2017, driven by higher production volumes and commodity prices.
- 2Average daily production grew by 51% to 112,799 BOE/d for the first nine months of 2018, highlighting strong operational execution and asset development.
- 3The company completed strategic acquisitions, including Ajax Resources for $900 million and ExL Petroleum/EnergyQuest II for $312.5 million, expanding its Permian Basin footprint.
- 4A pending merger with Energen Corporation, valued at approximately $9.2 billion, was announced, which is expected to significantly increase Diamondback's acreage and drilling locations.
- 5Net cash provided by operating activities reached $1.2 billion for the nine months ended September 30, 2018, demonstrating robust cash generation capabilities.
- 6Diamondback secured firm oil transportation agreements out of the Midland Basin, mitigating potential transportation constraints and ensuring market access.
- 7The company's 2018 capital budget was increased to $1.5 billion - $1.6 billion, with a focus on drilling and completion activities, reflecting confidence in future growth.