Summary
Diamondback Energy, Inc. (FANG) reported strong financial and operational performance for the third quarter and first nine months of 2019. Revenue significantly increased year-over-year, driven by substantial growth in oil and natural gas production volumes, despite slightly lower average commodity prices. The company demonstrated effective cost management, with lease operating expenses and production taxes per BOE showing favorable trends or improvements. Significant investments were made in capital expenditures, primarily focused on drilling and completion activities in the Permian Basin, which are expected to drive continued production growth. Diamondback also returned capital to shareholders through dividends and a substantial share repurchase program, underscoring a commitment to shareholder value.
Financial Highlights
43 data points| Revenue | $975.00M |
| SG&A Expenses | $19.00M |
| Operating Expenses | $626.00M |
| Operating Income | $349.00M |
| Net Income | $368.00M |
| EPS (Basic) | $2.27 |
| EPS (Diluted) | $2.26 |
| Shares Outstanding (Basic) | 162.54M |
| Shares Outstanding (Diluted) | 162.78M |
Key Highlights
- 1Total revenues increased by 82% to $975 million for the three months ended September 30, 2019, compared to $537 million in the prior year period, driven by higher production volumes.
- 2Net income attributable to Diamondback Energy, Inc. rose to $368 million ($2.26 per diluted share) for the third quarter of 2019, up from $157 million ($1.59 per diluted share) in the same period of 2018.
- 3Capital expenditures for the nine months ended September 30, 2019, were $2.74 billion, primarily focused on drilling and completion activities ($1.88 billion) and acquisitions of leasehold and mineral interests.
- 4The company's share repurchase program remained active, with $400 million repurchased during the first nine months of 2019, and $1.6 billion available under the program as of September 30, 2019.
- 5Diamondback Energy generated strong operating cash flow of $1.85 billion for the first nine months of 2019, a significant increase from $1.15 billion in the comparable period of 2018.
- 6The company declared a cash dividend of $0.1875 per share for the third quarter of 2019, demonstrating a commitment to returning capital to shareholders.
- 7The midstream segment, primarily through Rattler Midstream LP, contributed positively, with total revenues from midstream services showing an increase and total assets for this segment growing significantly.