Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Diamondback Energy, Inc. (FANG) reported its first quarter 2023 financial results, showcasing solid operational performance despite a decrease in revenue compared to the prior year, largely driven by lower commodity prices. Net income for the quarter was $712 million, or $3.88 per diluted share, reflecting strong operational execution. The company continued its capital allocation strategy by increasing its annual base dividend to $3.20 per share and repurchasing $332 million of its common stock. Diamondback also made significant strategic moves, including closing the Lario Acquisition in January 2023, which expanded its acreage position in the Permian Basin. Liquidity remains robust, with approximately $1.0 billion in available capacity under its credit facilities as of March 31, 2023, positioning the company to navigate the current commodity price environment and execute its growth strategy.

Key Highlights

• 1Net income attributable to Diamondback Energy, Inc. was $712 million, or $3.88 per diluted share, for the three months ended March 31, 2023.
• 2Total revenues decreased by 20% year-over-year to $1.9 billion, primarily due to lower average prices for oil, natural gas, and natural gas liquids.
• 3The company increased its annual base dividend to $3.20 per share and paid $542 million in dividends during the quarter.
• 4Diamondback repurchased $332 million of its common stock under its existing repurchase program, with approximately $2.1 billion remaining available as of March 31, 2023.
• 5The Lario Acquisition closed on January 31, 2023, adding approximately 16,000 net acres in the Midland Basin.
• 6Capital expenditures, excluding acquisitions, were $657 million for the quarter.
• 7The company maintained compliance with all financial covenants under its credit agreements.

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