Early Access

10-QPeriod: Q2 FY2023

Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 3, 2023For Securities:FANG

Summary

Diamondback Energy, Inc. (FANG) reported its second-quarter 2023 financial results, showcasing a robust operational performance despite a challenging commodity price environment. The company generated $1.92 billion in total revenues for the quarter, with net income attributable to common stockholders reaching $556 million, or $3.05 per diluted share. This demonstrates strong profitability driven by effective cost management and strategic operational execution in the Permian Basin. Financially, Diamondback Energy maintained a solid balance sheet with total assets of $27.6 billion. The company actively returned capital to shareholders by increasing its annual base dividend to $3.36 per share and repurchasing approximately $321 million of its common stock during the quarter. Furthermore, Diamondback Energy successfully executed on its divestiture strategy, exceeding its non-core asset sale target and generating significant proceeds that were used for debt reduction and general corporate purposes, indicating a focus on optimizing its asset portfolio and enhancing financial flexibility.

Financial Statements
Beta
Revenue$1.92B
SG&A Expenses$37.00M
Operating Expenses$919.00M
Operating Income$1.00B
Net Income$556.00M
EPS (Basic)$3.05
EPS (Diluted)$3.05
Shares Outstanding (Basic)180.37M
Shares Outstanding (Diluted)180.37M

Key Highlights

  • 1Net income attributable to Diamondback Energy, Inc. was $556 million ($3.05 per diluted share) for Q2 2023, down from $1.42 billion ($7.93 per diluted share) in Q2 2022, reflecting lower commodity prices.
  • 2Total revenues for Q2 2023 were $1.92 billion, a decrease from $2.77 billion in Q2 2022, driven by lower oil and natural gas sales prices.
  • 3The company's cash operating costs were $10.66 per BOE for Q2 2023, showing efficient cost management.
  • 4Diamondback Energy increased its annual base dividend to $3.36 per share and declared a Q2 2023 dividend of $0.84 per share, demonstrating a commitment to returning capital to shareholders.
  • 5Significant share repurchases were made, totaling $321 million in Q2 2023, with approximately $1.8 billion remaining under the repurchase program.
  • 6The company divested non-core assets for $275 million in Q2 2023, exceeding its divestiture target and utilizing proceeds for debt reduction.
  • 7Production for Q2 2023 averaged 449.9 MBOE/d, with 89 gross operated wells turned to production.

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