Summary
Diamondback Energy, Inc. (FANG) reported its financial results for the third quarter and nine months ended September 29, 2023. The company demonstrated solid operational performance, with revenues for the nine months decreasing to $6.1 billion from $7.6 billion in the prior year, primarily due to lower commodity prices, though production volumes increased by 15% year-over-year, driven by acquisitions. Net income for the nine months was $2.3 billion, down from $3.5 billion in the same period last year. The company continued its commitment to returning capital to shareholders, increasing its annual base dividend and repurchasing shares. Diamondback also actively managed its asset portfolio through strategic divestitures and acquisitions, including a joint venture for water assets and the acquisition of Lario Permian. The company maintained a strong liquidity position with substantial cash and an undrawn credit facility.
Financial Highlights
45 data points| Revenue | $2.34B |
| SG&A Expenses | $34.00M |
| Operating Expenses | $1.00B |
| Operating Income | $1.34B |
| Net Income | $915.00M |
| EPS (Basic) | $5.07 |
| EPS (Diluted) | $5.07 |
| Shares Outstanding (Basic) | 178.87M |
| Shares Outstanding (Diluted) | 178.87M |
Key Highlights
- 1Net income for the nine months ended September 30, 2023, was $2.3 billion, a decrease from $3.5 billion in the prior year, primarily due to lower average commodity prices.
- 2Total revenues for the nine months decreased to $6.1 billion from $7.6 billion in 2022, driven by lower oil, natural gas, and natural gas liquid prices, partially offset by a 15% increase in production volumes.
- 3The company increased its annual base dividend to $3.36 per share and paid dividends totaling $149 million in Q3 2023, along with declaring a combined base and variable dividend of $3.37 per share for Q4 2023.
- 4Diamondback repurchased $56 million of its common stock during the third quarter, with approximately $1.8 billion remaining under its authorized repurchase program.
- 5The company generated $4.3 billion in cash flow from operating activities for the nine months ended September 30, 2023.
- 6Significant asset management activities included the formation of a joint venture for water assets (Deep Blue) and divestitures of non-core assets, generating approximately $1.7 billion in gross proceeds.
- 7Capital expenditures for the nine months were $2.05 billion for drilling and completions, supporting a production growth strategy.