What's Going On With Diamondback Energy Shares Premarket Wednesday?

Diamondback Energy, Inc. FANG reported first-quarter FY24 revenue of $2.227 billion, beating the consensus of $2.088 billion.

Average daily oil volume production stood at 273.3 MBO/d, which was at the high end of the quarterly guidance range of 270 – 274 MBO/d.

Daily combined volumes came in at 461.1 MBOE/d in the quarter. The company’s average unhedged realized prices stood at $75.06 per barrel of oil, $0.99 per Mcf of natural gas, and $21.26 per barrel of natural gas liquids (NGLs), resulting in a total unhedged realized price of $50.07 per BOE.

Cash operating costs were $11.52 per BOE vs. $11.61 per BOE the year-ago quarter. Oil realizations remained relatively flat Q/Q at 98% of West Texas Intermediate (WTI) pricing in the quarter. 

In the quarter, Diamondback drilled 69 gross wells in the Midland Basin and 10 gross wells in the Delaware Basin. The company turned 101 operated wells to production, all in the Midland Basin, with an average lateral length of 11,463 feet. 

Adjusted EBITDA was $1.6 billion compared to $1.4 billion in the prior quarter. Adjusted EPS of $4.50 surpassed the estimate of $4.42.

Operating cash flow stood at $1.3 billion, and cash capital expenditures of $609 million in the quarter.

As of March-end, the company had cash of $876 million, with approximately $1.6 billion available for future borrowings under its revolving credit facility and approximately $2.5 billion of total liquidity. 

Dividend: Diamondback declared a first quarter base cash dividend of $0.90 per share and a variable cash dividend of $1.07 per share, both payable on May 22 to stockholders of record as of May 15.

Repurchase: In the quarter, Diamondback repurchased 279,266 common shares for around $42 million, excluding excise tax. 

To date, the company has repurchased 19.3 million shares for about $2.4 billion and has roughly $1.6 billion remaining on its current share buyback authorization.

Outlook: Diamondback Energy reiterated FY24 oil production of between 270 and 275 MBO/D and cash capital expenditures of $2.30 billion-$2.55 billion.

For second-quarter, the company expects oil production of 271 – 275 MBO/D and cash capital expenditures of $580 million – $620 million.

The company expects to realize at least 95% of WTI when WTI is at least $65 per barrel, with most quarters (like the first quarter) above that number.

Investors can gain exposure to the stock via Texas Capital Funds Trust Texas Capital Texas Oil Index ETF OILT and TCW Transform Systems ETF NETZ.

Price Action: FANG shares are down 1.06% at $199.00 premarket at the last check Wednesday.