Diamondback Energy's Q2 profit, revenues drop on weaker oil and gas prices
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Diamondback Energy (NASDAQ:FANG) -1.7% post-market Monday after reporting Q2 adjusted earnings that missed expectations while revenues fell 30% Y/Y to $1.92B, as energy prices fell from a year ago.
Q2 net income fell 60% Y/Y to $556M, or $3.05/share, from $1.42B, or $7.93/share, in the year-earlier quarter.
Diamondback (FANG) said Q2 production averaged 449.9K boe/day, as it drilled 86 gross wells in the Midland Basin and 12 gross wells in the Delaware Basin during the quarter, while its total average unhedged realized prices were $46.31/boe, well below last year's $79.49/boe.
Citing production outperformance so far this year as well as narrowing unit costs, Diamondback (FANG) said it raised guidance for full-year total production to 435K-445K boe/day from 430K-440K boe/day previously and for full-year oil production to 260K-262K bbl/day from its prior outlook for 256K-262K bbl/day.
The company also narrowed its full-year capital spending guidance to $2.6B-$2.675B from $2.5B-$2.7B previously, including $650M-$700M in Q3.
Diamondback (FANG) said it returned $473M of capital from stock repurchases and dividend to shareholders in Q2, representing 86% of the quarter's free cash flow.
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