Diamondback Energy misses Q1 earnings estimates on lower oil prices
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Diamondback Energy (NASDAQ:FANG) -1.9% post-market after missing Q1 adjusted earnings expectations, weighed by crude oil prices that fell sharply from the prior-year quarter.
Q1 net income fell to $712M, or $3.88/share, from $779M, or $4.35/share, in the year-earlier quarter, while revenues fell 20% Y/Y to $1.92B.
Q1 production averaged 425K boe/day, up 11% from 381.2K boe/day a year ago, while average costs rose to $11.61/boe from $11.36/boe a year earlier and $10.16 in Q4 2022.
Diamondback (FANG) said its total average unhedged realized prices for the quarter fell 29% Y/Y to $49.72/boe, including $73.11/bbl of oil, $1.46/Mcf of natural gas and $23.16/bbl of natural gas liquids, from $69.60/boe a year ago.
Q1 oil realizations were slightly lower than prior quarters at 96% of WTI, and gas realizations also were weaker than expected and hit by one-time items, but Diamondback (FANG) expects unhedged realizations to normalize around Waha less $0.60-$0.80/Mcf; the company said it expects periodic continued price weakness at the Waha pricing hub through 2024, and have hedged most of its price exposure.
For the full year, Diamondback (FANG) guided for production of 430K-440K boe/day on total capital spending of $2.5B-$2.7B, with 293-311 net horizontal wells drilled.
Also, Viper Energy Partners (VNOM) said it set a record for oil production in Q1 for the fourth consecutive quarter at 20.1K bbl/day, up 11% Y/Y, and raised full-year production guidance to 20.5K-22.5K bbl/day, up 2.4% at the midpoint.
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