Diamondback Energy, Inc.’s (FANG) president recently demanded an explanation from the Trump administration over escalating tariffs and their impact on the U.S. shale industry. The company took the matter directly to social media and publicly called for clarification from the U.S. Energy Secretary, Chris Wright. It demanded an explanation of how the immense contribution of the shale industry to the U.S. economy aligns with the recent tariffs and the ongoing trade war.A FANG representative emphasized the impo ...

Diamondback Energy Inc. (FANG) recently completed its $4.1 billion deal to acquire Double Eagle IV, an energy company backed by EnCap Investments. This deal, which was first announced on Feb. 18, has given FANG a major boost in its operations in the Midland Basin. The transaction involved $3 billion in cash and about 6.9 million shares of FANG stock, increasing its portfolio significantly in one of the most productive oil areas in the United States. Details of the Deal: Financials and StrategyThe billion-do ...

MIDLAND, Texas, April 01, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) ("Diamondback" or "the Company") today announced that it has completed its previously announced acquisition of certain subsidiaries of Double Eagle IV Midco, LLC ("Double Eagle"). About Diamondback In light of these factors, the events anticipated by Diamondback's forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing enviro ...

It has been about a month since the last earnings report for Diamondback Energy (FANG) . Shares have added about 6.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Diamondback due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.How Have Estimates Been Moving Since Then ...

MIDLAND, Texas, March 19, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it plans to release first quarter 2025 financial results on May 5, 2025 after the market closes. In connection with the earnings release, Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2025 on Tuesday, May 6, 2025 at 8:00 a.m. CT. Access to the live webcast, and replay which will be available following ...

Diamondback Energy (FANG) ended the recent trading session at $142.70, demonstrating a -1.61% swing from the preceding day's closing price. This change lagged the S&P 500's 1.12% gain on the day. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 1.46%.The energy exploration and production company's stock has dropped by 12.78% in the past month, falling short of the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13%.Market participants will be closely foll ...

U.S. energy operator Diamondback Energy (FANG) reported fourth-quarter 2024 adjusted earnings per share of $3.64, which beat the Zacks Consensus Estimate of $3.26 on strong production and lower costs.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.However, the company’s bottom line fell sharply from the year-ago adjusted profit of $4.74. The underperformance primarily reflects a fall in overall realization.Meanwhile, revenues of $3.7 billion rose 67% from the year-ago quarter’s sales ...

Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Production and Drilling Activity - For the year ended December 31, 2024, total oil production was 123,325 MBbls, an increase from 96,176 MBbls in 2023, representing a growth of 28.3%[67] - The company drilled a total of 372 operated horizontal wells in 2024, compared to 350 in 2023, indicating a 6.3% increase in drilling activity[68] - The company completed 410 operated horizontal wells in 2024, an increase from 315 in 2023, representing a growth of 30.2%[68] - The company has approximately 9,188 gross (7,130 net) identified economic potential horizontal drilling locations based on an assumed price of $50.00 per Bbl WTI[64] - As of December 31, 2024, the company owned an interest in 30,928 gross productive wells, with an average working interest of 77%[69] - Only 1,381 of the identified drilling locations were attributed to proved reserves, indicating a significant portion of growth strategy relies on speculative drilling[188] - Approximately 33% of the total estimated proved reserves as of December 31, 2024, were proved undeveloped reserves, which may require significant capital expenditures for development[199] Financial Performance and Projections - Average oil price for 2024 was $73.52 per Bbl, down from $75.68 in 2023, reflecting a decrease of 2.5%[67] - The average production cost per BOE for 2024 was $7.50, up from $7.10 in 2023, marking a 5.6% increase[67] - In 2024, the company's total capital expenditures were approximately $2.9 billion, with a projected increase to between $3.80 billion and $4.20 billion in 2025, representing a 40% increase[177] - The company expects to increase production levels in 2025 due to the Endeavor Acquisition and other pending acquisitions[154] - The company’s ability to finance future capital expenditures is dependent on cash flow from operations, which is influenced by proved reserves and oil and natural gas production volumes[178] - The company’s future success relies on finding, developing, or acquiring additional economically recoverable oil and natural gas reserves, as current proved reserves will decline over time[182] Regulatory and Compliance Issues - The company believes it is in substantial compliance with environmental laws and regulations, although changes could materially affect operations and financial position[85] - The company is subject to stringent regulations under the Clean Air Act, which may increase compliance costs and delay project developments[95] - The Texas Railroad Commission has imposed stricter regulations on flaring and venting gas, which could increase operational costs for the company[98] - The company is monitoring ongoing governmental reviews that may lead to further regulations on hydraulic fracturing practices, potentially increasing compliance costs[105] - The oil and natural gas industry is heavily regulated, with increasing regulatory burdens affecting profitability, but these burdens are consistent across similar companies in the industry[110] - Compliance with various governmental regulations can be burdensome and expensive, potentially leading to increased operational costs and sanctions for non-compliance[213] Environmental and Climate Change Considerations - The Infrastructure Investment and Jobs Act and the Inflation Reduction Act include billions in incentives for renewable energy, potentially decreasing demand for oil and natural gas[96] - The U.S. aims to reduce greenhouse gas emissions by 50-52% below 2005 levels by 2030, which could impact the company's market[99] - The EPA's methane emissions charge starts at $900 per ton in 2024, increasing to $1,200 in 2025 and $1,500 in 2026, which could raise operating costs for the company[97] - The company faces potential increases in operational costs due to climate change-related regulations, including a methane emissions charge under the IRA, which could adversely impact financial condition and cash flows[163] Workforce and Safety - As of December 31, 2024, the company had 1,983 full-time employees, with a low annual attrition rate of approximately 15%[136][139] - The company reported 11 OSHA recordable cases in 2024, an increase from 3 in 2023, resulting in a total recordable incident rate (TRIR) of 0.88, up from 0.30 in 2023[142] - The company aims to maintain a TRIR of 0.25 or less as a short-term goal[142] - The company is focused on expanding recruitment efforts, particularly in college recruitment and internship programs, to attract top talent[139] - Over 24% of the company's employees are women, and over 42% self-identify as ethnic minorities[138] Market and Operational Risks - The company faces risks related to market volatility in oil and natural gas prices, which could adversely affect revenue and cash flows[149] - The company is subject to credit risk due to the concentration of oil and natural gas receivables with several significant customers, which may impact overall credit risk[191] - The company’s producing properties are concentrated in the Permian Basin, exposing it to regional supply and demand risks and potential production interruptions[200] - The marketability of oil and natural gas production is dependent on third-party transportation facilities, which may lead to interruptions and reduced revenues if unavailable[212] - The company may incur substantial costs due to the need to implement new technologies in response to competitive pressures[234] Debt and Financial Management - The company incurred substantial debt to finance the Endeavor Acquisition, which may limit operational and financial flexibility[247] - The company expects to fund capital expenditures through borrowings, cash flow from operations, and proceeds from debt and equity offerings[249][250] - The company may face liquidity concerns that could lead to a downgrade in debt ratings, impacting access to financing and increasing borrowing costs[255] - The company is subject to restrictive covenants in its debt instruments, which may limit its ability to respond to market changes and pursue business opportunities[251][252] - The weighted average interest rate on borrowings under the company's revolving credit facility was 6.33% for the year ended December 31, 2024, while Viper LLC's was 7.34%[256][257]

Financial Data and Key Metrics Changes - The company reported a free cash flow per share decrease of nine dollars per barrel compared to the previous year, indicating improved capital efficiency and successful accretive deals [12][26] - At seventy dollars per barrel, the business generates twenty dollars per share of free cash flow in 2025, representing a yield of approximately twelve and a half to thirteen percent [26] Business Line Data and Key Metrics Changes - The company is drilling fewer wells while completing more, with a significant drawdown of drilled but uncompleted (DUC) wells planned in the capital expenditure (CapEx) budget [16] - The completion efficiency has improved, with solid frac fleets achieving about one hundred wells per fleet per year, up from eighty a year ago [18] Market Data and Key Metrics Changes - The company has consolidated many quality positions in the Permian Basin, indicating a pause in mergers and acquisitions (M&A) activity [24] - The market conditions will influence the execution of the company's commitment to return at least fifty percent of free cash flow to shareholders [45] Company Strategy and Development Direction - The company aims to focus on share repurchases at current valuation levels, viewing it as a great use of capital [26] - The strategy includes leveraging the quality of the inventory acquired from the Double Eagle transaction while digesting the recent acquisitions [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong capital efficiency and productivity levels despite market volatility [67] - The company is exploring opportunities to build a large gas power plant in the basin, which could enhance operational flexibility and reduce costs [52] Other Important Information - The company plans to reduce midstream infrastructure CapEx to five to seven percent of total capital expenditures [38] - There is a commitment to a one and a half billion dollar asset sale program, primarily targeting non-core assets without selling operated acreage [58] Q&A Session Summary Question: What are the drivers behind the free cash flow changes? - Management indicated that the decrease in the breakeven price for free cash flow per share is due to improved capital efficiency and successful acquisitions [12] Question: How does the company view its M&A strategy post-Double Eagle acquisition? - Management stated that they see limited opportunities for further acquisitions in the core area and are focusing on digesting existing assets [24] Question: What is the expected impact of the Double Eagle transaction on capital and production? - Management noted that there would be no capital impact from the agreement, and it is expected to generate about one hundred million dollars of free cash flow on a consolidated basis by 2026 [74] Question: How does the company plan to manage its power needs? - Management mentioned a budget of seventy to a hundred million dollars annually for power needs and is exploring partnerships for a gas power plant [51][52] Question: What are the expectations for capital efficiency in the upcoming years? - Management expressed confidence in maintaining strong capital efficiency, with a focus on reducing ancillary CapEx while maximizing production [67] Question: How does the company plan to handle the share overhang from the Endeavor transaction? - Management indicated that they are comfortable with their ownership structure and are focused on maximizing shareholder value through share repurchases [130]