Can Diamondback Energy Pull Off a Strong Show in Q4 Earnings?

Core Viewpoint - Diamondback Energy (FANG) is expected to report fourth-quarter 2024 results on February 24, with a consensus estimate of $3.26 earnings per share and$ 3.4 billion in revenues [1][4]. Financial Performance - In the previous quarter, Diamondback reported adjusted earnings per share of $3.38, missing the consensus estimate of$ 3.80, while revenues of $2.6 billion exceeded expectations by 6.6% [3]. - The Zacks Consensus Estimate for the fourth-quarter earnings has been revised downward by 0.9% in the past week, indicating a 31.2% year-over-year decline, while revenue estimates suggest a 52.7% increase from the previous year [4]. Production and Operations - Diamondback holds approximately 476,000 net acres in the Delaware and Midland regions, with over 8,000 drilling locations and production exceeding 450,000 barrels of oil equivalent per day [5]. - The company’s wells have low oil price breakeven costs, requiring only$ 40 per barrel to be profitable [5]. - Following the $26 billion acquisition of Endeavor Energy, Diamondback is expected to benefit from increased production, with an average fourth-quarter volume projected at 845,967.5 barrels of oil equivalent per day, an 82.9% increase from the previous year [6][7]. Earnings Expectations - The company has a positive earnings surprise prediction, supported by an Earnings ESP of +0.02% and a Zacks Rank of 3 (Hold), which enhances the likelihood of an earnings beat [8].