On November 6, 2023, Diamondback Energy Inc (FANG, Financial) announced its financial and operating results for the third quarter ended September 30, 2023. The company reported a net income of $915 million, or $5.07 per diluted share, and an average production of 266.1 MBO/d. The net cash provided by operating activities was $1.4 billion, with cash capital expenditures amounting to $684 million.
Financial Highlights
For Q3 2023, Diamondback Energy Inc (FANG, Financial) reported a Free Cash Flow of $820 million and an Adjusted Free Cash Flow of $884 million. The company declared a Q3 2023 base cash dividend of $0.84 per share and a variable cash dividend of $2.53 per share, payable on November 24, 2023. This implies an 8.3% annualized yield based on the November 3, 2023 closing share price of $162.10.
The company repurchased 406,700 shares of common stock in Q3 2023 for $56 million at a weighted average price of $136.59/share. As of the end of Q3 2023, the company's consolidated total debt was $6.4 billion and consolidated net debt was $5.6 billion, down from $6.7 billion as of the end of Q2 2023.
Operational Highlights
In Q3 2023, Diamondback Energy Inc (FANG, Financial) drilled 79 gross wells in the Midland Basin and seven gross wells in the Delaware Basin. The company turned 73 operated wells to production in the Midland Basin and one gross well in the Delaware Basin with an average lateral length of 11,864 feet.
The company also completed a joint venture transaction with Five Point Energy LLC, forming Deep Blue Midland Basin LLC, contributing certain Midland Basin water assets for gross proceeds of $516 million and 30% equity ownership in the new joint venture entity. In addition, the company completed the divestiture of Delaware Basin oil gathering assets for gross proceeds of $75 million.
Looking Ahead
For the full year 2023, Diamondback Energy Inc (FANG, Financial) is raising both total and net oil production due to production outperformance year-to-date. The company is also narrowing unit costs, capital expenditures, and activity levels. The company's net production is expected to be around 447 MBOE/d, with oil production expected to be around 263 MBO/d.
Diamondback Energy Inc (FANG, Financial) is an independent oil and natural gas company headquartered in Midland, Texas, focused on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.
Explore the complete 8-K earnings release (here) from Diamondback Energy Inc for further details.
