Diamondback Energy exceeds profit expectations for the fourth quarter on higher production
Diamondback Energy, a U.S. shale oil producer, surpassed Wall Street's expectations for the fourth quarter profit on Monday as higher production offset lower prices.
In extended trading, shares were up 3% to $159.95.
The U.S. Energy Information Administration reported that the total oil production of the United States reached a record 13.6 million barrels a day (bpd), as increased efficiencies allowed producers to pump more oil.
Diamondback's fourth quarter production nearly doubled, to an average 883.424 barrels equivalent per day (boepd), helping offset a drop of 9% in oil prices.
Diamondback announced last week that its CEO Travis Stice will step down after 13 years in the role during the company’s annual stockholders’ meeting 2025. He will be replaced by Kaes van't Hof, the finance director.
Diamondback announced earlier this month that it would acquire certain units of EnCap Investments' Double Eagle producer for $4.08 Billion in cash and stock. This will expand its presence in Permian basin, the U.S.'s top oil producing shale.
Texas-based company Endeavor Energy completed its $26-billion acquisition in September. This made it the third largest oil and gas producer within the Permian Basin, just behind Exxon Mobil, and Chevron.
Diamondback expects its net production for the current year to range between 883,000 and 909,000 boepd. It predicted capital expenditures between $3.8 billion to $4.2 billion. The midpoint was lower than Wall Street's estimates of $4.15billion.
According to LSEG, the company reported an adjusted profit per share of $3.64 for the three-month period ended December 31. This compares with analyst estimates of $3.35. Reporting by Tanay Srivastava and Vallari in Bengaluru, Editing by Krishna Chandra Eluri
(source: Reuters)
