Diamondback Energy misses Q3 profit estimates, raises annual production forecast

Diamondback Energy missed Monday's estimates for the third quarter profit as it was hit by lower prices. However, its forecast for production for this year got a boost thanks to its acquisition of Endeavor Energy for $26 billion.

Oil prices dropped in the third quarter, after an interest rate reduction by the Federal Reserve that was larger than expected sparked concern about the U.S. economic situation as well as global demand.

The company has been announcing its results for the month of September.

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Lower prices for its third quarter oil and gas production. This makes it the third U.S. shale producers to do this in just a few weeks after Occidental Petroleum, and Exxon Mobil.

The company reported that the average quarterly price for oil had dropped to $73.13 a barrel, from $81.57 a barrel one year ago.

The Midland, Texas based company has raised its forecasted net production for the current fiscal year from 462,000 to 470,000 barrels of oil-equivalent per day (boepd).

Texas-based company Endeavor Energy completed its purchase of Endeavor Energy on September 1, making it the third largest oil and gas producer within the Permian basin, the U.S.'s top shale-region. It is now just behind Exxon Mobil, and Chevron.

According to data compiled and analyzed by LSEG, the company reported a profit adjusted of $3.38 for the quarter ending Sept. 30 compared to analysts' average estimates of $3.98. Tanay Dhumal reported from Bengaluru, Anil D'Silva edited.

(source: Reuters)