Diamondback Energy reports lower oil prices in the fourth quarter

Diamondback Energy, the U.S. producer of shale oil, announced on Monday that its production prices were lower in the fourth quarter compared with the previous three months.

Crude oil prices dropped about 6% during the quarter of October-December, due to a patchy recovery from the pandemic, China's slow economy, and an excess supply worldwide. Prices are down nearly 12% compared to a year earlier.

The company reported that the average realized price, or the price received for its total oil production during the quarter ended December 31, was $69.48 per barrel, compared to $73.13 in the previous quarter.

A near 30% increase in U.S. Natural Gas prices should offer some relief to the earnings of shale producer for the third quarter.

Texas-based producer announced higher prices for natural gas production during the fourth quarter. After hedging, the average realized price for natural gas was 82 cents a thousand cubic feet, up from 60 cents a Mcf during the third quarter.

Diamondback's snapshot of its quarterly earnings comes only days after Exxon Mobil, Occidental Petroleum and other rivals warned about a similar trend for their fourth-quarter results.

Exxon anticipates that changes in oil prices, and profits from refining, will lower its earnings by approximately $1.75 billion. Occidental reported lower prices for oil production during the third quarter.

According to estimates compiled at LSEG, analysts expect Diamondback Energy will post a profit per share of $3.36 for the fourth quarter and $15.86 in the full year.

According to the website, the producer's financial results will be released on February 24.

(source: Reuters)