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This is Why Diamondback (FANG) is Set for Strong Q4 Earnings
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Diamondback Energy, Inc. (FANG - Free Report) is set to release fourth-quarter results after the closing bell on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.37 per share on revenues of $1.7 billion.
Let’s delve into the factors that might have influenced the Permian-focused oil and gas producer’s performance in the December quarter. But it’s worth taking a look at FANG’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, this Midland, TX-based upstream player beat the consensus mark on better-than-expected production. Diamondback Energy had reported adjusted earnings per share of $2.94, ahead of the Zacks Consensus Estimate by 13 cents. Revenues of $1.9 billion generated by the firm also came in above the Zacks Consensus Estimate of $1.5 billion.
FANG beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 11.7%, on average. This is depicted in the graph below:
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 311% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 116.6% increase from the year-ago period.
Factors to Consider
Diamondback Energy is expected to have benefited from the surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the fourth-quarter average sales price for crude and natural gas is pegged at $75 per barrel and $4.87 per thousand cubic feet, up significantly from a year earlier when the company had fetched $38.64 and $1.35. The year-over-year improvement in realizations has most likely buoyed Diamondback Energy’s revenues and cash flows.
Diamondback Energy is also expected to have benefited from higher production during the quarter. The company continues to churn out the impressive output from its assets in the resource-rich Permian Basin in West Texas. Consequently, the consensus mark for Diamondback Energy’s volume is pegged at 375.6 thousand barrels of oil equivalent per day (MBOE/d), rising from the prior-year quarter’s level of 299 MBOE/d.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Diamondback Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Diamondback Energy has an Earnings ESP of +0.90% and a Zacks Rank #3.
Other Stocks to Consider
Diamondback Energy is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Pembina Pipeline Corporation (PBA - Free Report) has an Earnings ESP of +20.43% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 24.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PBA is valued at around $18.3 billion. Pembina Pipeline topped the Zacks Consensus Estimate by an average of 4.2% in the trailing four quarters. PBA has gained around 22.9% in a year.
Viper Energy Partners LP (VNOM - Free Report) has an Earnings ESP of +14.93% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22.
VNOM topped the Zacks Consensus Estimate by an average of 103.1% in the trailing four quarters, including a 133.3% beat in Q3. Viper Energy Partners has rallied around 72.2% in a year.
TechnipFMC (FTI - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 23.
FTI is valued at around $3 billion. For 2022, TechnipFMC has a projected earnings growth rate of 217.8%. FTI has lost around 14% in a year.
Image: Bigstock
This is Why Diamondback (FANG) is Set for Strong Q4 Earnings
Diamondback Energy, Inc. (FANG - Free Report) is set to release fourth-quarter results after the closing bell on Feb 22. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $3.37 per share on revenues of $1.7 billion.
Let’s delve into the factors that might have influenced the Permian-focused oil and gas producer’s performance in the December quarter. But it’s worth taking a look at FANG’s previous-quarter performance first.
Highlights of Q3 Earnings & Surprise History
In the last-reported quarter, this Midland, TX-based upstream player beat the consensus mark on better-than-expected production. Diamondback Energy had reported adjusted earnings per share of $2.94, ahead of the Zacks Consensus Estimate by 13 cents. Revenues of $1.9 billion generated by the firm also came in above the Zacks Consensus Estimate of $1.5 billion.
FANG beat the Zacks Consensus Estimate in each of the last four quarters, which resulted in an earnings surprise of 11.7%, on average. This is depicted in the graph below:
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. price-eps-surprise | Diamondback Energy, Inc. Quote
Trend in Estimate Revision
The Zacks Consensus Estimate for the fourth-quarter bottom line has remained unchanged in the past seven days. The estimated figure indicates a 311% surge year over year. The Zacks Consensus Estimate for revenues, meanwhile, suggests a 116.6% increase from the year-ago period.
Factors to Consider
Diamondback Energy is expected to have benefited from the surge in oil and natural gas realizations. As a reflection of this price boost, the respective Zacks Consensus Estimate for the fourth-quarter average sales price for crude and natural gas is pegged at $75 per barrel and $4.87 per thousand cubic feet, up significantly from a year earlier when the company had fetched $38.64 and $1.35. The year-over-year improvement in realizations has most likely buoyed Diamondback Energy’s revenues and cash flows.
Diamondback Energy is also expected to have benefited from higher production during the quarter. The company continues to churn out the impressive output from its assets in the resource-rich Permian Basin in West Texas. Consequently, the consensus mark for Diamondback Energy’s volume is pegged at 375.6 thousand barrels of oil equivalent per day (MBOE/d), rising from the prior-year quarter’s level of 299 MBOE/d.
Why a Likely Positive Surprise?
Our proven model predicts an earnings beat for Diamondback Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Diamondback Energy has an Earnings ESP of +0.90% and a Zacks Rank #3.
Other Stocks to Consider
Diamondback Energy is not the only energy company looking up this earnings cycle. Here are some other firms from the space that you may want to consider on the basis of our model:
Pembina Pipeline Corporation (PBA - Free Report) has an Earnings ESP of +20.43% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb 24.
You can see the complete list of today’s Zacks #1 Rank stocks here.
PBA is valued at around $18.3 billion. Pembina Pipeline topped the Zacks Consensus Estimate by an average of 4.2% in the trailing four quarters. PBA has gained around 22.9% in a year.
Viper Energy Partners LP (VNOM - Free Report) has an Earnings ESP of +14.93% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 22.
VNOM topped the Zacks Consensus Estimate by an average of 103.1% in the trailing four quarters, including a 133.3% beat in Q3. Viper Energy Partners has rallied around 72.2% in a year.
TechnipFMC (FTI - Free Report) has an Earnings ESP of +100.00% and a Zacks Rank #3. The firm is scheduled to release earnings on Feb 23.
FTI is valued at around $3 billion. For 2022, TechnipFMC has a projected earnings growth rate of 217.8%. FTI has lost around 14% in a year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.