The U.S. energy explorer Diamondback Energy (FANG - Free Report) reported first-quarter 2022 adjusted earnings per share of $5.20, beating the Zacks Consensus Estimate of $4.74, significantly more than the year-earlier period’s profit of $2.30.
The outperformance can be attributed to the surge in energy prices in the first quarter, which lead to higher oil, natural gas and natural gas liquid sales. Diamondback’s average first-quarter output came in at 381,378 barrels of oil equivalent per day (BOE/d), ahead of the consensus mark of 374,957 BOE/d.
Revenues of $2.41 billion outpaced the Zacks Consensus Estimate by approximately 25% and surged 103.4% from the year-ago quarter’s sales of $1.18 billion.
In good news for investors, FANG raised its regular quarterly payout by almost 17% to 70 cents a share and also declared a variable dividend of $2.35, bringing the total distribution to $3.05. The payout will be made on May 23. The company also executed $6.7 million of share repurchases in the first quarter of 2022 at $117.34 apiece.
Production & Realized Prices
Diamondback’s production of oil and natural gas averaged 381,378 BOE/d, which comprised about 58.4% oil. The figure rose 24% from the year-ago quarter and also surpassed the Zacks Consensus Estimate of 374,957 BOE/d. While the crude output was up 21% year over year, natural gas volumes improved by about 25% year over year.
The average realized oil price in the first quarter was $97.03 per barrel, 70.4% higher than the year-ago realization of $56.94 and also more than the consensus mark of $91. Meanwhile, the average realized natural gas price jumped to $3.61 per thousand cubic feet (Mcf) from $3.05 in the year-ago period but missed the Zacks Consensus Estimate of $4.02. Overall, the company fetched $69.60 per barrel compared with $42.36 a year ago.
Costs & Financial Position
Diamondback’s first-quarter cash operating cost was $11.36 per barrel of oil equivalent (BOE), up 41% from the prior-year quarter. Lease operating expenses were $4.34 per BOE, compared with $3.69 in the first quarter of 2021. FANG’s production taxes rose 73% year over year to $4.69 per BOE. Gathering and transportation expenses increased in the first quarter of 2022 to $1.72 per BOE from $1.12 in the first quarter of 2021.
Diamondback spent $437 million on capital expenditure, $374 million on drilling and completion, $44 million on infrastructure and $19 million on midstream. The company booked $974 million of free cash flows in the first quarter.
As of Mar 31, the Permian-focused operator had approximately $149 million in cash and cash equivalents and $5.8 billion in long-term debt, representing a debt-to-capitalization of 29.5%.
Guidance
For 2022, Diamondback maintained its total net production guidance in the range of 369,000-376,000 BOE/d and also maintained that its oil volumes are likely to be in the 218,000-222,000 barrels per day band. The company forecast the capital spending budget between $1.75 billion and $1.9 billion. In the second quarter of 2022, the company expects capital spending between $435 and $475 million.
As a consequence of the rise in commodity prices, FANG increased its expected cash tax rate to 10-15% of the pre-tax income from the previous 6-11%.
Zacks Rank & Other Stocks to Consider
Diamondback currently sports a Zacks Rank #1 (Strong Buy). Other similar-ranked stocks from the energy space that warrant a look include Earthstone Energy , PDC Energy and Devon Energy (DVN - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Earthstone’s 2022 earnings has been revised upward by about 20.4% over the past 60 days from $2.80 to $3.37 per share. Earthstone’s stock has increased 84.2% in a year.
The Zacks Consensus Estimate for ESTE’s 2022 earnings is projected at $3.37 per share, up about 169.6% from the projected year-ago earnings of $1.25.
PDC Energy’s stock price has gone up 89.8% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 32% upward over the past 60 days from $12.32 per share to $16.27.
The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $16.27 per share, up 103.6% from the projected year-ago earnings of $7.99.
The Zacks Consensus Estimate for Devon Energy’s 2022 earnings is projected at $8.46 per share, up about 139.6% from the projected year-ago earnings of $3.53. Devon Energy’s stock has rallied 163.8% in a year.
Devon Energy beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 18.5%. DVN is valued at around $38.5 billion.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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The U.S. energy explorer Diamondback Energy (FANG - Free Report) reported first-quarter 2022 adjusted earnings per share of $5.20, beating the Zacks Consensus Estimate of $4.74, significantly more than the year-earlier period’s profit of $2.30.
The outperformance can be attributed to the surge in energy prices in the first quarter, which lead to higher oil, natural gas and natural gas liquid sales. Diamondback’s average first-quarter output came in at 381,378 barrels of oil equivalent per day (BOE/d), ahead of the consensus mark of 374,957 BOE/d.
Revenues of $2.41 billion outpaced the Zacks Consensus Estimate by approximately 25% and surged 103.4% from the year-ago quarter’s sales of $1.18 billion.
In good news for investors, FANG raised its regular quarterly payout by almost 17% to 70 cents a share and also declared a variable dividend of $2.35, bringing the total distribution to $3.05. The payout will be made on May 23. The company also executed $6.7 million of share repurchases in the first quarter of 2022 at $117.34 apiece.
Production & Realized Prices
Diamondback’s production of oil and natural gas averaged 381,378 BOE/d, which comprised about 58.4% oil. The figure rose 24% from the year-ago quarter and also surpassed the Zacks Consensus Estimate of 374,957 BOE/d. While the crude output was up 21% year over year, natural gas volumes improved by about 25% year over year.
The average realized oil price in the first quarter was $97.03 per barrel, 70.4% higher than the year-ago realization of $56.94 and also more than the consensus mark of $91. Meanwhile, the average realized natural gas price jumped to $3.61 per thousand cubic feet (Mcf) from $3.05 in the year-ago period but missed the Zacks Consensus Estimate of $4.02. Overall, the company fetched $69.60 per barrel compared with $42.36 a year ago.
Costs & Financial Position
Diamondback’s first-quarter cash operating cost was $11.36 per barrel of oil equivalent (BOE), up 41% from the prior-year quarter. Lease operating expenses were $4.34 per BOE, compared with $3.69 in the first quarter of 2021. FANG’s production taxes rose 73% year over year to $4.69 per BOE. Gathering and transportation expenses increased in the first quarter of 2022 to $1.72 per BOE from $1.12 in the first quarter of 2021.
Diamondback spent $437 million on capital expenditure, $374 million on drilling and completion, $44 million on infrastructure and $19 million on midstream. The company booked $974 million of free cash flows in the first quarter.
As of Mar 31, the Permian-focused operator had approximately $149 million in cash and cash equivalents and $5.8 billion in long-term debt, representing a debt-to-capitalization of 29.5%.
Guidance
For 2022, Diamondback maintained its total net production guidance in the range of 369,000-376,000 BOE/d and also maintained that its oil volumes are likely to be in the 218,000-222,000 barrels per day band. The company forecast the capital spending budget between $1.75 billion and $1.9 billion. In the second quarter of 2022, the company expects capital spending between $435 and $475 million.
As a consequence of the rise in commodity prices, FANG increased its expected cash tax rate to 10-15% of the pre-tax income from the previous 6-11%.
Zacks Rank & Other Stocks to Consider
Diamondback currently sports a Zacks Rank #1 (Strong Buy). Other similar-ranked stocks from the energy space that warrant a look include Earthstone Energy , PDC Energy and Devon Energy (DVN - Free Report) . You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Earthstone’s 2022 earnings has been revised upward by about 20.4% over the past 60 days from $2.80 to $3.37 per share. Earthstone’s stock has increased 84.2% in a year.
The Zacks Consensus Estimate for ESTE’s 2022 earnings is projected at $3.37 per share, up about 169.6% from the projected year-ago earnings of $1.25.
PDC Energy’s stock price has gone up 89.8% in a year. The Zacks Consensus Estimate for PDC Energy’s 2022 earnings has been revised about 32% upward over the past 60 days from $12.32 per share to $16.27.
The Zacks Consensus Estimate for PDCE’s 2022 earnings is pegged at $16.27 per share, up 103.6% from the projected year-ago earnings of $7.99.
The Zacks Consensus Estimate for Devon Energy’s 2022 earnings is projected at $8.46 per share, up about 139.6% from the projected year-ago earnings of $3.53. Devon Energy’s stock has rallied 163.8% in a year.
Devon Energy beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 18.5%. DVN is valued at around $38.5 billion.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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