Diamondback Energy (FANG - Free Report) , the U.S. energy explorer, reported second-quarter 2022 adjusted earnings per share of $7.07, beating the Zacks Consensus Estimate of $6.66, significantly more than the year-earlier period’s profit of $2.40.
The outperformance can be attributed to higher energy prices in the second quarter, which led to higher oil, natural gas and natural gas liquid sales. Diamondback’s average second-quarter output came in at 380,451 barrels of oil equivalent per day (BOE/d), ahead of the consensus mark of 374,210 BOE/d.
Revenues of $2.77 billion outpaced the Zacks Consensus Estimate by approximately 10.4% and surged 64.7% from the year-ago quarter’s sales of $1.68 billion.
In good news for investors, FANG raised its regular quarterly dividend payout by 7.1% to 75 cents a share and also declared a variable dividend of $2.30. The payout will be made on Aug 23. The company’s board approved a $2-billion increase in its share repurchase authorization, augmenting total authorized common stock repurchases to $4 billion.
Production & Realized Prices
Diamondback’s production of oil and natural gas averaged 380,451 BOE/d, which comprised about 58.1% oil. The figure fell 5.2% from the year-ago quarter but surpassed the Zacks Consensus Estimate of 374,210 BOE/d. While the crude output was down 8.8% year over year, natural gas volumes fell by about 3.6% year over year.
The average realized oil price in the second quarter was $108.8 per barrel, 72.1% higher than the year-ago realization of $63.22 and also more than the consensus mark of $106. Meanwhile, the average realized natural gas price jumped to $6.15 per thousand cubic feet from $2.40 in the year-ago period and beat the Zacks Consensus Estimate of $5.53. Overall, the company fetched $79.49 per barrel compared with $45.63 a year ago.
Costs & Financial Position
Diamondback’s second-quarter cash operating cost was $12.24 per barrel of oil equivalent (BOE), up 31.1% from the prior-year quarter. Lease operating expenses were $4.59 per BOE compared with $4.30 in the second quarter of 2021. FANG’s production taxes rose 79% year over year to $5.14 per BOE. Gathering and transportation expenses increased in the second quarter of 2022 to $1.76 per BOE from $1.53 in the second quarter of 2021.
Diamondback spent $468 million on capital expenditure, $407 million on drilling and completion, $38 million on infrastructure and $23 million on midstream. The company booked $1.3 billion of free cash flows in the second quarter.
As of Jun 30, the Permian-focused operator had approximately $43 million in cash and cash equivalents and $5.4 billion in long-term debt, representing a debt-to-capitalization of 27.3%.
Guidance
For 2022, Diamondback increased its total net production guidance to the range of 374,000-380,000 BOE/d from the earlier range of 369,000-376,000 BOE/d and also augmented its oil volumes guidance in the 220,000-222,000 barrels per day band. The company forecast the capital spending budget between $1.82 billion and $1.9 billion. In the third quarter of 2022, the company expects capital spending between $470 and $510 million.
FANG maintained its expected cash tax rate to 10-15% of the pre-tax income.
Zacks Rank & Stocks to Consider
Diamondback currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include RPC (RES - Free Report) , Equinor (EQNR - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 55 cents per share, up 1,733% from the year-ago earnings of 3 cents.
RPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 80%.
The Zacks Consensus Estimate for Equinor’s 2022 earnings stands at $6.15 per share, up about 99.7% from the year-ago earnings of $3.08.
Equinor beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 7.3%.
The Zacks Consensus Estimate for Delek’s 2022 earnings has been revised upward by about 93.4% over the past 60 days from $3.97 to $7.68 per share.
The Zacks Consensus Estimate for DK’s 2022 earnings stands at $7.68 per share, up about 353.5% from the year-ago loss of $3.03.
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Diamondback Energy (FANG - Free Report) , the U.S. energy explorer, reported second-quarter 2022 adjusted earnings per share of $7.07, beating the Zacks Consensus Estimate of $6.66, significantly more than the year-earlier period’s profit of $2.40.
The outperformance can be attributed to higher energy prices in the second quarter, which led to higher oil, natural gas and natural gas liquid sales. Diamondback’s average second-quarter output came in at 380,451 barrels of oil equivalent per day (BOE/d), ahead of the consensus mark of 374,210 BOE/d.
Revenues of $2.77 billion outpaced the Zacks Consensus Estimate by approximately 10.4% and surged 64.7% from the year-ago quarter’s sales of $1.68 billion.
In good news for investors, FANG raised its regular quarterly dividend payout by 7.1% to 75 cents a share and also declared a variable dividend of $2.30. The payout will be made on Aug 23. The company’s board approved a $2-billion increase in its share repurchase authorization, augmenting total authorized common stock repurchases to $4 billion.
Production & Realized Prices
Diamondback’s production of oil and natural gas averaged 380,451 BOE/d, which comprised about 58.1% oil. The figure fell 5.2% from the year-ago quarter but surpassed the Zacks Consensus Estimate of 374,210 BOE/d. While the crude output was down 8.8% year over year, natural gas volumes fell by about 3.6% year over year.
The average realized oil price in the second quarter was $108.8 per barrel, 72.1% higher than the year-ago realization of $63.22 and also more than the consensus mark of $106. Meanwhile, the average realized natural gas price jumped to $6.15 per thousand cubic feet from $2.40 in the year-ago period and beat the Zacks Consensus Estimate of $5.53. Overall, the company fetched $79.49 per barrel compared with $45.63 a year ago.
Costs & Financial Position
Diamondback’s second-quarter cash operating cost was $12.24 per barrel of oil equivalent (BOE), up 31.1% from the prior-year quarter. Lease operating expenses were $4.59 per BOE compared with $4.30 in the second quarter of 2021. FANG’s production taxes rose 79% year over year to $5.14 per BOE. Gathering and transportation expenses increased in the second quarter of 2022 to $1.76 per BOE from $1.53 in the second quarter of 2021.
Diamondback spent $468 million on capital expenditure, $407 million on drilling and completion, $38 million on infrastructure and $23 million on midstream. The company booked $1.3 billion of free cash flows in the second quarter.
As of Jun 30, the Permian-focused operator had approximately $43 million in cash and cash equivalents and $5.4 billion in long-term debt, representing a debt-to-capitalization of 27.3%.
Guidance
For 2022, Diamondback increased its total net production guidance to the range of 374,000-380,000 BOE/d from the earlier range of 369,000-376,000 BOE/d and also augmented its oil volumes guidance in the 220,000-222,000 barrels per day band. The company forecast the capital spending budget between $1.82 billion and $1.9 billion. In the third quarter of 2022, the company expects capital spending between $470 and $510 million.
FANG maintained its expected cash tax rate to 10-15% of the pre-tax income.
Zacks Rank & Stocks to Consider
Diamondback currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space that warrant a look include RPC (RES - Free Report) , Equinor (EQNR - Free Report) and Delek US Holdings (DK - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for RPC’s 2022 earnings is pegged at 55 cents per share, up 1,733% from the year-ago earnings of 3 cents.
RPC beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 80%.
The Zacks Consensus Estimate for Equinor’s 2022 earnings stands at $6.15 per share, up about 99.7% from the year-ago earnings of $3.08.
Equinor beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average being around 7.3%.
The Zacks Consensus Estimate for Delek’s 2022 earnings has been revised upward by about 93.4% over the past 60 days from $3.97 to $7.68 per share.
The Zacks Consensus Estimate for DK’s 2022 earnings stands at $7.68 per share, up about 353.5% from the year-ago loss of $3.03.
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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