Diamondback Energy

FANG Q2 2024 Earnings

Reported Aug 5, 2024 at 4:06 PM ET · SEC Source

Q2 24 EPS

$4.52

BEAT +0.22%

Est. $4.51

Q2 24 Revenue

$2.48B

BEAT +13.69%

Est. $2.18B

vs S&P Since Q2 24

-20.9%

TRAILING MARKET

FANG +17.1% vs S&P +38.0%

Market Reaction

Did FANG Beat Earnings? Q2 2024 Results

Diamondback Energy posted a near-clean beat in Q2 2024, with adjusted earnings per share of $4.52 edging past the $4.51 consensus estimate while revenue of $2.48 billion cleared expectations by 13.69%, rising 29.4% year over year as higher realized o… Read more Diamondback Energy posted a near-clean beat in Q2 2024, with adjusted earnings per share of $4.52 edging past the $4.51 consensus estimate while revenue of $2.48 billion cleared expectations by 13.69%, rising 29.4% year over year as higher realized oil prices of $79.51 per barrel versus $71.33 a year earlier padded results. The standout driver behind the quarter was operational efficiency, with Diamondback drilling and completing wells faster than at the start of the year, allowing the company to trim its rig count from 12 to 10 and reduce frac crews from four to three while still exceeding its oil production guidance of 271 to 275 MBO per day with an actual output of 276.1 MBO per day. Free cash flow reached $816.00 million, supporting $421.00 million in shareholder returns. Looking ahead, management raised full-year production guidance to 273 to 276 MBO per day and lowered capital expenditure guidance to $2.35 to $2.45 billion, with the pending Endeavor Energy merger expected to close in Q3 or Q4 2024.

Key Takeaways

  • Higher realized oil prices of $79.51/bbl vs $71.33/bbl in Q2 2023
  • Oil production of 276.1 MBO/d above high end of guidance range
  • Drilling efficiency improvements averaging ~10% faster than beginning of year
  • Completion rate increased to nearly 100 wells per crew per year from original budget of 80
  • Lower lease operating expenses of $5.88/BOE vs guidance of $6.00-$6.50/BOE
  • Free Cash Flow generation of $816 million
24/7 Wall St

FANG YoY Financials

Q2 2024 vs Q2 2023, source: SEC Filings

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FANG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 24 Q4 25

“Diamondback built significant momentum in the first half of the year. As a result of our first and second quarter performance, we are increasing our full year production guidance and lowering our annual capex guidance. Our operations team has done an incredible job of focusing on what we do best: lowering costs and generating additional efficiencies in the field, truly differentiating Diamondback as we convert rock into cash flow.”

— Travis D. Stice, Q2 2024 Earnings Press Release