Q3 24 EPS
$3.38
MISS 15.29%
Est. $3.99
Q3 24 Revenue
$2.65B
BEAT +8.33%
Est. $2.44B
vs S&P Since Q3 24
-2.3%
TRAILING MARKET
FANG +22.7% vs S&P +25.0%
Market Reaction
Did FANG Beat Earnings? Q3 2024 Results
Diamondback Energy posted a mixed third quarter for 2024, clearing the bar on revenue while falling short on earnings as merger costs clouded the bottom line. The Permian Basin independent reported adjusted EPS of $3.38, missing the $3.99 consensus e… Read more Diamondback Energy posted a mixed third quarter for 2024, clearing the bar on revenue while falling short on earnings as merger costs clouded the bottom line. The Permian Basin independent reported adjusted EPS of $3.38, missing the $3.99 consensus estimate by 15.29%, even as revenue of $2.65 billion beat expectations by 8.33% and climbed 13.0% from a year ago. The primary culprit behind the earnings shortfall was the $258 million in merger and integration expenses tied to the September 10 closing of the Endeavor Energy Resources acquisition, which also lifted depreciation charges to $14.12 per BOE from $10.61 a year ago. Production surged to 571.1 MBOE/d, aided by 21 days of legacy Endeavor volumes, though sharply lower oil realizations of $73.13 per barrel, down from $81.57 a year ago, capped the upside. The company is already pursuing new revenue angles from its expanded Permian footprint, including attracting data centers as natural gas customers. Looking ahead, Diamondback guided Q4 oil production at 470 to 475 MBO/d and set a 2025 capital budget of $4.10 to $4.40 billion, while targeting near-term debt reduction below $10 billion.
Key Takeaways
- • Endeavor merger closed September 10, adding 21 days of legacy Endeavor production to Q3
- • Q3 oil production of 321.1 MBO/d exceeded high end of guidance range (319-321 MBO/d)
- • Drilling and completion costs averaging $600 per lateral foot, below $625 target promised at deal announcement
- • SimulFrac completions completing nearly 4,000 lateral feet per day per crew, 30% above original plan
- • Total cash operating costs decreased slightly QoQ to $11.49/BOE
- • Lower realized commodity prices: oil at $73.13/Bbl vs $81.57 YoY, natural gas at $(0.26)/Mcf vs $1.62 YoY
FANG YoY Financials
Q3 2024 vs Q3 2023, source: SEC Filings
FANG Revenue by Segment
With YoY comparisons, source: SEC Filings
“At time of deal announcement, we promised to drill and complete wells for $625 per lateral foot in 2025 on Endeavor's acreage. I can say that today, in real time and two months post-announcement, we are averaging $600 per lateral foot across the combined Company - above expectations and ahead of schedule.”
— Travis D. Stice, Q3 2024 Earnings Press Release
FANG Earnings Trends
FANG vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
FANG EPS Trend
Earnings per share: estimate vs actual
FANG Revenue Trend
Quarterly revenue: estimate vs actual
FANG Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q4 25 MISS FY | $2.41 | $1.74 | -27.80% | $3.38B | +3.02% |
| FY Full Year | $12.30 | $13.37 | +8.69% | $15.03B | +0.96% |
| Q3 25 BEAT | $2.94 | $3.08 | +4.59% | $3.92B | +11.17% |
| Q2 25 MISS | $2.73 | $2.67 | -2.23% | $3.68B | +10.30% |
| Q1 25 BEAT | $4.20 | $4.54 | +8.19% | $4.05B | +7.84% |
| Q3 24 MISS | $3.99 | $3.38 | -15.29% | $2.65B | +8.33% |
| Q2 24 BEAT | $4.51 | $4.52 | +0.22% | $2.48B | +13.69% |