MIDLAND, Texas - Diamondback (NASDAQ:FANG) Energy, Inc. (NASDAQ: FANG) reported a modest increase of 1.2% in share price following the announcement of their fourth quarter earnings, which surpassed analyst expectations.
The company posted an adjusted earnings per share (EPS) of $4.74, slightly higher than the analyst estimate of $4.69. Revenue for the quarter was also above consensus, coming in at $2.23 billion against an expected $2.16 billion.
Diamondback's financial results for the fourth quarter show a robust operational performance with an average production of 273.1 thousand barrels of oil per day (MBO/d), contributing to the company's strong revenue figures. The company's net income for the quarter was $960 million, or $5.34 per diluted share, with an adjusted net income of $854 million, or $4.74 per diluted share.
The company's financial health is further underscored by its cash flow activities. Diamondback reported net cash provided by operating activities of $1.6 billion for the quarter, and a significant free cash flow of $910 million. This financial discipline allowed Diamondback to increase its annual base dividend by 7% to $3.60 per share and declare a Q4 2023 base cash dividend of $0.90 per share, alongside a variable cash dividend of $2.18 per share.
Looking ahead, Diamondback provided guidance for full-year 2024 with an expected oil production range of 270 - 275 MBO/d and cash capital expenditures guidance of $2.30 - $2.55 billion. The company's projections for the first quarter of 2024 include oil production guidance of 270 - 274 MBO/d and cash capital expenditures guidance of $580 - $620 million.
The company's CEO commented on the results, stating, "Our strong fourth quarter performance reflects our commitment to operational excellence and financial discipline. We are pleased to deliver significant free cash flow, enabling us to reward our shareholders with a robust return of capital."
As Diamondback looks to the future, the company remains focused on sustainable growth, operational efficiency, and shareholder returns, as evidenced by its strategic planning and financial results.
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