NASDAQ$FANG

Diamondback Energy Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced financial and operating results for the second quarter ended June 30, 2022.

Diamondback Energy, Inc. reported a record $1.3 billion in Free Cash Flow for Q2 2022, exceeding the previous quarter's record by 35%. The company used the cash to reduce net debt by 5% quarter over quarter, pay a total dividend of $3.05 per share, and repurchase over 2.3 million shares.

  • Average production of 221.1 MBO/d (380.5 MBOE/d).
  • Cash flow from operating activities of $1.7 billion; Operating Cash Flow Before Working Capital Changes of $1.8 billion.
  • Free Cash Flow of $1.3 billion.
  • Board approved a $2.0 billion increase to share repurchase program authorization to $4.0 billion from $2.0 billion previously.

Headline financials

Total Revenue

$2.77B

Previous: $1.68B+64.7%
EPS (adj)

$7.07

Previous: $2.40+194.6%
Avg daily BOE (boe/d)

380.5K

Previous: 401.5K-5.2%
Operating cash flow

$1.71B

Previous: $954M+78.9%
OCF before WC changes

$1.79B

Previous: $944M+89.3%
Cash capital expenditures

$468M

Previous: $366M+27.9%
Adjusted EBITDA

$2.07B

Previous: $1B+106.5%
Capital Expenditures

-$1.29B

Previous: -$1.05B-22.5%
Free Cash Flow

$130M

Previous: -$739M+117.6%
Net Income

$1.42B

Previous: $311M+355.3%
Operating Income

$1.98B

Previous: $955M+107.1%
Gross Profit

$2.77B

Previous: $1.68B+64.7%
Cash & Equivalents

$43M

Previous: $344M-87.5%
Total Assets

$23.4B

Previous: $22.3B+5.0%
Stock-Based Comp

$13M

Previous: $13M+0.0%

Revenue & EPS history

Diamondback · Revenue · Quarterly

$2.77B

Q2 2022+64.7%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

Diamondback is raising the midpoints of both total and oil net production for the year due to the production outperformance seen year-to-date as well as the Company's confidence in its forward outlook. Diamondback is also increasing its lease operating expense guidance for the year primarily due to the realized and expected increase in the cost of power in Texas.

Tailwinds

  • Total net production – MBOE/d 374 - 380
  • Oil production – MBO/d 220 - 222
  • Gross horizontal wells drilled (net) 270 - 290 (248 - 267)
  • Gross horizontal wells completed (net) 260 - 280 (240 - 258)
  • Average lateral length (Ft.) ~10,200'

Headwinds

  • Lease operating expenses, including workovers $4.50 - $5.00
  • Cash G&A $0.65 - $0.80
  • Non-cash equity-based compensation $0.40 - $0.50
  • DD&A $8.75 - $9.75
  • Interest expense (net of interest income) $1.10 - $1.30

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.7%

Avg return

Earnings day

+1.1%

Avg return

5 days after

-0.0%

Avg return

30 days after

58%

33 / 57 earnings

Positive

+8.9%

Q3 2013

Best reaction

-14.6%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.9%-9.3%+1.1%
Q4 2025+0.5%+0.1%+16.3%
Q3 2025-1.3%+1.7%+12.9%
Q2 2025-2.2%-4.1%-3.9%
Q1 2025-0.7%+3.6%+3.3%
Q4 2024-2.1%+2.4%+3.2%
Q3 2024-0.1%+3.5%-2.7%
Q2 2024+0.3%+5.7%-2.5%
Q1 2024-4.8%-2.1%-4.1%
Q4 2023+0.2%-1.7%+8.3%
Q3 2023-2.0%-2.7%-9.6%
Q2 2023+1.5%+2.0%+3.9%
Q1 2023-5.0%-6.6%-10.6%
Q4 2022+1.9%+5.7%-6.0%
Q3 2022+1.4%+1.8%-15.4%
Q2 2022-0.4%-5.2%+4.1%
Q1 2022+7.8%+13.2%+21.1%
Q4 2021-1.5%+1.4%+8.9%
Q3 2021+6.8%+6.2%-3.9%
Q2 2021+4.4%+3.8%-3.9%
Q1 2021-3.1%+3.0%+5.8%
Q4 2020+8.3%+5.7%+13.5%
Q3 2020+8.3%-4.7%+56.1%
Q2 2020+3.0%+5.4%-8.9%
Q1 2020+0.1%+4.5%+18.1%
Q4 2019+5.8%+1.9%-75.1%
Q3 2019-14.6%-16.5%-11.5%
Q2 2019+1.4%+5.4%+6.8%
Q1 2019+5.1%+7.1%-3.1%
Q4 2018+0.9%-1.4%+0.4%
Q3 2018-0.1%-1.8%-12.2%
Q2 2018-2.7%-2.1%-16.4%
Q1 2018+4.8%-4.9%-12.4%
Q4 2017+5.9%+6.8%+7.4%
Q3 2017+0.6%+0.6%-4.3%
Q2 2017-0.0%-0.7%-5.3%
Q1 2017+1.3%+0.7%-5.0%
Q4 2016+7.2%+3.2%-0.8%
Q3 2016+2.2%+4.1%+14.9%
Q2 2016+1.6%+8.1%+10.8%
Q1 2016-3.9%
Q4 2015+1.9%
Q3 2015+3.6%
Q2 2015+3.7%
Q1 2015-5.5%
Q4 2014+0.5%
Q3 2014-3.5%
Q2 2014-3.8%
Q1 2014-2.0%
Q4 2013+2.7%
Q3 2013+8.9%
Q2 2012+0.0%
Q2 2013-2.0%
Q1 2012-3.2%
Q1 2013+2.7%
Q4 2012-4.4%
Q3 2012+2.5%
Q4 2011
Q3 2011
Q2 2011
Q1 2011
Q4 2010

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