NASDAQ$FANG

Diamondback Energy Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Announced second quarter 2023 financial and operating results.

Diamondback Energy reported a net income of $556 million, or $3.05 per diluted share, and adjusted net income of $669 million, or $3.68 per diluted share, for the second quarter of 2023. The company's net cash provided by operating activities was $1.51 billion, with free cash flow of $547 million.

  • Average production of 263.1 MBO/d (449.9 MBOE/d)
  • Net cash provided by operating activities of $1.51 billion
  • Cash capital expenditures of $711 million
  • Free Cash Flow of $547 million

Headline financials

Total Revenue

$1.92B

Previous: $2.77B-30.7%
EPS (adj)

$3.68

Previous: $7.07-47.9%
Avg daily BOE (boe/d)

449.9K

Previous: 380.5K+18.3%
Operating cash flow

$1.51B

Previous: $1.71B-11.5%
OCF before WC changes

$1.26B

Previous: $1.79B-29.5%
Cash capital expenditures

$711M

Previous: $468M+51.9%
Adjusted EBITDA

$1.42B

Previous: $2.07B-31.3%
Capital Expenditures

-$2.39B

Previous: -$1.29B-86.1%
Free Cash Flow

-$1.84B

Previous: $130M-1513.1%
Net Income

$556M

Previous: $1.42B-60.7%
Operating Income

$1B

Previous: $1.98B-49.4%
Gross Profit

$1.92B

Previous: $2.77B-30.7%
Cash & Equivalents

$18M

Previous: $43M-58.1%
Total Assets

$27.6B

Previous: $23.4B+17.7%
Stock-Based Comp

$16M

Previous: $13M+23.1%

Revenue & EPS history

Diamondback · Revenue · Quarterly

$1.92B

Q2 2023-30.7%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Diamondback is raising the midpoints of both total and net oil production for the full year 2023 due to production outperformance year-to-date as well as narrowing unit costs, capital expenditures and activity levels due to increased confidence in its forward outlook.

Tailwinds

  • Net production - MBOE/d 435 - 445
  • Oil production - MBO/d 260 - 262
  • Lease operating expenses $4.90 - $5.40
  • Cash G&A $0.60 - $0.75
  • Drilling, completion, capital workovers, and non-operated properties $2,330 - $2,365

Headwinds

  • Non-cash equity-based compensation $0.35 - $0.45
  • DD&A $10.00 - $10.75
  • Interest expense (net of interest income) $1.20 - $1.30
  • Gathering and transportation $1.80 - $2.00
  • Corporate tax rate 23%

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 2023

Historical avgQ2 2023

+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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