NASDAQ$FANG

Diamondback Energy Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Diamondback reported strong Q3 2021 results, highlighted by record free cash flow and increased shareholder returns.

Diamondback Energy, Inc. announced its Q3 2021 financial and operating results, featuring average production of 404.3 MBOE/d, cash flow from operating activities of $1,199 million, and free cash flow of $740 million. The company is increasing its annual dividend by 11.1% and has committed to returning 50% of free cash flow to stockholders beginning in Q4 2021.

  • Average production of 404.3 MBOE/d.
  • Cash flow from operating activities reached $1,199 million.
  • Free cash flow was a record $740 million.
  • Committed to return 50% of Free Cash Flow to stockholders beginning in Q4 2021.

Headline financials

Total Revenue

$1.91B

Previous: $720M+165.3%
EPS (adj)

$2.94

Previous: $0.62+374.2%
Avg daily BOE (boe/d)

404.3K

Previous: 26.4K+1429.5%
Operating cash flow

$1.2B

No prior period
OCF before WC changes

$1.13B

No prior period
Cash capital expenditures

$391M

No prior period
Adjusted EBITDA

$1.14B

No prior period
Capital Expenditures

-$1.49B

Previous: -$1.63B+8.3%
Free Cash Flow

-$842M

Previous: -$2.74B+69.3%
Net Income

$649M

Previous: -$1.11B+158.3%
Operating Income

$1.16B

Previous: -$1.26B+192.7%
Gross Profit

$1.91B

Previous: $720M+165.3%
Cash & Equivalents

$457M

Previous: $92M+396.7%
Total Assets

$22.6B

Previous: $18.8B+20.7%
Stock-Based Comp

$14M

Previous: $9M+55.6%

Revenue & EPS history

Diamondback · Revenue · Quarterly

$1.91B

Q3 2021+165.3%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Diamondback provided full year 2021 oil production guidance of 222 - 223 MBO/d (370 - 372 MBOE/d). Lowering full year 2021 cash CAPEX guidance to $1.49 - $1.53 billion. Initiating Q4 2021 oil production guidance of 221 - 225 MBO/d (368 - 375 MBOE/d) and Q4 2021 cash CAPEX guidance of $435 - $475 million.

Tailwinds

  • Full year 2021 oil production guidance increased to 222 - 223 MBO/d (370 - 372 MBOE/d).
  • Full year 2021 cash CAPEX guidance lowered to $1.49 - $1.53 billion.
  • Q4 2021 oil production guidance initiated at 221 - 225 MBO/d (368 - 375 MBOE/d).
  • Q4 2021 Permian Basin oil production guidance initiated at 218 - 222 MBO/d (363 - 370 MBOE/d).
  • Diamondback believes it can maintain Q4 2021 Permian Basin oil production through full year 2022 assuming Q4 2021's run rate CAPEX spend

Headwinds

  • Still seeing excess oil supply and varying demand recovery profiles across the globe.
  • Inflationary pressures seen on well costs.
  • Committing to maintaining our fourth quarter 2021 Permian oil volumes throughout next year.
  • Expect to distribute 50% of quarterly Free Cash Flow beginning with the fourth quarter’s performance.
  • Expect to be in a position to maximize Free Cash Flow, grow our dividend, further pay down debt and overall return more capital to stockholders.

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 Q3 2021

Historical avgQ3 2021

+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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