NASDAQ$FANG

Diamondback Energy Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced financial and operating results for the third quarter ended September 30, 2022.

Diamondback Energy reported a solid third quarter, with a focus on cost control and maximizing returns for stockholders. The company generated nearly $1.2 billion of Free Cash Flow, returning approximately $874 million to stockholders through share repurchases and dividends. They also announced the pending acquisition of FireBird Energy assets.

  • Average production of 390.6 MBOE/d.
  • Cash flow from operating activities of $1.93 billion.
  • Free Cash Flow of $1.16 billion.
  • Repurchased 3,922,418 shares of common stock for $472 million.

Headline financials

Total Revenue

$2.44B

Previous: $1.91B+27.6%
EPS (adj)

$6.48

Previous: $2.94+120.4%
Avg daily BOE (boe/d)

390.6K

Previous: 404.3K-3.4%
Operating cash flow

$1.93B

Previous: $1.2B+60.6%
OCF before WC changes

$1.65B

Previous: $1.13B+46.2%
Cash capital expenditures

$491M

Previous: $391M+25.6%
Adjusted EBITDA

$1.91B

Previous: $1.14B+68.2%
Capital Expenditures

-$2.03B

Previous: -$1.49B-35.8%
Free Cash Flow

-$841M

Previous: -$842M+0.1%
Net Income

$1.18B

Previous: $649M+82.4%
Operating Income

$1.61B

Previous: $1.16B+38.7%
Gross Profit

$2.44B

Previous: $1.91B+27.6%
Cash & Equivalents

$27M

Previous: $457M-94.1%
Total Assets

$23.8B

Previous: $22.6B+5.3%
Stock-Based Comp

$14M

Previous: $14M+0.0%

Revenue & EPS history

Diamondback · Revenue · Quarterly

$2.44B

Q3 2022+27.6%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Diamondback provided full year 2022 guidance, updated to include the estimated fourth quarter contribution related to the pending FireBird acquisition, which is expected to close on November 30, 2022.

Tailwinds

  • Net production is expected to be 385 - 386 MBOE/d.
  • Oil production is expected to be 223 - 224 MBO/d.
  • Lease operating expenses are expected to be $4.50 - $5.00 per BOE.
  • Cash G&A is expected to be $0.65 - $0.80 per BOE.
  • Gathering and transportation costs are expected to be $1.80 - $1.90 per BOE.

Headwinds

  • Cash tax rate is expected to be 10% - 15% of pre-tax income.
  • Capital expenditures for drilling, completion, capital workovers, and non-operated properties are expected to be $1,700 - $1,715 million.
  • Midstream capital expenditures are expected to be approximately $85 million.
  • Infrastructure and environmental capital expenditures are expected to be approximately $150 million.
  • Corporate tax rate is expected to be 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 Q3 2022

Historical avgQ3 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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