NASDAQ$FANG

Diamondback Energy Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced financial and operating results, demonstrating strong production and free cash flow generation.

Diamondback Energy reported a strong fourth quarter in 2022, marked by average production of 391.4 MBOE/d, net cash provided by operating activities of $1.44 billion, and free cash flow of $1.13 billion. The company increased its annual base dividend by 7% and declared a variable cash dividend, returning a significant portion of free cash flow to stockholders through dividends and share repurchases. Diamondback also closed acquisitions of FireBird Energy LLC and Lario Permian, LLC, expanding its asset base.

  • Average production reached 391.4 MBOE/d.
  • Net cash from operating activities totaled $1.44 billion.
  • Free cash flow amounted to $1.13 billion.
  • Share repurchases of 2,344,850 shares for $316 million.

Headline financials

Total Revenue

$2.03B

Previous: $2.02B+0.4%
EPS (adj)

$5.29

Previous: $3.63+45.7%
Avg daily BOE (boe/d)

391.4K

No prior period
Operating cash flow

$1.44B

Previous: $1.17B+23.4%
OCF before WC changes

$1.67B

Previous: $1.21B+38.5%
Cash capital expenditures

$542M

Previous: $434M+24.9%
Adjusted EBITDA

$1.64B

Previous: $1.26B+30.5%
Free Cash Flow

$1.13B

Previous: $772M+46.4%
Net Income

$1.03B

Previous: $1.05B-2.2%
Operating Income

$1.26B

Previous: $1.31B-4.2%
Gross Profit

$1.32B

Previous: $1.35B-2.4%
Cash & Equivalents

$157M

Previous: $654M-76.0%
Total Assets

$26.2B

Previous: $22.9B+14.5%
Stock-Based Comp

$13M

Previous: $14M-7.1%

Revenue & EPS history

Diamondback · Revenue · Quarterly

$2.03B

Q4 2022+0.4%vs Q4 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Diamondback Energy provided guidance for the full year 2023, including production and capital expenditure estimates. The company expects to produce between 256,000 and 262,000 barrels of oil per day and spend approximately $2.6 billion in capex. They also provided Q1 2023 production and cash tax guidance.

Tailwinds

  • Full year 2023 oil production guidance of 256 - 262 MBO/d (430 - 440 MBOE/d)
  • Full year 2023 cash CAPEX guidance of $2.50 - $2.70 billion
  • The Company expects to drill between 325 and 345 gross (293 - 311 net) wells and complete between 330 and 350 gross (297 - 315 net) wells with an average lateral length of approximately 10,500 feet in 2023
  • Q1 2023 oil production guidance of 248 - 252 MBO/d (415 - 422 MBOE/d)
  • Q1 2023 cash CAPEX guidance of $625 - $675 million

Headwinds

  • Unit costs ($/BOE) Lease operating expenses, including workovers $5.00 - $5.50
  • G&A Cash G&A $0.65 - $0.80
  • Non-cash equity-based compensation $0.40 - $0.50
  • DD&A $9.25 - $10.25
  • Interest expense (net of interest income) $1.30 - $1.40

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 Q4 2022

Historical avgQ4 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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