In its weekly release, Baker Hughes Company (BKR) stated that the U.S. rig count was lower than the prior week's figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications. Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company's oilfie ...

It has been about a month since the last earnings report for Diamondback Energy (FANG) . Shares have lost about 1.2% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Diamondback due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Diamondback Q2 Earnings Beat Estimat ...

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In its weekly release, Baker Hughes Company (BKR) stated that the U.S. rig count was lower than the prior week's figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications. Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company's oilfie ...

Pla2na The energy market has been among the few to be eerily quiet in 2024. While stocks face heightened volatility and gold surges to consecutive all-time highs, crude oil remains stuck in the ~$70 to ~$80 range since the end of 2022. Geopolitical turbulence and tensions have occasionally caused sharp changes in the price of oil. Still, both concerns of a demand-driven decline or a supply shock surge have failed, leaving most oil producers stagnant. I've covered Diamondback Energy (NASDAQ:FANG) since 2022, ...

U.S. energy operator Diamondback Energy (FANG) reported second-quarter 2024 adjusted earnings per share of $4.52, which beat the Zacks Consensus Estimate of $4.46 and increased from the year-ago adjusted figure of $3.68. The outperformance primarily reflects stronger production and a gain in overall realization. Meanwhile, revenues of $2.5 billion rose 23.4% from the year-ago quarter's sales and outperformed the Zacks Consensus Estimate by 14%. In good news for investors, the company is using the excess cas ...

Financial Performance - The company recorded a net income of $837 million for the second quarter of 2024[120]. - Total revenues for the six months ended June 30, 2024, increased by $477 million, or 13%, to $4.3 billion compared to the same period in 2023, driven by an 8% growth in combined volumes and higher average prices[153]. - The company reported a net income of $1.14 billion for the six months ended June 30, 2024[190]. Production and Operations - Average production was 474.7 MBOE/d, with cash operating costs at $11.67 per BOE[120]. - The company raised its net production guidance for 2024 to 462 - 470 MBOE/d, up from 458 - 466 MBOE/d[130]. - Oil production guidance for 2024 is now set at 273 - 276 MBO/d, an increase from the previous range of 270 - 275 MBO/d[130]. - The company operated 5,756 gross wells as of June 30, 2024, with 2,450 horizontal wells in the Midland Basin[128]. - Daily oil production volumes increased to 274,742 BO/d for the six months ended June 30, 2024, compared to 257,293 BO/d in 2023[150]. Revenue and Sales - Oil, natural gas, and natural gas liquids revenues for Q2 2024 increased by $73 million to $2.2 billion compared to Q1 2024, driven by a 3% increase in combined volumes sold[135]. - Oil sales reached $3.865 billion, up from $3.362 billion in 2023, while natural gas sales decreased to $55 million from $117 million[150]. - Total production for Q2 2024 was 43,195 MBOE, up from 41,961 MBOE in Q1 2024, reflecting growth in production volumes[134]. Expenses and Costs - Lease operating expenses decreased to $254 million in Q2 2024 from $255 million in Q1 2024, with a per BOE cost reduction from $6.08 to $5.88[137]. - General and administrative expenses decreased to $46 million in Q2 2024 from $46 million in Q1 2024, with a per BOE cost reduction from $1.10 to $1.07[143]. - Depreciation, depletion, amortization, and accretion expenses increased to $483 million in Q2 2024 from $469 million in Q1 2024, primarily due to growth in production volumes[141]. - Production taxes for Q2 2024 were $141 million, representing 6.5% of oil, natural gas, and natural gas liquids revenue, compared to $119 million and 5.7% in Q1 2024[138]. Capital Expenditures and Investments - Capital expenditures, excluding acquisitions, totaled $637 million[121]. - The board of directors approved a 2024 capital budget of approximately $2.35 billion to $2.45 billion, primarily for drilling and infrastructure[179]. - Estimated expenditures include $2.15 billion to $2.23 billion for drilling 275 to 290 gross horizontal wells and completing 310 to 330 gross horizontal wells[179]. Debt and Liquidity - As of June 30, 2024, the company had approximately $8.5 billion in liquidity, consisting of $6.9 billion in cash and cash equivalents and $1.6 billion available under the credit facility[166]. - The company has no debt maturities until 2026, with total debt including senior notes at approximately $12.0 billion as of June 30, 2024[173]. - The company’s long-term debt increased to $10.97 billion as of June 30, 2024, compared to $5.54 billion at the end of 2023[189]. Shareholder Returns - Dividends paid to stockholders amounted to $352 million, with a declared dividend of $2.34 per share for Q3 2024[120]. - A return of capital commitment of at least 50% from 75% of free cash flow to stockholders has been approved, with a declared dividend of $2.34 per share for Q2 2024[182]. - The company has repurchased 19.3 million shares for a total cost of $2.4 billion since the inception of the stock repurchase program[183]. Market Conditions - WTI prices averaged $78.81 per Bbl for the first half of 2024, compared to $74.77 per Bbl in 2023[126]. - The average price of oil per Bbl increased to $77.30 in 2024 from $72.19 in 2023, while average natural gas price per Mcf decreased to $0.54 from $1.19[150].

Financial Data and Key Metrics Changes - The company reported an increase in drilling efficiency, achieving 26 wells per rig per year, up from 24 wells previously, and over 100 completions per crew per year, up from 80 [5][6][17]. - The breakeven price for the base dividend is now at $40 per barrel of crude, allowing for flexibility in capital allocation between share buybacks and variable dividends [9][27]. Business Line Data and Key Metrics Changes - The company has improved its capital efficiency, allowing it to reduce the number of rigs from 14 to 10 while maintaining production levels [5][6]. - The completion efficiency has also improved, with the company completing 7% more feet on a net basis, although the oil production increase was only about 1.5% at the high end of guidance [18][19]. Market Data and Key Metrics Changes - The company is focusing on improving gas pricing and reducing exposure to the Waha basin, with plans to control more of its gas molecules through pipeline commitments [14][62]. - The company has seen a significant increase in NGL production, attributed to efforts to maximize ethane extraction and reduce gas flaring [46][48]. Company Strategy and Development Direction - The company aims to leverage operational efficiencies and synergies from the Endeavor acquisition to enhance production and reduce costs [6][12]. - There is a strong focus on maintaining a flexible return of capital program, allowing for adjustments based on oil price fluctuations [7][8][27]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining operational efficiencies post-Endeavor acquisition, anticipating continued improvements in capital efficiency [6][12]. - The company is preparing for potential market volatility and is committed to building a strong balance sheet to weather downturns [27][28]. Other Important Information - The company has successfully sold various assets to reduce cash outflow burdens related to the Endeavor deal, totaling nearly $1 billion [12][13]. - The company is exploring opportunities to enhance its water management business, Deep Blue, which has shown significant growth potential [70][72]. Q&A Session Summary Question: On capital efficiencies and rig reductions - Management confirmed that drilling efficiencies have allowed a reduction in rigs while maintaining production levels, with expectations to continue this trend post-Endeavor acquisition [5][6]. Question: On shareholder return plans and oil price impacts - Management stated that the return of capital program is flexible, allowing for adjustments between share buybacks and dividends based on oil price fluctuations [7][8]. Question: On net debt reduction strategies - Management indicated that net debt reduction will primarily come from organic free cash flow generation and selective asset sales [12][13]. Question: On gas price volatility management - Management discussed strategies to improve gas pricing and reduce reliance on the Waha basin, including pipeline commitments [14][62]. Question: On drilling and completion efficiency drivers - Management highlighted that improvements in drilling and completion efficiencies are driven by a culture of execution and continuous optimization [17][18]. Question: On production guidance and lateral lengths - Management clarified that the increase in lateral lengths and well counts is part of a strategic plan to enhance production efficiency [19][61]. Question: On the Deep Blue water management business - Management expressed optimism about the growth potential of the Deep Blue business, especially with the Endeavor acquisition [70][72].

1 Investor Presentation August 2024 This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, that Diamondback Energy, Inc. ("Diamondback," the "Company" or we) makes, including statements regarding future performance; business strategy; future operations (including drilling plans and capital plans); estimate ...

Diamondback Energy (FANG) is set to release second-quarter 2024 results on Aug 5. The current Zacks Consensus Estimate for the to-be-reported quarter is a profit of $4.46 per share on revenues of $2 billion. Let's delve into the factors that might have influenced the Permian-focused oil and gas producer's performance in the June quarter. But it's worth taking a look at FANG's previous-quarter performance first. Highlights of Q1 Earnings & Surprise History In the last reported quarter, this Midland, TX-based ...