Diamondback Energy(US:FANG)2024-08-07 20:01Financial 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].