Diamondback Energy(FANG) - 2024 Q4 - Annual Results

Production and Reserves - Average production for Q4 2024 was 475.9 MBO/d (883.4 MBOE/d) with full year 2024 average production of 337.0 MBO/d (598.3 MBOE/d) [4] - Proved reserves as of December 31, 2024 were 3,557 MMBOE, a 63% increase year over year, with proved developed producing reserves up 59% to 2,385 MMBOE [23] - Daily oil production increased to 475,924 BO/d in Q4 2024, up from 273,087 BO/d in Q4 2023, representing a growth of 74.3% [44] - The company expects net production for 2025 to be between 883 and 909 MBOE/d, with oil production projected at 485 to 498 MBO/d [30] - The company expects to drill between 446 - 471 gross wells and complete between 557 - 592 gross wells in 2025 [9] Financial Performance - Net cash provided by operating activities for Q4 2024 was $2.3 billion, totaling $6.4 billion for the full year 2024 [12] - Consolidated Adjusted EBITDA for Q4 2024 was $2.6 billion, with full year 2024 Adjusted EBITDA totaling $7.7 billion [14] - Total revenues for Q4 2024 reached $3,711 million, a 66.7% increase from $2,228 million in Q4 2023 [40] - Net income attributable to Diamondback Energy, Inc. for Q4 2024 was $1,074 million, compared to $960 million in Q4 2023, reflecting an increase of 11.9% [40] - Adjusted EBITDA for the year ended December 31, 2024, was $7,282 million, up from $6,099 million in 2023, reflecting a 19.43% growth [48] - Free Cash Flow for the year ended December 31, 2024, reached $3,642 million, compared to $2,923 million in 2023, indicating a 24.59% increase [57] Dividends and Shareholder Returns - The company increased its annual base dividend by 11% to $4.00 per share, declaring a Q4 2024 cash dividend of $1.00 per share [4] - The company repurchased 2,326,247 shares of common stock in Q4 2024 for $402 million, and a total of 5,525,276 shares for $959 million in 2024 [4] Costs and Expenses - Cash operating costs for Q4 2024 were $10.30 per BOE, including lease operating expenses of $5.67 per BOE [17] - Total costs and expenses for Q4 2024 were $2,299 million, a significant rise from $1,023 million in Q4 2023, marking an increase of 124.4% [40] - The average cost per BOE for lease operating expenses was $5.67 in Q4 2024, down from $5.97 in Q4 2023, reflecting a decrease of 5.0% [44] - The company incurred merger and integration expenses of $30 million in Q4 2024, compared to no such expenses in Q4 2023 [40] Capital Expenditures and Investments - Diamondback's total capital expenditures for 2025 are projected to be between $3,800 million and $4,200 million, with Q1 2025 capital expenditures estimated at $900 million to $1,000 million [30] - The total acquisition costs for proved properties in 2024 were $21,275 million, a significant increase from $1,314 million in 2023 [28] - The company's total cash capital expenditures for the year ended December 31, 2024, were $2,867 million, up from $2,701 million in 2023, reflecting a 6.15% increase [57] Debt and Cash Position - The company reported a net debt of $3,500 million as of December 31, 2024, down from $4,000 million in 2023, showing a reduction of 12.50% [58] - Diamondback Energy's total debt as of December 31, 2024, was $13,160 million, an increase of 46 million from the previous quarter [60] - The company's net debt stood at $12,999 million, up from $12,744 million in the prior quarter [60] - The company reported cash and cash equivalents of $(161) million as of December 31, 2024, a decrease from $(370) million in the previous quarter [60] Future Outlook - The pending acquisition of Double Eagle is expected to close on April 1, 2025, which will contribute to the company's future production and financial performance [29] - The estimated cash taxes for Q1 2025 are projected to be between $280 million and $340 million [30] - The average lateral length for wells in 2025 is expected to be approximately 11,500 feet, with Midland Basin well costs per lateral foot estimated at $555 to $605 [30] Derivative Instruments and Hedging - For Q1 2025, Diamondback has long puts on Crude Brent Oil at a volume of 52,000 Bbls/day with a long put price of $60.00/Bbl [62] - The company has long puts on WTI (Cushing) at a volume of 142,000 Bbls/day with a long put price of $56.58/Bbl for Q1 2025 [62] - Costless collars for natural gas at Henry Hub are set at 750,000 Mmbtu/day with a long put price of $2.52/Mmbtu for Q1 2025 [62] - The ceiling price for natural gas in the costless collars is $5.26/Mmbtu for Q1 2025 [62] - The deferred premium for long puts on Crude Brent Oil is projected to be $-1.48/Bbl for Q1 2025 [62] - The company has a natural gas basis swap at Waha Hub with a volume of 670,000 Mmbtu/day and a price of $-0.82 for Q1 2025 [62]