Diamondback Energy(FANG) - 2025 Q1 - Quarterly Results

Diamondback Energy, Inc. Q1 2025 Operational Update This report provides an operational update for Diamondback Energy, Inc. for Q1 2025, detailing production, financial highlights, and future operating plans First Quarter 2025 Highlights Diamondback Energy reported strong Q1 2025 operational results, including 850.7 MBOE/d average production, a $226 million derivative gain, and $575 million in share repurchases Q1 2025 Key Operational and Financial Metrics | Metric | Value | | :--- | :--- | | Average Production | 475.9 MBO/d (850.7 MBOE/d) | | Average Unhedged Oil Price | $70.95 per barrel | | Average Hedged Oil Price | $70.06 per barrel | | Cash Capital Expenditures | $942 million | | Q1 2025 Share Repurchases | 3,656,044 shares for $575 million | | Q2 2025 (to date) Share Repurchases | 1,560,200 shares for $200 million | - The company recorded a total gain on derivatives of $226 million, comprising an $85 million realized hedge gain and a $141 million unrealized hedge gain[4] - Following the Double Eagle acquisition and Q2 share repurchases to date, Diamondback has approximately 293 million shares outstanding[4] 2025 Operating Plan Update Diamondback is reviewing its 2025 operating plan due to market volatility, maintaining flexibility to reduce activity and lower its breakeven oil price - The company is closely monitoring the macroeconomic environment and reviewing its 2025 operating plan due to market volatility[3] - Diamondback has the flexibility to curtail activity to maximize free cash flow generation should low commodity prices continue or worsen[3] - The company believes it can achieve further reductions in its breakeven oil price through capital and operating cost efficiencies[3] Selected Operating Data This section details Q1 2025 production volumes and average realized prices for oil, natural gas, and natural gas liquids, including both unhedged and hedged pricing Q1 2025 Production and Average Prices | Metric | Value | | :--- | :--- | | Production Data | | | Daily oil volumes (BO/d) | 475,944 | | Daily combined volumes (BOE/d) | 850,656 | | Average Unhedged Prices | | | Oil ($ per Bbl) | $70.95 | | Natural gas ($ per Mcf) | $2.11 | | Combined ($ per BOE) | $47.77 | | Average Hedged Prices | | | Oil, hedged ($ per Bbl) | $70.06 | | Natural gas, hedged ($ per Mcf) | $3.34 | | Average price, hedged ($ per BOE) | $48.89 | Derivative Activity For Q1 2025, Diamondback anticipates a total net gain on derivative instruments of $226 million, comprising $85 million from cash settlements and $141 million non-cash gain Q1 2025 Derivative Gains (in millions) | Item | Gain (Loss) | | :--- | :--- | | Total Gain on Derivatives | $226 | | Commodity contracts | $214 | | Interest rate swaps | $11 | | 2026 WTI Contingent Liability | $2 | | Treasury locks | $(1) | | Net Cash Received on Settlements | $85 | | Commodity contracts | $86 | | Treasury locks | $(1) | Share Information For Q1 2025, weighted average basic and diluted shares outstanding were approximately 289.6 million, with total shares outstanding at 293 million after recent acquisitions and buybacks - For Q1 2025, weighted average basic and diluted shares outstanding were 289,612 thousand[4][8] - Giving effect to the closing of the Double Eagle acquisition and share repurchases to date in Q2, Diamondback currently has approximately 293 million shares outstanding[4] Company Overview Diamondback Energy, Inc. is an independent oil and natural gas company focused on the acquisition, development, and exploration of unconventional, onshore reserves in the Permian Basin - Diamondback is an independent oil and natural gas company focused on unconventional, onshore reserves in the Permian Basin[9] Forward-Looking Statements This report includes forward-looking statements concerning future performance and operations, subject to risks like commodity price volatility and regulatory changes, which could cause actual results to differ materially - The news release contains forward-looking statements regarding future performance, business strategy, and financial position, which are not guarantees of future performance[10] - Material risks include changes in oil and gas supply and demand, actions by OPEC and Russia, financial market instability, inflationary pressures, and regulatory initiatives[11] - Diamondback operates in a competitive and rapidly changing environment and disclaims any obligation to update or revise any forward-looking statements[12]