Diamondback Q4 Earnings Beat Estimates on Higher Production

Core Viewpoint - Diamondback Energy reported strong fourth-quarter 2024 results with adjusted earnings per share of $3.64, exceeding expectations, but down from $4.74 a year ago due to lower overall realization [1][2]. Financial Performance - Revenues reached $3.7 billion, a 67% increase year-over-year, and surpassed the Zacks Consensus Estimate by 9.2% [2]. - The company repurchased $402 million in shares during the fourth quarter and an additional $210 million in the current quarter [3]. - A quarterly cash dividend of $1 per share was declared, marking an 11% increase sequentially [3]. Production & Realized Prices - Average production was 883,424 BOE/d, up 91% year-over-year, with oil comprising 54% of total production [4]. - The average realized oil price was $69.48 per barrel, down 9% from $76.42 a year ago, while the average realized natural gas price fell to 48 cents per Mcf from $1.29 [5]. Costs & Financial Position - Cash operating costs decreased to $10.30 per BOE from $10.83 in the prior year, reflecting lower lease operating expenses [6]. - Capital expenditures totaled $933 million, with $834 million allocated to drilling and completion [7]. - Free cash flow for the fourth quarter was $1.4 billion, with $161 million in cash and cash equivalents and $12.1 billion in long-term debt, resulting in a debt-to-capitalization ratio of 30.6% [7]. Guidance - The company anticipates production of 883,000-909,000 BOE/d in 2025, with oil volumes expected between 485,000 and 498,000 barrels per day [8]. - Capital spending is projected to be between $3.8 billion and $4.2 billion [8].