Diamondback Q1 Earnings Beat Estimates on Higher Production

Core Insights - Diamondback Energy reported first-quarter 2025 adjusted earnings per share of $4.54, exceeding the Zacks Consensus Estimate of $4.09 and the previous year's earnings of $4.50, driven by strong production and lower costs despite a decline in oil realization [1] - Revenues reached $4 billion, an 82% increase from the same quarter last year, and surpassed the Zacks Consensus Estimate by 8.1% [1] Production & Realized Prices - Average production was 850,656 barrels of oil equivalent per day (BOE/d), up 84.5% year-over-year, although slightly below the estimate of 850,688.7 BOE/d [3] - Crude oil output increased by 72% and natural gas output by 99% year-over-year, with natural gas liquids volumes rising by 96% [3] - The average realized oil price was $70.95 per barrel, down 5.5% from $75.06 a year ago, while the average realized natural gas price surged to $2.11 per thousand cubic feet (Mcf) from 99 cents [4] Costs & Financial Position - Cash operating costs decreased to $10.48 per BOE from $11.52 in the prior-year quarter, reflecting lower lease operating expenses and a 21.2% reduction in gathering, processing, and transportation expenses [5] - Capital expenditure totaled $942 million, with $864 million allocated to drilling and completion, and adjusted free cash flow reached $1.6 billion [6] - As of March 31, the company had approximately $1.8 billion in cash and cash equivalents and $13 billion in long-term debt, resulting in a debt-to-capitalization ratio of 23.7% [6] Guidance - The company expects to produce between 857,000 and 900,000 BOE/d in 2025, a slight reduction from previous projections, with oil volumes anticipated to be between 480,000 and 495,000 barrels per day [7] - Capital spending is forecasted to be between $3.4 billion and $3.8 billion, down from earlier estimates of $3.8 billion to $4.2 billion [7]