Diamondback Energy, Inc. FANG released its second-quarter results after Monday's closing bell. Here's a look at the details from the report. FANG stock is moving. See the chart here.The Details: Diamondback Energy reported quarterly earnings of $2.67 per share, which missed the analyst consensus estimate of $2.92Quarterly revenue came in at $3.67 billion, which beat the Street estimate of $3.36 billion and is up from revenue of $2.48 billion from the same period last year.Read Next: Opendoor Stock Soars As ...

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $1.24 billion for Q1 2025, reflecting a significant sequential growth of 48% [7][14] - Revenue for Q1 was $4.61 billion, showing a 3% sequential decline but a 7% year-over-year increase [13][14] - The net result was a loss of $10 million, an improvement from a loss of $284 million in Q4 2024 [16][17] - CapEx for Q1 was $1.21 billion, with 75% allocated to unconventional assets, aligning with the annual guidance of $5 billion to $5.2 billion [17][18] Business Line Data and Key Metrics Changes - Shale oil production increased by 31% year-over-year, now representing 55% of total oil production [9][19] - The downstream segment achieved a record refining utilization rate of 94%, processing 318,000 barrels per day [10][27] - The company signed an MOU with Globant to accelerate digital transformation, focusing on AI implementation [11] Market Data and Key Metrics Changes - Oil export to Chile grew by 34% year-over-year, reaching 36,000 barrels per day [20] - Natural gas production increased by 9% sequentially, delivering over 37 million cubic meters per day [20] - Local fuel prices increased by 2% sequentially and 1% year-over-year, while the market share remained at 56% [26][27] Company Strategy and Development Direction - The company is focusing on reducing exposure to mature fields and enhancing shale production as part of its four-pillar plan [7][19] - A new business structure was implemented in 2025, splitting the Gas and Power segment into LNG and Integrated Gas and New Energies [6] - The company aims to achieve an annual average Brent price of $72.5 per barrel for 2025 [16][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid price volatility, indicating a breakeven level of $60 per barrel for EBITDA [39] - The company anticipates a reduction in leverage as it divests from mature fields, expecting to reach a net leverage ratio of 1.5 to 1.6 times by year-end [34][72] - Future CapEx adjustments will depend on market conditions, with management indicating flexibility in response to price changes [45][73] Other Important Information - The company reported a negative free cash flow of $957 million in Q1, primarily due to the performance of mature fields [18][31] - The company is actively refinancing its debt, with a focus on local market opportunities [92] - The LNG projects are progressing, with FID expected for the Southern Energy JV by July 2025 [51][82] Q&A Session Summary Question: Current Brent breakeven level in terms of EBITDA and cash flow - Management indicated that every $10 reduction in Brent results in a $900 million impact on EBITDA, with a breakeven level around $60 [39] Question: Required CapEx to maintain current production - The required CapEx to maintain production is estimated at $2 billion [40] Question: Flexibility on CapEx and activity levels amid current oil price scenario - Management stated they would adjust their plans if necessary but are currently not considering changes [44] Question: Impact of divestment of mature assets on cash flow - The impact was around $230 million, with expectations of minimal further impact as divestments progress [49][50] Question: Steps for final investment decision on LNG projects - FID for the Southern Energy JV is expected by July, with ongoing negotiations for other projects [51][52] Question: Fuel pricing strategy and market share expectations - The pricing strategy is aligned with international market conditions, and the company expects to maintain its market share [56] Question: Update on Vaca Muerta Sur and gas pipeline negotiations - The company is on track for initial production by the end of 2026, with ongoing discussions for pipeline investments [60][63] Question: Divestment of Nitro Fuels and production contribution - The production contribution from divested blocks is minimal, with a focus on improving production from Vaca Muerta [66][68] Question: CapEx guidance and affiliate contributions - The $5 billion CapEx guidance does not include contributions to affiliates, which are part of ongoing infrastructure projects [77][80]

Financial Data and Key Metrics Changes - The company reported an adjusted EBITDA of $1,240 million, reflecting a sequential growth of 48% due to divestment in mature fields and improved refining and marketing margins [7][13][14] - Revenue for Q1 was $4,610 million, showing a 3% sequential decline but a 7% year-over-year increase, primarily driven by shale activity and higher local fuel prices [12][13] - The net result was a loss of $10 million, significantly improved from a loss of $284 million in Q4 last year, attributed to higher adjusted EBITDA and lower one-off costs [14][15] Business Line Data and Key Metrics Changes - Shale oil production increased by 31% year-over-year, now representing 55% of total oil production, with total hydrocarbon production rising by approximately 5% [8][18] - The downstream segment achieved a record high refining utilization of 94%, processing 318,000 barrels per day, and refining margins increased by 28% sequentially to $14.3 per barrel [9][26] Market Data and Key Metrics Changes - Oil exports to Chile grew by 34% year-over-year, reaching 36,000 barrels per day, while natural gas production increased by 9% sequentially [19][20] - Local fuel prices increased by 2% sequentially and 1% year-over-year, with the company maintaining a market share of 56% [25][26] Company Strategy and Development Direction - The company has restructured its business segments, splitting the Gas and Power segment into LNG and Integrated Gas and New Energies, and reallocating midstream gas business [6] - The focus remains on increasing shale production and operational efficiency, with plans to replicate real-time intelligence centers across other refineries [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current uncertain price environment, indicating a breakeven level of $60 per barrel for EBITDA [37][39] - The company anticipates continued growth in shale production and aims to achieve an annual target of over 165,000 barrels per day [18][23] Other Important Information - The company signed multiple MOUs and agreements to advance LNG projects, with expectations for operational vessels by 2027 and 2028 [10][11][12] - CapEx for Q1 was $1,210 million, with 75% allocated to unconventional assets, aligning with the annual guidance of $5 billion to $5.2 billion [16][17] Q&A Session Summary Question: Current resilience amid price uncertainty and breakeven levels - Management indicated that every $10 reduction in oil prices impacts EBITDA by approximately $900 million, with a required CapEx of $2 billion to maintain current production levels [37][39] Question: Flexibility on CapEx and potential buyer financing issues - Management stated that they would adjust their plans if necessary but are currently not in a position to make drastic changes due to market volatility [42][43] Question: Impact of mature asset divestments on cash flow - The company reported a $230 million cash flow impact from mature assets, with expectations of minimal further impact as divestments progress [48][50] Question: Steps for final investment decisions on LNG projects - Management outlined that FID for the Southern Energy JV is expected by July, with ongoing processes for other LNG projects [51][52] Question: Fuel pricing strategy and market share expectations - The pricing strategy is aligned with international market conditions, and the company expects to maintain its market share despite price adjustments [56][57] Question: Update on Vaca Muerta Sur and pipeline negotiations - Management confirmed timelines for production increases and ongoing negotiations for gas pipeline investments, emphasizing the importance of favorable tariffs [60][62]

Financial Data and Key Metrics Changes - Revenues reached $19.3 billion in 2024, marking an 11% annual increase driven by rebounded fuel prices and a rise in oil exports [23] - Adjusted EBITDA totaled $4.7 billion in 2024, reflecting a 15% annual increase, mainly boosted by higher revenues in hydrocarbon production [23] - Net results improved substantially, posting a gain of $2.4 billion in 2024 compared to a loss of $1.3 billion in the previous year [24] - Net debt rose to $7.4 billion, a 9% increase from 2023, but the net leverage ratio was successfully reduced to 1.6 times [24][42] Business Line Data and Key Metrics Changes - In the upstream segment, total hydrocarbon production amounted to 536,000 barrels of oil equivalent per day in 2024, an increase of 4% versus 2023, with shale output representing 53% of the total [25] - Crude oil production reached 257,000 barrels per day, showing a 6% annual growth, while natural gas production grew 3% to 37.4 million cubic meters per day [26] - In the downstream segment, processing levels reached 301,000 barrels per day in 2024, a 2% increase from 2023, with a refined utilization rate of 92% [34] Market Data and Key Metrics Changes - YPF became the largest oil exporter in Argentina in 2024, with oil export revenues nearly tripling to around $1 billion, averaging 35,000 barrels per day [18] - The gap to import parity for fuel prices decreased from 20% in 2023 to just 2% in 2024, despite significant currency devaluation [18][34] - Fuel sales volumes decreased by 7% in 2024 to 13.9 million cubic meters, mainly due to exceptionally high demand in 2023 [34] Company Strategy and Development Direction - The company is focusing on increasing shale oil production share from 50% to a minimum of 80% and reallocating investments towards Vaca Muerta [5][6] - YPF is leading the development of midstream projects, including a new oil export pipeline, aiming to ramp up production to 180,000 barrels per day by the second half of 2026 [6] - The company is committed to exiting mature fields to eliminate losses and inefficiencies, with significant progress made in asset transfers [12][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets, particularly in shale oil, and highlighted the importance of operational efficiencies [30][31] - The company anticipates sustained growth in 2025, focusing on its most profitable asset, shale oil from Vaca Muerta [17] - Management acknowledged challenges from mature fields and adverse weather conditions but remains optimistic about future performance [20][24] Other Important Information - The company reported a negative free cash flow of $760 million in 2024, impacted by mature fields and weather conditions [21][39] - YPF plans to hold an Investor Day on April 11 to present its five-year plan and key strategic drivers [44] Q&A Session Summary Question: Update on Vaca Muerta expansion and confidence in production targets - Management expressed confidence in delivering production targets by Q4 2026, citing strong partnerships and operational capabilities [47][50] Question: Current crude oil selling prices and CapEx reduction considerations - Management indicated that crude oil prices are aligned with import parity and emphasized a strategy to avoid price spikes [54][58] - CapEx adjustments will be considered if oil prices decline significantly, but the company is resilient to low prices [62] Question: Free cash flow expectations for 2025 and LNG project updates - Management confirmed plans for neutral cash flow in 2025 and provided a positive outlook on LNG projects [69][70] Question: Interest in potential M&A activity in Argentina - Management stated that while YPF is open to opportunities, there are currently no plans to acquire additional refineries [81][83]

Financial Data and Key Metrics Changes - Revenues reached $19.3 billion in 2024, marking an 11% annual increase driven by rebounded fuel prices and a rise in oil exports [26] - Adjusted EBITDA totaled $4.7 billion in 2024, reflecting a 15% annual increase, mainly boosted by higher revenues in hydrocarbon production [26] - Net results improved substantially, posting a gain of $2.4 billion in 2024 compared to a loss of $1.3 billion in the previous year [27] - Negative free cash flow of $760 million was reported in 2024, despite improved EBITDA [23][42] Business Line Data and Key Metrics Changes - In the upstream segment, total hydrocarbon production amounted to 536,000 barrels of oil equivalent per day in 2024, an increase of 4% versus 2023, with shale output representing 53% of the total [28][29] - Crude oil production reached 257,000 barrels per day, showing a 6% annual growth, while natural gas production grew 3% to 37.4 million cubic meters per day [29] - In the downstream segment, processing levels were 301,000 barrels per day in 2024, 2% higher than 2023, driven by refinery improvements [37] Market Data and Key Metrics Changes - YPF became the largest oil exporter in Argentina in 2024, with oil export revenues nearly tripling to around $1 billion [20] - The company maintained a strong fuel sales market share of 56% despite a 7% decrease in fuel sales volumes in 2024 [37] - The gap to import parity for fuel prices decreased from 20% in 2023 to just 2% in 2024 [20][36] Company Strategy and Development Direction - YPF is focusing on increasing shale oil production share from 50% to a minimum of 80% and reallocating investments towards Vaca Muerta [6][7] - The company is leading the development of midstream projects, including a new oil export pipeline, aiming to ramp up production to 180,000 barrels per day by the second half of 2026 [7][40] - A strategic exit from mature fields is underway to eliminate losses and focus on more profitable assets [14][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production targets and emphasized the importance of operational efficiencies [54][75] - The company anticipates sustained growth in 2025, concentrating efforts on shale oil production [19] - Management acknowledged challenges from mature fields and adverse weather conditions but expects these issues to be resolved with the exit program [22][42] Other Important Information - YPF successfully issued multiple bonds in 2024, including a $1.1 billion international bond, to refinance existing debt and support operations [13][44] - The company plans to hold an Investor Day on April 11 to present its five-year plan and discuss key strategic initiatives [47] Q&A Session Summary Question: What is the expected ramp-up for Vaca Muerta expansion? - Management is confident in delivering 180,000 barrels by Q4 2026, citing strong partnerships and operational capabilities [50][54] Question: What are the current crude oil selling prices and CapEx considerations for 2025? - Management indicated that crude prices are aligned with import parity and emphasized resilience to low prices, with CapEx adjustments possible if prices decline significantly [57][66] Question: What is the free cash flow outlook for 2025? - Management confirmed plans for neutral cash flow in 2025, with further details to be provided at the Investor Day [74] Question: Update on LNG projects and lifting costs? - Management expressed optimism about LNG projects and highlighted ongoing efforts to maintain lifting costs through efficiency improvements [76]