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Diamondback Energy Gives Preliminary Update on Q3 Production

Zacks Equity Research
·3 min read

Diamondback Energy, Inc. FANG recently issued a preliminary update on its third-quarter production and reiterated its fourth-quarter guidance.

The company’s third-quarter 2020 production of oil and natural gas averaged at 287,300 Boe/d with oil output of 170,000 barrels per day. The average realized unhedged crude oil price in the period was $38.75 per barrel while that of natural gas liquids was $12.09. The same for natural gas was $1.11 per thousand cubic feet. Overall, the company fetched $26.75 per barrel of oil equivalent.

Meanwhile, Diamondback Energy reaffirms its fourth-quarter production guidance of 280-290 thousand barrels of oil equivalent per day (MBOE/d) and full-year output guidance of 290-305 MBOE/d. It also reiterates its current-year cash capital expenditure guidance between $1.8 billion and $1.9 billion.

Management believes that the company can sustain fourth-quarter 2020 oil production through 2021 with a capital budget estimated to be 25-35% below its 2020 capex level, which is projected in the $1.8-1.9 billion band.

We note that Diamondback Energy’s affiliate organization Viper Energy Partners VNOM also recently provided an earlier update on its third-quarter production. The company’s third-quarter 2020 production of oil and natural gas averaged at 26,409 Boe/d with oil output of 15,829 barrels per day. The average realized unhedged crude oil price in the September quarter was $36.8 per barrel while that of natural gas liquids was $12.44. The same for natural gas was $1.07 per thousand cubic feet. Overall, the company realized $25.76 per barrel of oil equivalent.

About Diamondback Energy

Founded in 2007, Midland, TX-headquartered Diamondback Energy is an independent oil and gas exploration & production company with its primary focus on the Permian Basin, where it has around 394,000 net acres.

Diamondback Energy is set to release third-quarter 2020 results on Wednesday Nov 2, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s profit is 46 cents per share and for revenues is $708.99 million.

Zacks Rank & Key Picks

Diamondback Energy currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the energy space areGulfport Energy Corporation  GPOR and Range Resources Corporation RRC, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here

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Range Resources Corporation (RRC) : Free Stock Analysis Report
 
Gulfport Energy Corporation (GPOR) : Free Stock Analysis Report
 
Diamondback Energy, Inc. (FANG) : Free Stock Analysis Report
 
Viper Energy Partners LP (VNOM) : Free Stock Analysis Report
 
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Zacks Investment Research