Energy earnings: Diamondback, Chesapeake top estimates

Diamondback Energy (FANG) reported quarterly results that beat estimates on both the top and bottom lines, with adjusted fourth-quarter earnings of $4.74 per share topping expectations of $4.70.

Chesapeake Energy's (CHK) fourth-quarter results were also better than expected, but the company's full-year capital expenditure guidance did disappoint.

Yahoo Finance's Ines Ferré reports the details.

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Editor's note: This article was written by Stephanie Mikulich

Video Transcript

JULIE HYMAN: Well, energy investors digest a fresh batch of quarterly results from Diamondback Energy and Chesapeake. Here with a breakdown of those numbers, Yahoo Finance's Ines Ferre. Hi, Ines.

INES FERRE: Hi, Julie. Yeah. And we have been taking a look at these stocks, particularly because both of these companies have announced mergers in recent months. So let's take a look at Diamondback with its quarterly results. Sales topping expectations. Adjusted earnings per share also topping what the Street was expecting with $4.74 a share, when Wall Street was expecting $4.70 a share.

By the way, Diamondback, which announced that it is going to be buying Endeavor, will become the third largest producer in the Permian Basin behind Chevron and behind ExxonMobil. Both of those companies also recently announcing mergers. But in the company's shareholder letter, CEO Travis Stice calling 2023 a great year for Diamondback, highlighting the company exceeded production guidance, returned money to shareholders in the form of dividends share buybacks, also touched on that merger with Endeavor saying the combination will create a must-own North American independent oil company. Year-to-date, the stock is up about 13%. And you can see in after hours, it is also higher after these results.

Going on to Chesapeake Energy, that company reporting its quarterly results with capital expenditures coming in below what the Street had been expecting. It sees capital expenditures for 2024 at anywhere between 1.25 billion to 1.35 billion. The estimate was for a little bit over 2 billion. Fourth quarter results with adjusted earnings per share coming in at $1.31 versus street estimates of $0.71. Yes, of course, it is below though what it was in the fourth quarter of 2022, because you had some tough comps with oil prices and natural gas prices where they were in 2022.

And total revenue coming in at 1-- just over $1.5 billion. Chesapeake also announcing recently that it is going to be merging with Southwestern, a gas producer. Year-to-date, the stock is flat, guys.

JOSH LIPTON: Ines, thanks for joining us. Appreciate it.