Diamondback Energy, Inc. Announces Revised Third Quarter Production and Capital Guidance

Rhea-AI Summary

Diamondback Energy (NASDAQ: FANG) has revised its Q3 2024 production and capital guidance following the completion of its merger with Endeavor Energy Resources on September 10, 2024. The updated guidance reflects the impact of this significant acquisition.

Key points from the revised guidance include:

• Q3 2024 oil production is expected to be between 319 and 321 thousand barrels of oil per day (MBO/d)
• Total production guidance ranges from 565 to 569 thousand barrels of oil equivalent per day (MBOE/d)
• Cash CAPEX for Q3 2024 is projected to be between $675 and $700 million

Diamondback Energy, headquartered in Midland, Texas, focuses on unconventional, onshore oil and natural gas reserves in the Permian Basin.

Positive

• Completed merger with Endeavor Energy Resources, potentially expanding operations and resources
• Significant oil production guidance of 319-321 MBO/d for Q3 2024
• Total production guidance of 565-569 MBOE/d for Q3 2024

Negative

• Increased cash CAPEX guidance of $675-$700 million for Q3 2024, potentially impacting short-term profitability

Insights

Financial Analyst

Diamondback Energy's revised Q3 2024 guidance reflects significant changes post-Endeavor merger. The projected oil production of 319-321 MBO/d (thousand barrels of oil per day) and total production of 565-569 MBOE/d (thousand barrels of oil equivalent per day) indicate substantial growth. This increase is likely due to the integration of Endeavor's assets.

The cash CAPEX guidance of $675-$700 million suggests considerable investment in operations. This level of spending, coupled with increased production, could lead to improved cash flows and potentially higher returns for investors. However, it's important to monitor how efficiently this capital is being deployed and its impact on the company's balance sheet.

The merger with Endeavor positions Diamondback as a major player in the Permian Basin, potentially leading to economies of scale and improved operational efficiencies. Investors should watch for synergies and cost savings in future reports to gauge the success of this strategic move.

MIDLAND, Texas, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced revised Q3 2024 production and capital guidance. This guidance has been updated to give effect to the Endeavor Energy Resources, L.P. (“Endeavor”) merger, which was completed on September 10, 2024.

REVISED THIRD QUARTER 2024 GUIDANCE

• Q3 2024 oil production guidance of 319 – 321 MBO/d (565 – 569 MBOE/d)
• Q3 2024 cash CAPEX guidance of $675 – $700 million

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.        

Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com

FAQ

What is Diamondback Energy's (FANG) revised Q3 2024 oil production guidance?

Diamondback Energy's revised Q3 2024 oil production guidance is 319-321 thousand barrels of oil per day (MBO/d).

When did Diamondback Energy (FANG) complete its merger with Endeavor Energy Resources?

Diamondback Energy completed its merger with Endeavor Energy Resources on September 10, 2024.

What is Diamondback Energy's (FANG) updated cash CAPEX guidance for Q3 2024?

Diamondback Energy's updated cash CAPEX guidance for Q3 2024 is $675-$700 million.

What is Diamondback Energy's (FANG) total production guidance for Q3 2024?

Diamondback Energy's total production guidance for Q3 2024 is 565-569 thousand barrels of oil equivalent per day (MBOE/d).