Diamondback Energy (NASDAQ:FANG) soared 1.6% in after-hours trading on Tuesday following an impressive Q4 earnings report, which surpassed analysts’ expectations. The company’s stellar performance was underpinned by robust growth in oil and gas production.
Though Q4 net income dipped to $960 million, or $5.34 per share, from $1.01 billion, or $5.62 per share, in the year-earlier quarter, revenues climbed 10% year-over-year to reach $2.23 billion.
Diamondback (FANG) reported a remarkable 18% year-on-year surge in production, reaching 462.6 thousand barrels of oil equivalent per day, including 273.1 thousand barrels per day of oil, up from 391.4 thousand barrels of oil equivalent per day in the year-ago quarter.
During Q4, the company drilled 80 gross wells in the Midland Basin and four gross wells in the Delaware Basin. Furthermore, Diamondback turned 50 operated wells to production in the Midland Basin and nine gross wells in the Delaware Basin.
The remarkable surge in production helped offset a decline in prices. The company’s unhedged realized price for oil dropped to $76.42 per barrel from $80.37 per barrel in the year-ago quarter.
For the full year, Diamondback (FANG) anticipates total production to range between 458,000 and 466,000 barrels of oil equivalent per day, with oil production expected to fall between 270,000 and 275,000 barrels per day. In Q1, the company projects total output between 458,000 and 464,000 barrels of oil equivalent per day, including 270,000 to 274,000 barrels per day of oil.
The company also disclosed plans to drill 265-285 gross wells and complete 300-320 gross wells, with an average lateral length of approximately 11,500 feet in 2024.
Additionally, Diamondback Energy issued a comprehensive Letter to stockholders
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