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Diamondback Energy (NASDAQ: FANG) +1.6% post-market Tuesday, after reporting better-than-expected fourth-quarter adjusted earnings, helped by strong increases in oil and gas production.
Fourth-quarter net income fell to $960 million, or $5.34/share, from $1.01 billion, or $5.62/share, in the prior-year quarter, while revenue fell increased by 10% y/y to $2.23 billion.
Diamondback (FANG) reported that production increased 18% y/y to 462.6k boe/d, including 273.1k bbl/d of oil, from 391.4k boe/d in the year-ago quarter.
The company drilled 80 gross wells in the Midland Basin and four gross wells in the Delaware Basin during the fourth quarter, and turned 50 operated wells in the Midland Basin and nine gross wells in the Delaware Basin into production.
Strong production helped offset a decline in prices, and the unhedged realized price of the company’s oil fell to $76.42 a barrel from $80.37 a barrel in the year-earlier quarter.
For the full year, Diamondback (FANG) sees total production of 458,000-466,000 boe/d, including oil production of 270,000-275,000 bbl/d; For the first quarter, the company expects total production of 458,000-464,000 boe/d, including 270,000-274,000 bbl/d of oil.
The company said it expects to drill 265-285 gross wells and complete 300-320 gross wells with an average lateral length of approximately 11,500 feet in 2024.
Also: Letter to Shareholders issued by Diamondback Energy