Diamondback Energy (FANG) Q1 Results - May 4

[dan_s]

Diamondback Energy, Inc. Announces First Quarter 2020 Financial and Operating Results

FIRST QUARTER 2020 HIGHLIGHTS

Average production of 201.4 MBO/d (321.1 MBOE/d), with average oil production up 3% over Q4 2019 and up 12% over Q1 2019 < Compares to my forecast of Q1 production of 308.0 MBoepd.

Net loss of $272 million; adjusted net income of $230 million, or $1.45 per diluted share < Compares to my forecast of $118 million net income, or $0.75 per share.

Consolidated Adjusted EBITDA of $713 million; adjusted EBITDA net of non-controlling interest of $670 million < Compares to my forecast of $626 million EBITDA.

Capital expenditures of $790 million; turned 80 gross operated horizontal wells to production

Declared Q1 2020 cash dividend of $0.375 per share payable on May 21, 2020; implies a 3.7% annualized yield based on the May 1, 2020 share closing price of $40.28

Standalone liquidity of $1.9 billion as of March 31, 2020

Q1 2020 cash operating costs of $8.52 per BOE; including cash general and administrative ("G&A") expenses of $0.51 per BOE
-----------------------------
I will post my updated forecast/valuation model to the EPG website this evening.

[dan_s]

I have updated my forecast/valuation for FANG. I am increasing my valuation by $7 to $58/share.
> FANG now has a very high percentage of their 2020 oil production hedged.
> They have locked in $2.0 to $2.1 billion cash flow from operations, which locks in enough FCF to keep paying dividends this year.
> Q1 production of 321,057 Boepd will be high point for 2020, but they will be in great shape heading into 2021.

This one is a perfect example of "Survive 2020 to Thrive in 2021".