Diamondback Energy (FANG) for high dividend yield

[dan_s]

Zacks Equity Research
Thu, November 16, 2023 at 6:10 AM CST

U.S. energy operator Diamondback Energy FANG reported third-quarter 2023 adjusted earnings per share of $5.49, beating the Zacks Consensus Estimate of $4.90. The outperformance primarily reflects strong production and lower costs.

However, the bottom line declined from the year-ago adjusted figure of $6.48 due to a significant drop in overall realization.

Meanwhile, revenues of $2.3 billion fell 4% from the year-ago quarter’s sales but outperformed the Zacks Consensus Estimate by $163 million.

BUY FANG and EOG for High Yield Dividends

In good news for investors, the company is using the excess cash to reward them with dividends and buybacks. As part of that, FANG’s board of directors declared a quarterly cash dividend of 84 cents per share to its common shareholders of record on Nov 16. The payout will be made on Nov 24. In addition to the regular dividend, FANG declared a special dividend of $2.53 per share.

The company also executed $56 million of share repurchases during the third quarter of 2023 at $136.59 apiece.