Diamondback Energy (FANG) Q4 Results - Feb 25
Posted: Tue Feb 25, 2025 12:11 pm
On February 24th Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) announced financial and operating results for the fourth quarter and full year ended December 31, 2024.
FOURTH QUARTER 2024 HIGHLIGHTS
Average production of 475.9 MBO/d (883.4 MBOE/d) < Exceeded my forecast of 850,000 Boepd.
Net cash provided by operating activities of $2.3 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.3 billion < Beat my forecast of $2.164 billion.
Cash capital expenditures of $933 million
Free Cash Flow of $1.3 billion; Adjusted Free Cash Flow of $1.4 billion
Increased annual base dividend by 11% to $4.00 per share; declared Q4 2024 base cash dividend of $1.00 per share payable on March 13, 2025; implies a 2.6% annualized yield based on February 21, 2025 closing share price of $156.12
Repurchased 2,326,247 shares of common stock in Q4 2024 for $402 million, excluding excise tax (at a weighted average price of $172.91 per share); repurchased 1,254,600 shares of common stock to date in Q1 2025 for $210 million, excluding excise tax (at a weighted average price of $167.42 per share)
Total Q4 2024 return of capital of $694 million; represents ~51% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q4 2024 base dividend
Closed previously announced TRP Energy ("TRP") transaction in December 2024
FULL YEAR 2024 HIGHLIGHTS
Average production of 337.0 MBO/d (598.3 MBOE/d)
Net cash provided by operating activities of $6.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $6.5 billion
Cash capital expenditures of $2.9 billion
Free Cash Flow (as defined and reconciled below) of $3.6 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $4.0 billion
Declared total base-plus-variable dividends of $6.21 per share for the full year 2024
Repurchased 5,525,276 shares of common stock in 2024 for $959 million, excluding excise tax (at a weighted average price of $173.57 per share)
Total full year 2024 return of capital of $2.3 billion; represents ~57% of FY 2024 Adjusted Free Cash Flow (as defined and reconciled below)
As previously announced, closed merger with Endeavor Energy Resources, L.P. ("Endeavor") on September 10, 2024
Proved reserves as of December 31, 2024 of 3,557 MMBOE (1,761 MMBO, 50% oil), up 63% year over year; proved developed producing ("PDP") reserves of 2,385 MMBOE (1,121 MMBO, 47% oil, 67% of proved reserves), up 59% year over year
2025 GUIDANCE HIGHLIGHTS
Please note the guidance below gives effect to the pending acquisition of Double Eagle IV Midco, LLC (“Double Eagle”) from April 1, 2025 onward.
Full year 2025 oil production guidance of 485 - 498 MBO/d (883 - 909 MBOE/d)
Full year 2025 cash capital expenditures guidance of $3.8 - $4.2 billion
The Company expects to drill between 446 - 471 gross (406 - 428 net) wells and complete between 557 - 592 gross (526 - 560 net) wells with an average lateral length of approximately 11,500 feet in 2025
Q1 2025 oil production guidance of 470 - 475 MBO/d (860 - 875 MBOE/d)
Q1 2025 cash capital expenditures guidance of $900 million - $1.0 billion
Implies Q2 2025 – Q4 2025 run-rate oil production of 490 – 505 MBO/d (891 – 920 MBOE/d)
Full year 2025 Midland Basin well costs per lateral foot guidance of $555 - $605
Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 44.8, 10% better than the Company’s original pro forma 2025 outlook provided in February 2024
FOURTH QUARTER 2024 HIGHLIGHTS
Average production of 475.9 MBO/d (883.4 MBOE/d) < Exceeded my forecast of 850,000 Boepd.
Net cash provided by operating activities of $2.3 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $2.3 billion < Beat my forecast of $2.164 billion.
Cash capital expenditures of $933 million
Free Cash Flow of $1.3 billion; Adjusted Free Cash Flow of $1.4 billion
Increased annual base dividend by 11% to $4.00 per share; declared Q4 2024 base cash dividend of $1.00 per share payable on March 13, 2025; implies a 2.6% annualized yield based on February 21, 2025 closing share price of $156.12
Repurchased 2,326,247 shares of common stock in Q4 2024 for $402 million, excluding excise tax (at a weighted average price of $172.91 per share); repurchased 1,254,600 shares of common stock to date in Q1 2025 for $210 million, excluding excise tax (at a weighted average price of $167.42 per share)
Total Q4 2024 return of capital of $694 million; represents ~51% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q4 2024 base dividend
Closed previously announced TRP Energy ("TRP") transaction in December 2024
FULL YEAR 2024 HIGHLIGHTS
Average production of 337.0 MBO/d (598.3 MBOE/d)
Net cash provided by operating activities of $6.4 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $6.5 billion
Cash capital expenditures of $2.9 billion
Free Cash Flow (as defined and reconciled below) of $3.6 billion; Adjusted Free Cash Flow (as defined and reconciled below) of $4.0 billion
Declared total base-plus-variable dividends of $6.21 per share for the full year 2024
Repurchased 5,525,276 shares of common stock in 2024 for $959 million, excluding excise tax (at a weighted average price of $173.57 per share)
Total full year 2024 return of capital of $2.3 billion; represents ~57% of FY 2024 Adjusted Free Cash Flow (as defined and reconciled below)
As previously announced, closed merger with Endeavor Energy Resources, L.P. ("Endeavor") on September 10, 2024
Proved reserves as of December 31, 2024 of 3,557 MMBOE (1,761 MMBO, 50% oil), up 63% year over year; proved developed producing ("PDP") reserves of 2,385 MMBOE (1,121 MMBO, 47% oil, 67% of proved reserves), up 59% year over year
2025 GUIDANCE HIGHLIGHTS
Please note the guidance below gives effect to the pending acquisition of Double Eagle IV Midco, LLC (“Double Eagle”) from April 1, 2025 onward.
Full year 2025 oil production guidance of 485 - 498 MBO/d (883 - 909 MBOE/d)
Full year 2025 cash capital expenditures guidance of $3.8 - $4.2 billion
The Company expects to drill between 446 - 471 gross (406 - 428 net) wells and complete between 557 - 592 gross (526 - 560 net) wells with an average lateral length of approximately 11,500 feet in 2025
Q1 2025 oil production guidance of 470 - 475 MBO/d (860 - 875 MBOE/d)
Q1 2025 cash capital expenditures guidance of $900 million - $1.0 billion
Implies Q2 2025 – Q4 2025 run-rate oil production of 490 – 505 MBO/d (891 – 920 MBOE/d)
Full year 2025 Midland Basin well costs per lateral foot guidance of $555 - $605
Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 44.8, 10% better than the Company’s original pro forma 2025 outlook provided in February 2024