Diamondback Energy stock trades steady as Q2 earnings and Exxon Permian deal reshape outlook
Article excerpt
Diamondback Energy Inc. (ISIN US25278X1090) stock sits in a reshaped Permian narrative after the company agreed to buy Exxon Mobil's Pioneer Natural Resources assets and reported stronger first quarter 2024 results with higher production and solid free cash flow. According to the companys update in early 2024, the all stock acquisition deal values the Exxon Permian package at around $26 billion in stock, positioning Diamondback among the largest independent Permian producers with a significantly expanded resource base and drilling inventory. For investors the numbers that stand out are rising oil volumes, disciplined capital spending, and a clear focus on cash returns via dividends and share repurchases. Diamondback Energy reported that in Q1 2024 its total net production from the Permian Basin averaged roughly 450,000 barrels of oil equivalent per day, an increase of about 10% compared with approximately 410,000 barrels of oil equivalent per day a year earlier. This growth came from both organic development on its Midland and Delaware Basin acreage and from recently closed bolt on acquisitions that added high margin drilling locations with existing infrastructure. In the same quarter Diamondback noted that oil made up around 60% of total production, with about 270,000 barrels per day of crude oil compared with approximately 245,000 barrels per day in Q1 2023. That shift in...
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For Q1 2024 Diamondback Energy reported total revenue of about $2.5 billion compared with roughly $2.2 billion in Q1 2023, an increase of around 13%.
