Diamondback Energy (NASDAQ:FANG) saw a rise of 1.6% in trading post-market on Tuesday after exceeding Q4 earnings expectations, bolstered by a robust surge in oil and gas production.
The company reported a Q4 net income drop to $960 million, or $5.34 per share, from $1.01 billion, or $5.62 per share, in the same quarter of the previous year. However, revenues climbed 10% year-over-year to $2.23 billion.
Notably, Diamondback (FANG) witnessed an 18% increase in production to 462.6K barrels of oil equivalent per day (boe/day), including 273.1K barrels of oil per day, compared to 391.4K boe/day in the year-ago quarter.
The firm completed 80 gross wells in the Midland Basin and four gross wells in the Delaware Basin during Q4, further turning 50 operated wells to production in the Midland Basin and nine gross wells in the Delaware Basin.
A commendable spike in production helped offset a decline in prices as the company’s unhedged realized price for oil dropped to $76.42 per barrel from $80.37 per barrel in the year-ago quarter.
Looking ahead, Diamondback (FANG) anticipates full-year total production in the range of 458K-466K boe/day, with oil production ranging between 270K-275K barrels per day; for Q1, the company expects total output of 458K-464K boe/day, including 270K-274K barrels per day of oil.
The company foresees drilling 265-285 gross wells and completing 300-320 gross wells with an average lateral length of approximately 11.5K feet in 2024.
Additionally, the company has provided a letter to stockholders to offer detailed insights.
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