Diamondback Energy Reports Strong Revenue Growth in Q4
Diamondback Energy reported strong revenue growth in the fourth quarter as a result of increased daily oil volume production. The Midland, Texas-based oil and natural gas company recorded a net profit of $960 million, or $5.34 per share, compared to $1.01 billion, or $5.62 per share, in the same period the previous year. After excluding one-time items, the company’s earnings per share stood at $4.74. Furthermore, the revenue soared by 9.8% to $2.23 billion.
During the fourth quarter, Diamondback Energy experienced a significant boost in production, with an average of 273.1 thousand barrels of oil equivalent per day. This represents an increase from the previous year’s average of 226.1 thousand barrels. The company also displayed its commitment to expansion by drilling 80 gross wells in the Midland Basin and four gross wells in the Delaware Basin over the same period.
Looking ahead to the first quarter, Diamondback Energy has projected an average production rate of 270 thousand to 274 thousand barrels of oil equivalent per day. This indicates that the company anticipates sustaining the high levels of production achieved in the fourth quarter.
The strong financial performance and production growth coincide with Diamondback Energy’s recent merger agreement with Endeavor Energy Resources. The deal, valued at approximately $26 billion, will further solidify Diamondback Energy’s position in the industry.
Diamondback Energy’s success reflects the positive outlook for the oil and gas sector, with its increased revenue, production volumes, and anticipated production levels for the first quarter of 2022. The company’s merger partnership with Endeavor Energy Resources is also expected to contribute to its future growth and market presence.
Analyst comment
Positive news. Diamondback Energy reported strong revenue growth and increased daily oil volume production in the fourth quarter. The company’s net profit increased to $960 million, and excluding one-time items, earnings per share stood at $4.74. Furthermore, revenue soared by 9.8% to $2.23 billion. Diamondback Energy anticipates sustaining high production levels in the first quarter and has entered into a merger agreement with Endeavor Energy Resources, further solidifying its position in the industry. This positive outlook and anticipated growth bode well for the market.
