Diamondback (FANG) To Report Q3 Earnings: What's In Store?
Zacks Investment Research | Oct 31, 2019 11:49PM ET
Diamondback Energy, Inc. (NASDAQ:FANG) is set to report third-quarter 2019 results on Tuesday Nov 5, after the closing bell.
The current Zacks Consensus Estimate for the to-be-reported quarter is pegged at earnings of $1.73 on revenues of $1.05 billion.
Let’s delve into the factors that might have influenced the company’s performance in the September quarter.
Factors at Play
Last year’s twin acquisitions of Energen Corporation and Ajax Resources transformed Diamondback into one of the leading Permian Basin oil producers, driving significant production growth. This trend has most likely continued in the third quarter. As such, the company’s production volumes for the period to be reported are estimated to average 286,386 barrels of oil equivalent per day (BOE/d), suggesting an increase of 132.8% from the year-ago output of 122,975 BOE/d.
However, the company’s upcoming results might further reflect the impact of weaker realized crude prices from the year-ago reported level. The Zacks Consensus Estimate for third-quarter average crude price realization stands at $52 per barrel, implying a 7.14% decline from $56 a year ago. The Zacks Consensus Estimate for natural gas prices is pegged at $1.05 per thousand cubic feet, hinting at a decrease from the prior-year reported realization of $1.90.
While significant output growth is expected to have boosted Diamondback’s third-quarter 2019 earnings, weaker year-over-year commodity prices might have dented overall results.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Diamondback this season. The combination of a positive Original post
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