Diamondback quarterly profit beats market estimates on higher crude prices
Reuters
Published Nov 07, 2022 04:21PM ET
Updated Nov 07, 2022 05:03PM ET
(Reuters) - U.S. oil and gas producer Diamondback (NASDAQ:FANG) Energy Inc on Monday reported better-than-expected third-quarter profit, helped by a surge in crude prices due to tighter energy supplies following Russia's invasion of Ukraine.
Energy companies are posting strong profits as crude and natural gas prices have soared following Western sanctions against major exporter Russia and OPEC+'s decision to tighten an already squeezed global supply. U.S. crude has risen nearly 20% so far this year.
Oil volumes for the quarter decreased to 224.3 thousand barrels of oil per day (BO/d), down from 239.8 thousand BO/d a year earlier.
Diamondback's average unhedged realized price for oil, however, rose to $89.79 per barrel in the reported quarter, up from $68.27 per barrel a year earlier.
Last month, Diamondback said it will buy all leasehold interest and related assets of FireBird Energy LLC for $1.6 billion in cash and stock.
The deal was Diamondback's biggest since its acquisition of QEP Resources (NYSE:QEP) and Guidon Operating in 2020 for a combined $3.2 billion, including debt, at a time when a pandemic-driven fallout in commodity prices spurred a wave of consolidation.
Diamondback raised its full-year net production guidance to 385,000-386,000 barrels of oil equivalent per day (BOE/d), to reflect the additional 7,400 BOE/d the FireBird acquisition is expected to add. It also raised its capital expenditure for the year to $1.94 billion-$1.95 billion from $1.82 billion-$1.90 billion as a result of the acquisition.
The Midland, Texas-based company's adjusted net income stood at $6.48 per share, beating average analysts' estimate of $6.33.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.