HOUSTON - Diamondback (NASDAQ:FANG) Energy, Inc. (NASDAQ:FANG) reported a strong financial performance for the third quarter of 2023, with earnings per share (EPS) of $5.49, surpassing analyst estimates. Despite this beat, the company's EPS showed a decline from the previous year, attributed to a lower overall realization. Revenue also saw a slight dip of 4% year over year, falling to $2.3 billion, yet this figure still managed to exceed expectations.
The Texas-based oil and gas company announced that it would be rewarding its shareholders with both regular and special dividends. These dividends are slated for shareholders on record as of today, with the payout expected on November 24.
During the third quarter, Diamondback Energy actively repurchased shares, buying back stock worth $56 million at an average price of $136.59 per share. This move is part of the company's broader capital return strategy.
Operational costs have been a focus for Diamondback as they reported a decrease in lease operating expenses. The company's cash operating costs decreased to $10.51 per barrel of oil equivalent (BOE), down from $11.97 in the same period last year and below the anticipated $11.50 per BOE. Additionally, production taxes and transportation expenses saw reductions.
The company's capital expenditures for Q3 amounted to $684 million, which supported their generation of substantial free cash flows totaling $820 million. As of September 30, Diamondback's balance sheet reflected approximately $830 million in cash and equivalents, with a long-term debt standing at $6.2 billion.
For the full year of 2023, Diamondback Energy has set its production target at around 447,000 BOE per day and anticipates capital spending to fall between $2.66 billion and $2.7 billion.
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