Key Takeaways:
Diamondback Energy, Inc. (NASDAQ: FANG) reported first-quarter adjusted earnings of $4.23 per share, significantly outpacing Wall Street estimates, but saw its stock dip in post-market trading.
"Because of our positioning, preparation, and this price signal we are bringing incremental barrels to the market immediately," CEO Kaes van't Hof said in a statement, highlighting the company's ability to respond to the current macroenvironment.
The Midland, Texas-based shale producer's results topped the Zacks Consensus Estimate of $3.55 per share by 19 percent. Revenue also beat expectations, coming in at $4.24 billion against a forecast of $3.84 billion. The performance was supported by a realized hedged oil price of $72.53 per barrel and total production of 979,356 barrels of oil equivalent per day (boe/d), a 15 percent increase from the 850,656 boe/d produced a year earlier.
Despite the strong quarterly performance, shares fell 1 percent in after-hours trading. The company boosted its full-year 2026 production guidance to more than 972,000 boe/d, up from a previous range of 926,000 to 962,000 boe/d. To support this, the capital expenditure budget was increased to approximately $3.9 billion from $3.75 billion.
Diamondback also increased its commitment to shareholder returns, announcing a 5 percent increase in its base cash dividend to $1.10 per common share. During the first quarter, the company repurchased 3.3 million shares for approximately $548 million.
The updated guidance signals management's confidence in sustained production growth through the remainder of the year. Investors will be watching the company's next earnings call for details on how the increased capital spending is impacting well productivity and costs.
This article is for informational purposes only and does not constitute investment advice.
