Diamondback Energy Shares Drop Nearly 5% Despite Exceeding Revenue Expectations, Third Quarter Earnings Fall Short of Forecasts

MIDLAND, Texas - Diamondback Energy, Inc. (NASDAQ: FANG) reported third-quarter earnings that fell short of analysts' expectations. This led to a 4.5% drop in the company's stock during after-hours trading, despite revenues exceeding expectations.

The oil and gas producer announced an adjusted earnings per share of $3.38, which was $0.64 below the consensus estimate of $4.02. However, revenue came in at $2.65 billion, surpassing analysts' projections of $2.44 billion.

Diamondback's production reached an average of 571,098 barrels of oil equivalent per day (BOE/d) in the third quarter, representing a year-over-year increase of 26.2%. Notably, oil production increased by 20.6% year-over-year, rising to 321,054 barrels per day.

Travis Stice, Chairman and CEO of Diamondback, stated, "Diamondback completed our merger with Endeavor Energy Resources on September 10, significantly enhancing our scale and improving our cost structure." He added, "Our team has quickly begun integration efforts."

During the quarter, the company generated $708 million in free cash flow. Diamondback repurchased 2.9 million shares for $515 million and declared a quarterly dividend of $0.90 per share.

For the fourth quarter, Diamondback anticipates daily oil production between 470,000 and 475,000 barrels, with total production expected to be between 840,000 and 850,000 BOE/d.