Diamondback Energy’s (FANG:NSD) Q1 profits miss Wall Street estimates

Diamondback Energy Inc.

Diamondback Energy Inc. News:

Diamondback Energy Inc, reported a first-quarter profit that missed Wall Street estimates on Monday, May 1, 2023. The company’s earnings were hurt by lower crude oil prices, which resulted in lower unhedged realized prices.

Diamondback Energy’s total average unhedged realized prices were $49.72 per barrel of oil equivalent in the first quarter of 2023, which is 29% lower than the same period a year earlier. Despite the decrease in prices, the company’s average production increased to 425,022 barrels of oil equivalent per day (boepd) from 381,378 boepd last year.

The increase in production was a bright spot for the company, but it was not enough to offset the negative impact of lower prices. As a result, the company’s shares fell after the announcement of the earnings report.

Diamondback Energy expects second-quarter production to be between 430,000 and 436,000 boepd. The company also announced an increase in capital expenditure, with a range of $675 to $725 million for the second quarter. This increase in capital expenditure may have contributed to the lower-than-expected earnings, as the company invested more in its operations.

Despite the disappointing earnings report, Diamondback Energy reaffirmed its full-year forecast for net production and capital expenditure. The company remains optimistic about its future prospects, despite the current challenging market conditions.

On an adjusted basis, Diamondback Energy earned $4.10 per share in the first quarter of 2023, compared with estimates of $4.33. The adjusted earnings number is a non-GAAP financial measure that excludes certain items such as one-time charges or gains. This measure is often used by companies to provide a more accurate reflection of their ongoing business performance.

Diamondback Energy Inc Stock Forecast:

According to a forecast from 31 analysts, the average target price for Diamondback Energy Inc (FANG:NSD) over the next 12 months is USD 176.84, and the company has a Strong Buy rating. However, Stock Target Advisor‘s analysis is Slightly Bearish, with 5 positive signals and 8 negative signals. The last closing stock price was USD 141.93, which is a decrease of 1.09% over the past week, an increase of 5.00% over the past month, and an increase of 12.44% over the past year.

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