Diamondback Energy (FANG) Tops Q3 EPS by 20c

November 7, 2016 4:15 PM EST
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Diamondback Energy (NASDAQ: FANG) reported Q3 EPS of $0.54, $0.20 better than the analyst estimate of $0.34.

FULL YEAR 2016 GUIDANCE

Below is Diamondback's full year 2016 guidance, which was updated in October to reflect higher production, an updated completion cadence and lower LOE expense. The Company is reiterating its 2016 capital expenditure guidance for drilling, completion and infrastructure of $350 to $425 million.

2016 Guidance
Diamondback Energy, Inc. Viper Energy Partners LP
Total Net Production – MBoe/d41.0 – 42.06.0 – 6.5
Unit costs ($/boe)
Lease operating expenses, including workovers$5.50 - $6.00n/a
Gathering & Transportation$0.50 - $1.00$0.25-$0.50
G&A
Cash G&A$1.00 - $2.00$0.50-$1.50
Non-cash equity-based compensation$1.50 - $2.50$2.00-$3.00
DD&A$11.00 - $13.00$12.00-$14.00
Interest expense (net of interest income)$2.50 - $3.50
Production and ad valorem taxes (% of revenue)(a) 8.0% 8.0%
($ - million)
Gross horizontal well costs(b)$5.0 - $5.5n/a
Horizontal wells completed (net)65 – 70 (55 – 60)
Capital Budget ($ - million)
Horizontal drilling and completion$305 - $360n/a
Infrastructure$30 - $40n/a
Non-op and other$15 - $25n/a
2016 Capital Spend$350 - $425n/a

(a) Includes production taxes of 4.6% for crude oil and 7.5% for natural gas and NGLs and ad valorem taxes.(b) Assumes a 7,500’ average lateral length.

PRELIMINARY FULL YEAR 2017 GUIDANCE

Below is Diamondback's preliminary 2017 guidance, which was introduced in October. Diamondback expects full year 2017 production to be between 52.0 Mboe/d and 58.0 Mboe/d. During 2017, the Company plans to complete 90 to 120 gross horizontal wells with an estimated total capital spend of $500 to $650 million from a five to seven rig program, should WTI prices remain above $45 per barrel.

2017 Guidance
Diamondback Energy, Inc.
Total Net Production – MBoe/d52.0 – 58.0
($ - million)
Gross horizontal well costs - Midland Basin(a)$5.0 - $5.5
Gross horizontal well costs - Delaware Basin(a)$6.0 - $7.0
Gross horizontal wells completed(b)90 – 120
Capital Budget ($ - million)
2017 Capital Spend$500 - $650

(a) Assumes a 7,500’ average lateral length.(b) Assumes an average lateral length of approximately 8,500'

For earnings history and earnings-related data on Diamondback Energy (FANG) click here.



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