Diamondback Energy (FANG) Tops Q2 EPS by 14c, Revenues Miss

August 3, 2020 4:27 PM EDT

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Diamondback Energy (NASDAQ: FANG) reported Q2 EPS of $0.15, $0.14 better than the analyst estimate of $0.01. Revenue for the quarter came in at $425 million versus the consensus estimate of $596.29 million.


  • Generated second quarter cash flow from operating activities of $324 million. Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) was $390 million
  • Q2 2020 cash operating costs of $6.44 per BOE; including cash general and administrative ("G&A") expenses of $0.41 per BOE and lease operating expenses ("LOE") of $3.85 per BOE
  • Declared Q2 2020 cash dividend of $0.375 per share payable on August 20, 2020; implies a 3.8% annualized yield based on the July 31, 2020 share closing price of $39.86
  • Included in the Company's Q2 2020 results are $2,539 million in impairment charges related to the lower average trailing 12-month commodity pricing ("SEC Pricing"). As such, the Company reported a net loss of $2,393 million; adjusted net income (as defined and reconciled below) of $23 million, or $0.15 per diluted share
  • Q2 2020 Consolidated Adjusted EBITDA (as defined and reconciled below) of $441 million; Adjusted EBITDA net of non-controlling interest of $414 million
  • Standalone liquidity of $1.9 billion as of June 30, 2020
  • Lowering LOE and G&A unit guidance by a combined $0.35 per BOE at the midpoint of each guidance range, implying estimate of total cash cost savings of over $38 million for full year 2020
  • Current drilling and completion costs in the Midland Basin are between $450 and $500 per lateral foot, with an estimated additional $80 to $100 of equip costs per lateral foot
  • Current drilling and completion costs in the Delaware Basin are between $650 and $700 per lateral foot, with an estimated additional $100 to $150 of equip costs per lateral foot
  • Completed a four well pad in Spanish Trail in 10.5 days, completing approximately 4,000 lateral feet per day using 25% recycled water versus prior completions at 1,500 to 2,000 lateral feet per day
  • Using new rotary steerable technology, Diamondback set a Permian Basin record for most footage drilled in a 24 hour period with 8,150 lateral feet drilled in 24 hours
  • Reduced flaring as a percentage of net production to 0.3%, down 82% from Q1 2020 and down 84% from 2019

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

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