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Diamondback Energy, Inc. FANG is set to release third-quarter results on Nov. 4, 2024, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.48 per share and that for revenues is pinned at $11.29 billion.
Let us delve into the factors that are likely to have influenced the oil and gas exploration and production service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at Diamondback’s performance in the last reported quarter.
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Highlights of Q2 Earnings & Surprise History of FANG
In the last reported quarter, the Midland, TX-based, independent oil and natural gas company’s earnings beat the consensus mark. The company reported adjusted earnings per share of $4.52, which was higher than the Zacks Consensus Estimate of $4.46. This was attributed to stronger production and a gain in overall realization. Revenues of $2.5 billion were up 1.4% from the consensus mark.
FANG beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with an average surprise of 5.28%.
This is depicted in the graph below:
Diamondback Energy, Inc. Price and EPS Surprise
Diamondback Energy, Inc. price-eps-surprise | Diamondback Energy, Inc. Quote
FANG’s Trend in Estimate Revision
The Zacks Consensus Estimate for third-quarter 2024 earnings has witnessed an upward revision and six downward movements in the past 30 days. The estimated figure indicates a 27.32% year-over-year decline. The Zacks Consensus Estimate for revenues indicates an increase of 6.04% from the year-ago period.
Factors to Consider for FANG’s Q3 Performance
The appreciation in FANG's costs is likely to have hurt its bottom line. The company’s costs and expenses are projected to have reached $1533.8 million in the third quarter, which is 53.4% up from the year-ago period. Its lease operating expenses are expected to have risen from $226.0 million to $309.9 million during this timeframe. Additionally, the costs associated with the depletion of proved oil and natural gas properties are anticipated to have grown from $426 million to $473.1 million. Furthermore, depletion, depreciation and amortization expenses are expected to have increased from $442 million to $544.5 million in the same period.
On a positive note, FANG's revenues are likely to have improved in the quarter to be reported. The company makes money by exploring, extracting and selling oil and natural gas in the Permian Basin in West Texas. This leading independent company also generates revenues through the sale of these resources to various buyers, including refineries and other energy companies. Our model predicts third-quarter revenues to have increased to $2,417.3 million from the year-ago quarter’s $2,340 million. Its revenues from sales of purchased oil are expected to have increased from $59 million to $300 million at the same time.