Diamondback Energy (NASDAQ:FANG) saw a post-market surge of 1.6% on Tuesday after exceeding Q4 earnings expectations, driven by robust increases in oil and gas production.

Financial Performance

The company recorded a Q4 net income decline to $960M, or $5.34/share, from $1.01B, or $5.62/share, in the year-earlier quarter. Nevertheless, revenues rose by 10% Y/Y to $2.23B, reflecting sustained growth.

Production Expansion

Diamondback Energy reported an 18% Y/Y surge in production to 462.6K boe/day, including 273.1K bbl/day of oil, compared to 391.4K boe/day in the same quarter of the previous year.

The company successfully drilled 80 gross wells in the Midland Basin and four gross wells in the Delaware Basin during Q4. Furthermore, it turned 50 operated wells to production in the Midland Basin and nine gross wells in the Delaware Basin, demonstrating an ongoing commitment to expansion and development.

The strong production growth offset a decline in prices, with the company’s unhedged realized price for oil decreasing to $76.42/bbl from $80.37/bbl in the year-ago quarter.

Future Projections

For the full year, Diamondback anticipates total production of 458K-466K boe/day, including oil production of 270K-275K bbl/day. In Q1, the company expects total output of 458K-464K boe/day, including 270k-274K bbl/day of oil. Additionally, it plans to drill 265-285 gross wells and complete 300-320 gross wells with an average lateral length of approximately 11.5K ft in 2024.

Market Response

The market responded positively to Diamondback Energy’s strong performance, resulting in a post-market surge of 1.6% after the earnings report was released.

Overall, Diamondback Energy exhibited resilience and growth amidst a challenging market environment, positioning itself as a key player in the energy sector moving forward.