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Energy companies are posting strong profits as crude and natural gas prices have soared following Western sanctions against major exporter Russia and OPEC+’s decision to tighten an already squeezed global supply. U.S. crude has risen nearly 20% so far this year.
Oil volumes for the quarter decreased to 224.3 thousand barrels of oil per day (BO/d), down from 239.8 thousand BO/d a year earlier.
Diamondback’s average unhedged realized price for oil, however, rose to $89.79 per barrel in the reported quarter, up from $68.27 per barrel a year earlier.
Last month, Diamondback said it will buy all leasehold interest and related assets of FireBird Energy LLC for $1.6 billion in cash and stock.
The deal was Diamondback’s biggest since its acquisition of QEP Resources (NYSE:QEP) and Guidon Operating in 2020 for a combined $3.2 billion, including debt, at a time when a pandemic-driven fallout in commodity prices spurred a wave of consolidation.
Diamondback raised its full-year net production guidance to 385,000-386,000 barrels of oil equivalent per day (BOE/d), to reflect the additional 7,400 BOE/d the FireBird acquisition is expected to add. It also raised its capital expenditure for the year to $1.94 billion-$1.95 billion from $1.82 billion-$1.90 billion as a result of the acquisition.
The Midland, Texas-based company’s adjusted net income stood at $6.48 per share, beating average analysts’ estimate of $6.33.
