Diamondback Energy has announced financial and operating results for the second quarter ended June 30, 2024.

SECOND QUARTER 2024 HIGHLIGHTS

• Average production of 276.1 MBO/d (474.7 MBOE/d)
• Net cash provided by operating activities of $1.5 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.5 billion
• Cash capital expenditures of $637 million
• Free Cash Flow (as defined and reconciled below) of $816 million; Adjusted Free Cash Flow of $841 million
• Declared Q2 2024 base cash dividend of $0.90 per share and a variable cash dividend of $1.44 per share, in each case payable on August 22, 2024; implies a 5.0% annualized yield based on August 2, 2024 closing share price of $189.06
• Total Q2 2024 return of capital of $421 million; represents ~52% of Q2 2024 Free Cash Flow (as defined and reconciled below) and 50% of Adjusted Free Cash Flow (as defined and reconciled below) from the declared Q2 2024 base-plus-variable dividend
• In June, completed a $95 million sale of non-operated properties in the Delaware Basin
• In July, our 25%-owned joint venture Remuda Midstream Holdings LLC completed its previously announced sale of its subsidiary WTG Midstream Holdings LLC; in connection with that closing Diamondback received total consideration valued at approximately $375 million on a pretax basis, including approximately 10.1 million common units of Energy Transfer
• As previously announced, the pending merger with Endeavor Energy Resources, L.P. was approved by Diamondback stockholders on April 26, 2024. The deal remains subject to regulatory approval and other customary closing conditions and is expected to close in the third or fourth quarter of 2024

OPERATIONS UPDATE

During the second quarter of 2024, Diamondback drilled 71 gross wells in the Midland Basin and nine gross wells in the Delaware Basin. The Company turned 79 operated wells to production in the Midland Basin and seven gross wells in the Delaware Basin, with an average lateral length of 11,203 feet. Operated completions during the second quarter consisted of 21 Lower Spraberry wells, 20 Wolfcamp A wells, 16 Wolfcamp B wells, 10 Middle Spraberry wells, nine Jo Mill wells, five Dean wells, three Wolfcamp D wells, one Second Bone Spring well and one Barnett well.

For the first half of 2024, Diamondback drilled 140 gross wells in the Midland Basin and 19 gross wells in the Delaware Basin. The Company turned 180 operated wells to production in the Midland Basin and seven operated wells to production in the Delaware Basin. The average lateral length for wells completed during the first six months of 2024 was 11,343 feet, and consisted of 51 Lower Spraberry wells, 39 Wolfcamp A wells, 31 Wolfcamp B wells, 25 Jo Mill wells, 22 Middle Spraberry wells, nine Wolfcamp D wells, five Dean wells, three Upper Spraberry wells, one Second Bone Spring well and one Barnett well.

FINANCIAL UPDATE

Diamondback's second quarter 2024 net income was $837 million, or $4.66 per diluted share. Adjusted net income (as defined and reconciled below) was $813 million, or $4.52 per diluted share.

Second quarter 2024 net cash provided by operating activities was $1.5 billion. Through the first half of 2024, Diamondback's net cash provided by operating activities was $2.9 billion.

During the second quarter of 2024, Diamondback spent $585 million on operated and non-operated drilling and completions, $51 million on infrastructure and environmental and $1 million on midstream, for total cash capital expenditures of $637 million. Through the first half of 2024, Diamondback spent $1.2 billion on operated and non-operated drilling and completions, $76 million on infrastructure and environmental and $5 million on midstream, for total cash capital expenditures of $1.2 billion.

Second quarter 2024 Consolidated Adjusted EBITDA (as defined and reconciled below) was $1.7 billion. Adjusted EBITDA net of non-controlling interest  was $1.6 billion.

Diamondback's second quarter 2024 Free Cash Flow (as defined and reconciled below) was $816 million. Adjusted Free Cash Flow (as reconciled and defined below) was $841 million. Through June 30, 2024, Diamondback's Free Cash Flow was $1.6 billion, with $1.6 billion of Adjusted Free Cash Flow over the same period.

Second quarter 2024 average unhedged realized prices were $79.51 per barrel of oil, $0.10 per Mcf of natural gas and $17.97 per barrel of natural gas liquids ("NGLs"), resulting in a total equivalent unhedged realized price of $50.33 per BOE.

Diamondback's cash operating costs for the second quarter of 2024 were $11.67 per BOE, including lease operating expenses ("LOE") of $5.88 per BOE, cash general and administrative ("G&A") expenses of $0.63 per BOE, production and ad valorem taxes of $3.26 per BOE and gathering, processing and transportation expenses of $1.90 per BOE.

As of June 30, 2024, Diamondback had $6.9 billion in standalone cash, including $5.5 billion raised in its senior note offering in April 2024 to fund a portion of the cash consideration for the pending Endeavor merger, and no borrowings under its revolving credit facility, with approximately $1.6 billion available for future borrowings under the facility and approximately $8.5 billion of total liquidity. As of June 30, 2024, the Company had consolidated total debt of $12.2 billion and consolidated net debt (as defined and reconciled below) of $5.3 billion, up from consolidated total debt of $6.8 billion and down from consolidated net debt of $5.9 billion as of March 31, 2024.

KeyFacts Energy: Diamondback Energy US onshore country profile