U.S. shale producer Diamondback Energy Inc. on Nov. 1 beat Wall Street third-quarter profit estimates and increased its dividend as the oil market recovers from pandemic lows, pushing prices to levels not seen in years.
The Midland, Texas-based company reported adjusted earnings of $536 million, or $2.94 per share for the quarter, versus expectations of $2.77, according to data from Refinitiv IBES.
WTI crude futures in the U.S. were up over half a percent on Monday at $84.05/bbl and more than 76% higher year-to-date. Although prices have climbed, publicly traded shale companies remain focused on returning cash to shareholders over growing production.
Diamondback lowered its capital spending guidance for 2021 for the second time this year to $1.49 billion to $1.53 billion, down 10% from April forecasts.
“We are committing to maintaining our fourth quarter 2021 Permian oil volumes throughout next year, and we believe this can be accomplished by spending the amount of capital implied in our fourth quarter 2021 guidance run-rate,” CEO Travis Stice said in a statement.
Shares slipped 1.4% to $110 in late trading after climbing 4% ahead of the release.
Diamondback has vowed to return 50% of its free cash flow to stockholders beginning in the fourth quarter of this year, and its board recently authorized a $2 billion share repurchase program.
Diamondback increased its annual dividend by 11% to $2 per share, and declared a third-quarter cash dividend of 50 cents per share, to be paid this month.
Recommended Reading
US Raises Crude Production Growth Forecast for 2024
2024-03-12 - U.S. crude oil production will rise by 260,000 bbl/d to 13.19 MMbbl/d this year, the EIA said in its Short-Term Energy Outlook.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Tech Trends: Halliburton’s Carbon Capturing Cement Solution
2024-02-20 - Halliburton’s new CorrosaLock cement solution provides chemical resistance to CO2 and minimizes the impact of cyclic loading on the cement barrier.
To Dawson: EOG, SM Energy, More Aim to Push Midland Heat Map North
2024-02-22 - SM Energy joined Birch Operations, EOG Resources and Callon Petroleum in applying the newest D&C intel to areas north of Midland and Martin counties.
Sinopec Brings West Sichuan Gas Field Onstream
2024-03-14 - The 100 Bcm sour gas onshore field, West Sichuan Gas Field, is expected to produce 2 Bcm per year.