U.S. shale oil producer Diamondback Energy Inc. on Feb. 22 reported higher-than-expected fourth-quarter profit and boosted its dividend to shareholders as fuel prices hit multi-year highs on stronger energy demand.
Global crude prices jumped more than 50% last year, rebounding from a pandemic-driven slump in demand. They averaged $80/bbl in the last three months of 2021, nearly double that of a year earlier.
Diamondback Energy said it would increase its annual dividend by 20% to $2.40 per share, mirroring rivals’ moves to increase shareholder returns as oil profits soar.
Shares rose 1.4% to $129.80 in after hours trading after closing down more than 2%.
Diamondback said its average unhedged realized prices during the fourth quarter more than doubled to $56.47 per boe.
Its fourth-quarter output was 387,100 boe/d, compared with 299,000 last year.
The Midland, Texas-based company forecast first-quarter production between 369,000 and 376,000 boepd. That is up from around 307,400 boepd during the first quarter of 2021.
Diamondback on Feb. 22 also said Steven West will step down as chairman but remain on its board. CEO Travis Stice will add chairman duties, the company said.
Diamondback’s adjusted income jumped to $657 million, or $3.63 per share, in the quarter, from $130 million, or 82 cents per share, a year earlier. Wall Street analysts had expected earnings of $3.38 per share, according to Refinitiv IBES.
Recommended Reading
US Drillers Cut Oil, Gas Rigs for Fourth Week in a Row-Baker Hughes
2024-04-12 - The oil and gas rig count, an early indicator of future output, fell by three to 617 in the week to April 12, the lowest since November.
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-06-07 - The oil and gas rig count, an early indicator of future output, fell by six to 594 in the week to June 7, decreasing for the second time in three weeks.
US Drillers Add Oil, Gas Rigs for First Time in Four Weeks: Baker Hughes
2024-05-17 - The oil and gas rig count rose by one to 604 in the week to May 17.
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
US Oil, Gas Rig Count Falls to Lowest Since January 2022
2024-05-03 - The oil and gas rig count, an early indicator of future output, fell by eight to 605 in the week to May 3, in the biggest weekly decline since September 2023.