Business
Diamondback Energy, Inc. Announces Second Quarter 2023 Financial and Operating Results; Increases Base Dividend
MIDLAND, Texas, July 31, 2023 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and
About this update from Diamondback Energy, Inc.
[{"type":"text","content":"MIDLAND, Texas, July 31, 2023 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the second quarter ended June 30, 2023. SECOND QUARTER 2023 HIGHLIGHTS Average production of 263.1 MBO/d (449.9 MBOE/d)Net cash provided by operating activities of $1.51 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.26 billionCash capital expenditures of $711 millionFree Cash Flow (as defined and reconciled below) of $547 millionIncreasing annual base dividend by 5% to $3.36 per share; declared Q2 2023 base cash dividend of $0.84 per share payable on August 17, 2023; implies a 2.3% annualized yield based on July 28, 2023 closing share price of $145.64Repurchased 2,427,880 shares of common stock in Q2 2023 for $321 million (at a weighted average price of $132.21/share); repurchased 397,800 shares of common stock to date in Q3 2023 for $54 million, excluding excise tax (at a weighted average price of $136.40/share)Total Q2 2023 return of capital of $473 million from stock repurchases and the declared base dividend; represents ~86% of Q2 2023 Free Cash Flow (as defined and reconciled below)Repurchased $130 million in aggregate principal amount across Diamondback's 2026 and 2029 Senior Notes at an average cost of 95.5% of par (~$124 million)In July, completed divestiture of 43% equity ownership in the OMOG crude oil gathering system for gross proceeds of $225 millionSince initiating our non-core asset sale program, have announced or closed transactions with $1.1 billion of gross proceeds, exceeding our 2023 target of $1.0 billion OPERATIONS UPDATE The tables below provide a summary of operating activity for the second quarter of 2023. Total Activity (Gross Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin86 71Delaware Basin12 18Total98 89 Total Activity (Net Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin81 66Delaware Basin10 16Total91 82 During the second quarter of 2023, Diamondback drilled 86 gross wells in the Midland Basin and 12 gross wells in the Delaware Basin. The Company turned 71 operated wells to production in the Midland Basin and 18 gross wells in the Delaware Basin with an average lateral length of 10,967 feet. Operated completions during the s...