Diamondback Energy, Inc. FANG recently released its operational update for the first quarter of 2025 to strategically pursue its stock repurchase plan in light of ongoing market volatility.

The company is set to report its first-quarter 2025 earnings on May 5, after the closing bell. The Zacks Consensus Estimate for earnings is pegged at $3.64 per share and the same for revenues is pinned at $3.6 billion. The estimated earnings per share figure indicates a 19.1% year-over-year decline. However, the Zacks Consensus Estimate for revenues suggests a 60.6% increase from the year-ago period.

Let us look into the recently released operational update of the company:

An Insight Into FANG’s Q1 2025 Operational Update

Diamondback reported an average oil production of 475.9 thousand barrels of oil per day, while combined output was 850.7 thousand barrels of oil-equivalent per day. The company also achieved average unhedged realized prices of $70.95 per barrel of oil, $23.94 per barrel of natural gas liquids and $2.11 per thousand cubic feet of natural gas.

Key financial metrics for the quarter include a total derivative gain of $226 million, driven by an $85 million realized hedge gain and a $141 million unrealized gain. Capital expenditures totaled $942 million. Demonstrating its commitment to shareholder returns, the company repurchased more than 3.6 million shares in the first quarter for $575 million at an average price of $157.15 per share. Diamondback also reported an average of 289,612basic and diluted shares outstanding at the end of the first quarter.

To date, through the second quarter, Diamondback has closed the acquisition of Double Eagle and also repurchased approximately 1.6 million shares for $200 million at $128.19 per share, resulting in approximately 293 million shares outstanding.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

FANG’s Plan Update for Upcoming 2025

Recognizing ongoing market volatility, Diamondback has well-positioned itself to review its operating plan for the remainder of 2025. Management emphasized that if commodity prices decline further, the company will have the flexibility to reduce its activity levels to maximize free cash flow. The company also believes that it stands in a leveraged position to lower its breakeven oil price further via capital and operational cost savings.

Diamondback’s first-quarter update signals not just strong current performance but also disciplined planning for the remainder of the year. With market conditions evolving, the company is prepared to adjust to the ongoing economic scenario while prioritizing long-term shareholder value.

Story Continues

FANG’s Zacks Rank and Key Picks

Texas-based Diamondback Energy is an independent oil and gas exploration and production company with its primary focus on the Permian Basin, where it has approximately 885,000 net acres. Currently, FANG has a Zacks Rank #3 (Hold).

Investors interested in the energy sector might look at some top-ranked stocks like Archrock, Inc. AROC, Delek Logistics Partners, LP DKL and Diversified Energy Company PLC DEC. While Archrock and Delek Logistics currently sport a Zacks Rank #1 (Strong Buy) each, Diversified Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Houston-based Archrock is a provider of natural gas contract compression services as well as a supplier of aftermarket services for compression equipment. AROC operates in the oil- and gas-producing regions primarily in the United States. The Zacks Consensus Estimate for AROC’s 2025 earnings indicates 56.19% year-over-year growth.

Delek Logistics Partners owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 34.45% year-over-year growth.

Birmingham-based Diversified Energy is an energy company focused on natural gas and liquids production, transport, marketing and well retirement. The Zacks Consensus Estimate for DEC’s 2025 earnings indicates 70.77% year-over-year growth.

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