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Diamondback Energy's Q1 Production Surges, Beats Estimates

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Diamondback Energy, Inc. (FANG - Free Report) recently declared that its first-quarter 2018 output level climbed up to 102.6 thousand barrels of oil equivalent per day (MBoe/d), showing a rise of 10% from the fourth-quarter 2017's figure of 92.9 MBoe/d and higher than the Zacks Consensus Estimate of 100.4 MBoe/d. Of the total production, 74% or 75.6 thousand barrels per day was oil.

The $11.12 billion company reported average realized equivalent price in the quarter at $50.55 per barrel, which is 12% more than the last reported quarter's $45.31 per barrel. Moreover, it witnessed average realized prices at $61.66 per barrel of oil, $24.64 per barrel of natural gas liquids (NGLs) and $2.20 per thousand cubic feet (Mcf) of natural gas.

At present, the upstream energy company is running 11 drilling rigs, where five dedicated completion crews are working.

Notably, the company's subsidiary, Viper Energy Partners LP (VNOM - Free Report) has also announced its Jan-Mar production volumes at 14.1 MBoe/d, reflecting a rise of 14% from the last reported quarter.

Diamondback Energy is expected to report its first-quarter earnings around May 1. The Zacks Consensus Estimate for earnings is $1.51 per share on revenues of $424.2 million. We would like investors to know that in the past 30 days, three estimates have gone higher for the company while two have gone lower in the same time period. Additionally, Diamondback Energy delivered a positive earnings surprise of 31.34% in the trailing four quarters.

Price Performance

Diamondback Energy has gained 10.7% last year against the 13% fall of its industry.

About Diamondback Energy

Midland, TX-based Diamondback Energy is an independent energy company. It primarily focuses its operations in the Permian Basin, where it has around 207,000 net acres. As of Dec 31, 2017, Diamondback Energy holds an estimated proved oil and natural gas reserve of 335.4 million barrels of crude oil equivalent.

Zacks Rank and Stocks to Consider

Diamondback Energy carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the oil and energy sector are Northern Oil and Gas, Inc. (NOG - Free Report) and Continental Resources, Inc. , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Minnetonka, MN-based Northern Oil and Gas is an independent energy company. Its revenues for 2018 are anticipated to improve 17.4% year over year. The company delivered a positive earnings surprise of 175% in the trailing four quarters.

Oklahoma City, OK-based Continental Resources is an oil and gas exploration and production company. Its revenues for first-quarter 2018 are estimated to soar 55.7% from the year-ago quarter’s figure. For 2018, the bottom line is likely to be up 370.6%.

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