(Diamondback, 4.Nov.2024) — Diamondback Energy, Inc. announced financial and operating results for the third-quarter 2024 (3Q:24).
THIRD QUARTER 2024 HIGHLIGHTS
- As previously announced, closed merger with Endeavor Energy Resources, L.P. on 10 Sep. 2024
- Average production of 321.1 MBO/d (571.1 Mboe/d)
- Net cash provided by operating activities of $1.2bn; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.4bn
- Cash capital expenditures of $688mn
- Free Cash Flow (as defined and reconciled below) of $708mn; Adjusted Free Cash Flow (as defined and reconciled below) of $1bn
- Declared 3Q:24 base cash dividend of $0.90 per share payable on 21 Nov. 2024; implies a 2.0% annualized yield based on 1 Nov. 2024 closing share price of $175.81
- Repurchased 2,919,763 shares of common stock in 3Q:24 for $515mn, excluding excise tax (at a weighted average price of $176.40 per share); repurchased 1,029,191 shares of common stock to date in 4Q:24 for $185mn, excluding excise tax (at a weighted average price of $180.13 per share)
- Total 3Q:24 return of capital of $780mn; represents ~78% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q3 2024 base dividend
- As previously announced, Board approved a $2bn increase to share repurchase authorization to $6bn from $4bn previously
TRP ENERGY TRADE
- On 3 Nov., Diamondback and TRP entered into a definitive agreement under which Diamondback will trade certain Delaware Basin assets and pay approximately $238mn in cash to TRP in exchange for TRP’s Midland Basin assets
- TRP’s Midland Basin assets are made up of ~15,000 net acres across Upton and Reagan counties and consist of 55 remaining undeveloped operated locations, the majority of which immediately compete for capital
- The asset also includes 18 Drilled Uncompleted Wells (“DUCs”) which provide for additional capital allocation flexibility
- The trade is expected to be accretive to both Cash Flow and Free Cash Flow per share and enhances Diamondback’s near-term oil production profile
- Expected to close in Dec. 2024, subject to customary regulatory approvals and closing conditions
- Jefferies LLC is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is serving as legal advisor to Diamondback. J.P. Morgan Securities LLC, Moelis & Company and RBC Capital Markets are acting as financial advisors to TRP. Clifford Chance US LLP is serving as legal advisor to TRP.
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