Diamondback Energy Inc (NASDAQ:FANG) stock fell 1.41% (As on November 7, 11:42:55 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for third-quarter profit, as the U.S. shale oil producer benefited from a sustained demand for crude oil amid tight supplies. In Q3 2023, Diamondback Energy Inc drilled 79 gross wells in the Midland Basin and seven gross wells in the Delaware Basin. The company turned 73 operated wells to production in the Midland Basin and one gross well in the Delaware Basin with an average lateral length of 11,864 feet. The company has also completed a joint venture transaction with Five Point Energy LLC, forming Deep Blue Midland Basin LLC, contributing certain Midland Basin water assets for gross proceeds of $516 million and 30% equity ownership in the new joint venture entity. In addition, the company completed the divestiture of Delaware Basin oil gathering assets for gross proceeds of $75 million. The company’s average production for the quarter was 266.1 MBO/d, with net cash provided by operating activities reaching $1.4 billion.

FANG in the third quarter of FY 23 has reported the adjusted earnings per share of $5.49, beating the analysts’ estimates for the adjusted earnings per share of $5.01, according to LSEG data. The company had reported the adjusted revenue to $2.34 billion in the third quarter of FY 23, beating the analysts’ estimates for revenue of $2.18 billion.

Additionally, the company for Q3 2023, FANG has reported an Adjusted Free Cash Flow of $884 million. The company declared a Q3 2023 base cash dividend of $0.84 per share and a variable cash dividend of $2.53 per share, payable on November 24, 2023. This implies an 8.3% annualized yield based on the November 3, 2023 closing share price of $162.10. The company repurchased 406,700 shares of common stock in Q3 2023 for $56 million at a weighted average price of $136.59/share. As of the end of Q3 2023, the company’s consolidated total debt was $6.4 billion and consolidated net debt was $5.6 billion, down from $6.7 billion as of the end of Q2 2023.

For the full year 2023, FANG is raising both total and net oil production due to production outperformance year-to-date. The company is also narrowing unit costs, capital expenditures, and activity levels. The company’s net production is expected to be around 447 MBOE/d, with oil production expected to be around 263 MBO/d.