Diamondback Energy Inc (NASDAQ:FANG) stock rose 0.23% (As on May 6, 11:23:13 AM UTC-4, Source: Google Finance) after the company reported first quarter earnings and revenue that exceeded analyst expectations, driven by higher oil and gas production. Diamondback’s average oil production increased to 475,944 barrels per day in Q1, up from 273,341 barrels per day in the same quarter last year. Total production averaged 850,656 barrels of oil equivalent per day, compared to 461,110 BOE/d a year ago. The company ended the quarter with $1.3 billion in cash and $14.1 billion in total debt. Diamondback generated free cash flow of $1.5 billion in Q1. Adjusted net income for the first quarter was $1.3 billion, or $4.54 per diluted share. First quarter 2025 net cash provided by operating activities was $2.4 billion. During the first quarter of 2025, Diamondback spent $864 million on operated drilling and completions, $21 million on capital workovers and non-operated drilling and completions and $57 million on infrastructure, environmental and midstream, for total cash capital expenditures of $942 million.

FANG in the first quarter of FY25 has reported the adjusted earnings per share of $4.54, beating the analysts’ estimates for the adjusted earnings per share of $4.09, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $4.05 billion in the first quarter of FY25, beating the analysts’ estimates for revenue by 8.09%.

Additionally, the company declared a Q1 base cash dividend of $1.00 per share, payable on May 22. Diamondback repurchased 3.7 million shares for $575 million during the quarter. Total Q1 2025 return of capital of $864 million; represents ~55% of Adjusted Free Cash Flow from stock repurchases and the declared Q1 2025 base dividend

For full year 2025, Diamondback lowered its oil production guidance to 480,000-495,000 barrels per day, citing recent commodity price volatility. It also reduced its capital expenditure forecast to $3.4-$3.8 billion. The Company expects to drill 385 – 435 gross (349 – 395 net) wells and complete between 475 – 550 gross (444 – 514 net) wells with an average lateral length of approximately 11,500 feet in 2025. Implies full year 2025 oil production per million dollars of cash capital expenditures (“MBO per $MM of CAPEX”) of 49.4, ~10% better than the Company’s original full year 2025 guidance provided in February 2025

Q2 2025 oil production guidance of 485 – 500 MBO/d (866 – 900 MBOE/d) and Q2 2025 cash capital expenditures guidance of $800 – $900 million.