Benzinga - Shares of independent oil and gas producer Diamondback Energy Inc (NASDAQ: FANG) are facing selling pressure after the close Monday on the heels of the company's quarterly report.
The Details: Diamondback said first-quarter revenue totaled $1.93 billion, which came in below consensus estimates of $1.97 billion, per Benzinga Pro. The company reported adjusted net income of $4.10 per share.
Average production during the quarter was 251.4 MBO/d. Free cash flow totaled $646 million. Total debt increased to just over $7.1 billion.
"We believe well costs peaked over the last two quarters and have line of sight to meaningful decreases in the upcoming quarters. Both raw materials (including steel, diesel, sand) and service costs are now decreasing," the company said in a letter to shareholders.
Diamondback expects production to continue to increase in the second quarter. The company expects to produce between 256 and 262 MBO/d in full-year 2023.
Diamondback declared a first-quarter dividend of 80 cents per share and a variable cash dividend of 3 cents per share, payable on May 18.
Management will hold a conference call to discuss these results Tuesday at 8 a.m. ET.
FANG Price Action: Diamondback shares were down 2.06% after hours at $139 at the time of publication, according to Benzinga Pro.
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