Diamondback Energy (FANG) reported quarterly results, with both revenue and bottom line exceeding expectations, with adjusted earnings per share of $4.74, beating expectations of $4.70.
Chesapeake Energy (CHK)'s fourth-quarter results also exceeded expectations, but the company's full-year capital investment outlook fell short of expectations.
Yahoo Finance's Ines Ferré reports on the details.
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Editor's note: This article was written by Stephanie Mikulich.
video transcript
Julie Hyman: Now, energy investors are digesting the latest batch of quarterly results from Diamondback Energy and Chesapeake. Yahoo Finance's Ines Ferre breaks down these numbers. Hello, Ines.
Ines Ferret: Hello Julie. Yeah. And we've been keeping an eye on these stocks, especially as these companies have announced mergers in recent months. Now, let's take a look at Diamondback's quarterly results. Sales exceeded expectations. Adjusted earnings per share also beat the Street's estimate of $4.74 per share, when Wall Street had expected $4.70 per share.
Diamondback, which announced its acquisition of Endeavor, will become the third largest producer in the Permian Basin after Chevron and ExxonMobil. Both companies also recently announced a merger. However, in a letter to the company's shareholders, CEO Travis Stith said 2023 will be a great year for Diamondback, with the company exceeding production guidelines and paying dividends in the form of share buybacks. He emphasized that he had returned money to shareholders, and also mentioned his merger with Endeavor, which would give him ownership of an independent North American oil company. Shares are up about 13% since the beginning of the year. And after these results, we're seeing more after-hours as well.
Moving on to Chesapeake Energy, the company reported quarterly results and capital expenditures were lower than street expectations. It expects capital spending in 2024 to be in the range of 1.25 billion to 1.35 billion. Estimates were a little over 2 billion. For the fourth quarter, adjusted earnings per share were $1.31, compared to expectations of $0.71. Yes, of course, it's below the prices in the fourth quarter of 2022, but that's because oil prices and natural gas prices were tough in 2022.
Total revenue will be 1, or just over $1.5 billion. Chesapeake also recently announced a merger with gas producer Southwestern. Stock prices have been flat since the beginning of the year.
Josh Lipton: Ines, thank you for joining us. appreciate.
