Oil and gas producer Diamondback Energy (NASDAQ: FANG) will be reporting results this Monday after market close. Here’s what investors should know.
Diamondback Energy beat analysts’ revenue expectations last quarter, reporting revenues of $3.38 billion, down 9% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ EBITDA estimates but a significant miss of analysts’ EPS estimates. It reported 47.17 million oil production, up 7.7% year on year.
Is Diamondback Energy a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Diamondback Energy’s revenue to decline 5.2% year on year, a reversal from the 81.8% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Diamondback Energy has a history of exceeding Wall Street’s expectations.
Looking at Diamondback Energy’s peers in the upstream & integrated segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Northern Oil and Gas’s revenues decreased 11.1% year on year, beating analysts’ expectations by 3.1%, and CNX Resources reported revenues up 67.1%, topping estimates by 44.1%. Northern Oil and Gas traded up 1.4% following the results while CNX Resources was down 3.7%.
Read our full analysis of Northern Oil and Gas’s results here and CNX Resources’s results here.
There has been positive sentiment among investors in the upstream & integrated segment, with share prices up 4.1% on average over the last month. Diamondback Energy is up 6.8% during the same time and is heading into earnings with an average analyst price target of $222.70 (compared to the current share price of $207.51).
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