Diamondback Energy Q1 Preview: Investors Eyeing Production Forecast Amid Oil Price Drop, Retail’s Divided

Wall Street expects the oil and gas producer to post adjusted earnings of $4.20 per share on revenue of $3.75 billion.

Diamondback Energy (FANG) stock fell marginally over the past week ahead of its quarterly earnings report on Monday.

According to FinChat data, Wall Street expects the oil and gas producer to post adjusted earnings of $4.20 per share on revenue of $3.75 billion.

The company has topped analysts’ expectations in three of the previous four quarters.

Diamondback’s quarterly production averaged 850,700 barrels of oil equivalent per day, the company had revealed in April.

The oil and gas producer reported an average unhedged realized price of $70.95 per barrel of oil during the first quarter, compared with $76.42 per barrel in the year-ago quarter.

Oil prices remained highly volatile during the first quarter amid concerns over demand and a boost in OPEC+ supply. Tougher sanctions on Iran and Venezuela lent some support.

Investors would be closely looking out for Diamondback’s second-quarter production plans and cost structure.

Further, the OPEC+ supply boost amid concerns over tariffs has pushed Brent crude prices below $60 per barrel, below the price levels where oil and gas producers can raise production sustainably.

According to RBC Capital Markets analysts, Diamondback remains a “core long-term, oil-weighted holding.”

The brokerage said last week that the shares will likely trade at a premium to peers given their low cost structure and deep inventory of tier-1 acreage in the Midland Permian.

Retail sentiment on Stocktwits was in the ‘neutral’ (53/100) territory, while retail chatter was ‘low.’

Diamondback shares have fallen 17.7% year to date (YTD) compared to a 5.1% fall in the Energy Select Sector SPDR Fund (XLE).

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