Diamondback Energy (FANG) ahead of Q3 results: what analysts expect

what happened

Oil and gas producer Diamondback Energy (FANG) will publish its third-quarter report Monday after the market closes, according to StockStory. Last quarter the company posted revenue of $5.56 billion, up 51.2% from a year earlier, which topped analyst forecasts. Its EBITDA and earnings per share also beat estimates, while oil production rose 5.9% year on year.

The market expects revenue to grow 24.1% year on year this quarter, slower than the 48.6% gain a year earlier. Analysts have broadly held their estimates over the past 30 days. Among peers, Cactus reported revenue up 63.2% in line with expectations, while Expand Energy posted revenue up 11.6%, beating estimates by 54.4%, yet its shares fell 3.2%.

Shares in the upstream and integrated segment averaged a 6.2% gain over the past month, and Diamondback rose 11.8%. The average analyst price target is $239.45, against a current share price of $206.58.

why it matters

The report matters as a read on US shale output: revenue and production volumes show how quickly producers are growing supply at current oil prices. Strong figures could support interest in oil producer stocks, while weak ones would add to concerns about the sector's investment plans.

market impact

US oil producers: the FANG report sets the tone for sector stocks and production expectations.

tags

instruments