The stock of Diamondback Energy (FANG) is up 2% after the oil company reported fourth-quarter 2024 financial results that beat Wall Street expectations and raised its base annual dividend by 11%.
The Midland, Texas-based oil and natural gas producer reported earnings per share (EPS) of $3.64, topping consensus estimates of $3.35. Revenue in the October through December quarter totaled $3.71 billion, which beat forecasts of $3.55 billion.
Diamondback Energy’s management team said that its average daily oil production totaled 475,924 barrels in Q4 2024, up 74% from a year earlier. Total production at the company averaged 883,424 barrels of oil equivalent per day.
Dividend Hike
Additionally, Diamondback Energy said it generated $1.36 billion in free cash flow during the final quarter of last year. In all, the company returned $694 million to shareholders through dividends and stock buybacks during the quarter, comprising 51% of adjusted free cash flow.
Looking ahead, Diamondback Energy said that it expects oil production of 485,000 to 498,000 barrels per day and total production of 883,000 to 909,000 barrels of oil equivalent per day for the current first quarter of 2025. The company also said it’s planning for capital expenditures of $3.8 billion to $4.2 billion.
Diamondback Energy pays both a base and variable dividend to its shareholders. The combined dividend offers a yield of 5.34%. Going forward, management said they will raise the base or fixed annual dividend by 11% to $4 per share. The company declared a Q4 2024 base dividend of $1 a share, payable to stockholders of record as of March 13, 2025. FANG stock has declined 8% over the past 12 months.
Is FANG Stock a Buy?
The stock of Diamondback Energy has a consensus Strong Buy rating among 23 Wall Street analysts. That rating is based on 20 Buy and three Hold recommendations assigned in the past three months. The average FANG price target of $215.13 implies 28.59% upside from current levels. These ratings are likely to change after the company’s latest financial results.
