Diamondback Energy Inc (FANG)

[eFinanceMarkets]

Diamondback Energy +2% on big Q1 beat; J.P. Morgan says top midcap E&P

Diamondback Energy (FANG +1.9%) is higher after easily beating Q1 earnings expectations and revenues rise 168% Y/Y to a better than expected $235M.

FANG says Q1 production totaled 61.6K boe/day (75% oil), up 61% Y/Y from 38.3K boe/day and up 19% Q/Q from 51.9K boe/day; excluding the Brigham acquisition, organic production growth rose 13% Q/Q.

Q1 2017 cash operating costs were $9.31/boe; estimated Midland Basin drill, complete and equipment cost per completed lateral foot was $622, down 5% Q/Q.

Ahead of the report, J.P. Morgan named FANG its top small/midcap E&P stock, saying the company is well positioned and has “several meaningful de-risking catalysts,” including drilled but uncompleted wells on the Brigham acreage and FANG’s first drilled and completed well on the ReWard acreage.