November 5, 2019 / 9:24 PM / in 4 months

Permian producer Diamondback misses on profit, shares plunge

(Reuters) - Permian producer Diamondback Energy Inc on Tuesday missed Wall Street estimates for quarterly profit on the back of lower oil and gas prices, sending its shares down 12% after hours.

Diamondback’s results is the latest in a string of disappointing quarterly numbers from shale companies that have struggled to spend less and shore up capital for dividends and buybacks.

The company, which operates exclusively in the Permian Basin and therefore has access to the cheapest source of crude in the United States, said average price per barrel of oil equivalent fell 15% in the quarter to $36.59.

Its production more than doubled to 287,100 barrels of oil equivalent per day (boepd) and the company tightened its full-year forecast for average daily production of 281,000 boepd to 282,000 boepd, from its previous range of 277,000 boepd to 284,000 boepd.

Diamondback also said it expects 2020 production to rise about 10% to 15% from 2019.

The company also raised its capital budget for the year slightly to a range of $2.85 billion and $2.90 billion and said it expects to spend between $2.8 billion and $3 billion next year.

Net income attributable to the company rose to $368 million, or $2.26 per share, in the three months ended Sept. 30, from $157 million, or $1.59 per share.

Excluding items, Diamondback earned $1.47 per share, missing analysts average estimate of $1.74, according to Refinitiv IBES data.

Shares of the company, which have fallen about 28% this year, were down 12.3% at $79.12 in extended trading.

Reporting by Arathy S Nair in Bengaluru; Editing by Shailesh Kuber

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