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May 4 (Reuters) – U.S. shale producer Diamondback Energy (FANG.O) raised its annual production forecast on Monday, after beating Wall Street expectations for first-quarter profit on a rally in oil prices.
The first quarter was marked by geopolitical uncertainty and extreme volatility in oil prices, which have surged more than 87% this year after the U.S.-Israeli war on Iran disrupted supply chains and damaged key energy infrastructure.
Although Diamondback’s operations are based in the U.S., the company benefits from higher commodity prices. Its realized price for each barrel of oil produced came in at $72.53, compared with $70.06 a year earlier.
“Because of our positioning, our preparation and this price signal, we are bringing incremental barrels to the market immediately,” CEO Kaes Van’t Hof said in a statement adding that the company was well positioned to respond to the current macro environment.
The company now expects to produce more than 972,000 barrels of oil equivalent per day in 2026, compared with its prior projection of 926,000 to 962,000 boepd.
It also raised its capital expenditure budget to roughly $3.9 billion in 2026, from $3.75 billion previously.
During the first quarter, Diamondback produced 979,356 boepd, up from 850,656 boepd a year earlier.
The Midland, Texas-based company posted an adjusted profit of $4.23 per share for the three months ended March 31, compared with analysts’ estimates of $3.30 per share, according to data compiled by LSEG.
Shares of the company were down 1% after the bell.
Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid
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