Diamondback Energy flags lower prices for oil production in fourth quarter

By Pooja Menon

Jan 12 (Reuters) - U.S. shale producer Diamondback Energy FANG.O on Monday flagged lower prices for its oil production in the fourth quarter, compared to the preceding three months.

Oil prices LCoc1 declined 9.2% during the three months ended December 31, as concerns about oversupply and tariffs outweighed geopolitical risks.

The company said the average realized prices, or the price it received for total oil production, declined to $58.00 per barrel in the fourth quarter, compared with $64.60 per barrel in the preceding three-month period.

The average realized prices for natural gas were $1.03 per thousand cubic feet (Mcf) after hedging, compared to $1.75 per Mcf in the third quarter, the energy producer said in a regulatory filing.

Brent crude futures lost about 19% in 2025, the most substantial annual percentage decline since 2020 and their third straight year of losses, the longest such streak on record. U.S. West Texas Intermediate crude CLc1 logged an annual decline of almost 20%.

Diamondback's quarterly snapshot comes just days after rival Exxon Mobil XOM.N also warned that lower crude oil prices could cut its quarterly upstream earnings by about $800 million to $1.2 billion.

Siebert Williams Shank & Co. analyst Gabriele Sorbara said the realized oil and natural gas liquids (NGL) pricing were modestly weaker than expected, while natural gas realizations were largely in line with expectations.

"Obviously, this will put a little pressure on the bottom line for 4Q25, but Street expectations have to adjust for the sector, as analysts mark-to-market their models for actuals," Sorbara added.

Analysts expect Diamondback Energy to post an adjusted profit of $2.64 per share for the fourth quarter, and $12.98 per share for the full year, according to data compiled by LSEG.

The company will release its financial results on February 23, its website showed.