Diamondback misses profit estimates as weaker oil prices weigh

Feb 23 (Reuters) - Diamondback Energy FANG.O fell short of Wall Street expectations for fourth-quarter profit on Monday, as the U.S. shale producer struggled with weaker oil prices, sending its shares down more than 2% in extended trading.

Global crude oil prices have been pressured by growing worries of a glut and the increasing prospect of more Venezuelan barrels returning to the market. WTI crude CLc1 fell about 20% in 2025, and declined 8% in the October-December quarter.

Benchmark Brent crude LCOc1 averaged about $63.13 per barrel during the October-December period, down more than 9% sequentially.

The company said the average price was $58 per barrel during the fourth quarter, compared with $69.48 per barrel a year earlier.

However, record oil production in the U.S. helped cushion the impact of weaker prices, with the country's output averaging about 13.6 million barrels per day in 2025.

Diamondback said it produced 969,120 barrels of oil equivalent per day, compared with 883,424 boepd a year earlier.

Diamondback now expects current-year net production to be between 926,000 boepd and 962,000 boepd. It forecasts capital expenditure to be between $3.6 billion and $3.9 billion.

The company said average realized prices for natural gas during the fourth quarter came in at $1.03 per thousand cubic feet (Mcf) after hedging, compared with 82 cents per Mcf a year earlier.

The Midland, Texas-based company posted an adjusted profit of $1.74 per share for the three months ended December 31, compared with analysts' expectations of $2.08 per share, according to data compiled by LSEG.