What drove FANG's earnings beat in 2024?

Diamondback Energy's (FANG) earnings beat in 2024 can be attributed to several key factors: 1. **Revenue Growth**: The company's total revenue grew by 32% to $11.07 billion in 2024. This increase was driven by higher oil, natural gas, and natural gas liquid sales, which rose from $2,165 million in 2023 to $3,471 million in 2024. The sales of purchase oil, natural gas, and natural gas liquids also contributed significantly, with revenues increasing from $1,896 million to $2,174 million. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |FANG|FANG.O|Diamondback Energy|2024 Q1|8.445040214477212|15.688311688311687|10.309278350515473|185| |FANG|FANG.O|Diamondback Energy|2024 Q2|52.55972696245734|29.39030745179781|52.78688524590165|185| |FANG|FANG.O|Diamondback Energy|2024 Q3|-28.700906344410875|13.034188034188036|-37.08086785009863|185| |FANG|FANG.O|Diamondback Energy|2024 Q4|27.596439169139465|66.56193895870736|-31.273408239700373|185| 2. **Net Income Growth**: Diamondback Energy reported a net income of $3.7 billion in 2024, with a growth rate of 0.11%. This growth was supported by higher revenues and effective cost management. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |FANG|FANG.O|Diamondback Energy|2024 Q1|2.227E9|8.09E8|4.28|185| |FANG|FANG.O|Diamondback Energy|2024 Q2|2.483E9|8.94E8|4.66|185| |FANG|FANG.O|Diamondback Energy|2024 Q3|2.645E9|7.08E8|3.19|185| |FANG|FANG.O|Diamondback Energy|2024 Q4|3.711E9|1.29E9|3.67|185| 3. **Diluted EPS Stability**: Despite a slight decrease in the diluted EPS from $15.53 in 2023 to $15.53 in 2024, the stability of this metric indicates that the earnings growth was not solely dependent on increased share count. 4. **Analyst Expectations**: Analysts had a positive outlook on FANG, with an average price target of $210.07, indicating a "Buy" consensus. This optimism was likely based on the company's solid financial performance and growth prospects. In conclusion, FANG's earnings beat in 2024 was driven by strong revenue growth, effective cost management, and stable diluted EPS, coupled with positive analyst expectations.