Diamondback Energy reports lower oil prices in the fourth quarter

Diamondback Energy, the U.S. producer of shale oil, announced on Monday that its oil prices were lower in 'the fourth quarter' compared with 'the previous three months.

The price of oil fell 9.2% in the three-month period ending December 31 as fears about tariffs and oversupply outweighed geopolitical risk.

The average realized price, or 'price received' for the total production of oil, fell to $58.00 a barrel during the fourth quarter, down from $64.60 a barrel over the previous three-month period.

After hedging, the average realized price for natural gas was $1.03 per 1,000 cubic feet (Mcf), compared to $1.75 in the third quarter, according to a filing with the regulatory authority.

Brent crude futures have lost 19% since 2020, which is the largest annual percentage drop ever recorded. This is the third consecutive year that Brent has suffered losses. U.S. West Texas Intermediate oil logged a decline of nearly 20% in a single year.

Diamondback's quarter-end report comes just days after Exxon Mobil warned that lower crude oil prices could reduce its quarterly upstream earnings of about $800 to $1.2 billion.

According to data compiled LSEG, analysts?expect Diamondback Energy will post a?adjusted?profit of $2.64 for the fourth quarter and $12.98 for?the entire year.

It was revealed on the company's website that it will announce its financial results in February. Reporting by Pooja Meon in Bengaluru, Editing by Alan Barona

(source: Reuters)