Diamondback Energy beats quarterly profit estimates, raises production forecast

Aug. 3 (Reuters) - Diamondback Energy beat analysts' expectations for second-quarter profit and raised its annual production forecast on Monday, as supply disruptions due to the prolonged conflict in the Middle East keep global oil prices elevated.

The war in Iran, which started in late February, nearly shut the flow of Middle East cargoes through the crucial Strait of Hormuz, sending Brent crude from an average of $69.82 a barrel in January to $126.41 in April and WTI from $65.17 to $109.64.

The Midland, Texas-based company posted an adjusted profit of $6.48 per share for the three months ended June 30, compared with analysts' estimates of $6.01, according to data compiled by LSEG.

Diamondback now expects to produce over 1 million barrels of oil equivalent per day in 2026, compared with its prior projection of 972,000 boepd.

The company produced 1,018 Mboepd in the second quarter, up from 919,879 boepd a year earlier.

Although Diamondback's operations are based in the U.S., the shale producer, like other oil producers, benefits from higher commodity prices. The company's realized price for each barrel of oil produced came in at $94.33, compared with $62.34 a year earlier.