Permian Basin-focused shale producer Diamondback Energy Inc. topped market expectations for quarterly profit on May 3 as COVID-19 vaccine rollouts and easing travel restrictions boosted oil prices.
A 27% surge in crude prices this year has lifted earnings of U.S. oil firms after the pandemic led to one of the worst downturns in the sector’s history.
Midland, Texas-based Diamondback’s average price for its oil and gas, excluding hedges, rose 54.5% sequentially in the first quarter to $42.36 per boe.
The company posted quarterly production of 307,422 boe/d, 2.8% higher than the previous quarter.
Diamondback also said on May 3 it would sell its Williston Basin assets in North Dakota and Montana for about $745 million and some Southern Midland Basin acreage for $87 million without disclosing the buyer.
The company had previously signaled that it could sell the Williston operations, which it had acquired in its $2.2 billion acquisition of Denver-based rival QEP Resources in March.
Oasis Petroleum Inc. said in a separate statement it would buy the Williston assets from Diamondback.
The asset sales promoted Diamondback to trim its full-year production forecast to between 350,000 boe/d and 360,000 boe/d, from 360,000 boe/d to 370,000 boe/d previously.
Adjusted net income attributable to the company came in at $379 million, or $2.30 per share, for the three months ended March 31, compared with $130 million, or 82 cents per share, in the fourth quarter.
Analysts were expecting a figure of $1.80 per share, according to Refinitiv IBES data.
Oil firms Equinor and Rosneft expect to extract some 250 million barrels of oil and 23 billion cubic meters of gas during the first part of the development of the Severo-Komsomolskoye oilfield in Russia, Equinor said on Dec. 23.
Repsol will still hold a 51% stake in the block after the deal.
Chevron said on Dec. 24 it expects Saudi-Kuwaiti Neutral Zone's Wafra oilfield to return to full production within 12 months.