DiamondBack Energy Inc. on April 12 raised its full-year production outlook as the shale oil and gas producer accounted for its acquisition of rival QEP Resources and benefited from a recovery in crude prices.
Commodity prices are picking up as the global roll-out of vaccines against COVID-19 gains momentum, after a year where the health crisis decimated demand in the energy sector and hammered debt-laden shale companies.
Diamondback, which closed its $2.2 billion acquisition of Denver-based producer QEP Resources last month, said it expects 2021 net oil production of 360,000 to 370,000 boe/d, compared with its earlier estimate of 308,000 to 325,000 boe/d.
The Permian Basin producer also raised its 2021 capex forecast to between $1.6 billion and $1.75 billion versus its previous forecast of $1.35 billion to $1.55 billion.
Diamondback also predicted average production of 307,400 boe/d in the first quarter, compared with 299,000 boe/d in the previous quarter.
Recommended Reading
Marketed: EnCore Permian Holdings 17 Asset Packages
2024-03-05 - EnCore Permian Holdings LP has retained EnergyNet for the sale of 17 asset packages available on EnergyNet's platform.
Continental Resources Makes $1B in M&A Moves—But Where?
2024-02-26 - Continental Resources added acreage in Oklahoma’s Anadarko Basin, but precisely where else it bought and sold is a little more complicated.
Is Grayson Mill the Next Bakken Domino to Fall After Chevron-Hess?
2024-01-31 - As E&Ps look to bulk up outside of the Permian Basin, EnCap-backed Bakken player Grayson Mill Energy is reportedly exploring a sale valued around $5 billion.
EQT, Equinor Agree to Massive Appalachia Acreage Swap
2024-04-15 - Equinor will part with its operated assets in the Marcellus and Utica Shale and pay $500 million to EQT in exchange for 40% of EQT’s non-operated assets in the Northern Marcellus Shale.
Which Haynesville E&Ps Might Bid for Tellurian’s Upstream Assets?
2024-02-12 - As Haynesville E&Ps look to add scale and get ahead of growing LNG export capacity, Tellurian’s Louisiana assets are expected to fetch strong competition, according to Energy Advisors Group.