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Diamondback Energy, Inc. Provides Second Quarter Update and Announces Revised 2020 Guidance
MIDLAND, Texas, July 14, 2020 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) ("Diamondback" or the "Company") today provided an operational
About this update from Diamondback Energy, Inc.
[{"type":"text","content":"MIDLAND, Texas, July 14, 2020 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (\"Diamondback\" or the \"Company\") today provided an operational update for the second quarter of 2020 and announced revised full year 2020 guidance.\n SECOND QUARTER 2020 UPDATE Q2 2020 average production of 176.3 MBO/d (294.1 MBOE/d). After voluntarily curtailing 9.0 MBO/d (16.1 MBOE/d) of total Q2 2020 production, primarily in May, Diamondback elected to return this curtailed production in June, with nearly all curtailed production back online todayQ2 2020 average realized hedged prices of $35.21 per barrel of oil, $7.17 per barrel of natural gas liquids and $0.33 per Mcf of natural gas, resulting in a total equivalent price of $22.95 per BOE. Diamondback realized total hedging gains of $211 million in the second quarter, including $11 million of realized gains from the early termination of 10.0 MBO/d of Q3 2020 oil hedgesQ2 2020 average unhedged realized prices of $21.99 per barrel of oil, $7.17 per barrel of natural gas liquids and $0.63 per Mcf of natural gas, resulting in a total equivalent price of $15.39 per BOEQ2 2020 cash CAPEX of $562 million. Q2 2020 activity-based CAPEX incurred of approximately $348 millionDrilled 58 gross operated horizontal wells and turned 15 wells to production in the second quarter, with nine wells turned to production in April, six in May and zero in JuneAfter averaging 13 operated drilling rigs in the second quarter with minimal completion activity, the Company is currently operating seven drilling rigs and three completion crews, with the third completion crew having begun operations in July. Drilling activity is expected to be further reduced to six rigs in JulyAssuming a continuation of current market conditions, Diamondback plans to operate between five and six operated drilling rigs and between three and four completion crews for the remainder of 2020 REVISED 2020 PRODUCTION AND CAPITAL GUIDANCE After taking a significant, nearly three-month break from completion activity versus the Company’s original expectations of just over one month, and accounting for higher than expected curtailed volumes in the second quarter, Diamondback is revising full year 2020 production guidance lower than expectations announced earlier in 2020. A summary of revised 2020 production guidance and narrowed activity lev...