Business
Diamondback Energy, Inc. Provides Third Quarter Update
MIDLAND, Texas, Oct. 13, 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, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today provided an operational update for the third quarter of 2020.\n HIGHLIGHTS Q3 2020 average production of 170.0 MBO/d (287.3 MBOE/d)Q3 2020 average realized hedged prices of $38.17 per barrel of oil, $12.09 per barrel of natural gas liquids and $0.95 per Mcf of natural gas, resulting in a total equivalent price of $26.22 per BOE; hedged pricing excludes $5.8 million of realized gains from the early termination of 6.55 MBO/d of Q4 2020 oil hedgesQ3 2020 average unhedged realized prices of $38.75 per barrel of oil, $12.09 per barrel of natural gas liquids and $1.11 per Mcf of natural gas, resulting in a total equivalent price of $26.75 per BOEQ3 2020 cash CAPEX of $281 million. Q3 2020 activity-based CAPEX incurred of approximately $206 millionExited the third quarter with $0 drawn on the Company’s revolving credit facility and over $2 billion of liquidityDrilled 32 gross operated horizontal wells and turned 41 wells to production in the third quarterReiterating Q4 2020 production guidance of 170 – 175 MBO/d (280 – 290 MBOE/d), full year 2020 production guidance of 178 – 182 MBO/d (290 – 305 MBOE/d) and full year 2020 cash CAPEX of $1.8 - $1.9 billionDiamondback continues to believe it can maintain Q4 2020 oil production through full year 2021 with a capital budget 25% – 35% less than 2020’s capital budget “After returning curtailed production in a second quarter that included minimal completion activity due to a historic decline in commodity prices, Diamondback returned to work in the third quarter to stem production declines and stabilize our production base. As expected, production bottomed in the third quarter and is set to rise slightly in the fourth quarter to meet our fourth quarter production target of between 170,000 and 175,000 barrels of oil per day. This production level is the proposed baseline for our future activity plans, and we anticipate we can hold this production flat in 2021 while spending 25% - 35% less capital than in 2020. We exited the quarter with no balance on our revolving credit facility, implying true free cash flow generation in the third quarter. Diamondback is expected to continue to generate free cash flow at current forward commodity prices, with excess free cash flow ab...