Diamondback Provides Supplemental Operational Update

About this update from Diamondback Energy, Inc.

[{"type":"text","content":"MIDLAND, Texas, March 19, 2020 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (\"Diamondback\" or the \"Company\") today provided an update to the operational press release it issued on March 9, 2020, as well as an update to the Company’s 2020 and 2021 oil hedge positions.\n Following last week's release, Diamondback has reduced activity further, including a minimum one-month break for all completion crews operating for the Company. After that break, the Company expects to judiciously reactivate crews and run between three and five completion crews, down from nine crews, for the rest of 2020 dependent upon future commodity price, with the primary goal of protecting the Company’s balance sheet and cash flow. Diamondback plans to reduce its operated drilling rig count to ten by early in the third quarter as contracts roll off over the next few months, and plans to run between six and ten rigs thereafter dependent upon future commodity price, representing more than a 50% reduction in rigs from earlier this year. As a result of this reduction in activity, the Company is expected to reduce its capital budget for 2020 by $1.2 billion at the midpoint to $1.5 - $1.9 billion from its previously announced $2.8 - $3.0 billion capital budget, and is prepared to decrease its budget further should commodity prices remain weak. The Company’s 2020 infrastructure budget will be reduced to $90 - $120 million from the $150 - $175 million previously announced. The Company’s midstream budget will be reduced to $100 - $150 million from the $200 - $225 million previously announced. The Company intends to release revised production guidance in the coming weeks, but expects production to decline from the first quarter of 2020 through the end of the year, with full year oil production lower than fourth quarter 2019 oil production of 195,000 barrels per day. “We are in an unprecedented and uncertain market driven by fear and panic. In this environment where we do not get paid adequately for the product we produce, we will reduce activity and focus on maintaining our financial strength. Diamondback is protecting its downside by hedging almost all of its expected 2020 production and has added significant hedges for 2021 since our last update ten days ago. We are pulling out our 2016 playbook by high-grading locations to where we have mineral ow...

More updates from Diamondback Energy, Inc.