Midland-based Diamondback Energy last week increased fullyear guidance for 2024 production and decreased its forecast for capital expenditures. Diamondback reported production of 276,100 barrels of oil per day (474,700 boed) during second quarter with 80 gross operated wells drilled (71 in Midland, 9 in Delaware) and 86 wells completed (79 in Midland, 7 in Delaware). Guidance for 2Q was 271,000 to 275,000 b/d of oil.
Travis D. Stice, chairman and CEO, said Aug. 5, “We are clearly doing more with less and becoming more operationally efficient each quarter. On average, we are drilling wells approximately 10 percent faster than at the beginning of the year primarily due to bit and bottom hole assembly improvements.”
Stice said Diamondback raised 2024 oil production guidance to 273,000 to 276,000 b/d (from 270,000 to 275,000). The company expects to complete 310 to 330 gross wells with an average lateral length of 11,800 feet this year. The budget for 2024 total capital expenditures was lowered to $2.35 billion to $2.45 billion (from $2.3 billion to $2.55 billion) “largely the result of improved cycle times and reduced activity planned in second half 2024.” Diamondback plans to drop 2 rigs (to 10 from 12) and 1 frac crew (to 3 from 4) in second half.