Midland’s Diamondback Energy said Monday its production in second quarter of 1.018 million boed marks the first time output reached at least one million boed. Diamondback’s output increased about 4 percent since the beginning of the U.S.-Israeli war in Iran as the company worked on drilled but uncompleted (DUC) wells. Oil production in 2Q increased to 525,000 b/d.
Kaes Van’t Hof, CEO, said Diamondback is not increasing capital spending, which is expected to be $3.9 billion this year ($996 million in 2Q). Technical innovations, he said, will improve oil recovery from the company’s nearly 9,000 locations on 902,000 acres in Permian Basin. Diamondback aims to help replenish inventories lost because of the conflict in the Middle East.
Van’t Hof said Diamondback expects single-digit organic growth this year “while maintaining capital efficiency and running five frac crews consistently throughout the year… Diamondback can react quickly to the positive or the negative. In this environment, it’s prudent to be able to do that.”
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