Midland-based Diamondback Energy said Monday it expects to operate 14-to-15 rigs in the second half of 2023 after operating as many as 17 rigs earlier this year. Travis Stice, chairman and CEO, said Diamondback is aiming for 3 percent increase in production from 2023Q1 when it averaged 251,000 barrels per day of oil (up 13 percent from last year) and 425,000 boed (up 11 percent from last year). Stice told shareholders, “We believe well costs peaked over the last two quarters and have line-of-sight to meaningful decreases in the upcoming quarters.” Capital spending for 2023 remains $2.5 billion to $2.7 billion.
Recent acquisitions of Lario Permian and FireBird Energy contributed to increased production. Kaes Van’t Hof, president and CFO, said the FireBird acquisition could “over time … prove to be one of (Diamondback’s) better deals” in acreage and production. Diamondback said FireBird will produce 19,000 b/d of oil this year.
Diamondback also raised its target for asset divestures this year to $1 billion.