Midland-based Diamondback Energy said Tuesday it expects to maintain 2020Q4 oil production through 2021 with a capital budget 25-to-35 percent less than 2020 capex. Average oil production in 2020Q3 was 170,000 b/d (287,300 boed); the company operated 32 gross horizontal wells and turned 41 wells to production in 2020Q3. Production forecast for 2020Q4 is 170,000 to 175,000 b/d (280,000 to 290,000 boed) with full-year guidance of 178,000 to 182,000 b/d (290,000 to 305,000 boed).
Travis Stice, CEO, said, “We anticipate we can hold this production flat in 2021 while spending 25 to 35 percent less capital than in 2020… Production growth should not be discussed until commodity prices recover and global inventories return to normalized levels.” Diamondback is an independent oil and natural gas company focused on Permian Basin.
Diamondback subsidiary Viper Energy Partners also reported Tuesday on 2020Q3 average production of 15,829 b/d (26,409 boed). Viper’s “strong third quarter” reflected a 10 percent quarterly increase in oil production.
Diamondback needs to focus any Exploration/Development funds on the southern Delaware basin
around Verhalen/Saragosa, Reeves county, where there are seven stacked shale production levels down to 22,000 feet as discovered by Apache Corporation.