Midland’s Diamondback Energy said this week it is content to hold oil production flat while also being prepared to boost or reduce output if market conditions change significantly. In Diamondback’s third quarter earnings report Tuesday, Kaes Van’t Hof, CEO, said, “We firmly believe there is no need for incremental oil barrels until there is a proper price signal.”
Diamondback produced nearly 504,000 barrels per day of oil in Q3 from its 750,000 net acres in Permian Basin. Total production was nearly 943,000 boed – up from about 920,000 boed in 2Q. Diamondback is forecasting production in 4Q of 505,000 to 515,000 b/d of oil with total output of 927,000 to 963,000 boed. Forecasts will decline after Diamondback completes an asset sale to its Viper mineral and royalty subsidiary.
Production in 2026 first quarter also is forecast at 505,000 b/d of oil with capital spending in a range of $875 million to $975 million. In its conference call, Diamondback management “highlighted continued progress on cost control and technology adoption with flexibility to adapt to macroeconomic uncertainty.”
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