Canada markets closed
  • S&P/TSX

    19,472.74
    +181.74 (+0.94%)
     
  • S&P 500

    4,232.60
    +30.98 (+0.74%)
     
  • DOW

    34,777.76
    +229.26 (+0.66%)
     
  • CAD/USD

    0.8251
    +0.0012 (+0.14%)
     
  • CRUDE OIL

    65.69
    +0.79 (+1.22%)
     
  • BTC-CAD

    71,326.23
    -666.84 (-0.93%)
     
  • CMC Crypto 200

    1,549.48
    +113.70 (+7.92%)
     
  • GOLD FUTURES

    1,832.80
    +1.50 (+0.08%)
     
  • RUSSELL 2000

    2,271.63
    +30.21 (+1.35%)
     
  • 10-Yr Bond

    1.5770
    +0.0160 (+1.02%)
     
  • NASDAQ futures

    13,746.25
    +36.50 (+0.27%)
     
  • VOLATILITY

    16.69
    -1.70 (-9.24%)
     
  • FTSE

    7,129.71
    +53.54 (+0.76%)
     
  • NIKKEI 225

    29,634.55
    +276.73 (+0.94%)
     
  • CAD/EUR

    0.6784
    +0.0014 (+0.21%)
     

Diamondback (FANG) Gives Preliminary Update on Q1 Production

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Diamondback Energy, Inc. FANG recently issued a preliminary update on its first-quarter 2021 production and full-year guidance.

The company’s first-quarter 2021 production of oil and natural gas averaged at 307,400 barrels of oil equivalent per day (Boe/d) with oil output of 184,200 barrels per day. The average realized unhedged crude oil price in the period was $56.94 per barrel while that of natural gas liquids was $22.94. The same for natural gas was $3.05 per thousand cubic feet. Overall, the company fetched $42.36 per barrel of oil equivalent. Also, the company’s first quarter cash capital expenditure outlook is projected in the $280-$300 million range.

During the March quarter of this year, Diamondback Energy concluded the acquisition of QEP Resources in an all-stock deal worth $2.2 billion comprising $1.6-billion net debt as of Sep 30, 2020. The deal was closed upon fulfilling all the pending approvals and customary conditions.

Also, during the same time frame, Diamondback Energy purchased lease interests and assets in Midland from the privately held Guidon Operating LLC for approximately $850 million. The QEP Resources buyout combined with the acquired assets of Guidon Operating LLC will increase the company’s total leasehold interests to above 276,000 net surface acres in the Midland Basin.

Meanwhile, Diamondback Energy revises its 2021 production view in the 360-370 thousand barrels of oil equivalent per day (MBOE/d) compared with the prior projection of 308-325 MBOE/d. In addition, the company expects oil production in the band of 218-222 MBO/d in 2021 with approximately 12 MBO/d coming from its Williston Basin reserves. It also renews its current-year cash capital expenditure forecast between $1.6 billion and $1.75 billion compared with the prior guided range of $1.35-$1.55 billion. Further, the company plans to drill 178-192 net wells and estimates to complete 250-259 net wells with a lateral length of nearly 10,300 feet, on average, in 2021.

We note that Diamondback Energy’s affiliate organization Viper Energy Partners VNOM also recently provided an earlier update on its first-quarter production. The company’s March-quarter production of oil and natural gas averaged at 26,066Boe/d with oil output of 15,500 barrels per day. The average realized unhedged crude oil price in the same period was $56.16 per barrel while that of natural gas liquids was $22.42. The same for natural gas was $2.77 per thousand cubic feet. Overall, the company realized $41.14 per barrel of oil equivalent.

About Diamondback Energy

Founded in 2007, Midland, TX-headquartered Diamondback Energy is an independent oil and gas exploration & production company with its primary focus on the Permian Basin where it has around 394,000 net acres.

Diamondback Energy is set to release first-quarter 2021 results on Monday May 3 after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s profit is $1.52 per share and for revenues is $884.55 million.

Zacks Rank & Other Key Picks

Diamondback Energy currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks in the energy space include Matador Resources Company MTDR and Devon Energy Corporation DVN, each presently flaunting a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Devon Energy Corporation (DVN) : Free Stock Analysis Report
 
Matador Resources Company (MTDR) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research