Diamondback Energy raises 2024 oil production target as U.S. shale drillers lift forecasts
(Bloomberg) – Diamondback Energy Inc. raised its 2024 oil production target, joining other U.S. shale drillers lifting full-year forecasts.
Diamondback, one of the largest independent operators in the oil-rich Permian basin of West Texas and New Mexico, expects to pumps as much as 276,000 bpd this year, up from an earlier top-end forecast of 275,000 bpd, according to a statement released Monday. The company also lowered its full-year capital spending budget.
According to the statement, Diamondback drilled 71 gross wells in the Midland basin and nine gross wells in the Delaware basin during Q2 2024. The company turned 79 operated wells to production in the Midland basin and seven gross wells in the Delaware basin, with an average lateral length of 11,203 ft.
Diamondback reported that operated completions during Q2 consisted of 21 Lower Spraberry wells, 20 Wolfcamp A wells, 16 Wolfcamp B wells, 10 Middle Spraberry wells, nine Jo Mill wells, five Dean wells, three Wolfcamp D wells, one Second Bone Spring well and one Barnett well.
For H1 2024, Diamondback drilled 140 gross wells in the Midland basin and 19 gross wells in the Delaware basin. The company turned 180 operated wells to production in the Midland basin and seven operated wells to production in the Delaware basin.
The average lateral length for wells completed during the first six months of 2024 was 11,343 ft, and consisted of 51 Lower Spraberry wells, 39 Wolfcamp A wells, 31 Wolfcamp B wells, 25 Jo Mill wells, 22 Middle Spraberry wells, nine Wolfcamp D wells, five Dean wells, three Upper Spraberry wells, one Second Bone Spring well and one Barnett well.
“We are clearly doing more with less and becoming more operationally efficient each quarter,” Diamondback wrote in a letter to stockholders.
Aggressive production increases by shale drillers complicates efforts by the Organization of Petroleum Exporting Countries and allies to manage global prices.
World Oil added information from Diamondback Energy’s financial statement in paragraphs 3-6.
