I am updating the Diamondback Energy (FANG) profile today. Below are some comments from the CEO during their Q4 conference call. Note their all-in cash costs of production. Most of the Sweet 16 are in this range, which is why they are still cash flow positive. Also, note that well economics in the Tier One areas of the Permian Basin are still reasonably good, even at today's oil price. Look for FANG to be an active buyer in what should be an attractive M&A market. At the end of previous oil price cycles we saw a lot of M&A. - Dan
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2016 began with oil prices testing recent lows. Diamondback Energy is well-positioned in this environment and continues to demonstrate that we are a low-cost operator with superior execution abilities. After our equity raise last month, Diamondback had over $250 million in cash at the end of January 2016 and an undrawn revolver.
Our all-in cash costs including G&A, LOE, transportation and production taxes are currently below $10 of BOE. To further illustrate our cost structure, Diamondback has 140 employees producing almost 38,000 BOEs a day. We've always run a lean organization, and times like now remind us how that's a prudent practice to follow.
We continue to emphasize our strategy of capital discipline, especially in light of current low oil prices and their impact on stockholder returns. We've consistently communicated that we accelerate development when returns to our stockholders are increasing and decelerate when returns weaken. We have widened our 2016 production and capital guidance ranges to allow for capital flexibility in our operations, as rig count and completions cadence may fluctuate through the year.
If you look at slide 5, we've outlined our actions on how we responded to a low price environment. We've reduced D&C costs and deferred drilling and completion activity, while maintaining our leasehold position. This allows Diamondback to preserve capital flexibility, maintain our conservative balance sheet and keep leverage low. Also on slide 5, in a lower for longer $35 per barrel WTI price scenario, Diamondback believes it can maintain conservative net debt to EBITDA under 2 times through the end of the decade without accessing the capital markets or drawing on our revolver.
On slide 6, we provided a more detailed scenario analysis highlighting the number of locations economic at different WTI prices and added a lower price tranche of $25 to $35 WTI. At the midpoint of this range, Diamondback has almost 500 economic locations, and we have over 1500 economic locations at $40 WTI. We've been able to increase the number of gross locations at each oil price since the last presentation because leading-edge D&C costs are currently at $5.25 million per 7500-foot lateral, down from $6 million used previously.
Turning briefly to M&A strategies, Diamondback Energy believes the current environment will present opportunities to grow our Company. We believe our execution ability and low cost structure make us a natural consolidator within the basin. However, we will only do deals that are accretive to our stockholders.