MIDLAND, Texas, April 10, 2018 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (FANG) (“Diamondback” or the “Company”) today announced that production for the first quarter of 2018 was 102.6 Mboe/d (75.6 Mbo/d; 74% oil), an increase of over 10% from Q4 2017 average daily production of 92.9 Mboe/d. < My Q1 forecast was 99.0 Mboe/d with 74.0 M barrels of crude oil per day.
First quarter 2018 average realized prices were $61.66 per barrel of oil, $2.20 per Mcf of natural gas and $24.64 per barrel of natural gas liquids, resulting in a total equivalent unhedged price of $50.55/boe, up 12% from $45.31/boe in Q4 2017. < Their realized commodity prices, including cash settlements on hedges should be higher than what I had in the forecast for oil, but lower for natural gas and NGLS. Overall, higher.
Viper Energy Partners LP (“Viper”), a subsidiary of Diamondback, also announced today its first quarter 2018 production volumes of 14.1 Mboe/d (10.1 Mbo/d; 71% oil), an increase of approximately 14% from Q4 2017 average daily production of 12.4 Mboe/d.
Diamondback is currently running eleven drilling rigs and five dedicated completion crews.
"In just over five years as a public company, Diamondback has grown production volumes to over 100,000 barrels of oil equivalent production per day from a starting point of ~2,500 boe/d. Since our IPO in October 2012, our industry has experienced oil prices as high as $110 and as low as $26 per barrel, and Diamondback has grown production over 40 times in spite of these challenges while maintaining a fortress balance sheet. This growth has been a direct result of an unwavering focus on low cost operations, accretive growth through a disciplined returns-focused acquisition strategy and, above all, best in class execution of our operating plan," stated Travis Stice, Chief Executive Officer of Diamondback.
Mr. Stice continued, “Diamondback will remain disciplined and committed to full-cycle economics for both our forward operating plan and acquisition strategy. The Company has a proven track record of disciplined, accretive acquisitions, as well as a significant runway of premium inventory highly economic at today’s commodity prices. We will continue to demonstrate best in class production growth within cash flow and add rigs as operating cash flow allows, with our 11th operated rig recently beginning operations in the Delaware Basin.”
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas Company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback's activities are primarily focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations.
About Viper Energy Partners LP
Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on oil-weighted basins, primarily the Permian Basin in West Texas.
Diamondback Energy (FANG) Update
Diamondback Energy (FANG) Update
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Diamondback Energy (FANG) Update
I have updated my forecast/valuation model for Diamondback Energy based on the operational update above. It will be posted to the EPG website later today.
My valuation increases by $2.00/share to $162.00, which compares to First Call's price target of $155.85.
All of my forecast/valuation models assume $60/bbl WTI and $2.75/mcf HH for 2018 and 2019 (seasonally adjusted for natural gas). The NGL prices I am using for the future periods is my SWAG and I have been too high for NGL prices during the first half of this year, so I am bringing them down a bit as I update forecast models. FANG is heavily weighted to crude oil, so this had very little impact on their revenues.
Diamondback give conservative guidance and they have a very strong balance sheet. The longer oil prices remain high, the higher my confidence level in this one goes. Beyond 2018, they have very little of their oil hedged. That is a good thing if you believe oil prices are going higher.
Another BIG PLUS for this one: 100% of their capex program will be funded by cash flow from operations from now on.
My valuation increases by $2.00/share to $162.00, which compares to First Call's price target of $155.85.
All of my forecast/valuation models assume $60/bbl WTI and $2.75/mcf HH for 2018 and 2019 (seasonally adjusted for natural gas). The NGL prices I am using for the future periods is my SWAG and I have been too high for NGL prices during the first half of this year, so I am bringing them down a bit as I update forecast models. FANG is heavily weighted to crude oil, so this had very little impact on their revenues.
Diamondback give conservative guidance and they have a very strong balance sheet. The longer oil prices remain high, the higher my confidence level in this one goes. Beyond 2018, they have very little of their oil hedged. That is a good thing if you believe oil prices are going higher.
Another BIG PLUS for this one: 100% of their capex program will be funded by cash flow from operations from now on.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group