Diamondback Energy (FANG) Q4 Results
Posted: Tue Feb 14, 2017 5:51 pm
MIDLAND, Texas, Feb. 14, 2017 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the fourth quarter ended December 31, 2016.
HIGHLIGHTS
Q4 2016 production of 51,900 Boe/d (73% oil), up 16% over Q3 2016 and 38% year over year < Compares to my Q4 production forecast of 47,000 Boe/d.
Full year 2016 production of 43.0 Mboe/d (73% oil), up 30% year over year
Q4 2016 average realized prices were $46.72 per barrel of oil, $2.53 per Mcf of natural gas and $17.70 per barrel of natural gas liquids, resulting in a total equivalent price of $38.72/boe, up 13% from the Q3 2016 total equivalent price of $34.39/boe
Q4 2016 cash operating costs of $8.48/boe, including LOE of $4.89/boe and cash G&A of $0.92/boe
Proved reserves as of December 31, 2016 of 205.5 MMboe (68% oil), up 31% year over year; proved developed finding and development ("PD F&D") costs of $7.26/boe
Previously announced pending acquisition of Brigham Resources expected to close at the end of February 2017
Increasing pro forma full year 2017 production guidance to 69.0 to 76.0 Mboe/d, up from 64.0 to 73.0 Mboe/d
Operating six horizontal rigs, including first operated rig in the Southern Delaware Basin, with plans to add two additional rigs after the closing of the pending Brigham Resources acquisition
“Diamondback achieved over 40% production growth in the second half of 2016 by showcasing our ability to respond quickly to a rising commodity price environment. We ended the year operating five rigs, and as I said in November, we are just beginning to bear the fruit of our activity ramp. We recently added a sixth operated rig, our first in the Southern Delaware Basin, and plan to add two more rigs to the Delaware Basin following the closing of the pending Brigham transaction at the end of February," stated Travis Stice, Chief Executive Officer of Diamondback.
Mr. Stice continued, “After doubling our Tier 1 acreage in the second half of 2016, our focus now shifts to execution. Diamondback's success has and continues to be driven by our ability to identify accretive opportunities, integrate these efficiently into operations and convert resource into cash flow. Our resource expansion into the Southern Delaware Basin marks another opportunity to expand our operational leadership in regards to low cost operations, best in class well productivity and, above all, creating shareholder value. Our updated 2017 guidance implies over 65% production growth at the midpoint, while conservatively preparing for potential service cost inflation with respect to capital guidance. Our pro forma balanced footprint secures Diamondback's ability to generate leading growth rates within cash flow for years to come."
I will update my forecast model tonight. - Dan
HIGHLIGHTS
Q4 2016 production of 51,900 Boe/d (73% oil), up 16% over Q3 2016 and 38% year over year < Compares to my Q4 production forecast of 47,000 Boe/d.
Full year 2016 production of 43.0 Mboe/d (73% oil), up 30% year over year
Q4 2016 average realized prices were $46.72 per barrel of oil, $2.53 per Mcf of natural gas and $17.70 per barrel of natural gas liquids, resulting in a total equivalent price of $38.72/boe, up 13% from the Q3 2016 total equivalent price of $34.39/boe
Q4 2016 cash operating costs of $8.48/boe, including LOE of $4.89/boe and cash G&A of $0.92/boe
Proved reserves as of December 31, 2016 of 205.5 MMboe (68% oil), up 31% year over year; proved developed finding and development ("PD F&D") costs of $7.26/boe
Previously announced pending acquisition of Brigham Resources expected to close at the end of February 2017
Increasing pro forma full year 2017 production guidance to 69.0 to 76.0 Mboe/d, up from 64.0 to 73.0 Mboe/d
Operating six horizontal rigs, including first operated rig in the Southern Delaware Basin, with plans to add two additional rigs after the closing of the pending Brigham Resources acquisition
“Diamondback achieved over 40% production growth in the second half of 2016 by showcasing our ability to respond quickly to a rising commodity price environment. We ended the year operating five rigs, and as I said in November, we are just beginning to bear the fruit of our activity ramp. We recently added a sixth operated rig, our first in the Southern Delaware Basin, and plan to add two more rigs to the Delaware Basin following the closing of the pending Brigham transaction at the end of February," stated Travis Stice, Chief Executive Officer of Diamondback.
Mr. Stice continued, “After doubling our Tier 1 acreage in the second half of 2016, our focus now shifts to execution. Diamondback's success has and continues to be driven by our ability to identify accretive opportunities, integrate these efficiently into operations and convert resource into cash flow. Our resource expansion into the Southern Delaware Basin marks another opportunity to expand our operational leadership in regards to low cost operations, best in class well productivity and, above all, creating shareholder value. Our updated 2017 guidance implies over 65% production growth at the midpoint, while conservatively preparing for potential service cost inflation with respect to capital guidance. Our pro forma balanced footprint secures Diamondback's ability to generate leading growth rates within cash flow for years to come."
I will update my forecast model tonight. - Dan