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MIDLAND, Texas, May 7, 2013 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback" or the "Company") today announced financial and operating results for the first quarter ended March 31, 2013.
During the first quarter of 2013, net income was $5.4 million, or $0.15 per diluted share. Net income for the first quarter includes a net unrealized gain on commodity derivatives of $1.5 million ($1.0 million net of tax), or $0.03 per share. Without the impact of this item, net income for the first quarter of 2013 would have been $4.4 million, or $0.12 per share.
The ST NW 2501H in Midland County, with a 4,451' lateral, was put on submersible pump and achieved a new peak 24 hour initial production ("IP") rate of 1,054 Boe/d, with a peak 30 day average IP rate of 655 Boe/d (90% oil).
The Neal B Unit 8-2H in Upton County, with a 6,501' lateral, was put on submersible pump and achieved a peak 24 hour IP rate of 1,134 Boe/d (88% oil).
Results from 8 horizontal Wolfcamp B wells have achieved peak 24 hour IP rates that averaged 836 Boe/d (87% oil) from lateral lengths that averaged 4,945'.
Lease Operating Expense ("LOE") decreased 20% to $12.61/Boe in Q1 2013, from $15.68/Boe in Q4 2012, on a pro forma basis.
Q1 2013 exit rate production was 5.5 MBoe/d, a 21% increase from the pro forma Q4 2012 exit rate. Oil exit rate increased 38% over the same period.
Q1 2013 EBITDA was $20.3 million.
Diamondback's borrowing base increased 33% to $180 million on May 6, 2013.
"During the first quarter of 2013, we continued to ramp production while executing on our initiatives to achieve best-in-basin margins. We are encouraged by the early success of our horizontal drilling program where we have averaged 24 hour IP rates from eight horizontal wells of 836 Boe/d (87% oil) with lateral lengths that average 4,945'. Each of these wells is performing at or above the type curve we predicted for these wells," stated Travis Stice, Chief Executive Officer of Diamondback. Mr. Stice added, "Our operations team continues to improve performance by reducing cycle times and costs to a level we believe is among the best in the Midland Basin. Our Q1 2013 average well cost for short laterals was $6.0 million which is a 22% improvement over Q4 2012, and longer laterals averaged $7.8 million for Q1 2013 which is a 10% improvement over Q4 2012. Finally, we are starting to realize the benefits from our infrastructure investments, reducing our total LOE 20% from the previous quarter to $12.61 per Boe, for the first quarter of 2013 from $15.68 per Boe in the fourth quarter of 2012 on a pro forma basis."