MIDLAND, Texas, Aug. 5, 2014 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback" or the "Company") today announced financial and operating results for the second quarter ended June 30, 2014.
- As previously reported in the Company's interim operational update, Q2 2014 production increased 32% to 17.8 Mboe/d from Q1 2014 and 171% from Q2 2013.
- Diamondback completed its second and third northern Martin County Wolfcamp B wells. The Mabee Breedlove 2302H and Mabee Breedlove 2202H wells in Martin County were drilled with an average lateral length of 7,331 feet. The average peak 30 day flowing 2-stream initial production ("IP") rate to date for these wells was 684 boe/d (83% oil) with an average peak 24 hour flowing 2-stream IP rate of 927 boe/d (83% oil). Peak rates are typically not reached until the well is placed on artificial lift.
- The UL Digger 502H, Diamondback's second horizontal Clearfork shale well in Andrews County, had a 7,203 foot lateral completed with 31 stages, achieving a peak 24 hour 2-stream IP rate of 706 boe/d (94% oil) on electric submersible pump (ESP). The peak 30 day average 2-stream rate to date is 473 boe/d (91% oil) on ESP. This well tested the lower Clearfork shale, and appears even stronger than the initial successful horizontal test, which was drilled in the upper Clearfork shale. The company believes this confirms the economic viability of the play on Diamondback's nearly 8,000 contiguous net acres in central Andrews County.
- The Crystal A Unit 1H, 2H and 3H Wolfcamp B wells were drilled in a total of 38 days on Diamondback's first three well pad in Upton County with an average lateral length of 4,852 feet. The Company estimates drilling and completion savings of $1.25 million to $1.5 million for the three well pad.
- The Jacee C Unit 3H is the fastest 10,000 foot lateral drilled by Diamondback to date: 14 days to a total measured depth of 19,353 feet in Upton County.
- During the second quarter of 2014, net income was $27.8 million, or $0.54 per diluted share. Net income for the second quarter includes a loss on commodity derivatives of $11.1 million and a loss on sale of assets of $1.4 million ($8 million net of tax), or $0.16 per diluted share. Without the impact of these items, net income for the second quarter of 2014 would have been $35.8 million, or $0.70 per diluted share.
- EBITDA (as defined below) for the second quarter of 2014 was $103.1 million.