- Diamondback's average daily production during Q3 2016 was 44,923 boe/d (73% oil), up 22% from Q2 2016 average daily production of 36,841 boe/d. Average realized prices during Q3 2016 were $42.11 per barrel of oil, $2.37 per Mcf of natural gas and $13.76 per barrel of natural gas liquids.
- Diamondback's subsidiary, Viper Energy Partners LP ("Viper"), had Q3 2016 production of 6,255 boe/d (75% oil), up 16% from Q2 2016 average daily production of 5,380 boe/d. Viper's Q3 2016 average realized prices were $41.97 per barrel of oil, $2.39 per Mcf of natural gas and $12.56 per barrel of natural gas liquids.
- In September 2016, Diamondback completed its previously announced acquisition in the Southern Delaware Basin.
- Diamondback is increasing its 2016 production guidance to a range of 41.0 to 42.0 Mboe/d, up 6% from the midpoint of the July guidance range of 38.0 to 40.0 Mboe/d, as a result of continued strong well performance.
- Diamondback now intends to complete 65 to 70 gross horizontal wells this year.
- Diamondback's 2016 capital expenditure guidance remains unchanged at $350 to $425 million.
- Diamondback plans to add a fifth rig in the coming weeks.
- The Company is decreasing its full year 2016 lease operating expense ("LOE") guidance to $5.50 to $6.00 per boe from a prior range of $5.50 to $6.25 per boe as a result of continued cost savings and efficiency improvements.
- Diamondback's preliminary full year 2017 production guidance is 52 to 58 Mboe/d, the midpoint of which is up over 30% from the midpoint of updated 2016 production guidance
- Diamondback plans to complete 90 to 120 gross wells in 2017 with an average lateral length of approximately 8,500 feet.
Well costs are expected to range from $5.0 to $5.5 million for a 7,500 foot lateral horizontal well in the Midland Basin and $6.0 to $7.0 million in the Delaware Basin. Leading-edge Midland Basin well costs remain below $6.0 million for a 10,000 foot lateral well and below $5.0 million for a 7,500 foot lateral well.UPDATED FULL YEAR 2016 GUIDANCE Below is Diamondback's updated full year 2016 guidance, which has been updated to reflect increased production. The Company is reiterating its 2016 capital expenditure guidance for drilling, completion and infrastructure of $350 to $425 million.
|Diamondback Energy, Inc.||Viper Energy Partners LP|
|Total Net Production - Mboe/d||41.0 - 42.0||6.0 - 6.5|
|Unit costs ($/boe)|
|Lease operating expenses, including workovers||$5.50 - $6.00||n/a|
|Gathering & Transportation||$0.50 - $1.00||$0.25-$0.50|
|Cash G&A||$1.00 - $2.00||$0.50-$1.50|
|Non-cash equity-based compensation||$1.50 - $2.50||$2.00-$3.00|
|DD&A||$11.00 - $13.00||$12.00-$14.00|
|Interest expense (net of interest income)||$2.50 - $3.50|
|Production and ad valorem taxes (% of revenue) (a)||8.0||%||8.0||%|
|($ - million)|
|Gross Midland Basin horizontal well costs (b)||$5.0 - $5.5||n/a|
|Horizontal wells completed (net)||65 - 70 (55 - 60)|
|Capital Budget ($ - million)|
|Horizontal drilling and completion||$305 - $360||n/a|
|Infrastructure||$30 - $40||n/a|
|Non-op and other||$15 - $25||n/a|
|2016 Capital Spend||$350 - $425||n/a|
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 Springs 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 the Permian Basin. Forward Looking Statements This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Diamondback assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements, including specifically the statements regarding any acquisitions announced above. The forward-looking statements are based on management's current beliefs, based on currently available information, as to the outcome and timing of future events. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Information concerning these risks and other factors can be found in Diamondback's filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement.
Investor Contact:Adam Lawlis+1 firstname.lastname@example.org