Diamondback Energy’s 2Q16 production
For 2Q16, Diamondback Energy (FANG) reported total production of 36.8 Mboepd (thousand barrels of oil equivalent per day), ~23% higher than its 2Q15 production of 30.0 Mboepd.
However, Diamondback Energy’s 2Q16 production was ~4% lower compared to 1Q16. For 2Q16, FANG reported ~72% crude oil (USO) in its production mix, lower than ~76% in 1Q16.
All of Diamondback Energy’s production came from the Permian Basin. Other upstream companies active in the Permian Basin are RSP Permian (RSPP), Approach Resources (AREX), Laredo Petroleum (LPI), Callon Petroleum (CPE), and Clayton Williams Energy (CWEI).
Diamondback Energy increases completion activity
In 2Q16, Diamondback Energy drilled 15 gross horizontal wells and completed 11 operated horizontal wells.
Diamondback Energy is currently operating four horizontal rigs and running two completion crews to work through its current inventory of ~20 DUCs (drilled but uncompleted wells). Production response from this increased activity is expected to begin during 2H16, with the majority of the DUCs completed by the end of 2016.
Diamondback Energy’s updated production guidance
As a result of increased drilling and completion activity, Diamondback Energy has updated its 2016 production guidance.
For 2016, Diamondback Energy now expects its full-year production to be in the range of 38–40 Mboepd, a mid-point increase of 3 Mboepd (or ~8%), compared to its previous guidance of ~36 Mboepd.