Before the announcement of its Energen Corporation (EGN) deal, Diamondback Energy (FANG) was the third-largest E&P player in terms of average daily production in the Permian Basin. It would continue to be the third-largest player in the Permian Basin, but the gap between the first two players and Diamondback Energy would decrease considerably following the completion of the merger.
The pro forma average daily production for Diamondback Energy is 215.1 Mboepd (thousand barrels of oil equivalent per day) in the second quarter, including 124.7 Mboepd for Diamondback Energy and 90.4 Mboepd for Energen.
2018 production guidance
Diamondback Energy didn’t provide any updates on its 2018 production guidance during the merger announcement. The company expects the merger to be completed in the fourth quarter, which could have a minimal impact on the company’s overall production this year.
Diamondback Energy increased its 2018 production guidance during its second-quarter earnings. It currently expects its 2018 production to lie between 115.0 Mboepd and 119.0 Mboepd. At the midpoint, this represents 45.0% growth compared to its 2017 average daily production.