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Diamondback Energy’s Pro Forma Permian Production versus Peers

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Permian production

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.

Pioneer Natural Resources Company (PXD) and Concho Resources (CXO) are the leading producers in the Permian Basin with average daily production of 280.0 Mboepd and 260.0 Mboepd, respectively.

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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.

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