Diamondback Energy, Inc. Provides First Quarter Update and Announces Revised 2021 Guidance
FIRST QUARTER 2021 UPDATE
- Q1 2021 average production of 184.2 MBO/d (307.4 MBOE/d)
- Q1 2021 average unhedged realized prices of
$56.94 per barrel of oil,$22.94 per barrel of natural gas liquids and$3.05 per Mcf of natural gas, resulting in a total equivalent price of$42.36 per BOE - Q1 2021 average hedged realized prices of
$46.81 per barrel of oil,$22.76 per barrel of natural gas liquids and$2.64 per Mcf of natural gas, resulting in a total equivalent price of$35.75 per BOE. Diamondback realized total hedging losses of$102 million in the first quarter, including$80 million of realized gains from the early termination of interest rate swaps - Q1 2021 estimated cash CAPEX of
$280 -$300 million - Closed our previously announced acquisition of approximately 32,500 net acres in the
Northern Midland Basin and certain related oil and natural gas assets fromGuidon Operating LLC ("Guidon") onFebruary 26, 2021 for approximately$375 million in cash and the issuance of an aggregate of 10.7 million shares of our common stock - Closed our previously announced acquisition of QEP Resources, Inc. ("QEP") in an all-stock merger on
March 17, 2021 for an aggregate of approximately 12.2 million shares of our common stock
REVISED FULL YEAR 2021 GUIDANCE
Diamondback today announced revised 2021 production, capital and operating guidance. This guidance has been updated to give effect to the QEP transaction, which was completed on
Highlights Include:
- Full year 2021 oil production guidance of 218 – 222 MBO/d (360 – 370 MBOE/d), including approximately 12 MBO/d (~19 MBOE/d) of contribution from Diamondback’s
Williston Basin assets - Full year 2021 cash CAPEX guidance of
$1.60 –$1.75 billion - The Company expects to drill between 200 and 215 gross (178 – 192 net) wells and complete between 275 and 285 gross (250 – 259 net) wells with an average lateral length of approximately 10,300 feet in 2021
| 2021 Guidance | ||
| Total net production – MBOE/d(a) | 360 - 370 | |
| Oil production – MBO/d(a) | 218 - 222 | |
| Unit costs ($/BOE) | ||
| Lease operating expenses, including workovers | ||
| G&A | ||
| Cash G&A | ||
| Non-cash equity-based compensation | ||
| Gathering and transportation | ||
| Production and ad valorem taxes (% of revenue)(b) | 7% | |
| Corporate tax rate (% of pre-tax income) | 23% | |
| Gross horizontal wells drilled (net) | 200 - 215 (178 - 192) | |
| Gross horizontal wells completed (net) | 275 - 285 (250 - 259) | |
| Average lateral length (Ft.) | ~10,300' | |
| ~75% | ||
| ~25% | ||
| Capital Budget ($ - million) | ||
| Operated horizontal drilling and completion | ||
| Non-operated capital and capital workovers | ||
| Midstream (ex. long-haul pipeline investments) | ||
| Infrastructure and Environmental | ||
| 2021 Capital Spend | ||
| (a) | Includes approximately 12 MBO/d (~19 MBOE/d) related to the contribution from Diamondback’s |
| (b) | Includes production taxes of 4.6% for crude oil and 7.5% for natural gas and NGLs and ad valorem taxes. |
“Diamondback executed well in the first quarter 2021 and quickly overcame the adversity presented by Winter Storm Uri in February. We closed our two previously announced Guidon and QEP acquisitions in the quarter, and subsequently executed a successful tender offer and refinancing of QEP’s senior notes. This refinancing adds
DERIVATIVES
As of
As of
| Crude Oil (Bbls/day, $/Bbl) | ||||||||||||||||||||
| Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | ||||||||||||||
| Swaps - WTI ( |
43,341 | 38,348 | 30,674 | 1,000 | 1,000 | — | — | |||||||||||||
| $ | 44.60 | $ | 42.82 | $ | 42.36 | $ | 45.00 | $ | 45.00 | — | — | |||||||||
| Swaps - WTI (Magellan East Houston) |
5,000 | 5,000 | 5,000 | — | — | — | — | |||||||||||||
| $ | 37.78 | $ | 37.78 | $ | 37.78 | — | — | — | — | |||||||||||
| Swaps - Crude Brent Oil(a) |
5,000 | 5,000 | 5,000 | — | — | — | — | |||||||||||||
| $ | 41.62 | $ | 41.62 | $ | 41.62 | — | — | — | — | |||||||||||
| Costless Collars - WTI ( |
20,670 | 17,685 | 26,663 | 12,000 | 6,000 | — | — | |||||||||||||
| Long Put Price ($/Bbl) | $ | 35.78 | $ | 35.27 | $ | 38.69 | $ | 45.00 | $ | 45.00 | — | — | ||||||||
| Ceiling Price ($/Bbl) | $ | 47.08 | $ | 46.50 | $ | 53.80 | $ | 68.00 | $ | 68.75 | — | — | ||||||||
| Costless Collars - WTI (Magellan East Houston) | — | 5,000 | 5,000 | 4,000 | 2,000 | — | — | |||||||||||||
| Long Put Price ($/Bbl) | — | $ | 45.00 | $ | 45.00 | $ | 45.00 | $ | 45.00 | — | — | |||||||||
| Ceiling Price ($/Bbl) | — | $ | 57.90 | $ | 78.75 | $ | 67.48 | $ | 67.45 | — | — | |||||||||
| Costless Collars - Crude Brent Oil | 82,000 | 62,000 | 64,000 | 38,000 | 13,000 | — | — | |||||||||||||
| Long Put Price ($/Bbl) | $ | 39.40 | $ | 39.61 | $ | 39.78 | $ | 45.00 | $ | 45.00 | — | — | ||||||||
| Ceiling Price ($/Bbl) | $ | 48.84 | $ | 48.42 | $ | 48.90 | $ | 68.07 | $ | 74.31 | — | — | ||||||||
| — | — | — | 5,000 | 5,000 | 5,000 | 5,000 | ||||||||||||||
| — | — | — | $ | 35.00 | $ | 35.00 | $ | 35.00 | $ | 35.00 | ||||||||||
| Basis Swaps - WTI ( |
39,000 | 34,000 | 34,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||
| $ | 0.83 | $ | 0.91 | $ | 0.91 | $ | 0.84 | $ | 0.84 | $ | 0.84 | $ | 0.84 | |||||||
| Roll Swaps - WTI |
46,000 | 34,000 | 34,000 | — | — | — | — | |||||||||||||
| $ | 0.16 | $ | 0.24 | $ | 0.24 | — | — | — | — | |||||||||||
| (a) | Includes 5,000 BO/d of swaps in the first half of 2021 whereby the counterparty has the right to extend the hedge into the second half of 2021 at an average price of |
| Natural Gas (Mmbtu/day, $/Mmbtu) | ||||||||||||||||||||
| Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | ||||||||||||||
| Natural Gas Swaps - |
245,000 | 245,000 | 245,000 | — | — | — | — | |||||||||||||
| $ | 2.65 | $ | 2.65 | $ | 2.65 | — | — | — | — | |||||||||||
| Natural Gas Swaps - |
50,000 | 50,000 | 50,000 | — | — | — | — | |||||||||||||
| $ | 1.92 | $ | 1.92 | $ | 1.92 | — | — | — | — | |||||||||||
| Natural Gas Basis Swaps - |
250,000 | 250,000 | 250,000 | 190,000 | 190,000 | 190,000 | 190,000 | |||||||||||||
| $ | -0.66 | $ | -0.66 | $ | -0.66 | $ | -0.36 | $ | -0.36 | $ | -0.36 | $ | -0.36 | |||||||
| Natural Gas Liquids (Bbls/day, $/Bbl) | ||||||||||||||||
| Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | ||||||||||
| Natural Gas Liquids Swaps - |
2,000 | 2,000 | 2,000 | — | — | — | — | |||||||||
| $ | 29.40 | $ | 29.40 | $ | 29.40 | — | — | — | — | |||||||
About
Diamondback is an independent oil and natural gas company headquartered in
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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, including the current adverse industry and macroeconomic conditions, commodity price volatility, production levels, the impact of the recent presidential and congressional elections on energy and environmental policies and regulations, any other potential regulatory actions (including those that may impose production limits in the
Investor Contact:
+1 432.221.7467
alawlis@diamondbackenergy.com
Source: Diamondback Energy, Inc.