Diamondback increases annual production forecast as oil prices rise
U.S. shale oil producer 'Diamondback Energy' raised its annual production forecast on Monday after exceeding Wall Street expectations with a 'first-quarter profit due to a rise in oil prices.
Oil prices have risen by more than 87% in the past year, after the U.S. and Israeli war against Iran has disrupted supply chain and damaged energy infrastructure.
Diamondback, which is based in the United States, benefits from higher commodities prices. The realized price per barrel of oil was $72.53 compared to $70.06 one year ago.
In a press release, CEO Kaes van't Hof stated that "because of our positioning, preparation, and this price signal we are bringing incremental barrels to the market immediately." He added that the company is well-positioned to respond the current macroenvironment.
The company expects to produce over 972,000 barrels per day of?oil-equivalent in 2026. This is up from its previous projections of 926,000 - 962,000 boepd.
It also increased its capital expenditure budget from $3.75 to $3.9 billion in 2026.
Diamondback produced 979.356 boepd during the first quarter of this year, compared to?850.656 boepd one year ago.
According to LSEG data, the Midland, Texas-based company reported an adjusted profit per share of $4.23 for the three-month period ending March 31. This compares with analyst's?estimates? of $3.30.
After the bell, shares of the company fell 1%. (Reporting and editing by Tasim Zaid in Bengaluru, Vallari Srivastava)
(source: Reuters)
