Diamondback Energy Playbook

About

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback’s activities are primarily focused on the horizontal exploitation of multiple intervals within the Wolfcamp, Spraberry, Clearfork, Bone Spring and Cline formations.

Wells Drilled Last 12 Months

Air Permits

2022 Full Year Guidance

Below is Diamondback’s guidance for the full year 2022, which includes second quarter production and capital guidance. As a result of the increase in commodity prices, Diamondback is increasing its expected cash tax rate to 10% – 15% of pre-tax income from 6% – 11% previously.

 2022 Guidance2022 Guidance
 Diamondback Energy, Inc.Viper Energy Partners LP
   
Total net production – MBOE/d369 – 37630.50 – 32.75
Oil production – MBO/d218 – 22218.00 – 19.25
Q2 2022 oil production – MBO/d (total – MBOE/d)218 – 222 (369 – 376) 
   
Unit costs ($/BOE)  
Lease operating expenses, including workovers$4.00 – $4.50 
G&A  
Cash G&A$0.65 – $0.80$0.60 – $0.80
Non-cash equity-based compensation$0.40 – $0.50$0.10 – $0.20
DD&A$8.75 – $9.75$9.75 – $10.75
Interest expense (net of interest income)$1.10 – $1.30$3.25 – $3.75
Gathering and transportation$1.60 – $1.80 
   
Production and ad valorem taxes (% of revenue)(a)7% – 8%7% – 8%
Corporate tax rate (% of pre-tax income)23% 
Cash tax rate (% of pre-tax income)10% – 15%10% – 15%
   
Capital Budget ($ – million)  
Drilling, completion, capital workovers, and non-operated properties$1,560 – $1,670 
Midstream (ex. equity method investments)$80 – $100 
Infrastructure and environmental$110 – $130 
2022 Capital expenditures$1,750 – $1,900 
Q2 2022 Capital expenditures$435 – $475 
   
Gross horizontal wells drilled (net)270 – 290 (248 – 267) 
Gross horizontal wells completed (net)260 – 280 (240 – 258) 
Average lateral length (Ft.)~10,200′ 
Midland Basin well costs per lateral foot$520 – $580 
Delaware Basin well costs per lateral foot$700 – $780 
Midland Basin net lateral feet (%)~80% 
Delaware Basin net lateral feet (%)~20% 

\

Areas of Operation

Midland Basin – focus has been on the Spraberry and Wolfcamp formations. Midland Basin is located just east of the Central Basin Platform and runs north to south from Crockett County to counties Lamb and Hale. Midland Basin geology is highly variable by location and zone, as the typical well completion in the basin involves commingling production from multiple stacked pay zones. Depending on the geographic region within the Basin, operators are targeting a variety of zones with vertical and horizontal completions. 

Delaware Basin  – Delaware Basin is a hydrocarbon rich sedimentary basin that lies within the Permian Basin. The Delaware Basin covers around 6.4 million acres in far West Texas and South Eastern New Mexico. It is located in an arid southwestern portion of the United States of America

Williston Basin  –   Williston Basin is a large intracratonic sedimentary basin in eastern Montana, western North Dakota, South Dakota, and southern Saskatchewan, that is known for its rich deposits of petroleum and potash.

Diamondback News

2024: A Transformational Year for Diamondback Energy

2024: A Transformational Year for Diamondback Energy

In 2024, Diamondback Energy, Inc. solidified its position as a leading independent oil and gas producer, achieving record financial performance, ...
Diamondback Energy, Inc. Announces Closing of Double Eagle Acquisition

Diamondback Energy, Inc. Announces Closing of Double Eagle Acquisition

Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or “the Company”) today announced that it has entered into a definitive purchase agreement to ...
Diamondback Energy: Acquisition Synergies Drive Growth and Record-Low Breakeven Costs

Diamondback Energy: Acquisition Synergies Drive Growth and Record-Low Breakeven Costs

Diamondback Energy's acquisition of Endeavor has lowered its corporate breakeven to $37 per barrel, among the industry's lowest ...
Understanding First and Second Quartile Inventory in Oil and Gas: A Deep Dive into Diamondback Energy's Strategy

Understanding First and Second Quartile Inventory in Oil and Gas: A Deep Dive into Diamondback Energy’s Strategy

In the competitive world of oil and gas exploration, companies like Diamondback Energy are constantly evaluating and optimizing their drilling ...
Diamondback Energy: Drilling Rigs and Emerging Trends in 2024

Diamondback Energy: Drilling Rigs and Emerging Trends in 2024

The oil and gas industry thrives on innovation, efficiency, and strategic resource management, especially in prolific basins like the Permian ...
Diamondback Energy's Vision for Data Centers: Powering the Future with Oklo's Aurora Powerhouse Units

Diamondback Energy’s Vision for Data Centers: Powering the Future with Oklo’s Aurora Powerhouse Units

Diamondback Energy’s bold plan to integrate data centers and Oklo’s Aurora Powerhouse units into its operations is a testament to ...
Diamondback Energy’s Latest Innovations in Oil Production: Drilling Rigs, Clear Fluid Drilling, SimulFrac Completions, and the Path Ahead

Diamondback Energy’s Latest Innovations in Oil Production: Drilling Rigs, Clear Fluid Drilling, SimulFrac Completions, and the Path Ahead

Diamondback Energy, a leading name in oil and gas, recently shared exciting developments in its Q3 2024 report. Their approach ...
Diamondback: Analysis of Wells and Air Permits Data for Block 37T1N

Diamondback: Analysis of Wells and Air Permits Data for Block 37T1N

Development in Block 37T1N is progressing slowly, with only 11 of 51 wells spudded, likely due to a phased strategy ...
Diamondback Energy, Inc. Closes Merger with Endeavor Energy Resources, L.P.

Diamondback Energy, Inc. Closes Merger with Endeavor Energy Resources, L.P.

Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced that it has closed its merger with Endeavor Energy Resources, L.P. (“Endeavor”) ...