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Yahoo
7 days ago
- Business
- Yahoo
Diamondback says it should be Permian's 'consolidator of choice' as oil outlook dims
By Arunima Kumar (Reuters) -Shale driller Diamondback Energy said on Tuesday it should remain the Permian Basin's "consolidator of choice" as shale activity slows and the company focuses on shareholder returns following its $26 billion merger with Endeavor Energy. "We should naturally be the consolidator of choice as we execute a lower-cost and better overall development strategy," a key company executive said in a post-earnings call. "Until someone else can prove they can do it better than us, we should be the consolidator of choice." Diamondback's shares fell 3.6% to $142.67 in morning trade after it posted second-quarter profit below analysts' estimates, hit by a 20% year-on-year drop in Brent crude prices amid weak global growth, OPEC+ supply increases and geopolitical tensions. The Midland, Texas-based company said it remains focused on reducing debt and share count in 2025, and may lean more into buybacks if market conditions weaken. The company said it was hard to be bullish on oil, adding that shale producers were increasingly running scenarios based on $50–$60 oil, versus $60–$80 in recent years. Diamondback dropped four rigs in the second quarter, reducing its activity to 13 rigs and lowered its 2025 capital budget around 3% at midpoint to $3.4–$3.6 billion. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Diamondback says it should be Permian's 'consolidator of choice' as oil outlook dims
By Arunima Kumar (Reuters) -Shale driller Diamondback Energy said on Tuesday it should remain the Permian Basin's "consolidator of choice" as shale activity slows and the company focuses on shareholder returns following its $26 billion merger with Endeavor Energy. "We should naturally be the consolidator of choice as we execute a lower-cost and better overall development strategy," a key company executive said in a post-earnings call. "Until someone else can prove they can do it better than us, we should be the consolidator of choice." Diamondback's shares fell 3.6% to $142.67 in morning trade after it posted second-quarter profit below analysts' estimates, hit by a 20% year-on-year drop in Brent crude prices amid weak global growth, OPEC+ supply increases and geopolitical tensions. The Midland, Texas-based company said it remains focused on reducing debt and share count in 2025, and may lean more into buybacks if market conditions weaken. The company said it was hard to be bullish on oil, adding that shale producers were increasingly running scenarios based on $50–$60 oil, versus $60–$80 in recent years. Diamondback dropped four rigs in the second quarter, reducing its activity to 13 rigs and lowered its 2025 capital budget around 3% at midpoint to $3.4–$3.6 billion. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Reuters
7 days ago
- Business
- Reuters
Diamondback says it should be Permian's 'consolidator of choice' as oil outlook dims
Aug 5 (Reuters) - Shale driller Diamondback Energy (FANG.O), opens new tab said on Tuesday it should remain the Permian Basin's "consolidator of choice" as shale activity slows and the company focuses on shareholder returns following its $26 billion merger with Endeavor Energy. "We should naturally be the consolidator of choice as we execute a lower-cost and better overall development strategy," a key company executive said in a post-earnings call. "Until someone else can prove they can do it better than us, we should be the consolidator of choice." Diamondback's shares fell 3.6% to $142.67 in morning trade after it posted second-quarter profit below analysts' estimates, hit by a 20% year-on-year drop in Brent crude prices amid weak global growth, OPEC+ supply increases and geopolitical tensions. The Midland, Texas-based company said it remains focused on reducing debt and share count in 2025, and may lean more into buybacks if market conditions weaken. The company said it was hard to be bullish on oil, adding that shale producers were increasingly running scenarios based on $50–$60 oil, versus $60–$80 in recent years. Diamondback dropped four rigs in the second quarter, reducing its activity to 13 rigs and lowered its 2025 capital budget around 3% at midpoint to $3.4–$3.6 billion.
