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Diamondback's drilling economics at the Spanish Trail are among the strongest in the U.S. shale oil industry.
The company is making progress delineating its acreage in other areas, testing multiple horizons.
While the remaining inventory is unlikely to match the Spanish Trail in terms of returns, it should yield a multi-year, solidly economic development backlog once the commodity environment improves.
The stock's price appears to recognize the high quality of the company's assets, its strong balance sheet and enhanced economics due to mineral rights ownership via Viper.
While the current trading multiple is very high, the rich premium may be "sticky": investors may continue to price a cyclical recovery in oil into the stock, considering the company is well positioned to weather the downcycle and accelerate growth once the cycle turns.
FANG is seen as an underlevered pure-play in a premier oil shale basin with no legacy assets to weigh on operating expenses, which the firm says maintains the lowest full-cycle costs in its coverage group. - Timothy Smith OXY, FANG, GPOR, RICE attractive amid energy uncertainty, analyst says
http://www.seekingalpha.com/news/2744806
"Occidental Petroleum (OXY +3.7%), Diamondback Energy (FANG +1.2%), Gulfport Energy (GPOR +3.3%) and Rice Energy (RICE +1.3%) are recommended by Sterne Agee CRT analyst Tim Rezvan as "high conviction long ideas" in the energy sector for investors wary of the group amid structural issues facing global oil markets that appear unlikely to abate this year." - Timothy Smith
OXY, FANG, GPOR, RICE attractive amid energy uncertainty, analyst says
http://www.seekingalpha.com/news/2744806
Iberia Capital has downgraded Diamondback Energy (FANG -2%) to Sector Perform.
The Permian Basin E&P firm raised $176M last week through a stock offering. On Friday, KeyBanc launched coverage at Overweight.
Interesting. Good issuer for rebound but not sure it is cheapest we will see.
Diamondback (+3.22% AH) prices the offering at $68.74
not the worst discount to the $72.48 at the time of the offering Aug. 12, by any means.
Delivery on or about Aug. 18 2015
The kicker as always:
The underwriter proposes to offer the shares of common stock from time to time for sale in one or more transactions on the NASDAQ Global Select Market, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.
( I still have 40 of my orig. shares, I suk)
http://ih.advfn.com/p.php?pid=nmona&article=68182767&symbol=FANG
At least some E&P companies are still able to sell shares despite the oil price swoon, as Diamondback Energy (FANG -1.3%) raises $176M through a stock offering - its third this year.
Diamondback Energy (NASDAQ:FANG) -2% AH after announcing a public offering of 2M common shares, with an underwriters option to purchase up to an additional 300K shares.
FANG says it plans to use the proceeds to repay part of the outstanding borrowings under its revolving credit facility.
Diamondback Energy (FANG +0.6%) is maintained with a Buy rating at Roth Capital, as FANG's oil and gas reserves and production, decreasing well costs, decreasing lease operating expenses and low debt continue to generate an attractive upside compared to recent trading levels.
Diamondback Energy (FANG +0.2%) is initiated with an Overweight rating and $98 price target at Stephens, which believes FANG is well positioned to become a top-tier Permian producer.
Diamondback Energy (NASDAQ:FANG) announces a public offering of 3M common shares, with an underwriters option to purchase up to an additional 450K shares.
FANG says it plans to use the proceeds to fund part of the purchase price for its pending acquisitions of additional acreage in the Midland Basin.
$FANG is in great shape, in our view, with both a strong balance sheet and a strong hedge position. With debt/capital (proforma 1/30/2015 for a recent equity offering) of 25% and debt/EBITDA projected at 1.5x this strong balance sheet is further bolstered with 43% of projected 2015 oil production hedged at an average of $88.03/bbl.
Oil's mixed message
1/16/15, 8:43 AM
CNBC's Jackie DeAngelis reports oil is rebounding after yesterday's volatile session, and non-OPEC producers will cut back on production, however overall creation will increase.
FANG: Acquisition News, Increased Outlook, Operations Update
Diamondback Energy to Acquire Additional Acreage in Midland Basin -- Increases 2014 Production Outlook and Provides Operations Update)
Diamondback Energy to Acquire Additional Acreage in Midland Basin -- Increases 2014 Production Outlook and Provides Operations Update
MIDLAND, Texas, July 21, 2014 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback" or the "Company") today announced the Company has entered into a definitive purchase agreement with unrelated third party sellers to acquire additional leasehold interests in the Midland Basin for an aggregate purchase price of approximately $538 million, subject to certain adjustments. Upon completion, the acquisition will provide Diamondback with primarily operated leasehold interests, the majority of which are located in Midland and western Glasscock Counties.
Acquisition Highlights:
-- 16,773 gross (13,136 net) acres, 88% of which are operated
-- Net production of approximately 2,173 BOE/d in May 2014 from 131 gross
(94 net) producing wells.
-- Net proved reserves, based on Diamondback's internal estimates as of June
2014, were approximately 5.2 MMBOE (on a 2-stream basis).
Diamondback expects horizontal development on this acreage to represent years of growth potential:
-- 396 gross identified potential horizontal drilling locations
-- 256 net identified potential horizontal drilling locations
The Company believes the acreage is prospective for horizontal drilling in the Wolfcamp B, Lower Spraberry, Clearfork, Middle Spraberry, Wolfcamp A and Wolfcamp D (aka Cline) formations.
Upon closing, the acquisition is expected to add 13,136 net acres to Diamondback's total position in the Midland Basin, increasing it to more than 85,000 net acres.
Acreage Breakdown by County
Gross Net
-------- -------
Midland 6,018 4,773
Glasscock 8,265 6,814
Reagan 2,170 1,402
Upton 320 147
------------- -------- -------
Total 16,773 13,136
The acquisition is scheduled to close in early September 2014, however the transaction remains subject to completion of due diligence and satisfaction of other closing conditions, and there can be no assurance that Diamondback will acquire all or any portion of the acreage.
"I am very pleased about this acquisition because it offers a tremendous opportunity for the Company to develop highly prospective acreage. Much of the value in these assets resides in the undeveloped acreage and, as a peer-leading developer of horizontal resources, we believe we can more cost-effectively convert this resource potential into cash flow," said Travis Stice, Diamondback's Chief Executive Officer. "We believe this acreage to be some of the best in Diamondback's inventory, some of which offsets our Gridiron well, which appears to be among the best horizontal wells on a per lateral foot basis in the Midland Basin. Additionally, we are pleased that our test of the Lower Spraberry in Upton County as described below appears to confirm a new development horizon. This marks another first for Diamondback, as we believe this Lower Spraberry horizontal well is the first of its kind in Upton County."
OPERATIONS UPDATE:
-- The Neal F Unit 8 #6LS well in Upton County, with a 6,811 foot lateral,
achieved a 24-hour initial production ("IP") 2-stream rate of 1,021 BOE/d
(86% oil) on electric submersible pump ("ESP"), with a peak 30 day
average 2-stream rate of 745 BOE/d (83% oil) on ESP.
-- The Gridiron N 1H Wolfcamp B well in Midland County, with an 8,785 foot
lateral, achieved a flowing peak 24-hour IP 2-stream rate of 2,757 BOE/d
(91% oil), as previously reported, with a peak 30 day flowing 2-stream
rate of 2,317 BOE/d (87% oil). This well has produced more than 190 MBOE
(83% oil) in its first 100 days on production.
-- The ST NW 2501LS, Diamondback's first operated Lower Spraberry horizontal
well in Midland County, with a 4,418 foot lateral, achieved a 24-hour IP
2-stream rate of 1,049 BOE/d (92% oil), as previously reported, on ESP,
with a peak 30 day average 2-stream rate of 859 BOE/d (83% oil).
-- The Crystal A Unit 1H, 2H and 3H Wolfcamp B wells were drilled on
Diamondback's first three well pad in 38 days. The Company estimates
drilling savings of $500,000 to $750,000, and expects incremental cost
savings from completion operations that are currently underway, as a
result of this multi-well pad.
-- The Company has drilled its first horizontal Wolfcamp B well on its
southwest Martin County acreage, which was acquired in February 2014. The
Kimberly 804H, with a 7,300 foot lateral, was drilled in less than 16
days and is expected to be completed in the second half of 2014.
-- Diamondback is increasing its 2014 production guidance to 17 to 19 MBOE/d
from 16 to 18 MBOE/d. The Company will not realize volumes attributable
to the pending acquisition until closing.
HORIZONTAL DRILLING UPDATE:
-- The Company is currently running five horizontal rigs and one vertical
rig and plans to add a sixth horizontal rig on its existing acreage and a
seventh horizontal on the acquired acreage in the first quarter of 2015
and then an eighth rig on the acquired properties by the second half of
2015. Additionally, the Company is contemplating adding a ninth
horizontal rig in 2016.
-- 15 wells were completed in the second quarter of 2014, of which 12 wells
were drilled in the Wolfcamp B, two wells were drilled in the Lower
Spraberry, and one well was drilled in the Clearfork. During the first
half of 2014, 23 Wolfcamp B wells have been completed. 21 of which have
sufficient production history for an average peak 24 hour rate of 1,047
BOE/d (90% oil) from an average lateral length of 6,911 feet.
-- 19 of these wells have sufficient production history for an average peak
30 day rate of 754 BOE/d (87% oil) from an average lateral length of
6,981 feet.
-- Diamondback now expects to complete 18 to 22 wells per quarter going
forward in 2014 as the Company added a second dedicated frac crew on July
1st.
PRODUCTION UPDATE:
Diamondback's average daily production for the second quarter of 2014 increased 32% on a sequential basis to 17,836 BOE/d as compared to 13,552 BOE/d in the first quarter of 2014. Diamondback's average daily production for the second quarter of 2014 increased 171% as compared to the second quarter of 2013.
Diamondback Energy, Inc.
Selected Operating Data
(unaudited, in thousands)
Three Months Ended June 30,
-----------------------------
2014 2013
----------------------------------------- --------------- ------------
Production Data:
Oil (MBbl) 1,211 447
Natural gas (MMcf) 990 409
Natural gas liquids (MBbl) 247 84
Oil Equivalents(1)(2) (MBOE) 1,623 600
Average daily production(2) (BOE/d) 17,836 6,590
% Oil 75% 75%
(1) Bbl equivalents are calculated using a conversion
rate of six Mcf per one Bbl.
(2) The volumes presented are based on actual results
and are not calculated using the rounded numbers in
the table above.
About Diamondback Energy, Inc.
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 Clearfork, Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which we refer to collectively as the Wolfberry play.
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws. 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, including those relating to the pending acquisition, are forward-looking statements. The forward-looking statements are based on management's current belief, based on currently available information, as to the outcome and timing of future events. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the Company's filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments thereto, that could cause actual results to differ materially from those projected. These filings are available for free at the SEC's website (http://www.sec.gov). Any forward-looking statement made in this new release speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
(END) Dow Jones Newswires
July 21, 2014 06:29 ET (10:29 GMT)- - 06 29 AM EDT 07-21-14
Source: DJ Broad Tape
Diamondback Energy Resumed at Outperform by Credit Suisse > FANG
(END) Dow Jones Newswires
July 17, 2014 08:39 ET (12:39 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.- - 08 39 AM EDT 07-17-14
Source: DJ Broad Tape
Diamondback Holders Cash Out After Spin-Off
17:00 EDT - Diamondback Energy (FANG) investors Wexford Capital and Gulfport Energy (GPOR) are selling 2M shares in the Texas oil driller, on the heels
of Diamondback's well-received spinoff of its mineral rights unit Viper Energy (VNOM) last week. FANG bought some mineral rights--claims to royalties on
sales of energy pumped from beneath a swath of Texas land--for $440M in September and spun them out via the IPO of VNOM, which was valued at $1.98B
in its debut. Not a bad trade. Thanks to FANG's dealmaking and surging production from its own oil wells, its shares are up 73% YTD.
(matthew.jarzemsky@wsj.com)
(END) Dow Jones Newswires
June 23, 2014 17:00 ET (21:00 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.- - 05 00 PM EDT 06-23-14
Source: DJ Broad Tape
NASD has VNOM now listed as IPO opening next Wednesday, 6/18/14.
Viper IPO symbol = VNOM (not VIPR lol)
Analysts optimistic about Diamondback's upcoming Viper IPO
Jun 6 2014, 10:46 ET | About: Diamondback Energy (FANG)
Diamondback Energy's (FANG +1.3%) price target is raised to $90 at
Mizuho and $86 at Topeka Capital, as both firms believe the success
of the recent PrairieSky Royalty Trust IPO implies a considerably
higher valuation for the upcoming IPO of FANG's Viper Energy
Partners than had been expected. Mizuho sees the Viper IPO as an
immediate catalyst, and expects the deal will price in the coming
weeks.
FANG FANG is on a tear. Ascending base confirmed after breakout at $76.60. Get in for the ride!!!
Viper Energy Partners LP: Preliminary Form S-1
Diamondback Energy - Q1 earnings fall short, Brean downgrades • 2:26 PM
Diamondback Energy reporting below consensus Q1 earnings - Brean Capital downgrades shares to Hold from Buy.
FANG reported strong well results in the Permian Basin, including its first operated test of the emerging Lower Spraberry shale formation and its best well to date in the Wolfcamp shale with a 30-day rate of 1,991 boe/day.
FANG also said it filed to raise up to $100M via an IPO of its mineral interests.
However, Brean Capital says in its downgrade that $76 is fair value for the shares; should its long-run assumptions for $85/bbl crude oil, $4.50/Mcf natural gas and $34/bbl of natural gas liquids prove conservative and prices instead average $100/$5/$42,
FANG shares could be worth up to $113, but price declines to $80/$3.50/$32 could result in shares at $66 (Briefing.com).
The information in this preliminary prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission becomes effective. This preliminary prospectus is not an offer to sell these securities and we are not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.
https://www.sec.gov/Archives/edgar/data/1602065/000119312514187469/d673207ds1.htm
FANG Q1 EPS 53c misses 3c (56c) Est
Revs $98 million versus consensus estimate $98.87 million
Diamondback's Fang Might Be Long in Tooth
-- Market Talk
9:20 EDT - There's been uniformity on Diamondback Energy (FANG), with every sell-side investment bank having a buy-equivalent rating on the Wolfberry play oil-and-gas firm. That as its stock has quadrupled since October 2012's IPO, including a 1/3 gain this year. But SunTrust decides it will be the first to leave the bull camp as it downgrades FANG to neutral while dropping its price target $5 to $75. "Following significant outperformance, we wonder where the incremental buyer for the stock will come from. Additionally, we see slight downside to 4Q estimates, with some longer-term productivity concerns." But the investment bank admits if FANG "is able to monetize part of its royalty interest for a big number, there could be upside to our valuation." It rose 3.7% Monday to $70.12. (kevin.kingsbury@wsj.com; @kevinkingsbury)
(END) Dow Jones Newswires
April 15, 2014 09:20 ET (13:20 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.- - 09 20 AM EDT 04-15-14
Source: DJ Broad Tape
Diamondback Energy's target raised to $80 at Mizuho
• 9:54 AM
Diamondback +5% as higher production guidance prompts analyst praise
Diamondback Energy's (FANG ) target price is raised to a Street-high
$80 from $74 at Mizuho, which cites FANG's better than expected
guidance in its operations update yesterday.
The firm says FANG's well results continue to impress, particularly
the Nail Ranch 2601H Wolfcamp B well in Martin County, which
resembles some of FANG's best wells to date given its short lateral;
FANG also continues to add acreage, picking up another 1,500 net
acres in Martin County and 126 net mineral acres at the Spanish
Trail lease (Briefing.com).
Brean Capital also raises its target price, to $73 from $66.
FANG: Q1 30% production increase Q/Q, raises guidance
Apr 10 2014, 16:55 ET
Diamondback Energy raises 2014 production guidance
Diamondback Energy (FANG) reports Q1 production increased 30% Q/Q to
13.6M boe/day, with a quarter-end exit rate in excess of 16M
boe/day.FANG raises its FY 2014 production guidance to 16M-18M
boe/day from 15M-16M boe/day, reflecting 132% production growth Y/Y
at the midpoint of the estimated range.Says early indications from
its Mabee Breedlove 22-1H in Martin County appear better than
industry offset wells by more than 25%.
Credit Suisse’s Top Energy Stock Picks for 2014
By Lee Jackson December 20, 2013 8:40 am EST
While 2013 was a solid year for the energy sector, it could not keep pace with the overall blistering rise in the S&P. The energy team at Credit Suisse is positive on the year ahead, but they see some clear changes in the overall picture. The biggest one will be the overall volume of oil available. They are think that investing in energy may be volatile in 2014, but they see the top stocks in the sector going higher from current levels.
The Credit Suisse analysts have focused in on four important themes that may affect the energy sector in 2014. Their top stocks to buy reflect a close eye on these themes and the changing landscape in the world.
In 2014, oil markets may need to adjust to the wildcard of rising volumes out of Libya, Iran and Iraq. Any improvement in Middle East relations could up the ante in terms of supply.
The U.S. service market is oversupplied at the low end, though high-tech providers can generate good terms. The top players should be able to remain on top.
The majors are still one year away from a demonstrable payoff from their $250 billion investment programs.
Big winners from 2013 are fully valued and investors may need to shift to other energy names. The analysts specifically mention the master limited partnerships and the refining stocks.
Here are the top energy stocks to buy from Credit Suisse for 2014.
Chevron Corp. (NYSE: CVX) is the only major domestic integrated on the Credit Suisse list. The company has benefited greatly in 2013 from record oil and natural gas production in the United States. The company may be looking to expand domestic production by acquiring one of the top exploration and production stocks. Investors are paid a solid 3.4% dividend. The Credit Suisse price target is $140. The Thomson/First Call estimate is $135. Chevron closed Thursday at $123.22.
Phillips 66 (NYSE: PSX) is a refiner that the Credit Suisse team is still very positive on. The Department of Defense declared this week that it granted a $292 million contract to Phillips 66 for aviation turbine fuel or jet fuel. Under this contract, Phillips 66 is to deliver jet fuel for 14 months, until April 30, 2015. According to the Pentagon, Phillips 66 knocked down 25 other firms for this job. Shareholders are paid a 2.2% dividend. The Credit Suisse price target for the stock is $80, and the consensus is at $79.50. Phillips 66 closed Thursday at $72.92.
Tesoro Corp. (NYSE: TSO) is the only other refining name to make the list. The company operates in two segments, Refining and Retail. The Refining segment refines crude oil and other feed stocks into transportation fuels, such as gasoline, gasoline blend stocks, jet fuel and diesel fuel, as well as other products, including heavy fuel oils, liquefied petroleum gas, petroleum coke and asphalt. The Retail segment sells gasoline, diesel fuel and convenience store items through company-operated retail stations and third-party branded dealers and distributors in the western United States. It operated approximately 2,200 retail stations, including approximately 595 company-operated stations under the Tesoro, Shell, ARCO and USA Gasoline brands. Investors receive a 1.8% dividend. Credit Suisse has a $74 target, and the consensus is posted lower at $66. Tesoro closed Thursday at $56.39.
Exploration and production names are in the subsector that has the heaviest weighting on the Credit Suisse top Picks for 2014. We sorted this list for the stocks with the largest upside potential to their price target. Plus, all three have been considered takeover candidates at one point or another in 2013.
PDC Energy Inc. (NASDAQ: PDCE) caught an upgrade to Buy at Stifel recently and is a top name at Credit Suisse. Looking forward to 2014, there will be a lot more activity in the southern Utica shale, with both PDC Energy and Antero Resources leading the way. If results revert back to the mean, PDC could see shares recover rather quickly from their recent sell-off. PDC has also been a rumored takeover candidate. Credit Suisse has an $83 price target, and the consensus is much lower at $72. PDC closed Thursday at $52.05. A move to the target would be a 58% gain for shareholders.
Diamondback Energy Inc. (NASDAQ: FANG) is a top Permian basin name to buy at Credit Suisse for 2014. Diamondback has about 85% of its reserves in liquids, with 65% oil and 20% natural gas liquids. This has caused the average well to produce between 80% and 90% liquids, which results in high margins. This is another top name that could be a potential takeover candidate, given its high-quality assets in West Texas. The Credit Suisse price target is $69, while the consensus figure stands at $65. Diamondback closed Thursday at $49.80. A trade to the target represents almost a 45% move.
EOG Resources Inc. (NYSE: EOG) was named a takeover candidate and called the best oil stock in America last week by none other than CNBC’s Jim Cramer. EOG Resources is fueling record oil and natural gas production that is revolutionizing the U.S. energy position. Its role in the three biggest tight oil plays makes it a huge player in the exploration and production field. EOG Resources would be a huge acquisition for even the biggest of big oil companies. That said, there is a lot to like about EOG, as it is the top producer in the Eagle Ford Shale, and it has solid positions in both the Bakken and Permian Basin. Investors are paid a tiny 0.5% dividend. The Credit Suisse price target for the stock is posted at $210, and the consensus figure is $195. EOG closed Thursday at $165.33.
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Halliburton Co. (NYSE: HAL) is the only domestic oil field services company to make the Credit Suisse list for 2014. The company is making a strong comeback in the North American drilling market, from where it derives more than half of its revenue. It has launched a number of programs to enhance the well drilling process for oil field operators. Its competitive cost structure keeps it in the game for almost any project. Investors are paid a 1.2% dividend. Credit Suisse has a $70 price target on the stock, and the consensus number is at $63. Halliburton closed Thursday at $49.42.
Rowan Companies PLC (NYSE: RDC) is the only offshore driller to make the Credit Suisse list. Rowan spent the past two years clawing back the destructive effects of the Great Recession and the Macondo disaster, first by shifting mix away from the ravaged Gulf of Mexico and then by growing into the popular Southeast Asia market. Now, with new drillships in place, it should roughly double its EBITDA in two years. Credit Suisse has a $45 price objective for the stock. The consensus is at $42. Rowan closed Thursday at $32.94.
With the threat of more supply hanging over the market, Wall Street firms have narrowed their list of stocks to those that can truly have top upside gains in 2014. The one wild card for 2014 is domestic and international economic growth. Should growth exceed current expectations, energy demand will increase as well. That could prove to be a huge positive for investors.
By Lee Jackson
This is a great company - fabulous results!!
FANG - (Diamondback Energy Q3 net income increases)
Nov 13, 2013 (MarketLine via COMTEX) -- Diamondback Energy, Inc., an oil and
natural gas acquisition, development, exploration and exploitation company, has
reported that net income for the third quarter ended September 30, 2013 was
$14.60 million, compared to $452,000 for the same quarter ended September 30,
2012.
Oil and natural gas revenues for the third quarter ended September 30, 2013 were
$57.79 million, compared to $16.81 million for the same quarter ended September
30, 2012.
Net income for the nine months ended September 30, 2013 was $34.46 million,
compared to $15.55 million for the same period ended September 30, 2012.
Oil and natural gas revenues for the nine months ended September 30, 2013 were
$132.09 million, compared to $49.19 million for the same period ended September
30, 2012.
Travis Stice, CEO of Diamondback, stated, "I'm proud of the quarterly results as
we again demonstrated our ability to reduce total well costs, reduce drilling
cycle time, reduce our operating expenses, and continue our production ramp. Our
cash margins during the third quarter were almost $70/boe and I believe we are
delivering results and returns to our stockholders that are among the best in
the Midland Basin.
"We are extremely excited about the early results from a test in the Middle
Spraberry zone in Midland County as a non-operated partner furthering our belief
that multiple shale benches are viable development horizons. These results have
meaningfully increased our identified potential Spraberry horizontal drilling
locations from 181 gross locations to 360 gross locations.
"Finally, our first 9,000 foot lateral was drilled and completed in Midland
County for $8.5 million and has the potential to be the best horizontal well to
date for Diamondback once placed on artificial lift. We have now drilled over
200,000 feet of horizontal laterals and remain encouraged by the success of our
development program. Our average production from these wells is performing at or
above the type curve we predicted."
URL: http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall
not be liable for errors or delays in the content, or for any actions
taken in reliance thereon
Copyright (C) 2013 Datamonitor. All rights reserved
-0-
Source: Comtex Wall Street News
(Diamondback Energy, Inc. Schedules 2013 Third Quarter Conference Call for November 5, 2013)
Diamondback Energy,
Inc. (Nasdaq:FANG) today announced that it plans to release its third quarter
financial results on Monday, November 4, 2013 after the market closes.
In connection with the earnings release, Diamondback Energy, Inc. will host a
conference call and webcast for investors and analysts to discuss its results
for the quarter on Tuesday, November 5, 2013 at 8:00 a.m. CT.
Participants should call (877) 440-7573 (United States/Canada) or (253) 237-1144
(International) and utilize the confirmation code 95215225. A telephonic replay
will be available for anyone unable to participate in the live call. To access
the replay, call (855) 859-2056 (United States/Canada) or (404) 537-3406
(International) and enter confirmation code 95215225. The recording will be
available from 11:00 a.m. CT on Tuesday, November 5, 2013 through Monday,
November 11, 2013 at 10:59 p.m. CT. A live broadcast of the earnings conference
call will also be available via the internet at www.diamondbackenergy.com under
the "Investor Relations" section of the site. The webcast will be archived on
the site.
About Diamondback Energy, Inc.
Diamondback Energy is an independent oil and natural gas company focused on the
acquisition, development, exploration and exploitation of unconventional,
onshore oil and natural gas reserves in the Permian Basin in West Texas.
Diamondback Energy's activities are primarily focused on the Clearfork,
Spraberry, Wolfcamp, Cline, Strawn and Atoka formations, which we refer to
collectively as the Wolfberry play.
CONTACT: Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
http://media.globenewswire.com/cache/22886/small/19678.jpg
http://www.globenewswire.com/newsroom/ti?nf=MTMjMTAwNTUzNzAjMjI4ODY=
(C) Copyright 2013 GlobeNewswire, Inc. All rights reserved.
-0-
KEYWORD: MIDLAND, Texas
INDUSTRY KEYWORD: Energy Industries
SUBJECT CODE: Calendar of Events
ENERGY
CONFERENCE CALL
WEBCAST
Source: Comtex Wall Street News
Permian Basin boom threatened by falling crude prices
The Permian Basin is all the rage on Wall Street, but oil prices need to stay high enough to support the current rate of exploratory drilling - and prices for West Texas crude have dropped below $100/bbl for a third straight weekly decline.
The Permian remains the largest U.S. oil producer, with output averaging ~1.3M bbl/day and rising, but it's also the most expensive U.S. shale formation in which to drill - meaning the boom could become a bust if crude moves near $70/bbl, as some analysts predict.
If oil drops to $80, wells in some parts of the Permian will become money-losers; wells drilled in the Cline Shale and Northern Mississippian Lime layers of the Permian need $96 oil to break even.
Among top Permian producers: PXD, FANG, CXO, APA, ATHL, OXY, XOM, EOG, XEC, APC, CVX, COP, CWEI.
Oil ETFs: OIL, USO, DBO, OLO, USL, CRUD, UCO, DTO, SCO, SZO, DNO, UWTI, DWTI.
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Diamondback Energy: Coiled To Strike Or To Miss?
http://seekingalpha.com/article/1769342-diamondback-energy-coiled-to-strike-or-to-miss?source=email_rt_article_readmore
Disclosure: I am long FANG. (More...)
Diamondback Energy (FANG) (with the evocative stock symbol of FANG) is a pure Permian, or West Texas, oil play company. Its operations are straightforward: drilling for oil in one of the hottest basins in the country. Investors who expect oil prices to fall may want to consider shorting this fully-valued stock. Investors who want to remain long commodities in the face of continued quantitative easing with a clear window into the strongest traditional/unconventional play may want to buy the dips.
Many of Diamondback Energy's stockholders have taken an understandable victory lap: the stock price had more than tripled since its initial public offering price of $17.50/share a year ago to a $52.75/share close on Monday, October 21st. The closing price October 23rd was $49.10/share.
The growth of Texas oil production from one million barrels per day to over two million barrels per day has been an optimistic, powerful story. Buying Diamondback Energy stock a year ago was a way to jump in. Is it still? That depends on several factors meshing together well, especially continued high oil prices. The October 23rd futures price of West Texas Intermediate oil, was just over $97/barrel, down somewhat from prior weeks. Its widening split from Brent, priced near $108/barrel, suggests a slight overhang of US oil supply. However, note that the Permian basin has the lowest break-even oil price, about $55/barrel, of any of the Lower 48 unconventional resource plays.
Potential Diamondback Energy investors need to be expecting some of the following factors: a) a pullback in stock price, b) a takeover, c) continued high oil prices, d) prospective acreage with more downspacing (wells/acre) yielding more proved reserves, e) further declines in Diamondback's operating costs, f) a continued increase in production, or g) continued sufficient takeaway capacity with robust demand at the other end of the pipe.
Diamondback Energy is headquartered in Midland, Texas. It has 52 full-time employees and 51,700 acres of leasehold. The majority of its 10,000 barrels per day of production is oil, over 80%. In the last year it participated in 20 horizontal wells, 19 of those in the Wolfcamp B formation.
With four rigs completing horizontal wells and one rig completing vertical wells, Diamondback is already producing from the Wolfcamp B and Clearfork formations with stacked pay potential locations in Wolfcamp A and C, Spraberry, Cline, Strawn, and Atoka formations. It has 1,114 gross and 867 net potential horizontal targets, with estimated ultimate recovery from each of 400,000-600,000 barrels of oil equivalent. Note that this 867-location total is estimated at 40-acre spacing but 20-acre spacing (downspacing) is a distinct possibility, and the benefit of 20-acre spacing was not included in the company's present-value estimate. A recent Diamondback announcement indicates the company's activities, and that of the wider basin when it said that the Digger 601H Clearfork Shale well in Andrews County reached a maximum rate of 611 barrels of oil equivalent per day (87% oil) from a 7,541 foot lateral. The well was completed for $6.8 million, with 30 frac stages, using a slickwater stimulation technique.
Diamondback Energy's pro forma proved reserves as of September 1, 2013 were 57.9 million barrels of oil equivalent. According to the company's outside reserve engineering firm, 65% of the total is oil (37.4 million barrels), 20% is natural gas liquids and 15% is natural gas. Proved developed reserves-what can be taken to the bank-are 43% of the total, or 24.9 million barrels of oil equivalent, giving a pro-forma present value at 10% (PV-10) of $952 million. The oil portion of the proved developed reserves is 15.5 million barrels.
Diamondback Energy has takeaway contracts with Magellan for oil, Lone Star and other west Texas pipelines for natural gas liquids, and Oneok for natural gas.
The company reported its general and administrative costs of $3-$5/barrel and its third-quarter 2013 lease operating expense was $9/barrel, down from $18/barrel a year earlier-a function of its higher production level.
Diamondback's management team has experience, including some with Permian Basin and specific Wolfberry experience, from ConocoPhillips (COP), Apache (APA), Laredo (LPI), Burlington Resources, and Concho (CXO).
The company is followed by 17 analysts. Its largest holder is Gulfport Energy, another oil producer, with 12%. Wexford Capital is the largest institutional stockholder by far, owning 27% of shares outstanding.
As a pure-play Permian oil stock, Diamondback's prospects depend on one's estimate of the price of oil, particularly West Texas Intermediate. This relies in part on continued quantitative easing, which appears likely.
However, simple economics suggest a price decline: high prices bring lower prices as companies jump in to produce more oil. With record-high November production in North Dakota of 961,000 barrels per day and 2,300,000 barrels per day in just the Permian and the Eagle Ford basins of Texas, the US is reliably on this path. There are hundreds of thousands of drilling locations. Operators are completing wells more quickly and producing more hydrocarbons per well. The process resembles manufacturing rather than speculative, high-risk exploration. Travis Stice, chief executive officer of Diamondback, reports a trend in line with these efficiencies, that a year ago horizontal wells were taking more than a month to drill and today they are doing it in less than half that time.
The EIA has just produced a new drilling productivity report showing these increased efficiencies. While they are more apparent in basins outside the Permian, the bottom line is that there is more domestic supply, which will tend to drive down the domestic oil price.
While demand for oil is increasing, the strength or weakness of global economies, including especially the US and China, will remain important to the price of oil. The US consumes 21% of the world's oil, while China uses 11%.
The latest oil inventory numbers show an increase worldwide to 380 million barrels. This includes an increase in China, reported by Xinhua News Agency, to about 238 million barrels and an increase in the US at Cushing to 33 million barrels. The supply increases have pushed down the near-term price of oil.
Insiders took a selling opportunity in September, when Diamondback's price was lower. After the eight executives sold shares, none now owns more than 0.3% of the company, and the chief executive officer owns less than 0.1% of the company.
Similar Permian-focused stocks include Laredo Petroleum, Inc., and Athlon (ATHL). With a trailing price-earnings ratio of 94 and a forward price-earnings ratio of 40, for the near term Diamondback Energy appears fully valued and dependent on continued high West Texas Intermediate oil prices to sustain its stock price.
Additional disclosure: Primary ticker is FANG
Sweet, the market likes it while the sector's down.
FULL YEAR 2014 GUIDANCE: 100% plus production increase
Looking ahead into 2014, with the combination of Diamondback's expanded drilling
program and continued execution, the Company forecasts production to average
between 15.0 and 16.0 MBoe/d, which represents an increase over 2013 average
production of more than 100%.
Diamondback's board has approved an expanded 2014 capital expenditures budget
for drilling and infrastructure in an estimated range of $425 million to $475
million. This represents roughly a 48% expansion from 2013 excluding
acquisitions and is a reflection of the Company's larger acreage position and
strong balance sheet as well as its commitment to growth. (This forecast
excludes any potential acquisitions.)
The development focus for 2014 is to de-risk and delineate the horizontal
potential in the Company's northern acreage (Andrews, Martin and Dawson
Counties) and continue aggressive development in Midland County, which includes
Diamondback's Spanish Trail leases in which Diamondback recently purchased
mineral interests, and Upton County. The majority of these horizontal wells will
target the Wolfcamp B formation, as well as test other potential horizons as
Diamondback and other operators have done in 2013. One vertical drilling rig is
expected to remain active throughout the year, firming up the Company's
position. Additionally, a single non-operated horizontal rig is expected to be
active throughout the year drilling on the Spanish Trail leases in Midland
County which would contribute to net production via Diamondback's new ownership
of the mineral interests.
The Company expects to exit 2013 with four horizontal rigs running, with one in
Upton County, two in Midland County and one in Martin County. Diamondback
expects to add a fifth horizontal rig in the second quarter of 2014, expanding
its existing drilling program at its Spanish Trail leases as well as other
acreage in Midland County.
Diamondback expects to drill 65 to 75 gross horizontal wells and 20 to 25 gross
vertical wells in 2014, with costs expected to range from $6.9 million to $7.4
million for a 7,500 foot lateral horizontal well and $2.0 million to $2.2
million for a vertical well. The average lateral length for all horizontal wells
is expected to average approximately 6,500 feet in 2014 due to lease geometry
and should range from short laterals of 5,000' to longer laterals in excess of
10,000'. It is anticipated that roughly half of the wells drilled in 2014 will
be from pad locations which are expected to support additional cost savings.
As shown in the table below, 2014 lease operating expenses are expected to be in
the range of $6.00 to $7.00 per Boe, down from a 2013 guided range of $9.50 to
$11.50 / Boe (after giving effect to the reclassification described in notes (a)
and (b) in the table below), while general and administrative expense ("G&A")
per Boe is expected to decline to between $2.00 and $3.00 per Boe, from a guided
range of $3.00 to $5.00 per Boe in 2013. In 2014, depreciation, depletion and
amortization expense ("DD&A") is expected to be between $23.00 and $25.00 per
Boe while production and ad valorem taxes as a percent of revenue are expected
to be 7.1%.
2013 2014 Guidance
Guidance Diamondback Minerals Diamondback
excluding Energy Inc
Minerals
Total Net Production - MBoe/d 7.2 - 7.5 12.5 - 13.0 2.5 - 3.0 15.0 - 16.0
Unit costs ($/boe)
Lease operating expenses (a) $9.50 - $11.50 $7.00 - $8.00 $0.00 $6.00 - $7.00
G&A $3.00 - $5.00 $2.50 - $3.50 $0.00 $2.00 - $3.00
DD&A $22.00 - $25.00 $22.00 - $24.00 $26.00 - $28.00 $23.00 - $25.00
Net Interest Expense n/a n/a $36.0 - $38.0
Production and Ad Valorem Taxes (% of Revenue) (b) 6.9% - 7.1% 7.0% 7.5% 7.1%
$ - million
Gross Horizontal Well Costs (c) $7.5 - $8.5 $6.9 - $7.4 n/a $6.9 - $7.4
Horizontal Wells Drilled (net) 65-75 (52 - 60) n/a 65-75 (52 - 60)
Gross Vertical Well Costs $2.0 - $2.2 $2.0 - $2.2 n/a $2.0 - $2.2
Gross Vertical Wells Drilled (net) 20-25 (16 - 20) n/a 20-25 (16 - 20)
Capital Expenditures $290 - $320 $425 - $475 n/a $425 - $475
a - Prior 2013 guidance included ad valorem taxes in lease operating expenses. The Company has reclassified these taxes and these taxes will now be reported in production and ad valorem taxes. Corporate overhead, previously reported as indirect LOE, is now included as part of lease operating expenses. 2013 guidance has been adjusted to reflect this reclassification.
b - Includes production taxes of 4.6% for oil and 7.5% for natural gas and NGLs and ad valorem taxes. Previous 2013 production tax guidance excluded estimated ad valorem taxes of $1.50/boe of lease operating expense.
c - Assumes a 7,500' average lateral length.
Approximately 1,500 Bbls/d of 2014 production is hedged with LLS at
approximately $100.72/Bbl and 333 Bbls/d of 2014 production is hedged with Brent
at $109.70/Bbl. The Company's liquidity position remains strong with
approximately $50 million of cash on hand at September 30, 2013 and an undrawn
revolver. The Company has been advised by its lenders that its borrowing base
will be increased to $225.0 million as a result of its recently completed fall
redetermination.
The table below presents estimated 2014 EBITDA based on various oil price
scenarios (oil price held flat for full year, gas at $4.00/Mcf and NGLs at 40%
of oil price):
2014 EBITDA Guidance ($ - million)
Oil Price ($/bbl) Diamondback Minerals Diamondback
excluding Energy Inc
Minerals
120 369 85 454
100 302 71 373
80 234 57 291
CONFERENCE CALL
Diamondback will host a conference call to discuss its 2014 guidance on October
24, 2013, at 10:00 a.m. ET (9:00 a.m. CT). Interested parties should call (877)
440-7573 (United States/Canada) or (253) 237-1144 (International) and utilize
the confirmation code 91190512. A live broadcast of the earnings conference call
will also be available via the internet at www.diamondbackenergy.com under the
"Investor Relations" section of the site. A telephonic replay will be available
for anyone unable to participate in the live call. To access the replay, call
(855) 859-2056 (United States/Canada) or (404) 537-3406 (International) and
enter confirmation code 91190512. The recording will be available from 1:00 p.m.
ET on Thursday, October 24, 2013 through Wednesday, October 30, 2013 at 11:59
p.m. ET. The webcast will be archived on the Company's website for 30 days.
About Diamondback Energy, Inc.
Diamondback is an independent oil and natural gas company 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 Clearfork, Spraberry, Wolfcamp, Cline,
Strawn and Atoka formations, which we refer to collectively as the Wolfberry
play.
Forward Looking Statements
This news release contains forward-looking statements within the meaning of the
federal securities laws. 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 belief, based on currently available information, as to
the outcome and timing of future events. These forward-looking statements are
subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking statements.
These include the factors discussed or referenced in the Company's filings with
the Securities and Exchange Commission ("SEC"), including its Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, that could cause actual results to
differ materially from those projected. These filings are available for free at
the SEC's website (http://www.sec.gov). Any forward-looking statement made in
this new release speaks only as of the date on which such statement is made and
the Company undertakes no obligation to correct or update any forward-looking
statement, whether as a result of new information, future events or otherwise.
CONTACT: Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
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-0-
KEYWORD: MIDLAND, Texas
INDUSTRY KEYWORD: Energy Industries
SUBJECT CODE: Calendar of Events
Earnings Releases and Operating Results
ENERGY
OIL
EARNINGS
CONFERENCE CALL
Source: Comtex Wall Street News
She keeps crawling ahead. Impressive company.
THIS IS THE STOCK WATCH THE NEWS, DO YOUR HOMEWORK. LOOK UP EVERYONE WHAT DO YOU SEE? THE SKY.EVERYBODY IS COVERING THE MIDLAND TEXAS AREA. ENOUGH OIL FOR OVER 50YRS. NOT ONE DRY OIL WELL HERE. THERE DRILLING WITH FACTS THIS TIME NOT SPECILATION
So naturally, some of the Permian plays
are down today LOL!
Cramerica has been all over the Permian via PXD.
CNBC has been pumping the heck out
of the Permian this morning.
My trade platform is down and my broker is trying to convince me everything is fine grrrrr...
That's better than having nothing. MTDR broke out last week. KOG and SN starting to look much better as well, imo. Good luck this week!
150 shares on mon. woo-hoo!
I thought I'd build it back up on dips, but it never really gave me the dip I was looking for the rest of the week.
My attention was mainly on flipping shares of OGXPY I bought last week. One flip of EWRL, other than that, just a lot of looking.
Hope your week went well.
B
Hope u got some. Nice call. Looking good today!
Majority of domestic exploration and production co's are either going to double top on a lengthy timeframe or break out. I see a lot of lengthy saucer patterns that will hopefully form a handle on their charts. LIME was a reverse split, but my service showed it up like 600%. I'll have to read up on Diamondback in the morning. Hope you're feeling better. Gov't can't get their shit together. Tomorrow will be interesting. IBD has domestic e&p's ranked 10 amongst all the sectors, so they're one of the strongest sectors out there now. Yap atcha later!
No, I only noticed it after your post,
quite the drop.
Hit piece on SA yesterday re: FANG,
maybe that lets me get back in? I need something in my regular port that's not crazy speculative.
Is that an oxymoron or just moronic?
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