Diamondback Energy Targets At Least $1 Billion in Non-Core Asset Sale; Beats Profit Estimates
(Reuters) — Shale producer Diamondback Energy Inc said on Wednesday it was increasing its non-core asset sale target to at least $1 billion by the end of this year from $500 million.
“We still have some strategic midstream investments that are nearing the point where they should be monetized,” Chief Financial Officer Kaes Van’t Hof said on a call.
Additionally, the U.S. oil and gas producer said on Tuesday beat Wall Street expectations for fourth-quarter profit, as tighter energy supplies following Russia's invasion of Ukraine boosted crude prices.
Crude prices retreated from their multi-year peak in the last quarter, but remained 11% higher than a year earlier, primarily due to Western sanctions imposed on major energy producer Russia, and OPEC+ curbing output which tightened global supply.
Midland, Texas-based Diamondback said total average unhedged realized prices were at $55.76 per barrel of oil equivalent (boe) in the reported quarter, 1.3% lower from a year earlier.
Its average production was 391,000 barrels of oil equivalent per day (boe/d), higher than 387,000 boe/d last year.
Adjusted net income stood at $5.29 per share, above analysts' average estimate of $5.22 per share.
For full-year 2023, Diamondback sees net production between 430,000 to 440,000 barrels of oil equivalent per day (BOE/d), and $2.5 billion to $2.7 billion in capital expenditure.
Diamondback in November said it would buy Lario Permian, a unit of Lario Oil & Gas Company, for around $1.5 billion in cash and stock.
Lario Permian's assets consist of about 25,000 acres in the Northern Midland Basin in Texas, with estimated 2023 production of about 18,000 barrels of oil per day.
Peer Chesapeake Energy Corp CHK.O also beat fourth-quarter profit estimates on higher crude prices. It reported adjusted net income of $4.22 per share, higher than average analysts' expectation of $2.99 per share.
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