en.Wedoany.com Reported - Diamondback Energy Inc. CEO Kaes Van't Hof told investors and analysts on August 4 that the company will rely on operational efficiency to slightly boost production for the remainder of 2026.
Since the start of this year, the company's production has grown by approximately 4%, driven by accelerated well completions of some drilled-but-uncompleted wells by field crews following the outbreak of the Iran war. In the second quarter, oil production rose to 525,000 barrels per day, with total production averaging nearly 1.02 million barrels of oil equivalent per day—the first time the latter has surpassed the seven-figure mark in company history.
The company's capital expenditure for this year is projected at $3.9 billion, with no additional investment made to pursue higher output. Van't Hof stated that the team will take a "proactive" approach to technological innovation to improve oil recovery rates across nearly 9,000 well locations on the company's 902,000 acres in the Permian Basin, aiming to position Diamondback as a participant in restocking efforts to offset inventories lost due to Middle East conflict disruptions.
"Right now, the model is producing some kind of low-single-digit organic growth while maintaining capital efficiency and running five frac crews throughout the year. Betting on restocking demand, that's probably where we are right now," Van't Hof said during a conference call discussing second-quarter results. "As you've seen in the past, Diamondback can react quickly to positive or negative situations. I think it's smart to be able to do that in this environment."
Saudi Aramco President and CEO Amin Nasser is also betting on steady restocking demand. He told investors on August 4 that even if the Strait of Hormuz fully reopened that day, it would take 18 months to restore pre-war inventory levels, requiring an additional 2.1 million barrels per day to be added to various reserves. Nasser added, following the release of Saudi Aramco's second-quarter results, that this scenario "would significantly increase demand for crude oil, lasting into 2027 and beyond."
Financially, Diamondback reported second-quarter net income of $1.88 billion, compared with $699 million in the same period last year; total revenue stood at $5.56 billion. The company completed 168 wells during the quarter, up from 147 in the first three months of the year, and drilled 97 wells.
Due to increased production, the company has raised its full-year total production outlook by approximately 3%, from 972,000 barrels of oil equivalent per day to just above 1 million barrels of oil equivalent per day; the full-year oil production outlook has been slightly raised from 520,000 barrels per day to approximately 522,000 barrels per day.
In midday trading on August 4, Diamondback (ticker: FANG) shares fell more than 3% to around $191.50. That day, multiple oil and gas stocks declined amid market chatter over reports of progress in Iran peace talks. Over the past six months, the stock has still risen more than 10%, with the company's market capitalization exceeding $54 billion.
