Where others zig, Texas-based Permian pure player Diamondback Energy isn’t afraid to zag. Case in point: Diamondback’s $3.2 billion double acquisition last December of Permian rivals Guidon Energy and QEP Resources that lifted investor eyebrows. The combined deal added the company 81,000 acres in the Midland for a total 276,000 and a 95,000-net-acres stepchild in the Williston Basin, which it looked to offload early. In hindsight, this was a bold strike given an environment still gripped by COVID, $34 per barrel oil prices, and a debt-reduction drumbeat. Reese Energy Consulting today is following the latest news from Diamondback, which now has sold its Williston assets along with 8,300 net non-core acres in both the Midland and Delaware to Houston-based Oasis Petroleum for $745 million. The company, now about half the size of Pioneer Natural Resources, generated Q1 free cash flow of $624 million, drilled 41 wells completing 42 in the Midland, drilled 8 wells completing 25 in the Delaware, and announced a CAPEX budget of $1.75 billion. Zag on, Diamond.
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Diamondback Energy is a company engaged in hydrocarbon exploration and headquartered in Midland, Texas. As of December 31, 2020, the company had 1,316 million barrels of oil equivalent of estimated proved reserves, of which 58% was petroleum, 20% was natural gas, and 22% was natural gas liquids.
Out of the shale revolution, wastewater production, disposal and recycling have birthed a midstream industry all its own. One barrel of oil extracted generally yields half a barrel of wastewater. To put this in perspective, between 2011 and 2016 the volumes of wastewater from fracking rose an extraordinary 1,440%. And in areas like Texas and N.M. where one well can require millions of gallons of water to frack in the mostly desert climes, advanced wastewater solutions have become big business.