-- Diamondback Energy (FANG) said operators may add 20 to 30 oil rigs in the US Permian Basin this year as elevated crude prices and supply disruptions tied to the Middle East conflict support higher activity.
"We still have triple-digit oil prices, and the market is still calling for oil to come to market," CEO Matthew Kaes Van't Hof said Tuesday on an earnings conference call. "This is a year where instead of pulling back activity, you keep the efficiencies going and production continuing to climb."
Diamondback plans to stay within its original guidance, with its own activity increase of two to three rigs and a fifth completion crew.
Van't Hof said Diamondback aims to stay on the low end of the US shale cost curve as signs of declining well quality emerge across parts of the basin.
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