Diamondback Energy to maintain ‘flat’ Permian oil production

Paul Takahashi 2/23/2022

Stice

(Bloomberg) — Diamondback Energy Inc. Chairman and CEO Travis Stice said the shale driller will maintain flat production in the Permian Basin this year.

The Texas wildcatters that launched the U.S. shale boom are resisting the temptation to pump more oil even as oil prices approach $100 a barrel, heeding investor demand for fiscal discipline after years of poor capital returns.

Stice said he expects Diamondback’s maintenance capital plan to generate nearly $4 billion of free cash flow in 2022, of which at least 50% would be returned to shareholders through increased dividends, share buybacks and possibly a variable dividend, according to an earnings release.