Diamondback Shows Serious Bite
For those of us at Reese Energy Consulting, there’s a lot to like about Midland-based Diamondback Energy. From the company’s naming conventions of general partner Viper and midstream subsidiary Rattler to its NASDAQ ticker symbol FANG, this independent producer shows serious bite. In 2018, Diamondback acquired Energen and Ajax Resources, which doubled its position in the Permian to 461,000 acres. The company also formed Rattler Midstream, took equity positions in the Gray Oak Pipeline, and signed on as a strategic partner in the EPIC Crude Oil Pipeline. The year became another transformative one with the company’s 532 leases producing 24.3 million BBLs of oil and more than 42.4 BCF of natural gas, landing it among the top 10 Texas drillers. From March 6-13, Diamondback scored the number one spot with 17 wells. While moving in size and scale from a mid-cap to a large-cap company has its challenges, Diamondback is well on its way to become a new gold standard among independents.