Earnings Highlights FANG, CRGY, DVN, GPOR, OXY, SM, VTLE, CHRD, MRO
Diamondback Energy
The Company is raising the midpoints of both total and net oil production for the full year 2024 due to production outperformance year-to-date in 2024. The production efficiency metrics have been impressive with one frac crew completing 100 wells versus 80 wells a year ago. One rig is now drilling 26 wells compared to 24 wells a year ago.
Additionally, Diamondback is lowering the midpoint for capital expenditures as well as increasing activity levels for the full year 2024 due to continued cost control and efficiency gains. This guidance does not consider the pending Endeavor merger.
The company’s full year 2024 production guidance is revised higher from the prior reporting quarter by 1%.
Crescent Energy
Crescent Energy is experiencing continued gains in Eagle Ford capital efficiency with strong well results and continued improvements in development costs. The company successfully closed the acquisition of SilverBow Resources ahead of schedule.
Development costs for the company continue to benefit from operational efficiency gains, as well as moderating service costs. Full year 2024 production guidance is revised higher from the prior reporting quarter by 2% without even including the acquisition of SilverBow.
Devon Energy
Devon Energy’s Q2 2024 oil production reached an all-time high and exceeded guidance by 3 percent. The company’s operational performance was highlighted by excellent well productivity in the Delaware basin. Devon also saw improved cycle times across the entire company, setting multiple drilling and completion records. Drilled and completed feet per day metrics improved 12 percent and 6 percent year-to-date compared to 2023, respectively. As a result, the company’s full year 2024 natural gas production guidance is revised higher from the prior reporting quarter by 3.2%.
Gulfport Energy
Gulfport Energy incurred capital expenditures of $122.2 million, below the midpoint guidance expectation. The company is forecasting over $25 million in capital expenditure savings from operating efficiencies on drilling and completion activities during 2024. Gulfport believes the efficiency gains will allow them to reduce their future maintenance capital requirements on comparable drilling programs and deliver more activity on similar base capital expenditures in future years. Full year 2024 production guidance is unchanged compared to the prior reporting quarter.
Occidental Petroleum
Oxy’s total company production exceeded the mid-point of guidance. The company is maintaining full-year 2024 production guidance even with expected divestitures. The production outperformance was led by the Permian and Gulf of Mexico. The company’s full year 2024 production guidance is revised higher by 1.2% from the prior reporting quarter after adjusting for divestitures.
SM Energy
SM Energy’s higher than expected oil production and total production were driven largely by better-than-expected performance from Midland Basin wells and higher than expected oil content from new South Texas wells. In the Midland Basin, well performance exceeded expectations, while in South Texas performance from recent, fully bounded wells is expected to deliver a future payout in about six months from now. Additionally, preliminary results from two Woodford-Barnett test wells in the Sweetie Peck area look very strong.
Vital Energy
For Q2 2024, Vital Energy delivered company-record quarterly total and oil production. The company successfully executed three horseshoe wells in Upton County and organically added 120 long-lateral horseshoe wells to the company's development inventory while eliminating 84 short-lateral locations. Full year 2024 production guidance is revised higher from the prior reporting quarter by 2%.
Chord Energy
Q2 2024 oil volumes were at the high-end of guidance reflecting strong well performance and lower downtime. Natural gas production was above the high end of guidance. Full year 2024 production guidance is revised higher from the prior reporting quarter by 3.5%.
Marathon Oil
Marathon Oil is one of the few producers who didn’t produce above the midpoint of the guidance range. As a result, the company kept its full-year 2024 production and capital expenditure guidance unchanged from the prior reporting quarter. Due to the pending merger with ConocoPhillips, Marathon Oil will not host a conference call or webcast to discuss its second quarter 2024 results.
