Diamondback Says it Should be Permian’s ‘Consolidator of Choice’ as Oil Outlook Dims

“Until someone else can prove they can do it better than us, we should be the consolidator of choice.”

Diamondback’s shares fell 3.6% to $142.67 in morning trade after it posted second-quarter profit below analysts’ estimates, hit by a 20% year-on-year drop in Brent crude prices amid weak global growth, OPEC+ supply increases and geopolitical tensions.

The Midland, Texas-based company said it remains focused on reducing debt and share count in 2025, and may lean more into buybacks if market conditions weaken.

The company said it was hard to be bullish on oil, adding that shale producers were increasingly running scenarios based on $50–$60 oil, versus $60–$80 in recent years.

Diamondback dropped four rigs in the second quarter, reducing its activity to 13 rigs and lowered its 2025 capital budget around 3% at midpoint to $3.4–$3.6 billion.

(Reporting by Arunima Kumar in Bengaluru; Editing by Shailesh Kuber)