May 3 (Reuters) - Permian basin-focused shale producer
Diamondback Energy Inc topped market expectations for
quarterly profit on Monday as COVID-19 vaccine rollouts and
easing travel restrictions boosted oil prices.
A 27% surge in crude prices this year has lifted
earnings of U.S. oil firms after the pandemic led to one of the
worst downturns in the sector's history.
Midland, Texas-based Diamondback's average price for its oil
and gas, excluding hedges, rose 54.5% sequentially in the first
quarter to $42.36 per barrel of oil equivalent.
The company posted quarterly production of 307,422 barrels
of oil equivalent per day (boepd), 2.8% higher than the previous
Diamondback also said on Monday it would sell its Williston
Basin assets in North Dakota and Montana for about $745 million
and some Southern Midland Basin acreage for $87 million without
disclosing the buyer.
It had previously signaled that it could sell the Williston
operations, which it had acquired in its $2.2 billion
acquisition of Denver-based rival QEP Resources in March.
Oasis Petroleum Inc said in a separate statement it
would buy the Williston assets from Diamondback.
The asset sales promoted Diamondback to trim its full-year
production forecast to between 350,000 boepd and 360,000 boepd,
from 360,000 boepd to 370,000 boepd previously.
Adjusted net income attributable to the company came in at
$379 million, or $2.30 per share, for the three months ended
March 31, compared with $130 million, or 82 cents per share, in
the fourth quarter.
Analysts were expecting a figure of $1.80 per share,
according to Refinitiv IBES data.
(Reporting by Arunima Kumar in Bengaluru; Editing by Aditya