Diamondback Energy increases its third-quarter production estimate

Diamondback Energy, a U.S. shale oil producer, raised its production forecast for the third quarter on Tuesday in order to reflect its $26 Billion acquisition of Endeavor Energy.

Last month, Texas-based Endeavor Energy completed its acquisition, making the company the third largest oil and gas producer within the Permian basin, the U.S.'s top shale-region. It is now just behind Exxon Mobil, and Chevron.

The company expects to produce between 565,000 to 569,000 barrels equivalent per day (boepd) in the third quarter, up from its earlier forecast of 459,000 to 466,000.

Wall Street expects the company to produce 487,350 Boepd per quarter, according to LSEG's estimates.

Analysts had predicted that the company would produce 284,630 barrels of oil per day in the quarter July-September.

Diamondback has also increased its forecast for capital expenditures in the third quarter to between $675 and $700 million. This is up from an earlier forecast of between $570 and $610 million. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)

(source: Reuters)