DENVER, Might 2 (Reuters) – U.S. shale producer Diamondback Power (FANG.O) on Tuesday stated rig costs are falling and metal prices are set to say no by about $20-$25 per foot, an indication the inflationary pressures that plagued the oilfield previously yr are easing.
Diamondback’s second-quarter common rig dayrate is down from the primary quarter, the corporate instructed buyers. It didn’t specify how a lot the speed had declined.
The corporate additionally stated it anticipated dealmaking to choose up within the oil patch, as personal corporations look to monetize.
“I actually suppose the following couple of years are going to be fascinating within the M&A panorama,” CEO Travis Stice instructed buyers on an earnings name.
He added that there are “some small-cap public corporations which might be going to wish to determine some type of exit technique to proceed to be related sooner or later.”
Reporting by Liz Hampton in Denver
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