Diamondback says AI could deliver multi-billion-dollar value through better subsurface insights
FANG•Diamondback Energy said artificial intelligence could deliver multi-billion-dollar value through better subsurface insights. On a conference call, it also said it would prioritize boosting Permian recoveries over expanding outside the basin.
1. AI and Permian focus
Diamondback Energy said artificial intelligence could deliver multi-billion-dollar value through better subsurface insights. The company said it would rather invest in boosting Permian recoveries than expand outside the basin.
2. Production and gas outlook
Diamondback said oil production growth would require spending above fourth-quarter capital expenditure levels. It expects Permian gas to gain value as liquefied natural gas and power demand grow over the next decade, and sees a role in West Texas data center development.
3. M&A challenges
The company said large-scale mergers and acquisitions are more difficult amid current commodity price volatility.
