DiamondBack Energy Inc. on April 12 raised its full-year production outlook as the shale oil and gas producer accounted for its acquisition of rival QEP Resources and benefited from a recovery in crude prices.

Commodity prices are picking up as the global roll-out of vaccines against COVID-19 gains momentum, after a year where the health crisis decimated demand in the energy sector and hammered debt-laden shale companies.

Diamondback, which closed its $2.2 billion acquisition of Denver-based producer QEP Resources last month, said it expects 2021 net oil production of 360,000 to 370,000 boe/d, compared with its earlier estimate of 308,000 to 325,000 boe/d.

The Permian Basin producer also raised its 2021 capex forecast to between $1.6 billion and $1.75 billion versus its previous forecast of $1.35 billion to $1.55 billion.

Diamondback also predicted average production of 307,400 boe/d in the first quarter, compared with 299,000 boe/d in the previous quarter.

Onshore