Diamondback Energy, Inc. (FANG) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

August 1, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Diamondback Energy Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to the VP of Investor Relations, Adam Lawlis. Please go ahead.

Adam Lawlis

Thank you, Jules. Good morning, and welcome to Diamondback Energy's Second Quarter 2023 Conference Call. During our call today, we will reference an updated investor presentation and Letter to Stockholders, which can be found on Diamondback's website. Representing Diamondback today are Travis Stice, Chairman and CEO; Kaes Van't Hof, President and CFO; and Danny Wesson, COO.

During this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance and businesses. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the company's filings with the SEC. In addition, we will make reference to certain non-GAAP measures. The reconciliations with the appropriate GAAP measures can be found in our earnings release issued yesterday afternoon.

I'll now turn the call over to Travis Stice.

Travis Stice

Good morning, and thank you, Adam.

As Adam mentioned, last night, we released a shareholder letter in conjunction with our press release, and this is our second quarter in a row we've tried this. I hope you find it useful. We believe that not only increases the transparency directly to our shareholders but also improves efficiency, and those of you who have followed our story for a long time know how important improving efficiency is to us.

So with that, operator, let's move right into questions, if you'll open the line.

Questions and Answers:

Operator

At this time, we will conduct the question-and-answer session. [Operator Instructions]. Our first question comes from the line of Neal Dingmann of Truist Securities. Your line is now open.

Neal Dingmann

Morning, Travis. Guys. Nice quarter. Travis, my first question, maybe get right to it, is on service cost, and we've heard a lot of chatter about. Specifically, could you speak to maybe the current rig and frac rate environment today versus a couple of months ago? And maybe more importantly, what are you all assuming the change in cost for the remainder of the year, and how this could impact the '24 levels?