Diamondback Energy CEO sees declining oilfield service prices on lower drilling
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Diamondback Energy (NASDAQ:FANG) CEO Travis Stice said Tuesday that he expects prices for oilfield equipment and services will fall in response to lower drilling activity.
"With the reluctance [by producers] to increase spending, we believe that we will continue to see a softening in cost from our friends on the service side," CEO Travis Stice said on the company's post-earnings conference call.
Producers are expecting a rationalization of costs after prices for services and raw materials climbed for about two years, Stice said.
In contrast, Liberty Energy (LBRT) said recently that industry pricing likely will not drop even as drilling and completions activity declines in this year's H2.
Diamondback (FANG) shares +0.5% after missing Q2 earnings estimates but raising its dividend.
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