Diamondback Energy cuts 2020 production forecast

(Reuters) - Oil and gas producer Diamondback Energy Inc cut its full-year 2020 production forecast by about 5% on Tuesday as it curtailed drilling activity and curbed spending to cope with a slump in oil prices.

The company said it now plans to produce about 295,000 to 310,000 barrels of oil equivalent per day (boepd) for the full year, lower than its previous forecast of 310,000 to 325,000 boepd.

“Diamondback’s revised 2020 capital budget and operating plan reflects the swift changes we have made in short order as our industry deals with a market that is changing daily due to an unprecedented global demand shock,” said Chief Executive Officer Travis Stice.

Oil producers have been lowering their production forecast over the past few weeks as crude prices have been hit by the coronavirus outbreak and worries of oversupply after OPEC and other producers failed to agree on deeper cuts in early March.

The Permian producer, however, stuck to its previous capital spending plans of between $1.5 billion and $1.9 billion for 2020.

Reporting by Shradha Singh in Bengaluru; Editing by Anil D’Silva and Amy Caren Daniel