Although Diamondback, Devon and Coterra are resisting that pressure, rivals including Exxon Mobil Corp., Continental Resources Inc. and Hess Corp. last week signaled they’re taking the brakes off of output.
“Russia’s actions have increased the volatility in our sector, creating significant swings in commodity prices as a result of uncertainty around global oil supply,” Diamondback Chief Executive Officer Travis Stice said in a statement. “We do not feel that today is the appropriate time to begin spending dollars that would not equate to additional barrels until multiple quarters from today given the uncertainty and volatility currently in the market.”
Diamondback, Devon and Coterra all posted stronger-than-expected first-quarter results on Monday.
Diamondback raised its regularly quarterly payout by 17% to 70 cents a share, and declared a variable dividend of $2.35, bringing the total distribution to $3.05.
Coterra lifted its combined regular and variable payout by 7% to 60 cents a share, payable on May 13.