Diamondback Energy CEO Kaes Van't Hof said the disruption of oil flows through the Strait of Hormuz has triggered the largest supply shock in the history of the global oil market, and the restocking required to rebuild global inventories has structurally raised the floor for oil prices compared to pre-conflict levels. The company now expects to produce at least 1 million barrels of oil equivalent per day in fiscal 2026, up from a prior projection of 972,000, after second-quarter output jumped more than 10 percent year-over-year to 1.02 million. Diamondback's realized oil price surged to $94.33 per barrel from $62.34 a year earlier, and the board doubled the stock buyback authorization to $16 billion, with $9.9 billion available for repurchase as of July 31. The comments echo recent warnings from Exxon and Chevron about lingering high fuel prices amid war-driven upheavals.
Diamondback Energy IncCEO cites Hormuz disruption raising oil price floor, boosting Diamondback's outlook and buyback.
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