2023-08-01 14:59:35 ET
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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Diamondback Energy CEO sees declining oilfield service prices on lower drilling