Shale drillers announced on Monday more production cuts in response to the recent market collapse, the Midland Reporter-Telegram reported.
This happened on the same day that OPEC-style oil quotas in the state were "pronounced dead on arrival."
Diamondback Energy, which is based on Midland, is scaling back its production for May by 10-15%, the newspaper reported.
Diamondback, Parsley Energy Inc. and Centennial Resource Development all announced they were scaling back their production, the story said. The cuts are is due to the drop in oil prices fueled by the COVID-19 pandemic, according to the news agency.
“Diamondback is choosing to curtail production in May because of economics, which should be the baseline for decisions on whether or not to produce barrels,” Diamondback Chief Executive Officer Travis Stice said.
Diamondback also suspended a buyback program it was previously running and said in a statement that it would be averaging "less than one" fracking crew during the quarter. The company is currently running 14 rigs but may reduce that number down to eight by the third quarter, according to the news agency.
Parsley reported that it would be cutting up to 23,000 barrels a day for the month of May, the news agency reported.
Centennial announced that if the shut-ins continue, the productivity of the wells could be harmed when it comes time to turn them back on. It also announced some leases might not be renewed because of the reduction in services, the news agency reported.
Each of the companies noted non-cash impairment charges from the first quarter, including Parsley's $4.4 billion, Diamondback's $1 billion and Centennial's $611.3 million, according to the Reporter-Telegram.
Exxon Mobil Corp, ConocoPhillips and Chevron Corp. also have plans to curtail as much as 660,000 barrels per day, the newspaper said.