Diamondback Energy (FANG) said Tuesday it is looking to establish a joint venture to provide the electricity requirements of its Permian Basin operations and data centers in West Texas.
"There's been a lot of discussion around power in the basin," Diamondback President and Chief Financial Officer Kaes Van't Hof said at an investor call, according to a transcript provided by FactSet. "Obviously were short power in the basin."
The oil and gas company intends to form a partnership with a large independent power producer for a gas-fired power plant, with a "hyperscaler data center operator taking on the lion's share of that power," he said.
Diamondback spent $70 million to $100 million annually on power over last five or six years, Van't Hof said.
Price: 155.04, Change: -0.19, Percent Change: -0.12
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.