Following its $9.2 billion acquisition of Energen Corp. in 2018, Permian Basin pure-play Diamondback Energy Inc. reported a 65% year/year (y/y) increase in oil and gas production to 301,300 boe/d during the fourth quarter.

Output rose 5% from 3Q2019, the Midland, TX-based independent said Tuesday. Full-year production averaged 283,000 boe/d, up 27% from 2018, with oil volumes showing a 26% y/y increase. Diamondback credited fewer problems from well interference in the West Texas portion of the Permian when performing fractures (fracks).

Subsidiary Viper Energy Partners LP, meanwhile, reported a 29% y/y production increase in 4Q2019 to 26,100 boe/d, of which oil accounted for 16,500 b/d.

“The impact of offset frack interference experienced in the third quarter subsided in the fourth quarter with field level production in Howard County rebounding as expected,” said CEO Travis Stice. “For the full year 2019, Diamondback grew oil production pro forma for the Energen acquisition over 26% year/year.”

Diamondback, he said, “ended 2019 meeting or exceeding every major synergy target laid out with the Energen transaction. With the focus now on 2020, we believe Diamondback is well positioned to execute on our previously announced plan to deliver 10-15% y/y oil growth, while generating robust free cash flow at current commodity prices.”

More consolidation is expected this year in the Permian, which accounted for most of the marquee Lower 48 mergers and acquisitions in 2019, even when excluding Occidental Petroleum Corp.’s blockbuster $57 billion acquisition of Anadarko Petroleum Corp., according to recent analysis by energy data specialist Enverus.

Permian producers “should expect dismal values for their natural gas in 2020,” RBN Energy LLC analyst Jason Ferguson said in a report published Monday, because of oversupply and lack of sufficient takeaway capacity.

Permian crude oil, however, is now pricing much closer to other regional hubs, Ferguson said, from new pipelines that entered service during 2019.