Diamondback Energy Inc. is expecting oilfield services (OFS) costs to ease amid a current slowdown of activity in the Lower 48, according to CEO Travis Stice.

Stice hosted a conference call to discuss second quarter earnings for the Midland, TX-based Permian Basin pure-play.

Diamondback’s OFS providers “have always been responsive” to declines in the Permian rig count, he explained, noting a current “reluctance to increase spending” among exploration and production firms.

As a result, “We believe that…we will continue to see a softening in costs from our friends on the service side.” He added that “we also see continued input costs coming down [for] steel, cement and other items.”

Diamondback’s capital expenditures for full-year 2023, however, are...