Moody’s upgrades Diamondback, notes

Moody's Investors Service said it upgraded Diamondback Energy, Inc.'s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PDR and senior unsecured notes rating to B2 from B3.

The outlook was changed to stable and the SGL-2 speculative grade liquidity rating was affirmed.

"The upgrade reflects Diamondback's good operational execution since mid-2014 and our expectation of continued growth in production, reserves and cash flows through 2016," Moody's assistant vice president and analyst Sajjad Alam said in a news release.

"Lower drilling and completion costs, leading cash margins relative to its peer group, and good liquidity will help maintain a healthy drilling program even if oil prices remain near $60 per barrel. Diamondback plans to add two more rigs in the second half of 2015 and possibly another 2-3 rigs in 2016 to boost its production and reserves."

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