Diamondback Energy's second-quarter 2020 net loss of $2.39 billion includes a non-cash impairment charge of $2.54 billion as a result of the lower SEC pricing due to the sharp decline in commodity prices. Adjusted net income was $23 million for the quarter.
Average oil production for the second quarter was 176,323 b/d, compared to 191,229 b/d for the second quarter of 2019.
During second-quarter 2020, Diamondback drilled 37 gross horizontal wells in the Midland basin and 21 gross horizontal wells in the Delaware basin. The company turned 10 operated horizontal wells to production in the Midland basin and 5 operated horizontal wells in the Delaware basin. The average lateral length for the wells completed during the quarter was 11,256 ft.
Assuming a continuation of current market conditions, Diamondback plans to operate 5-6 operated drilling rigs and 3-4 completion crews for the remainder of 2020.
Second-quarter 2020 average unhedged realized prices were $21.99/bbl of oil, $0.63/Mcf of natural gas and $7.17/bbl of natural gas liquids, resulting in a total equivalent unhedged price of $15.39/boe.
Average realized hedged prices of $35.21/bbl of oil, $7.17/bbl of natural gas liquids and $0.33/Mcf of natural gas, resulting in a total equivalent price of $22.95/boe. Diamondback realized total hedging gains of $211 million in the second quarter, including $11 million of realized gains from the early termination of 10,000 b/d of third-quarter 2020 oil hedges.
As of June 30, Diamondback had $30 million in standalone cash and $119 million of outstanding borrowings under its revolving credit facility, with about $1.9 billion available for future borrowing under the facility and $1.9 billion of total liquidity.
During the second quarter of 2020, Diamondback spent $456 million on drilling and completion, $50 million on midstream, $32 million on non-operated properties, and $24 million on infrastructure, for total capital expenditures of $562 million. In the first half of 2020, the company spent $1,128 million on drilling and completion, $94 million on midstream, $80 million on infrastructure and $50 million on non-operated properties, for total capital expenditures of $1.35 billion.