UPDATE 1-DiamondBack Energy raises production outlook as oil prices pick up

(Adds details on outlook, capex)

April 12 (Reuters) - DiamondBack Energy Inc on Monday raised its full-year production outlook as the shale oil and gas producer accounted for its acquisition of rival QEP Resources and benefited from a recovery in crude prices.

Commodity prices are picking up as the global roll-out of vaccines against COVID-19 gains momentum, after a year where the health crisis decimated demand in the energy sector and hammered debt-laden shale companies.

Diamondback, which closed its $2.2 billion acquisition of Denver-based producer QEP Resources last month, said it expects 2021 net oil production of 360,000 to 370,000 barrels of oil equivalent per day (boed), compared with its earlier estimate of 308,000 to 325,000 boed.

The Permian-based producer also raised its 2021 capital expenditure forecast to between $1.60 billion and $1.75 billion versus its previous forecast of $1.35 billion to $1.55 billion.

Diamondback also predicted average production of 307,400 boed in the first quarter, compared with 299,000 boed in the previous quarter.

Reporting by Rithika Krishna in Bengaluru; Editing by Ramakrishnan M. and Devika Syamnath