Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Diamondback Energy, Inc. | |
Entity Central Index Key | 1,539,838 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 98,128,043 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 37,440 | $ 1,666,574 |
Restricted cash | 0 | 500 |
Accounts receivable: | ||
Joint interest and other | 55,953 | 49,476 |
Oil and natural gas sales | 83,425 | 70,349 |
Related party | 98 | 297 |
Inventories | 3,027 | 1,983 |
Derivative instruments | 14,374 | 0 |
Prepaid expenses and other | 4,457 | 2,987 |
Total current assets | 198,774 | 1,792,166 |
Property and equipment: | ||
Oil and natural gas properties, full cost method of accounting ($3,892,109 and $1,730,519 excluded from amortization at March 31, 2017 and December 31, 2016, respectively) | 7,870,991 | 5,160,261 |
Midstream assets | 56,833 | 8,362 |
Other property and equipment | 70,170 | 58,290 |
Accumulated depletion, depreciation, amortization and impairment | (1,894,897) | (1,836,056) |
Net property and equipment | 6,103,097 | 3,390,857 |
Funds held in escrow | 2,051 | 121,391 |
Derivative instruments | 3,102 | 709 |
Deferred income taxes | 123 | 0 |
Other assets | 62,553 | 44,557 |
Total assets | 6,369,700 | 5,349,680 |
Current liabilities: | ||
Accounts payable-trade | 19,689 | 47,648 |
Accounts payable-related party | 0 | 1 |
Accrued capital expenditures | 94,810 | 60,350 |
Other accrued liabilities | 80,763 | 55,330 |
Revenues and royalties payable | 48,807 | 23,405 |
Derivative instruments | 0 | 22,608 |
Total current liabilities | 244,069 | 209,342 |
Long-term debt | 985,786 | 1,105,912 |
Asset retirement obligations | 18,939 | 16,134 |
Deferred income taxes | 1,548 | 0 |
Total liabilities | 1,250,342 | 1,331,388 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 98,127,709 issued and outstanding at March 31, 2017; 90,143,934 issued and outstanding at December 31, 2016 | 981 | 901 |
Additional paid-in capital | 5,034,007 | 4,215,955 |
Accumulated deficit | (383,121) | (519,394) |
Total Diamondback Energy, Inc. stockholders’ equity | 4,651,867 | 3,697,462 |
Non-controlling interest | 467,491 | 320,830 |
Total equity | 5,119,358 | 4,018,292 |
Total liabilities and equity | $ 6,369,700 | $ 5,349,680 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 3,892,109 | $ 1,730,519 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 200,000,000 | 200,000,000 |
Shares Issued | 98,127,709 | 90,143,934 |
Shares Outstanding | 98,127,709 | 90,143,934 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Oil sales | $ 207,074 | $ 79,020 |
Natural gas sales | 9,922 | 4,022 |
Natural gas liquid sales | 15,502 | 4,439 |
Lease bonus | 1,602 | 0 |
Midstream services | 1,130 | 0 |
Total revenues | 235,230 | 87,481 |
Costs and expenses: | ||
Lease operating expenses | 26,626 | 18,223 |
Production and ad valorem taxes | 15,725 | 7,962 |
Gathering and transportation | 2,619 | 2,789 |
Midstream services | 854 | 0 |
Depreciation, depletion and amortization | 58,929 | 42,069 |
Impairment of oil and natural gas properties | 0 | 30,816 |
General and administrative expenses (including non-cash equity-based compensation, net of capitalized amounts, of $7,063 and $8,350 for the three months ended March 31, 2017 and 2016, respectively) | 13,744 | 12,979 |
Asset retirement obligation accretion | 323 | 246 |
Total costs and expenses | 118,820 | 115,084 |
Income (loss) from operations | 116,410 | (27,603) |
Other income (expense): | ||
Interest income (expense) | (12,225) | (10,013) |
Other income | 1,145 | 563 |
Gain on derivative instruments, net | 37,701 | 1,426 |
Total other income (expense), net | 26,621 | (8,024) |
Income (loss) before income taxes | 143,031 | (35,627) |
Provision for income taxes | 1,957 | 0 |
Net income (loss) | 141,074 | (35,627) |
Net income (loss) attributable to non-controlling interest | 4,801 | (2,715) |
Net income (loss) attributable to Diamondback Energy, Inc. | $ 136,273 | $ (32,912) |
Earnings per common share: | ||
Basic (in dollars per share) | $ 1.46 | $ (0.46) |
Diluted (in dollars per share) | $ 1.46 | $ (0.46) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 93,161 | 71,026 |
Diluted (in shares) | 93,364 | 71,026 |
Consolidated Statements of Ope5
Consolidated Statements of Operations Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
General and Administrative Expense [Member] | ||
Non-cash stock based compensation, net of capitalized amount | $ 7,063 | $ 8,350 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at beginning of period at Dec. 31, 2015 | $ 2,108,973 | $ 668 | $ 2,229,664 | $ (354,360) | $ 233,001 |
Balance at beginning of period, shares at Dec. 31, 2015 | 66,797,047 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 973 | $ 0 | 0 | 0 | 973 |
Stock-based compensation | 10,141 | 0 | 10,141 | 0 | 0 |
Distribution to non-controlling interest | (2,115) | 0 | 0 | 0 | (2,115) |
Common shares issued in public offering, net of offering costs | 254,339 | $ 46 | 254,293 | 0 | 0 |
Common shares issued in public offering, net of offering costs, shares | 4,600,000 | ||||
Exercise of stock options and vesting of restricted stock units | 372 | $ 3 | 369 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 300,695 | ||||
Net income (loss) | (35,627) | $ 0 | 0 | (32,912) | (2,715) |
Balance at end of period at Mar. 31, 2016 | 2,337,056 | $ 717 | 2,494,467 | (387,272) | 229,144 |
Balance at end of period, shares at Mar. 31, 2016 | 71,697,742 | ||||
Balance at beginning of period at Dec. 31, 2016 | $ 4,018,292 | $ 901 | 4,215,955 | (519,394) | 320,830 |
Balance at beginning of period, shares at Dec. 31, 2016 | 90,143,934 | 90,143,934 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net proceeds from issuance of common units - Viper Energy Partners LP | $ 147,523 | $ 0 | 0 | 0 | 147,523 |
Unit-based compensation | 819 | 0 | 0 | 0 | 819 |
Stock-based compensation | 8,587 | 0 | 8,587 | 0 | 0 |
Distribution to non-controlling interest | (6,482) | 0 | 0 | 0 | (6,482) |
Common shares issued in public offering, net of offering costs | 14 | $ 0 | 14 | 0 | 0 |
Stock Issued During Period, Shares, Acquisitions | 7,685,918 | ||||
Stock Issued During Period, Value, Acquisitions | 809,173 | $ 77 | 809,096 | 0 | 0 |
Common shares issued in public offering, net of offering costs, shares | |||||
Exercise of stock options and vesting of restricted stock units | 358 | $ 3 | 355 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 297,857 | ||||
Net income (loss) | 141,074 | $ 0 | 0 | 136,273 | 4,801 |
Balance at end of period at Mar. 31, 2017 | $ 5,119,358 | $ 981 | $ 5,034,007 | $ (383,121) | $ 467,491 |
Balance at end of period, shares at Mar. 31, 2017 | 98,127,709 | 98,127,709 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 141,074 | $ (35,627) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for deferred income taxes | 1,425 | 0 |
Impairment of oil and natural gas properties | 0 | 30,816 |
Asset retirement obligation accretion | 323 | 246 |
Depreciation, depletion, and amortization | 58,929 | 42,069 |
Amortization of debt issuance costs | 852 | 668 |
Change in fair value of derivative instruments | (39,375) | 3,691 |
Income from equity investment | (3) | 0 |
Equity-based compensation expense | 7,063 | 8,350 |
Gain on sale of assets, net | (12) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (20,104) | 23,439 |
Accounts receivable-related party | 199 | 27 |
Restricted cash | (500) | 0 |
Inventories | (1,044) | 137 |
Prepaid expenses and other | (19,894) | (530) |
Accounts payable and accrued liabilities | 10,281 | (5,121) |
Accounts payable and accrued liabilities-related party | (2) | (12) |
Accrued interest | 10,313 | 8,575 |
Revenues and royalties payable | 25,402 | (3,968) |
Net cash provided by operating activities | 175,927 | 72,760 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (116,174) | (86,169) |
Additions to oil and natural gas properties-related party | 0 | (164) |
Acquisition of mineral interests | (8,579) | (2,082) |
Acquisition of leasehold interests | (1,760,810) | (16,923) |
Additions to midstream assets | (59) | 0 |
Acquisition of midstream assets | 48,329 | 0 |
Purchase of other property and equipment | (11,918) | (1,142) |
Proceeds from sale of assets | 1,238 | 123 |
Funds held in escrow | (119,340) | 0 |
Equity investments | (188) | (800) |
Net cash used in investing activities | (1,825,479) | (107,157) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 0 | 8,500 |
Repayment under credit facility | (120,500) | (11,000) |
Debt issuance costs | (418) | (4) |
Public offering costs | (265) | (179) |
Proceeds from public offerings | 147,725 | 254,518 |
Proceeds from exercise of stock options | 358 | 372 |
Distributions to non-controlling interest | (6,482) | (2,115) |
Net cash provided by financing activities | 20,418 | 250,092 |
Net increase (decrease) in cash and cash equivalents | (1,629,134) | 215,695 |
Cash and cash equivalents at beginning of period | 1,666,574 | 20,115 |
Cash and cash equivalents at end of period | 37,440 | 235,810 |
Supplemental disclosure of cash flow information: | ||
Interest paid, net of capitalized interest | 1,118 | 823 |
Supplemental disclosure of non-cash transactions: | ||
Change in accrued capital expenditures | 34,460 | (23,646) |
Capitalized stock-based compensation | $ 2,343 | $ 2,764 |
Common stock issued for oil and natural gas properties | 809,173 | 0 |
Asset retirement obligation acquired | $ 2,129 | $ 796 |
Description of the Business and
Description of the Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Organization and Description of the Business Diamondback Energy, Inc. (“Diamondback” or the “Company”), together with its subsidiaries, is an independent oil and gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback was incorporated in Delaware on December 30, 2011. The wholly-owned subsidiaries of Diamondback, as of March 31, 2017 , include Diamondback E&P LLC, a Delaware limited liability company, Diamondback O&G LLC, a Delaware limited liability company, Viper Energy Partners GP LLC, a Delaware limited liability company, and Rattler Midstream LLC (formerly known as White Fang Energy LLC), a Delaware limited liability company. The consolidated subsidiaries include the wholly-owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (the “Partnership”), and the Partnership’s wholly-owned subsidiary Viper Energy Partners LLC, a Delaware limited liability company. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. The Partnership is consolidated in the financial statements of the Company. As of March 31, 2017 , the Company owned approximately 74% of the common units of the Partnership and the Company’s wholly-owned subsidiary, Viper Energy Partners GP LLC, is the General Partner of the Partnership. These financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2016 , which contains a summary of the Company’s significant accounting policies and other disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application permitted for annual reporting period beginning after December 31, 2016. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Company is currently evaluating the impact of this standard; however, it does not believe this standard will have a material impact on the Company’s consolidated financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-11, “Inventory”. This update applies to all inventory that is not measured using last-in, first-out or the retail inventory method. Under this update, an entity should measure inventory at the lower of cost and net realizable value. This standard was effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This standard should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company adopted this standard prospectively effective January 1, 2017. The adoption of this standard had no impact on the Company’s financial position, results of operations or liquidity because the Company currently measures its inventory at the lower of cost or net realizable value. In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, “Income Taxes”. This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The standard was effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. This standard may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this standard prospectively effective January 1, 2017. The Company will present deferred tax liabilities and assets as noncurrent. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This update will be effective for public entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. While this update will not have a direct impact on the Company, the Partnership will be required to mark its cost method investment to fair value with the adoption of this update. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company believes the primary impact of adopting this standard will be the recognition of assets and liabilities on the balance sheet for current operating leases. The Company is still evaluating the impact of this standard. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”. Under this update, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application not permitted. This update allows for either full retrospective adoption, meaning this update is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning this update is applied only to the most current period presented. The Company is currently evaluating the impact, if any, that the adoption of this update will have on the Company’s financial position, results of operations and liquidity. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-09, "Compensation - Stock Compensation". This update applies to all entities that issue equity-based payment awards to their employees. Under this update, there were several areas that were simplified including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update was effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company prospectively adopted this standard effective January 1, 2017. The Company revised its calculation of diluted earnings per share to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. The Company also adopted a policy to account for forfeitures as they occur. In April 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-10, “Revenue from Contracts with Customers - Identifying Performance Obligations and Licensing”. This update clarifies two principles of Accounting Standards Codification Topic 606: identifying performance obligations and the licensing implementation guidance. This standard has the same effective date as Accounting Standards Update 2016-08, the revenue recognition standard discussed above. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations and liquidity. In May 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients”. This update applies only to the following areas from Accounting Standards Codification Topic 606: assessing the collectability criterion and accounting for contracts that do not meet the criteria for step 1, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modification at transition, completed contracts at transition and technical correction. This standard has the same effective date as Accounting Standards Update 2016-08, the revenue recognition standard discussed above. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations and liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not believe the adoption of this standard will have a material impact on the Company’s consolidated financial statements since the Company does not have a history of credit losses. In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments”. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update should be applied using the retrospective transition method. Adoption of this standard will only affect the presentation of the Company’s cash flows and will not have a material impact on the Company’s consolidated financial statements. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years. This update should be applied prospectively on or after the effective date. This update is not expected to have a material impact the Company’s financial statements or results of operations. The adoption of this update will change the process that the Company uses to evaluate whether the Company has acquired a business or an asset. This update will be applied prospectively and will not have an effect on prior acquisitions. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ACQUISITIONS On February 28, 2017, the Company completed its acquisition of certain oil and natural gas properties, midstream assets and other related assets in the Delaware Basin for an aggregate purchase price consisting of $1.74 billion in cash and 7.69 million shares of the Company’s common stock, of which approximately 1.15 million shares were placed in an indemnity escrow. This transaction includes the acquisition of (i) approximately 100,306 gross ( 80,339 net) acres primarily in Pecos and Reeves counties for approximately $2.5 billion and (ii) midstream assets for approximately $47.6 million . The Company used the net proceeds from the December 2016 equity offering, net proceeds from the December 2016 debt offering, cash on hand and other financing sources to fund the cash portion of the purchase price for this acquisition. The Company is in the process of identifying and determining the fair values of the assets and liabilities assumed, and as a result, the estimates for fair value at March 31, 2017 are subject to change. The following represents the preliminary estimated fair value of the assets and liabilities assumed on the acquisition date. The aggregate consideration transferred was $2.6 billion , subject to post-closing adjustments, resulting in no goodwill or bargain purchase gain. (in thousands) Proved oil and natural gas properties $ 387,571 Unevaluated oil and natural gas properties 2,122,415 Midstream assets 47,554 Prepaid capital costs 3,460 Oil inventory 839 Revenues payable (8,723 ) Asset retirement obligation (1,550 ) Total fair value of net assets $ 2,551,566 The Company has included in its consolidated statements of operations revenues of $12.2 million and direct operating expenses of $2.7 million for the period from February 28, 2017 to March 31, 2017 due to the acquisition. Pro Forma Financial Information The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three months March 31, 2017 and 2016 have been prepared to give effect to the February 28, 2017 acquisition as if it had occurred on January 1, 2016. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisitions occurred on January 1, 2016. The pro forma data also necessarily exclude various operation expenses related to the properties and the financial statements should not be viewed as indicative of operations in future periods. Three Months Ended March 31, 2017 2016 Revenues $ 258,159 $ 102,664 Income from operations 133,162 (24,003 ) Net income 150,615 (29,312 ) Basic earnings per common share 1.62 (0.41 ) Diluted earnings per common share 1.61 (0.41 ) |
Viper Energy Partners LP
Viper Energy Partners LP | 3 Months Ended |
Mar. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Viper Energy Partners LP | VIPER ENERGY PARTNERS LP The Partnership is a publicly traded Delaware limited partnership, the common units of which are listed on the NASDAQ Global Market under the symbol “VNOM”. The Partnership was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. The Partnership is currently focused on oil and natural gas properties in the Permian Basin. Viper Energy Partners GP LLC, a fully-consolidated subsidiary of Diamondback, serves as the general partner of, and holds a non-economic general partner interest in, the Partnership. As of March 31, 2017 , the Company owned approximately 74% of the common units of the Partnership. Partnership Agreement In connection with the closing of the Viper Offering, the General Partner and Diamondback entered into the first amended and restated agreement of limited partnership, dated June 23, 2014 (the “Partnership Agreement”). The Partnership Agreement requires the Partnership to reimburse the General Partner for all direct and indirect expenses incurred or paid on the Partnership’s behalf and all other expenses allocable to the Partnership or otherwise incurred by the General Partner in connection with operating the Partnership’s business. The Partnership Agreement does not set a limit on the amount of expenses for which the General Partner and its affiliates may be reimbursed. These expenses include salary, bonus, incentive compensation and other amounts paid to persons who perform services for the Partnership or on its behalf and expenses allocated to the General Partner by its affiliates. The General Partner is entitled to determine the expenses that are allocable to the Partnership. Tax Sharing In connection with the closing of the Viper Offering, the Partnership entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which the Partnership agreed to reimburse Diamondback for its share of state and local income and other taxes for which the Partnership’s results are included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on June 23, 2014. The amount of any such reimbursement is limited to the tax the Partnership would have paid had it not been included in a combined group with Diamondback. Diamondback may use its tax attributes to cause its combined or consolidated group, of which the Partnership may be a member for this purpose, to owe less or no tax. In such a situation, the Partnership agreed to reimburse Diamondback for the tax the Partnership would have owed had the tax attributes not been available or used for the Partnership’s benefit, even though Diamondback had no cash tax expense for that period. Other Agreements See Note 11 —Related Party Transactions for information regarding the advisory services agreement the Partnership and the General Partner entered into with Wexford Capital LP (“Wexford”). The Partnership has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 8 —Debt for a description of this credit facility. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment includes the following: March 31, December 31, 2017 2016 (in thousands) Oil and natural gas properties: Subject to depletion $ 3,978,882 $ 3,429,742 Not subject to depletion 3,892,109 1,730,519 Gross oil and natural gas properties 7,870,991 5,160,261 Accumulated depletion (747,033 ) (687,685 ) Accumulated impairment (1,143,498 ) (1,143,498 ) Oil and natural gas properties, net 5,980,460 3,329,078 Midstream assets 56,833 8,362 Other property and equipment 70,170 58,290 Accumulated depreciation (4,366 ) (4,873 ) Property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 6,103,097 $ 3,390,857 Balance of acquisition costs not subject to depletion Incurred in 2017 $ 2,184,601 Incurred in 2016 $ 788,662 Incurred in 2015 $ 374,937 Incurred in 2014 $ 442,159 Incurred in 2013 $ 47,174 Incurred in 2012 $ 54,576 The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain internal costs, are capitalized and amortized on a composite unit of production method based on proved oil, natural gas liquids and natural gas reserves. Internal costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. Costs, including related employee costs, associated with production and operation of the properties are charged to expense as incurred. All other internal costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized internal costs were approximately $5.1 million and $5.0 million for the three months ended March 31, 2017 and 2016 , respectively. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The inclusion of the Company’s unevaluated costs into the amortization base is expected to be completed within three to five years. Acquisition costs not currently being amortized are primarily related to unproved acreage that the Company plans to prove up through drilling. The Company has no plans to let any acreage expire. Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, natural gas liquids and natural gas. Under this method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the proved oil and gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing 12-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions or financial derivatives, if any, that hedge the Company’s oil and natural gas revenue, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded on the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash writedown is required. As a result of the decline in prices, the Company recorded a non-cash impairment for the three months ended March 31, 2016 of $30.8 million , which is included in accumulated depletion, depreciation, amortization and impairment. The Company did no t record an impairment for the three months ended March 31, 2017 . The impairment charge affected the Company’s reported net income but did not reduce its cash flow. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. At March 31, 2017 , there was $16.8 million in exploration costs and development costs and $2.2 million in capitalized interest that are not subject to depletion. At December 31, 2016 , there were no exploration costs, development costs or capitalized interest that are not subject to depletion. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS The following table describes the changes to the Company’s asset retirement obligation liability for the following periods: Three Months Ended March 31, 2017 2016 (in thousands) Asset retirement obligations, beginning of period $ 17,422 $ 12,711 Additional liabilities incurred 741 132 Liabilities acquired 2,129 796 Liabilities settled (102 ) (344 ) Accretion expense 323 246 Revisions in estimated liabilities (2 ) 88 Asset retirement obligations, end of period 20,511 13,629 Less current portion 1,572 67 Asset retirement obligations - long-term $ 18,939 $ 13,562 The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS In October 2014, the Company paid $0.6 million for a 25% interest in HMW Fluid Management LLC, which was formed to develop, own and operate an integrated water management system to gather, store, process, treat, distribute and dispose of water to exploration and production companies operating in Midland, Martin and Andrews Counties, Texas. The board of this entity may also authorize the entity to offer these services to other counties in the Permian Basin and to pursue other business opportunities. During the three months ended March 31, 2017 and 2016 , the Company invested $0.2 million and $0.8 million , respectively, in this entity bringing its total investment to $6.5 million and $4.1 million at March 31, 2017 and 2016 , respectively. The Company will retain a minority interest after all commitments are received. The entity was formed as a limited liability company and maintains a specific ownership account for each investor, similar to a partnership capital account structure. Therefore, the Company accounts for this investment under the equity method of accounting. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2017 2016 (in thousands) 4.750 % Senior Notes due 2024 $ 500,000 $ 500,000 5.375 % Senior Notes due 2025 500,000 500,000 Unamortized debt issuance costs (14,214 ) (14,588 ) Partnership revolving credit facility — 120,500 Total long-term debt $ 985,786 $ 1,105,912 2024 Senior Notes On October 28, 2016, the Company issued $500.0 million in aggregate principal amount of 4.750% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes bear interest at a rate of 4.750% per annum, payable semi-annually, in arrears on May 1 and November 1 of each year, commencing on May 1, 2017 and will mature on November 1, 2024. All of the Company’s existing and future restricted subsidiaries that guarantee its revolving credit facility or certain other debt guarantee the 2024 Senior Notes; provided, however, that the 2024 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. The 2024 Senior Notes were issued under, and are governed by, an indenture among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented (the “2024 Indenture”). The 2024 Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit the Company’s ability and the ability of the restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments, declare or pay dividends or make other distributions on capital stock, prepay subordinated indebtedness, sell assets including capital stock of restricted subsidiaries, agree to payment restrictions affecting the Company’s restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens, engage in business other than the oil and gas business and designate certain of the Company’s subsidiaries as unrestricted subsidiaries. The Company may on any one or more occasions redeem some or all of the 2024 Senior Notes at any time on or after November 1, 2019 at the redemption prices (expressed as percentages of principal amount) of 103.563% for the 12-month period beginning on November 1, 2019, 102.375% for the 12-month period beginning on November 1, 2020, 101.188% for the 12-month period beginning on November 1, 2021 and 100.000% beginning on November 1, 2022 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. Prior to November 1, 2019, the Company may on any one or more occasions redeem all or a portion of the 2024 Senior Notes at a price equal to 100% of the principal amount of the 2024 Senior Notes plus a “make-whole” premium and accrued and unpaid interest to the redemption date. In addition, any time prior to November 1, 2019, the Company may on any one or more occasions redeem the 2024 Senior Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 2024 Senior Notes issued prior to such date at a redemption price of 104.750% , plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from certain equity offerings. In connection with the issuance of the 2024 Senior Notes, the Company and the subsidiary guarantors entered into a registration rights agreement (the “2024 Registration Rights Agreement”) with the initial purchasers on October 28, 2016, pursuant to which the Company agreed to file a registration statement with respect to an offer to exchange the 2024 Senior Notes for a new issue of substantially identical debt securities registered under the Securities Act. Under the 2024 Registration Rights Agreement, the Company also agreed to use its commercially reasonable efforts to have the registration statement declared effective by the SEC on or prior to the 360th day after the issue date of the 2024 Senior Notes and to keep the exchange offer open for not less than 30 days (or longer if required by applicable law). The Company may be required to file a shelf registration statement to cover resales of the 2024 Senior Notes under certain circumstances. If the Company fails to satisfy these obligations under the 2024 Registration Rights Agreement, it agreed to pay additional interest to the holders of the 2024 Senior Notes as specified in the 2024 Registration Rights Agreement. 2025 Senior Notes On December 20, 2016, the Company issued $500.0 million in aggregate principal amount of 5.375% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes bear interest at a rate of 5.375% per annum, payable semi-annually, in arrears on May 31 and November 30 of each year, commencing on May 31, 2017 and will mature on May 31, 2025. All of the Company’s existing and future restricted subsidiaries that guarantee its revolving credit facility or certain other debt guarantee the 2025 Senior Notes, provided, however, that the 2025 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. The 2025 Senior Notes were issued under an indenture, dated as of December 20, 2016, among the Company, the guarantors party thereto and Wells Fargo Bank, as the trustee (the “2025 Indenture”). The 2025 Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit the Company’s ability and the ability of the restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments, declare or pay dividends or make other distributions on capital stock, prepay subordinated indebtedness, sell assets including capital stock of restricted subsidiaries, agree to payment restrictions affecting the Company’s restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens, engage in business other than the oil and gas business and designate certain of the Company’s subsidiaries as unrestricted subsidiaries. The Company may on any one or more occasions redeem some or all of the 2025 Senior Notes at any time on or after May 31, 2020 at the redemption prices (expressed as percentages of principal amount) of 104.031% for the 12-month period beginning on May 31, 2020, 102.688% for the 12-month period beginning on May 31, 2021, 101.344% for the 12-month period beginning on May 31, 2022 and 100.000% beginning on May 31, 2023 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. Prior to May 31, 2020, the Company may on any one or more occasions redeem all or a portion of the 2025 Senior Notes at a price equal to 100% of the principal amount of the 2025 Senior Notes plus a “make-whole” premium and accrued and unpaid interest to the redemption date. In addition, any time prior to May 31, 2020, the Company may on any one or more occasions redeem the 2025 Senior Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 2025 Senior Notes issued prior to such date at a redemption price of 105.375% , plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from certain equity offerings. In connection with the issuance of the 2025 Senior Notes, the Company and the subsidiary guarantors entered into a registration rights agreement (the “2025 Registration Rights Agreement”) with the initial purchasers on December 20, 2016, pursuant to which the Company agreed to file a registration statement with respect to an offer to exchange the 2025 Senior Notes for a new issue of substantially identical debt securities registered under the Securities Act. Under the 2025 Registration Rights Agreement, the Company also agreed to use its commercially reasonable efforts to have the registration statement declared effective by the SEC on or prior to the 360th day after the issue date of the 2025 Senior Notes and to keep the exchange offer open for not less than 30 days (or longer if required by applicable law). The Company may be required to file a shelf registration statement to cover resales of the 2025 Senior Notes under certain circumstances. If the Company fails to satisfy these obligations under the 2025 Registration Rights Agreement, it agreed to pay additional interest to the holders of the 2025 Senior Notes as specified in the 2025 Registration Rights Agreement. On April 26, 2017, the Company filed with the SEC its Registration Statement on Form S-4 relating to the exchange offers of the 2024 Senior Notes and the 2025 Senior Notes for substantially identical debt securities registered under the Securities Act. The Company’s Credit Facility On June 9, 2014, Diamondback O&G LLC, as borrower, entered into a first amendment and on November 13, 2014, Diamondback O&G LLC entered into a second amendment to the second amended and restated credit agreement, dated November 1, 2013 (the “credit agreement”). The first amendment modified certain provisions of the credit agreement to, among other things, allow one or more of the Company’s subsidiaries to be designated as “Unrestricted Subsidiaries” that are not subject to certain restrictions contained in the credit agreement. In connection with the Viper Offering, the Partnership, the General Partner and Viper Energy Partners LLC were designated as unrestricted subsidiaries under the credit agreement. As of March 31, 2017 , the credit agreement was guaranteed by Diamondback, Diamondback E&P LLC and Rattler Midstream LLC and will also be guaranteed by any future restricted subsidiaries of Diamondback. The credit agreement is also secured by substantially all of the assets of Diamondback O&G LLC, the Company and the other guarantors. The second amendment increased the maximum amount of the credit facility to $2.0 billion , modified the dates and deadlines of the credit agreement relating to the scheduled borrowing base redeterminations based on the Company’s oil and natural gas reserves and other factors and added new provisions that allow the Company to elect a commitment amount that is less than its borrowing base as determined by the lenders. The borrowing base is scheduled to be re-determined semi-annually with effective dates of May 1st and November 1st. In addition, the Company may request up to three additional redeterminations of the borrowing base during any 12 -month period. As of March 31, 2017 , the borrowing base was set at $1.0 billion , of which the Company had elected a commitment amount of $500.0 million , and the Company had no outstanding borrowings. The outstanding borrowings under the credit agreement bear interest at a rate elected by the Company that is equal to an alternative base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5% and 3-month LIBOR plus 1.0% ) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.50% to 1.50% in the case of the alternative base rate and from 1.50% to 2.50% in the case of LIBOR, in each case depending on the amount of the loan outstanding in relation to the borrowing base. The Company is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the borrowing base, which fee is also dependent on the amount of the loan outstanding in relation to the borrowing base. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (a) to the extent that the loan amount exceeds the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (b) in an amount equal to the net cash proceeds from the sale of property when a borrowing base deficiency or event of default exists under the credit agreement and (c) at the maturity date of November 1, 2018. The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below. Financial Covenant Required Ratio Ratio of total debt to EBITDAX Not greater than 4.0 to 1.0 Ratio of current assets to liabilities, as defined in the credit agreement Not less than 1.0 to 1.0 The covenant prohibiting additional indebtedness, as amended in December 2016, allows for the issuance of unsecured debt of up to $1.0 billion in the form of senior or senior subordinated notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. As of March 31, 2017 , the Company had $1.0 billion in aggregate principal amount of senior unsecured notes outstanding. As of March 31, 2017 and December 31, 2016 , the Company was in compliance with all financial covenants under its revolving credit facility, as then in effect. The lenders may accelerate all of the indebtedness under the Company’s revolving credit facility upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. The Partnership’s Credit Agreement The Partnership entered into a $500.0 million secured revolving credit agreement, dated as of July 8, 2014, as amended, with Wells Fargo, as the administrative agent, sole book runner and lead arranger, and certain other lenders party thereto. The borrowing base is scheduled to be re-determined semi-annually with effective dates of April 1st and October 1st. In addition, the Partnership may request up to three additional redeterminations of the borrowing base during any 12 -month period. As of March 31, 2017 , the borrowing base was set at $275.0 million and the Partnership had no outstanding borrowings under the credit agreement. The outstanding borrowings under the credit agreement bear interest at a rate elected by the Partnership that is equal to an alternative base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5% and 3-month LIBOR plus 1.0% ) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 1.0% to 2.00% in the case of the alternative base rate and from 2.00% to 3.00% in the case of LIBOR, in each case depending on the amount of the loan outstanding in relation to the borrowing base. The Partnership is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the borrowing base, which fee is also dependent on the amount of the loan outstanding in relation to the borrowing base. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (a) to the extent that the loan amount exceeds the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period) and (b) at the maturity date of July 8, 2019. The loan is secured by substantially all of the assets of the Partnership and its subsidiaries. The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, purchases of margin stock, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below. Financial Covenant Required Ratio Ratio of total debt to EBITDAX Not greater than 4.0 to 1.0 Ratio of current assets to liabilities, as defined in the credit agreement Not less than 1.0 to 1.0 The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $250.0 million in the form of senior unsecured notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. The lenders may accelerate all of the indebtedness under the Partnership’s credit agreement upon the occurrence and during the continuance of any event of default. The Partnership’s credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE In January 2016, the Company completed an underwritten public offering of 4,600,000 shares of common stock, which included 600,000 shares of common stock issued pursuant to an option to purchase additional shares granted to the underwriter. The stock was sold to the underwriter at $55.33 per share and the Company received proceeds of approximately $254.5 million from the sale of these shares of common stock, net of offering expenses and underwriting discounts and commissions. Diamondback completed no other equity offerings during the three months ended March 31, 2017 and 2016 . Partnership Equity Offering In January 2017, the Partnership completed an underwritten public offering of 9,775,000 common units, which included 1,275,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. The Partnership received net proceeds from this offering of approximately $147.6 million , after deducting underwriting discounts and commissions and estimated offering expenses, of which Partnership used $120.5 million to repay the outstanding borrowings under its revolving credit agreement and intends to use the remaining net proceeds for general partnership purposes, which may include additional acquisitions. Earnings Per Share The Company’s basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share include the effect of potentially dilutive shares outstanding for the period. Additionally, for the diluted earnings per share computation, the per share earnings of the Partnership are included in the consolidated earnings per share computation based on the consolidated group’s holdings of the subsidiary. A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2017 2016 Net income (loss) attributable to common stock $ 136,273 $ (32,912 ) Weighted average common shares outstanding Basic weighted average common units outstanding 93,161 71,026 Effect of dilutive securities: Potential common shares issuable 203 — Diluted weighted average common shares outstanding 93,364 71,026 Basic net income (loss) attributable to common stock $ 1.46 $ (0.46 ) Diluted net income (loss) attributable to common stock $ 1.46 $ (0.46 ) For the three months ended March 31, 2017 and 2016 , there were 14 shares and 194,737 shares, respectively, that were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented. These shares could dilute basic earnings per share in future periods. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Based Compensation | EQUITY-BASED COMPENSATION The following table presents the effects of the equity compensation plans and related costs: Three Months Ended March 31, 2017 2016 General and administrative expenses $ 7,063 $ 8,350 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties 2,343 2,764 Stock Options The following table presents the Company’s stock option activity under the Company’s 2012 Equity Incentive Plan (“2012 Plan”) for the three months ended March 31, 2017 . Weighted Average Exercise Remaining Intrinsic Options Price Term Value (in years) (in thousands) Outstanding at December 31, 2016 15,750 $ 22.72 Exercised (15,750 ) $ 22.72 Outstanding at March 31, 2017 — $ — 0.00 $ — The aggregate intrinsic value of stock options that were exercised during the three months ended March 31, 2017 and 2016 was $1.2 million and $0.9 million , respectively. Restricted Stock Units The following table presents the Company’s restricted stock units activity under the 2012 Plan during the three months ended March 31, 2017 . Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2016 206,004 $ 70.33 Granted 82,220 $ 108.56 Vested (109,528 ) $ 75.44 Forfeited (69 ) $ 91.59 Unvested at March 31, 2017 178,627 $ 84.78 The aggregate fair value of restricted stock units that vested during the three months ended March 31, 2017 and 2016 was $11.3 million and $8.2 million , respectively. As of March 31, 2017 , the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $12.4 million . Such cost is expected to be recognized over a weighted-average period of 1.6 years. Performance Based Restricted Stock Units To provide long-term incentives for the executive officers to deliver competitive returns to the Company’s stockholders, the Company has granted performance-based restricted stock units to eligible employees. The ultimate number of shares awarded from these conditional restricted stock units is based upon measurement of total stockholder return of the Company’s common stock (“TSR”) as compared to a designated peer group during a two -year or three -year performance period. In February 2017, eligible employees received performance restricted stock unit awards totaling 37,440 units from which a minimum of 0% and a maximum of 200% units could be awarded. The awards have a performance period of January 1, 2017 to December 31, 2018 and cliff vest at December 31, 2018. Eligible employees received additional performance restricted stock unit awards totaling 74,880 units from which a minimum of 0% and a maximum of 200% units could be awarded. The awards have a performance period of January 1, 2017 to December 31, 2019 and cliff vest at December 31, 2019. The fair value of each performance restricted stock unit is estimated at the date of grant using a Monte Carlo simulation, which results in an expected percentage of units to be earned during the performance period. The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the February 2017 awards. 2017 Two-Year Performance Period Three-Year Performance Period Grant-date fair value $ 162.13 $ 168.73 Risk-free rate 1.27 % 1.59 % Company volatility 39.32 % 41.14 % The following table presents the Company’s performance restricted stock units activity under the 2012 Plan for the three months ended March 31, 2017 . Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2015 252,471 $ 103.06 Granted 118,169 $ 166.53 Unvested at March 31, 2017 (1) 370,640 $ 123.29 (1) A maximum of 741,280 units could be awarded based upon the Company’s final TSR ranking. As of March 31, 2017 , the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $30.6 million . Such cost is expected to be recognized over a weighted-average period of 1.9 years. Phantom Units Under the Viper LTIP, the Board of Directors of the General Partner is authorized to issue phantom units to eligible employees. The Partnership estimates the fair value of phantom units as the closing price of the Partnership’s common units on the grant date of the award, which is expensed over the applicable vesting period. Upon vesting the phantom units entitle the recipient one common unit of the Partnership for each phantom unit. The following table presents the phantom unit activity under the Viper LTIP for the three months ended March 31, 2017 . Phantom Units Weighted Average Grant-Date Unvested at December 31, 2016 21,048 $ 16.23 Granted 3,126 $ 17.49 Unvested at March 31, 2017 24,174 $ 16.39 As of March 31, 2017 , the unrecognized compensation cost related to unvested phantom units was $0.2 million . Such cost is expected to be recognized over a weighted-average period of 1.4 years. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Immediately upon the completion of the Company’s initial public offering on October 17, 2012, Wexford beneficially owned approximately 44% of the Company’s outstanding common stock. As of December 31, 2016, Wexford beneficially owned less than 1% of the Company’s outstanding common stock. The Chairman of the Board of Directors of both the Company and the General Partner was a partner at Wexford until his retirement from Wexford effective December 31, 2016. Another partner at Wexford serves as a member of the Board of Directors of the General Partner. Beginning January 1, 2017, Wexford and entities affiliated with Wexford are no longer considered related parties of the Company and any expenses after December 31, 2016 are no longer classified as related party expenses. Related Party Revenue and Expenses During the three months ended March 31, 2016 , the Company paid $0.3 million in lease operating expenses and $0.4 million in general and administrative expenses to related parties. During the three months ended March 31, 2016 , the Company received less than $0.1 million in other income from related parties. Advisory Services Agreement - The Company The Company entered into an advisory services agreement (the “Advisory Services Agreement”) with Wexford, dated as of October 11, 2012, under which Wexford provides the Company with general financial and strategic advisory services related to the business in return for an annual fee of $0.5 million , plus reasonable out-of-pocket expenses. The Advisory Services Agreement had an initial term of two years commencing on October 18, 2012, and continues for additional one -year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. The Company incurred total costs of $0.1 million during the three months ended March 31, 2016 under the Advisory Services Agreement. Advisory Services Agreement - The Partnership In connection with the closing of the Viper Offering, the Partnership and the General Partner entered into an advisory services agreement (the “Viper Advisory Services Agreement”) with Wexford, dated as of June 23, 2014, under which Wexford provides the Partnership and the General Partner with general financial and strategic advisory services related to the business in return for an annual fee of $0.5 million , plus reasonable out-of-pocket expenses. The Viper Advisory Services Agreement has an initial term of two years commencing on June 23, 2014, and will continue for additional one -year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. The Partnership did no t incur any costs during the three months ended March 31, 2017 or March 31, 2016 under the Viper Advisory Services Agreement. Midland Corporate Lease Effective May 15, 2011, the Company occupied corporate office space in Midland, Texas under a lease with an initial five -year term, which was extended for an additional ten -years in November 2014. The office space is owned by Fasken, which is controlled by an affiliate of Wexford. The Company paid rent of $0.3 million for the three months ended March 31, 2016 . Field Office Lease The Company leased field office space in Midland, Texas from an unrelated third party commencing on March 1, 2011. On March 1, 2014, the building was purchased by WT Commercial Portfolio, LLC, which is controlled by an affiliate of Wexford. The term of the lease expires on February 28, 2018. During the third quarter of 2014, the Company entered into a sublease with Bison, in which Bison leased the field office space on the same terms as the Company’s lease for the remainder of the lease term. The Company paid rent of less than $0.1 million during the three months ended March 31, 2016 . The Company received payments of less than $0.1 million from Bison in respect of this sublease during the three months ended March 31, 2016 . The Partnership - Lease Bonus During the three months ended March 31, 2017 , the Company paid the Partnership $1,500 in lease bonus payments to extend the term of one lease, reflecting an average bonus of $400 per acre. During the three months ended March 31, 2016 , the Company paid the Partnership $0.1 million in lease bonus payments to extend the term of one lease, reflecting an average bonus of $2,500 per acre. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | The Company’s effective income tax rates were 1.4% and 0.0% for the three months ended March 31, 2017 and 2016 , respectively. Total income tax expense for the three months ended March 31, 2017 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to current and deferred state income taxes and the change in valuation allowance that offsets the Company’s federal net deferred tax asset position. The Company incurs state income tax obligations in Texas, the primary state in which it operates, pursuant to the Texas margin tax. Any positive net taxable income generated by the Company for federal income tax purposes for the three months ended March 31, 2017 is expected to be offset by federal net operating loss (“NOL”) carryforwards, for which a full valuation allowance has been provided. During the three months ended March 31, 2017 , the Company reduced its valuation allowance against its federal NOL by $27.4 million , bringing the total valuation allowance to $87.0 million . The valuation allowance reduces the Company’s deferred assets to a zero value, as management does not believe that it is more-likely-than-not that this portion of the Company's NOLs are realizable. Management believes that the balance of the Company's NOLs are realizable only to the extent of future taxable income primarily related to the excess of book carrying value of properties over their respective tax bases. No other sources of future taxable income are considered in this judgment. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the combined consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.” The Company has used fixed price swap contracts, fixed price basis swap contracts and costless collars with corresponding put and call options to reduce price volatility associated with certain of its oil and natural gas sales. With respect to the Company’s fixed price swap contracts and fixed price basis swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap or basis price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap or basis price. The Company has fixed price basis swaps for the spread between the WTI Midland price and the WTI Cushing price. Under the Company’s costless collar contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the put option price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the call option price. If the settlement price is between the put and the call price, there is no payment required. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. By using derivative instruments to hedge exposure to changes in commodity prices, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company’s counterparties are participants in the secured second amended and restated credit agreement, which is secured by substantially all of the assets of the guarantor subsidiaries; therefore, the Company is not required to post any collateral. The Company does not require collateral from its counterparties. The Company has entered into derivative instruments only with counterparties that are also lenders in our credit facility and have been deemed an acceptable credit risk. As of March 31, 2017 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2017 2018 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps 3,302,000 $ 53.13 904,000 $ 54.96 Oil Basis Swaps 6,600,000 $ (0.72 ) 5,475,000 $ (0.88 ) Natural Gas Swaps 5,500,000 $ 3.16 1,350,000 $ 3.60 Floor Ceiling Volume Fixed Price (per Bbl) Volume Fixed Price (per Bbl) January 2017 - December 2017 Costless Collars 4,402,000 $ 46.69 2,201,000 $ 56.03 January 2018 - March 2018 Costless Collars 540,000 $ 47.00 270,000 $ 56.34 Balance sheet offsetting of derivative assets and liabilities The fair value of swaps is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions that are with the same counterparty and are subject to contractual terms which provide for net settlement. The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties and the resulting net amounts presented in the Company’s consolidated balance sheets as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 (in thousands) Gross amounts of assets presented in the Consolidated Balance Sheet $ 17,476 $ 709 Net amounts of assets presented in the Consolidated Balance Sheet 17,476 709 Gross amounts of liabilities presented in the Consolidated Balance Sheet — 22,608 Net amounts of liabilities presented in the Consolidated Balance Sheet $ — $ 22,608 The net amounts are classified as current or noncurrent based on their anticipated settlement dates. The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: March 31, 2017 December 31, 2016 (in thousands) Current assets: derivative instruments $ 14,374 $ — Noncurrent assets: derivative instruments 3,102 709 Total assets $ 17,476 $ 709 Current liabilities: derivative instruments $ — $ 22,608 Total liabilities $ — $ 22,608 None of the Company’s derivatives have been designated as hedges. As such, all changes in fair value are immediately recognized in earnings. The following table summarizes the gains and losses on derivative instruments included in the combined consolidated statements of operations: Three Months Ended March 31, 2017 2016 (in thousands) Change in fair value of open non-hedge derivative instruments $ 39,375 $ (3,691 ) Gain (loss) on settlement of non-hedge derivative instruments (1,674 ) 5,117 Gain on derivative instruments $ 37,701 $ 1,426 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis, including the Company’s derivative instruments. The fair values of the Company’s fixed price swaps, fixed price basis swaps and costless collars are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs. The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 (in thousands) Fixed price swaps: Quoted prices in active markets level 1 $ — $ — Significant other observable inputs level 2 17,476 23,317 Significant unobservable inputs level 3 — — Total $ 17,476 $ 23,317 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated balance sheets. March 31, 2017 December 31, 2016 Carrying Carrying Amount Fair Value Amount Fair Value (in thousands) Debt: Revolving credit facility $ — $ — $ — $ — 4.750% Senior Notes due 2024 500,000 504,200 500,000 491,250 5.375% Senior Notes due 2025 500,000 516,250 500,000 502,850 Partnership revolving credit facility — — 120,500 120,500 The fair value of the revolving credit facility approximates its carrying value based on borrowing rates available to the Company for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Senior Notes was determined using the March 31, 2017 quoted market price, a Level 1 classification in the fair value hierarchy. The fair value of the Partnership’s revolving credit facility approximates its carrying value based on borrowing rates available to us for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Commodity Contracts Subsequent to March 31, 2017 , the Company entered into new fixed price swaps. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. The following tables present the derivative contracts entered into by the Company subsequent to March 31, 2017 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) May 2017 - December 2017 Oil Swaps 184,000 $ 53.99 Natural Gas Swaps 2,450,000 $ 3.42 January 2018 - December 2018 Oil Swaps 1,825,000 $ 53.44 Natural Gas Swaps 3,650,000 $ 3.07 The Company’s Credit Facility In connection with the Company’s spring 2017 redetermination, the agent lender under the credit agreement has recommended that the Company’s borrowing base be increased to $1.5 billion . This increase is subject to the approval of the required other lenders. Regardless of such adjustment, the Company has elected to increase the lenders’ aggregate commitment to $750.0 million from $500.0 million at March 31, 2017 . The Partnership’s Credit Facility In connection with the Partnership’s spring 2017 redetermination, the agent lender under the credit agreement has recommended that the Partnership’s borrowing base be increased to $315.0 million . This increase is subject to the approval of the required other lenders. |
Guarantor Financial Statements
Guarantor Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Financial Statements | GUARANTOR FINANCIAL STATEMENTS As of March 31, 2017 , Diamondback E&P LLC and Diamondback O&G LLC (the “Guarantor Subsidiaries”) are guarantors under the Indentures relating to the 2024 Senior Notes and the 2025 Senior Notes. In connection with the issuance of the 2024 Senior Notes and the 2025 Senior Notes, the Partnership, the General Partner, Viper Energy Partners LLC and Rattler Midstream LLC were designated as Non-Guarantor Subsidiaries. The following presents condensed consolidated financial information for the Company (which for purposes of this Note 17 is referred to as the “Parent”), the Guarantor Subsidiaries and the Non–Guarantor Subsidiaries on a consolidated basis. Elimination entries presented are necessary to combine the entities. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantor Subsidiaries because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantor Subsidiaries. Condensed Consolidated Balance Sheet March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 911 $ 7,966 $ 28,563 $ — $ 37,440 Accounts receivable — 130,161 9,217 — 139,378 Accounts receivable - related party — 98 6,951 (6,951 ) 98 Intercompany receivable 3,140,469 593,099 — (3,733,568 ) — Inventories — 3,027 — — 3,027 Other current assets 413 18,210 208 — 18,831 Total current assets 3,141,793 752,561 44,939 (3,740,519 ) 198,774 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 7,102,157 769,393 (559 ) 7,870,991 Midstream assets — 56,833 — — 56,833 Other property and equipment — 70,170 — — 70,170 Accumulated depletion, depreciation, amortization and impairment — (1,746,886 ) (156,795 ) 8,784 (1,894,897 ) Net property and equipment — 5,482,274 612,598 8,225 6,103,097 Funds held in escrow — 2,051 — — 2,051 Derivative instruments — 3,102 — — 3,102 Investment in subsidiaries 2,564,063 — — (2,564,063 ) — Deferred income taxes 123 — — — 123 Other assets — 27,500 35,053 — 62,553 Total assets $ 5,705,979 $ 6,267,488 $ 692,590 $ (6,296,357 ) $ 6,369,700 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 19,658 $ 31 $ — $ 19,689 Intercompany payable 48,003 3,692,516 — (3,740,519 ) — Other current liabilities 18,775 204,764 841 — 224,380 Total current liabilities 66,778 3,916,938 872 (3,740,519 ) 244,069 Long-term debt 985,786 — — — 985,786 Asset retirement obligations — 18,939 — — 18,939 Deferred income taxes 1,548 — — — 1,548 Total liabilities 1,054,112 3,935,877 872 (3,740,519 ) 1,250,342 Commitments and contingencies Stockholders’ equity 4,651,867 2,331,611 691,718 (3,023,329 ) 4,651,867 Non-controlling interest — — — 467,491 467,491 Total equity 4,651,867 2,331,611 691,718 (2,555,838 ) 5,119,358 Total liabilities and equity $ 5,705,979 $ 6,267,488 $ 692,590 $ (6,296,357 ) $ 6,369,700 Condensed Consolidated Balance Sheet December 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 1,643,226 $ 14,135 $ 9,213 $ — $ 1,666,574 Restricted cash — — 500 — 500 Accounts receivable — 109,782 10,043 — 119,825 Accounts receivable - related party — 297 3,470 (3,470 ) 297 Intercompany receivable 3,060,566 359,502 — (3,420,068 ) — Inventories — 1,983 — — 1,983 Other current assets 481 2,319 187 — 2,987 Total current assets 4,704,273 488,018 23,413 (3,423,538 ) 1,792,166 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 4,400,002 760,818 (559 ) 5,160,261 Midstream assets — 8,362 — — 8,362 Other property and equipment — 58,290 — — 58,290 Accumulated depletion, depreciation, amortization and impairment — (1,695,701 ) (148,948 ) 8,593 (1,836,056 ) Net property and equipment — 2,770,953 611,870 8,034 3,390,857 Funds held in escrow — 121,391 — — 121,391 Derivative instruments — 709 — — 709 Investment in subsidiaries (15,500 ) — — 15,500 — Other assets — 9,291 35,266 — 44,557 Total assets $ 4,688,773 $ 3,390,362 $ 670,549 $ (3,400,004 ) $ 5,349,680 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ 30 $ 45,838 $ 1,780 $ — $ 47,648 Accounts payable-related party 1 — — — 1 Intercompany payable — 3,423,538 — (3,423,538 ) — Other current liabilities 5,868 155,454 371 — 161,693 Total current liabilities 5,899 3,624,830 2,151 (3,423,538 ) 209,342 Long-term debt 985,412 — 120,500 — 1,105,912 Asset retirement obligations — 16,134 — — 16,134 Total liabilities 991,311 3,640,964 122,651 (3,423,538 ) 1,331,388 Commitments and contingencies Stockholders’ equity 3,697,462 (250,602 ) 547,898 (297,296 ) 3,697,462 Non-controlling interest — — — 320,830 320,830 Total equity 3,697,462 (250,602 ) 547,898 23,534 4,018,292 Total liabilities and equity $ 4,688,773 $ 3,390,362 $ 670,549 $ (3,400,004 ) $ 5,349,680 Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 178,230 $ — $ 28,844 $ 207,074 Natural gas sales — 8,575 — 1,347 9,922 Natural gas liquid sales — 13,643 — 1,859 15,502 Royalty income — — 32,050 (32,050 ) — Lease bonus income — — 1,602 — 1,602 Midstream services — 1,130 — — 1,130 Total revenues — 201,578 33,652 — 235,230 Costs and expenses: Lease operating expenses — 26,626 — — 26,626 Production and ad valorem taxes — 13,655 2,070 — 15,725 Gathering and transportation — 2,476 143 — 2,619 Midstream services — 854 — — 854 Depreciation, depletion and amortization — 50,891 7,847 191 58,929 General and administrative expenses 7,108 5,109 2,142 (615 ) 13,744 Asset retirement obligation accretion — 323 — — 323 Total costs and expenses 7,108 99,934 12,202 (424 ) 118,820 Income (loss) from operations (7,108 ) 101,644 21,450 424 116,410 Other income (expense) Interest expense (10,808 ) (805 ) (612 ) — (12,225 ) Other income 1,092 854 (186 ) (615 ) 1,145 Gain on derivative instruments, net — 37,701 — — 37,701 Total other expense, net (9,716 ) 37,750 (798 ) (615 ) 26,621 Income (loss) before income taxes (16,824 ) 139,394 20,652 (191 ) 143,031 Provision for income taxes 1,957 — — — 1,957 Net income (loss) (18,781 ) 139,394 20,652 (191 ) 141,074 Net income attributable to non-controlling interest — — — 4,801 4,801 Net income (loss) attributable to Diamondback Energy, Inc. $ (18,781 ) $ 139,394 $ 20,652 $ (4,992 ) $ 136,273 Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 66,095 $ — $ 12,925 $ 79,020 Natural gas sales — 3,409 — 613 4,022 Natural gas liquid sales — 3,891 — 548 4,439 Royalty income — — 14,086 (14,086 ) — Lease bonus income — — 108 (108 ) — Total revenues — 73,395 14,194 (108 ) 87,481 Costs and expenses: Lease operating expenses — 18,223 — — 18,223 Production and ad valorem taxes — 6,660 1,302 — 7,962 Gathering and transportation — 2,701 86 2 2,789 Depreciation, depletion and amortization — 35,128 8,150 (1,209 ) 42,069 Impairment of oil and natural gas properties — 4,805 26,011 — 30,816 General and administrative expenses 8,307 2,923 1,749 — 12,979 Asset retirement obligation accretion — 246 — — 246 Total costs and expenses 8,307 70,686 37,298 (1,207 ) 115,084 Income (loss) from operations (8,307 ) 2,709 (23,104 ) 1,099 (27,603 ) Other income (expense) Interest expense (8,858 ) (725 ) (430 ) — (10,013 ) Other income 57 307 199 — 563 Gain on derivative instruments, net — 1,426 — — 1,426 Total other income (expense), net (8,801 ) 1,008 (231 ) — (8,024 ) Net income (loss) (17,108 ) 3,717 (23,335 ) 1,099 (35,627 ) Net loss attributable to non-controlling interest — — — (2,715 ) (2,715 ) Net income (loss) attributable to Diamondback Energy, Inc. $ (17,108 ) $ 3,717 $ (23,335 ) $ 3,814 $ (32,912 ) Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 40 $ 149,822 $ 26,065 $ — $ 175,927 Cash flows from investing activities: Additions to oil and natural gas properties — (116,174 ) — — (116,174 ) Acquisition of leasehold interests — (1,760,810 ) — — (1,760,810 ) Acquisition of mineral interests — — (8,579 ) — (8,579 ) Additions to midstream assets — (59 ) — — (59 ) Acquisition of midstream assets — (48,329 ) — — (48,329 ) Purchase of other property and equipment — (11,918 ) — — (11,918 ) Proceeds from sale of assets — 1,238 — — 1,238 Funds held in escrow — 119,340 — — 119,340 Equity investments — (188 ) — — (188 ) Intercompany transfers (1,660,917 ) 1,660,917 — — — Net cash used in investing activities (1,660,917 ) (155,983 ) (8,579 ) — (1,825,479 ) Cash flows from financing activities: Repayment on credit facility — — (120,500 ) — (120,500 ) Debt issuance costs (409 ) (8 ) (1 ) — (418 ) Public offering costs (79 ) — (186 ) — (265 ) Proceeds from public offerings — — 147,725 — 147,725 Distribution from subsidiary 18,692 — — (18,692 ) — Exercise of stock options 358 — — — 358 Distribution to non-controlling interest — — (25,174 ) 18,692 (6,482 ) Net cash provided by (used in) financing activities 18,562 (8 ) 1,864 — 20,418 Net increase (decrease) in cash and cash equivalents (1,642,315 ) (6,169 ) 19,350 — (1,629,134 ) Cash and cash equivalents at beginning of period 1,643,226 14,135 9,213 — 1,666,574 Cash and cash equivalents at end of period $ 911 $ 7,966 $ 28,563 $ — $ 37,440 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (526 ) $ 57,400 $ 15,886 $ — $ 72,760 Cash flows from investing activities: Additions to oil and natural gas properties — (86,333 ) — — (86,333 ) Acquisition of leasehold interests — (16,923 ) — — (16,923 ) Acquisition of mineral interests — — (2,082 ) — (2,082 ) Purchase of other property and equipment — (1,142 ) — — (1,142 ) Proceeds from sale of assets — 123 — — 123 Equity investments — (800 ) — — (800 ) Intercompany transfers (41,161 ) 41,161 — — — Net cash used in investing activities (41,161 ) (63,914 ) (2,082 ) — (107,157 ) Cash flows from financing activities: Proceeds from borrowing on credit facility — — 8,500 — 8,500 Repayment on credit facility — (11,000 ) — — (11,000 ) Debt issuance costs — (2 ) (2 ) — (4 ) Public offering costs (179 ) — — — (179 ) Proceeds from public offerings 254,518 — — — 254,518 Distribution from subsidiary 16,063 — — (16,063 ) — Exercise of stock options 372 — — — 372 Distribution to non-controlling interest — — (18,178 ) 16,063 (2,115 ) Intercompany transfers (11,000 ) 11,000 — — — Net cash provided by (used in) financing activities 259,774 (2 ) (9,680 ) — 250,092 Net increase (decrease) in cash and cash equivalents 218,087 (6,516 ) 4,124 — 215,695 Cash and cash equivalents at beginning of period 148 19,428 539 — 20,115 Cash and cash equivalents at end of period $ 218,235 $ 12,912 $ 4,663 $ — $ 235,810 |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application permitted for annual reporting period beginning after December 31, 2016. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Company is currently evaluating the impact of this standard; however, it does not believe this standard will have a material impact on the Company’s consolidated financial statements. In July 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-11, “Inventory”. This update applies to all inventory that is not measured using last-in, first-out or the retail inventory method. Under this update, an entity should measure inventory at the lower of cost and net realizable value. This standard was effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. This standard should be applied prospectively with early adoption permitted as of the beginning of an interim or annual reporting period. The Company adopted this standard prospectively effective January 1, 2017. The adoption of this standard had no impact on the Company’s financial position, results of operations or liquidity because the Company currently measures its inventory at the lower of cost or net realizable value. In November 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-17, “Income Taxes”. This update requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The standard was effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. This standard may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted this standard prospectively effective January 1, 2017. The Company will present deferred tax liabilities and assets as noncurrent. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. This update will be effective for public entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, with early adoption permitted. Entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. While this update will not have a direct impact on the Company, the Partnership will be required to mark its cost method investment to fair value with the adoption of this update. In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company believes the primary impact of adopting this standard will be the recognition of assets and liabilities on the balance sheet for current operating leases. The Company is still evaluating the impact of this standard. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-08, “Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)”. Under this update, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update will be effective for annual and interim reporting periods beginning after December 15, 2017, with early application not permitted. This update allows for either full retrospective adoption, meaning this update is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning this update is applied only to the most current period presented. The Company is currently evaluating the impact, if any, that the adoption of this update will have on the Company’s financial position, results of operations and liquidity. In March 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-09, "Compensation - Stock Compensation". This update applies to all entities that issue equity-based payment awards to their employees. Under this update, there were several areas that were simplified including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This update was effective for financial statements issued for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company prospectively adopted this standard effective January 1, 2017. The Company revised its calculation of diluted earnings per share to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. The Company also adopted a policy to account for forfeitures as they occur. In April 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-10, “Revenue from Contracts with Customers - Identifying Performance Obligations and Licensing”. This update clarifies two principles of Accounting Standards Codification Topic 606: identifying performance obligations and the licensing implementation guidance. This standard has the same effective date as Accounting Standards Update 2016-08, the revenue recognition standard discussed above. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations and liquidity. In May 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-12, “Revenue from Contracts with Customers - Narrow-Scope Improvements and Practical Expedients”. This update applies only to the following areas from Accounting Standards Codification Topic 606: assessing the collectability criterion and accounting for contracts that do not meet the criteria for step 1, presentation of sales taxes and other similar taxes collected from customers, non-cash consideration, contract modification at transition, completed contracts at transition and technical correction. This standard has the same effective date as Accounting Standards Update 2016-08, the revenue recognition standard discussed above. The adoption of this standard is not expected to have a material impact on the Company's financial position, results of operations and liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not believe the adoption of this standard will have a material impact on the Company’s consolidated financial statements since the Company does not have a history of credit losses. In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments”. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years with early adoption permitted. This update should be applied using the retrospective transition method. Adoption of this standard will only affect the presentation of the Company’s cash flows and will not have a material impact on the Company’s consolidated financial statements. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This update will be effective for financial statements issued for fiscal years beginning after December 31, 2017, including interim periods within those fiscal years. This update should be applied prospectively on or after the effective date. This update is not expected to have a material impact the Company’s financial statements or results of operations. The adoption of this update will change the process that the Company uses to evaluate whether the Company has acquired a business or an asset. This update will be applied prospectively and will not have an effect on prior acquisitions. |
Fair Value Measurement | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three months March 31, 2017 and 2016 have been prepared to give effect to the February 28, 2017 acquisition as if it had occurred on January 1, 2016. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisitions occurred on January 1, 2016. The pro forma data also necessarily exclude various operation expenses related to the properties and the financial statements should not be viewed as indicative of operations in future periods. Three Months Ended March 31, 2017 2016 Revenues $ 258,159 $ 102,664 Income from operations 133,162 (24,003 ) Net income 150,615 (29,312 ) Basic earnings per common share 1.62 (0.41 ) Diluted earnings per common share 1.61 (0.41 ) |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following represents the preliminary estimated fair value of the assets and liabilities assumed on the acquisition date. The aggregate consideration transferred was $2.6 billion , subject to post-closing adjustments, resulting in no goodwill or bargain purchase gain. (in thousands) Proved oil and natural gas properties $ 387,571 Unevaluated oil and natural gas properties 2,122,415 Midstream assets 47,554 Prepaid capital costs 3,460 Oil inventory 839 Revenues payable (8,723 ) Asset retirement obligation (1,550 ) Total fair value of net assets $ 2,551,566 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment includes the following: March 31, December 31, 2017 2016 (in thousands) Oil and natural gas properties: Subject to depletion $ 3,978,882 $ 3,429,742 Not subject to depletion 3,892,109 1,730,519 Gross oil and natural gas properties 7,870,991 5,160,261 Accumulated depletion (747,033 ) (687,685 ) Accumulated impairment (1,143,498 ) (1,143,498 ) Oil and natural gas properties, net 5,980,460 3,329,078 Midstream assets 56,833 8,362 Other property and equipment 70,170 58,290 Accumulated depreciation (4,366 ) (4,873 ) Property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 6,103,097 $ 3,390,857 Balance of acquisition costs not subject to depletion Incurred in 2017 $ 2,184,601 Incurred in 2016 $ 788,662 Incurred in 2015 $ 374,937 Incurred in 2014 $ 442,159 Incurred in 2013 $ 47,174 Incurred in 2012 $ 54,576 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | The following table describes the changes to the Company’s asset retirement obligation liability for the following periods: Three Months Ended March 31, 2017 2016 (in thousands) Asset retirement obligations, beginning of period $ 17,422 $ 12,711 Additional liabilities incurred 741 132 Liabilities acquired 2,129 796 Liabilities settled (102 ) (344 ) Accretion expense 323 246 Revisions in estimated liabilities (2 ) 88 Asset retirement obligations, end of period 20,511 13,629 Less current portion 1,572 67 Asset retirement obligations - long-term $ 18,939 $ 13,562 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Line of Credit Facility [Line Items] | |
Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2017 2016 (in thousands) 4.750 % Senior Notes due 2024 $ 500,000 $ 500,000 5.375 % Senior Notes due 2025 500,000 500,000 Unamortized debt issuance costs (14,214 ) (14,588 ) Partnership revolving credit facility — 120,500 Total long-term debt $ 985,786 $ 1,105,912 |
Financial Covenants | The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below. Financial Covenant Required Ratio Ratio of total debt to EBITDAX Not greater than 4.0 to 1.0 Ratio of current assets to liabilities, as defined in the credit agreement Not less than 1.0 to 1.0 |
Partnership Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial Covenants | Financial Covenant Required Ratio Ratio of total debt to EBITDAX Not greater than 4.0 to 1.0 Ratio of current assets to liabilities, as defined in the credit agreement Not less than 1.0 to 1.0 |
Capital Stock and Earnings Pe30
Capital Stock and Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Schedule of reconciliation of basic and diluted net income per share | A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2017 2016 Net income (loss) attributable to common stock $ 136,273 $ (32,912 ) Weighted average common shares outstanding Basic weighted average common units outstanding 93,161 71,026 Effect of dilutive securities: Potential common shares issuable 203 — Diluted weighted average common shares outstanding 93,364 71,026 Basic net income (loss) attributable to common stock $ 1.46 $ (0.46 ) Diluted net income (loss) attributable to common stock $ 1.46 $ (0.46 ) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
The effects of stock-based compensation plans and related costs | The following table presents the effects of the equity compensation plans and related costs: Three Months Ended March 31, 2017 2016 General and administrative expenses $ 7,063 $ 8,350 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties 2,343 2,764 |
Schedule of stock/unit option activity | The following table presents the Company’s stock option activity under the Company’s 2012 Equity Incentive Plan (“2012 Plan”) for the three months ended March 31, 2017 . Weighted Average Exercise Remaining Intrinsic Options Price Term Value (in years) (in thousands) Outstanding at December 31, 2016 15,750 $ 22.72 Exercised (15,750 ) $ 22.72 Outstanding at March 31, 2017 — $ — 0.00 $ — |
Summary of restricted stock units | The following table presents the Company’s restricted stock units activity under the 2012 Plan during the three months ended March 31, 2017 . Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2016 206,004 $ 70.33 Granted 82,220 $ 108.56 Vested (109,528 ) $ 75.44 Forfeited (69 ) $ 91.59 Unvested at March 31, 2017 178,627 $ 84.78 |
Summary of grant-date fair values of performance restricted stock units granted and related assumptions | The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the February 2017 awards. 2017 Two-Year Performance Period Three-Year Performance Period Grant-date fair value $ 162.13 $ 168.73 Risk-free rate 1.27 % 1.59 % Company volatility 39.32 % 41.14 % |
Schedule of performance restricted stock units activity | The following table presents the Company’s performance restricted stock units activity under the 2012 Plan for the three months ended March 31, 2017 . Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2015 252,471 $ 103.06 Granted 118,169 $ 166.53 Unvested at March 31, 2017 (1) 370,640 $ 123.29 (1) A maximum of 741,280 units could be awarded based upon the Company’s final TSR ranking. |
Viper Energy Partners LP Long Term Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table presents the phantom unit activity under the Viper LTIP for the three months ended March 31, 2017 . Phantom Units Weighted Average Grant-Date Unvested at December 31, 2016 21,048 $ 16.23 Granted 3,126 $ 17.49 Unvested at March 31, 2017 24,174 $ 16.39 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | As of March 31, 2017 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2017 2018 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps 3,302,000 $ 53.13 904,000 $ 54.96 Oil Basis Swaps 6,600,000 $ (0.72 ) 5,475,000 $ (0.88 ) Natural Gas Swaps 5,500,000 $ 3.16 1,350,000 $ 3.60 Floor Ceiling Volume Fixed Price (per Bbl) Volume Fixed Price (per Bbl) January 2017 - December 2017 Costless Collars 4,402,000 $ 46.69 2,201,000 $ 56.03 January 2018 - March 2018 Costless Collars 540,000 $ 47.00 270,000 $ 56.34 The following tables present the derivative contracts entered into by the Company subsequent to March 31, 2017 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) May 2017 - December 2017 Oil Swaps 184,000 $ 53.99 Natural Gas Swaps 2,450,000 $ 3.42 January 2018 - December 2018 Oil Swaps 1,825,000 $ 53.44 Natural Gas Swaps 3,650,000 $ 3.07 |
Schedule of netting offsets of derivative assets and liabilities | The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties and the resulting net amounts presented in the Company’s consolidated balance sheets as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 (in thousands) Gross amounts of assets presented in the Consolidated Balance Sheet $ 17,476 $ 709 Net amounts of assets presented in the Consolidated Balance Sheet 17,476 709 Gross amounts of liabilities presented in the Consolidated Balance Sheet — 22,608 Net amounts of liabilities presented in the Consolidated Balance Sheet $ — $ 22,608 |
Schedule of derivative instruments included in the consolidated balance sheet | The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows: March 31, 2017 December 31, 2016 (in thousands) Current assets: derivative instruments $ 14,374 $ — Noncurrent assets: derivative instruments 3,102 709 Total assets $ 17,476 $ 709 Current liabilities: derivative instruments $ — $ 22,608 Total liabilities $ — $ 22,608 |
Summary of derivative contract gains and losses included in the consolidated statements of operations | The following table summarizes the gains and losses on derivative instruments included in the combined consolidated statements of operations: Three Months Ended March 31, 2017 2016 (in thousands) Change in fair value of open non-hedge derivative instruments $ 39,375 $ (3,691 ) Gain (loss) on settlement of non-hedge derivative instruments (1,674 ) 5,117 Gain on derivative instruments $ 37,701 $ 1,426 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement information for financial instruments measured on a recurring basis | The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 . March 31, 2017 December 31, 2016 (in thousands) Fixed price swaps: Quoted prices in active markets level 1 $ — $ — Significant other observable inputs level 2 17,476 23,317 Significant unobservable inputs level 3 — — Total $ 17,476 $ 23,317 |
Fair value measurement information for financial instruments measured on a nonrecurring basis | The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated balance sheets. March 31, 2017 December 31, 2016 Carrying Carrying Amount Fair Value Amount Fair Value (in thousands) Debt: Revolving credit facility $ — $ — $ — $ — 4.750% Senior Notes due 2024 500,000 504,200 500,000 491,250 5.375% Senior Notes due 2025 500,000 516,250 500,000 502,850 Partnership revolving credit facility — — 120,500 120,500 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Schedule of derivative instruments | As of March 31, 2017 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2017 2018 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps 3,302,000 $ 53.13 904,000 $ 54.96 Oil Basis Swaps 6,600,000 $ (0.72 ) 5,475,000 $ (0.88 ) Natural Gas Swaps 5,500,000 $ 3.16 1,350,000 $ 3.60 Floor Ceiling Volume Fixed Price (per Bbl) Volume Fixed Price (per Bbl) January 2017 - December 2017 Costless Collars 4,402,000 $ 46.69 2,201,000 $ 56.03 January 2018 - March 2018 Costless Collars 540,000 $ 47.00 270,000 $ 56.34 The following tables present the derivative contracts entered into by the Company subsequent to March 31, 2017 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) May 2017 - December 2017 Oil Swaps 184,000 $ 53.99 Natural Gas Swaps 2,450,000 $ 3.42 January 2018 - December 2018 Oil Swaps 1,825,000 $ 53.44 Natural Gas Swaps 3,650,000 $ 3.07 |
Guarantor Financial Statements
Guarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Balance Sheet | Condensed Consolidated Balance Sheet March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 911 $ 7,966 $ 28,563 $ — $ 37,440 Accounts receivable — 130,161 9,217 — 139,378 Accounts receivable - related party — 98 6,951 (6,951 ) 98 Intercompany receivable 3,140,469 593,099 — (3,733,568 ) — Inventories — 3,027 — — 3,027 Other current assets 413 18,210 208 — 18,831 Total current assets 3,141,793 752,561 44,939 (3,740,519 ) 198,774 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 7,102,157 769,393 (559 ) 7,870,991 Midstream assets — 56,833 — — 56,833 Other property and equipment — 70,170 — — 70,170 Accumulated depletion, depreciation, amortization and impairment — (1,746,886 ) (156,795 ) 8,784 (1,894,897 ) Net property and equipment — 5,482,274 612,598 8,225 6,103,097 Funds held in escrow — 2,051 — — 2,051 Derivative instruments — 3,102 — — 3,102 Investment in subsidiaries 2,564,063 — — (2,564,063 ) — Deferred income taxes 123 — — — 123 Other assets — 27,500 35,053 — 62,553 Total assets $ 5,705,979 $ 6,267,488 $ 692,590 $ (6,296,357 ) $ 6,369,700 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 19,658 $ 31 $ — $ 19,689 Intercompany payable 48,003 3,692,516 — (3,740,519 ) — Other current liabilities 18,775 204,764 841 — 224,380 Total current liabilities 66,778 3,916,938 872 (3,740,519 ) 244,069 Long-term debt 985,786 — — — 985,786 Asset retirement obligations — 18,939 — — 18,939 Deferred income taxes 1,548 — — — 1,548 Total liabilities 1,054,112 3,935,877 872 (3,740,519 ) 1,250,342 Commitments and contingencies Stockholders’ equity 4,651,867 2,331,611 691,718 (3,023,329 ) 4,651,867 Non-controlling interest — — — 467,491 467,491 Total equity 4,651,867 2,331,611 691,718 (2,555,838 ) 5,119,358 Total liabilities and equity $ 5,705,979 $ 6,267,488 $ 692,590 $ (6,296,357 ) $ 6,369,700 Condensed Consolidated Balance Sheet December 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 1,643,226 $ 14,135 $ 9,213 $ — $ 1,666,574 Restricted cash — — 500 — 500 Accounts receivable — 109,782 10,043 — 119,825 Accounts receivable - related party — 297 3,470 (3,470 ) 297 Intercompany receivable 3,060,566 359,502 — (3,420,068 ) — Inventories — 1,983 — — 1,983 Other current assets 481 2,319 187 — 2,987 Total current assets 4,704,273 488,018 23,413 (3,423,538 ) 1,792,166 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 4,400,002 760,818 (559 ) 5,160,261 Midstream assets — 8,362 — — 8,362 Other property and equipment — 58,290 — — 58,290 Accumulated depletion, depreciation, amortization and impairment — (1,695,701 ) (148,948 ) 8,593 (1,836,056 ) Net property and equipment — 2,770,953 611,870 8,034 3,390,857 Funds held in escrow — 121,391 — — 121,391 Derivative instruments — 709 — — 709 Investment in subsidiaries (15,500 ) — — 15,500 — Other assets — 9,291 35,266 — 44,557 Total assets $ 4,688,773 $ 3,390,362 $ 670,549 $ (3,400,004 ) $ 5,349,680 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ 30 $ 45,838 $ 1,780 $ — $ 47,648 Accounts payable-related party 1 — — — 1 Intercompany payable — 3,423,538 — (3,423,538 ) — Other current liabilities 5,868 155,454 371 — 161,693 Total current liabilities 5,899 3,624,830 2,151 (3,423,538 ) 209,342 Long-term debt 985,412 — 120,500 — 1,105,912 Asset retirement obligations — 16,134 — — 16,134 Total liabilities 991,311 3,640,964 122,651 (3,423,538 ) 1,331,388 Commitments and contingencies Stockholders’ equity 3,697,462 (250,602 ) 547,898 (297,296 ) 3,697,462 Non-controlling interest — — — 320,830 320,830 Total equity 3,697,462 (250,602 ) 547,898 23,534 4,018,292 Total liabilities and equity $ 4,688,773 $ 3,390,362 $ 670,549 $ (3,400,004 ) $ 5,349,680 |
Condensed Consolidated Statement of Operations | Condensed Consolidated Statement of Operations Three Months Ended March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 178,230 $ — $ 28,844 $ 207,074 Natural gas sales — 8,575 — 1,347 9,922 Natural gas liquid sales — 13,643 — 1,859 15,502 Royalty income — — 32,050 (32,050 ) — Lease bonus income — — 1,602 — 1,602 Midstream services — 1,130 — — 1,130 Total revenues — 201,578 33,652 — 235,230 Costs and expenses: Lease operating expenses — 26,626 — — 26,626 Production and ad valorem taxes — 13,655 2,070 — 15,725 Gathering and transportation — 2,476 143 — 2,619 Midstream services — 854 — — 854 Depreciation, depletion and amortization — 50,891 7,847 191 58,929 General and administrative expenses 7,108 5,109 2,142 (615 ) 13,744 Asset retirement obligation accretion — 323 — — 323 Total costs and expenses 7,108 99,934 12,202 (424 ) 118,820 Income (loss) from operations (7,108 ) 101,644 21,450 424 116,410 Other income (expense) Interest expense (10,808 ) (805 ) (612 ) — (12,225 ) Other income 1,092 854 (186 ) (615 ) 1,145 Gain on derivative instruments, net — 37,701 — — 37,701 Total other expense, net (9,716 ) 37,750 (798 ) (615 ) 26,621 Income (loss) before income taxes (16,824 ) 139,394 20,652 (191 ) 143,031 Provision for income taxes 1,957 — — — 1,957 Net income (loss) (18,781 ) 139,394 20,652 (191 ) 141,074 Net income attributable to non-controlling interest — — — 4,801 4,801 Net income (loss) attributable to Diamondback Energy, Inc. $ (18,781 ) $ 139,394 $ 20,652 $ (4,992 ) $ 136,273 Condensed Consolidated Statement of Operations Three Months Ended March 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 66,095 $ — $ 12,925 $ 79,020 Natural gas sales — 3,409 — 613 4,022 Natural gas liquid sales — 3,891 — 548 4,439 Royalty income — — 14,086 (14,086 ) — Lease bonus income — — 108 (108 ) — Total revenues — 73,395 14,194 (108 ) 87,481 Costs and expenses: Lease operating expenses — 18,223 — — 18,223 Production and ad valorem taxes — 6,660 1,302 — 7,962 Gathering and transportation — 2,701 86 2 2,789 Depreciation, depletion and amortization — 35,128 8,150 (1,209 ) 42,069 Impairment of oil and natural gas properties — 4,805 26,011 — 30,816 General and administrative expenses 8,307 2,923 1,749 — 12,979 Asset retirement obligation accretion — 246 — — 246 Total costs and expenses 8,307 70,686 37,298 (1,207 ) 115,084 Income (loss) from operations (8,307 ) 2,709 (23,104 ) 1,099 (27,603 ) Other income (expense) Interest expense (8,858 ) (725 ) (430 ) — (10,013 ) Other income 57 307 199 — 563 Gain on derivative instruments, net — 1,426 — — 1,426 Total other income (expense), net (8,801 ) 1,008 (231 ) — (8,024 ) Net income (loss) (17,108 ) 3,717 (23,335 ) 1,099 (35,627 ) Net loss attributable to non-controlling interest — — — (2,715 ) (2,715 ) Net income (loss) attributable to Diamondback Energy, Inc. $ (17,108 ) $ 3,717 $ (23,335 ) $ 3,814 $ (32,912 ) |
Condensed Consolidated Statement of Cash Flows | Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2017 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 40 $ 149,822 $ 26,065 $ — $ 175,927 Cash flows from investing activities: Additions to oil and natural gas properties — (116,174 ) — — (116,174 ) Acquisition of leasehold interests — (1,760,810 ) — — (1,760,810 ) Acquisition of mineral interests — — (8,579 ) — (8,579 ) Additions to midstream assets — (59 ) — — (59 ) Acquisition of midstream assets — (48,329 ) — — (48,329 ) Purchase of other property and equipment — (11,918 ) — — (11,918 ) Proceeds from sale of assets — 1,238 — — 1,238 Funds held in escrow — 119,340 — — 119,340 Equity investments — (188 ) — — (188 ) Intercompany transfers (1,660,917 ) 1,660,917 — — — Net cash used in investing activities (1,660,917 ) (155,983 ) (8,579 ) — (1,825,479 ) Cash flows from financing activities: Repayment on credit facility — — (120,500 ) — (120,500 ) Debt issuance costs (409 ) (8 ) (1 ) — (418 ) Public offering costs (79 ) — (186 ) — (265 ) Proceeds from public offerings — — 147,725 — 147,725 Distribution from subsidiary 18,692 — — (18,692 ) — Exercise of stock options 358 — — — 358 Distribution to non-controlling interest — — (25,174 ) 18,692 (6,482 ) Net cash provided by (used in) financing activities 18,562 (8 ) 1,864 — 20,418 Net increase (decrease) in cash and cash equivalents (1,642,315 ) (6,169 ) 19,350 — (1,629,134 ) Cash and cash equivalents at beginning of period 1,643,226 14,135 9,213 — 1,666,574 Cash and cash equivalents at end of period $ 911 $ 7,966 $ 28,563 $ — $ 37,440 Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 2016 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (526 ) $ 57,400 $ 15,886 $ — $ 72,760 Cash flows from investing activities: Additions to oil and natural gas properties — (86,333 ) — — (86,333 ) Acquisition of leasehold interests — (16,923 ) — — (16,923 ) Acquisition of mineral interests — — (2,082 ) — (2,082 ) Purchase of other property and equipment — (1,142 ) — — (1,142 ) Proceeds from sale of assets — 123 — — 123 Equity investments — (800 ) — — (800 ) Intercompany transfers (41,161 ) 41,161 — — — Net cash used in investing activities (41,161 ) (63,914 ) (2,082 ) — (107,157 ) Cash flows from financing activities: Proceeds from borrowing on credit facility — — 8,500 — 8,500 Repayment on credit facility — (11,000 ) — — (11,000 ) Debt issuance costs — (2 ) (2 ) — (4 ) Public offering costs (179 ) — — — (179 ) Proceeds from public offerings 254,518 — — — 254,518 Distribution from subsidiary 16,063 — — (16,063 ) — Exercise of stock options 372 — — — 372 Distribution to non-controlling interest — — (18,178 ) 16,063 (2,115 ) Intercompany transfers (11,000 ) 11,000 — — — Net cash provided by (used in) financing activities 259,774 (2 ) (9,680 ) — 250,092 Net increase (decrease) in cash and cash equivalents 218,087 (6,516 ) 4,124 — 215,695 Cash and cash equivalents at beginning of period 148 19,428 539 — 20,115 Cash and cash equivalents at end of period $ 218,235 $ 12,912 $ 4,663 $ — $ 235,810 |
Description of the Business a36
Description of the Business and Basis of Presentation (Details) | Mar. 31, 2017 |
Viper Energy Partners LP [Member] | |
Noncontrolling Interest [Line Items] | |
Interest in Viper Energy Partners LP (percentage) | 74.00% |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 28, 2017USD ($)ashares | Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($)$ / shares |
Business Acquisition [Line Items] | ||||
Shares Held in Escrow | shares | 1,150 | |||
Acquisition of leasehold interests | $ 1,760,810 | $ 16,923 | ||
Acquisition of midstream assets | 59 | 0 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Proved Oil and Gas Properties | $ 387,571 | 387,571 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Unevaluated Oil and Natural Gas Properties | 2,122,415 | 2,122,415 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Midstream Assets | 47,554 | 47,554 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Prepaid Costs | 3,460 | 3,460 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Oil Inventory | 839 | 839 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Revenues Payable | (8,723) | (8,723) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Asset Retirement Obligation | (1,550) | (1,550) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 2,551,566 | 2,551,566 | ||
Business Acquisition, Pro Forma Revenue | 258,159 | 102,664 | ||
Business Acquisition, Pro Forma Income (Loss) from Operations | 133,162 | (24,003) | ||
Business Acquisition, Pro Forma Net Income (Loss) | $ 150,615 | $ (29,312) | ||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ / shares | $ 1.62 | $ (0.41) | ||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ / shares | $ 1.61 | $ (0.41) | ||
Delaware Basin Interests [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to acquire leasehold interests and related assets | $ 1,740,000 | |||
Number of shares issued to acquire leasehold interests and related assets | shares | 7,690 | |||
Gross acres acquired | a | 100,306 | |||
Net acres acquired | a | 80,339 | |||
Acquisition of leasehold interests | $ 2,500,000 | |||
Acquisition of midstream assets | $ 47,600 | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 12,200 | |||
Business Combination, Pro Forma Information, Direct Operating Expenses since Acquisition Date, Actual | $ 2,700 |
Viper Energy Partners LP (Detai
Viper Energy Partners LP (Details) | Mar. 31, 2017 |
Viper Energy Partners LP [Member] | |
Noncontrolling Interest [Line Items] | |
Interest in Viper Energy Partners LP (percentage) | 74.00% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Oil and natural gas properties: | |||||||
Not subject to depletion | $ 3,892,109 | $ 1,730,519 | |||||
Gross oil and natural gas properties | 7,870,991 | 5,160,261 | |||||
Midstream assets | 56,833 | 8,362 | |||||
Other property and equipment | 70,170 | 58,290 | |||||
Accumulated depletion and depreciation | (1,894,897) | (1,836,056) | |||||
Net property and equipment | 6,103,097 | 3,390,857 | |||||
Exploration costs, development costs or capitalized interest not subject to depletion | 0 | ||||||
Capitalized internal costs | 5,136 | $ 5,024 | |||||
Impairment of oil and natural gas properties | 0 | $ 30,816 | |||||
Exploration costs or development costs not subject to depletion | 16,800 | ||||||
Capitalized interest not subject to depletion | $ 2,200 | ||||||
Minimum [Member] | |||||||
Oil and natural gas properties: | |||||||
Timing of inclusion of costs in amortization calculation | 3 years | ||||||
Maximum [Member] | |||||||
Oil and natural gas properties: | |||||||
Timing of inclusion of costs in amortization calculation | 5 years | ||||||
Oil and Gas Properties [Member] | |||||||
Oil and natural gas properties: | |||||||
Subject to depletion | $ 3,978,882 | 3,429,742 | |||||
Not subject to depletion | 3,892,109 | 1,730,519 | |||||
Gross oil and natural gas properties | 7,870,991 | 5,160,261 | |||||
Accumulated impairment | (1,143,498) | (1,143,498) | |||||
Oil and natural gas properties, net | 5,980,460 | 3,329,078 | |||||
Accumulated depletion and depreciation | (747,033) | (687,685) | |||||
Balance of acquisition costs not subject to depletion | 2,184,601 | 788,662 | $ 374,937 | $ 442,159 | $ 47,174 | $ 54,576 | |
Other Property and Equipment, Net [Member] | |||||||
Oil and natural gas properties: | |||||||
Other property and equipment | 70,170 | 58,290 | |||||
Accumulated depletion and depreciation | $ (4,366) | $ (4,873) |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Changes in ARO liability | |||
Asset retirement obligations, beginning of period | $ 17,422 | $ 12,711 | |
Additional liabilities incurred | 741 | 132 | |
Liabilities acquired | 2,129 | 796 | |
Liabilities settled | (102) | (344) | |
Accretion expense | 323 | 246 | |
Revisions in estimated liabilities | (2) | 88 | |
Asset retirement obligations, end of period | 20,511 | 13,629 | |
Less current portion | 1,572 | 67 | |
Asset retirement obligations - long-term | $ 18,939 | $ 13,562 | $ 16,134 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2014 | Mar. 31, 2017 | Mar. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity investments | $ 188 | $ 800 | |
HMW Fluid Management LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity investments | $ 600 | 188 | 800 |
Equity Method Investment, Ownership Percentage | 25.00% | ||
Equity Method Investments | $ 6,540 | $ 4,128 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 20, 2016 | Oct. 28, 2016 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 985,786 | $ 1,105,912 | ||
Debt Issuance Cost | (14,214) | (14,588) | ||
Senior Unsecured Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | ||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |
Senior Unsecured Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | ||
Stated interest rate (percentage) | 5.375% | 5.375% | 5.375% | |
Company Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 0 | |||
Partnership Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 0 | $ 120,500 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 20, 2016 | Oct. 28, 2016 | |
Senior Unsecured Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 500 | |||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 103.563% | |||
Debt Instrument, Redemption Period, Start Date | Nov. 1, 2019 | |||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2020 | |||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 102.375% | |||
Debt Instrument, Redemption Period, Start Date | Nov. 1, 2020 | |||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2021 | |||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.188% | |||
Debt Instrument, Redemption Period, Start Date | Nov. 1, 2021 | |||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2022 | |||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption Period, Start Date | Nov. 1, 2022 | |||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 104.75% | |||
Debt Instrument, Redemption Period, Start Date | Oct. 28, 2016 | |||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2019 | |||
Senior Unsecured Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 500 | |||
Stated interest rate (percentage) | 5.375% | 5.375% | 5.375% | |
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 104.031% | |||
Debt Instrument, Redemption Period, Start Date | May 31, 2020 | |||
Debt Instrument, Redemption Period, End Date | May 30, 2021 | |||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 102.688% | |||
Debt Instrument, Redemption Period, Start Date | May 31, 2021 | |||
Debt Instrument, Redemption Period, End Date | May 30, 2022 | |||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 101.344% | |||
Debt Instrument, Redemption Period, Start Date | May 31, 2022 | |||
Debt Instrument, Redemption Period, End Date | May 30, 2023 | |||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Four [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption Period, Start Date | May 31, 2023 | |||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage | 105.375% | |||
Debt Instrument, Redemption Period, Start Date | Dec. 20, 2016 | |||
Debt Instrument, Redemption Period, End Date | May 30, 2020 | |||
Maximum [Member] | Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Percentage Eligible for Redemption | 35.00% | |||
Maximum [Member] | Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument Percentage Eligible for Redemption | 35.00% |
Debt - Credit Facility - Wells
Debt - Credit Facility - Wells Fargo Bank (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)redetermindation | |
Company Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,000,000 |
Number of additional redeterminations that may be requested | redetermindation | 3 |
Period of redeterminations (in months) | 12 months |
Current borrowing base | $ 1,000,000 |
Elected borrowing base | 500,000 |
Financial covenant, maximum issuance of unsecured debt | $ 1,000,000 |
Financial covenant, reduction of borrowing base (percentage) | 25.00% |
Long-term Debt, Gross | $ 0 |
Company Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% |
Company Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% |
Company Credit Facility [Member] | Federal Funds Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 0.50% |
Company Credit Facility [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 1.00% |
Company Credit Facility [Member] | LIBOR [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 1.50% |
Company Credit Facility [Member] | LIBOR [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 2.50% |
Company Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 0.50% |
Company Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate (percentage) | 1.50% |
Senior Notes [Member] | |
Line of Credit Facility [Line Items] | |
Long-term Debt, Gross | $ 1,000,000 |
Debt - Partnership Credit Facil
Debt - Partnership Credit Facility - Wells Fargo Bank (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)redetermindation | Dec. 31, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||
Long-term Debt | $ 985,786 | $ 1,105,912 |
Partnership Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 500,000 | |
Number of additional redeterminations that may be requested | redetermindation | 3 | |
Period of redeterminations (in months) | 12 months | |
Current borrowing base | $ 275,000 | |
Long-term Debt, Gross | 0 | $ 120,500 |
Financial covenant, maximum issuance of unsecured debt | $ 250,000 | |
Financial covenant, reduction of borrowing base (percentage) | 25.00% | |
Partnership Credit Facility [Member] | Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.50% | |
Partnership Credit Facility [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.00% | |
Partnership Credit Facility [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |
Partnership Credit Facility [Member] | Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 2.00% | |
Partnership Credit Facility [Member] | Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.00% | |
Partnership Credit Facility [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | |
Partnership Credit Facility [Member] | Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 3.00% | |
Partnership Credit Facility [Member] | Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 2.00% |
Debt - Financial Covenant Table
Debt - Financial Covenant Table (Details) | Mar. 31, 2017 |
Company Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total debt to EBITDAX | 4 |
Company Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1 |
Partnership Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total debt to EBITDAX | 4 |
Partnership Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1 |
Capital Stock and Earnings Pe47
Capital Stock and Earnings Per Share - Capital Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Class of Stock [Line Items] | ||||
Repayments of Lines of Credit | $ 120,500 | $ 11,000 | ||
Follow-on Public Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued upon public offering | 4,600,000 | |||
Stock price per share at public offering (in dollars per share) | $ 55.33 | |||
Net proceeds received from public offering | $ 254,500 | |||
Over-Allotment Option [Member] | ||||
Class of Stock [Line Items] | ||||
Shares issued upon public offering | 600,000 | |||
Viper Energy Partners LP [Member] | Follow-on Public Offering [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of Stock, Number of Shares Issued in Transaction | 9,775,000 | |||
Sale of Stock, Consideration Received on Transaction | $ 147,600 | |||
Viper Energy Partners LP [Member] | Over-Allotment Option [Member] | ||||
Class of Stock [Line Items] | ||||
Sale of Stock, Number of Shares Issued in Transaction | 1,275,000 | |||
Partnership Credit Facility [Member] | ||||
Class of Stock [Line Items] | ||||
Repayments of Lines of Credit | $ 120,500 |
Capital Stock and Earnings Pe48
Capital Stock and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic: | ||
Net income (loss) attributable to common stock | $ 136,273 | $ (32,912) |
Basic weighted average common units outstanding | 93,161,000 | 71,026,000 |
Basic net income (loss) attributable to common stock | $ 1.46 | $ (0.46) |
Effect of Dilutive Securities: | ||
Dilutive effect of potential common shares issuable (in shares) | 203,000 | 0 |
Diluted: | ||
Diluted weighted average common shares outstanding | 93,364,000 | 71,026,000 |
Diluted net income (loss) attributable to common stock | $ 1.46 | $ (0.46) |
Antidilutive securities excluded from earnings per share (in shares) | 14 | 194,737 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | $ 2,343 | $ 2,764 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
General and administrative expenses | $ 7,063 | $ 8,350 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock/Unit Option Activity (Details) - 2012 Plan [Member] - Stock/Unit Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Number of Options (in shares) | ||
Outstanding at December 31, 2016 | 15,750 | |
Exercised | (15,750) | |
Outstanding at March 31, 2017 | 0 | |
Weighted Average Exercise Price (in dollars per share) | ||
Outstanding at December 31, 2016 | $ 22.72 | |
Exercised | 22.72 | |
Outstanding at March 31, 2017 | $ 0 | |
Outstanding, period end, remaining term (in years) | 0 years | |
Outstanding, period end, intrinsic value | $ 0 | |
Options exercised, intrinsic value | $ 1,200 | $ 900 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Units (Details) - 2012 Plan [Member] - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Awards & Units (in shares) | ||
Unvested at December 31, 2016 | 206,004 | |
Granted | 82,220 | |
Vested | (109,528) | |
Forfeited | (69) | |
Unvested at March 31, 2017 | 178,627 | |
Weighted Average Grant-Date Fair Value (in dollars per share) | ||
Unvested at December 31, 2016 | $ 70.33 | |
Granted | 108.56 | |
Vested | 75.44 | |
Forfeited | 91.59 | |
Unvested at March 31, 2017 | $ 84.78 | |
Aggregate fair value of share-based awards that vested | $ 11.3 | $ 8.2 |
Unrecognized compensation cost related to unvested awards | $ 12.4 | |
Unrecognized compensation cost, period of recognition (in years) | 1 year 7 months 17 days |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Restricted Stock Activity (Details) - 2012 Plan [Member] - Performance Shares [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2017 | Mar. 31, 2017 | ||
Awards & Units (in shares) | |||
Unvested at December 31, 2016 | 252,471 | ||
Granted | 118,169 | ||
Unvested at March 31, 2017 | [1] | 370,640 | |
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Unvested at December 31, 2016 | $ 103.06 | ||
Granted | 166.53 | ||
Unvested at March 31, 2017 | $ 123.29 | ||
Share Based Compensation Arrangement by Share Based Payment Maximum Award Potential | 741,280 | ||
Unrecognized compensation cost related to unvested awards | $ 30.6 | ||
Unrecognized compensation cost, period of recognition (in years) | 1 year 11 months 12 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to be awarded, percent of initial awards received | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized to be awarded, percent of initial awards received | 200.00% | ||
Two-Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, performance period | 2 years | ||
Awards & Units (in shares) | |||
Granted | 37,440 | ||
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Granted | $ 162.13 | ||
Three-Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, performance period | 3 years | ||
Awards & Units (in shares) | |||
Granted | 74,880 | ||
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Granted | $ 168.73 | ||
[1] | A maximum of 741,280 units could be awarded based upon the Company’s final TSR ranking. |
Equity-Based Compensation - Val
Equity-Based Compensation - Valuation Assumptions (Details) - 2012 Plan [Member] - Performance Shares [Member] - $ / shares | 1 Months Ended | 3 Months Ended |
Feb. 28, 2017 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 166.53 | |
Two-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 162.13 | |
Risk-free rate (percentage) | 1.27% | |
Company volatility (percentage) | 39.32% | |
Three-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 168.73 | |
Risk-free rate (percentage) | 1.59% | |
Company volatility (percentage) | 41.14% |
Equity-Based Compensation - Pha
Equity-Based Compensation - Phantom Units (Details) - Viper Energy Partners LP Long Term Incentive Plan [Member] - Phantom Share Units (PSUs) [Member] $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($)$ / sharesshares | |
Awards & Units (in shares) | |
Unvested at December 31, 2016 | shares | 21,048 |
Granted | shares | 3,126 |
Unvested at March 31, 2017 | shares | 24,174 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Unvested at December 31, 2016 | $ / shares | $ 16.23 |
Granted | $ / shares | 17.49 |
Unvested at March 31, 2017 | $ / shares | $ 16.39 |
Unrecognized compensation cost related to unvested awards | $ | $ 0.2 |
Unrecognized compensation cost, period of recognition (in years) | 1 year 4 months 17 days |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions (Details) | Jun. 23, 2014USD ($) | Oct. 11, 2012USD ($) | May 15, 2011 | Nov. 30, 2014 | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016 | Oct. 17, 2012 |
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 442,000 | |||||||
Operating Leases [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Expenses from Transactions with Related Party | 266,000 | |||||||
Wexford [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Affiliate Beneficial Ownership, Outstanding Common Stock, Percentage | 44.00% | |||||||
Wexford [Member] | Advisory Services Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Annual Fee for Advisory Services with Related Party | $ 500,000 | |||||||
Related Party Transaction, Original Term for Advisory Services with Related Party | 2 years | |||||||
Related Party Transaction, Renewal Term for Advisory Services with Related Party | 1 year | |||||||
Related Party Transaction, Minimum Period for Cancellation of Renewal Term | 10 days | |||||||
Payments for Operating Activities | 125,000 | |||||||
Fasken [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments for Operating Activities | 349,000 | |||||||
Viper Energy Partners LP [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments for Operating Activities | $ 1,500 | $ 108,000 | ||||||
Number of leases extended | 1 | 1 | ||||||
Average price per acre | $ 400 | $ 2,500 | ||||||
Viper Energy Partners LP [Member] | Wexford [Member] | Advisory Services Agreement [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Annual Fee for Advisory Services with Related Party | $ 500,000 | |||||||
Related Party Transaction, Original Term for Advisory Services with Related Party | 2 years | |||||||
Related Party Transaction, Renewal Term for Advisory Services with Related Party | 1 year | |||||||
Related Party Transaction, Minimum Period for Cancellation of Renewal Term | 10 days | |||||||
Payments for Operating Activities | $ 0 | 0 | ||||||
Maximum [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Other Income | 50,000 | |||||||
Maximum [Member] | Bison Drilling and Field Services LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Revenue from Related Parties | 50,000 | |||||||
Maximum [Member] | Wexford [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related Party Transaction, Affiliate Beneficial Ownership, Outstanding Common Stock, Percentage | 1.00% | |||||||
Maximum [Member] | WT Commercial Portfolio, LLC [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Payments for Operating Activities | $ 50,000 | |||||||
Corporate Office Space [Member] | Fasken [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operating Lease, Term of Lease, Related Party | 5 years | 10 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 1.40% | 0.00% |
Decrease in Valuation Allowances | $ (27.4) | |
Valuation Allowance | $ 87 |
Derivatives - Open Derivative P
Derivatives - Open Derivative Positions (Details) | 3 Months Ended |
Mar. 31, 2017MMBTU$ / bbl$ / MMBTUbbl | |
Oil Swaps 2017 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 3,302,000 |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 53.13 |
Oil Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 904,000 |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 54.96 |
Oil Basis Swaps 2017 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 6,600,000 |
Fixed Swap Price (in dollars per bbl) | $ / bbl | (0.72) |
Oil Basis Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,475,000 |
Fixed Swap Price (in dollars per bbl) | $ / bbl | (0.88) |
Natural Gas Swaps 2017 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 5,500,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.16 |
Natural Gas Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 1,350,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.60 |
Costless Collars 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Floor Price | $ / bbl | 46.69 |
Derivative, Ceiling Price | $ / bbl | 56.03 |
Costless Collars 2017 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 4,402,000 |
Costless Collars 2017 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,201,000 |
Costless Collars 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Floor Price | $ / bbl | 47 |
Derivative, Ceiling Price | $ / bbl | 56.34 |
Costless Collars 2018 [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 540,000 |
Costless Collars 2018 [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 270,000 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ 17,476 | $ 709 |
Net amounts of assets presented in the Consolidated Balance Sheet | 17,476 | 709 |
Gross amounts of liabilities presented in the Consolidated Balance Sheet | 0 | 22,608 |
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ 0 | $ 22,608 |
Derivatives - Balance Sheet Loc
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current assets: derivative instruments | $ 14,374 | $ 0 |
Noncurrent assets: derivative instruments | 3,102 | 709 |
Total assets | 17,476 | 709 |
Current liabilities: derivative instruments | 0 | 22,608 |
Total liabilities | $ 0 | $ 22,608 |
Derivatives - Gains and Losses
Derivatives - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Change in fair value of open non-hedge derivative instruments | $ 39,375 | $ (3,691) |
Gain (loss) on settlement of non-hedge derivative instruments | (1,674) | 5,117 |
Gain on derivative instruments | $ 37,701 | $ 1,426 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Fixed price swaps | $ 17,476 | $ 23,317 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Fixed price swaps | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Fixed price swaps | 17,476 | 23,317 |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Fixed price swaps | $ 0 | $ 0 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 20, 2016 | Oct. 28, 2016 |
Senior Unsecured Notes due 2024 [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |
Senior Unsecured Notes due 2025 [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate (percentage) | 5.375% | 5.375% | 5.375% | |
Reported Value Measurement [Member] | Company Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 0 | $ 0 | ||
Reported Value Measurement [Member] | Senior Unsecured Notes due 2024 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 500,000 | 500,000 | ||
Reported Value Measurement [Member] | Senior Unsecured Notes due 2025 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 500,000 | 500,000 | ||
Reported Value Measurement [Member] | Partnership Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 0 | 120,500 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Senior Unsecured Notes due 2024 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 504,200 | 491,250 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Senior Unsecured Notes due 2025 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 516,250 | 502,850 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Company Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 0 | 0 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Partnership Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 0 | $ 120,500 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended | 3 Months Ended |
Apr. 28, 2017USD ($)MMBTU$ / bbl$ / MMBTUbbl | Mar. 31, 2017USD ($)MMBTU$ / bbl$ / MMBTUbbl | |
Oil Swaps 2017 [Member] | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 3,302,000 | |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 53.13 | |
Oil Swaps 2017 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 184,000 | |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 53.99 | |
Natural Gas Swaps 2017 [Member] | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 5,500,000 | |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.16 | |
Natural Gas Swaps 2017 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 2,450,000 | |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 3.42 | |
Oil Swaps 2018 [Member] | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 904,000 | |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 54.96 | |
Oil Swaps 2018 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 1,825,000 | |
Fixed Swap Price (in dollars per bbl) | $ / bbl | 53.44 | |
Natural Gas Swaps 2018 [Member] | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 1,350,000 | |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.60 | |
Natural Gas Swaps 2018 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Volume (MMBtu) | MMBTU | 3,650,000 | |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.07 | |
Company Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Current borrowing base | $ 1,000 | |
Elected borrowing base | 500 | |
Company Credit Facility [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Current borrowing base | $ 1,500 | |
Elected borrowing base | 750 | |
Partnership Credit Facility [Member] | ||
Subsequent Event [Line Items] | ||
Current borrowing base | $ 275 | |
Partnership Credit Facility [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Current borrowing base | $ 315 |
Guarantor Financial Statement64
Guarantor Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||||
Cash and cash equivalents | $ 37,440 | $ 1,666,574 | $ 235,810 | $ 20,115 |
Restricted cash | 0 | 500 | ||
Accounts receivable | 139,378 | 119,825 | ||
Accounts receivable - related party | 98 | 297 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 3,027 | 1,983 | ||
Other current assets | 18,831 | 2,987 | ||
Total current assets | 198,774 | 1,792,166 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 7,870,991 | 5,160,261 | ||
Midstream assets | 56,833 | 8,362 | ||
Other property and equipment | 70,170 | 58,290 | ||
Accumulated depletion, depreciation, amortization and impairment | (1,894,897) | (1,836,056) | ||
Net property and equipment | 6,103,097 | 3,390,857 | ||
Funds held in escrow | 2,051 | 121,391 | ||
Derivative instruments | 3,102 | 709 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 123 | 0 | ||
Other assets | 62,553 | 44,557 | ||
Total assets | 6,369,700 | 5,349,680 | ||
Current liabilities: | ||||
Accounts payable-trade | 19,689 | 47,648 | ||
Accounts payable-related party | 0 | 1 | ||
Intercompany payable | 0 | 0 | ||
Other current liabilities | 224,380 | 161,693 | ||
Total current liabilities | 244,069 | 209,342 | ||
Long-term debt | 985,786 | 1,105,912 | ||
Asset retirement obligations | 18,939 | 16,134 | 13,562 | |
Deferred income taxes | 1,548 | 0 | ||
Total liabilities | 1,250,342 | 1,331,388 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 4,651,867 | 3,697,462 | ||
Non-controlling interest | 467,491 | 320,830 | ||
Total equity | 5,119,358 | 4,018,292 | 2,337,056 | 2,108,973 |
Total liabilities and equity | 6,369,700 | 5,349,680 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Restricted cash | 0 | |||
Accounts receivable | 0 | 0 | ||
Accounts receivable - related party | (6,951) | (3,470) | ||
Intercompany receivable | (3,733,568) | (3,420,068) | ||
Inventories | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (3,740,519) | (3,423,538) | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | (559) | (559) | ||
Midstream assets | 0 | 0 | ||
Other property and equipment | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | 8,784 | 8,593 | ||
Net property and equipment | 8,225 | 8,034 | ||
Funds held in escrow | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Investment in subsidiaries | (2,564,063) | 15,500 | ||
Deferred income taxes | 0 | |||
Other assets | 0 | 0 | ||
Total assets | (6,296,357) | (3,400,004) | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 0 | ||
Accounts payable-related party | 0 | |||
Intercompany payable | (3,740,519) | (3,423,538) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (3,740,519) | (3,423,538) | ||
Long-term debt | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | |||
Total liabilities | (3,740,519) | (3,423,538) | ||
Commitments and contingencies | ||||
Stockholders’ equity | (3,023,329) | (297,296) | ||
Non-controlling interest | 467,491 | 320,830 | ||
Total equity | (2,555,838) | 23,534 | ||
Total liabilities and equity | (6,296,357) | (3,400,004) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 911 | 1,643,226 | 218,235 | 148 |
Restricted cash | 0 | |||
Accounts receivable | 0 | 0 | ||
Accounts receivable - related party | 0 | 0 | ||
Intercompany receivable | 3,140,469 | 3,060,566 | ||
Inventories | 0 | 0 | ||
Other current assets | 413 | 481 | ||
Total current assets | 3,141,793 | 4,704,273 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 0 | 0 | ||
Midstream assets | 0 | 0 | ||
Other property and equipment | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Funds held in escrow | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Investment in subsidiaries | 2,564,063 | (15,500) | ||
Deferred income taxes | 123 | |||
Other assets | 0 | 0 | ||
Total assets | 5,705,979 | 4,688,773 | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 30 | ||
Accounts payable-related party | 1 | |||
Intercompany payable | 48,003 | 0 | ||
Other current liabilities | 18,775 | 5,868 | ||
Total current liabilities | 66,778 | 5,899 | ||
Long-term debt | 985,786 | 985,412 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 1,548 | |||
Total liabilities | 1,054,112 | 991,311 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 4,651,867 | 3,697,462 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 4,651,867 | 3,697,462 | ||
Total liabilities and equity | 5,705,979 | 4,688,773 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 7,966 | 14,135 | 12,912 | 19,428 |
Restricted cash | 0 | |||
Accounts receivable | 130,161 | 109,782 | ||
Accounts receivable - related party | 98 | 297 | ||
Intercompany receivable | 593,099 | 359,502 | ||
Inventories | 3,027 | 1,983 | ||
Other current assets | 18,210 | 2,319 | ||
Total current assets | 752,561 | 488,018 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 7,102,157 | 4,400,002 | ||
Midstream assets | 56,833 | 8,362 | ||
Other property and equipment | 70,170 | 58,290 | ||
Accumulated depletion, depreciation, amortization and impairment | (1,746,886) | (1,695,701) | ||
Net property and equipment | 5,482,274 | 2,770,953 | ||
Funds held in escrow | 2,051 | 121,391 | ||
Derivative instruments | 3,102 | 709 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 0 | |||
Other assets | 27,500 | 9,291 | ||
Total assets | 6,267,488 | 3,390,362 | ||
Current liabilities: | ||||
Accounts payable-trade | 19,658 | 45,838 | ||
Accounts payable-related party | 0 | |||
Intercompany payable | 3,692,516 | 3,423,538 | ||
Other current liabilities | 204,764 | 155,454 | ||
Total current liabilities | 3,916,938 | 3,624,830 | ||
Long-term debt | 0 | 0 | ||
Asset retirement obligations | 18,939 | 16,134 | ||
Deferred income taxes | 0 | |||
Total liabilities | 3,935,877 | 3,640,964 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 2,331,611 | (250,602) | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 2,331,611 | (250,602) | ||
Total liabilities and equity | 6,267,488 | 3,390,362 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 28,563 | 9,213 | $ 4,663 | $ 539 |
Restricted cash | 500 | |||
Accounts receivable | 9,217 | 10,043 | ||
Accounts receivable - related party | 6,951 | 3,470 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 208 | 187 | ||
Total current assets | 44,939 | 23,413 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 769,393 | 760,818 | ||
Midstream assets | 0 | 0 | ||
Other property and equipment | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | (156,795) | (148,948) | ||
Net property and equipment | 612,598 | 611,870 | ||
Funds held in escrow | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred income taxes | 0 | |||
Other assets | 35,053 | 35,266 | ||
Total assets | 692,590 | 670,549 | ||
Current liabilities: | ||||
Accounts payable-trade | 31 | 1,780 | ||
Accounts payable-related party | 0 | |||
Intercompany payable | 0 | 0 | ||
Other current liabilities | 841 | 371 | ||
Total current liabilities | 872 | 2,151 | ||
Long-term debt | 0 | 120,500 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | |||
Total liabilities | 872 | 122,651 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 691,718 | 547,898 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 691,718 | 547,898 | ||
Total liabilities and equity | $ 692,590 | $ 670,549 |
Guarantor Financial Statement65
Guarantor Financial Statements - Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Revenues: | ||
Oil sales | $ 207,074 | $ 79,020 |
Natural gas sales | 9,922 | 4,022 |
Natural gas liquid sales | 15,502 | 4,439 |
Royalty income | 0 | 0 |
Lease bonus income | 1,602 | 0 |
Midstream services | 1,130 | 0 |
Total revenues | 235,230 | 87,481 |
Costs and Expenses [Abstract] | ||
Lease operating expenses | 26,626 | 18,223 |
Production and ad valorem taxes | 15,725 | 7,962 |
Gathering and transportation | 2,619 | 2,789 |
Midstream services | 854 | 0 |
Depreciation, depletion and amortization | 58,929 | 42,069 |
Impairment of oil and natural gas properties | 0 | 30,816 |
General and administrative expenses | 13,744 | 12,979 |
Asset retirement obligation accretion | 323 | 246 |
Total costs and expenses | 118,820 | 115,084 |
Income (loss) from operations | 116,410 | (27,603) |
Other income (expense): | ||
Interest expense | (12,225) | (10,013) |
Other income | 1,145 | 563 |
Gain on derivative instruments, net | 37,701 | 1,426 |
Total other income (expense), net | 26,621 | (8,024) |
Income (loss) before income taxes | 143,031 | |
Provision for income taxes | 1,957 | 0 |
Net income (loss) | 141,074 | (35,627) |
Net income (loss) attributable to non-controlling interest | 4,801 | (2,715) |
Net income (loss) attributable to Diamondback Energy, Inc. | 136,273 | (32,912) |
Eliminations [Member] | ||
Revenues: | ||
Oil sales | 28,844 | 12,925 |
Natural gas sales | 1,347 | 613 |
Natural gas liquid sales | 1,859 | 548 |
Royalty income | (32,050) | (14,086) |
Lease bonus income | 0 | (108) |
Midstream services | 0 | |
Total revenues | 0 | (108) |
Costs and Expenses [Abstract] | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 0 | 0 |
Gathering and transportation | 0 | 2 |
Midstream services | 0 | |
Depreciation, depletion and amortization | 191 | (1,209) |
Impairment of oil and natural gas properties | 0 | |
General and administrative expenses | (615) | 0 |
Asset retirement obligation accretion | 0 | 0 |
Total costs and expenses | (424) | (1,207) |
Income (loss) from operations | 424 | 1,099 |
Other income (expense): | ||
Interest expense | 0 | 0 |
Other income | (615) | 0 |
Gain on derivative instruments, net | 0 | 0 |
Total other income (expense), net | (615) | 0 |
Income (loss) before income taxes | (191) | |
Provision for income taxes | 0 | |
Net income (loss) | (191) | 1,099 |
Net income (loss) attributable to non-controlling interest | 4,801 | (2,715) |
Net income (loss) attributable to Diamondback Energy, Inc. | (4,992) | 3,814 |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Oil sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Natural gas liquid sales | 0 | 0 |
Royalty income | 0 | 0 |
Lease bonus income | 0 | 0 |
Midstream services | 0 | |
Total revenues | 0 | 0 |
Costs and Expenses [Abstract] | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 0 | 0 |
Gathering and transportation | 0 | 0 |
Midstream services | 0 | |
Depreciation, depletion and amortization | 0 | 0 |
Impairment of oil and natural gas properties | 0 | |
General and administrative expenses | 7,108 | 8,307 |
Asset retirement obligation accretion | 0 | 0 |
Total costs and expenses | 7,108 | 8,307 |
Income (loss) from operations | (7,108) | (8,307) |
Other income (expense): | ||
Interest expense | (10,808) | (8,858) |
Other income | 1,092 | 57 |
Gain on derivative instruments, net | 0 | 0 |
Total other income (expense), net | (9,716) | (8,801) |
Income (loss) before income taxes | (16,824) | |
Provision for income taxes | 1,957 | |
Net income (loss) | (18,781) | (17,108) |
Net income (loss) attributable to non-controlling interest | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | (18,781) | (17,108) |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Oil sales | 178,230 | 66,095 |
Natural gas sales | 8,575 | 3,409 |
Natural gas liquid sales | 13,643 | 3,891 |
Royalty income | 0 | 0 |
Lease bonus income | 0 | 0 |
Midstream services | 1,130 | |
Total revenues | 201,578 | 73,395 |
Costs and Expenses [Abstract] | ||
Lease operating expenses | 26,626 | 18,223 |
Production and ad valorem taxes | 13,655 | 6,660 |
Gathering and transportation | 2,476 | 2,701 |
Midstream services | 854 | |
Depreciation, depletion and amortization | 50,891 | 35,128 |
Impairment of oil and natural gas properties | 4,805 | |
General and administrative expenses | 5,109 | 2,923 |
Asset retirement obligation accretion | 323 | 246 |
Total costs and expenses | 99,934 | 70,686 |
Income (loss) from operations | 101,644 | 2,709 |
Other income (expense): | ||
Interest expense | (805) | (725) |
Other income | 854 | 307 |
Gain on derivative instruments, net | 37,701 | 1,426 |
Total other income (expense), net | 37,750 | 1,008 |
Income (loss) before income taxes | 139,394 | |
Provision for income taxes | 0 | |
Net income (loss) | 139,394 | 3,717 |
Net income (loss) attributable to non-controlling interest | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 139,394 | 3,717 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Oil sales | 0 | 0 |
Natural gas sales | 0 | 0 |
Natural gas liquid sales | 0 | 0 |
Royalty income | 32,050 | 14,086 |
Lease bonus income | 1,602 | 108 |
Midstream services | 0 | |
Total revenues | 33,652 | 14,194 |
Costs and Expenses [Abstract] | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 2,070 | 1,302 |
Gathering and transportation | 143 | 86 |
Midstream services | 0 | |
Depreciation, depletion and amortization | 7,847 | 8,150 |
Impairment of oil and natural gas properties | 26,011 | |
General and administrative expenses | 2,142 | 1,749 |
Asset retirement obligation accretion | 0 | 0 |
Total costs and expenses | 12,202 | 37,298 |
Income (loss) from operations | 21,450 | (23,104) |
Other income (expense): | ||
Interest expense | (612) | (430) |
Other income | (186) | 199 |
Gain on derivative instruments, net | 0 | 0 |
Total other income (expense), net | (798) | (231) |
Income (loss) before income taxes | 20,652 | |
Provision for income taxes | 0 | |
Net income (loss) | 20,652 | (23,335) |
Net income (loss) attributable to non-controlling interest | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | $ 20,652 | $ (23,335) |
Guarantor Financial Statement66
Guarantor Financial Statements - Cash Flow Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided (used in) by operating activities | $ 175,927 | $ 72,760 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (116,174) | (86,333) |
Acquisition of leasehold interests | 1,760,810 | 16,923 |
Acquisition of mineral interests | (8,579) | (2,082) |
Additions to midstream assets | (59) | 0 |
Acquisition of midstream assets | 48,329 | 0 |
Purchase of other property and equipment | (11,918) | (1,142) |
Proceeds from sale of assets | 1,238 | 123 |
Funds held in escrow | 119,340 | 0 |
Equity investments | (188) | (800) |
Intercompany transfers | 0 | 0 |
Net cash used in investing activities | (1,825,479) | (107,157) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 0 | 8,500 |
Repayment on credit facility | (120,500) | (11,000) |
Debt issuance costs | (418) | (4) |
Public offering costs | (265) | (179) |
Proceeds from public offerings | 147,725 | 254,518 |
Distribution from subsidiary | 0 | 0 |
Proceeds from exercise of stock options | 358 | 372 |
Distributions to non-controlling interest | (6,482) | (2,115) |
Intercompany transfers | 0 | |
Net cash provided by financing activities | 20,418 | 250,092 |
Net increase (decrease) in cash and cash equivalents | (1,629,134) | 215,695 |
Cash and cash equivalents at beginning of period | 1,666,574 | 20,115 |
Cash and cash equivalents at end of period | 37,440 | 235,810 |
Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided (used in) by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | 0 | 0 |
Acquisition of leasehold interests | 0 | 0 |
Acquisition of mineral interests | 0 | 0 |
Additions to midstream assets | 0 | |
Acquisition of midstream assets | 0 | |
Purchase of other property and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Funds held in escrow | 0 | |
Equity investments | 0 | 0 |
Intercompany transfers | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 0 | |
Repayment on credit facility | 0 | 0 |
Debt issuance costs | 0 | 0 |
Public offering costs | 0 | 0 |
Proceeds from public offerings | 0 | 0 |
Distribution from subsidiary | (18,692) | (16,063) |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to non-controlling interest | 18,692 | 16,063 |
Intercompany transfers | 0 | |
Net cash provided by financing activities | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided (used in) by operating activities | 40 | (526) |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | 0 | 0 |
Acquisition of leasehold interests | 0 | 0 |
Acquisition of mineral interests | 0 | 0 |
Additions to midstream assets | 0 | |
Acquisition of midstream assets | 0 | |
Purchase of other property and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Funds held in escrow | 0 | |
Equity investments | 0 | 0 |
Intercompany transfers | (1,660,917) | (41,161) |
Net cash used in investing activities | (1,660,917) | (41,161) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 0 | |
Repayment on credit facility | 0 | 0 |
Debt issuance costs | (409) | 0 |
Public offering costs | (79) | (179) |
Proceeds from public offerings | 0 | 254,518 |
Distribution from subsidiary | 18,692 | 16,063 |
Proceeds from exercise of stock options | 358 | 372 |
Distributions to non-controlling interest | 0 | 0 |
Intercompany transfers | (11,000) | |
Net cash provided by financing activities | 18,562 | 259,774 |
Net increase (decrease) in cash and cash equivalents | (1,642,315) | 218,087 |
Cash and cash equivalents at beginning of period | 1,643,226 | 148 |
Cash and cash equivalents at end of period | 911 | 218,235 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided (used in) by operating activities | 149,822 | 57,400 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (116,174) | (86,333) |
Acquisition of leasehold interests | 1,760,810 | 16,923 |
Acquisition of mineral interests | 0 | 0 |
Additions to midstream assets | (59) | |
Acquisition of midstream assets | 48,329 | |
Purchase of other property and equipment | (11,918) | (1,142) |
Proceeds from sale of assets | 1,238 | 123 |
Funds held in escrow | 119,340 | |
Equity investments | (188) | (800) |
Intercompany transfers | 1,660,917 | 41,161 |
Net cash used in investing activities | (155,983) | (63,914) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 0 | |
Repayment on credit facility | 0 | (11,000) |
Debt issuance costs | (8) | (2) |
Public offering costs | 0 | 0 |
Proceeds from public offerings | 0 | 0 |
Distribution from subsidiary | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to non-controlling interest | 0 | 0 |
Intercompany transfers | 11,000 | |
Net cash provided by financing activities | (8) | (2) |
Net increase (decrease) in cash and cash equivalents | (6,169) | (6,516) |
Cash and cash equivalents at beginning of period | 14,135 | 19,428 |
Cash and cash equivalents at end of period | 7,966 | 12,912 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided (used in) by operating activities | 26,065 | 15,886 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | 0 | 0 |
Acquisition of leasehold interests | 0 | 0 |
Acquisition of mineral interests | (8,579) | (2,082) |
Additions to midstream assets | 0 | |
Acquisition of midstream assets | 0 | |
Purchase of other property and equipment | 0 | 0 |
Proceeds from sale of assets | 0 | 0 |
Funds held in escrow | 0 | |
Equity investments | 0 | 0 |
Intercompany transfers | 0 | 0 |
Net cash used in investing activities | (8,579) | (2,082) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 8,500 | |
Repayment on credit facility | (120,500) | 0 |
Debt issuance costs | (1) | (2) |
Public offering costs | (186) | 0 |
Proceeds from public offerings | 147,725 | 0 |
Distribution from subsidiary | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Distributions to non-controlling interest | (25,174) | (18,178) |
Intercompany transfers | 0 | |
Net cash provided by financing activities | 1,864 | (9,680) |
Net increase (decrease) in cash and cash equivalents | 19,350 | 4,124 |
Cash and cash equivalents at beginning of period | 9,213 | 539 |
Cash and cash equivalents at end of period | $ 28,563 | $ 4,663 |