Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35700 | |
Entity Registrant Name | Diamondback Energy, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-4502447 | |
Entity Address, Address Line One | 500 West Texas | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Midland, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79701 | |
City Area Code | 432 | |
Local Phone Number | 221-7400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FANG | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 163,043,443 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001539838 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 326 | $ 215 |
Accounts receivable: | ||
Joint interest and other, net | 168 | 96 |
Oil and natural gas sales | 349 | 296 |
Inventories | 44 | 37 |
Derivative instruments | 29 | 231 |
Prepaid expenses and other | 56 | 50 |
Total current assets | 972 | 925 |
Property and equipment: | ||
Oil and natural gas properties, full cost method of accounting ($9,585 million and $9,670 million excluded from amortization at June 30, 2019 and December 31, 2018, respectively) | 24,076 | 22,299 |
Midstream assets | 828 | 700 |
Other property, equipment and land | 150 | 147 |
Accumulated depletion, depreciation, amortization and impairment | (3,451) | (2,774) |
Net property and equipment | 21,603 | 20,372 |
Funds held in escrow | 13 | 0 |
Equity method investments | 187 | 1 |
Derivative instruments | 23 | 0 |
Deferred tax asset | 150 | 97 |
Investment in real estate, net | 112 | 116 |
Other assets | 111 | 85 |
Total assets | 23,171 | 21,596 |
Current liabilities: | ||
Accounts payable-trade | 204 | 128 |
Accrued capital expenditures | 573 | 495 |
Other accrued liabilities | 239 | 253 |
Revenues and royalties payable | 139 | 143 |
Derivative instruments | 25 | 0 |
Total current liabilities | 1,180 | 1,019 |
Long-term debt | 4,472 | 4,464 |
Derivative instruments | 8 | 15 |
Asset retirement obligations | 142 | 136 |
Deferred income taxes | 1,909 | 1,785 |
Other long-term liabilities | 10 | 10 |
Total liabilities | 7,721 | 7,429 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, 200,000,000 shares authorized, 163,949,167 issued and outstanding at June 30, 2019; 200,000,000 shares authorized, 164,273,447 issued and outstanding at December 31, 2018 | 2 | 2 |
Additional paid-in capital | 12,933 | 12,936 |
Retained earnings | 1,069 | 762 |
Total Diamondback Energy, Inc. stockholders’ equity | 14,004 | 13,700 |
Non-controlling interest | 1,446 | 467 |
Total equity | 15,450 | 14,167 |
Total liabilities and equity | $ 23,171 | $ 21,596 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 9,585 | $ 9,670 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 200,000,000 | 200,000,000 |
Shares Issued | 163,949,167 | 164,273,447 |
Shares Outstanding | 163,949,167 | 164,273,447 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Revenue | $ 1,021 | $ 527 | $ 1,885 | $ 1,006 |
Lease bonus | 2 | 1 | 3 | 1 |
Other operating income | 3 | 2 | 5 | 4 |
Costs and expenses: | ||||
Lease operating expenses | 127 | 43 | 236 | 80 |
Production and ad valorem taxes | 64 | 33 | 119 | 60 |
Depreciation, depletion and amortization | 359 | 130 | 681 | 245 |
General and administrative expenses | 22 | 15 | 49 | 31 |
Asset retirement obligation accretion | 3 | 0 | 5 | 1 |
Other operating expense | 1 | 0 | 2 | 1 |
Total costs and expenses | 610 | 246 | 1,155 | 458 |
Income from operations | 411 | 281 | 730 | 548 |
Other income (expense): | ||||
Interest expense, net | (49) | (16) | (95) | (30) |
Other income, net | 2 | 84 | 3 | 87 |
Gain (loss) on derivative instruments, net | 94 | (59) | (174) | (91) |
Gain on revaluation of investment | 0 | 4 | 4 | 5 |
Total other income (expense), net | 47 | 13 | (262) | (29) |
Income before income taxes | 458 | 294 | 468 | 519 |
Provision for (benefit from) income taxes | 102 | (7) | 69 | 40 |
Net income | 356 | 301 | 399 | 479 |
Net income attributable to non-controlling interest | 7 | 82 | 40 | 97 |
Net income attributable to Diamondback Energy, Inc. | $ 349 | $ 219 | $ 359 | $ 382 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 2.12 | $ 2.22 | $ 2.18 | $ 3.87 |
Diluted (in dollars per share) | $ 2.11 | $ 2.22 | $ 2.17 | $ 3.87 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 164,839 | 98,614 | 164,846 | 98,584 |
Diluted (in shares) | 165,019 | 98,797 | 165,253 | 98,820 |
Dividends declared per share | $ 0.1875 | $ 0.125 | $ 0.375 | $ 0.250 |
Oil sales | ||||
Revenues: | ||||
Revenue | $ 947 | $ 461 | $ 1,690 | $ 880 |
Natural gas sales | ||||
Revenues: | ||||
Revenue | (9) | 12 | 20 | 26 |
Natural gas liquid sales | ||||
Revenues: | ||||
Revenue | 62 | 43 | 132 | 76 |
Midstream services | ||||
Revenues: | ||||
Revenue | 16 | 8 | 35 | 19 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 17 | 18 | 34 | 29 |
Gathering and transportation | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | $ 17 | $ 7 | $ 29 | $ 11 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at beginning of period at Dec. 31, 2017 | $ 5,582 | $ 1 | $ 5,291 | $ (37) | $ 327 |
Balance at beginning of period, shares at Dec. 31, 2017 | 98,167,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 1 | $ 0 | 0 | 0 | 1 |
Stock-based compensation | 9 | 0 | 9 | 0 | 0 |
Distribution to non-controlling interest | (19) | 0 | 0 | 0 | (19) |
Exercise of stock options and vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 443,000 | ||||
Net income | 178 | $ 0 | 0 | 163 | 15 |
Balance at end of period at Mar. 31, 2018 | 5,735 | $ 1 | 5,300 | 117 | 317 |
Balance at end of period, shares at Mar. 31, 2018 | 98,610,000 | ||||
Balance at beginning of period at Dec. 31, 2017 | 5,582 | $ 1 | 5,291 | (37) | 327 |
Balance at beginning of period, shares at Dec. 31, 2017 | 98,167,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 479 | ||||
Balance at end of period at Jun. 30, 2018 | 6,012 | $ 1 | 5,307 | 323 | 381 |
Balance at end of period, shares at Jun. 30, 2018 | 98,620,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Impact of adoption of ASU 2016-01, net of tax | (16) | $ 0 | 0 | (9) | (7) |
Balance at beginning of period at Mar. 31, 2018 | 5,735 | $ 1 | 5,300 | 117 | 317 |
Balance at beginning of period, shares at Mar. 31, 2018 | 98,610,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 1 | $ 0 | 0 | 0 | 1 |
Stock-based compensation | 7 | 0 | 7 | 0 | 0 |
Distribution to non-controlling interest | (19) | 0 | 0 | 0 | (19) |
Dividend paid | (13) | 0 | 0 | (13) | 0 |
Exercise of stock options and vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 10,000 | ||||
Net income | 301 | $ 0 | 0 | 219 | 82 |
Balance at end of period at Jun. 30, 2018 | 6,012 | $ 1 | 5,307 | 323 | 381 |
Balance at end of period, shares at Jun. 30, 2018 | 98,620,000 | ||||
Balance at beginning of period at Dec. 31, 2018 | $ 14,167 | $ 2 | 12,936 | 762 | 467 |
Balance at beginning of period, shares at Dec. 31, 2018 | 164,273,447 | 164,273,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net proceeds from issuance of common units - Viper Energy Partners LP | $ 341 | $ 0 | 0 | 0 | 341 |
Stock-based compensation | 19 | 0 | 19 | 0 | 0 |
Repurchased shares for tax withholding | (13) | $ 0 | (13) | 0 | 0 |
Repurchased shares for tax withholding, shares | (125,000) | ||||
Distribution to non-controlling interest | (26) | $ 0 | 0 | 0 | (26) |
Dividend paid | (20) | 0 | 0 | (20) | 0 |
Exercise of stock options and vesting of restricted stock units | 0 | $ 0 | 0 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 468,000 | ||||
Change in ownership of consolidated subsidiaries, net | 3 | $ 0 | 77 | 0 | (74) |
Net income | 43 | 0 | 0 | 10 | 33 |
Balance at end of period at Mar. 31, 2019 | 14,514 | $ 2 | 13,019 | 752 | 741 |
Balance at end of period, shares at Mar. 31, 2019 | 164,616,000 | ||||
Balance at beginning of period at Dec. 31, 2018 | $ 14,167 | $ 2 | 12,936 | 762 | 467 |
Balance at beginning of period, shares at Dec. 31, 2018 | 164,273,447 | 164,273,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 399 | ||||
Balance at end of period at Jun. 30, 2019 | $ 15,450 | $ 2 | 12,933 | 1,069 | 1,446 |
Balance at end of period, shares at Jun. 30, 2019 | 163,949,167 | 163,949,000 | |||
Balance at beginning of period at Mar. 31, 2019 | $ 14,514 | $ 2 | 13,019 | 752 | 741 |
Balance at beginning of period, shares at Mar. 31, 2019 | 164,616,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net proceeds from issuance of common units - Viper Energy Partners LP | 720 | $ 0 | 0 | 0 | 720 |
Unit-based compensation | 2 | 0 | 0 | 0 | 2 |
Stock-based compensation | 12 | $ 0 | 12 | 0 | 0 |
Shares repurchased under share buyback program | (1,016,000) | ||||
Repurchased shares for share buyback program | (104) | $ 0 | (104) | 0 | 0 |
Distribution to non-controlling interest | (24) | 0 | 0 | 0 | (24) |
Dividend paid | (32) | 0 | 0 | (32) | 0 |
Exercise of stock options and vesting of restricted stock units | 6 | $ 0 | 6 | 0 | 0 |
Exercise of stock options and awards of restricted stock, shares | 349,000 | ||||
Net income | 356 | $ 0 | 0 | 349 | 7 |
Balance at end of period at Jun. 30, 2019 | $ 15,450 | $ 2 | $ 12,933 | $ 1,069 | $ 1,446 |
Balance at end of period, shares at Jun. 30, 2019 | 163,949,167 | 163,949,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 399 | $ 479 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for deferred income taxes | 69 | 40 |
Asset retirement obligation accretion | 5 | 1 |
Depreciation, depletion and amortization | 681 | 245 |
Amortization of debt issuance costs | 3 | 1 |
Change in fair value of derivative instruments | 196 | 14 |
Gain on revaluation of investment | (4) | (5) |
Equity-based compensation expense | 23 | 13 |
Loss on sale of assets, net | 0 | (3) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (94) | (1) |
Inventories | (8) | (18) |
Prepaid expenses and other | (28) | (3) |
Accounts payable and accrued liabilities | (166) | (1) |
Accrued interest | (30) | (12) |
Income tax payable | 1 | 0 |
Revenues and royalties payable | (4) | 8 |
Net cash provided by operating activities | 1,043 | 764 |
Cash flows from investing activities: | ||
Drilling, completions and non-operated additions to oil and natural gas properties | (1,155) | (614) |
Payments to add oil and natural gas properties infrastructure | (83) | (36) |
Additions to midstream assets | (111) | (95) |
Purchase of other property, equipment and land | (7) | (4) |
Acquisition of leasehold interests | (127) | (101) |
Acquisition of mineral interests | (125) | (253) |
Proceeds from sale of assets | 36 | 4 |
Investment in real estate | (1) | (110) |
Funds held in escrow | (13) | 11 |
Equity investments | (186) | 0 |
Net cash used in investing activities | (1,772) | (1,198) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 925 | 569 |
Repayment under credit facility | (973) | (388) |
Proceeds from senior notes | 0 | 312 |
Proceeds from joint venture | 43 | 0 |
Debt issuance costs | (8) | (5) |
Public offering costs | 41 | 2 |
Proceeds from public offerings | 1,106 | 0 |
Proceeds from exercise of stock options | 6 | 0 |
Repurchased shares for tax withholding | (13) | 0 |
Repurchased as part of share buyback | (104) | 0 |
Dividends to stockholders | (51) | (12) |
Distributions to non-controlling interest | (50) | (38) |
Net cash provided by financing activities | 840 | 436 |
Net increase in cash and cash equivalents | 111 | 2 |
Cash and cash equivalents at beginning of period | 215 | 112 |
Cash and cash equivalents at end of period | 326 | 114 |
Supplemental disclosure of cash flow information: | ||
Interest paid, net of capitalized interest | 76 | 44 |
Supplemental disclosure of non-cash transactions: | ||
Change in accrued capital expenditures | 78 | 149 |
Capitalized stock-based compensation | 10 | 5 |
Asset retirement obligations acquired | $ 3 | $ 0 |
Description of the Business and
Description of the Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 , 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, Rattler Midstream GP LLC, a Delaware limited liability company, and Energen Corporation, an Alabama corporation (“Energen”). The consolidated subsidiaries include these wholly-owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (“Viper”), Viper’s wholly-owned subsidiary Viper Energy Partners LLC, a Delaware limited liability company (“Viper LLC”), Rattler Midstream LP (formerly known as Rattler Midstream Partners LP), a Delaware limited partnership (“Rattler”), Rattler Midstream Operating LLC (formerly known as Rattler Midstream LLC), a Delaware limited liability company (“Rattler LLC”), and Rattler LLC’s wholly-owned subsidiary Tall City Towers LLC, a Delaware limited liability company (“Tall City”). 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. Viper is consolidated in the financial statements of the Company. As of June 30, 2019 , the Company owned approximately 54% of Viper’s total units outstanding. The Company’s wholly-owned subsidiary, Viper Energy Partners GP LLC, is the General Partner of Viper. Rattler is consolidated in the financial statements of the Company. As of June 30, 2019 , the Company owned approximately 71% of Rattler’s total units outstanding. The Company’s wholly-owned subsidiary, Rattler Midstream GP LLC, is the General Partner of Rattler. 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, 2018 , which contains a summary of the Company’s significant accounting policies and other disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 assumed, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. Reclassifications Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income (loss), total assets, liabilities and stockholders’ equity or total cash flows. Investments Equity investments in which the Company exercises significant influence but does not control are accounted for using the equity method. Under the equity method, generally the Company’s share of investees’ earnings or loss is recognized in the statement of operations. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision. Viper has an equity interest in a limited partnership that is so minor that Viper has no influence over the limited partnership’s operating and financial policies. This interest was acquired during the year ended December 31, 2014 and was accounted for under the cost method. Effective January 1, 2018, Viper adopted Accounting Standards Update 2016-01 which requires Viper to measure its investment at fair value which resulted in a downward adjustment of $19 million to record the impact of this adoption. See Note 17 — Fair Value Measurements . New Accounting Pronouncements Recently Adopted Pronouncements 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. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles and compressors. The Company has completed the process of reviewing and determining the agreements to which this new guidance applies. Upon adoption effective January 1, 2019, the Company recognized approximately $13 million of right-of-use assets, of which the total amount relates to the Company’s operating leases. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-10, “Codification Improvements to Topic 842, Leases”. This update provides clarification and corrects unintended application of certain sections in the new lease guidance. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-11, “Lease (Topic 842): Targeted Improvements”. This update provides another transition method of allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In December 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors”. This update provides a practical expedient for lessors to elect not to evaluate whether sales taxes and other similar taxes are lessor costs. The update also requires a lessor to exclude from variable payments those costs paid directly by the lessee to third parties and include lessor costs paid by the lessor and reimbursed by the lessee. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. See Note 18 — Leases for more information on the adoption of these standards. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity because the Company currently accounts for nonemployee share-based transactions in the same manner as employee share-based transactions. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-09, “Codification Improvements”. This update provides clarification and corrects unintended application of the guidance in various sections. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted 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 its consolidated financial statements since it does not have a history of credit losses. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. 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 prospectively. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. 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 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In November 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. This update clarifies that receivables arising from operating leases are not within the scope of this topic, but rather Topic 842, Leases. 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 an impact on its financial statements since it does not have a history of credit losses. In April 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”. This update clarifies guidance previously issued in ASU 2016-01, ASU 2016-13 and ASU 2017-12. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the updates to the referenced standards will have an impact on its financial position, results of operations or liquidity. In May 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-05, “Financial Instruments-Credit Losses (Topic 326)”. This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from Contracts with Customers Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the fresh water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel fresh water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s upstream product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligations under any of our product sales contracts. The majority of the Company’s midstream revenue agreements have a term greater than one year, and as such the Company has utilized the practical expedient in ASC 606, which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Company’s midstream revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Company has utilized an additional practical expedient in ASC 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months and six months ended June 30, 2019 , revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures | ACQUISITIONS Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen On May 23, 2019, the Company completed its divestiture of 6,589 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in its merger with Energen (as described below), for an aggregate sale price of $37 million . This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate. Tall City Towers LLC On January 31, 2018, Tall City, a subsidiary of the Company, completed its acquisition of the Fasken Center office buildings in Midland, TX where the Company’s corporate offices are located for a net purchase price of $110 million . Energen Corporation Merger On November 29, 2018, the Company completed its acquisition of Energen in an all-stock transaction (the “Merger”), which was accounted for as a business combination. Upon completion of this acquisition, the addition of Energen’s assets increased the Company’s assets to: (i) over 273,000 net Tier One acres in the Permian Basin, (ii) approximately 7,200 estimated total net horizontal Permian locations, and (iii) approximately 394,000 net acres across the Midland and Delaware Basins. Under the terms of the Merger, each share of Energen common stock was converted into 0.6442 of a share of the Company’s common stock. The Company issued approximately 62.8 million shares of its common stock valued at a price of $112.00 per share on the closing date, resulting in total consideration paid by the Company to the former Energen shareholders of approximately $7 billion . In connection with the closing of the Merger, the Company repaid outstanding principal under Energen’s revolving credit facility and assumed all of Energen’s other long-term debt. See Note 11 — Debt for additional information. Purchase Price Allocation The Merger has been accounted for as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price of Energen to the identifiable assets acquired and the liabilities assumed based on the fair values on the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies, final tax returns that provide the underlying tax basis of Energen’s assets and liabilities and final appraisals of assets acquired and liabilities assumed. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate. The following table sets forth the Company’s preliminary purchase price allocation as of June 30, 2019 : (In millions) Consideration: Fair value of the Company's common stock issued $ 7,136 Total consideration $ 7,136 Fair value of liabilities assumed: Current liabilities $ 365 Asset retirement obligation 105 Long-term debt 1,099 Noncurrent derivative instruments 17 Deferred income taxes 1,408 Other long-term liabilities 7 Amount attributable to liabilities assumed $ 3,001 Fair value of assets acquired: Total current assets $ 305 Oil and natural gas properties 9,307 Midstream assets 263 Investment in real estate 11 Other property, equipment and land 55 Asset retirement obligation 105 Other postretirement assets 3 Noncurrent income tax receivable, net 76 Other long term assets 12 Amount attributable to assets acquired $ 10,137 Pro Forma Financial Information The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three and six months ended June 30, 2018 have been prepared to give effect to the Merger as if it had occurred on January 1, 2018. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for Energen’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the Company’s common stock issued to convert Energen’s outstanding shares of common stock and equity awards as of the closing date of the Merger, (ii) the depletion of Energen’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by the Company to integrate the Energen assets. The pro forma financial data does not include the results of operations for any other acquisitions made during the periods presented, as they were primarily acreage acquisitions and their results were not deemed material. The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions, except per share amounts) Revenues $ 898 $ 1,736 Income from operations $ 431 $ 849 Net income $ 303 $ 571 Basic earnings per common share $ 1.88 $ 3.54 Diluted earnings per common share $ 1.87 $ 3.53 |
Viper Energy Partners LP
Viper Energy Partners LP | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure | VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. Viper is currently focused on oil and natural gas properties in the Permian Basin and the Eagle Ford Shale. Viper Energy Partners GP LLC, a fully-consolidated subsidiary of Diamondback, serves as the general partner of Viper. As of June 30, 2019 , the Company owned approximately 54% of Viper’s total units outstanding. Equity Offerings On March 1, 2019, Viper completed an underwritten public offering of 10,925,000 common units, which included 1,425,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, the Company owned approximately 54% of Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million , after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC in turn used the net proceeds to repay a portion of the outstanding borrowings under the revolving credit facility and finance acquisitions during the period. As a result of this public offering and Viper’s issuance of unit-based compensation, the Company’s ownership percentage in Viper was reduced. During the six months ended June 30, 2019 , the Company recorded a $74 million decrease to non-controlling interest in Viper with an increase to additional paid-in capital, which represents the difference between the Company’s share of the underlying net book value in Viper before and after the respective Partnership common unit transactions, on the Company’s consolidated balance sheet. Recapitalization, Tax Status Election and Related Transactions by Viper In March 2018, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 Viper (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of Viper LLC, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, Viper’s General Partner and Viper LLC. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper the 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of Viper LLC pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, Viper continued to be the managing member of Viper LLC, with sole control of its operations, and owned approximately 36% of the outstanding units issued by Viper LLC, and the Company owned the remaining approximately 64% of the outstanding units issued by Viper LLC. Upon completion of Viper’s July 2018 offering of units, it owned approximately 41% of the outstanding units issued by Viper LLC and the Company owned the remaining approximately 59% . Viper LLC units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Viper LLC unit and one Viper Class B unit, together, will be exchangeable for one Viper common unit). On May 10, 2018, the change in Viper’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) Viper’s General Partner made a cash capital contribution of $1 million to Viper in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1 million to Viper in respect of the Class B units. The Company, as the holder of the Class B units, and Viper’s General Partner, as the holder of the general partner interest, are entitled to receive an 8% annual distribution on the outstanding amount of these capital contributions, payable quarterly, as a return on this invested capital. On May 10, 2018, the Company also exchanged 731,500 Class B units and 731,500 units in Viper LLC for 731,500 common units of Viper and a cash amount of $10,000 representing a proportionate return of the $1 million invested capital in respect of the Class B units. Viper’s General Partner continues to serve as Viper’s general partner and the Company continues to control Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through Viper LLC, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to Viper’s business, including operational effectiveness, acquisition and disposition transactional planning flexibility and income tax efficiency. For additional information regarding the tax status election and related transactions, please refer to Viper’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and Viper’s Current Report on Form 8-K filed with the SEC on May 15, 2018. Partnership Agreement The second amended and restated agreement of limited partnership, dated as of May 9, 2018, as amended as of May 10, 2018 (the “Viper’s Partnership Agreement”), requires Viper to reimburse Viper’s General Partner for all direct and indirect expenses incurred or paid on Viper’s behalf and all other expenses allocable to Viper or otherwise incurred by Viper’s General Partner in connection with operating Viper’s business. The Viper Partnership Agreement does not set a limit on the amount of expenses for which Viper’s 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 Viper or on its behalf and expenses allocated to Viper’s General Partner by its affiliates. Viper’s General Partner is entitled to determine the expenses that are allocable to Viper. For each of the three months ended June 30, 2019 and 2018 , Viper’s General Partner allocated less than $1 million to Viper. For each of the six months ended June 30, 2019 and 2018 , Viper’s General Partner allocated $1 million to Viper. Tax Sharing In connection with the closing of the Viper Offering, Viper entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which Viper agreed to reimburse Diamondback for its share of state and local income and other taxes for which Viper’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 Viper 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 Viper may be a member for this purpose, to owe less or no tax. In such a situation, Viper agreed to reimburse Diamondback for the tax Viper would have owed had the tax attributes not been available or used for Viper’s benefit, even though Diamondback had no cash tax expense for that period. For the three months and six months ended June 30, 2019 and the three months and six months ended June 30, 2018 , Viper accrued a minimal amount of state income tax expense for its share of Texas margin tax for which Viper’s results are included in a combined tax return filed by Diamondback. Other Agreements Viper has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 11 — Debt for a description of this credit facility. Rattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly-owned subsidiary of Diamondback, serves as the general partner of Rattler. As of June 30, 2019 , Diamondback owned approximately 71% of Rattler’s total units outstanding. Prior to the completion of the Rattler Offering in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit, which included 5,700,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters on the same terms which closed on May 30, 2019. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of the Rattler Offering, Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner, and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. Diamondback, as the holder of the Class B units, and Rattler’s General Partner, as the holder of the general partner interest, are entitled to receive cash preferred distributions equal to 8% per annum on the outstanding amount of their respective $1 million capital contributions, payable quarterly. Diamondback has also entered into the following agreements with Rattler: Rattler’s Partnership Agreement In connection with the closing of the Rattler Offering, Rattler’s General Partner and Energen Resources Corporation entered into the first amended and restated agreement of limited partnership of Rattler, dated May 28, 2019 (the “Rattler Partnership Agreement”). The Rattler Partnership Agreement requires Rattler to reimburse Rattler’s General Partner for all direct and indirect expenses incurred or paid on Rattler’s behalf and all other expenses allocable to Rattler or otherwise incurred by Rattler’s General Partner in connection with operating Rattler’s business. The Rattler Partnership Agreement does not set a limit on the amount of expenses for which its 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 Rattler or on its behalf and expenses allocated to Rattler’s General Partner by its affiliates. Rattler’s General Partner is entitled to determine the expenses that are allocable to Rattler. For the three months and six months ended June 30, 2019 , the General Partner allocated $37,907 of such expenses to Rattler. Rattler’s Services and Secondment Agreement In connection with the closing of the Rattler Offering, Rattler entered into a services and secondment agreement with Diamondback, Diamondback E&P LLC, Rattler’s General Partner and Rattler LLC, dated as of May 28, 2019 (the “Services and Secondment Agreement”). Pursuant to the Services and Secondment Agreement, Diamondback and its subsidiaries second certain operational, construction, design and management employees and contractors of Diamondback to Rattler’s General Partner, Rattler and its subsidiaries, providing management, maintenance and operational functions with respect to Rattler’s assets. The Services and Secondment Agreement requires Rattler’s General Partner and Rattler to reimburse Diamondback for the cost of the seconded employees and contractors, including their wages and benefits. For the three months and six months ended June 30, 2019 , Rattler’s General Partner and Rattler paid Diamondback $1 million and $2 million under the Services and Secondment Agreement, respectively. Rattler’s Tax Sharing Agreement In connection with the closing of the Rattler Offering, Rattler LLC entered into a tax sharing agreement with Diamondback pursuant to which Rattler LLC will reimburse Diamondback for its share of state and local income and other taxes borne by Diamondback as a result of Rattler LLC’s results being included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on May 28, 2019. The amount of any such reimbursement is limited to the tax that Rattler LLC 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 Rattler LLC may be a member for this purpose, to owe less or no tax. In such a situation, Rattler LLC agreed to reimburse Diamondback for the tax Rattler LLC would have owed had the attributes not been available or used for Rattler LLC’s benefit, even though Diamondback had no cash expense for that period. For the three months and six months ended June 30, 2019 , Rattler accrued state income tax expense of $31,814 for its share of Texas margin tax for which Rattler’s share of Rattler LLC’s results are included in a combined tax return filed by Diamondback. Other Agreements Rattler has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, sole book runner and lead arranger. See Note 11 — Debt for a description of this credit facility. |
Rattler Midstream LP (Notes)
Rattler Midstream LP (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Disclosure | VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. Viper is currently focused on oil and natural gas properties in the Permian Basin and the Eagle Ford Shale. Viper Energy Partners GP LLC, a fully-consolidated subsidiary of Diamondback, serves as the general partner of Viper. As of June 30, 2019 , the Company owned approximately 54% of Viper’s total units outstanding. Equity Offerings On March 1, 2019, Viper completed an underwritten public offering of 10,925,000 common units, which included 1,425,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, the Company owned approximately 54% of Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million , after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC in turn used the net proceeds to repay a portion of the outstanding borrowings under the revolving credit facility and finance acquisitions during the period. As a result of this public offering and Viper’s issuance of unit-based compensation, the Company’s ownership percentage in Viper was reduced. During the six months ended June 30, 2019 , the Company recorded a $74 million decrease to non-controlling interest in Viper with an increase to additional paid-in capital, which represents the difference between the Company’s share of the underlying net book value in Viper before and after the respective Partnership common unit transactions, on the Company’s consolidated balance sheet. Recapitalization, Tax Status Election and Related Transactions by Viper In March 2018, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 Viper (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of Viper LLC, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, Viper’s General Partner and Viper LLC. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper the 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of Viper LLC pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, Viper continued to be the managing member of Viper LLC, with sole control of its operations, and owned approximately 36% of the outstanding units issued by Viper LLC, and the Company owned the remaining approximately 64% of the outstanding units issued by Viper LLC. Upon completion of Viper’s July 2018 offering of units, it owned approximately 41% of the outstanding units issued by Viper LLC and the Company owned the remaining approximately 59% . Viper LLC units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Viper LLC unit and one Viper Class B unit, together, will be exchangeable for one Viper common unit). On May 10, 2018, the change in Viper’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) Viper’s General Partner made a cash capital contribution of $1 million to Viper in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1 million to Viper in respect of the Class B units. The Company, as the holder of the Class B units, and Viper’s General Partner, as the holder of the general partner interest, are entitled to receive an 8% annual distribution on the outstanding amount of these capital contributions, payable quarterly, as a return on this invested capital. On May 10, 2018, the Company also exchanged 731,500 Class B units and 731,500 units in Viper LLC for 731,500 common units of Viper and a cash amount of $10,000 representing a proportionate return of the $1 million invested capital in respect of the Class B units. Viper’s General Partner continues to serve as Viper’s general partner and the Company continues to control Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through Viper LLC, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to Viper’s business, including operational effectiveness, acquisition and disposition transactional planning flexibility and income tax efficiency. For additional information regarding the tax status election and related transactions, please refer to Viper’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and Viper’s Current Report on Form 8-K filed with the SEC on May 15, 2018. Partnership Agreement The second amended and restated agreement of limited partnership, dated as of May 9, 2018, as amended as of May 10, 2018 (the “Viper’s Partnership Agreement”), requires Viper to reimburse Viper’s General Partner for all direct and indirect expenses incurred or paid on Viper’s behalf and all other expenses allocable to Viper or otherwise incurred by Viper’s General Partner in connection with operating Viper’s business. The Viper Partnership Agreement does not set a limit on the amount of expenses for which Viper’s 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 Viper or on its behalf and expenses allocated to Viper’s General Partner by its affiliates. Viper’s General Partner is entitled to determine the expenses that are allocable to Viper. For each of the three months ended June 30, 2019 and 2018 , Viper’s General Partner allocated less than $1 million to Viper. For each of the six months ended June 30, 2019 and 2018 , Viper’s General Partner allocated $1 million to Viper. Tax Sharing In connection with the closing of the Viper Offering, Viper entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which Viper agreed to reimburse Diamondback for its share of state and local income and other taxes for which Viper’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 Viper 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 Viper may be a member for this purpose, to owe less or no tax. In such a situation, Viper agreed to reimburse Diamondback for the tax Viper would have owed had the tax attributes not been available or used for Viper’s benefit, even though Diamondback had no cash tax expense for that period. For the three months and six months ended June 30, 2019 and the three months and six months ended June 30, 2018 , Viper accrued a minimal amount of state income tax expense for its share of Texas margin tax for which Viper’s results are included in a combined tax return filed by Diamondback. Other Agreements Viper has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 11 — Debt for a description of this credit facility. Rattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly-owned subsidiary of Diamondback, serves as the general partner of Rattler. As of June 30, 2019 , Diamondback owned approximately 71% of Rattler’s total units outstanding. Prior to the completion of the Rattler Offering in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit, which included 5,700,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters on the same terms which closed on May 30, 2019. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of the Rattler Offering, Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner, and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. Diamondback, as the holder of the Class B units, and Rattler’s General Partner, as the holder of the general partner interest, are entitled to receive cash preferred distributions equal to 8% per annum on the outstanding amount of their respective $1 million capital contributions, payable quarterly. Diamondback has also entered into the following agreements with Rattler: Rattler’s Partnership Agreement In connection with the closing of the Rattler Offering, Rattler’s General Partner and Energen Resources Corporation entered into the first amended and restated agreement of limited partnership of Rattler, dated May 28, 2019 (the “Rattler Partnership Agreement”). The Rattler Partnership Agreement requires Rattler to reimburse Rattler’s General Partner for all direct and indirect expenses incurred or paid on Rattler’s behalf and all other expenses allocable to Rattler or otherwise incurred by Rattler’s General Partner in connection with operating Rattler’s business. The Rattler Partnership Agreement does not set a limit on the amount of expenses for which its 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 Rattler or on its behalf and expenses allocated to Rattler’s General Partner by its affiliates. Rattler’s General Partner is entitled to determine the expenses that are allocable to Rattler. For the three months and six months ended June 30, 2019 , the General Partner allocated $37,907 of such expenses to Rattler. Rattler’s Services and Secondment Agreement In connection with the closing of the Rattler Offering, Rattler entered into a services and secondment agreement with Diamondback, Diamondback E&P LLC, Rattler’s General Partner and Rattler LLC, dated as of May 28, 2019 (the “Services and Secondment Agreement”). Pursuant to the Services and Secondment Agreement, Diamondback and its subsidiaries second certain operational, construction, design and management employees and contractors of Diamondback to Rattler’s General Partner, Rattler and its subsidiaries, providing management, maintenance and operational functions with respect to Rattler’s assets. The Services and Secondment Agreement requires Rattler’s General Partner and Rattler to reimburse Diamondback for the cost of the seconded employees and contractors, including their wages and benefits. For the three months and six months ended June 30, 2019 , Rattler’s General Partner and Rattler paid Diamondback $1 million and $2 million under the Services and Secondment Agreement, respectively. Rattler’s Tax Sharing Agreement In connection with the closing of the Rattler Offering, Rattler LLC entered into a tax sharing agreement with Diamondback pursuant to which Rattler LLC will reimburse Diamondback for its share of state and local income and other taxes borne by Diamondback as a result of Rattler LLC’s results being included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on May 28, 2019. The amount of any such reimbursement is limited to the tax that Rattler LLC 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 Rattler LLC may be a member for this purpose, to owe less or no tax. In such a situation, Rattler LLC agreed to reimburse Diamondback for the tax Rattler LLC would have owed had the attributes not been available or used for Rattler LLC’s benefit, even though Diamondback had no cash expense for that period. For the three months and six months ended June 30, 2019 , Rattler accrued state income tax expense of $31,814 for its share of Texas margin tax for which Rattler’s share of Rattler LLC’s results are included in a combined tax return filed by Diamondback. Other Agreements Rattler has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, sole book runner and lead arranger. See Note 11 — Debt for a description of this credit facility. |
Real Estate Assets
Real Estate Assets | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Real Estate Disclosure | REAL ESTATE ASSETS The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Company’s real estate assets including intangible lease assets: Estimated Useful Lives June 30, 2019 December 31, 2018 (Years) (in millions) Buildings 30 $ 102 $ 103 Tenant improvements 15 4 4 Land N/A 2 1 Land improvements 15 1 1 Total real estate assets 109 109 Less: accumulated depreciation (6 ) (4 ) Total investment in land and buildings, net $ 103 $ 105 Weighted Average Useful Lives June 30, 2019 December 31, 2018 (Months) (in millions) In-place lease intangibles 45 $ 11 $ 11 Less: accumulated amortization (5 ) (3 ) In-place lease intangibles, net 6 8 Above-market lease intangibles 45 4 4 Less: accumulated amortization (1 ) (1 ) Above-market lease intangibles, net 3 3 Total intangible lease assets, net $ 9 $ 11 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment includes the following: June 30, December 31, 2019 2018 (in millions) Oil and natural gas properties: Subject to depletion $ 14,491 $ 12,629 Not subject to depletion 9,585 9,670 Gross oil and natural gas properties 24,076 22,299 Accumulated depletion (2,252 ) (1,599 ) Accumulated impairment (1,144 ) (1,144 ) Oil and natural gas properties, net 20,680 19,556 Midstream assets 828 700 Other property, equipment and land 150 147 Accumulated depreciation (55 ) (31 ) Property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 21,603 $ 20,372 Balance of costs not subject to depletion: Incurred in 2019 $ 255 Incurred in 2018 6,053 Incurred in 2017 2,499 Incurred in 2016 683 Incurred in 2015 95 Total not subject to depletion $ 9,585 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 $11 million and $7 million for the three months ended June 30, 2019 and 2018 , respectively, and $24 million and $14 million for the six months ended June 30, 2019 and 2018 , 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 years 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 the full cost 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 natural 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 revenue including estimated expenditures (based on current costs) to be incurred in developing and producing the proved reserves, 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. At June 30, 2019 , there was $81 million in exploration costs and development costs and $86 million in capitalized interest that was not subject to depletion. At December 31, 2018 , there were $68 million in exploration costs and development costs and $55 million in capitalized interest that was not subject to depletion. |
Asset Retirement Obligations
Asset Retirement Obligations | 6 Months Ended |
Jun. 30, 2019 | |
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: Six Months Ended June 30, 2019 2018 (in millions) Asset retirement obligations, beginning of period $ 136 $ 21 Additional liabilities incurred 2 2 Liabilities acquired 3 — Liabilities settled (4 ) (1 ) Accretion expense 5 1 Asset retirement obligations, end of period 142 23 Less current portion — 1 Asset retirement obligations - long-term $ 142 $ 22 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. The current portion of the asset retirement obligation liability is included in other accrued liabilities in the Company’s consolidated balance sheets. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS In October 2014, the Company obtained a 25% interest in HMW Fluid Management LLC (“HMW 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. On June 30, 2018, HMW LLC’s operating agreement was amended. As a result of the amendment, the Company no longer recognizes an equity investment in HMW LLC but instead consolidates its undivided interest in the salt water disposal assets owned by HMW LLC. In exchange for Rattler’s 25% investment, Rattler received a 50% undivided ownership interest in two of the four SWD wells and associated assets previously owned by HMW LLC. Rattler’s basis in the assets is equivalent to its basis in the equity investment in HMW LLC. On February 1, 2019, Rattler LLC obtained a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which is building a pipeline (the “EPIC project”) that, once operational, will transport crude and NGL across Texas for delivery into the Corpus Christi market. As of June 30, 2019 , Rattler’s total investment in the EPIC project was $72 million . During the six months ended June 30, 2019 , Rattler recorded an expense of $3,000 related to interest. The EPIC project is anticipated to be operational in the second half of 2019. On February 15, 2019, Rattler LLC obtained a 10% equity interest in Gray Oak Pipeline, LLC (“Gray Oak”), which is building a pipeline (the “Gray Oak project”) that, once operational, will transport crude from the Permian to Corpus Christi on the Texas Gulf Coast. As of June 30, 2019 , Rattler’s total investment in the Gray Oak project was $115 million . During the six months ended June 30, 2019 , Rattler recorded a net expense of $61,000 related to interest. The Gray Oak project is anticipated to be operational in the second half of 2019. On March 29, 2019, Rattler LLC executed a short-term promissory note to Gray Oak. The note allows for borrowing by Gray Oak of up to $123 million at 2.52% interest rate with a maturity date of March 31, 2022. During three months ended June 30, 2019 , Gray Oak borrowed and repaid $23 million . As of June 30, 2019 , there were no outstanding borrowings under the note. No impairments were recorded for Rattler’s equity method investments for the six months ended June 30, 2019 or 2018 . |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2019 2018 (in millions) 4.625% Notes due 2021 (1) $ 399 $ 400 7.320% Medium-term Notes, Series A, due 2022 (1) 21 20 4.750 % Senior Notes due 2024 1,250 1,250 5.375 % Senior Notes due 2025 800 800 7.350% Medium-term Notes, Series A, due 2027 (1) 11 10 7.125% Medium-term Notes, Series B, due 2028 (1) 108 100 DrillCo Agreement 43 — Unamortized debt issuance costs (23 ) (27 ) Unamortized premium costs 10 10 Revolving credit facility 1,639 1,490 Viper revolving credit facility 213 411 Rattler revolving credit facility 1 — Total long-term debt $ 4,472 $ 4,464 (1) At the effective time of the Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of these notes (the “Energen Notes”). Diamondback Notes 2024 Senior Notes On October 28, 2016, the Company issued $500 million in aggregate principal amount of 4.750% Senior Notes due 2024 (the “existing 2024 Senior Notes”). The existing 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 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 existing 2024 Senior Notes; provided, however, that the existing 2024 Senior Notes are not guaranteed by Viper, Viper’s General Partner, Viper LLC, Rattler, Rattler’s General Partner or Rattler LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. On September 25, 2018, the Company issued $750 million aggregate principal amount of new 4.750% Senior Notes due 2024 (the “New 2024 Notes”), which together with the existing Senior Notes are referred to as the 2024 Senior Notes, as additional notes under, and subject to the terms of, the 2024 Indenture. The New 2024 Notes were issued in a transaction exempt from the registration requirements under the Securities Act. The Company received approximately $741 million in net proceeds, after deducting the initial purchasers’ discount and its estimated offering expenses, but disregarding accrued interest, from the issuance of the New 2024 Notes. The Company used a portion of the net proceeds from the issuance of the New 2024 Notes to repay the outstanding borrowings under its revolving credit facility and used the balance for general corporate purposes, including funding a portion of the cash consideration for the acquisition of assets from Ajax Resources, LLC. 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 natural 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. As required under the terms of the registration rights agreement relating to the New 2024 Notes, on March 22, 2019, the Company filed with the SEC its registration Statement on Form S-4, as amended on July 3, 2019 (the “Exchange Offer S-4”), relating to the exchange offer of the New 2024 Notes for substantially identical notes registered under the Securities Act of 1933, as amended. The Exchange Offer S-4 was declared effective by the SEC on July 11, 2019 and the Company commenced the Exchange Offer on July 12, 2019. The Company expects to close the Exchange Offer in August 2019. 2025 Senior Notes On December 20, 2016, the Company issued $500 million in aggregate principal amount of 5.375% Senior Notes due 2025 (the “existing 2025 Senior Notes”). The existing 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 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 existing 2025 Senior Notes, provided, however, that the existing 2025 Senior Notes are not guaranteed by Viper, Viper’s General Partner, Viper LLC, Rattler, Rattler’s General Partner or Rattler LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. On January 29, 2018, the Company issued $300 million aggregate principal amount of new 5.375% Senior Notes due 2025 (the “New 2025 Notes”), which together with the existing 2025 Senior Notes are referred to as the 2025 Senior Notes, as additional notes under, and subject to the terms of, the 2025 Indenture. The New 2025 Notes were issued in a transaction exempt from the registration requirements under the Securities Act. The Company received approximately $308 million in net proceeds, after deducting the initial purchaser’s discount and its estimated offering expenses, but disregarding accrued interest, from the issuance of the New 2025 Notes. The Company used the net proceeds from the issuance of the New 2025 Notes to repay a portion of the outstanding borrowings under its revolving credit facility. 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 natural 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. Energen Notes At the effective time of the Merger, Energen became the Company’s wholly owned subsidiary and remained the issuer of $530 million aggregate principal amount of the Energen Notes, issued under an indenture dated September 1, 1996 with The Bank of New York as Trustee (the “Energen Indenture”). The Energen Notes consist of: (1) $400 million aggregate principal amount of 4.625% senior notes due on September 1, 2021, (2) $100 million of 7.125% notes due on February 15, 2028, (3) $20 million of 7.32% notes due on July 28, 2022, and (4) $10 million of 7.35% notes due on July 28, 2027. The Energen Notes are the senior unsecured obligations of Energen and, post-merger, Energen, as a wholly owned subsidiary of the Company, continues to be the sole issuer and obligor under the Energen Notes. The Energen Notes rank equally in right of payment with all other senior unsecured indebtedness of Energen, including any unsecured guaranties by Energen of the Company’s indebtedness and are effectively subordinated to Energen’s senior secured indebtedness, including Energen’s secured guaranty of all borrowings and other obligations under the Company’s revolving credit facility, to the extent of the value of the collateral securing such indebtedness. The Energen Indenture contains certain covenants that, subject to certain exceptions and qualifications, limit Energen’s ability to incur or suffer to exist liens, to enter into sale and leaseback transactions, to consolidate with or merge into any other entity, and to convey, transfer or lease its properties and assets substantially as an entirety to any person or entity. The Energen Indenture does not include a restriction on the payment of dividends. On November 29, 2018, Energen guaranteed the Company’s indebtedness under its credit facility and granted a lien on certain of its assets to secure such indebtedness and, on December 21, 2018, Energen’s subsidiaries guaranteed the Company’s indebtedness under its credit agreement and granted liens on certain of their assets to secure such indebtedness. As a result of such guarantees, under the terms of the 2024 Indenture and the 2025 Indenture, Energen also guaranteed the 2024 Senior Notes and the 2025 Senior Notes. The Company’s Credit Facility The Company and Diamondback O&G LLC, as borrower, entered into the second amended and restated credit agreement, dated November 1, 2013, as amended, with a syndicate of banks, including Wells Fargo, as administrative agent, and its affiliate Wells Fargo Securities, LLC, as sole book runner and lead arranger. On June 28, 2019, the credit agreement was amended pursuant to an eleventh amendment, which implemented certain changes to the credit facility for the period on and after the date on which the Company’s unsecured debt achieves an investment grade rating from two rating agencies and certain other conditions in the credit agreement are satisfied (the “investment grade changeover date”). The maximum credit amount available under the credit agreement is $5 billion , subject, prior to the investment grade changeover date, to a borrowing base based on the Company’s oil and natural gas reserves and other factors (the “borrowing base”) and the elected commitment amount. Prior to the investment grade changeover date, the borrowing base is scheduled to be redetermined, under certain circumstances, annually with an effective date of May 1st, and, under certain circumstances, semi-annually with effective dates of May 1st and November 1st. In addition, the Company and Wells Fargo each may request up to two interim redeterminations of the borrowing base during any 12 -month period. Effective June 28, 2019, the borrowing base was increased from $2.65 billion to $3.4 billion . On and after the investment grade changeover date, the maximum credit amount available under the credit agreement will be based solely on the commitments of the lenders, and will no longer be limited by the borrowing base. On the investment grade changeover date, the aggregate commitments of the lenders will be set at an amount equal to the aggregate elected commitment amount in effect on such date. As of June 30, 2019 , the aggregate elected commitment amount was $2.5 billion and the Company had approximately $1.6 billion of outstanding borrowings under its revolving credit facility and $861 million available for future borrowings under its revolving credit facility. Diamondback O&G LLC is the borrower under the credit agreement. As of June 30, 2019 , the credit agreement is guaranteed by the Company, Diamondback E&P LLC and Energen and its subsidiaries and will also be guaranteed by any of the Company’s future subsidiaries that are classified as restricted subsidiaries under the credit agreement. On and after the investment grade changeover date, the Company and Diamondback O&G LLC will no longer be required to cause all restricted subsidiaries to guarantee the credit agreement, and, in certain circumstances, may cause guaranties made by subsidiary guarantors to be released. Prior to the investment grade changeover date, the credit agreement is also secured by substantially all of the assets of the Company, Diamondback O&G LLC and the guarantors. On and after the investment grade changeover date, the credit agreement will be unsecured and all liens securing the credit facility will be released. The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by the Company that is equal to an alternate 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. Prior to the investment grade changeover date, the applicable margin ranges from 0.25% to 1.25% in the case of the alternate base rate and from 1.25% to 2.25% in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the least of the maximum credit amount, the borrowing base and the elected commitment amount. On and after the investment grade changeover date, the applicable margin will range from 0.125% to 1.0% per annum in the case of the alternate base rate and from 1.125% to 2.0% per annum in the case of LIBOR, in each case, depending on the pricing level, which in turn depends on the rating agencies’ rating of the Company’s unsecured debt. Prior to the investment grade changeover date, 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 commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. On and after the investment grade changeover date, the commitment fee will range from 0.125% to 0.350% per year on the unused portion of the commitment, based on the pricing level, which in turn depends on the rating agencies’ rating of the Company’s unsecured debt. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage). Prior to the investment grade changeover date, loan principal is required to be repaid (a) to the extent the loan amount exceeds the commitment or 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, 2022. On and after the investment grade changeover date, loan principal is required to be repaid (a) to the extent the loan amount exceeds the commitment due to any termination or reduction of the aggregate maximum credit amount and (b) at the maturity date of November 1, 2022. 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 (prior to the investment grade changeover date) Required Ratio Ratio of total net debt to EBITDAX, as defined in the credit agreement 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, applicable prior to the investment grade changeover date, allows for the issuance of unsecured debt in the form of senior or senior subordinated notes if no default would result from the incurrence of such debt after giving effect thereto and if, in connection with any such issuance, the borrowing base is reduced by 25% of the stated principal amount of each such issuance. On and after the investment grade changeover date, the financial covenants listed above will be replaced by a financial covenant that will require the Company to not permit the total net debt to capitalization ratio, as defined in the credit agreement, to exceed 65%. Additionally, on and after the investment grade changeover date, many of the negative covenants set forth in the credit agreement will no longer restrict the Company, Diamondback O&G LLC and their restricted subsidiaries (the “Restricted Group”), including the covenants that limit (i) equity repurchases, dividends and other restricted payments, (ii) redemptions of the senior or senior subordinated notes, (iii) making investments, (iv) dispositions of property, (v) transactions with affiliates, and (vi) entering into swap agreements. In addition, on and after the investment grade changeover date, (i) the debt covenant will no longer restrict incurrences of debt by Diamondback O&G LLC and guarantors, and will allow non-guarantor restricted subsidiaries to incur debt for borrowed money in an aggregate principal amount up to 15% of consolidated net tangible assets (as defined in the credit agreement) and (ii) the liens covenant will be modified to allow the Restricted Group to create liens if the aggregate amount of debt secured by such liens does not exceed 15% of consolidated net tangible assets. As of June 30, 2019 and December 31, 2018 , 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. Viper’s Credit Agreement On July 8, 2014, Viper entered into a secured revolving credit agreement with Wells Fargo, as administrative agent, certain other lenders and Viper LLC, Viper’s consolidated subsidiary, as guarantor. On May 8, 2018, Viper LLC assumed all liabilities as borrower under the credit agreement and Viper became a guarantor of the credit agreement. On July 20, 2018, Viper LLC, Viper, Wells Fargo and the other lenders amended and restated the credit agreement to reflect the assumption by Viper LLC. The credit agreement, as amended and restated, provides for a revolving credit facility in the maximum credit amount of $2 billion and a borrowing base based on Viper’s oil and natural gas reserves and other factors (the “borrowing base”) of $600 million , subject to scheduled semi-annual and other elective borrowing base redeterminations. The borrowing base is scheduled to be re-determined semi-annually with effective dates of May 1st and November 1st. In addition, Viper LLC and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12 -month period. Effective June 27, 2019, in connection with Viper’s spring 2019 redetermination, the borrowing base increased from $555 million to $600 million and, as of June 30, 2019 , Viper had $213 million of outstanding borrowings and $387 million available for future borrowings under its revolving credit facility. The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by Viper LLC that is equal to an alternate 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 0.75% to 1.75% per annum in the case of the alternate base rate and from 1.75% to 2.75% per annum in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the lesser of the maximum credit amount and the borrowing base. Viper LLC is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. 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 (i) to the extent the loan amount exceeds the commitment or the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (ii) 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 (iii) at the maturity date of November 1, 2022. The loan is secured by substantially all of the assets of Viper and Viper LLC. 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 net debt to EBITDAX, as defined in the credit agreement 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 $400 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. As of June 30, 2019 and December 31, 2018 , Viper 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 Viper’s credit agreement 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. Rattler’s Credit Agreement In connection with the Rattler Offering, Rattler, as parent, and Rattler LLC, as borrower, entered into a credit agreement, dated May 28, 2019, with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of banks, including Wells Fargo Bank, National Association, as lenders party thereto (the “Rattler credit agreement”). The Rattler credit agreement provides for a revolving credit facility in the maximum credit amount of $600 million . Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid at the maturity date of May 28, 2024. The loan is guaranteed by Rattler and Tall City, and is secured by substantially all of the assets of Rattler LLC, Rattler and Tall City. As of June 30, 2019 , Rattler LLC had $1 million of outstanding borrowings and $599 million available for future borrowings under the Rattler credit agreement. The outstanding borrowings under the Rattler credit agreement bear interest at a per annum rate elected by Rattler LLC that is based on the prime rate or LIBOR, in each case plus an applicable margin. The applicable margin ranges from 0.250% to 1.250% per annum for prime-based loans and 1.250% to 2.250% per annum for LIBOR loans, in each case depending on the Consolidated Total Leverage Ratio (as defined in the Rattler credit agreement). Rattler LLC is obligated to pay a quarterly commitment fee ranging from 0.250% to 0.375% per annum on the unused portion of the commitment, which fee is also dependent on the Consolidated Total Leverage Ratio. The Rattler credit agreement contains various affirmative and negative covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, distributions and other restricted payments, transactions with affiliates, and entering into certain swap agreements, in each case of Rattler, Rattler LLC and their restricted subsidiaries. The covenants are subject to exceptions set forth in the Rattler credit agreement, including an exception allowing Rattler LLC or Rattler to issue unsecured debt securities and an exception allowing payment of distributions if no default exists. The Rattler credit agreement may be used to fund capital expenditures, to finance working capital, for general company purposes, to pay fees and expenses related to the Rattler credit agreement, and to make distributions permitted under the Rattler credit agreement. The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below: Financial Covenant Required Ratio Consolidated Total Leverage Ratio commencing with the fiscal quarter ending September 30, 2019 Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Rattler credit agreement) is applicable, then not greater than 5.25 to 1.00) Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Rattler credit agreement) is made Not greater than 3.50 to 1.00 Consolidated Interest Coverage Ratio (as defined in the Rattler credit agreement) commencing with the fiscal quarter ending September 30, 2019 Not less than 2.50 to 1.00 For purposes of calculating the financial maintenance covenants prior to the fiscal quarter ending June 30, 2020, EBITDA (as defined in the Rattler credit agreement) will be annualized based on the actual EBITDA for the preceding fiscal quarters starting with the fiscal quarter ending September 30, 2019. As of June 30, 2019 , each of Rattler and Rattler LLC were in compliance with all financial covenants under the Rattler credit agreement. The lenders may accelerate all of the indebtedness under the Rattler credit agreement upon the occurrence and during the continuance of any event of default. The Rattler credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change in control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial maintenance covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. With certain specified exceptions, the terms and provisions of the Rattler credit agreement generally may be amended with the consent of the lenders holding a majority of the outstanding loans or commitments to lend. Alliance with Obsidian Resources, L.L.C. The Company entered into a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. (“CEMOF”) to fund oil and natural gas development. Funds managed by CEMOF and its affiliates have agreed to commit to funding certain costs out of CEMOF’s net production revenue and, for a period of time, to the extent not funded by such revenue, up to an additional $300 million , to fund drilling programs on locations provided by the Company. Subject to adjustments depending on asset characteristics and return expectations of the selected drilling plan, CEMOF will fund up to 85% of the costs associated with new wells drilled under the DrillCo Agreement and is expected to receive an 80% working interest in these wells until it reaches certain payout thresholds equal to a cumulative 9% and then 13% internal rate of return. Upon reaching the final internal rate of return target, CEMOF’s interest will be reduced to 15% , while the Company’s interest will increase to 85% . As of June 30, 2019 , CEMOF had funded approximately $30 million . As of June 30, 2019 , eight joint wells have been drilled and completed. |
Capital Stock and Earnings Per
Capital Stock and Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE Diamondback did not complete any equity offerings during the six months ended June 30, 2019 and June 30, 2018 . Viper’s Equity Offering On March 1, 2019, Viper completed an underwritten public offering of 10,925,000 common units, which included 1,425,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, the Company owned approximately 54% of Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million , after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC in turn used the net proceeds to repay a portion of the outstanding borrowings under its revolving credit facility and finance acquisitions during the period. Rattler’s Initial Public Offering Please see Note 6—Rattler Midstream LP for information regarding Rattler’s IPO. Stock Repurchase Program In May 2019, the Company’s board of directors approved a stock repurchase program to acquire up to $2 billion of the Company’s outstanding common stock through December 31, 2020. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. During the three months ended June 30, 2019 , the Company repurchased approximately $104 million of common stock under this repurchase program. As of June 30, 2019 , $1.9 billion remained available for use to repurchase shares under the Company's common stock repurchase program. Earnings Per Share The Company’s basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share include the effect of potentially dilutive shares outstanding for the period. Additionally, for the diluted earnings per share computation, the per share earnings of Viper are included in the consolidated earnings per share computation based on the consolidated group’s holdings of the subsidiary. A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 ($ in millions, except per share amounts, shares in thousands) Net income attributable to common stock $ 349 $ 219 $ 359 $ 382 Weighted average common shares outstanding Basic weighted average common units outstanding 164,839 98,614 164,846 98,584 Effect of dilutive securities: Potential common shares issuable 180 183 407 236 Diluted weighted average common shares outstanding 165,019 98,797 165,253 98,820 Basic net income attributable to common stock $ 2.12 $ 2.22 $ 2.18 $ 3.87 Diluted net income attributable to common stock $ 2.11 $ 2.22 $ 2.17 $ 3.87 The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Restricted stock units 60 32 20 — |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Based Compensation | EQUITY-BASED COMPENSATION The following table presents the effects of the equity compensation plans and related costs: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) General and administrative expenses $ 9 $ 6 $ 23 $ 13 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties 4 2 10 5 Restricted Stock Units The following table presents the Company’s restricted stock units activity under the Equity Plan during the six months ended June 30, 2019 : Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2018 324,224 $ 116.01 Granted 450,297 $ 107.08 Vested (177,537 ) $ 109.08 Forfeited (57,146 ) $ 108.93 Unvested at June 30, 2019 539,838 $ 111.59 The aggregate fair value of restricted stock units that vested during the six months ended June 30, 2019 and 2018 was $19 million and $10 million , respectively. As of June 30, 2019 , the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $37 million . Such cost is expected to be recognized over a weighted-average period of 1.1 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 three -year performance period. In March 2019, eligible employees received performance restricted stock unit awards totaling 199,723 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, 2019 to December 31, 2021 and cliff vest at December 31, 2021. In March 2019, eligible employees received performance restricted stock unit awards totaling 32,958 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, 2019 to December 31, 2021 and vest in five equal installments beginning on March 1, 2025. 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 March 2019 awards. 2019 Grant-date fair value (3-year vesting) $ 137.22 Grant-date fair value (5-year vesting) $ 132.48 Risk-free rate 2.55 % Company volatility 35.00 % The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the six months ended June 30, 2019 : Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2018 196,203 $ 169.76 Granted 356,227 $ 131.30 Vested (123,546 ) $ 121.41 Forfeited (45,868 ) $ 155.68 Unvested at June 30, 2019 (1) 383,016 $ 151.27 (1) A maximum of 766,032 units could be awarded based upon the Company’s final TSR ranking. As of June 30, 2019 , the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $37 million . Such cost is expected to be recognized over a weighted-average period of 2.5 years . Stock Appreciation Rights In connection with the Energen Merger, each outstanding stock appreciation right in respect of Energen common stock that was outstanding immediately prior to the effective time of the Merger was converted into a fully vested stock appreciation right in respect of such number of whole shares of Diamondback common stock (rounded down to the nearest whole share) equal to the product of (A) the total number of shares of Energen common stock subject to such stock appreciation right immediately prior to the effective time of the Merger multiplied by (B) the exchange ratio, at an exercise price per share of Diamondback common stock (rounded up to the nearest whole cent) equal to the quotient of (A) the exercise price per share of Energen common stock of such stock appreciation right immediately prior to the effective time of the Merger divided by (B) the exchange ratio. These awards have a three-year requisite service period. The following table presents a summary of stock appreciation rights activity during the six months ended June 30, 2019 : Shares Weighted Average Exercise Price Outstanding at December 31, 2018 57,721 $ 22.12 Exercised (9,888 ) $ 73.68 Expired (3,229 ) $ 102.92 Outstanding at June 30, 2019 44,604 $ 28.90 Stock Options In connection with the Energen Merger, each option to purchase shares of Energen common stock that was outstanding immediately prior to the effective time of the Merger was converted into a fully vested option to purchase such number of whole shares of Diamondback common stock (rounded down to the nearest whole share) equal to the product of (A) the total number of shares of Energen common stock subject to such option immediately prior to the effective time of the Merger multiplied by (B) the exchange ratio, at an exercise price per share of Diamondback common stock (rounded up to the nearest whole cent) equal to the quotient of (A) the exercise price per share of Energen common stock of such option immediately prior to the effective time of the Merger divided by (B) the exchange ratio. The exercise price of stock options granted may not be less than the market value of the stock at the date of grant. The Company estimates the fair values of stock options granted using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the contractual term of the awards at effective time of the merger. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant. All such amounts represent the weighted-average amounts for each year. Weighted Average Exercise Remaining Intrinsic Options Price Term Value (in years) (in millions) Outstanding at December 31, 2018 332,387 $ 95.04 Exercised (70,722 ) $ 80.05 Outstanding at June 30, 2019 261,665 $ 89.19 2.18 $ 5 Vested and Expected to vest at June 30, 2019 261,665 $ 89.19 2.18 $ 5 Exercisable at June 30, 2019 261,665 $ 89.19 2.18 $ 5 Viper Phantom Units Under the Viper Energy Partners LP Long Term Incentive Plan (“Viper LTIP”), the Board of Directors of the General Partner is authorized to issue phantom units to eligible employees. Viper estimates the fair value of phantom units as the closing price of Viper’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 Viper for each phantom unit. The following table presents the phantom unit activity under the Viper LTIP for the six months ended June 30, 2019 : Phantom Units Weighted Average Grant-Date Unvested at December 31, 2018 125,053 $ 23.44 Granted 17,601 $ 33.54 Vested (60,133 ) $ 21.38 Forfeited (1,028 ) $ 42.50 Unvested at June 30, 2019 81,493 $ 26.91 The aggregate fair value of phantom units that vested during the six months ended June 30, 2019 was $1 million . As of June 30, 2019 , the unrecognized compensation cost related to unvested phantom units was $1 million . Such cost is expected to be recognized over a weighted-average period of 0.85 years . Rattler Long-Term Incentive Plan On May 22, 2019, the board of directors of Rattler’s General Partner adopted the Rattler Midstream LP Long Term Incentive Plan (“Rattler LTIP”), for employees, consultants and directors of Rattler’s General Partner and any of its affiliates, including Diamondback, who perform services for Rattler. The Rattler LTIP provides for the grant of unit options, unit appreciation rights, restricted units, unit awards, phantom units, distribution equivalent rights, cash awards, performance awards, other unit-based awards and substitute awards. Under the Rattler LTIP, the board of directors of Rattler’s General Partner is authorized to issue phantom units to eligible employees and non-employee directors. Rattler estimates the fair value of phantom units as the closing price of Rattler’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 to one common unit of Rattler for each phantom unit. The recipients are also entitled to distribution equivalent rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one phantom unit between the grant date and the vesting date. The following table presents the phantom unit activity under the Rattler LTIP for the six months ended June 30, 2019 : Phantom Weighted Average Unvested at May 28, 2019 — $ — Granted 2,248,572 $ 19.20 Unvested at June 30, 2019 2,248,572 $ 19.20 As of June 30, 2019 , the unrecognized compensation cost related to unvested phantom units was $42 million . Such cost is expected to be recognized over a weighted-average period of 2.9 years . |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Advisory Services Agreement - Viper In connection with the closing of the Viper Offering, Viper and Viper’s General Partner entered into an advisory services agreement (the “Viper Advisory Services Agreement”) with Wexford, dated as of June 23, 2014, under which Wexford provided Viper and Viper’s General Partner with general financial and strategic advisory services related to the business in return for an annual fee of $500,000 , plus reasonable out-of-pocket expenses. The Advisory Services Agreement was terminated on November 12, 2018 and Viper’s payment obligation ended in June 2019. For the three months and six months ended June 30, 2019 and 2018 , Viper did no t pay any amounts under the Advisory Services Agreement. Lease Bonus - Viper During the three months ended June 30, 2019 , the Company paid Viper $39,000 in lease bonus payments to extend the term of one lease, reflecting an average bonus of $1,800 per acre. During the six months ended June 30, 2019 , the Company paid Viper $39,198 in lease bonus payments to extend the term of two leases, reflecting an average bonus of $1,686 per acre and $3,101 in lease bonus payments for two new leases, reflecting an average bonus of $14,766 per acre. During the three months and six months ended June 30, 2018 , the Company did no t pay Viper any lease bonus payments. Rattler Offering Please see Note 6—Rattler Midstream LP for information regarding relationships between the Company and Rattler. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES The Company’s effective income tax rates were 22.3% and (2.2)% for the three months ended June 30, 2019 and 2018 , respectively, and 14.8% and 7.8% for the six months ended June 30, 2019 and 2018 , respectively. Total income tax expense for the three and six months ended June 30, 2019 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, the impact of permanent differences between book and taxable income, and, for the six months ended June 30, 2019 , the revision of estimated deferred taxes recognized by Viper as a result of its change in tax status. The Company recorded a discrete income tax expense of less than $1 million related to equity-based compensation for the six months ended June 30, 2019 and a discrete benefit of approximately $35 million during the three months ended March 31, 2019, related to the revision of estimated deferred taxes on Viper’s investment in Viper LLC arising from the change in Viper’s tax status. Viper revised its estimate of deferred taxes on Viper’s investment in Viper LLC based on information regarding unitholders’ tax basis which, under IRS reporting rules, was not available until the current period. Total income tax expense for the three and six months ended June 30, 2018 differed from amounts computed by applying the federal statutory rate to pre-tax income primarily due to (i) deferred taxes recognized by Viper as a result of its change in tax status, (ii) state income taxes, (iii) net income attributable to the noncontrolling interest, and (iv) the impact of permanent differences between book and taxable income. As discussed further in Note 6 , on May 28, 2019, Rattler completed its initial public offering. Even though Rattler is organized as a limited partnership under state law, Rattler is subject to U.S. federal and state income tax at corporate rates, subsequent to the effective date of Rattler’s election to be treated as a corporation for U.S. federal income tax purposes. As such, Rattler’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. As discussed further in Note 5 , on March 29, 2018, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity, which change became effective on May 10, 2018. The transactions undertaken in connection with the change in Viper’s tax status were not taxable to the Company. Subsequent to Viper’s change in tax status, Viper’s provision for income taxes is based on its estimated annual effective tax rate plus discrete items. As such, Viper’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
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 three-way costless collars with corresponding put, short 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 Magellan East Houston oil price and the WTI Cushing price and for the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. Under the Company’s costless collar contracts, a three-way collar is a combination of three options: a ceiling call, a floor put, and a short put. The counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the ceiling price to a maximum of the difference between the floor price and the short put price. The Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the ceiling price. If the settlement price is between the floor and the ceiling 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 (Cushing and Magellan East Houston) and ICE Brent pricing, and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing and liquids derivative settlements based on Mt. Belvieu pricing. By using derivative instruments to economically 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 June 30, 2019 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2019 2020 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps - WTI Cushing 5,512,000 $ 61.15 2,555,000 $ 59.37 Oil Swaps - WTI Magellan East Houston 1,472,000 $ 65.88 2,190,000 $ 62.80 Oil Swaps - BRENT 1,288,000 $ 67.79 730,000 $ 66.00 Oil Basis Swaps - WTI Cushing 8,280,000 $ (5.52 ) 15,120,000 $ (1.21 ) Natural Gas Swaps - Henry Hub 12,880,000 $ 3.06 — $ — Natural Gas Basis Swaps - Waha Hub 12,880,000 $ (1.56 ) 18,250,000 $ (1.67 ) Natural Gas Liquid Swaps - Mont Belvieu 1,380,000 $ 27.30 — $ — 2019 2020 Oil Three-Way Collars WTI Cushing Brent WTI Magellan East Houston WTI Cushing Brent WTI Magellan East Houston Volume (Bbls) 2,880,000 1,288,000 920,000 3,650,000 6,588,000 5,110,000 Short put price (per Bbl) $ 35.94 $ 52.14 $ 50.00 $ 45.00 $ 50.56 $ 50.00 Floor price (per Bbl) $ 45.94 $ 62.14 $ 60.00 $ 55.00 $ 60.56 $ 60.00 Ceiling price (per Bbl) $ 61.65 $ 78.70 $ 66.10 $ 67.06 $ 74.08 $ 68.81 Put Spreads Volume (Bbls) 1,715,500 1,222,750 Put - Sell price (per Bbl) $ 45.00 $ 50.00 Put - Buy price (per Bbl) $ 55.00 $ 60.00 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 June 30, 2019 and December 31, 2018 . June 30, 2019 December 31, 2018 (in millions) Gross amounts of assets presented in the Consolidated Balance Sheet $ 52 $ 231 Net amounts of assets presented in the Consolidated Balance Sheet 52 231 Gross amounts of liabilities presented in the Consolidated Balance Sheet 33 15 Net amounts of liabilities presented in the Consolidated Balance Sheet $ 33 $ 15 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: June 30, 2019 December 31, 2018 (in millions) Current assets: derivative instruments $ 29 $ 231 Noncurrent assets: derivative instruments 23 — Total assets $ 52 $ 231 Current liabilities: derivative instruments $ 25 $ — Noncurrent liabilities: derivative instruments 8 15 Total liabilities $ 33 $ 15 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 consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Change in fair value of open non-hedge derivative instruments $ 89 $ (14 ) $ (196 ) $ (14 ) Gain (loss) on settlement of non-hedge derivative instruments 5 (45 ) 22 (77 ) Gain (loss) on derivative instruments $ 94 $ (59 ) $ (174 ) $ (91 ) |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
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. The Company estimates the fair values of proved oil and natural gas properties assumed in business combinations using discounted cash flow techniques and based on market assumptions as to the future commodity prices, internal estimates of future quantities of oil and natural gas reserves, future estimated rates of production, expected recovery rates and risk-adjustment discounts. The estimated fair values of unevaluated oil and natural gas properties were based on the location, engineering and geological studies, historical well performance, and applicable mineral lease terms. Given the unobservable nature of the inputs, the estimated fair values of oil and natural gas properties assumed is deemed to use Level 3 inputs. The asset retirement obligations assumed as part of business combinations are estimated using the same assumptions and methodology as described below. The Company estimates asset retirement obligations pursuant to the provisions of the Financial Accounting Standards Board issued Accounting Standards Codification Topic 410, “Asset Retirement and Environmental Obligations”. The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with the future plugging and abandonment of wells and related facilities. Given the unobservable nature of the inputs, including plugging costs and useful lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. See Note 9 —Asset Retirement Obligations for further discussion of the Company’s asset retirement obligations. 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 and Viper’s cost method investment. The fair value of Viper’s investment is determined using quoted market prices. These valuations are Level 1 inputs. 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 June 30, 2019 and December 31, 2018 .: June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Assets: Investment $ 18 $ — $ — $ 14 $ — $ — Fixed price swaps — 19 — — 216 — Liabilities: Fixed price swaps $ — $ — $ — $ — $ — $ — The following table summarizes the changes in fair value of Viper’s cost method investment during the periods presented: (in millions) Value at December 31, 2017 $ 34 Impact of adoption of Accounting Standards Update 2016-01 (19 ) Gain on investment 5 Value at June 30, 2018 $ 20 Value at December 31, 2018 $ 14 Gain on investment 4 Value at June 30, 2019 $ 18 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: June 30, 2019 December 31, 2018 Carrying Carrying Amount Fair Value Amount Fair Value (in millions) Debt: Revolving credit facility $ 1,639 $ 1,639 $ 1,490 $ 1,490 4.625% Notes due 2021 (1) $ 399 $ 410 $ 400 $ 393 7.320% Medium-term Notes, Series A, due 2022 (1) $ 21 $ 22 $ 20 $ 21 4.750% Senior Notes due 2024 $ 1,250 $ 1,289 $ 1,250 $ 1,204 5.375% Senior Notes due 2025 $ 800 $ 841 $ 800 $ 782 7.350% Medium-term Notes, Series A, due 2027 (1) $ 11 $ 11 $ 10 $ 11 7.125% Medium-term Notes, Series B, due 2028 (1) $ 108 $ 111 $ 100 $ 102 Viper revolving credit facility $ 213 $ 213 $ 411 $ 411 Rattler revolving credit facility $ 1 $ 1 $ — $ — DrillCo Agreement $ 43 $ 43 $ — $ — (1) At the effective time of the Energen Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of the Energen Notes. These notes were marked to fair value with the excess being amortized. The fair value of the revolving credit facility, Viper’s revolving credit facility and Rattler’s revolving credit facility approximates their 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 and the Energen Notes was determined using the June 30, 2019 quoted market price, a Level 1 classification in the fair value hierarchy. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company leases certain drilling rigs, facilities, compression and other equipment. As discussed in Note 2—Summary of Significant Accounting Policies, the Company adopted ASU 2016-02, ASU 2018-11 and ASU 2019-01 on January 1, 2019 using the optional transition method of adoption. The Company elected a package of practical expedients that together allows an entity to not reassess (i) whether a contract is or contains a lease, (ii) lease classification and (iii) initial direct costs. In addition, the Company elected the following practical expedients: (i) to not reassess certain land easements; (ii) to not apply the recognition requirements under the standard to short-term leases; (iii) to not reassess lease terms on leases entered into prior to the effective date of adoption; and (iv) lessor accounting policy election to exclude lessor costs paid directly by the lessee. For leases where the Company is the lessee, the Company recorded a total of $13 million in right-of-use assets and corresponding new lease liabilities in other on its Condensed Consolidated Balance Sheet representing the present value of its future operating lease payments. Adoption of the standards did not require an adjustment to the opening balance of retained earnings. The discount rate used to determine present value was based on the rate of interest that the Company estimated it would have to pay to borrow (on a collateralized-basis over a similar term) an amount equal to the lease payments in a similar economic environment as of January 1, 2019. The Company is required to reassess the discount rate for any new and modified lease contracts as of the lease effective date. The right-of-use assets and lease liabilities recognized upon adoption of ASU 2016-02 were based on the lease classifications, lease commitment amounts and terms recognized under the prior lease accounting guidance. Leases with an initial term of twelve months or less are considered short-term leases and are not recorded on the balance sheet. The following table summarizes operating lease costs for the three months and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Operating lease costs $ 8 $ 12 For the six months ended June 30, 2019 , cash paid for operating lease liabilities, and reported in cash flows provided by operating activities on the Company's Statement of Condensed Consolidated Cash Flows, was $12 million . During the six months ended June 30, 2019 , the Company recorded an additional $13 million of right-of-use assets in exchange for new lease liabilities. The operating lease right-of-use assets were reported in other assets and the current and noncurrent portions of the operating lease liabilities were reported in other accrued liabilities and other long-term liabilities, respectively, on the Condensed Consolidated Balance Sheet. As of June 30, 2019 , the operating right-of-use assets were $23 million and operating lease liabilities were $23 million , of which $17 million was classified as current. As of June 30, 2019 , the weighted average remaining lease term was 1.5 years and the weighted average discount rate was 8.4% . Schedule of Operating Lease Liability Maturities . The following table summarizes undiscounted cash flows owed by the Company to lessors pursuant to contractual agreements in effect as of June 30, 2019 : As of June 30, 2019 (in millions) 2019 (July - December) $ 14 2020 7 2021 3 2022 1 2023 — Thereafter — Total lease payments 25 Less: interest 2 Present value of lease liabilities $ 23 For leases in which the Company is the lessor, the Company (i) retained classification of our historical leases as we are not required to reassess classification upon adoption of the new standard, (ii) expensed indirect leasing costs in connection with new or extended tenant leases, the recognition of which would have been deferred under prior accounting guidance and (iii) aggregated revenue from our lease components and non-lease components (comprised of tenant expense reimbursements) into revenue from rental properties. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is a party to various legal proceedings, disputes and claims arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Company, cannot be predicted with certainty, the Company believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. The Company’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Company’s assessment. The Company records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen On July 1, 2019, the Company completed its divestiture of 103,750 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in the Merger, for an aggregate sale price of $285 million . This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate. Second Quarter 2019 Dividend Declaration On August 5, 2019 , the Board of Directors of the Company declared a cash dividend for the second quarter of 2019 of $0.1875 per share of common stock, payable on August 26, 2019 to its stockholders of record at the close of business on August 16, 2019 . Commodity Contracts Subsequent to June 30, 2019 , the Company entered into new fixed price basis 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 (Cushing and Magellan East Houston) and Crude Oil Brent. The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2019 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) January 2020 - December 2020 Oil Swaps - WTI 366,000 $ 57.15 Oil Swaps - BRENT 732,000 $ 63.00 Gas Swap Double-Up - Waha Hub January 2020 - December 2020 Volume (Mcf) 10,980,000 Swap price (per Mcf) $ 1.70 Option price $ 1.70 January 2020 - December 2020 Oil Three-Way Collars WTI Volume (Bbls) 366,000 Short put price (per Bbl) $ 45.00 Floor price (per Bbl) $ 55.00 Ceiling price (per Bbl) $ 62.35 Pending Drop-Down and Anticipated Increase in the Borrowing Base under Viper LLC’s Revolving Credit Facility Subsequent to the end of the second quarter of 2019, Viper entered into a definitive purchase agreement to acquire certain mineral and royalty interests from the Company for 18.3 million of Viper’s newly-issued Class B units, 18.3 million newly-issued units of Viper LLC and $150 million in cash, subject to certain adjustments (the “Pending Drop-Down”). Based on the volume weighted average sales price of Viper’s common units for the 10-trading day period ended July 26, 2019 of approximately $30.07 , the transaction is valued at $700 million . The mineral and royalty interests being acquired in the Pending Drop-Down represent approximately 5,090 net royalty acres across the Midland and Delaware Basins, of which over 95% are operated by the Company, and have an average net royalty interest of approximately 3.2% . After giving pro forma effect to the Pending Drop-Down, Viper’s mineral interests at June 30, 2019 would have totaled 20,960 net royalty acres. Viper anticipates closing the Pending Drop-Down during the fourth quarter of 2019. However, the Pending Drop-Down remains subject to completion of due diligence and satisfaction of other closing conditions. There can be no assurance that Viper will complete the Pending Drop-Down on the terms contemplated in this report or at all. Viper intends to finance the cash portion of the purchase price of the Pending Drop-Down through a combination of cash on hand and borrowings under Viper LLC’s revolving credit facility. Upon closing of the Pending Drop-Down, Viper anticipates that the borrowing base under Viper’s revolving credit facility will be increased by $125 million to $725 million from $600 million at June 30, 2019. |
Report of Business Segments (No
Report of Business Segments (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Segment Reporting Disclosure [Text Block] | REPORT OF BUSINESS SEGMENTS The Company reports its operations in two business segments: (i) the exploration and production segment, which is engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas and (ii) the midstream operations segment. The following tables summarize the results of the Company's business segments during the periods presented: Exploration and Production Midstream Services Eliminations Total Three Months Ended June 30, 2019: (in millions) Third-party revenues $ 1,003 $ 18 $ — $ 1,021 Intersegment revenues — 93 (93 ) — Total revenues 1,003 111 (93 ) 1,021 Income from operations 388 56 (33 ) 411 Other income (expense) 48 — (1 ) 47 Provision for (benefit from) income taxes 101 1 — 102 Net income attributable to non-controlling interest 7 15 (15 ) 7 Net income attributable to Diamondback Energy $ 328 $ 40 $ (19 ) $ 349 Total assets $ 22,138 $ 1,187 $ (154 ) $ 23,171 Exploration and Production Midstream Services Eliminations Total Three Months Ended June 30, 2018: (in millions) Third-party revenues $ 516 $ 11 $ — $ 527 Intersegment revenues — 39 (39 ) — Total revenues 516 50 (39 ) 527 Income from operations 278 24 (21 ) 281 Other income (expense) 17 (4 ) — 13 Provision for (benefit from) income taxes (7 ) — — (7 ) Net income attributable to non-controlling interest 82 — — 82 Net income attributable to Diamondback Energy $ 220 $ 20 $ (21 ) $ 219 Total assets $ 8,473 $ 521 $ (40 ) $ 8,954 Exploration and Production Midstream Services Eliminations Total Six Months Ended June 30, 2019: (in millions) Third-party revenues $ 1,845 $ 40 $ — $ 1,885 Intersegment revenues — 167 (167 ) — Total revenues 1,845 207 (167 ) 1,885 Income from operations 684 106 (60 ) 730 Other income (expense) (260 ) — (2 ) (262 ) Provision for (benefit from) income taxes 68 1 — 69 Net income attributable to non-controlling interest 40 15 (15 ) 40 Net income attributable to Diamondback Energy $ 316 $ 90 $ (47 ) $ 359 Total assets $ 22,138 $ 1,187 $ (154 ) $ 23,171 Exploration and Production Midstream Services Eliminations Total Six Months Ended June 30, 2018: (in millions) Third-party revenues $ 983 $ 23 $ — $ 1,006 Intersegment revenues — 60 (60 ) — Total revenues 983 83 (60 ) 1,006 Income from operations 539 41 (32 ) 548 Other income (expense) (26 ) (3 ) — (29 ) Provision for (benefit from) income taxes 40 — — 40 Net income attributable to non-controlling interest 97 — — 97 Net income attributable to Diamondback Energy $ 376 $ 38 $ (32 ) $ 382 Total assets $ 8,473 $ 521 $ (40 ) $ 8,954 |
Guarantor Financial Statements
Guarantor Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Financial Statements | GUARANTOR FINANCIAL STATEMENTS As of June 30, 2019 , Diamondback E&P LLC, Diamondback O&G LLC and Energen Corporation and its subsidiaries (the “Guarantor Subsidiaries”) are guarantors under the 2024 Indenture and the 2025 Indenture. In connection with the issuance of the 2024 Senior Notes and the 2025 Senior Notes, Viper, Viper’s General Partner, Viper LLC and Rattler LLC were designated as Non-Guarantor Subsidiaries. The following presents condensed consolidated financial information for the Company (which for purposes of this Note 22 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. The Rattler entities were not guarantors under the 2024 Senior Notes or the 2025 Senior Notes for the previous periods presented; therefore, the schedules that follow have been adjusted to reflect this correction of an immaterial change. Condensed Consolidated Balance Sheet June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 295 $ 15 $ 16 $ — $ 326 Accounts receivable, net — 468 49 — 517 Accounts receivable - related party — — 9 (9 ) — Intercompany receivable 4,383 1,198 — (5,581 ) — Inventories — 31 13 — 44 Derivative instruments — 29 — — 29 Prepaid expenses and other 1 50 5 — 56 Total current assets 4,679 1,791 92 (5,590 ) 972 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 22,388 1,842 (154 ) 24,076 Midstream assets — 6 822 — 828 Other property, equipment and land — 56 94 — 150 Accumulated depletion, depreciation, amortization and impairment — (3,123 ) (325 ) (3 ) (3,451 ) Net property and equipment — 19,327 2,433 (157 ) 21,603 Funds held in escrow — — 13 — 13 Equity method investments — — 187 — 187 Derivative instruments — 23 — — 23 Investment in subsidiaries 12,008 — — (12,008 ) — Deferred tax asset — — 150 — 150 Investment in real estate, net — 2 110 — 112 Other assets — 88 23 — 111 Total assets $ 16,687 $ 21,231 $ 3,008 $ (17,755 ) $ 23,171 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 204 $ 17 $ (17 ) $ 204 Intercompany payable 134 4,881 — (5,015 ) — Accrued capital expenditures — 505 68 — 573 Other accrued liabilities 14 192 33 — 239 Revenues and royalties payable — 139 — — 139 Derivative instruments — 25 — — 25 Total current liabilities 148 5,946 118 (5,032 ) 1,180 Long-term debt 2,036 2,222 214 — 4,472 Derivative instruments — 8 — — 8 Asset retirement obligations — 137 5 — 142 Deferred income taxes 499 1,408 2 — 1,909 Other long-term liabilities — 10 — — 10 Total liabilities 2,683 9,731 339 (5,032 ) 7,721 Commitments and contingencies Stockholders’ equity 14,004 11,500 1,526 (13,026 ) 14,004 Non-controlling interest — — 1,143 303 1,446 Total equity 14,004 11,500 2,669 (12,723 ) 15,450 Total liabilities and equity $ 16,687 $ 21,231 $ 3,008 $ (17,755 ) $ 23,171 Condensed Consolidated Balance Sheet December 31, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 84 $ 100 $ 31 $ — $ 215 Accounts receivable — 351 41 — 392 Accounts receivable - related party — — 9 (9 ) — Intercompany receivable 4,469 195 — (4,664 ) — Inventories — 28 9 — 37 Derivative instruments — 231 — — 231 Prepaid expenses and other 3 43 4 — 50 Total current assets 4,556 948 94 (4,673 ) 925 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 20,586 1,717 (4 ) 22,299 Midstream assets — 284 416 — 700 Other property, equipment and land — 71 76 — 147 Accumulated depletion, depreciation, amortization and impairment — (2,486 ) (276 ) (12 ) (2,774 ) Net property and equipment — 18,455 1,933 (16 ) 20,372 Equity method investments — 1 — — 1 Investment in subsidiaries 11,576 112 (11,688 ) — Investment in real estate, net — 12 104 — 116 Deferred tax asset — — 97 — 97 Other assets — 68 17 — 85 Total assets $ 16,132 $ 19,596 $ 2,245 $ (16,377 ) $ 21,596 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 128 $ — $ — $ 128 Intercompany payable — 4,673 — (4,673 ) — Accrued capital expenditures — 495 — — 495 Other accrued liabilities 14 170 69 — 253 Revenues and royalties payable — 143 — — 143 Total current liabilities 14 5,609 69 (4,673 ) 1,019 Long-term debt 2,036 2,017 411 — 4,464 Derivative instruments — 15 — — 15 Asset retirement obligations — 136 — — 136 Deferred income taxes 382 1,403 — — 1,785 Other long-term liabilities — 10 — — 10 Total liabilities 2,432 9,190 480 (4,673 ) 7,429 Commitments and contingencies Stockholders’ equity 13,700 10,406 1,070 (11,476 ) 13,700 Non-controlling interest — — 695 (228 ) 467 Total equity 13,700 10,406 1,765 (11,704 ) 14,167 Total liabilities and equity $ 16,132 $ 19,596 $ 2,245 $ (16,377 ) $ 21,596 Condensed Consolidated Statement of Operations Three Months Ended June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 881 $ — $ 66 $ 947 Natural gas sales — (8 ) — (1 ) (9 ) Natural gas liquid sales — 56 — 6 62 Royalty income — — 70 (70 ) — Lease bonus — — 2 — 2 Midstream services — — 108 (92 ) 16 Other operating income — — 4 (1 ) 3 Total revenues — 929 184 (92 ) 1,021 Costs and expenses: Lease operating expenses — 156 — (29 ) 127 Production and ad valorem taxes — 60 4 — 64 Gathering and transportation — 20 — (3 ) 17 Midstream services — — 42 (25 ) 17 Depreciation, depletion and amortization — 324 27 8 359 General and administrative expenses 9 12 5 (4 ) 22 Asset retirement obligation accretion — 3 — — 3 Other operating expense — — 1 — 1 Total costs and expenses 9 575 79 (53 ) 610 Income (loss) from operations (9 ) 354 105 (39 ) 411 Other income (expense) Interest expense, net (11 ) (36 ) (2 ) — (49 ) Other income (expense), net 1 3 — (2 ) 2 Gain on derivative instruments, net — 94 — — 94 Total other income (expense), net (10 ) 61 (2 ) (2 ) 47 Income (loss) before income taxes (19 ) 415 103 (41 ) 458 Provision for income taxes 100 — 2 — 102 Net income (loss) (119 ) 415 101 (41 ) 356 Net income attributable to non-controlling interest — — 60 (53 ) 7 Net income (loss) attributable to Diamondback Energy, Inc. $ (119 ) $ 415 $ 41 $ 12 $ 349 Condensed Consolidated Statement of Operations Three Months Ended June 30, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 395 $ — $ 66 $ 461 Natural gas sales — 9 — 3 12 Natural gas liquid sales — 37 — 6 43 Royalty income — — 74 (74 ) — Lease bonus — — 1 — 1 Midstream services — — 47 (39 ) 8 Other operating income — — 3 (1 ) 2 Total revenues — 441 125 (39 ) 527 Costs and expenses: Lease operating expenses — 56 — (13 ) 43 Production and ad valorem taxes — 27 6 — 33 Gathering and transportation — 11 — (4 ) 7 Midstream services — (1 ) 19 — 18 Depreciation, depletion and amortization — 106 19 5 130 General and administrative expenses 7 7 2 (1 ) 15 Total costs and expenses 7 206 46 (13 ) 246 Income (loss) from operations (7 ) 235 79 (26 ) 281 Other income (expense) Interest expense, net (10 ) (3 ) (3 ) — (16 ) Other income (expense), net — 88 (4 ) — 84 Loss on derivative instruments, net — (59 ) — — (59 ) Gain on revaluation of investment — — 4 — 4 Total other income (expense), net (10 ) 26 (3 ) — 13 Income (loss) before income taxes (17 ) 261 76 (26 ) 294 Provision for (benefit from) income taxes 65 — (72 ) — (7 ) Net income (loss) (82 ) 261 148 (26 ) 301 Net income attributable to non-controlling interest — — 29 53 82 Net income (loss) attributable to Diamondback Energy, Inc. $ (82 ) $ 261 $ 119 $ (79 ) $ 219 Condensed Consolidated Statement of Operations Six Months Ended June 30, 2019 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales — 1,572 — 118 1,690 Natural gas sales — 17 — 3 20 Natural gas liquid sales — 122 — 10 132 Royalty income — — 131 (131 ) — Lease bonus — — 3 — 3 Midstream services — — 200 (165 ) 35 Other operating income — — 7 (2 ) 5 Total revenues — 1,711 341 (167 ) 1,885 Costs and expenses: Lease operating expenses — 291 — (55 ) 236 Production and ad valorem taxes — 111 8 — 119 Gathering and transportation — 36 — (7 ) 29 Midstream services — — 75 (41 ) 34 Depreciation, depletion and amortization — 614 53 14 681 General and administrative expenses 24 22 8 (5 ) 49 Asset retirement obligation accretion — 5 — — 5 Other operating expense — 1 1 — 2 Total costs and expenses 24 1,080 145 (94 ) 1,155 Income (loss) from operations (24 ) 631 196 (73 ) 730 Other income (expense) Interest expense, net (21 ) (67 ) (7 ) — (95 ) Other income (expense), net 1 4 1 (3 ) 3 Loss on derivative instruments, net — (174 ) — — (174 ) Gain on revaluation of investment — — 4 — 4 Total other income (expense), net (20 ) (237 ) (2 ) (3 ) (262 ) Income (loss) before income taxes (44 ) 394 194 (76 ) 468 Provision for (benefit from) income taxes 102 — (33 ) — 69 Net income (loss) (146 ) 394 227 (76 ) 399 Net income (loss) attributable to non-controlling interest — — 101 (61 ) 40 Net income (loss) attributable to Diamondback Energy, Inc. (146 ) 394 126 (15 ) 359 Condensed Consolidated Statement of Operations Six Months Ended June 30, 2018 (In millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 758 $ — $ 122 $ 880 Natural gas sales — 21 — 5 26 Natural gas liquid sales — 66 — 10 76 Royalty income — — 137 (137 ) — Lease bonus — — 1 — 1 Midstream services — — 78 (59 ) 19 Other operating income — — 5 (1 ) 4 Total revenues — 845 221 (60 ) 1,006 Costs and expenses: Lease operating expenses — 100 — (20 ) 80 Production and ad valorem taxes — 51 9 — 60 Gathering and transportation — 18 — (7 ) 11 Midstream services — (1 ) 30 — 29 Depreciation, depletion and amortization — 200 37 8 245 General and administrative expenses 14 13 5 (1 ) 31 Asset retirement obligation accretion — 1 — — 1 Other operating expenses — — 1 — 1 Total costs and expenses 14 382 82 (20 ) 458 Income (loss) from operations (14 ) 463 139 (40 ) 548 Other income (expense) Interest expense, net (19 ) (6 ) (5 ) — (30 ) Other income (expense), net — 90 (2 ) (1 ) 87 Loss on derivative instruments, net — (91 ) — — (91 ) Gain on revaluation of investment — — 5 — 5 Total other income (expense), net (19 ) (7 ) (2 ) (1 ) (29 ) Income (loss) before income taxes (33 ) 456 137 (41 ) 519 Provision for (benefit from) income taxes 112 — (72 ) — 40 Net income (loss) (145 ) 456 209 (41 ) 479 Net income attributable to non-controlling interest — — 29 68 97 Net income (loss) attributable to Diamondback Energy, Inc. $ (145 ) $ 456 $ 180 $ (109 ) $ 382 Condensed Consolidated Statement of Cash Flows Six Months Ended June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 4 $ 798 $ 241 $ — $ 1,043 Cash flows from investing activities: Additions to oil and natural gas properties — (1,238 ) — — (1,238 ) Additions to midstream assets — (8 ) (103 ) — (111 ) Purchase of other property, equipment and land — (7 ) — — (7 ) Acquisition of leasehold interests — (127 ) — — (127 ) Acquisition of mineral interests — — (125 ) — (125 ) Proceeds from sale of assets — 36 — — 36 Funds held in escrow — — (13 ) — (13 ) Equity investments — (149 ) (37 ) — (186 ) Investment in real estate — (1 ) — — (1 ) Net cash used in investing activities — (1,494 ) (278 ) — (1,772 ) Cash flows from financing activities: Proceeds from borrowing under credit facility — 745 180 — 925 Repayment under credit facility — (595 ) (378 ) — (973 ) Proceeds from joint venture — 43 — — 43 Debt issuance costs — (8 ) — — (8 ) Public offering costs — 3 (44 ) — (41 ) Proceeds from public offerings — — 1,106 — 1,106 Distribution to parent — — (727 ) 727 — Contributions from subsidiaries — 727 — (727 ) — Distributions from subsidiary 65 — — (65 ) — Dividends to stockholders (51 ) — — — (51 ) Proceeds from exercise of stock options 6 — — — 6 Repurchased for tax withholdings (13 ) — — — (13 ) Repurchased as part of share buyback (104 ) — — — (104 ) Distributions to non-controlling interest — — (115 ) 65 (50 ) Intercompany transfers 304 (304 ) — — — Net cash provided by financing activities 207 611 22 — 840 Net increase (decrease) in cash and cash equivalents 211 (85 ) (15 ) — 111 Cash and cash equivalents at beginning of period 84 100 31 — 215 Cash and cash equivalents at end of period $ 295 $ 15 $ 16 $ — $ 326 Condensed Consolidated Statement of Cash Flows Six Months Ended June 30, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (21 ) $ 584 $ 201 $ — $ 764 Cash flows from investing activities: Additions to oil and natural gas properties — (650 ) — — (650 ) Additions to midstream assets — (10 ) (85 ) — (95 ) Purchase of other property, equipment and land — (4 ) — — (4 ) Acquisition of leasehold interests — (101 ) — — (101 ) Acquisition of mineral interests — — (253 ) — (253 ) Proceeds from sale of assets — 3 1 — 4 Funds held in escrow — 11 — — 11 Intercompany transfers (22 ) 22 — — — Investment in real estate — (110 ) — — (110 ) Net cash used in investing activities (22 ) (839 ) (337 ) — (1,198 ) Cash flows from financing activities: Proceeds from borrowing under credit facility — 313 256 — 569 Repayment under credit facility — (388 ) — — (388 ) Proceeds from senior notes 312 — — — 312 Debt issuance costs (4 ) — (1 ) — (5 ) Public offering costs — — (2 ) — (2 ) Contributions to subsidiaries (1 ) — (1 ) 2 — Contributions by members — — 2 (2 ) — Distributions from subsidiary 69 — — (69 ) — Dividends to stockholders (12 ) — — — (12 ) Distributions to non-controlling interest — — (107 ) 69 (38 ) Intercompany transfers (309 ) 308 1 — — Net cash provided by financing activities 55 233 148 — 436 Net increase (decrease) in cash and cash equivalents 12 (22 ) 12 — 2 Cash and cash equivalents at beginning of period 54 34 24 — 112 Cash and cash equivalents at end of period $ 66 $ 12 $ 36 $ — $ 114 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
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. |
Use of Estimates | 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 assumed, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Pronouncements 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. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles and compressors. The Company has completed the process of reviewing and determining the agreements to which this new guidance applies. Upon adoption effective January 1, 2019, the Company recognized approximately $13 million of right-of-use assets, of which the total amount relates to the Company’s operating leases. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-10, “Codification Improvements to Topic 842, Leases”. This update provides clarification and corrects unintended application of certain sections in the new lease guidance. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-11, “Lease (Topic 842): Targeted Improvements”. This update provides another transition method of allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In December 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors”. This update provides a practical expedient for lessors to elect not to evaluate whether sales taxes and other similar taxes are lessor costs. The update also requires a lessor to exclude from variable payments those costs paid directly by the lessee to third parties and include lessor costs paid by the lessor and reimbursed by the lessee. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. See Note 18 — Leases for more information on the adoption of these standards. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity because the Company currently accounts for nonemployee share-based transactions in the same manner as employee share-based transactions. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-09, “Codification Improvements”. This update provides clarification and corrects unintended application of the guidance in various sections. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted 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 its consolidated financial statements since it does not have a history of credit losses. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. 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 prospectively. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. 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 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In November 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. This update clarifies that receivables arising from operating leases are not within the scope of this topic, but rather Topic 842, Leases. 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 an impact on its financial statements since it does not have a history of credit losses. In April 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”. This update clarifies guidance previously issued in ASU 2016-01, ASU 2016-13 and ASU 2017-12. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the updates to the referenced standards will have an impact on its financial position, results of operations or liquidity. In May 2019, the Financial Accounting Standards Board issued Accounting Standards Update 2019-05, “Financial Instruments-Credit Losses (Topic 326)”. This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity. |
Equity Method Investments | Equity investments in which the Company exercises significant influence but does not control are accounted for using the equity method. Under the equity method, generally the Company’s share of investees’ earnings or loss is recognized in the statement of operations. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision. |
Revenue Recognition | Revenue from Contracts with Customers Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the fresh water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel fresh water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s upstream product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligations under any of our product sales contracts. The majority of the Company’s midstream revenue agreements have a term greater than one year, and as such the Company has utilized the practical expedient in ASC 606, which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Company’s midstream revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Company has utilized an additional practical expedient in ASC 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months and six months ended June 30, 2019 , revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded. |
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) | 6 Months Ended |
Jun. 30, 2019 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the Company’s preliminary purchase price allocation as of June 30, 2019 : (In millions) Consideration: Fair value of the Company's common stock issued $ 7,136 Total consideration $ 7,136 Fair value of liabilities assumed: Current liabilities $ 365 Asset retirement obligation 105 Long-term debt 1,099 Noncurrent derivative instruments 17 Deferred income taxes 1,408 Other long-term liabilities 7 Amount attributable to liabilities assumed $ 3,001 Fair value of assets acquired: Total current assets $ 305 Oil and natural gas properties 9,307 Midstream assets 263 Investment in real estate 11 Other property, equipment and land 55 Asset retirement obligation 105 Other postretirement assets 3 Noncurrent income tax receivable, net 76 Other long term assets 12 Amount attributable to assets acquired $ 10,137 |
Business Acquisition, Pro Forma Information | The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results. Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions, except per share amounts) Revenues $ 898 $ 1,736 Income from operations $ 431 $ 849 Net income $ 303 $ 571 Basic earnings per common share $ 1.88 $ 3.54 Diluted earnings per common share $ 1.87 $ 3.53 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate [Abstract] | |
Schedule of Real Estate Assets | The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Company’s real estate assets including intangible lease assets: Estimated Useful Lives June 30, 2019 December 31, 2018 (Years) (in millions) Buildings 30 $ 102 $ 103 Tenant improvements 15 4 4 Land N/A 2 1 Land improvements 15 1 1 Total real estate assets 109 109 Less: accumulated depreciation (6 ) (4 ) Total investment in land and buildings, net $ 103 $ 105 Weighted Average Useful Lives June 30, 2019 December 31, 2018 (Months) (in millions) In-place lease intangibles 45 $ 11 $ 11 Less: accumulated amortization (5 ) (3 ) In-place lease intangibles, net 6 8 Above-market lease intangibles 45 4 4 Less: accumulated amortization (1 ) (1 ) Above-market lease intangibles, net 3 3 Total intangible lease assets, net $ 9 $ 11 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment includes the following: June 30, December 31, 2019 2018 (in millions) Oil and natural gas properties: Subject to depletion $ 14,491 $ 12,629 Not subject to depletion 9,585 9,670 Gross oil and natural gas properties 24,076 22,299 Accumulated depletion (2,252 ) (1,599 ) Accumulated impairment (1,144 ) (1,144 ) Oil and natural gas properties, net 20,680 19,556 Midstream assets 828 700 Other property, equipment and land 150 147 Accumulated depreciation (55 ) (31 ) Property and equipment, net of accumulated depreciation, depletion, amortization and impairment $ 21,603 $ 20,372 Balance of costs not subject to depletion: Incurred in 2019 $ 255 Incurred in 2018 6,053 Incurred in 2017 2,499 Incurred in 2016 683 Incurred in 2015 95 Total not subject to depletion $ 9,585 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: Six Months Ended June 30, 2019 2018 (in millions) Asset retirement obligations, beginning of period $ 136 $ 21 Additional liabilities incurred 2 2 Liabilities acquired 3 — Liabilities settled (4 ) (1 ) Accretion expense 5 1 Asset retirement obligations, end of period 142 23 Less current portion — 1 Asset retirement obligations - long-term $ 142 $ 22 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Line of Credit Facility [Line Items] | |
Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2019 2018 (in millions) 4.625% Notes due 2021 (1) $ 399 $ 400 7.320% Medium-term Notes, Series A, due 2022 (1) 21 20 4.750 % Senior Notes due 2024 1,250 1,250 5.375 % Senior Notes due 2025 800 800 7.350% Medium-term Notes, Series A, due 2027 (1) 11 10 7.125% Medium-term Notes, Series B, due 2028 (1) 108 100 DrillCo Agreement 43 — Unamortized debt issuance costs (23 ) (27 ) Unamortized premium costs 10 10 Revolving credit facility 1,639 1,490 Viper revolving credit facility 213 411 Rattler revolving credit facility 1 — Total long-term debt $ 4,472 $ 4,464 |
Financial Covenants | Financial Covenant (prior to the investment grade changeover date) Required Ratio Ratio of total net debt to EBITDAX, as defined in the credit agreement 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 |
Viper Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial Covenants | Financial Covenant Required Ratio Ratio of total net debt to EBITDAX, as defined in the credit agreement 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 |
Rattler Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial Covenants | The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below: Financial Covenant Required Ratio Consolidated Total Leverage Ratio commencing with the fiscal quarter ending September 30, 2019 Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Rattler credit agreement) is applicable, then not greater than 5.25 to 1.00) Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Rattler credit agreement) is made Not greater than 3.50 to 1.00 Consolidated Interest Coverage Ratio (as defined in the Rattler credit agreement) commencing with the fiscal quarter ending September 30, 2019 Not less than 2.50 to 1.00 |
Capital Stock and Earnings Pe_2
Capital Stock and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 ($ in millions, except per share amounts, shares in thousands) Net income attributable to common stock $ 349 $ 219 $ 359 $ 382 Weighted average common shares outstanding Basic weighted average common units outstanding 164,839 98,614 164,846 98,584 Effect of dilutive securities: Potential common shares issuable 180 183 407 236 Diluted weighted average common shares outstanding 165,019 98,797 165,253 98,820 Basic net income attributable to common stock $ 2.12 $ 2.22 $ 2.18 $ 3.87 Diluted net income attributable to common stock $ 2.11 $ 2.22 $ 2.17 $ 3.87 |
Schedule of antidilutive securities excluded from computation of earnings per share | The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in thousands) Restricted stock units 60 32 20 — |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) General and administrative expenses $ 9 $ 6 $ 23 $ 13 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties 4 2 10 5 |
Summary of restricted stock units | The following table presents the Company’s restricted stock units activity under the Equity Plan during the six months ended June 30, 2019 : Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2018 324,224 $ 116.01 Granted 450,297 $ 107.08 Vested (177,537 ) $ 109.08 Forfeited (57,146 ) $ 108.93 Unvested at June 30, 2019 539,838 $ 111.59 |
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 March 2019 awards. 2019 Grant-date fair value (3-year vesting) $ 137.22 Grant-date fair value (5-year vesting) $ 132.48 Risk-free rate 2.55 % Company volatility 35.00 % |
Schedule of performance restricted stock units activity | The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the six months ended June 30, 2019 : Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2018 196,203 $ 169.76 Granted 356,227 $ 131.30 Vested (123,546 ) $ 121.41 Forfeited (45,868 ) $ 155.68 Unvested at June 30, 2019 (1) 383,016 $ 151.27 (1) A maximum of 766,032 units could be awarded based upon the Company’s final TSR ranking. |
Schedule of share-based compensation, stock appreciation rights award activity | The following table presents a summary of stock appreciation rights activity during the six months ended June 30, 2019 : Shares Weighted Average Exercise Price Outstanding at December 31, 2018 57,721 $ 22.12 Exercised (9,888 ) $ 73.68 Expired (3,229 ) $ 102.92 Outstanding at June 30, 2019 44,604 $ 28.90 |
Schedule of stock options activity | The Company estimates the fair values of stock options granted using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the contractual term of the awards at effective time of the merger. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant. All such amounts represent the weighted-average amounts for each year. Weighted Average Exercise Remaining Intrinsic Options Price Term Value (in years) (in millions) Outstanding at December 31, 2018 332,387 $ 95.04 Exercised (70,722 ) $ 80.05 Outstanding at June 30, 2019 261,665 $ 89.19 2.18 $ 5 Vested and Expected to vest at June 30, 2019 261,665 $ 89.19 2.18 $ 5 Exercisable at June 30, 2019 261,665 $ 89.19 2.18 $ 5 |
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] | |
Phantom units activity | The following table presents the phantom unit activity under the Viper LTIP for the six months ended June 30, 2019 : Phantom Units Weighted Average Grant-Date Unvested at December 31, 2018 125,053 $ 23.44 Granted 17,601 $ 33.54 Vested (60,133 ) $ 21.38 Forfeited (1,028 ) $ 42.50 Unvested at June 30, 2019 81,493 $ 26.91 |
Rattler Midstream LP Long-Term Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Phantom units activity | The following table presents the phantom unit activity under the Rattler LTIP for the six months ended June 30, 2019 : Phantom Weighted Average Unvested at May 28, 2019 — $ — Granted 2,248,572 $ 19.20 Unvested at June 30, 2019 2,248,572 $ 19.20 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | As of June 30, 2019 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2019 2020 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps - WTI Cushing 5,512,000 $ 61.15 2,555,000 $ 59.37 Oil Swaps - WTI Magellan East Houston 1,472,000 $ 65.88 2,190,000 $ 62.80 Oil Swaps - BRENT 1,288,000 $ 67.79 730,000 $ 66.00 Oil Basis Swaps - WTI Cushing 8,280,000 $ (5.52 ) 15,120,000 $ (1.21 ) Natural Gas Swaps - Henry Hub 12,880,000 $ 3.06 — $ — Natural Gas Basis Swaps - Waha Hub 12,880,000 $ (1.56 ) 18,250,000 $ (1.67 ) Natural Gas Liquid Swaps - Mont Belvieu 1,380,000 $ 27.30 — $ — 2019 2020 Oil Three-Way Collars WTI Cushing Brent WTI Magellan East Houston WTI Cushing Brent WTI Magellan East Houston Volume (Bbls) 2,880,000 1,288,000 920,000 3,650,000 6,588,000 5,110,000 Short put price (per Bbl) $ 35.94 $ 52.14 $ 50.00 $ 45.00 $ 50.56 $ 50.00 Floor price (per Bbl) $ 45.94 $ 62.14 $ 60.00 $ 55.00 $ 60.56 $ 60.00 Ceiling price (per Bbl) $ 61.65 $ 78.70 $ 66.10 $ 67.06 $ 74.08 $ 68.81 Put Spreads Volume (Bbls) 1,715,500 1,222,750 Put - Sell price (per Bbl) $ 45.00 $ 50.00 Put - Buy price (per Bbl) $ 55.00 $ 60.00 The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2019 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) January 2020 - December 2020 Oil Swaps - WTI 366,000 $ 57.15 Oil Swaps - BRENT 732,000 $ 63.00 Gas Swap Double-Up - Waha Hub January 2020 - December 2020 Volume (Mcf) 10,980,000 Swap price (per Mcf) $ 1.70 Option price $ 1.70 January 2020 - December 2020 Oil Three-Way Collars WTI Volume (Bbls) 366,000 Short put price (per Bbl) $ 45.00 Floor price (per Bbl) $ 55.00 Ceiling price (per Bbl) $ 62.35 |
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 June 30, 2019 and December 31, 2018 . June 30, 2019 December 31, 2018 (in millions) Gross amounts of assets presented in the Consolidated Balance Sheet $ 52 $ 231 Net amounts of assets presented in the Consolidated Balance Sheet 52 231 Gross amounts of liabilities presented in the Consolidated Balance Sheet 33 15 Net amounts of liabilities presented in the Consolidated Balance Sheet $ 33 $ 15 |
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: June 30, 2019 December 31, 2018 (in millions) Current assets: derivative instruments $ 29 $ 231 Noncurrent assets: derivative instruments 23 — Total assets $ 52 $ 231 Current liabilities: derivative instruments $ 25 $ — Noncurrent liabilities: derivative instruments 8 15 Total liabilities $ 33 $ 15 |
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 consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 (in millions) Change in fair value of open non-hedge derivative instruments $ 89 $ (14 ) $ (196 ) $ (14 ) Gain (loss) on settlement of non-hedge derivative instruments 5 (45 ) 22 (77 ) Gain (loss) on derivative instruments $ 94 $ (59 ) $ (174 ) $ (91 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 .: June 30, 2019 December 31, 2018 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in millions) Assets: Investment $ 18 $ — $ — $ 14 $ — $ — Fixed price swaps — 19 — — 216 — Liabilities: Fixed price swaps $ — $ — $ — $ — $ — $ — The following table summarizes the changes in fair value of Viper’s cost method investment during the periods presented: (in millions) Value at December 31, 2017 $ 34 Impact of adoption of Accounting Standards Update 2016-01 (19 ) Gain on investment 5 Value at June 30, 2018 $ 20 Value at December 31, 2018 $ 14 Gain on investment 4 Value at June 30, 2019 $ 18 |
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: June 30, 2019 December 31, 2018 Carrying Carrying Amount Fair Value Amount Fair Value (in millions) Debt: Revolving credit facility $ 1,639 $ 1,639 $ 1,490 $ 1,490 4.625% Notes due 2021 (1) $ 399 $ 410 $ 400 $ 393 7.320% Medium-term Notes, Series A, due 2022 (1) $ 21 $ 22 $ 20 $ 21 4.750% Senior Notes due 2024 $ 1,250 $ 1,289 $ 1,250 $ 1,204 5.375% Senior Notes due 2025 $ 800 $ 841 $ 800 $ 782 7.350% Medium-term Notes, Series A, due 2027 (1) $ 11 $ 11 $ 10 $ 11 7.125% Medium-term Notes, Series B, due 2028 (1) $ 108 $ 111 $ 100 $ 102 Viper revolving credit facility $ 213 $ 213 $ 411 $ 411 Rattler revolving credit facility $ 1 $ 1 $ — $ — DrillCo Agreement $ 43 $ 43 $ — $ — |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table summarizes operating lease costs for the three months and six months ended June 30, 2019 : Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 (in millions) Operating lease costs $ 8 $ 12 |
Lessee, Operating Lease, Liability, Maturity | Schedule of Operating Lease Liability Maturities . The following table summarizes undiscounted cash flows owed by the Company to lessors pursuant to contractual agreements in effect as of June 30, 2019 : As of June 30, 2019 (in millions) 2019 (July - December) $ 14 2020 7 2021 3 2022 1 2023 — Thereafter — Total lease payments 25 Less: interest 2 Present value of lease liabilities $ 23 |
Subsequent Events (Tables)
Subsequent Events (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Event [Line Items] | |
Schedule of derivative instruments | As of June 30, 2019 , the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 2019 2020 Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) Oil Swaps - WTI Cushing 5,512,000 $ 61.15 2,555,000 $ 59.37 Oil Swaps - WTI Magellan East Houston 1,472,000 $ 65.88 2,190,000 $ 62.80 Oil Swaps - BRENT 1,288,000 $ 67.79 730,000 $ 66.00 Oil Basis Swaps - WTI Cushing 8,280,000 $ (5.52 ) 15,120,000 $ (1.21 ) Natural Gas Swaps - Henry Hub 12,880,000 $ 3.06 — $ — Natural Gas Basis Swaps - Waha Hub 12,880,000 $ (1.56 ) 18,250,000 $ (1.67 ) Natural Gas Liquid Swaps - Mont Belvieu 1,380,000 $ 27.30 — $ — 2019 2020 Oil Three-Way Collars WTI Cushing Brent WTI Magellan East Houston WTI Cushing Brent WTI Magellan East Houston Volume (Bbls) 2,880,000 1,288,000 920,000 3,650,000 6,588,000 5,110,000 Short put price (per Bbl) $ 35.94 $ 52.14 $ 50.00 $ 45.00 $ 50.56 $ 50.00 Floor price (per Bbl) $ 45.94 $ 62.14 $ 60.00 $ 55.00 $ 60.56 $ 60.00 Ceiling price (per Bbl) $ 61.65 $ 78.70 $ 66.10 $ 67.06 $ 74.08 $ 68.81 Put Spreads Volume (Bbls) 1,715,500 1,222,750 Put - Sell price (per Bbl) $ 45.00 $ 50.00 Put - Buy price (per Bbl) $ 55.00 $ 60.00 The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2019 . When aggregating multiple contracts, the weighted average contract price is disclosed. Volume (Bbls/MMBtu) Fixed Price Swap (per Bbl/MMBtu) January 2020 - December 2020 Oil Swaps - WTI 366,000 $ 57.15 Oil Swaps - BRENT 732,000 $ 63.00 Gas Swap Double-Up - Waha Hub January 2020 - December 2020 Volume (Mcf) 10,980,000 Swap price (per Mcf) $ 1.70 Option price $ 1.70 January 2020 - December 2020 Oil Three-Way Collars WTI Volume (Bbls) 366,000 Short put price (per Bbl) $ 45.00 Floor price (per Bbl) $ 55.00 Ceiling price (per Bbl) $ 62.35 |
Report of Business Segments (Ta
Report of Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following tables summarize the results of the Company's business segments during the periods presented: Exploration and Production Midstream Services Eliminations Total Three Months Ended June 30, 2019: (in millions) Third-party revenues $ 1,003 $ 18 $ — $ 1,021 Intersegment revenues — 93 (93 ) — Total revenues 1,003 111 (93 ) 1,021 Income from operations 388 56 (33 ) 411 Other income (expense) 48 — (1 ) 47 Provision for (benefit from) income taxes 101 1 — 102 Net income attributable to non-controlling interest 7 15 (15 ) 7 Net income attributable to Diamondback Energy $ 328 $ 40 $ (19 ) $ 349 Total assets $ 22,138 $ 1,187 $ (154 ) $ 23,171 Exploration and Production Midstream Services Eliminations Total Three Months Ended June 30, 2018: (in millions) Third-party revenues $ 516 $ 11 $ — $ 527 Intersegment revenues — 39 (39 ) — Total revenues 516 50 (39 ) 527 Income from operations 278 24 (21 ) 281 Other income (expense) 17 (4 ) — 13 Provision for (benefit from) income taxes (7 ) — — (7 ) Net income attributable to non-controlling interest 82 — — 82 Net income attributable to Diamondback Energy $ 220 $ 20 $ (21 ) $ 219 Total assets $ 8,473 $ 521 $ (40 ) $ 8,954 Exploration and Production Midstream Services Eliminations Total Six Months Ended June 30, 2019: (in millions) Third-party revenues $ 1,845 $ 40 $ — $ 1,885 Intersegment revenues — 167 (167 ) — Total revenues 1,845 207 (167 ) 1,885 Income from operations 684 106 (60 ) 730 Other income (expense) (260 ) — (2 ) (262 ) Provision for (benefit from) income taxes 68 1 — 69 Net income attributable to non-controlling interest 40 15 (15 ) 40 Net income attributable to Diamondback Energy $ 316 $ 90 $ (47 ) $ 359 Total assets $ 22,138 $ 1,187 $ (154 ) $ 23,171 Exploration and Production Midstream Services Eliminations Total Six Months Ended June 30, 2018: (in millions) Third-party revenues $ 983 $ 23 $ — $ 1,006 Intersegment revenues — 60 (60 ) — Total revenues 983 83 (60 ) 1,006 Income from operations 539 41 (32 ) 548 Other income (expense) (26 ) (3 ) — (29 ) Provision for (benefit from) income taxes 40 — — 40 Net income attributable to non-controlling interest 97 — — 97 Net income attributable to Diamondback Energy $ 376 $ 38 $ (32 ) $ 382 Total assets $ 8,473 $ 521 $ (40 ) $ 8,954 |
Guarantor Financial Statements
Guarantor Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Balance Sheet | Condensed Consolidated Balance Sheet June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 295 $ 15 $ 16 $ — $ 326 Accounts receivable, net — 468 49 — 517 Accounts receivable - related party — — 9 (9 ) — Intercompany receivable 4,383 1,198 — (5,581 ) — Inventories — 31 13 — 44 Derivative instruments — 29 — — 29 Prepaid expenses and other 1 50 5 — 56 Total current assets 4,679 1,791 92 (5,590 ) 972 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 22,388 1,842 (154 ) 24,076 Midstream assets — 6 822 — 828 Other property, equipment and land — 56 94 — 150 Accumulated depletion, depreciation, amortization and impairment — (3,123 ) (325 ) (3 ) (3,451 ) Net property and equipment — 19,327 2,433 (157 ) 21,603 Funds held in escrow — — 13 — 13 Equity method investments — — 187 — 187 Derivative instruments — 23 — — 23 Investment in subsidiaries 12,008 — — (12,008 ) — Deferred tax asset — — 150 — 150 Investment in real estate, net — 2 110 — 112 Other assets — 88 23 — 111 Total assets $ 16,687 $ 21,231 $ 3,008 $ (17,755 ) $ 23,171 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 204 $ 17 $ (17 ) $ 204 Intercompany payable 134 4,881 — (5,015 ) — Accrued capital expenditures — 505 68 — 573 Other accrued liabilities 14 192 33 — 239 Revenues and royalties payable — 139 — — 139 Derivative instruments — 25 — — 25 Total current liabilities 148 5,946 118 (5,032 ) 1,180 Long-term debt 2,036 2,222 214 — 4,472 Derivative instruments — 8 — — 8 Asset retirement obligations — 137 5 — 142 Deferred income taxes 499 1,408 2 — 1,909 Other long-term liabilities — 10 — — 10 Total liabilities 2,683 9,731 339 (5,032 ) 7,721 Commitments and contingencies Stockholders’ equity 14,004 11,500 1,526 (13,026 ) 14,004 Non-controlling interest — — 1,143 303 1,446 Total equity 14,004 11,500 2,669 (12,723 ) 15,450 Total liabilities and equity $ 16,687 $ 21,231 $ 3,008 $ (17,755 ) $ 23,171 Condensed Consolidated Balance Sheet December 31, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 84 $ 100 $ 31 $ — $ 215 Accounts receivable — 351 41 — 392 Accounts receivable - related party — — 9 (9 ) — Intercompany receivable 4,469 195 — (4,664 ) — Inventories — 28 9 — 37 Derivative instruments — 231 — — 231 Prepaid expenses and other 3 43 4 — 50 Total current assets 4,556 948 94 (4,673 ) 925 Property and equipment: Oil and natural gas properties, at cost, full cost method of accounting — 20,586 1,717 (4 ) 22,299 Midstream assets — 284 416 — 700 Other property, equipment and land — 71 76 — 147 Accumulated depletion, depreciation, amortization and impairment — (2,486 ) (276 ) (12 ) (2,774 ) Net property and equipment — 18,455 1,933 (16 ) 20,372 Equity method investments — 1 — — 1 Investment in subsidiaries 11,576 112 (11,688 ) — Investment in real estate, net — 12 104 — 116 Deferred tax asset — — 97 — 97 Other assets — 68 17 — 85 Total assets $ 16,132 $ 19,596 $ 2,245 $ (16,377 ) $ 21,596 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable-trade $ — $ 128 $ — $ — $ 128 Intercompany payable — 4,673 — (4,673 ) — Accrued capital expenditures — 495 — — 495 Other accrued liabilities 14 170 69 — 253 Revenues and royalties payable — 143 — — 143 Total current liabilities 14 5,609 69 (4,673 ) 1,019 Long-term debt 2,036 2,017 411 — 4,464 Derivative instruments — 15 — — 15 Asset retirement obligations — 136 — — 136 Deferred income taxes 382 1,403 — — 1,785 Other long-term liabilities — 10 — — 10 Total liabilities 2,432 9,190 480 (4,673 ) 7,429 Commitments and contingencies Stockholders’ equity 13,700 10,406 1,070 (11,476 ) 13,700 Non-controlling interest — — 695 (228 ) 467 Total equity 13,700 10,406 1,765 (11,704 ) 14,167 Total liabilities and equity $ 16,132 $ 19,596 $ 2,245 $ (16,377 ) $ 21,596 |
Condensed Consolidated Statement of Operations | Condensed Consolidated Statement of Operations Three Months Ended June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 881 $ — $ 66 $ 947 Natural gas sales — (8 ) — (1 ) (9 ) Natural gas liquid sales — 56 — 6 62 Royalty income — — 70 (70 ) — Lease bonus — — 2 — 2 Midstream services — — 108 (92 ) 16 Other operating income — — 4 (1 ) 3 Total revenues — 929 184 (92 ) 1,021 Costs and expenses: Lease operating expenses — 156 — (29 ) 127 Production and ad valorem taxes — 60 4 — 64 Gathering and transportation — 20 — (3 ) 17 Midstream services — — 42 (25 ) 17 Depreciation, depletion and amortization — 324 27 8 359 General and administrative expenses 9 12 5 (4 ) 22 Asset retirement obligation accretion — 3 — — 3 Other operating expense — — 1 — 1 Total costs and expenses 9 575 79 (53 ) 610 Income (loss) from operations (9 ) 354 105 (39 ) 411 Other income (expense) Interest expense, net (11 ) (36 ) (2 ) — (49 ) Other income (expense), net 1 3 — (2 ) 2 Gain on derivative instruments, net — 94 — — 94 Total other income (expense), net (10 ) 61 (2 ) (2 ) 47 Income (loss) before income taxes (19 ) 415 103 (41 ) 458 Provision for income taxes 100 — 2 — 102 Net income (loss) (119 ) 415 101 (41 ) 356 Net income attributable to non-controlling interest — — 60 (53 ) 7 Net income (loss) attributable to Diamondback Energy, Inc. $ (119 ) $ 415 $ 41 $ 12 $ 349 Condensed Consolidated Statement of Operations Three Months Ended June 30, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 395 $ — $ 66 $ 461 Natural gas sales — 9 — 3 12 Natural gas liquid sales — 37 — 6 43 Royalty income — — 74 (74 ) — Lease bonus — — 1 — 1 Midstream services — — 47 (39 ) 8 Other operating income — — 3 (1 ) 2 Total revenues — 441 125 (39 ) 527 Costs and expenses: Lease operating expenses — 56 — (13 ) 43 Production and ad valorem taxes — 27 6 — 33 Gathering and transportation — 11 — (4 ) 7 Midstream services — (1 ) 19 — 18 Depreciation, depletion and amortization — 106 19 5 130 General and administrative expenses 7 7 2 (1 ) 15 Total costs and expenses 7 206 46 (13 ) 246 Income (loss) from operations (7 ) 235 79 (26 ) 281 Other income (expense) Interest expense, net (10 ) (3 ) (3 ) — (16 ) Other income (expense), net — 88 (4 ) — 84 Loss on derivative instruments, net — (59 ) — — (59 ) Gain on revaluation of investment — — 4 — 4 Total other income (expense), net (10 ) 26 (3 ) — 13 Income (loss) before income taxes (17 ) 261 76 (26 ) 294 Provision for (benefit from) income taxes 65 — (72 ) — (7 ) Net income (loss) (82 ) 261 148 (26 ) 301 Net income attributable to non-controlling interest — — 29 53 82 Net income (loss) attributable to Diamondback Energy, Inc. $ (82 ) $ 261 $ 119 $ (79 ) $ 219 Condensed Consolidated Statement of Operations Six Months Ended June 30, 2019 (In thousands) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales — 1,572 — 118 1,690 Natural gas sales — 17 — 3 20 Natural gas liquid sales — 122 — 10 132 Royalty income — — 131 (131 ) — Lease bonus — — 3 — 3 Midstream services — — 200 (165 ) 35 Other operating income — — 7 (2 ) 5 Total revenues — 1,711 341 (167 ) 1,885 Costs and expenses: Lease operating expenses — 291 — (55 ) 236 Production and ad valorem taxes — 111 8 — 119 Gathering and transportation — 36 — (7 ) 29 Midstream services — — 75 (41 ) 34 Depreciation, depletion and amortization — 614 53 14 681 General and administrative expenses 24 22 8 (5 ) 49 Asset retirement obligation accretion — 5 — — 5 Other operating expense — 1 1 — 2 Total costs and expenses 24 1,080 145 (94 ) 1,155 Income (loss) from operations (24 ) 631 196 (73 ) 730 Other income (expense) Interest expense, net (21 ) (67 ) (7 ) — (95 ) Other income (expense), net 1 4 1 (3 ) 3 Loss on derivative instruments, net — (174 ) — — (174 ) Gain on revaluation of investment — — 4 — 4 Total other income (expense), net (20 ) (237 ) (2 ) (3 ) (262 ) Income (loss) before income taxes (44 ) 394 194 (76 ) 468 Provision for (benefit from) income taxes 102 — (33 ) — 69 Net income (loss) (146 ) 394 227 (76 ) 399 Net income (loss) attributable to non-controlling interest — — 101 (61 ) 40 Net income (loss) attributable to Diamondback Energy, Inc. (146 ) 394 126 (15 ) 359 Condensed Consolidated Statement of Operations Six Months Ended June 30, 2018 (In millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Revenues: Oil sales $ — $ 758 $ — $ 122 $ 880 Natural gas sales — 21 — 5 26 Natural gas liquid sales — 66 — 10 76 Royalty income — — 137 (137 ) — Lease bonus — — 1 — 1 Midstream services — — 78 (59 ) 19 Other operating income — — 5 (1 ) 4 Total revenues — 845 221 (60 ) 1,006 Costs and expenses: Lease operating expenses — 100 — (20 ) 80 Production and ad valorem taxes — 51 9 — 60 Gathering and transportation — 18 — (7 ) 11 Midstream services — (1 ) 30 — 29 Depreciation, depletion and amortization — 200 37 8 245 General and administrative expenses 14 13 5 (1 ) 31 Asset retirement obligation accretion — 1 — — 1 Other operating expenses — — 1 — 1 Total costs and expenses 14 382 82 (20 ) 458 Income (loss) from operations (14 ) 463 139 (40 ) 548 Other income (expense) Interest expense, net (19 ) (6 ) (5 ) — (30 ) Other income (expense), net — 90 (2 ) (1 ) 87 Loss on derivative instruments, net — (91 ) — — (91 ) Gain on revaluation of investment — — 5 — 5 Total other income (expense), net (19 ) (7 ) (2 ) (1 ) (29 ) Income (loss) before income taxes (33 ) 456 137 (41 ) 519 Provision for (benefit from) income taxes 112 — (72 ) — 40 Net income (loss) (145 ) 456 209 (41 ) 479 Net income attributable to non-controlling interest — — 29 68 97 Net income (loss) attributable to Diamondback Energy, Inc. $ (145 ) $ 456 $ 180 $ (109 ) $ 382 |
Condensed Consolidated Statement of Cash Flows | Condensed Consolidated Statement of Cash Flows Six Months Ended June 30, 2019 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by operating activities $ 4 $ 798 $ 241 $ — $ 1,043 Cash flows from investing activities: Additions to oil and natural gas properties — (1,238 ) — — (1,238 ) Additions to midstream assets — (8 ) (103 ) — (111 ) Purchase of other property, equipment and land — (7 ) — — (7 ) Acquisition of leasehold interests — (127 ) — — (127 ) Acquisition of mineral interests — — (125 ) — (125 ) Proceeds from sale of assets — 36 — — 36 Funds held in escrow — — (13 ) — (13 ) Equity investments — (149 ) (37 ) — (186 ) Investment in real estate — (1 ) — — (1 ) Net cash used in investing activities — (1,494 ) (278 ) — (1,772 ) Cash flows from financing activities: Proceeds from borrowing under credit facility — 745 180 — 925 Repayment under credit facility — (595 ) (378 ) — (973 ) Proceeds from joint venture — 43 — — 43 Debt issuance costs — (8 ) — — (8 ) Public offering costs — 3 (44 ) — (41 ) Proceeds from public offerings — — 1,106 — 1,106 Distribution to parent — — (727 ) 727 — Contributions from subsidiaries — 727 — (727 ) — Distributions from subsidiary 65 — — (65 ) — Dividends to stockholders (51 ) — — — (51 ) Proceeds from exercise of stock options 6 — — — 6 Repurchased for tax withholdings (13 ) — — — (13 ) Repurchased as part of share buyback (104 ) — — — (104 ) Distributions to non-controlling interest — — (115 ) 65 (50 ) Intercompany transfers 304 (304 ) — — — Net cash provided by financing activities 207 611 22 — 840 Net increase (decrease) in cash and cash equivalents 211 (85 ) (15 ) — 111 Cash and cash equivalents at beginning of period 84 100 31 — 215 Cash and cash equivalents at end of period $ 295 $ 15 $ 16 $ — $ 326 Condensed Consolidated Statement of Cash Flows Six Months Ended June 30, 2018 (in millions) Non– Guarantor Guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net cash provided by (used in) operating activities $ (21 ) $ 584 $ 201 $ — $ 764 Cash flows from investing activities: Additions to oil and natural gas properties — (650 ) — — (650 ) Additions to midstream assets — (10 ) (85 ) — (95 ) Purchase of other property, equipment and land — (4 ) — — (4 ) Acquisition of leasehold interests — (101 ) — — (101 ) Acquisition of mineral interests — — (253 ) — (253 ) Proceeds from sale of assets — 3 1 — 4 Funds held in escrow — 11 — — 11 Intercompany transfers (22 ) 22 — — — Investment in real estate — (110 ) — — (110 ) Net cash used in investing activities (22 ) (839 ) (337 ) — (1,198 ) Cash flows from financing activities: Proceeds from borrowing under credit facility — 313 256 — 569 Repayment under credit facility — (388 ) — — (388 ) Proceeds from senior notes 312 — — — 312 Debt issuance costs (4 ) — (1 ) — (5 ) Public offering costs — — (2 ) — (2 ) Contributions to subsidiaries (1 ) — (1 ) 2 — Contributions by members — — 2 (2 ) — Distributions from subsidiary 69 — — (69 ) — Dividends to stockholders (12 ) — — — (12 ) Distributions to non-controlling interest — — (107 ) 69 (38 ) Intercompany transfers (309 ) 308 1 — — Net cash provided by financing activities 55 233 148 — 436 Net increase (decrease) in cash and cash equivalents 12 (22 ) 12 — 2 Cash and cash equivalents at beginning of period 54 34 24 — 112 Cash and cash equivalents at end of period $ 66 $ 12 $ 36 $ — $ 114 |
Description of the Business a_2
Description of the Business and Basis of Presentation (Details) - Viper Energy Partners LP [Member] | Jun. 30, 2019 |
Viper Energy Partners LP [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 54.00% |
Rattler MIdstream LP [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 71.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Mar. 31, 2018 |
Investment [Line Items] | |||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 16 | ||
Operating Lease, Right-of-Use Asset | $ 23 | $ 13 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment [Line Items] | |||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 19 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019USD ($)a | Dec. 31, 2018USD ($)ashares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)$ / shares | Nov. 29, 2018fraction_per_share$ / shares | |
Business Acquisition [Line Items] | |||||||
Investment in real estate | $ 110 | $ 1 | $ 110 | ||||
Energen Corporation Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Tier One Acres to be Acquired | a | 273,000 | ||||||
Combined Net Acreage After Close of Pending Acquisition | a | 394,000 | ||||||
Common Stock, Conversion Basis | fraction_per_share | 0.6442 | ||||||
Number of shares issued to acquire leasehold interests and related assets | shares | 62.8 | ||||||
Business Acquisition, Share Price | $ / shares | $ 112 | ||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 7,000 | 7,136 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | $ 365 | 365 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Asset Retirement Obligation | 105 | 105 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 1,099 | 1,099 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 17 | 17 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent | 1,408 | 1,408 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 7 | 7 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 3,001 | 3,001 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 305 | 305 | |||||
Business combination assets acquired oil and gas properties | 9,307 | 9,307 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Midstream Assets | 263 | 263 | |||||
Business combination assets acquired investment in real estate | 11 | 11 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 55 | 55 | |||||
Business combination asset acquired postretirement benefit plan | 3 | 3 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets | 76 | 76 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 12 | 12 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 10,137 | $ 10,137 | |||||
Business Acquisition, Pro Forma Revenue | $ 898 | 1,736 | |||||
Business Acquisition, Pro Forma Income from Operations | 431 | 849 | |||||
Business Acquisition, Pro Forma Net Income | $ 303 | $ 571 | |||||
Business Acquisition, Pro Forma Earnings Per Share, Basic | $ / shares | $ 1.88 | $ 3.54 | |||||
Business Acquisition, Pro Forma Earnings Per Share, Diluted | $ / shares | $ 1.87 | $ 3.53 | |||||
Viper Energy Partners LP [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net acres divested | a | 6,589 | ||||||
Proceeds from sale of net acreage | $ 37 |
Viper Energy Partners LP (Detai
Viper Energy Partners LP (Details) - USD ($) | Mar. 01, 2019 | Jul. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 10, 2018 |
Noncontrolling Interest [Line Items] | ||||||||
Decrease in non-controlling interest | $ 74,000,000 | |||||||
General Partners' Contributed Capital | $ 1,000,000 | |||||||
Limited Partners' Contributed Capital | $ 1,000,000 | |||||||
Limited partners capital account, percentage of distribution | 8.00% | |||||||
Number of Class B Units Converted | 731,500 | |||||||
Partners' Capital Account, Units, Converted | 731,500 | |||||||
Limited Partners' Capital Account, Distribution Amount | $ 10,000 | |||||||
Revenue from Related Parties | $ 0 | $ 0 | 0 | $ 0 | ||||
Parent Company [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Units of Partnership Interest, Amount | 73,150,000 | |||||||
Class B Units Outstanding | 73,150,000 | |||||||
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest | 59.00% | 64.00% | ||||||
Partnership Agreement [Member] | General Partner [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Revenue from Related Parties | $ 1,000,000 | $ 1,000,000 | ||||||
General Partner [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 41.00% | 36.00% | ||||||
Follow-on Public Offering [Member] | Viper Energy Partners LP [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 54.00% | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 10,925,000 | |||||||
Sale of Stock, Consideration Received on Transaction | $ 341,000,000 | |||||||
Over-Allotment Option [Member] | Viper Energy Partners LP [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Sale of Stock, Number of Shares Issued in Transaction | 1,425,000 | |||||||
Maximum [Member] | Partnership Agreement [Member] | General Partner [Member] | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Revenue from Related Parties | $ 1,000,000 | $ 1,000,000 |
Rattler Midstream LP (Details)
Rattler Midstream LP (Details) - USD ($) | May 28, 2019 | Mar. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 10, 2018 |
Noncontrolling Interest [Line Items] | |||||||
Limited Partners' Contributed Capital | $ 1,000,000 | ||||||
General Partners' Contributed Capital | $ 1,000,000 | ||||||
Proceeds from Contributions from Affiliates | $ 0 | $ 0 | |||||
Limited partners capital account, percentage of distribution | 8.00% | ||||||
Revenue from Related Parties | $ 0 | $ 0 | $ 0 | $ 0 | |||
Rattler MIdstream LP [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Limited Partners' Contributed Capital | $ 1,000,000 | ||||||
General Partners' Contributed Capital | $ 1,000,000 | ||||||
Limited partners capital account, percentage of distribution | 8.00% | ||||||
Parent Company [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Class B Units Outstanding | 73,150,000 | ||||||
Parent Company [Member] | Rattler MIdstream LP [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Class B Units Outstanding | 107,815,152 | ||||||
Rattler Midstream LP | Over-Allotment Option [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 1,425,000 | ||||||
Rattler Midstream LP | Rattler MIdstream LP [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Noncontrolling Interest, Ownership Percentage by Parent | 71.00% | 71.00% | |||||
Rattler Midstream LP | Rattler MIdstream LP [Member] | IPO [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 43,700,000 | ||||||
Shares Issued, Price Per Share | $ 17.50 | ||||||
Sale of Stock, Consideration Received on Transaction | $ 720,000,000 | ||||||
Proceeds from Contributions from Affiliates | $ 727,000,000 | ||||||
Rattler Midstream LP | Rattler MIdstream LP [Member] | Over-Allotment Option [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Sale of Stock, Number of Shares Issued in Transaction | 5,700,000 | ||||||
Rattler's Services and Secondment Agreement [Member] | General Partner [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Revenue from Related Parties | $ 1,000,000 | $ 2,000,000 | |||||
Rattler Partnership Agreement [Member] | General Partner [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Revenue from Related Parties | 37,907 | 37,907 | |||||
Rattler Tax Sharing Agreement [Member] | General Partner [Member] | |||||||
Noncontrolling Interest [Line Items] | |||||||
Current State and Local Tax Expense (Benefit) | $ 31,814 | $ 31,814 |
Real Estate Assets (Details)
Real Estate Assets (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate [Line Items] | ||
Buildings | $ 102 | $ 103 |
Tenant improvements | 4 | 4 |
Land | 2 | 1 |
Land improvements | 1 | 1 |
Total real estate assets | 109 | 109 |
Less: accumulated depreciation | (6) | (4) |
Total investment in land and buildings, net | 103 | 105 |
In-place lease intangibles | 11 | 11 |
Less: accumulated amortization | (5) | (3) |
In-place lease intangibles, net | 6 | 8 |
Above-market lease intangibles | 4 | 4 |
Less: accumulated amortization | (1) | (1) |
Above-market lease intangibles, net | 3 | 3 |
Total intangible lease assets, net | $ 9 | $ 11 |
Leases, Acquired-in-Place [Member] | ||
Real Estate [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 45 months | |
Above Market Leases [Member] | ||
Real Estate [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 45 months | |
Building [Member] | ||
Real Estate [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 30 years | |
Leasehold Improvements [Member] | ||
Real Estate [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 15 years | |
Land Improvements [Member] | ||
Real Estate [Line Items] | ||
Property, Plant and Equipment, Estimated Useful Lives | 15 years |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Oil and natural gas properties: | ||||||||
Not subject to depletion | $ 9,585 | $ 9,585 | $ 9,670 | |||||
Gross oil and natural gas properties | 24,076 | 24,076 | 22,299 | |||||
Accumulated depletion and depreciation | (3,451) | (3,451) | (2,774) | |||||
Midstream assets | 828 | 828 | 700 | |||||
Other property, equipment and land | 150 | 150 | 147 | |||||
Net property and equipment | 21,603 | 21,603 | 20,372 | |||||
Capitalized internal costs | 11 | $ 7 | 24 | $ 14 | ||||
Exploration costs or development costs not subject to depletion | 81 | 81 | 68 | |||||
Capitalized interest not subject to depletion | 86 | $ 86 | 55 | |||||
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 | 14,491 | $ 14,491 | 12,629 | |||||
Not subject to depletion | 9,585 | 9,585 | 9,670 | |||||
Gross oil and natural gas properties | 24,076 | 24,076 | 22,299 | |||||
Accumulated depletion and depreciation | (2,252) | (2,252) | (1,599) | |||||
Accumulated impairment | (1,144) | (1,144) | (1,144) | |||||
Oil and natural gas properties, net | 20,680 | 20,680 | 19,556 | |||||
Balance of costs not subject to depletion: | 255 | 6,053 | $ 2,499 | $ 683 | $ 95 | |||
Other Property and Equipment, Net [Member] | ||||||||
Oil and natural gas properties: | ||||||||
Accumulated depletion and depreciation | (55) | (55) | (31) | |||||
Other property, equipment and land | $ 150 | $ 150 | $ 147 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Changes in ARO liability | |||||
Asset retirement obligations, beginning of period | $ 136 | $ 21 | |||
Additional liabilities incurred | 2 | 2 | |||
Liabilities acquired | 3 | 0 | |||
Liabilities settled | (4) | (1) | |||
Asset retirement obligation accretion | $ 3 | $ 0 | 5 | 1 | |
Asset retirement obligations, end of period | 142 | 23 | 142 | 23 | |
Less current portion | 0 | 1 | 0 | 1 | |
Asset retirement obligations - long-term | $ 142 | $ 22 | $ 142 | $ 22 | $ 136 |
Equity Method Investments (Deta
Equity Method Investments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 29, 2019 | Feb. 15, 2019 | Feb. 01, 2019 | Dec. 31, 2018 | Oct. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investments | $ 187,000,000 | $ 187,000,000 | $ 1,000,000 | |||||
Equity Method Investment, Other than Temporary Impairment | 0 | $ 0 | ||||||
HMW Fluid Management LLC [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 25.00% | |||||||
EPIC Crude Holdings, LP [Domain] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 10.00% | |||||||
Equity method investments expense related to interest | 3,000 | |||||||
Equity method investments | 72,000,000 | 72,000,000 | ||||||
Gray Oak Pipeline [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 10.00% | |||||||
Equity method investments expense related to interest | 61,000 | |||||||
Equity method investments | 115,000,000 | 115,000,000 | ||||||
Gray Oak Pipeline [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity method investment promissory note borrowings during period | 23,000,000 | |||||||
Equity method investment promissory note repayments during period | 23,000,000 | |||||||
Equity method investment promissory note | $ 123,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.52% | |||||||
Subsequent Event [Member] | Gray Oak Pipeline [Member] | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Amount outstanding under equity method investment promissory note | $ 0 | $ 0 |
Debt - Long-term Debt (Details)
Debt - Long-term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 28, 2019 | Dec. 31, 2018 | Dec. 20, 2016 | Oct. 28, 2016 | |
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ (23) | $ (27) | ||||
Unamortized premium cost | 10 | 10 | ||||
Long-term Debt | 4,472 | 4,464 | ||||
4.625% Notes due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | [1] | $ 399 | $ 400 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | ||||
7.32% Medium Term Series A due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | [1] | $ 21 | $ 20 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.32% | 7.32% | ||||
Senior Unsecured Notes due 2024 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 1,250 | $ 1,250 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% | |||
Senior Unsecured Notes due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 800 | $ 800 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | |||
7.35% Medium Term Notes Series A [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | [1] | $ 11 | $ 10 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.35% | 7.35% | ||||
7.125% Medium Term Notes Series B [Member] [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | [1] | $ 108 | $ 100 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | ||||
DrillCo Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 43 | $ 0 | ||||
Company Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing base | 3,400 | $ 2,650 | ||||
Long-term Debt, Gross | 1,639 | 1,490 | ||||
Viper Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Current borrowing base | 600 | |||||
Long-term Debt, Gross | 213 | 411 | ||||
Rattler Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 1 | $ 0 | ||||
[1] | At the effective time of the Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of these notes (the “Energen Notes”). |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - USD ($) $ in Millions | Sep. 18, 2018 | Jan. 29, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 20, 2016 | Oct. 28, 2016 |
Debt Instrument [Line Items] | |||||||
Proceeds from Issuance of Senior Long-term Debt | $ 0 | $ 312 | |||||
Senior Unsecured Notes due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated 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 Additional Notes due 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 750 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 741 | ||||||
Senior Unsecured Notes due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500 | ||||||
Debt Instrument, Interest Rate, Stated 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 | ||||||
Senior Unsecured Additional Notes due 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 300 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||||||
Proceeds from Issuance of Senior Long-term Debt | $ 308 | ||||||
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 - Energen Notes (Details)
Debt - Energen Notes (Details) - Energen [Member] $ in Millions | Nov. 29, 2018USD ($) |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 530 |
Senior Subordinated Notes [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 400 |
Debt Instrument, Interest Rate, Stated Percentage | 4.625% |
Medium-term Notes, Series B [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 100 |
Debt Instrument, Interest Rate, Stated Percentage | 7.125% |
Medium-term Notes, Series A, Due July 28, 2022 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 20 |
Debt Instrument, Interest Rate, Stated Percentage | 7.32% |
Medium-term Notes, Series A, Due July 28, 2027 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 10 |
Debt Instrument, Interest Rate, Stated Percentage | 7.35% |
Debt - Credit Facility - Wells
Debt - Credit Facility - Wells Fargo Bank (Details) - Company Credit Facility [Member] $ in Millions | 6 Months Ended | ||
Jun. 30, 2019USD ($)redetermindation | Jun. 28, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 5,000 | ||
Number of interim redeterminations that may be requested | redetermindation | 2 | ||
Period of redeterminations (in months) | 12 months | ||
Current borrowing base | $ 3,400 | $ 2,650 | |
Line of Credit Facility, Elected Borrowing Base | 2,500 | ||
Long-term Debt, Gross | 1,639 | $ 1,490 | |
Remaining Borrowing Capacity | $ 861 | ||
Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | ||
Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | ||
Federal Funds Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 0.50% | ||
LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.00% | ||
LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.25% | ||
LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 2.25% | ||
Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 0.25% | ||
Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.25% | ||
External Credit Rating, Investment Grade [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.125% | ||
External Credit Rating, Investment Grade [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.35% | ||
External Credit Rating, Investment Grade [Member] | LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.125% | ||
External Credit Rating, Investment Grade [Member] | LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 2.00% | ||
External Credit Rating, Investment Grade [Member] | Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 0.125% | ||
External Credit Rating, Investment Grade [Member] | Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.00% |
Debt - Viper's Credit Facility
Debt - Viper's Credit Facility - Wells Fargo Bank (Details) - Viper Credit Facility [Member] $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)redetermindation | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 2,000 | |
Current borrowing base | $ 600 | |
Number of interim redeterminations that may be requested | redetermindation | 3 | |
Period of redeterminations (in months) | 12 months | |
Long-term Debt, Gross | $ 213 | $ 411 |
Remaining Borrowing Capacity | $ 387 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | |
Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.50% | |
LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.00% | |
LIBOR [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.75% | |
LIBOR [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 2.75% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.75% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.75% |
Debt - Rattler's Credit Agreeme
Debt - Rattler's Credit Agreement (Details) - Rattler Credit Facility [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 600 | |
Long-term Debt, Gross | 1 | $ 0 |
Remaining Borrowing Capacity | $ 599 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.25% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |
Prime Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.25% | |
Prime Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.25% | |
LIBOR [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.25% | |
LIBOR [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 2.25% |
Debt - Financial Covenant Table
Debt - Financial Covenant Table (Details) $ in Millions | 1 Months Ended |
Jun. 30, 2019USD ($) | |
Line of Credit Facility [Line Items] | |
Consolidated Total Leverage Ratio | 5 |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Covenant Terms, Ratio of Consolidated Senior Secured Leverage Ratio | 3.50 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Covenant Terms, Ratio of Consolidated Interest Coverage | 2.50 |
Company Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial covenant, reduction of borrowing base (percentage) | 25.00% |
Company Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total net 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 |
Viper Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial covenant, maximum issuance of unsecured debt | $ 400 |
Financial covenant, reduction of borrowing base (percentage) | 25.00% |
Viper Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX | 4 |
Viper Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1 |
Debt - Alliance with Obsidian R
Debt - Alliance with Obsidian Resources, L.L.C. (Details) - DrillCo Agreement [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Maximum Funding Amount Through Joint Venture | $ 300 |
Amounts received from joint venture | $ 30 |
Wells drilled and completed under joint venture agreement | 8 |
Capital Stock and Earnings Pe_3
Capital Stock and Earnings Per Share - Capital Stock (Details) - USD ($) $ in Millions | Mar. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | May 10, 2018 |
Class of Stock [Line Items] | |||||
Limited Partners' Contributed Capital | $ 1 | ||||
General Partners' Contributed Capital | $ 1 | ||||
Proceeds from Contributions from Affiliates | $ 0 | $ 0 | |||
Limited partners capital account, percentage of distribution | 8.00% | ||||
Stock Repurchase Program Amount Repurchased | $ 104 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 1,900 | 1,900 | |||
Follow-on Public Offering [Member] | Viper Energy Partners LP [Member] | |||||
Class of Stock [Line Items] | |||||
Sale of Stock, Number of Shares Issued in Transaction | 10,925,000 | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 54.00% | ||||
Sale of Stock, Consideration Received on Transaction | $ 341 | ||||
Over-Allotment Option [Member] | Viper Energy Partners LP [Member] | |||||
Class of Stock [Line Items] | |||||
Sale of Stock, Number of Shares Issued in Transaction | 1,425,000 | ||||
Subsequent Event [Member] | |||||
Class of Stock [Line Items] | |||||
Stock Repurchase Program, Authorized Amount | $ 2,000 | $ 2,000 |
Capital Stock and Earnings Pe_4
Capital Stock and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Basic: | ||||
Net income attributable to common stock | $ 349 | $ 219 | $ 359 | $ 382 |
Basic weighted average common units outstanding | 164,839 | 98,614 | 164,846 | 98,584 |
Basic net income attributable to common stock | $ 2.12 | $ 2.22 | $ 2.18 | $ 3.87 |
Effect of Dilutive Securities: | ||||
Dilutive effect of potential common shares issuable (in shares) | 180 | 183 | 407 | 236 |
Diluted: | ||||
Diluted weighted average common shares outstanding | 165,019 | 98,797 | 165,253 | 98,820 |
Diluted net income attributable to common stock | $ 2.11 | $ 2.22 | $ 2.17 | $ 3.87 |
Antidilutive securities excluded from earnings per share (in shares) | 60 | 32 | 20 | 0 |
Equity-Based Compensation - Sch
Equity-Based Compensation - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | $ 4 | $ 2 | $ 10 | $ 5 |
General and Administrative Expense [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
General and administrative expenses | $ 9 | $ 6 | $ 23 | $ 13 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Units (Details) - Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | |
Awards & Units (in shares) | ||
Unvested at December 31, 2018 | shares | 324,224 | |
Granted | shares | 450,297 | |
Vested | shares | (177,537) | |
Forfeited | shares | (57,146) | |
Unvested at June 30, 2019 | shares | 539,838 | |
Weighted Average Grant-Date Fair Value (in dollars per share) | ||
Unvested at December 31, 2018 | $ / shares | $ 116.01 | |
Granted | $ / shares | 107.08 | |
Vested | $ / shares | 109.08 | |
Forfeited | $ / shares | 108.93 | |
Unvested at June 30, 2019 | $ / shares | $ 111.59 | |
Aggregate fair value of share-based awards that vested | $ | $ 19 | $ 10 |
Unrecognized compensation cost related to unvested awards | $ | $ 37 | |
Unrecognized compensation cost, period of recognition (in years) | 1 year 1 month 6 days |
Equity-Based Compensation - Per
Equity-Based Compensation - Performance Restricted Stock Activity (Details) - Equity Plan [Member] - Performance Shares [Member] $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Mar. 31, 2019$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | ||
Awards & Units (in shares) | |||
Unvested at December 31, 2018 | 196,203 | ||
Granted | 356,227 | ||
Vested | (123,546) | ||
Forfeited | (45,868) | ||
Unvested at June 30, 2019 | 383,016 | [1] | |
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Unvested at December 31, 2018 | $ / shares | $ 169.76 | ||
Granted | $ / shares | 131.30 | ||
Vested | $ / shares | 121.41 | ||
Forfeited | $ / shares | 155.68 | ||
Unvested at June 30, 2019 | $ / shares | $ 151.27 | ||
Share Based Compensation Arrangement by Share Based Payment Maximum Award Potential | 766,032 | ||
Unrecognized compensation cost related to unvested awards | $ | $ 37 | ||
Unrecognized compensation cost, period of recognition (in years) | 2 years 6 months | ||
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 | 199,723 | ||
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Granted | $ / shares | $ 137.22 | ||
Three-Year [Member] | 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% | ||
Three-Year [Member] | 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% | ||
Five-Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance shares, performance period | 5 years | ||
Awards & Units (in shares) | |||
Granted | 32,958 | ||
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Granted | $ / shares | $ 132.48 | ||
Five-Year [Member] | 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% | ||
Five-Year [Member] | 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% | ||
[1] | A maximum of 766,032 units could be awarded based upon the Company’s final TSR ranking. |
Equity-Based Compensation - Val
Equity-Based Compensation - Valuation Assumptions (Details) - Equity Plan [Member] - Performance Shares [Member] - $ / shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 131.30 | |
Risk-free rate (percentage) | 2.55% | |
Company volatility (percentage) | 35.00% | |
Three-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 137.22 | |
Five-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 132.48 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Appreciation Rights (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Awards & Units (in shares) | |
Outstanding at December 31, 2018 | shares | 332,387 |
Exercised | shares | (70,722) |
Outstanding at June 30, 2019 | shares | 261,665 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Outstanding at December 31, 2018 | $ / shares | $ 95.04 |
Exercised | $ / shares | 80.05 |
Outstanding at June 30, 2019 | $ / shares | $ 89.19 |
Equity Plan [Member] | Stock Appreciation Rights (SARs) [Member] | |
Awards & Units (in shares) | |
Outstanding at December 31, 2018 | shares | 57,721 |
Exercised | shares | (9,888) |
Expired | shares | (3,229) |
Outstanding at June 30, 2019 | shares | 44,604 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Outstanding at December 31, 2018 | $ / shares | $ 22.12 |
Exercised | $ / shares | 73.68 |
Expired | $ / shares | 102.92 |
Outstanding at June 30, 2019 | $ / shares | $ 28.90 |
Equity-Based Compensation - S_2
Equity-Based Compensation - Stock Options (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Options (in shares) | |
Outstanding at December 31, 2018 | shares | 332,387 |
Exercised | shares | (70,722) |
Outstanding at June 30, 2019 | shares | 261,665 |
\Weighted Average Exercise Price (in dollars per share) | |
Outstanding at December 31, 2018 | $ / shares | $ 95.04 |
Exercised | $ / shares | 80.05 |
Outstanding at June 30, 2019 | $ / shares | $ 89.19 |
Weighted average remaining contractual term | 2 years 2 months 4 days |
Intrinsic value of options outstanding | $ | $ 5 |
Vested and Expected to vest at June 30, 2019 | shares | 261,665 |
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares | $ 89.19 |
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 2 months 4 days |
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ | $ 5 |
Options, Vested and Expected to Vest, Exercisable, Number | shares | 261,665 |
Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ / shares | $ 89.19 |
Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 2 years 2 months 4 days |
Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ | $ 5 |
Equity-Based Compensation - Vip
Equity-Based Compensation - Viper Phantom Units (Details) - Viper Energy Partners LP Long Term Incentive Plan [Member] - Phantom Share Units (PSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2019 | |
Awards & Units (in shares) | |
Unvested at December 31, 2018 | 125,053 |
Granted | 17,601 |
Vested | (60,133) |
Forfeited | (1,028) |
Unvested at June 30, 2019 | 81,493 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Unvested at December 31, 2018 | $ 23.44 |
Granted | 33.54 |
Vested | 21.38 |
Forfeited | 42.50 |
Unvested at June 30, 2019 | $ 26.91 |
Aggregate fair value of share-based awards that vested | $ 1 |
Unrecognized compensation cost related to unvested awards | $ 1 |
Unrecognized compensation cost, period of recognition (in years) | 10 months 6 days |
Equity-Based Compensation - Rat
Equity-Based Compensation - Rattler Phantom Units (Details) - Phantom Share Units (PSUs) [Member] - Rattler Midstream LP Long-Term Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | May 28, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Nonvested Roll Forward | |||
Unvested at December 31, 2018 | 2,248,572 | 2,248,572 | 0 |
Granted | 2,248,572 | ||
Unvested at June 30, 2019 | 2,248,572 | 2,248,572 | 0 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |||
Unvested at December 31, 2018 | $ 19.20 | $ 19.20 | $ 0 |
Granted | 19.20 | ||
Unvested at June 30, 2019 | $ 19.20 | $ 19.20 | $ 0 |
Unrecognized compensation cost related to unvested awards | $ 42 | $ 42 | |
Unrecognized compensation cost, period of recognition (in years) | 2 years 10 months 24 days |
Related Party Transactions - Re
Related Party Transactions - Related Party Transactions (Details) | Jun. 23, 2014USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | $ 0 | $ 0 | $ 0 | $ 0 | |
Viper Energy Partners LP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | $ 39,000 | 0 | $ 39,198 | 0 | |
Number of leases extended | 1 | 2 | |||
Average price per acre | $ 1,800 | $ 1,686 | |||
Revenue from related parties on new leases | $ 3,101 | ||||
Number of new leases | 2 | ||||
Average price per acre on new leases | $ 14,766 | ||||
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 | ||||
Revenue from Related Parties | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Effective income tax rate | 22.30% | (2.20%) | 14.80% | 7.80% |
Discrete income tax benefit related to deferred taxes recorded during the period | $ 35 | |||
Maximum [Member] | ||||
Investments, Owned, Federal Income Tax Note [Line Items] | ||||
Discrete income tax benefit recorded during the period related to equity-based compensation | $ 1 |
Derivatives - Open Derivative P
Derivatives - Open Derivative Positions (Details) | 6 Months Ended |
Jun. 30, 2019MMBTU$ / bbl$ / MMBTUbbl | |
WTI Cushing Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,512,000 |
Fixed Swap Price (in dollars per bbl) | 61.15 |
WTI Cushing Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,555,000 |
Fixed Swap Price (in dollars per bbl) | 59.37 |
WTI Magellan East Houston Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,472,000 |
Fixed Swap Price (in dollars per bbl) | 65.88 |
WTI Magellan East Houston Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,190,000 |
Fixed Swap Price (in dollars per bbl) | 62.80 |
BRENT Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,288,000 |
Fixed Swap Price (in dollars per bbl) | 67.79 |
BRENT Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 730,000 |
Fixed Swap Price (in dollars per bbl) | 66 |
WTI Cushing Oil Basis Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 8,280,000 |
Fixed Swap Price (in dollars per bbl) | (5.52) |
WTI Cushing Oil Basis Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 15,120,000 |
Fixed Swap Price (in dollars per bbl) | (1.21) |
Natural Gas Swaps 2019 - Henry Hub [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 12,880,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.06 |
Natural Gas Swaps 2020 - Henry Hub [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0 |
Natural Gas Basis swaps - Waha Hub 2019 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 12,880,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | (1.56) |
Natural Gas Basis Swaps - Waha Hub 2020 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 18,250,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | (1.67) |
Natural Gas Liquid Swaps - Mont Belvieu 2019 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 1,380,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 27.30 |
Natural Gas Liquid Swaps - Mont Belvieu 2020 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0 |
2019 Three-Way Collars - WTI Cushing [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,880,000 |
Short put price (per Bbl) | 35.94 |
Floor price (per Bbl) | 45.94 |
Ceiling price (per Bbl) | 61.65 |
2019 Three-Way Collars - BRENT [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,288,000 |
Short put price (per Bbl) | 52.14 |
Floor price (per Bbl) | 62.14 |
Ceiling price (per Bbl) | 78.70 |
2019 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 920,000 |
Short put price (per Bbl) | 50 |
Floor price (per Bbl) | 60 |
Ceiling price (per Bbl) | 66.10 |
2020 Three-Way Collars - WTI [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 3,650,000 |
Short put price (per Bbl) | 45 |
Floor price (per Bbl) | 55 |
Ceiling price (per Bbl) | 67.06 |
2020 Three-Way Collars - BRENT [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 6,588,000 |
Short put price (per Bbl) | 50.56 |
Floor price (per Bbl) | 60.56 |
Ceiling price (per Bbl) | 74.08 |
2020 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,110,000 |
Short put price (per Bbl) | 50 |
Floor price (per Bbl) | 60 |
Ceiling price (per Bbl) | 68.81 |
2020 WTI Cushing Put Spread [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,715,500 |
Short put price (per Bbl) | 45 |
Floor price (per Bbl) | 55 |
2020 Brent Put Spread [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,222,750 |
Short put price (per Bbl) | 50 |
Floor price (per Bbl) | 60 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ 52 | $ 231 |
Net amounts of assets presented in the Consolidated Balance Sheet | 52 | 231 |
Gross amounts of liabilities presented in the Consolidated Balance Sheet | 33 | 15 |
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ 33 | $ 15 |
Derivatives - Balance Sheet Loc
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current assets: derivative instruments | $ 29 | $ 231 |
Noncurrent assets: derivative instruments | 23 | 0 |
Total assets | 52 | 231 |
Current liabilities: derivative instruments | 25 | 0 |
Noncurrent liabilities: derivative instruments | 8 | 15 |
Total liabilities | $ 33 | $ 15 |
Derivatives - Gains and Losses
Derivatives - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Change in fair value of open non-hedge derivative instruments | $ 89 | $ (14) | $ (196) | $ (14) |
Gain (loss) on settlement of non-hedge derivative instruments | 5 | (45) | 22 | (77) |
Gain (loss) on derivative instruments | $ 94 | $ (59) | $ (174) | $ (91) |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets: | |||||||
Impact of adoption of ASU 2016-01, net of tax | $ (16) | ||||||
Gain on revaluation of investment | $ 0 | $ 4 | $ 4 | $ 5 | |||
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets: | |||||||
Fixed price swaps | 0 | 0 | $ 0 | ||||
Equity Method Investments, Fair Value Disclosure | 18 | 18 | 14 | ||||
Impact of adoption of ASU 2016-01, net of tax | $ (19) | ||||||
Gain on revaluation of investment | 4 | 5 | |||||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||||
Assets: | |||||||
Fixed price swaps | 0 | 0 | 0 | ||||
Fair Value, Net Asset (Liability) | 19 | 19 | 216 | ||||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | 0 | ||||
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | |||||||
Assets: | |||||||
Fixed price swaps | 0 | 0 | 0 | ||||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | 0 | ||||
Other Noncurrent Assets [Member] | Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||||
Assets: | |||||||
Equity Method Investments, Fair Value Disclosure | $ 18 | $ 20 | $ 18 | $ 20 | $ 14 | $ 34 |
Fair Value Measurements - Nonre
Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 20, 2016 | Oct. 28, 2016 | |
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Long-term Debt | $ 4,472 | $ 4,464 | |||
4.625% Notes due 2021 [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |||
7.32% Medium Term Series A due 2022 [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.32% | 7.32% | |||
Senior Unsecured Notes due 2024 [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Debt Instrument, Interest Rate, Stated 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 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | ||
7.35% Medium Term Notes Series A [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.35% | 7.35% | |||
7.125% Medium Term Notes Series B [Member] [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | |||
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 | $ 1,639 | $ 1,490 | |||
Reported Value Measurement [Member] | 4.625% Notes due 2021 [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 399 | 400 | ||
Reported Value Measurement [Member] | 7.32% Medium Term Series A due 2022 [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 21 | 20 | ||
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 | 1,250 | 1,250 | |||
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 | 800 | 800 | |||
Reported Value Measurement [Member] | 7.35% Medium Term Notes Series A [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 11 | 10 | ||
Reported Value Measurement [Member] | 7.125% Medium Term Notes Series B [Member] [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 108 | 100 | ||
Reported Value Measurement [Member] | Viper Credit Facility [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Revolving credit facility | 213 | 411 | |||
Reported Value Measurement [Member] | Rattler Credit Facility [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Revolving credit facility | 1 | 0 | |||
Reported Value Measurement [Member] | DrillCo Agreement [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Long-term Debt | 43 | 0 | |||
Estimate of Fair Value Measurement [Member] | 4.625% Notes due 2021 [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 410 | 393 | ||
Estimate of Fair Value Measurement [Member] | 7.32% Medium Term Series A due 2022 [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 22 | 21 | ||
Estimate of Fair Value Measurement [Member] | 7.35% Medium Term Notes Series A [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 11 | 11 | ||
Estimate of Fair Value Measurement [Member] | 7.125% Medium Term Notes Series B [Member] [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Senior Notes | [1] | 111 | 102 | ||
Estimate of Fair Value Measurement [Member] | DrillCo Agreement [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Long-term Debt, Fair Value | 43 | 0 | |||
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 | 1,289 | 1,204 | |||
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 | 841 | 782 | |||
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 | 1,639 | 1,490 | |||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Viper Credit Facility [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Revolving credit facility | 213 | 411 | |||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Rattler Credit Facility [Member] | Nonrecurring [Member] | |||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||
Revolving credit facility | $ 1 | $ 0 | |||
[1] | At the effective time of the Energen Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of the Energen Notes. These notes were marked to fair value with the excess being amortized. |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 23 | $ 23 | $ 13 |
Operating Lease, Cost | 8 | 12 | |
Operating Lease, Payments | 12 | ||
Additional amount of operating lease right of use asset recorded | 13 | ||
Operating Lease, Liability | 23 | 23 | |
Operating Lease, Liability, Current | $ 17 | $ 17 | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 6 months | 1 year 6 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 8.40% | 8.40% | |
2019 (July - December) | $ 14 | $ 14 | |
2020 | 7 | 7 | |
2021 | 3 | 3 | |
2022 | 1 | 1 | |
2023 | 0 | 0 | |
Thereafter | 0 | 0 | |
Total lease payments | 25 | 25 | |
Less: interest | $ 2 | $ 2 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 06, 2019$ / bblbbl | Sep. 30, 2019USD ($)aMMBTU$ / shares$ / Mcf | Jun. 30, 2019USD ($)a$ / shares$ / bbl | Jun. 30, 2018$ / shares | Jun. 30, 2019USD ($)$ / shares$ / bblbbl | Jun. 30, 2018USD ($)$ / shares | |
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ / shares | $ 0.1875 | $ 0.125 | $ 0.375 | $ 0.250 | ||
Payments to Acquire Mineral Rights | $ | $ 125 | $ 253 | ||||
Natural gas liquid swaps - Mont Belvieu 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (MMBtu) | MMBTU | 10,980,000 | |||||
Fixed Swap Price (in dollars per bbl) | $ / Mcf | 1.70 | |||||
Derivative, Price Risk Option Strike Price | $ / Mcf | 1.70 | |||||
2020 Three-Way Collars - WTI [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 3,650,000 | |||||
Short put price (per Bbl) | 45 | 45 | ||||
Floor price (per Bbl) | 55 | 55 | ||||
Ceiling price (per Bbl) | 67.06 | 67.06 | ||||
WTI Cushing Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,555,000 | |||||
Fixed Swap Price (in dollars per bbl) | 59.37 | 59.37 | ||||
BRENT Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 730,000 | |||||
Fixed Swap Price (in dollars per bbl) | 66 | 66 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Distribution Made to Limited Partner, Declaration Date | Aug. 5, 2019 | |||||
Dividends declared per share | $ / shares | $ 0.1875 | |||||
Line of Credit Facility, Anticipated Increase (Decrease), Net | $ | $ 125 | |||||
Line of Credit Facility, Anticipated Borrowing Capacity | $ | $ 725 | |||||
Distribution Made to Limited Partner, Distribution Date | Aug. 26, 2019 | |||||
Distribution Made to Limited Partner, Date of Record | Aug. 16, 2019 | |||||
Subsequent Event [Member] | 2020 Three-Way Collars - WTI [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 366,000 | |||||
Short put price (per Bbl) | 45 | |||||
Floor price (per Bbl) | 55 | |||||
Ceiling price (per Bbl) | 62.35 | |||||
Subsequent Event [Member] | WTI Cushing Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 366,000 | |||||
Fixed Swap Price (in dollars per bbl) | 57.15 | |||||
Subsequent Event [Member] | BRENT Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 732,000 | |||||
Fixed Swap Price (in dollars per bbl) | 63 | |||||
Viper Energy Partners LP [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net acres divested | a | 6,589 | |||||
Proceeds from sale of net acreage | $ | $ 37 | |||||
Viper Energy Partners LP [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Net acres divested | a | 103,750 | |||||
Proceeds from sale of net acreage | $ | $ 285 | |||||
Viper Energy Partners LP [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Noncontrolling Interest, Units Issued During the Period Pursuant to Acquisitions | $ | 18.3 | |||||
Payments to Acquire Mineral Rights | $ | $ 150 | |||||
Volume weighted average sales price per common unit | $ / shares | $ 30.07 | |||||
Value of pending acquisition | $ | $ 700 | |||||
Net acres acquired in pending acquisition | a | 5,090 | |||||
Percentage of mineral acres operated by affiliate | 95.00% | |||||
Average net royalty interest after pending acquisition | 3.20% | |||||
Combined Net Acreage After Close of Pending Acquisition | a | 20,960 | |||||
Viper Credit Facility [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Current borrowing base | $ | $ 600 | $ 600 |
Report of Business Segments (De
Report of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||||
Third-party Revenue | $ 1,021 | $ 527 | $ 1,885 | $ 1,006 | |
Revenue from Related Parties | 0 | 0 | 0 | 0 | |
Revenues | 1,021 | 527 | 1,885 | 1,006 | |
Operating Income (Loss) | 411 | 281 | 730 | 548 | |
Nonoperating Income (Expense) | 47 | 13 | (262) | (29) | |
Income Tax Expense (Benefit) | 102 | (7) | 69 | 40 | |
Net income attributable to non-controlling interest | 7 | 82 | 40 | 97 | |
Net income attributable to Diamondback Energy, Inc. | 349 | 219 | 359 | 382 | |
Assets | 23,171 | 8,954 | 23,171 | 8,954 | $ 21,596 |
Oil sales | |||||
Segment Reporting Information [Line Items] | |||||
Third-party Revenue | 1,003 | 516 | 1,845 | 983 | |
Revenue from Related Parties | 0 | 0 | 0 | 0 | |
Revenues | 1,003 | 516 | 1,845 | 983 | |
Operating Income (Loss) | 388 | 278 | 684 | 539 | |
Nonoperating Income (Expense) | 48 | 17 | (260) | (26) | |
Income Tax Expense (Benefit) | 101 | (7) | 68 | 40 | |
Net income attributable to non-controlling interest | 7 | 82 | 40 | 97 | |
Net income attributable to Diamondback Energy, Inc. | 328 | 220 | 316 | 376 | |
Assets | 22,138 | 8,473 | 22,138 | 8,473 | |
Midstream services | |||||
Segment Reporting Information [Line Items] | |||||
Third-party Revenue | 18 | 11 | 40 | 23 | |
Revenue from Related Parties | 93 | 39 | 167 | 60 | |
Revenues | 111 | 50 | 207 | 83 | |
Operating Income (Loss) | 56 | 24 | 106 | 41 | |
Nonoperating Income (Expense) | 0 | (4) | 0 | (3) | |
Income Tax Expense (Benefit) | 1 | 0 | 1 | 0 | |
Net income attributable to non-controlling interest | 15 | 0 | 15 | 0 | |
Net income attributable to Diamondback Energy, Inc. | 40 | 20 | 90 | 38 | |
Assets | 1,187 | 521 | 1,187 | 521 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Third-party Revenue | 0 | 0 | 0 | 0 | |
Revenue from Related Parties | (93) | (39) | (167) | (60) | |
Revenues | (93) | (39) | (167) | (60) | |
Operating Income (Loss) | (33) | (21) | (60) | (32) | |
Nonoperating Income (Expense) | (1) | 0 | (2) | 0 | |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 | |
Net income attributable to non-controlling interest | (15) | 0 | (15) | 0 | |
Net income attributable to Diamondback Energy, Inc. | (19) | (21) | (47) | (32) | |
Assets | $ (154) | $ (40) | $ (154) | $ (40) |
Guarantor Financial Statement_2
Guarantor Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 326 | $ 215 | $ 114 | $ 112 | ||
Accounts receivable, net | 517 | 392 | ||||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||||
Intercompany receivable | 0 | 0 | ||||
Inventories | 44 | 37 | ||||
Derivative instruments | 29 | 231 | ||||
Other current assets | 56 | 50 | ||||
Total current assets | 972 | 925 | ||||
Property and equipment: | ||||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 24,076 | 22,299 | ||||
Midstream assets | 828 | 700 | ||||
Other property, equipment and land | 150 | 147 | ||||
Accumulated depletion, depreciation, amortization and impairment | (3,451) | (2,774) | ||||
Net property and equipment | 21,603 | 20,372 | ||||
Funds held in escrow | 13 | 0 | ||||
Equity method investments | 187 | 1 | ||||
Derivative instruments | 23 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Deferred tax asset | 150 | 97 | ||||
Investment in real estate, net | 112 | 116 | ||||
Other assets | 111 | 85 | ||||
Total assets | 23,171 | 21,596 | 8,954 | |||
Current liabilities: | ||||||
Accounts payable-trade | 204 | 128 | ||||
Intercompany payable | 0 | 0 | ||||
Accrued capital expenditures | 573 | 495 | ||||
Other accrued liabilities | 239 | 253 | ||||
Revenues and royalties payable | 139 | 143 | ||||
Derivative instruments | 25 | 0 | ||||
Total current liabilities | 1,180 | 1,019 | ||||
Long-term debt | 4,472 | 4,464 | ||||
Derivative instruments | 8 | 15 | ||||
Asset retirement obligations | 142 | 136 | 22 | |||
Deferred income taxes | 1,909 | 1,785 | ||||
Other long-term liabilities | 10 | 10 | ||||
Total liabilities | 7,721 | 7,429 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | 14,004 | 13,700 | ||||
Non-controlling interest | 1,446 | 467 | ||||
Total equity | 15,450 | $ 14,514 | 14,167 | 6,012 | $ 5,735 | 5,582 |
Total liabilities and equity | 23,171 | 21,596 | ||||
Eliminations [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||||
Accounts Receivable, Related Parties, Current | (9) | (9) | ||||
Intercompany receivable | (5,581) | (4,664) | ||||
Inventories | 0 | 0 | ||||
Derivative instruments | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | (5,590) | (4,673) | ||||
Property and equipment: | ||||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | (154) | (4) | ||||
Midstream assets | 0 | 0 | ||||
Other property, equipment and land | 0 | 0 | ||||
Accumulated depletion, depreciation, amortization and impairment | (3) | (12) | ||||
Net property and equipment | (157) | (16) | ||||
Funds held in escrow | 0 | |||||
Equity method investments | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Investment in subsidiaries | (12,008) | (11,688) | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in real estate, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | (17,755) | (16,377) | ||||
Current liabilities: | ||||||
Accounts payable-trade | (17) | 0 | ||||
Intercompany payable | (5,015) | (4,673) | ||||
Accrued capital expenditures | 0 | 0 | ||||
Other accrued liabilities | 0 | 0 | ||||
Revenues and royalties payable | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Total current liabilities | (5,032) | (4,673) | ||||
Long-term debt | 0 | 0 | ||||
Derivative instruments | 0 | 0 | ||||
Asset retirement obligations | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | (5,032) | (4,673) | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | (13,026) | (11,476) | ||||
Non-controlling interest | 303 | (228) | ||||
Total equity | (12,723) | (11,704) | ||||
Total liabilities and equity | (17,755) | (16,377) | ||||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 295 | 84 | 66 | 54 | ||
Accounts receivable, net | 0 | 0 | ||||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||||
Intercompany receivable | 4,383 | 4,469 | ||||
Inventories | 0 | 0 | ||||
Derivative instruments | 0 | 0 | ||||
Other current assets | 1 | 3 | ||||
Total current assets | 4,679 | 4,556 | ||||
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, equipment and land | 0 | 0 | ||||
Accumulated depletion, depreciation, amortization and impairment | 0 | 0 | ||||
Net property and equipment | 0 | 0 | ||||
Funds held in escrow | 0 | |||||
Equity method investments | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Investment in subsidiaries | 12,008 | 11,576 | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in real estate, net | 0 | 0 | ||||
Other assets | 0 | 0 | ||||
Total assets | 16,687 | 16,132 | ||||
Current liabilities: | ||||||
Accounts payable-trade | 0 | 0 | ||||
Intercompany payable | 134 | 0 | ||||
Accrued capital expenditures | 0 | 0 | ||||
Other accrued liabilities | 14 | 14 | ||||
Revenues and royalties payable | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Total current liabilities | 148 | 14 | ||||
Long-term debt | 2,036 | 2,036 | ||||
Derivative instruments | 0 | 0 | ||||
Asset retirement obligations | 0 | 0 | ||||
Deferred income taxes | 499 | 382 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | 2,683 | 2,432 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | 14,004 | 13,700 | ||||
Non-controlling interest | 0 | 0 | ||||
Total equity | 14,004 | 13,700 | ||||
Total liabilities and equity | 16,687 | 16,132 | ||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 15 | 100 | 12 | 34 | ||
Accounts receivable, net | 468 | 351 | ||||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||||
Intercompany receivable | 1,198 | 195 | ||||
Inventories | 31 | 28 | ||||
Derivative instruments | 29 | 231 | ||||
Other current assets | 50 | 43 | ||||
Total current assets | 1,791 | 948 | ||||
Property and equipment: | ||||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 22,388 | 20,586 | ||||
Midstream assets | 6 | 284 | ||||
Other property, equipment and land | 56 | 71 | ||||
Accumulated depletion, depreciation, amortization and impairment | (3,123) | (2,486) | ||||
Net property and equipment | 19,327 | 18,455 | ||||
Funds held in escrow | 0 | |||||
Equity method investments | 0 | 1 | ||||
Derivative instruments | 23 | |||||
Investment in subsidiaries | 0 | 112 | ||||
Deferred tax asset | 0 | 0 | ||||
Investment in real estate, net | 2 | 12 | ||||
Other assets | 88 | 68 | ||||
Total assets | 21,231 | 19,596 | ||||
Current liabilities: | ||||||
Accounts payable-trade | 204 | 128 | ||||
Intercompany payable | 4,881 | 4,673 | ||||
Accrued capital expenditures | 505 | 495 | ||||
Other accrued liabilities | 192 | 170 | ||||
Revenues and royalties payable | 139 | 143 | ||||
Derivative instruments | 25 | |||||
Total current liabilities | 5,946 | 5,609 | ||||
Long-term debt | 2,222 | 2,017 | ||||
Derivative instruments | 8 | 15 | ||||
Asset retirement obligations | 137 | 136 | ||||
Deferred income taxes | 1,408 | 1,403 | ||||
Other long-term liabilities | 10 | 10 | ||||
Total liabilities | 9,731 | 9,190 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | 11,500 | 10,406 | ||||
Non-controlling interest | 0 | 0 | ||||
Total equity | 11,500 | 10,406 | ||||
Total liabilities and equity | 21,231 | 19,596 | ||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 16 | 31 | $ 36 | $ 24 | ||
Accounts receivable, net | 49 | 41 | ||||
Accounts Receivable, Related Parties, Current | 9 | 9 | ||||
Intercompany receivable | 0 | 0 | ||||
Inventories | 13 | 9 | ||||
Derivative instruments | 0 | 0 | ||||
Other current assets | 5 | 4 | ||||
Total current assets | 92 | 94 | ||||
Property and equipment: | ||||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 1,842 | 1,717 | ||||
Midstream assets | 822 | 416 | ||||
Other property, equipment and land | 94 | 76 | ||||
Accumulated depletion, depreciation, amortization and impairment | (325) | (276) | ||||
Net property and equipment | 2,433 | 1,933 | ||||
Funds held in escrow | 13 | |||||
Equity method investments | 187 | 0 | ||||
Derivative instruments | 0 | |||||
Investment in subsidiaries | 0 | |||||
Deferred tax asset | 150 | 97 | ||||
Investment in real estate, net | 110 | 104 | ||||
Other assets | 23 | 17 | ||||
Total assets | 3,008 | 2,245 | ||||
Current liabilities: | ||||||
Accounts payable-trade | 17 | 0 | ||||
Intercompany payable | 0 | 0 | ||||
Accrued capital expenditures | 68 | 0 | ||||
Other accrued liabilities | 33 | 69 | ||||
Revenues and royalties payable | 0 | 0 | ||||
Derivative instruments | 0 | |||||
Total current liabilities | 118 | 69 | ||||
Long-term debt | 214 | 411 | ||||
Derivative instruments | 0 | 0 | ||||
Asset retirement obligations | 5 | 0 | ||||
Deferred income taxes | 2 | 0 | ||||
Other long-term liabilities | 0 | 0 | ||||
Total liabilities | 339 | 480 | ||||
Commitments and contingencies | ||||||
Stockholders’ equity | 1,526 | 1,070 | ||||
Non-controlling interest | 1,143 | 695 | ||||
Total equity | 2,669 | 1,765 | ||||
Total liabilities and equity | $ 3,008 | $ 2,245 |
Guarantor Financial Statement_3
Guarantor Financial Statements - Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||||
Lease bonus | $ 2 | $ 1 | $ 3 | $ 1 | ||
Other operating income | 3 | 2 | 5 | 4 | ||
Revenue | 1,021 | 527 | 1,885 | 1,006 | ||
Costs and expenses: | ||||||
Lease operating expenses | 127 | 43 | 236 | 80 | ||
Production and ad valorem taxes | 64 | 33 | 119 | 60 | ||
Depreciation, depletion and amortization | 359 | 130 | 681 | 245 | ||
General and administrative expenses | 22 | 15 | 49 | 31 | ||
Asset retirement obligation accretion | 3 | 0 | 5 | 1 | ||
Other operating expense | 1 | 0 | 2 | 1 | ||
Total costs and expenses | 610 | 246 | 1,155 | 458 | ||
Income (loss) from operations | 411 | 281 | 730 | 548 | ||
Other income (expense): | ||||||
Interest expense, net | (49) | (16) | (95) | (30) | ||
Other income (expense), net | 2 | 84 | 3 | 87 | ||
Gain (loss) on derivative instruments, net | 94 | (59) | (174) | (91) | ||
Gain on revaluation of investment | 0 | 4 | 4 | 5 | ||
Total other income (expense), net | 47 | 13 | (262) | (29) | ||
Income (loss) before income taxes | 458 | 294 | 468 | 519 | ||
Provision for (benefit from) income taxes | 102 | (7) | 69 | 40 | ||
Net income | 356 | $ 43 | 301 | $ 178 | 399 | 479 |
Net income attributable to non-controlling interest | 7 | 82 | 40 | 97 | ||
Net income (loss) attributable to Diamondback Energy, Inc. | 349 | 219 | 359 | 382 | ||
Oil sales | ||||||
Revenues: | ||||||
Revenue | 947 | 461 | 1,690 | 880 | ||
Natural gas sales | ||||||
Revenues: | ||||||
Revenue | (9) | 12 | 20 | 26 | ||
Natural gas liquid sales | ||||||
Revenues: | ||||||
Revenue | 62 | 43 | 132 | 76 | ||
Royalty [Member] | ||||||
Revenues: | ||||||
Lease bonus | 1 | |||||
Revenue | 0 | 0 | 0 | 0 | ||
Midstream services | ||||||
Revenues: | ||||||
Revenue | 16 | 8 | 35 | 19 | ||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 17 | 18 | 34 | 29 | ||
Gathering and Transportation [Member] | ||||||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 17 | 7 | 29 | 11 | ||
Eliminations [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | 0 | 0 | |||
Other operating income | (1) | (1) | (2) | (1) | ||
Revenue | (92) | (39) | (167) | (60) | ||
Costs and expenses: | ||||||
Lease operating expenses | (29) | (13) | (55) | (20) | ||
Production and ad valorem taxes | 0 | 0 | 0 | 0 | ||
Depreciation, depletion and amortization | 8 | 5 | 14 | 8 | ||
General and administrative expenses | (4) | (1) | (5) | (1) | ||
Asset retirement obligation accretion | 0 | 0 | 0 | |||
Other operating expense | 0 | 0 | 0 | |||
Total costs and expenses | (53) | (13) | (94) | (20) | ||
Income (loss) from operations | (39) | (26) | (73) | (40) | ||
Other income (expense): | ||||||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Other income (expense), net | (2) | 0 | (3) | (1) | ||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 | ||
Gain on revaluation of investment | 0 | 0 | 0 | |||
Total other income (expense), net | (2) | 0 | (3) | (1) | ||
Income (loss) before income taxes | (41) | (26) | (76) | (41) | ||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 | ||
Net income | (41) | (26) | (76) | (41) | ||
Net income attributable to non-controlling interest | (53) | 53 | (61) | 68 | ||
Net income (loss) attributable to Diamondback Energy, Inc. | 12 | (79) | (15) | (109) | ||
Eliminations [Member] | Oil sales | ||||||
Revenues: | ||||||
Revenue | 66 | 66 | 118 | 122 | ||
Eliminations [Member] | Natural gas sales | ||||||
Revenues: | ||||||
Revenue | (1) | 3 | 3 | 5 | ||
Eliminations [Member] | Natural gas liquid sales | ||||||
Revenues: | ||||||
Revenue | 6 | 6 | 10 | 10 | ||
Eliminations [Member] | Royalty [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | |||||
Revenue | (70) | (74) | (131) | (137) | ||
Eliminations [Member] | Midstream services | ||||||
Revenues: | ||||||
Revenue | (92) | (39) | (165) | (59) | ||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | (25) | 0 | (41) | 0 | ||
Eliminations [Member] | Gathering and Transportation [Member] | ||||||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | (3) | (4) | (7) | (7) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | 0 | 0 | |||
Other operating income | 0 | 0 | 0 | 0 | ||
Revenue | 0 | 0 | 0 | 0 | ||
Costs and expenses: | ||||||
Lease operating expenses | 0 | 0 | 0 | 0 | ||
Production and ad valorem taxes | 0 | 0 | 0 | 0 | ||
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 | ||
General and administrative expenses | 9 | 7 | 24 | 14 | ||
Asset retirement obligation accretion | 0 | 0 | 0 | |||
Other operating expense | 0 | 0 | 0 | |||
Total costs and expenses | 9 | 7 | 24 | 14 | ||
Income (loss) from operations | (9) | (7) | (24) | (14) | ||
Other income (expense): | ||||||
Interest expense, net | (11) | (10) | (21) | (19) | ||
Other income (expense), net | 1 | 0 | 1 | 0 | ||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 | ||
Gain on revaluation of investment | 0 | 0 | 0 | |||
Total other income (expense), net | (10) | (10) | (20) | (19) | ||
Income (loss) before income taxes | (19) | (17) | (44) | (33) | ||
Provision for (benefit from) income taxes | 100 | 65 | 102 | 112 | ||
Net income | (119) | (82) | (146) | (145) | ||
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Diamondback Energy, Inc. | (119) | (82) | (146) | (145) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Oil sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Natural gas sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Natural gas liquid sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Royalty [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | |||||
Revenue | 0 | 0 | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Midstream services | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | Gathering and Transportation [Member] | ||||||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | 0 | 0 | |||
Other operating income | 0 | 0 | 0 | 0 | ||
Revenue | 929 | 441 | 1,711 | 845 | ||
Costs and expenses: | ||||||
Lease operating expenses | 156 | 56 | 291 | 100 | ||
Production and ad valorem taxes | 60 | 27 | 111 | 51 | ||
Depreciation, depletion and amortization | 324 | 106 | 614 | 200 | ||
General and administrative expenses | 12 | 7 | 22 | 13 | ||
Asset retirement obligation accretion | 3 | 5 | 1 | |||
Other operating expense | 0 | 1 | 0 | |||
Total costs and expenses | 575 | 206 | 1,080 | 382 | ||
Income (loss) from operations | 354 | 235 | 631 | 463 | ||
Other income (expense): | ||||||
Interest expense, net | (36) | (3) | (67) | (6) | ||
Other income (expense), net | 3 | 88 | 4 | 90 | ||
Gain (loss) on derivative instruments, net | 94 | (59) | (174) | (91) | ||
Gain on revaluation of investment | 0 | 0 | 0 | |||
Total other income (expense), net | 61 | 26 | (237) | (7) | ||
Income (loss) before income taxes | 415 | 261 | 394 | 456 | ||
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 | ||
Net income | 415 | 261 | 394 | 456 | ||
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 | ||
Net income (loss) attributable to Diamondback Energy, Inc. | 415 | 261 | 394 | 456 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Oil sales | ||||||
Revenues: | ||||||
Revenue | 881 | 395 | 1,572 | 758 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Natural gas sales | ||||||
Revenues: | ||||||
Revenue | (8) | 9 | 17 | 21 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Natural gas liquid sales | ||||||
Revenues: | ||||||
Revenue | 56 | 37 | 122 | 66 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Royalty [Member] | ||||||
Revenues: | ||||||
Lease bonus | 0 | |||||
Revenue | 0 | 0 | 0 | 0 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Midstream services | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 0 | (1) | 0 | (1) | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Gathering and Transportation [Member] | ||||||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 20 | 11 | 36 | 18 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Revenues: | ||||||
Lease bonus | 2 | 3 | 1 | |||
Other operating income | 4 | 3 | 7 | 5 | ||
Revenue | 184 | 125 | 341 | 221 | ||
Costs and expenses: | ||||||
Lease operating expenses | 0 | 0 | 0 | 0 | ||
Production and ad valorem taxes | 4 | 6 | 8 | 9 | ||
Depreciation, depletion and amortization | 27 | 19 | 53 | 37 | ||
General and administrative expenses | 5 | 2 | 8 | 5 | ||
Asset retirement obligation accretion | 0 | 0 | 0 | |||
Other operating expense | 1 | 1 | 1 | |||
Total costs and expenses | 79 | 46 | 145 | 82 | ||
Income (loss) from operations | 105 | 79 | 196 | 139 | ||
Other income (expense): | ||||||
Interest expense, net | (2) | (3) | (7) | (5) | ||
Other income (expense), net | 0 | (4) | 1 | (2) | ||
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 | ||
Gain on revaluation of investment | 4 | 4 | 5 | |||
Total other income (expense), net | (2) | (3) | (2) | (2) | ||
Income (loss) before income taxes | 103 | 76 | 194 | 137 | ||
Provision for (benefit from) income taxes | 2 | (72) | (33) | (72) | ||
Net income | 101 | 148 | 227 | 209 | ||
Net income attributable to non-controlling interest | 60 | 29 | 101 | 29 | ||
Net income (loss) attributable to Diamondback Energy, Inc. | 41 | 119 | 126 | 180 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Oil sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Natural gas sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Natural gas liquid sales | ||||||
Revenues: | ||||||
Revenue | 0 | 0 | 0 | 0 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Royalty [Member] | ||||||
Revenues: | ||||||
Lease bonus | 1 | |||||
Revenue | 70 | 74 | 131 | 137 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Midstream services | ||||||
Revenues: | ||||||
Revenue | 108 | 47 | 200 | 78 | ||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | 42 | 19 | 75 | 30 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Gathering and Transportation [Member] | ||||||
Costs and expenses: | ||||||
Cost of Goods and Services Sold | $ 0 | $ 0 | $ 0 | $ 0 |
Guarantor Financial Statement_4
Guarantor Financial Statements - Cash Flow Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ 1,043 | $ 764 | |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | (1,238) | (650) | |
Additions to midstream assets | (111) | (95) | |
Purchase of other property, equipment and land | (7) | (4) | |
Acquisition of leasehold interests | (127) | (101) | |
Acquisition of mineral interests | (125) | (253) | |
Proceeds from sale of assets | 36 | 4 | |
Funds held in escrow | (13) | 11 | |
Equity investments | (186) | 0 | |
Intercompany transfers | 0 | ||
Investment in real estate | $ (110) | (1) | (110) |
Net cash used in investing activities | (1,772) | (1,198) | |
Cash flows from financing activities: | |||
Proceeds from borrowing under credit facility | 925 | 569 | |
Repayment under credit facility | (973) | (388) | |
Proceeds from senior notes | 0 | 312 | |
Proceeds from joint venture | 43 | 0 | |
Debt issuance costs | (8) | (5) | |
Public offering costs | 41 | 2 | |
Contributions to subsidiaries | 0 | ||
Proceeds from Contributed Capital | 0 | ||
Proceeds from public offerings | 1,106 | 0 | |
Distributions from subsidiary | 0 | 0 | |
Dividends to stockholders | (51) | (12) | |
Proceeds from exercise of stock options | 6 | 0 | |
Repurchased shares for tax withholding | (13) | 0 | |
Repurchased as part of share buyback | (104) | 0 | |
Distributions to non-controlling interest | (50) | (38) | |
Intercompany transfers | 0 | 0 | |
Net cash provided by financing activities | 840 | 436 | |
Net increase (decrease) in cash and cash equivalents | 111 | 2 | |
Cash and cash equivalents at beginning of period | 112 | 215 | 112 |
Cash and cash equivalents at end of period | 326 | 114 | |
Payments of Distributions to Parent | 0 | ||
Proceeds from Partnership Contribution | 0 | ||
Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 0 | 0 | |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | 0 | 0 | |
Additions to midstream assets | 0 | 0 | |
Purchase of other property, equipment and land | 0 | 0 | |
Acquisition of leasehold interests | 0 | 0 | |
Acquisition of mineral interests | 0 | 0 | |
Proceeds from sale of assets | 0 | 0 | |
Funds held in escrow | 0 | 0 | |
Equity investments | 0 | ||
Intercompany transfers | 0 | ||
Investment in real estate | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities: | |||
Proceeds from borrowing under credit facility | 0 | 0 | |
Repayment under credit facility | 0 | 0 | |
Proceeds from senior notes | 0 | ||
Proceeds from joint venture | 0 | ||
Debt issuance costs | 0 | 0 | |
Public offering costs | 0 | 0 | |
Contributions to subsidiaries | 2 | ||
Proceeds from Contributed Capital | (2) | ||
Proceeds from public offerings | 0 | ||
Distributions from subsidiary | (65) | (69) | |
Dividends to stockholders | 0 | 0 | |
Proceeds from exercise of stock options | 0 | ||
Repurchased shares for tax withholding | 0 | ||
Repurchased as part of share buyback | 0 | ||
Distributions to non-controlling interest | 65 | 69 | |
Intercompany transfers | 0 | 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 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | |
Payments of Distributions to Parent | 727 | ||
Proceeds from Partnership Contribution | (727) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 4 | (21) | |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | 0 | 0 | |
Additions to midstream assets | 0 | 0 | |
Purchase of other property, equipment and land | 0 | 0 | |
Acquisition of leasehold interests | 0 | 0 | |
Acquisition of mineral interests | 0 | 0 | |
Proceeds from sale of assets | 0 | 0 | |
Funds held in escrow | 0 | 0 | |
Equity investments | 0 | ||
Intercompany transfers | (22) | ||
Investment in real estate | 0 | 0 | |
Net cash used in investing activities | 0 | (22) | |
Cash flows from financing activities: | |||
Proceeds from borrowing under credit facility | 0 | 0 | |
Repayment under credit facility | 0 | 0 | |
Proceeds from senior notes | 312 | ||
Proceeds from joint venture | 0 | ||
Debt issuance costs | 0 | (4) | |
Public offering costs | 0 | 0 | |
Contributions to subsidiaries | (1) | ||
Proceeds from Contributed Capital | 0 | ||
Proceeds from public offerings | 0 | ||
Distributions from subsidiary | 65 | 69 | |
Dividends to stockholders | (51) | (12) | |
Proceeds from exercise of stock options | 6 | ||
Repurchased shares for tax withholding | (13) | ||
Repurchased as part of share buyback | (104) | ||
Distributions to non-controlling interest | 0 | 0 | |
Intercompany transfers | 304 | (309) | |
Net cash provided by financing activities | 207 | 55 | |
Net increase (decrease) in cash and cash equivalents | 211 | 12 | |
Cash and cash equivalents at beginning of period | 54 | 84 | 54 |
Cash and cash equivalents at end of period | 295 | 66 | |
Payments of Distributions to Parent | 0 | ||
Proceeds from Partnership Contribution | 0 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 798 | 584 | |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | (1,238) | (650) | |
Additions to midstream assets | (8) | (10) | |
Purchase of other property, equipment and land | (7) | (4) | |
Acquisition of leasehold interests | (127) | (101) | |
Acquisition of mineral interests | 0 | 0 | |
Proceeds from sale of assets | 36 | 3 | |
Funds held in escrow | 0 | 11 | |
Equity investments | (149) | ||
Intercompany transfers | 22 | ||
Investment in real estate | (1) | (110) | |
Net cash used in investing activities | (1,494) | (839) | |
Cash flows from financing activities: | |||
Proceeds from borrowing under credit facility | 745 | 313 | |
Repayment under credit facility | (595) | (388) | |
Proceeds from senior notes | 0 | ||
Proceeds from joint venture | 43 | ||
Debt issuance costs | (8) | 0 | |
Public offering costs | (3) | 0 | |
Contributions to subsidiaries | 0 | ||
Proceeds from Contributed Capital | 0 | ||
Proceeds from public offerings | 0 | ||
Distributions from subsidiary | 0 | 0 | |
Dividends to stockholders | 0 | 0 | |
Proceeds from exercise of stock options | 0 | ||
Repurchased shares for tax withholding | 0 | ||
Repurchased as part of share buyback | 0 | ||
Distributions to non-controlling interest | 0 | 0 | |
Intercompany transfers | (304) | 308 | |
Net cash provided by financing activities | 611 | 233 | |
Net increase (decrease) in cash and cash equivalents | (85) | (22) | |
Cash and cash equivalents at beginning of period | 34 | 100 | 34 |
Cash and cash equivalents at end of period | 15 | 12 | |
Payments of Distributions to Parent | 0 | ||
Proceeds from Partnership Contribution | 727 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 241 | 201 | |
Cash flows from investing activities: | |||
Additions to oil and natural gas properties | 0 | 0 | |
Additions to midstream assets | (103) | (85) | |
Purchase of other property, equipment and land | 0 | 0 | |
Acquisition of leasehold interests | 0 | 0 | |
Acquisition of mineral interests | (125) | (253) | |
Proceeds from sale of assets | 0 | 1 | |
Funds held in escrow | (13) | 0 | |
Equity investments | (37) | ||
Intercompany transfers | 0 | ||
Investment in real estate | 0 | 0 | |
Net cash used in investing activities | (278) | (337) | |
Cash flows from financing activities: | |||
Proceeds from borrowing under credit facility | 180 | 256 | |
Repayment under credit facility | (378) | 0 | |
Proceeds from senior notes | 0 | ||
Proceeds from joint venture | 0 | ||
Debt issuance costs | 0 | (1) | |
Public offering costs | 44 | 2 | |
Contributions to subsidiaries | (1) | ||
Proceeds from Contributed Capital | 2 | ||
Proceeds from public offerings | 1,106 | ||
Distributions from subsidiary | 0 | 0 | |
Dividends to stockholders | 0 | 0 | |
Proceeds from exercise of stock options | 0 | ||
Repurchased shares for tax withholding | 0 | ||
Repurchased as part of share buyback | 0 | ||
Distributions to non-controlling interest | (115) | (107) | |
Intercompany transfers | 0 | 1 | |
Net cash provided by financing activities | 22 | 148 | |
Net increase (decrease) in cash and cash equivalents | (15) | 12 | |
Cash and cash equivalents at beginning of period | $ 24 | 31 | 24 |
Cash and cash equivalents at end of period | 16 | $ 36 | |
Payments of Distributions to Parent | (727) | ||
Proceeds from Partnership Contribution | $ 0 |