Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
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 Ave. | |
Entity Address, Address Line Two | Suite 100 | |
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 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 | |
Entity Common Stock, Shares Outstanding | 173,441,061 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001539838 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 43 | $ 654 |
Restricted cash | 16 | 18 |
Accounts receivable: | ||
Joint interest and other, net | 76 | 72 |
Oil and natural gas sales, net | 961 | 598 |
Inventories | 65 | 62 |
Derivative instruments | 17 | 13 |
Income tax receivable | 0 | 1 |
Prepaid expenses and other current assets | 23 | 28 |
Total current assets | 1,201 | 1,446 |
Property and equipment: | ||
Oil and natural gas properties, full cost method of accounting ($8,097 million and $8,496 million excluded from amortization at June 30, 2022 and December 31, 2021, respectively) | 34,200 | 32,914 |
Midstream assets | 1,139 | 1,076 |
Other property, equipment and land | 190 | 174 |
Accumulated depletion, depreciation, amortization and impairment | (14,160) | (13,545) |
Property and equipment, net | 21,369 | 20,619 |
Funds held in escrow | 0 | 12 |
Equity method investments | 660 | 613 |
Derivative instruments | 33 | 4 |
Deferred income taxes, net | 33 | 40 |
Investment in real estate, net | 87 | 88 |
Other assets | 65 | 76 |
Total assets | 23,448 | 22,898 |
Current liabilities: | ||
Accounts payable - trade | 62 | 36 |
Accrued capital expenditures | 323 | 295 |
Current maturities of long-term debt | 55 | 45 |
Other accrued liabilities | 420 | 419 |
Revenues and royalties payable | 615 | 452 |
Derivative instruments | 162 | 174 |
Deferred income taxes | 3 | 17 |
Total current liabilities | 1,640 | 1,438 |
Long-term debt | 5,401 | 6,642 |
Derivative instruments | 123 | 29 |
Asset retirement obligations | 260 | 166 |
Deferred income taxes | 1,600 | 1,338 |
Other long-term liabilities | 34 | 40 |
Total liabilities | 9,058 | 9,653 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 400,000,000 shares authorized; 175,201,453 and 177,551,347 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 2 | 2 |
Additional paid-in capital | 13,772 | 14,084 |
Retained earnings (accumulated deficit) | (458) | (1,998) |
Total Diamondback Energy, Inc. stockholders’ equity | 13,316 | 12,088 |
Non-controlling interest | 1,074 | 1,157 |
Total equity | 14,390 | 13,245 |
Total liabilities and equity | $ 23,448 | $ 22,898 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 8,097 | $ 8,496 |
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 400,000,000 | 400,000,000 |
Shares issued (in shares) | 175,201,453 | 177,551,347 |
Shares outstanding (in shares) | 175,201,453 | 177,551,347 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Revenue | $ 2,752 | $ 1,667 | $ 5,141 | $ 2,839 |
Other operating income | 2 | 2 | 4 | 3 |
Total revenues | 2,768 | 1,681 | 5,176 | 2,865 |
Costs and expenses: | ||||
Lease operating expenses | 159 | 157 | 308 | 259 |
Production and ad valorem taxes | 178 | 105 | 339 | 180 |
Depreciation, depletion, amortization and accretion | 330 | 341 | 643 | 614 |
General and administrative expenses | 39 | 36 | 75 | 61 |
Merger and integration expenses | 0 | 2 | 0 | 77 |
Other operating expenses | 0 | 6 | 8 | 10 |
Total costs and expenses | 790 | 726 | 1,538 | 1,339 |
Income (loss) from operations | 1,978 | 955 | 3,638 | 1,526 |
Other income (expense): | ||||
Interest expense, net | (39) | (57) | (79) | (113) |
Other income (expense), net | 1 | (7) | 2 | (6) |
Gain (loss) on derivative instruments, net | (101) | (497) | (653) | (661) |
Gain (loss) on sale of equity method investments | 0 | 23 | 0 | 23 |
Gain (loss) on extinguishment of debt | (4) | 0 | (58) | (61) |
Income (loss) from equity investments | 28 | 5 | 37 | 2 |
Total other income (expense), net | (115) | (533) | (751) | (816) |
Income (loss) before income taxes | 1,863 | 422 | 2,887 | 710 |
Provision for (benefit from) income taxes | 402 | 94 | 623 | 159 |
Net income (loss) | 1,461 | 328 | 2,264 | 551 |
Net income (loss) attributable to non-controlling interest | 45 | 17 | 69 | 20 |
Net income (loss) attributable to Diamondback Energy, Inc. | $ 1,416 | $ 311 | $ 2,195 | $ 531 |
Earnings (loss) per common share: | ||||
Basic (in USD per share) | $ 7.95 | $ 1.70 | $ 12.30 | $ 3.05 |
Diluted (in USD per share) | $ 7.93 | $ 1.70 | $ 12.28 | $ 3.04 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 176,570 | 181,009 | 177,064 | 172,636 |
Diluted (in shares) | 176,876 | 181,199 | 177,380 | 172,806 |
Dividends declared per share (in USD per share) | $ 3.05 | $ 0.45 | $ 6.10 | $ 0.85 |
Oil sales | ||||
Revenues: | ||||
Revenue | $ 2,189 | $ 1,395 | $ 4,135 | $ 2,339 |
Natural gas sales | ||||
Revenues: | ||||
Revenue | 264 | 107 | 418 | 211 |
Natural gas liquid sales | ||||
Revenues: | ||||
Revenue | 299 | 165 | 588 | 289 |
Midstream services | ||||
Revenues: | ||||
Midstream services | 14 | 12 | 31 | 23 |
Costs and expenses: | ||||
Cost of goods and services sold | 23 | 23 | 45 | 51 |
Gathering and transportation | ||||
Costs and expenses: | ||||
Cost of goods and services sold | $ 61 | $ 56 | $ 120 | $ 87 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 158,088,000 | ||||
Balance at beginning of period at Dec. 31, 2020 | $ 9,804 | $ 2 | $ 12,656 | $ (3,864) | $ 1,010 |
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 3 | 3 | |||
Distribution equivalent rights payments | (1) | (1) | |||
Common units issued for acquisitions (in Shares) | 22,795,000 | ||||
Common units issued for acquisitions | 1,727 | 1,727 | |||
Stock-based compensation | 11 | 11 | |||
Cash paid for tax withholding on vested equity awards | (6) | (6) | |||
Repurchased units under buyback programs | (24) | (24) | |||
Distributions to non-controlling interest | (17) | (17) | |||
Dividend paid | (68) | (68) | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 101,000 | ||||
Change in ownership of consolidated subsidiaries, net | (4) | 4 | |||
Net income (loss) | 223 | 220 | 3 | ||
Balance at end of period (in shares) at Mar. 31, 2021 | 180,984,000 | ||||
Balance at end of period at Mar. 31, 2021 | 11,652 | $ 2 | 14,384 | (3,713) | 979 |
Balance at beginning of period (in shares) at Dec. 31, 2020 | 158,088,000 | ||||
Balance at beginning of period at Dec. 31, 2020 | 9,804 | $ 2 | 12,656 | (3,864) | 1,010 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 551 | ||||
Balance at end of period (in shares) at Jun. 30, 2021 | 181,049,000 | ||||
Balance at end of period at Jun. 30, 2021 | 11,890 | $ 2 | 14,399 | (3,475) | 964 |
Balance at beginning of period (in shares) at Mar. 31, 2021 | 180,984,000 | ||||
Balance at beginning of period at Mar. 31, 2021 | 11,652 | $ 2 | 14,384 | (3,713) | 979 |
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 3 | 3 | |||
Distribution equivalent rights payments | (2) | (1) | (1) | ||
Stock-based compensation | 15 | 15 | |||
Cash paid for tax withholding on vested equity awards | (2) | (2) | |||
Repurchased shares under buyback program | (12) | (12) | |||
Distributions to non-controlling interest | (24) | (24) | |||
Dividend paid | (72) | (72) | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 65,000 | ||||
Exercise of stock options and issuance of restricted stock units and awards | 3 | 3 | |||
Change in ownership of consolidated subsidiaries, net | 1 | (3) | 4 | ||
Net income (loss) | 328 | 311 | 17 | ||
Balance at end of period (in shares) at Jun. 30, 2021 | 181,049,000 | ||||
Balance at end of period at Jun. 30, 2021 | $ 11,890 | $ 2 | 14,399 | (3,475) | 964 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 177,551,347 | 177,551,000 | |||
Balance at beginning of period at Dec. 31, 2021 | $ 13,245 | $ 2 | 14,084 | (1,998) | 1,157 |
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 3 | 3 | |||
Distribution equivalent rights payments | (1) | (1) | |||
Stock-based compensation | 16 | 16 | |||
Cash paid for tax withholding on vested equity awards | (15) | (15) | |||
Repurchased shares for share buyback program (in Shares) | (58,000) | ||||
Repurchased shares under buyback program | (7) | (7) | |||
Repurchased units under buyback programs | (42) | (42) | |||
Distributions to non-controlling interest | (47) | (47) | |||
Dividend paid | (107) | (107) | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 58,000 | ||||
Exercise of stock options and issuance of restricted stock units and awards | 1 | 1 | |||
Change in ownership of consolidated subsidiaries, net | 3 | (12) | 15 | ||
Net income (loss) | 803 | 779 | 24 | ||
Balance at end of period (in shares) at Mar. 31, 2022 | 177,551,000 | ||||
Balance at end of period at Mar. 31, 2022 | $ 13,852 | $ 2 | 14,067 | (1,326) | 1,109 |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 177,551,347 | 177,551,000 | |||
Balance at beginning of period at Dec. 31, 2021 | $ 13,245 | $ 2 | 14,084 | (1,998) | 1,157 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | $ 2,264 | ||||
Balance at end of period (in shares) at Jun. 30, 2022 | 175,201,453 | 175,201,000 | |||
Balance at end of period at Jun. 30, 2022 | $ 14,390 | $ 2 | 13,772 | (458) | 1,074 |
Balance at beginning of period (in shares) at Mar. 31, 2022 | 177,551,000 | ||||
Balance at beginning of period at Mar. 31, 2022 | 13,852 | $ 2 | 14,067 | (1,326) | 1,109 |
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 3 | 3 | |||
Distribution equivalent rights payments | (7) | (7) | |||
Stock-based compensation | 17 | 17 | |||
Cash paid for tax withholding on vested equity awards | (3) | (3) | |||
Repurchased shares for share buyback program (in Shares) | (2,369,000) | ||||
Repurchased shares under buyback program | (303) | (303) | |||
Repurchased units under buyback programs | (29) | (29) | |||
Distributions to non-controlling interest | (63) | (63) | |||
Dividend paid | (541) | (541) | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 19,000 | ||||
Change in ownership of consolidated subsidiaries, net | 3 | (9) | 12 | ||
Net income (loss) | $ 1,461 | 1,416 | 45 | ||
Balance at end of period (in shares) at Jun. 30, 2022 | 175,201,453 | 175,201,000 | |||
Balance at end of period at Jun. 30, 2022 | $ 14,390 | $ 2 | $ 13,772 | $ (458) | $ 1,074 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 2,264 | $ 551 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Provision for (benefit from) deferred income taxes | 273 | 155 | |
Depreciation, depletion, amortization and accretion | 643 | 614 | |
(Gain) loss on extinguishment of debt | 58 | 61 | |
(Gain) loss on derivative instruments, net | 653 | 661 | |
Cash received (paid) on settlement of derivative instruments | (720) | (484) | |
Income (loss) from equity investments | (37) | (2) | |
Equity-based compensation expense | 28 | 23 | |
(Gain) loss on sale of equity method investments | 0 | (23) | |
Other | 36 | 15 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (380) | (172) | |
Income tax receivable | 1 | 99 | |
Prepaid expenses and other | 15 | 18 | |
Accounts payable and accrued liabilities | (21) | (26) | |
Income tax payable | (14) | 0 | |
Revenues and royalties payable | 163 | 100 | |
Other | (3) | (12) | |
Net cash provided by (used in) operating activities | 2,959 | 1,578 | |
Cash flows from investing activities: | |||
Drilling, completions and infrastructure additions to oil and natural gas properties | (863) | (645) | |
Additions to midstream assets | (42) | (17) | |
Property acquisitions | (381) | (421) | |
Proceeds from sale of assets | 72 | 100 | |
Funds held in escrow | 12 | 51 | |
Other | (30) | 34 | |
Net cash provided by (used in) investing activities | (1,232) | (898) | |
Cash flows from financing activities: | |||
Proceeds from borrowings under credit facilities | 1,579 | 661 | |
Repayments under credit facilities | (1,563) | (780) | |
Proceeds from senior notes | 750 | 2,200 | |
Repayment of senior notes | (1,865) | (2,107) | |
Proceeds from (repayments to) joint venture | (17) | (10) | |
Premium on extinguishment of debt | (49) | (166) | |
Repurchased shares under buyback program | (310) | 0 | |
Repurchased units under buyback program | (71) | (36) | |
Dividends to stockholders | (648) | (140) | |
Distributions to non-controlling interest | (110) | (41) | |
Financing portion of net cash received (paid) for derivative instruments | 0 | 59 | |
Other | (36) | (32) | |
Net cash provided by (used in) financing activities | (2,340) | (392) | |
Net increase (decrease) in cash and cash equivalents | (613) | 288 | |
Cash, cash equivalents and restricted cash at beginning of period | 672 | 108 | |
Cash, cash equivalents and restricted cash at end of period | [1] | $ 59 | $ 396 |
[1]See Note 2—Summary of Significant Accounting Policies . |
SUPPLEMENTAL INFORMATION TO STA
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information Disclosure [Abstract] | |
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS | SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2022 2021 (In millions) Supplemental disclosure of cash flow information: Cash paid (received) for income taxes $ 362 $ (100) Supplemental disclosure of non-cash transactions: Accrued capital expenditures included in accounts payable and accrued expenses $ 340 $ 296 Common stock issued for business combinations $ — $ 1,727 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2022 | |
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., together with its subsidiaries (collectively referred to as “Diamondback” or the “Company” unless the context otherwise requires), is an independent oil and natural 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. As of June 30, 2022, the wholly owned subsidiaries of Diamondback include Diamondback E&P LLC (“Diamondback E&P”), 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 QEP Resources, Inc. (“QEP”), a Delaware corporation. Rattler Merger On May 15, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Rattler, Rattler Midstream GP LLC, the general partner of the Partnership (the “General Partner”), and Bacchus Merger Sub Company, a wholly owned subsidiary of the Company (“Merger Sub”). The Merger Agreement provides that, among other things and subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger, (i) Merger Sub will be merged with and into Rattler (the “Rattler Merger”), with Rattler surviving and continuing as the surviving entity in the merger and (ii) each issued and outstanding publicly held common unit representing a limited partner interest in Rattler (other than any common units owned by the Company and its subsidiaries) will be converted into the right to receive 0.113 of a share of common stock, par value $0.01 per share, of the Company. The Merger Agreement also specifies the treatment of outstanding Rattler equity awards in connection with the merger. The Company’s board of directors and the board of directors of the General Partner (acting upon the recommendation of its conflicts committee) unanimously approved the merger. The Company and Rattler expect that the Rattler Merger will close, subject to certain conditions, reasonably promptly following the distribution payment date for the second quarter 2022 distribution to Rattler’s unitholders reported by Rattler. Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Diamondback’s publicly traded subsidiaries Viper Energy Partners LP (“Viper”) and Rattler Midstream LP (“Rattler”) are consolidated in the Company’s financial statements. As of June 30, 2022, the Company owned approximately 55% of Viper’s total units outstanding. The Company’s wholly owned subsidiary, Viper Energy Partners GP LLC, is the general partner of Viper. As of June 30, 2022, the Company owned approximately 74% of Rattler’s total units outstanding. The Company’s wholly owned subsidiary, Rattler Midstream GP LLC, is the general partner of Rattler. The results of operations attributable to the non-controlling interest in Viper and Rattler are presented within equity and net income and are shown separately from the equity and net income attributable to the Company. These condensed consolidated 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 SEC 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, 2021, which contains a summary of the Company’s significant accounting policies and other disclosures. Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had an immaterial effect on the previously reported total assets, total liabilities, stockholders’ equity, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2022 | |
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 as of the date of the consolidated financial statements. Actual results could differ from those estimates. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry, given the challenges resulting from volatility in oil and natural gas prices and the effects of the COVID-19 pandemic. Such circumstances generally increase the uncertainty in the Company’s accounting estimates, particularly those involving financial forecasts. 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, the fair value determination of acquired assets and liabilities assumed, fair value estimates of derivative instruments and estimates of income taxes. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported at the end of the period in the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 to the line items within the condensed consolidated balance sheets: Six Months Ended June 30, 2022 2021 (In millions) Cash and cash equivalents $ 43 $ 344 Restricted cash 16 18 Restricted cash included in funds held in escrow — 34 Total cash, cash equivalents and restricted cash $ 59 $ 396 Recent Accounting Pronouncements Recently Adopted Pronouncements There are no recently adopted pronouncements. Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This update requires the acquirer in a business combination to record contract asset and liabilities following Topic 606 – “Revenue from Contracts with Customers” at acquisition as if it had originated the contract, rather than at fair value. This update is effective for public business entities beginning after December 15, 2022 with early adoption permitted. The Company continues to evaluate the provisions of this update, but does not believe the adoption will have a material impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, the effects of adoption are not expected to be material or are clarifications of ASUs previously disclosed. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 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. The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 1,610 $ 577 $ 2 $ 2,189 $ 876 $ 408 $ 111 $ 1,395 Natural gas sales 168 95 1 264 75 27 5 107 Natural gas liquid sales 207 91 1 299 102 52 11 165 Total $ 1,985 $ 763 $ 4 $ 2,752 $ 1,053 $ 487 $ 127 $ 1,667 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 3,008 $ 1,122 $ 5 $ 4,135 $ 1,445 $ 766 $ 128 $ 2,339 Natural gas sales 266 151 1 418 116 88 7 211 Natural gas liquid sales 398 188 2 588 177 99 13 289 Total $ 3,672 $ 1,461 $ 8 $ 5,141 $ 1,738 $ 953 $ 148 $ 2,839 |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES 2022 Activity On January 18, 2022, the Company acquired, from an unrelated third-party seller, approximately 6,200 net acres in the Delaware Basin for $232 million in cash, including customary post-closing adjustments. The acquisition was funded through cash on hand. 2021 Activity Guidon Operating LLC On February 26, 2021, the Company completed its acquisition of all leasehold interests and related assets of Guidon Operating LLC (the “Guidon Acquisition”) which include approximately 32,500 net acres in the Northern Midland Basin in exchange for 10.68 million shares of the Company’s common stock and $375 million of cash. The cash portion of this transaction was funded through a combination of cash on hand and borrowings under the Company’s credit facility. As a result of the Guidon Acquisition, the Company added approximately 210 gross producing wells. The following table presents the acquisition consideration paid in the Guidon Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 10,676 Closing price per share of Diamondback common stock on the closing date $ 69.28 Fair value of Diamondback common stock issued $ 740 Cash consideration 375 Total consideration (including fair value of Diamondback common stock issued) $ 1,115 Purchase Price Allocation The Guidon Acquisition has been accounted for as a business combination using the acquisition method. The following table represents the allocation of the total purchase price paid in the Guidon Acquisition to the identifiable assets acquired based on the fair values at the acquisition date. The purchase price allocation was complete as of the first quarter of 2022. The following table sets forth the Company’s purchase price allocation (in millions): Total consideration $ 1,115 Fair value of liabilities assumed: Asset retirement obligations 9 Fair value of assets acquired: Oil and gas properties 1,110 Midstream assets 14 Amount attributable to assets acquired 1,124 Net assets acquired and liabilities assumed $ 1,115 Oil and natural gas properties were valued using an income approach utilizing the discounted cash flow method, which takes into account production forecasts, projected commodity prices and pricing differentials, and estimates of future capital and operating costs which were then discounted utilizing an estimated weighted-average cost of capital for industry market participants. The fair value of acquired midstream assets was based on the cost approach, which utilized asset listings and cost records with consideration for the reported age, condition, utilization and economic support of the assets. The majority of the measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and are therefore considered Level 3 inputs. With the completion of the Guidon Acquisition, the Company acquired proved properties of $537 million and unproved properties of $573 million. The results of operations attributable to the Guidon Acquisition since the acquisition date have been included in the condensed consolidated statements of operations and include $103 million and $133 million of total revenue and $49 million and $65 million of net income for the three and six months ended June 30, 2021, respectively. QEP Resources, Inc. On March 17, 2021, the Company completed its acquisition of QEP in an all-stock transaction (the “QEP Merger”). The addition of QEP’s assets increased the Company’s net acreage in the Midland Basin by approximately 49,000 net acres. Under the terms of the QEP Merger, each eligible share of QEP common stock issued and outstanding immediately prior to the effective time converted into the right to receive 0.050 of a share of Diamondback common stock, with cash being paid in lieu of any fractional shares (the “merger consideration”). The following table presents the acquisition consideration paid to QEP stockholders in the QEP Merger (in millions, except per share data, shares in thousands): Consideration: Eligible shares of QEP common stock converted into shares of Diamondback common stock 238,153 Shares of QEP equity awards included in precombination consideration 4,221 Total shares of QEP common stock eligible for merger consideration 242,374 Exchange ratio 0.050 Shares of Diamondback common stock issued as merger consideration 12,119 Closing price per share of Diamondback common stock $ 81.41 Total consideration (fair value of the Company's common stock issued) $ 987 Purchase Price Allocation The QEP 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 for the acquisition of QEP to the identifiable assets acquired and the liabilities assumed based on the fair values at the acquisition date. The purchase price allocation was complete as of the first quarter of 2022. The following table sets forth the Company’s purchase price allocation (in millions): Total consideration $ 987 Fair value of liabilities assumed: Accounts payable - trade $ 26 Accrued capital expenditures 38 Other accrued liabilities 107 Revenues and royalties payable 67 Derivative instruments 242 Long-term debt 1,710 Asset retirement obligations 54 Other long-term liabilities 63 Amount attributable to liabilities assumed $ 2,307 Fair value of assets acquired: Cash, cash equivalents and restricted cash $ 22 Accounts receivable - joint interest and other, net 87 Accounts receivable - oil and natural gas sales, net 44 Inventories 18 Income tax receivable 33 Prepaid expenses and other current assets 7 Oil and natural gas properties 2,922 Other property, equipment and land 16 Deferred income taxes 39 Other assets 106 Amount attributable to assets acquired 3,294 Net assets acquired and liabilities assumed $ 987 The purchase price allocation above is based on the fair values of the assets and liabilities of QEP as of the closing date of the QEP Merger. The majority of the measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and are therefore considered Level 3 inputs. The fair value of acquired property and equipment, including midstream assets classified in oil and natural gas properties, is based on the cost approach, which utilized asset listings and cost records with consideration for the reported age, condition, utilization and economic support of the assets. Oil and natural gas properties were valued using an income approach utilizing the discounted cash flow method, which takes into account production forecasts, projected commodity prices and pricing differentials, and estimates of future capital and operating costs which were then discounted utilizing an estimated weighted-average cost of capital for industry market participants. The fair value of QEP’s outstanding senior unsecured notes was based on unadjusted quoted prices in an active market, which are considered Level 1 inputs. The value of derivative instruments was based on observable inputs including forward commodity-price curves which are considered Level 2 inputs. Deferred income taxes represent the tax effects of differences in the tax basis and merger-date fair values of assets acquired and liabilities assumed. With the completion of the QEP Merger, the Company acquired proved properties of $2.0 billion and unproved properties of $733 million, primarily in the Midland Basin and the Williston Basin. In October 2021, the Company completed the divestiture of the Williston Basin properties, acquired as part of the QEP Merger and consisting of approximately 95,000 net acres, to Oasis Petroleum Inc. for net cash proceeds of approximately $586 million, after customary closing adjustments. See “—Williston Basin Divestiture” below. The results of operations attributable to the QEP Merger since the acquisition date have been included in the condensed consolidated statements of operations and include $359 million and $413 million of total revenue and $116 million and $139 million of net income for the three and six months ended June 30, 2021. Pro Forma Financial Information The following unaudited summary pro forma financial information for the three and six months ended June 30, 2021 has been prepared to give effect to the QEP Merger and the Guidon Acquisition as if they had occurred on January 1, 2020. The unaudited pro forma financial information does not purport to be indicative of what the combined company’s results of operations would have been if these transactions had occurred on the dates indicated, nor is it indicative of the future financial position or results of operations of the combined company. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for QEP’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 adjustments to depreciation, depletion and amortization based on the full cost method of accounting and the purchase price allocated to property, plant, and equipment as well as adjustments to interest expense and the provision for (benefit from) income taxes. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by the Company for the QEP Merger and the Guidon Acquisition of approximately $2 million and $77 million for the three and six months ended June 30, 2021, respectively, and acquisition-related costs incurred by QEP of $31 million through the closing date of the QEP Merger. These acquisition-related costs primarily consist of one-time severance costs and the accelerated or change-in-control vesting of certain QEP share-based awards for former QEP employees based on the terms of the merger agreement relating to the QEP Merger and other bank, legal and advisory fees. The pro forma results of operations do not include any cost savings or other synergies that may result from the QEP Merger and the Guidon Acquisition or any estimated costs that have been or will be incurred by the Company to integrate the acquired 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. Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In millions, except per share amounts) Revenues $ 1,656 $ 3,137 Income (loss) from operations $ 1,022 $ 1,706 Net income (loss) $ 388 $ 534 Basic earnings (loss) per common share $ 2.14 $ 2.95 Diluted earnings (loss) per common share $ 2.13 $ 2.94 Williston Basin Divestiture On October 21, 2021, the Company completed the divestiture of its Williston Basin oil and natural gas assets, consisting of approximately 95,000 net acres, to Oasis Petroleum Inc., for net cash proceeds of approximately $586 million, after customary closing adjustments. This transaction did not result in a significant alteration of the relationship between the Company’s capitalized costs and proved reserves and, accordingly, the Company recorded the proceeds as a reduction of its full cost pool with no gain or loss recognized on the sale. The Company used its net proceeds from this transaction toward debt reduction. 2021 Drop Down Transaction On December 1, 2021, Diamondback completed the sale of certain water midstream assets to Rattler in exchange for cash proceeds of approximately $164 million, including post-closing adjustments, in a drop down transaction (the “Drop Down”). The midstream assets consist primarily of produced water gathering and disposal systems, produced water recycling facilities, and sourced water gathering and storage assets acquired by the Company through the Guidon Acquisition and the QEP Merger with a carrying value of approximately $164 million. The Company and Rattler have also mutually agreed to amend their commercial agreements covering produced water gathering and disposal and sourced water gathering services to add certain Diamondback leasehold acreage to Rattler’s dedication. The Drop Down transaction was accounted for as a transaction between entities under common control. Viper’s Swallowtail Acquisition On October 1, 2021, Viper acquired certain mineral and royalty interests from the Swallowtail entities pursuant to a definitive purchase and sale agreement for 15.25 million of Viper’s common units and approximately $225 million in cash (the “Swallowtail Acquisition”). The mineral and royalty interests acquired in the Swallowtail Acquisition represent approximately 2,313 net royalty acres primarily in the Northern Midland Basin, of which approximately 62% are operated by Diamondback as of December 31, 2021. The Swallowtail Acquisition had an effective date of August 1, 2021. The cash portion of this transaction was funded through a combination of Viper’s cash on hand and approximately $190 million of borrowings under Viper LLC’s revolving credit facility. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes the following as of the dates indicated: June 30, December 31, 2022 2021 (In millions) Oil and natural gas properties: Subject to depletion $ 26,103 $ 24,418 Not subject to depletion 8,097 8,496 Gross oil and natural gas properties 34,200 32,914 Accumulated depletion (6,019) (5,434) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 20,227 19,526 Midstream assets 1,139 1,076 Other property, equipment and land 190 174 Accumulated depreciation, amortization, accretion and impairment (187) (157) Total property and equipment, net $ 21,369 $ 20,619 Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter which determines a limit, or ceiling, on the book value of proved oil and natural gas properties. No impairment expense was recorded for the three and six months ended June 30, 2022 or 2021 based on the results of the respective quarterly ceiling tests. In connection with the QEP Merger and the Guidon Acquisition, the Company recorded the oil and natural gas properties acquired at fair value, based on forward strip oil and natural gas pricing existing at the closing date of the respective transactions, in accordance with ASC 820 Fair Value Measurement. Pursuant to SEC guidance, the Company determined that the fair value of the properties acquired in the QEP Merger and the Guidon Acquisition clearly exceeded the related full cost ceiling limitation beyond a reasonable doubt. As such, the Company requested and received a waiver from the SEC to exclude the properties acquired from the ceiling test calculation for the quarter ended March 31, 2021. As a result, no impairment expense related to the QEP Merger and the Guidon Acquisition was recorded for the three months ended March 31, 2021. Had the Company not received a waiver from the SEC, an impairment charge of approximately $1.1 billion would have been recorded for such period. Management affirmed there has not been a decline in the fair value of these acquired assets. The properties acquired in the QEP Merger and the Guidon Acquisition had total unamortized costs at March 31, 2021 of $3.0 billion and $1.1 billion, respectively. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. If the future trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. It is possible that circumstances requiring additional impairment testing will occur in future interim periods, which could result in potentially material impairment charges being recorded. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table describes the changes to the Company’s asset retirement obligations liability for the following periods: Six Months Ended June 30, 2022 2021 (In millions) Asset retirement obligations, beginning of period $ 171 $ 109 Additional liabilities incurred 26 6 Liabilities acquired 3 63 Liabilities settled and divested (8) (4) Accretion expense 6 5 Revisions in estimated liabilities 75 13 Asset retirement obligations, end of period 273 192 Less current portion (1) 13 7 Asset retirement obligations - long-term $ 260 $ 185 (1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2022 2021 (In millions) 5.375% Senior Notes due 2022 $ 25 $ 25 7.320% Medium-term Notes, Series A, due 2022 20 20 5.250% Senior Notes due 2023 10 10 2.875% Senior Notes due 2024 — 1,000 4.750% Senior Notes due 2025 — 500 3.250% Senior Notes due 2026 780 800 5.625% Senior Notes due 2026 14 14 7.125% Medium-term Notes, Series B, due 2028 73 100 3.500% Senior Notes due 2029 1,021 1,200 3.125% Senior Notes due 2031 789 900 4.400% Senior Notes due 2051 650 650 4.250% Senior Notes due 2052 750 — DrillCo Agreement (1) 41 58 Unamortized debt issuance costs (32) (31) Unamortized discount costs (22) (28) Unamortized premium costs 5 8 Unamortized basis adjustment of dedesignated interest rate swap agreements (2) (113) (18) Revolving credit facility 33 — Viper revolving credit facility 250 304 Viper 5.375% Senior Notes due 2027 430 480 Rattler revolving credit facility 232 195 Rattler 5.625% Senior Notes due 2025 500 500 Total debt, net 5,456 6,687 Less: current maturities of long-term debt (55) (45) Total long-term debt $ 5,401 $ 6,642 (1) Represents amounts due under a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. to fund oil and natural gas development. (2) Represents the unamortized basis adjustment related to two receive-fixed, pay variable interest rate swap agreements which were previously designated as fair value hedges of the Company’s $1.2 billion 3.500% fixed rate senior notes due 2029. These swaps were dedesignated in the second quarter of 2022 as discussed further in Note 11— Derivatives . References in this section to the Company shall mean Diamondback Energy, Inc. and Diamondback E&P, collectively, unless otherwise specified. Credit Agreement As of June 30, 2022, Diamondback E&P, as borrower, and Diamondback Energy, Inc., as parent guarantor, have a credit agreement, as amended, which provides for a maximum credit amount of $1.6 billion. As of June 30, 2022, the Company had $33 million in outstanding borrowings under the credit agreement and $3 million in outstanding letters of credit, which reduce available borrowings under the credit agreement on a dollar for dollar basis. During both the three and six months ended June 30, 2022 the weighted average interest rate on borrowings under the credit agreement was 2.69%. During the three and six months ended June 30, 2021, the weighted average interest rates on borrowings under the credit agreement were 1.68% and 1.67%, respectively. On June 2, 2022, the Company and Diamondback E&P entered into a thirteenth amendment to the Second Amended and Restated Credit Agreement, dated as of November 1, 2013, with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto. This amendment, among other things, (i) extended the maturity date to June 2, 2027, which may be further extended by two one-year extensions pursuant to the terms set forth in the credit agreement, (ii) decreased the interest rate margin applicable to the loans and certain fees payable under the credit agreement and (iii) replaced the LIBOR interest rate benchmark with the secured overnight financing rate (“SOFR”). Outstanding borrowings under the credit agreement bear interest at a per annum rate elected by Diamondback E&P that is equal to (i) term SOFR plus 0.10% (“Adjusted Term SOFR”) or (ii) an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.50%, and 1-month Adjusted Term SOFR plus 1.0%), in each case plus the applicable margin. After giving effect to the amendment, (i) the applicable margin ranges from 0.125% to 1.000% per annum in the case of the alternate base rate, and from 1.125% to 2.000% per annum in the case of Adjusted Term SOFR, in each case based on the pricing level, and (ii) the commitment fee ranges from 0.125% to 0.325% per annum on the average daily unused portion of the commitments, based on the pricing level. The pricing level depends on certain rating agencies’ rating of the Company’s long-term senior unsecured debt. The Company applied the optional expedient in ASU 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting” for this contract modification, and as a result, the modification did not have an impact on its financial position, results of operations or liquidity. As of June 30, 2022, the Company was in compliance with all financial maintenance covenants under the credit agreement. March 2022 Notes Offering On March 17, 2022, Diamondback Energy, Inc. issued $750 million aggregate principal amount of 4.250% Senior Notes due March 15, 2052 (the “March 2022 Notes”) and received net proceeds of $739 million, after deducting debt issuance costs and discounts of $11 million and underwriting discounts and offering expenses. Interest on the March 2022 Notes is payable semi-annually on March 15 and September 15 of each year, beginning on September 15, 2022. The March 2022 Notes are the Company’s senior unsecured obligations and are fully and unconditionally guaranteed by Diamondback E&P. The March 2022 Notes are senior in right of payment to any of the Company’s future subordinated indebtedness and rank equal in right of payment with all of the Company’s existing and future senior indebtedness. The Company may redeem the March 2022 Notes in whole or in part at any time prior to September 15, 2051 at the redemption price set forth in the fifth supplemental indenture to the IG Indenture. Redemptions and Repurchases of Notes In the first quarter of 2022, the Company fully redeemed the $500 million and $1.0 billion principal amounts of its outstanding 4.750% 2025 Senior Notes and 2.875% 2024 Senior Notes, respectively. Cash consideration for these redemptions totaled $1.6 billion, including make-whole premiums of $47 million, which resulted in a loss on extinguishment of debt of $54 million during the first quarter of 2022. The Company funded the redemptions with a portion of the net proceeds from the March 2022 Notes offering and cash on hand. In the second quarter of 2022, the Company repurchased principal amounts of $27 million of its 7.125% Medium-term Notes due 2028, $111 million of its 3.125% Senior Notes due 2031, $179 million of its 3.500% Senior Notes due 2029 and $20 million of its 3.250% Senior Notes due 2026 for total cash consideration, including accrued interest paid, of $322 million. Additionally, Viper repurchased $50 million in principal amount of its 5.375% Senior Notes due 2027 for total cash consideration of $49 million. These repurchases resulted in an immaterial loss on extinguishment of debt during the second quarter of 2022. The Company funded its repurchases with cash on hand and Viper funded its repurchases with cash on hand and borrowings under the Viper credit agreement. Viper’s Credit Agreement Viper LLC’s credit agreement, as amended, provides for a revolving credit facility in the maximum credit amount of $2.0 billion with a borrowing base of $580 million based on Viper LLC’s oil and natural gas reserves and other factors. As of June 30, 2022, the elected commitment amount was $500 million with $250 million of outstanding borrowings and $250 million available for future borrowings. During the three and six months ended June 30, 2022 and 2021, the weighted average interest rates on borrowings under the Viper credit agreement were 3.20%, 2.88%, 1.93% and 1.90%, respectively. The Viper credit agreement will mature on June 2, 2025. As of June 30, 2022, Viper LLC was in compliance with all financial maintenance covenants under the Viper credit agreement. Rattler’s Credit Agreement Rattler LLC’s credit agreement, as amended, provides for a revolving credit facility in the maximum credit amount of $600 million, which is expandable to $1.0 billion upon Rattler’s election, subject to obtaining additional lender commitments and satisfaction of customary conditions. As of June 30, 2022, Rattler LLC had $232 million of outstanding borrowings and $368 million available for future borrowings under the Rattler credit agreement. During the three and six months ended June 30, 2022 and 2021, the weighted average interest rates on borrowings under the Rattler credit agreement were, in each case, 2.03%, 1.73%, 1.36% and 1.39%, respectively. The revolving credit facility will mature on May 28, 2024. As of June 30, 2022, Rattler LLC was in compliance with all financial maintenance covenants under the Rattler credit agreement. |
STOCKHOLDERS_ EQUITY AND EARNIN
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE | STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE Stock Repurchase Program In September 2021, the Company’s board of directors approved a stock repurchase program to acquire up to $2.0 billion of the Company’s outstanding common stock. 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 and six months ended June 30, 2022, the Company repurchased approximately $303 million and $310 million of common stock under this repurchase program, respectively. As of June 30, 2022, approximately $1.3 billion remained available for use to repurchase shares under the Company’s common stock repurchase program. Change in Ownership of Consolidated Subsidiaries Non-controlling interests in the accompanying condensed consolidated financial statements represent minority interest ownership in Viper and Rattler and are presented as a component of equity. When the Company’s relative ownership interests in Viper and Rattler change, adjustments to non-controlling interest and additional paid-in-capital, tax effected, will occur. The following table summarizes changes in the ownership interest in consolidated subsidiaries during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) Net income (loss) attributable to the Company $ 1,416 $ 311 $ 2,195 $ 531 Change in ownership of consolidated subsidiaries (9) (3) (21) (7) Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest $ 1,407 $ 308 $ 2,174 $ 524 Earnings (Loss) Per Share The Company’s earnings (loss) per share amounts have been computed using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Basic earnings (loss) 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 non-participating securities outstanding for the period. Additionally, the per share earnings of Viper and Rattler are included in the consolidated earnings per share computation based on the consolidated group’s holdings of the subsidiaries. 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, 2022 2021 2022 2021 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common stock $ 1,416 $ 311 $ 2,195 $ 531 Less: distributed and undistributed earnings allocated to participating securities (1) (13) (3) (17) (5) Net income (loss) attributable to common stockholders $ 1,403 $ 308 $ 2,178 $ 526 Weighted average common shares outstanding: Basic weighted average common shares outstanding 176,570 181,009 177,064 172,636 Effect of dilutive securities: Weighted-average potential common shares issuable (2) 306 190 316 170 Diluted weighted average common shares outstanding 176,876 181,199 177,380 172,806 Basic net income (loss) attributable to common stock $ 7.95 $ 1.70 $ 12.30 $ 3.05 Diluted net income (loss) attributable to common stock $ 7.93 $ 1.70 $ 12.28 $ 3.04 (1) Unvested restricted stock awards that contain non-forfeitable distribution equivalent rights are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION On June 3, 2021, the Company’s stockholders approved and adopted the Company’s 2021 amended and restated equity incentive plan (the “Equity Plan”), which, among other things, increased total shares authorized for issuance from 8.3 million to 11.8 million. At June 30, 2022, the Company had 5.1 million shares of common stock available for future grants. Under the Equity Plan, approved by the board of directors, the Company is authorized to issue incentive and non-statutory stock options, restricted stock awards and restricted stock units, performance awards and stock appreciation rights to eligible employees. At June 30, 2022, the Company had outstanding restricted stock units and performance-based restricted stock units under the Equity Plan. The Company also has immaterial amounts of restricted share awards, stock options and stock appreciation rights outstanding which were issued under plans assumed in connection with previously completed mergers. The Company classifies these as equity-based awards and estimates the fair values of restricted stock awards and units as the closing price of the Company’s common stock on the grant date of the award, which is expensed over the applicable vesting period. The Company values its stock options using a Black-Scholes option valuation model. In addition to the Equity Plan, Viper and Rattler maintain their own long-term incentive plans which are not significant to the Company. The following table presents the financial statement impacts of the equity compensation plans and related costs: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) General and administrative expenses $ 13 $ 13 $ 28 $ 23 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 6 $ 5 $ 10 $ 9 Restricted Stock Units The following table presents the Company’s restricted stock unit activity during the six months ended June 30, 2022 under the Equity Plan: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2021 1,079,589 $ 62.09 Granted 319,035 $ 132.84 Vested (178,185) $ 92.82 Forfeited (39,231) $ 68.58 Unvested at June 30, 2022 1,181,208 $ 76.35 The aggregate fair value of restricted stock units that vested during the six months ended June 30, 2022 was $17 million. As of June 30, 2022, the Company’s unrecognized compensation cost related to unvested restricted stock units was $70 million, which is expected to be recognized over a weighted-average period of 1.9 years. Performance Based Restricted Stock Units The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the six months ended June 30, 2022: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2021 456,459 $ 100.17 Granted 126,905 $ 237.13 Unvested at June 30, 2022 (1) 583,364 $ 129.96 (1) A maximum of 1,408,973 units could be awarded based upon the Company’s final TSR ranking. As of June 30, 2022, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $45 million, which is expected to be recognized over a weighted-average period of 1.6 years. In March 2022, eligible employees received performance restricted stock unit awards totaling 126,905 units from which a minimum of 0% and a maximum of 200% of the units could be awarded based upon the measurement of total stockholder return of the Company’s common stock as compared to a designated peer group during the 3-year performance period of January 1, 2022 to December 31, 2024 and cliff vest at December 31, 2024 subject to continued employment. The initial payout of the March 2022 awards will be further adjusted by a TSR modifier that may reduce the payout or increase the payout up to a maximum of 250%. The fair value of each performance restricted stock unit issuance 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 awards granted during the period presented: 2022 Grant-date fair value $ 237.13 Risk-free rate 1.44 % Company volatility 72.10 % |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides the Company’s provision for (benefit from) income taxes and the effective income tax rate for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions, except for tax rate) Provision for (benefit from) income taxes $ 402 $ 94 $ 623 $ 159 Effective income tax rate 21.6 % 22.3 % 21.6 % 22.4 % Total income tax expense from continuing operations for the three and six months ended June 30, 2022 and 2021 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to (i) state income taxes, net of federal benefit, and (ii) the impact of permanent differences between book and taxable income, partially offset by (iii) tax benefit resulting from a reduction in the valuation allowance on Viper’s deferred tax assets due to pre-tax income for the period. As of June 30, 2022 and 2021, Viper maintained a valuation allowance against its deferred tax assets, based on its assessment of all available evidence, both positive and negative, supporting realizability of Viper’s deferred tax assets. For the three and six months ended June 30, 2022 and 2021, the Company’s items of discrete income tax expense or benefit were not material. On March 17, 2021, the Company completed its acquisition of QEP. For federal income tax purposes, the transaction qualified as a nontaxable merger whereby the Company acquired carryover tax basis in QEP’s assets and liabilities. The Company’s opening balance sheet net deferred tax asset was finalized during the first quarter of 2022 at $39 million, and primarily consisted of deferred tax assets related to tax attributes acquired from QEP, partially offset by a valuation allowance related to federal and state tax attributes estimated not more likely than to be realized prior to expiration and deferred tax liabilities resulting from the excess of financial reporting carrying value over tax basis of oil and natural gas properties and other assets acquired from QEP. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES At June 30, 2022, the Company has commodity derivative contracts and interest rate swaps outstanding. All derivative financial instruments are recorded at fair value. Commodity Contracts The Company has entered into multiple crude oil and natural gas derivatives, indexed to the respective indices as noted in the table below, to reduce price volatility associated with certain of its oil and natural gas sales. The Company has not designated its commodity derivative instruments as hedges for accounting purposes and, as a result, marks its commodity derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.” 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 has entered into commodity derivative instruments only with counterparties that are also lenders under its credit facility and have been deemed an acceptable credit risk. As such, the Company does not require collateral from its counterparties. The Company had certain commodity derivative contracts that contained an other-than-insignificant financing element at inception during 2021 and, therefore, the cash receipts were classified as cash flows from financing activities in the condensed consolidated statements of cash flow for the six months ended June 30, 2021. As of June 30, 2022, the Company had the following outstanding commodity derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Swaps Collars Settlement Month Settlement Year Type of Contract Bbls/MMBtu Per Day Index Weighted Average Differential Weighted Average Floor Price Weighted Average Ceiling Price OIL July - Dec. 2022 Basis Swap (1) 10,000 Argus WTI Midland $0.84 $— $— July - Dec. 2022 Roll Swap 55,000 WTI $0.89 $— $— July - Sep. 2022 Costless Collar 19,000 Brent $— $53.95 $98.59 July - Sep. 2022 Costless Collar 11,000 Argus WTI Houston $— $50.00 $89.28 July - Sep. 2022 Costless Collar 4,000 WTI $— $45.00 $92.65 Oct. - Dec. 2022 Costless Collar 15,000 Brent $— $55.00 $103.06 Oct. - Dec. 2022 Costless Collar 7,000 Argus WTI Houston $— $50.00 $95.55 Oct. - Dec. 2022 Costless Collar 4,000 WTI $— $50.00 $128.01 Jan. - June 2023 Costless Collar 6,000 Brent $— $60.00 $114.57 Jan. - Dec. 2023 Basis Swap (1) 2,000 Argus WTI Midland $0.60 $— $— NATURAL GAS July - Dec. 2022 Basis Swap (1) 330,000 Waha Hub $(0.68) $— $— July - Dec. 2022 Costless Collar 380,000 Henry Hub $— $2.79 $6.24 Jan. - June 2023 Basis Swap (1) 320,000 Waha Hub $(1.19) $— $— Jan. - Mar. 2023 Costless Collar 330,000 Henry Hub $— $3.09 $8.52 Apr. - June 2023 Costless Collar 290,000 Henry Hub $— $3.12 $8.23 July - Dec. 2023 Costless Collar 270,000 Henry Hub $— $3.13 $8.27 July - Dec. 2023 Basis Swap (1) 300,000 Waha Hub $(1.24) $— $— (1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to the Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts. Settlement Month Settlement Year Type of Contract Bbls Per Day Index Strike Price Weighted Average Differential Deferred Premium OIL July - Sep. 2022 Put 69,000 Brent $50.87 $— $1.79 July - Sep. 2022 Put 20,000 Argus WTI Houston $50.50 $— $1.84 July - Sep. 2022 Put 8,000 WTI $47.50 $— $1.52 Oct. - Dec. 2022 Put 69,000 Brent $51.01 $— $1.78 Oct. - Dec. 2022 Put 20,000 Argus WTI Houston $51.00 $— $1.81 Oct. - Dec. 2022 Put 8,000 WTI $55.00 $— $1.54 July - Dec. 2022 Basis Put (1) 50,000 Brent $— $(10.40) $0.78 Jan. - Mar. 2023 Put 37,000 Brent $51.89 $— $1.74 Jan. - Mar. 2023 Put 10,000 Argus WTI Houston $52.00 $— $1.77 Jan. - Mar. 2023 Put 6,000 WTI $55.00 $— $1.87 Apr. - June 2023 Put 29,000 Brent $51.72 $— $1.81 Apr. - June 2023 Put 8,000 Argus WTI Houston $51.25 $— $1.77 July - Sep. 2023 Put 9,000 Brent $50.00 $— $1.91 July - Sep. 2023 Put 2,000 Argus WTI Houston $55.00 $— $1.86 (1) The Company has basis puts for the spread between the Brent crude oil price and NYMEX WTI crude oil price. During the six months ended June 30, 2022, the Company terminated certain commodity derivative contracts prior to their contractual maturities as shown in the table below: Swaps Collars Settlement Month Settlement Year Type of Contract Bbls Per Day Index Weighted Average Fixed Price Weighted Average Floor Price Weighted Average Ceiling Price OIL Apr. - June 2022 Costless Collar 8,000 WTI $— $45.00 $71.60 Apr. - June 2022 Costless Collar 8,000 Brent $— $45.00 $74.78 Apr. - June 2022 Costless Collar 6,000 Argus WTI Houston $— $45.00 $69.53 Apr. - Sep. 2022 Costless Collar 2,000 Brent $— $50.00 $80.00 Apr. - Sep. 2022 Costless Collar 2,000 Argus WTI Houston $— $50.00 $76.70 July - Sep. 2022 Costless Collar 4,000 Argus WTI Houston $— $50.00 $75.00 July - Dec. 2022 Swaption 8,250 Brent $68.62 $— $— Interest Rate Swaps In the second quarter of 2021, the Company entered into two interest rate swap agreements for notional amounts of $600 million, which were designated as fair value hedges of the Company’s $1.2 billion 3.50% fixed rate senior notes due 2029 (the “2029 Notes”) at inception. The Company receives a fixed 3.50% rate of interest on these swaps and pays an average variable rate of interest based on three month LIBOR plus 2.1865%, thereby limiting its exposure to changes in the fair value of debt due to movements in LIBOR interest rates. Under hedge accounting, these interest rate swaps were considered perfectly effective and gains and losses due to changes in the fair value of the interest rate swaps were completely offset by changes in the fair value of the hedged portion of the 2029 Notes in the condensed consolidated statements of operations. In the second quarter of 2022, the Company elected to fully dedesignate these interest rate swaps and hedge accounting was discontinued. The cumulative fair value basis adjustment recorded on the 2029 Notes at the time of dedesignation totaled $135 million. This basis adjustment is being amortized to interest expense over the remaining term of the 2029 Notes utilizing the effective interest method. The dedesignated interest rate swaps are considered economic hedges of the Company’s fixed-rate debt. As such, changes in the fair value of the interest rate swaps after the date of dedesignation have been recorded in earnings under the caption “Gain (loss) on derivative instruments, net” in the condensed consolidated statements of operations. During the first quarter of 2021, the Company used interest rate swaps to reduce its exposure to variable rate interest payments associated with the Company’s revolving credit facility. These interest rate swaps were not designated as hedging instruments and as a result, the Company recognized all changes in fair value immediately in earnings. During the first quarter of 2021, the Company terminated all of its previously outstanding interest rate swaps which resulted in cash received upon settlement of $80 million, net of fees, during the six months ended June 30, 2021. The interest swaps contained an other-than-insignificant financing element at inception, and therefore, the cash receipts were classified as cash flows from financing activities in the condensed consolidated statements of cash flow for the six months ended June 30, 2021. Balance Sheet Offsetting of Derivative Assets and Liabilities The fair value of derivative instruments 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, including any deferred premiums that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 12— Fair Value Measurements for further details. Gains and Losses on Derivative Instruments The following table summarizes the gains and losses on derivative instruments not designated as hedging instruments included in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) Gain (loss) on derivative instruments, net: Commodity contracts $ (102) $ (497) $ (654) $ (791) Interest rate swaps 1 — 1 130 Total $ (101) $ (497) $ (653) $ (661) Net cash received (paid) on settlements: Commodity contracts (1) $ (306) $ (323) $ (726) $ (505) Interest rate swaps (2) 6 — 6 80 Total $ (300) $ (323) $ (720) $ (425) (1) The six months ended June 30, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $135 million. (2) The six months ended June 30, 2021 includes cash received on interest rate swap contracts terminated prior to their contractual maturity of $80 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2022 | |
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. See Note 4— Acquisitions and Divestitures for discussion of the fair values of proved oil and natural gas properties assumed in business combinations. 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 commodity derivative instruments and interest rate swaps. The fair values of the Company’s commodity derivative contracts 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. Interest rate swaps designated as fair value hedges and those that are not designated as hedges are determined based on inputs that are readily available in public markets, can be derived from information available in publicly quoted markets, or are provided by financial institutions that trade these contracts. These valuations are Level 2 inputs. The fair value of interest rate swaps is recorded as an asset or liability on the condensed consolidated balance sheet. At December 31, 2021, the net change in fair value of the Company’s interest rate swaps designated as hedges were offset by the change in value of the hedged item, long-term debt, within the condensed consolidated balance sheet. The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented under the captions “Derivative instruments” in the Company’s condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2022 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 106 $ — $ 106 $ (89) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 51 $ — $ 51 $ (18) $ 33 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (89) $ 142 Interest rate swaps $ — $ 20 $ — $ 20 $ — $ 20 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 22 $ — $ 22 $ (18) $ 4 Interest rate swaps $ — $ 119 $ — $ 119 $ — $ 119 As of December 31, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 60 $ — $ 60 $ (57) $ 3 Interest rate swaps designated as hedges $ — $ 10 $ — $ 10 $ — $ 10 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (8) $ 4 Interest rate swaps designated as hedges $ — $ 1 $ — $ 1 $ (1) $ — Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (57) $ 174 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (8) $ 1 Interest rate swaps designated as hedges $ — $ 29 $ — $ 29 $ (1) $ 28 Assets and Liabilities Not Recorded at Fair Value The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: June 30, 2022 December 31, 2021 Carrying Carrying Value Fair Value Value Fair Value (In millions) Debt $ 5,456 $ 5,183 $ 6,687 $ 7,148 The fair values of the Company’s credit agreement, the Viper credit agreement and the Rattler credit agreement approximate their carrying values 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 values of the outstanding notes were determined using the quoted market price at each period end, a Level 1 classification in the fair value hierarchy. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis in certain circumstances. These assets and liabilities can include those acquired in a business combination, inventory, proved and unproved oil and gas properties and other long-lived assets that are written down to fair value when they are impaired or held for sale. Refer to Note 4— Acquisitions and Divestitures and Note 5— Property and Equipment for additional discussion of nonrecurring fair value adjustments. Fair Value of Financial Assets |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Company is a party to various routine legal proceedings, disputes and claims arising in the ordinary course of its business, including those that arise from interpretation of federal and state laws and regulations affecting the crude oil and natural gas industry, personal injury claims, title disputes, royalty disputes, contract claims, contamination claims relating to oil and natural gas exploration and development and environmental claims, including claims involving assets previously sold to third parties and no longer part of the Company’s current operations. 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’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 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, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Second Quarter 2022 Dividend Declaration On July 29, 2022, the board of directors of the Company declared a cash dividend for the second quarter of 2022 of $3.05 per share of common stock, payable on August 23, 2022 to its stockholders of record at the close of business on August 16, 2022. The dividend consists of a base quarterly dividend of $0.75 per share of common stock and a variable quarterly dividend of $2.30 per share of common stock. Future base and variable dividends are at the discretion of the board of directors of the Company. Stock Repurchase Program Subsequent to the quarter, the Company repurchased approximately $200 million in shares of Diamondback’s common stock through July 29, 2022. On July 28, 2022, the Company’s board of directors approved an increase in the Company’s common stock repurchase program from $2.0 billion to $4.0 billion. Redemptions of Notes In July 2022, the Company fully redeemed principal amounts of $25 million and $20 million of its 5.375% Notes due 2022 and 7.320% Medium-term Notes due 2022, respectively. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports its operations in two operating segments: (i) the upstream segment, which is engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas and (ii) the midstream operations segment, which is focused on owning, operating, developing and acquiring midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. All of the Company’s equity method investments are included in the midstream operations segment. The following tables summarize the results of the Company’s operating segments during the periods presented: Upstream Midstream Operations Eliminations Total (In millions) Three Months Ended June 30, 2022: Third-party revenues $ 2,753 $ 15 $ — $ 2,768 Intersegment revenues — 90 (90) — Total revenues 2,753 105 (90) 2,768 Depreciation, depletion, amortization and accretion 314 16 — 330 Income (loss) from operations 1,962 39 (23) 1,978 Interest expense, net (30) (9) — (39) Other income (expense) (100) 28 (4) (76) Provision for (benefit from) income taxes 398 4 — 402 Net income (loss) attributable to non-controlling interest 33 12 — 45 Net income (loss) attributable to Diamondback Energy, Inc. 1,401 42 (27) 1,416 As of June 30, 2022: Total assets $ 21,833 $ 2,022 $ (407) $ 23,448 Upstream Midstream Operations Eliminations Total (In millions) Three Months Ended June 30, 2021: Third-party revenues $ 1,669 $ 12 $ — $ 1,681 Intersegment revenues — 99 (99) — Total revenues 1,669 111 (99) 1,681 Depreciation, depletion, amortization and accretion 325 16 — 341 Income (loss) from operations 927 39 (11) 955 Interest expense, net (48) (9) — (57) Other income (expense) (502) 28 (2) (476) Provision for (benefit from) income taxes 91 3 — 94 Net income (loss) attributable to non-controlling interest 5 12 — 17 Net income (loss) attributable to Diamondback Energy, Inc. 281 43 (13) 311 As of December 31, 2021: Total assets $ 21,329 $ 1,942 $ (373) $ 22,898 Upstream Midstream Operations Eliminations Total (In millions) Six Months Ended June 30, 2022: Third-party revenues $ 5,144 $ 32 $ — $ 5,176 Intersegment revenues — 177 (177) — Total revenues 5,144 209 (177) 5,176 Depreciation, depletion, amortization and accretion 606 37 — 643 Income (loss) from operations 3,599 78 (39) 3,638 Interest expense, net (61) (18) — (79) Other income (expense) (700) 37 (9) (672) Provision for (benefit from) income taxes 617 6 — 623 Net income (loss) attributable to non-controlling interest 49 20 — 69 Net income (loss) attributable to Diamondback Energy, Inc. 2,172 71 (48) 2,195 As of June 30, 2022: Total assets $ 21,833 $ 2,022 $ (407) $ 23,448 Upstream Midstream Operations Eliminations Total (In millions) Six Months Ended June 30, 2021: Third-party revenues $ 2,841 $ 24 $ — $ 2,865 Intersegment revenues — 186 (186) — Total revenues 2,841 210 (186) 2,865 Depreciation, depletion, amortization and accretion 587 27 — 614 Income (loss) from operations 1,479 77 (30) 1,526 Interest expense, net (97) (16) — (113) Other income (expense) (724) 25 (4) (703) Provision for (benefit from) income taxes 154 5 — 159 Net income (loss) attributable to non-controlling interest 2 18 — 20 Net income (loss) attributable to Diamondback Energy, Inc. 502 63 (34) 531 As of December 31, 2021: Total assets $ 21,329 $ 1,942 $ (373) $ 22,898 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Diamondback’s publicly traded subsidiaries Viper Energy Partners LP (“Viper”) and Rattler Midstream LP (“Rattler”) are consolidated in the Company’s financial statements. As of June 30, 2022, the Company owned approximately 55% of Viper’s total units outstanding. The Company’s wholly owned subsidiary, Viper Energy Partners GP LLC, is the general partner of Viper. As of June 30, 2022, the Company owned approximately 74% of Rattler’s total units outstanding. The Company’s wholly owned subsidiary, Rattler Midstream GP LLC, is the general partner of Rattler. The results of operations attributable to the non-controlling interest in Viper and Rattler are presented within equity and net income and are shown separately from the equity and net income attributable to the Company. These condensed consolidated 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 SEC 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, 2021, which contains a summary of the Company’s significant accounting policies and other disclosures. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had an immaterial effect on the previously reported total assets, total liabilities, stockholders’ equity, results of operations or cash flows. |
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 as of the date of the consolidated financial statements. Actual results could differ from those estimates. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry, given the challenges resulting from volatility in oil and natural gas prices and the effects of the COVID-19 pandemic. Such circumstances generally increase the uncertainty in the Company’s accounting estimates, particularly those involving financial forecasts. 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, the fair value determination of acquired assets and liabilities assumed, fair value estimates of derivative instruments and estimates of income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements There are no recently adopted pronouncements. Accounting Pronouncements Not Yet Adopted In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805) – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers.” This update requires the acquirer in a business combination to record contract asset and liabilities following Topic 606 – “Revenue from Contracts with Customers” at acquisition as if it had originated the contract, rather than at fair value. This update is effective for public business entities beginning after December 15, 2022 with early adoption permitted. The Company continues to evaluate the provisions of this update, but does not believe the adoption will have a material impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, the effects of adoption are not expected to be material or are clarifications of ASUs previously disclosed. |
Revenue from Contracts with Customers | Revenue from Contracts with CustomersSales 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. |
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. See Note 4— Acquisitions and Divestitures for discussion of the fair values of proved oil and natural gas properties assumed in business combinations. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported at the end of the period in the condensed consolidated statements of cash flows for the six months ended June 30, 2022 and 2021 to the line items within the condensed consolidated balance sheets: Six Months Ended June 30, 2022 2021 (In millions) Cash and cash equivalents $ 43 $ 344 Restricted cash 16 18 Restricted cash included in funds held in escrow — 34 Total cash, cash equivalents and restricted cash $ 59 $ 396 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin: Three Months Ended June 30, 2022 Three Months Ended June 30, 2021 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 1,610 $ 577 $ 2 $ 2,189 $ 876 $ 408 $ 111 $ 1,395 Natural gas sales 168 95 1 264 75 27 5 107 Natural gas liquid sales 207 91 1 299 102 52 11 165 Total $ 1,985 $ 763 $ 4 $ 2,752 $ 1,053 $ 487 $ 127 $ 1,667 Six Months Ended June 30, 2022 Six Months Ended June 30, 2021 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 3,008 $ 1,122 $ 5 $ 4,135 $ 1,445 $ 766 $ 128 $ 2,339 Natural gas sales 266 151 1 418 116 88 7 211 Natural gas liquid sales 398 188 2 588 177 99 13 289 Total $ 3,672 $ 1,461 $ 8 $ 5,141 $ 1,738 $ 953 $ 148 $ 2,839 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The following table presents the acquisition consideration paid in the Guidon Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 10,676 Closing price per share of Diamondback common stock on the closing date $ 69.28 Fair value of Diamondback common stock issued $ 740 Cash consideration 375 Total consideration (including fair value of Diamondback common stock issued) $ 1,115 Total consideration $ 1,115 Fair value of liabilities assumed: Asset retirement obligations 9 Fair value of assets acquired: Oil and gas properties 1,110 Midstream assets 14 Amount attributable to assets acquired 1,124 Net assets acquired and liabilities assumed $ 1,115 |
Schedule of Acquisition Consideration Paid | The following table presents the acquisition consideration paid to QEP stockholders in the QEP Merger (in millions, except per share data, shares in thousands): Consideration: Eligible shares of QEP common stock converted into shares of Diamondback common stock 238,153 Shares of QEP equity awards included in precombination consideration 4,221 Total shares of QEP common stock eligible for merger consideration 242,374 Exchange ratio 0.050 Shares of Diamondback common stock issued as merger consideration 12,119 Closing price per share of Diamondback common stock $ 81.41 Total consideration (fair value of the Company's common stock issued) $ 987 |
Schedule of Preliminary Purchase Price Allocation | The following table sets forth the Company’s purchase price allocation (in millions): Total consideration $ 987 Fair value of liabilities assumed: Accounts payable - trade $ 26 Accrued capital expenditures 38 Other accrued liabilities 107 Revenues and royalties payable 67 Derivative instruments 242 Long-term debt 1,710 Asset retirement obligations 54 Other long-term liabilities 63 Amount attributable to liabilities assumed $ 2,307 Fair value of assets acquired: Cash, cash equivalents and restricted cash $ 22 Accounts receivable - joint interest and other, net 87 Accounts receivable - oil and natural gas sales, net 44 Inventories 18 Income tax receivable 33 Prepaid expenses and other current assets 7 Oil and natural gas properties 2,922 Other property, equipment and land 16 Deferred income taxes 39 Other assets 106 Amount attributable to assets acquired 3,294 Net assets acquired and liabilities assumed $ 987 |
Schedule of Acquisition Pro Forma Information | Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In millions, except per share amounts) Revenues $ 1,656 $ 3,137 Income (loss) from operations $ 1,022 $ 1,706 Net income (loss) $ 388 $ 534 Basic earnings (loss) per common share $ 2.14 $ 2.95 Diluted earnings (loss) per common share $ 2.13 $ 2.94 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment includes the following as of the dates indicated: June 30, December 31, 2022 2021 (In millions) Oil and natural gas properties: Subject to depletion $ 26,103 $ 24,418 Not subject to depletion 8,097 8,496 Gross oil and natural gas properties 34,200 32,914 Accumulated depletion (6,019) (5,434) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 20,227 19,526 Midstream assets 1,139 1,076 Other property, equipment and land 190 174 Accumulated depreciation, amortization, accretion and impairment (187) (157) Total property and equipment, net $ 21,369 $ 20,619 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Asset Retirement Obligations | The following table describes the changes to the Company’s asset retirement obligations liability for the following periods: Six Months Ended June 30, 2022 2021 (In millions) Asset retirement obligations, beginning of period $ 171 $ 109 Additional liabilities incurred 26 6 Liabilities acquired 3 63 Liabilities settled and divested (8) (4) Accretion expense 6 5 Revisions in estimated liabilities 75 13 Asset retirement obligations, end of period 273 192 Less current portion (1) 13 7 Asset retirement obligations - long-term $ 260 $ 185 (1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets. |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2022 2021 (In millions) 5.375% Senior Notes due 2022 $ 25 $ 25 7.320% Medium-term Notes, Series A, due 2022 20 20 5.250% Senior Notes due 2023 10 10 2.875% Senior Notes due 2024 — 1,000 4.750% Senior Notes due 2025 — 500 3.250% Senior Notes due 2026 780 800 5.625% Senior Notes due 2026 14 14 7.125% Medium-term Notes, Series B, due 2028 73 100 3.500% Senior Notes due 2029 1,021 1,200 3.125% Senior Notes due 2031 789 900 4.400% Senior Notes due 2051 650 650 4.250% Senior Notes due 2052 750 — DrillCo Agreement (1) 41 58 Unamortized debt issuance costs (32) (31) Unamortized discount costs (22) (28) Unamortized premium costs 5 8 Unamortized basis adjustment of dedesignated interest rate swap agreements (2) (113) (18) Revolving credit facility 33 — Viper revolving credit facility 250 304 Viper 5.375% Senior Notes due 2027 430 480 Rattler revolving credit facility 232 195 Rattler 5.625% Senior Notes due 2025 500 500 Total debt, net 5,456 6,687 Less: current maturities of long-term debt (55) (45) Total long-term debt $ 5,401 $ 6,642 (1) Represents amounts due under a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. to fund oil and natural gas development. (2) Represents the unamortized basis adjustment related to two receive-fixed, pay variable interest rate swap agreements which were previously designated as fair value hedges of the Company’s $1.2 billion 3.500% fixed rate senior notes due 2029. These swaps were dedesignated in the second quarter of 2022 as discussed further in Note 11— Derivatives . |
STOCKHOLDERS_ EQUITY AND EARN_2
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of Change in Ownership Interest | The following table summarizes changes in the ownership interest in consolidated subsidiaries during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) Net income (loss) attributable to the Company $ 1,416 $ 311 $ 2,195 $ 531 Change in ownership of consolidated subsidiaries (9) (3) (21) (7) Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest $ 1,407 $ 308 $ 2,174 $ 524 |
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, 2022 2021 2022 2021 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common stock $ 1,416 $ 311 $ 2,195 $ 531 Less: distributed and undistributed earnings allocated to participating securities (1) (13) (3) (17) (5) Net income (loss) attributable to common stockholders $ 1,403 $ 308 $ 2,178 $ 526 Weighted average common shares outstanding: Basic weighted average common shares outstanding 176,570 181,009 177,064 172,636 Effect of dilutive securities: Weighted-average potential common shares issuable (2) 306 190 316 170 Diluted weighted average common shares outstanding 176,876 181,199 177,380 172,806 Basic net income (loss) attributable to common stock $ 7.95 $ 1.70 $ 12.30 $ 3.05 Diluted net income (loss) attributable to common stock $ 7.93 $ 1.70 $ 12.28 $ 3.04 (1) Unvested restricted stock awards that contain non-forfeitable distribution equivalent rights are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method. |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Effects of Stock-Based Compensation Plans and Related Costs | The following table presents the financial statement impacts of the equity compensation plans and related costs: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) General and administrative expenses $ 13 $ 13 $ 28 $ 23 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 6 $ 5 $ 10 $ 9 |
Schedule of Restricted Stock Units | The following table presents the Company’s restricted stock unit activity during the six months ended June 30, 2022 under the Equity Plan: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2021 1,079,589 $ 62.09 Granted 319,035 $ 132.84 Vested (178,185) $ 92.82 Forfeited (39,231) $ 68.58 Unvested at June 30, 2022 1,181,208 $ 76.35 |
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, 2022: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2021 456,459 $ 100.17 Granted 126,905 $ 237.13 Unvested at June 30, 2022 (1) 583,364 $ 129.96 (1) A maximum of 1,408,973 units could be awarded based upon the Company’s final TSR ranking. |
Schedule 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 awards granted during the period presented: 2022 Grant-date fair value $ 237.13 Risk-free rate 1.44 % Company volatility 72.10 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate | The following table provides the Company’s provision for (benefit from) income taxes and the effective income tax rate for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions, except for tax rate) Provision for (benefit from) income taxes $ 402 $ 94 $ 623 $ 159 Effective income tax rate 21.6 % 22.3 % 21.6 % 22.4 % |
Schedule of Components of Income Tax Expense (Benefit) | The following table provides the Company’s provision for (benefit from) income taxes and the effective income tax rate for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions, except for tax rate) Provision for (benefit from) income taxes $ 402 $ 94 $ 623 $ 159 Effective income tax rate 21.6 % 22.3 % 21.6 % 22.4 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of June 30, 2022, the Company had the following outstanding commodity derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Swaps Collars Settlement Month Settlement Year Type of Contract Bbls/MMBtu Per Day Index Weighted Average Differential Weighted Average Floor Price Weighted Average Ceiling Price OIL July - Dec. 2022 Basis Swap (1) 10,000 Argus WTI Midland $0.84 $— $— July - Dec. 2022 Roll Swap 55,000 WTI $0.89 $— $— July - Sep. 2022 Costless Collar 19,000 Brent $— $53.95 $98.59 July - Sep. 2022 Costless Collar 11,000 Argus WTI Houston $— $50.00 $89.28 July - Sep. 2022 Costless Collar 4,000 WTI $— $45.00 $92.65 Oct. - Dec. 2022 Costless Collar 15,000 Brent $— $55.00 $103.06 Oct. - Dec. 2022 Costless Collar 7,000 Argus WTI Houston $— $50.00 $95.55 Oct. - Dec. 2022 Costless Collar 4,000 WTI $— $50.00 $128.01 Jan. - June 2023 Costless Collar 6,000 Brent $— $60.00 $114.57 Jan. - Dec. 2023 Basis Swap (1) 2,000 Argus WTI Midland $0.60 $— $— NATURAL GAS July - Dec. 2022 Basis Swap (1) 330,000 Waha Hub $(0.68) $— $— July - Dec. 2022 Costless Collar 380,000 Henry Hub $— $2.79 $6.24 Jan. - June 2023 Basis Swap (1) 320,000 Waha Hub $(1.19) $— $— Jan. - Mar. 2023 Costless Collar 330,000 Henry Hub $— $3.09 $8.52 Apr. - June 2023 Costless Collar 290,000 Henry Hub $— $3.12 $8.23 July - Dec. 2023 Costless Collar 270,000 Henry Hub $— $3.13 $8.27 July - Dec. 2023 Basis Swap (1) 300,000 Waha Hub $(1.24) $— $— (1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to the Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts. Settlement Month Settlement Year Type of Contract Bbls Per Day Index Strike Price Weighted Average Differential Deferred Premium OIL July - Sep. 2022 Put 69,000 Brent $50.87 $— $1.79 July - Sep. 2022 Put 20,000 Argus WTI Houston $50.50 $— $1.84 July - Sep. 2022 Put 8,000 WTI $47.50 $— $1.52 Oct. - Dec. 2022 Put 69,000 Brent $51.01 $— $1.78 Oct. - Dec. 2022 Put 20,000 Argus WTI Houston $51.00 $— $1.81 Oct. - Dec. 2022 Put 8,000 WTI $55.00 $— $1.54 July - Dec. 2022 Basis Put (1) 50,000 Brent $— $(10.40) $0.78 Jan. - Mar. 2023 Put 37,000 Brent $51.89 $— $1.74 Jan. - Mar. 2023 Put 10,000 Argus WTI Houston $52.00 $— $1.77 Jan. - Mar. 2023 Put 6,000 WTI $55.00 $— $1.87 Apr. - June 2023 Put 29,000 Brent $51.72 $— $1.81 Apr. - June 2023 Put 8,000 Argus WTI Houston $51.25 $— $1.77 July - Sep. 2023 Put 9,000 Brent $50.00 $— $1.91 July - Sep. 2023 Put 2,000 Argus WTI Houston $55.00 $— $1.86 (1) The Company has basis puts for the spread between the Brent crude oil price and NYMEX WTI crude oil price. During the six months ended June 30, 2022, the Company terminated certain commodity derivative contracts prior to their contractual maturities as shown in the table below: Swaps Collars Settlement Month Settlement Year Type of Contract Bbls Per Day Index Weighted Average Fixed Price Weighted Average Floor Price Weighted Average Ceiling Price OIL Apr. - June 2022 Costless Collar 8,000 WTI $— $45.00 $71.60 Apr. - June 2022 Costless Collar 8,000 Brent $— $45.00 $74.78 Apr. - June 2022 Costless Collar 6,000 Argus WTI Houston $— $45.00 $69.53 Apr. - Sep. 2022 Costless Collar 2,000 Brent $— $50.00 $80.00 Apr. - Sep. 2022 Costless Collar 2,000 Argus WTI Houston $— $50.00 $76.70 July - Sep. 2022 Costless Collar 4,000 Argus WTI Houston $— $50.00 $75.00 July - Dec. 2022 Swaption 8,250 Brent $68.62 $— $— |
Schedule of Derivative Contract Gains and Losses Included in the Consolidated Statements of Operations | The following table summarizes the gains and losses on derivative instruments not designated as hedging instruments included in the condensed consolidated statements of operations: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 (In millions) Gain (loss) on derivative instruments, net: Commodity contracts $ (102) $ (497) $ (654) $ (791) Interest rate swaps 1 — 1 130 Total $ (101) $ (497) $ (653) $ (661) Net cash received (paid) on settlements: Commodity contracts (1) $ (306) $ (323) $ (726) $ (505) Interest rate swaps (2) 6 — 6 80 Total $ (300) $ (323) $ (720) $ (425) (1) The six months ended June 30, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $135 million. (2) The six months ended June 30, 2021 includes cash received on interest rate swap contracts terminated prior to their contractual maturity of $80 million. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information For Financial Instruments Measured on a Recurring Basis | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented under the captions “Derivative instruments” in the Company’s condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2022 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 106 $ — $ 106 $ (89) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 51 $ — $ 51 $ (18) $ 33 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (89) $ 142 Interest rate swaps $ — $ 20 $ — $ 20 $ — $ 20 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 22 $ — $ 22 $ (18) $ 4 Interest rate swaps $ — $ 119 $ — $ 119 $ — $ 119 As of December 31, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 60 $ — $ 60 $ (57) $ 3 Interest rate swaps designated as hedges $ — $ 10 $ — $ 10 $ — $ 10 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (8) $ 4 Interest rate swaps designated as hedges $ — $ 1 $ — $ 1 $ (1) $ — Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (57) $ 174 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (8) $ 1 Interest rate swaps designated as hedges $ — $ 29 $ — $ 29 $ (1) $ 28 |
Schedule of Offsetting Assets | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented under the captions “Derivative instruments” in the Company’s condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2022 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 106 $ — $ 106 $ (89) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 51 $ — $ 51 $ (18) $ 33 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (89) $ 142 Interest rate swaps $ — $ 20 $ — $ 20 $ — $ 20 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 22 $ — $ 22 $ (18) $ 4 Interest rate swaps $ — $ 119 $ — $ 119 $ — $ 119 As of December 31, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 60 $ — $ 60 $ (57) $ 3 Interest rate swaps designated as hedges $ — $ 10 $ — $ 10 $ — $ 10 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (8) $ 4 Interest rate swaps designated as hedges $ — $ 1 $ — $ 1 $ (1) $ — Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (57) $ 174 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (8) $ 1 Interest rate swaps designated as hedges $ — $ 29 $ — $ 29 $ (1) $ 28 |
Schedule of Offsetting Liabilities | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented under the captions “Derivative instruments” in the Company’s condensed consolidated balance sheets as of June 30, 2022 and December 31, 2021 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2022 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 106 $ — $ 106 $ (89) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 51 $ — $ 51 $ (18) $ 33 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (89) $ 142 Interest rate swaps $ — $ 20 $ — $ 20 $ — $ 20 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 22 $ — $ 22 $ (18) $ 4 Interest rate swaps $ — $ 119 $ — $ 119 $ — $ 119 As of December 31, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In millions) Assets: Current assets- Derivative instruments: Commodity derivative instruments $ — $ 60 $ — $ 60 $ (57) $ 3 Interest rate swaps designated as hedges $ — $ 10 $ — $ 10 $ — $ 10 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (8) $ 4 Interest rate swaps designated as hedges $ — $ 1 $ — $ 1 $ (1) $ — Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 231 $ — $ 231 $ (57) $ 174 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (8) $ 1 Interest rate swaps designated as hedges $ — $ 29 $ — $ 29 $ (1) $ 28 |
Schedule of 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 condensed consolidated balance sheets: June 30, 2022 December 31, 2021 Carrying Carrying Value Fair Value Value Fair Value (In millions) Debt $ 5,456 $ 5,183 $ 6,687 $ 7,148 |
SUPPLEMENTAL INFORMATION TO S_2
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Supplemental Cash Flow Information Disclosure [Abstract] | |
Schedule of Supplemental Disclosures of Cash Flow Information | Six Months Ended June 30, 2022 2021 (In millions) Supplemental disclosure of cash flow information: Cash paid (received) for income taxes $ 362 $ (100) Supplemental disclosure of non-cash transactions: Accrued capital expenditures included in accounts payable and accrued expenses $ 340 $ 296 Common stock issued for business combinations $ — $ 1,727 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Results Of The Company Business Segments | The following tables summarize the results of the Company’s operating segments during the periods presented: Upstream Midstream Operations Eliminations Total (In millions) Three Months Ended June 30, 2022: Third-party revenues $ 2,753 $ 15 $ — $ 2,768 Intersegment revenues — 90 (90) — Total revenues 2,753 105 (90) 2,768 Depreciation, depletion, amortization and accretion 314 16 — 330 Income (loss) from operations 1,962 39 (23) 1,978 Interest expense, net (30) (9) — (39) Other income (expense) (100) 28 (4) (76) Provision for (benefit from) income taxes 398 4 — 402 Net income (loss) attributable to non-controlling interest 33 12 — 45 Net income (loss) attributable to Diamondback Energy, Inc. 1,401 42 (27) 1,416 As of June 30, 2022: Total assets $ 21,833 $ 2,022 $ (407) $ 23,448 Upstream Midstream Operations Eliminations Total (In millions) Three Months Ended June 30, 2021: Third-party revenues $ 1,669 $ 12 $ — $ 1,681 Intersegment revenues — 99 (99) — Total revenues 1,669 111 (99) 1,681 Depreciation, depletion, amortization and accretion 325 16 — 341 Income (loss) from operations 927 39 (11) 955 Interest expense, net (48) (9) — (57) Other income (expense) (502) 28 (2) (476) Provision for (benefit from) income taxes 91 3 — 94 Net income (loss) attributable to non-controlling interest 5 12 — 17 Net income (loss) attributable to Diamondback Energy, Inc. 281 43 (13) 311 As of December 31, 2021: Total assets $ 21,329 $ 1,942 $ (373) $ 22,898 Upstream Midstream Operations Eliminations Total (In millions) Six Months Ended June 30, 2022: Third-party revenues $ 5,144 $ 32 $ — $ 5,176 Intersegment revenues — 177 (177) — Total revenues 5,144 209 (177) 5,176 Depreciation, depletion, amortization and accretion 606 37 — 643 Income (loss) from operations 3,599 78 (39) 3,638 Interest expense, net (61) (18) — (79) Other income (expense) (700) 37 (9) (672) Provision for (benefit from) income taxes 617 6 — 623 Net income (loss) attributable to non-controlling interest 49 20 — 69 Net income (loss) attributable to Diamondback Energy, Inc. 2,172 71 (48) 2,195 As of June 30, 2022: Total assets $ 21,833 $ 2,022 $ (407) $ 23,448 Upstream Midstream Operations Eliminations Total (In millions) Six Months Ended June 30, 2021: Third-party revenues $ 2,841 $ 24 $ — $ 2,865 Intersegment revenues — 186 (186) — Total revenues 2,841 210 (186) 2,865 Depreciation, depletion, amortization and accretion 587 27 — 614 Income (loss) from operations 1,479 77 (30) 1,526 Interest expense, net (97) (16) — (113) Other income (expense) (724) 25 (4) (703) Provision for (benefit from) income taxes 154 5 — 159 Net income (loss) attributable to non-controlling interest 2 18 — 20 Net income (loss) attributable to Diamondback Energy, Inc. 502 63 (34) 531 As of December 31, 2021: Total assets $ 21,329 $ 1,942 $ (373) $ 22,898 |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) | 3 Months Ended | ||
Sep. 30, 2022 $ / shares | Jun. 30, 2022 $ / shares | Dec. 31, 2021 $ / shares | |
Noncontrolling Interest [Line Items] | |||
Common stock, par value (in USD per share) | $ 0.01 | $ 0.01 | |
Merger Agreement | Forecast | Rattler LLC | |||
Noncontrolling Interest [Line Items] | |||
Conversion ratio | 0.113 | ||
Common stock, par value (in USD per share) | $ 0.01 | ||
Viper Energy Partners LP | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage | 55% | ||
Rattler MIdstream LP | |||
Noncontrolling Interest [Line Items] | |||
Ownership percentage | 74% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 43 | $ 654 | $ 344 | |||
Restricted cash | 16 | 18 | 18 | |||
Restricted cash included in funds held in escrow | 0 | 12 | 34 | |||
Total cash, cash equivalents and restricted cash | $ 59 | [1] | $ 672 | $ 396 | [1] | $ 108 |
[1]See Note 2—Summary of Significant Accounting Policies . |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,752 | $ 1,667 | $ 5,141 | $ 2,839 |
Midland Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,985 | 1,053 | 3,672 | 1,738 |
Delaware Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 763 | 487 | 1,461 | 953 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4 | 127 | 8 | 148 |
Oil sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2,189 | 1,395 | 4,135 | 2,339 |
Oil sales | Midland Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,610 | 876 | 3,008 | 1,445 |
Oil sales | Delaware Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 577 | 408 | 1,122 | 766 |
Oil sales | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 2 | 111 | 5 | 128 |
Natural gas sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 264 | 107 | 418 | 211 |
Natural gas sales | Midland Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 168 | 75 | 266 | 116 |
Natural gas sales | Delaware Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 95 | 27 | 151 | 88 |
Natural gas sales | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1 | 5 | 1 | 7 |
Natural gas liquid sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 299 | 165 | 588 | 289 |
Natural gas liquid sales | Midland Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 207 | 102 | 398 | 177 |
Natural gas liquid sales | Delaware Basin | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 91 | 52 | 188 | 99 |
Natural gas liquid sales | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1 | $ 11 | $ 2 | $ 13 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narrative (Details) shares in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Jan. 18, 2022 USD ($) a | Dec. 01, 2021 USD ($) | Oct. 21, 2021 USD ($) a | Oct. 01, 2021 USD ($) a shares | Mar. 31, 2021 USD ($) | Feb. 26, 2021 USD ($) a well shares | Mar. 31, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | Mar. 17, 2021 a | |
Business Acquisition [Line Items] | |||||||||||||
Merger and integration expenses | $ 0 | $ 2,000,000 | $ 0 | $ 77,000,000 | |||||||||
Long-term debt, gross | $ 5,456,000,000 | $ 5,456,000,000 | $ 6,687,000,000 | ||||||||||
Williston Basin | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Gain (loss) on disposition of assets | $ 0 | ||||||||||||
Williston Basin | Discontinued Operations, Disposed of by Sale | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Area of land | a | 95,000 | ||||||||||||
Asset acquisition, price of acquisition, expected | $ 586,000,000 | ||||||||||||
QEP Resources Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Proved properties | $ 2,000,000,000 | ||||||||||||
Unproved properties | $ 733,000,000 | ||||||||||||
Revenues | 359,000,000 | 413,000,000 | |||||||||||
Direct operating expenses | 116,000,000 | 139,000,000 | |||||||||||
Total tier one acres | a | 49,000 | ||||||||||||
Exchange ratio | 0.050 | ||||||||||||
Acquisition related costs | 77,000,000 | ||||||||||||
Acquisition related costs, incurred by QEP | 31,000,000 | ||||||||||||
Guidon Operating LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration | $ 375,000,000 | ||||||||||||
Number of shares issued (in shares) | shares | 10,676 | ||||||||||||
Number of additional wells | well | 210 | ||||||||||||
Proved properties | $ 537,000,000 | ||||||||||||
Unproved properties | $ 573,000,000 | ||||||||||||
Revenues | 103,000,000 | 133,000,000 | |||||||||||
Direct operating expenses | $ 49,000,000 | $ 65,000,000 | |||||||||||
2021 Dropdown Transaction | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Price of acquisition | $ 164,000,000 | ||||||||||||
Asset acquisition, property acquired | $ 164,000,000 | ||||||||||||
Viper’s Swallowtail Acquisition | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash consideration | $ 225,000,000 | ||||||||||||
Number of shares issued (in shares) | shares | 15,250 | ||||||||||||
Viper’s Swallowtail Acquisition | Viper’s Revolving Credit Facility | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Long-term debt, gross | $ 190,000,000 | ||||||||||||
Viper’s Swallowtail Acquisition | Diamondback Energy, Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Percentage of shares operated | 62% | ||||||||||||
Delaware Basin | First Quarter 2022 Acquisition | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Area of land | a | 6,200 | ||||||||||||
Cash consideration | $ 232,000,000 | ||||||||||||
Northern Midland Basin | Guidon Operating LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Area of land | a | 32,500 | ||||||||||||
Northern Midland Basin | Viper’s Swallowtail Acquisition | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Area of land | a | 2,313 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Schedule of Acquisition Consideration Paid (Details) - Guidon Operating LLC $ / shares in Units, shares in Thousands, $ in Millions | Feb. 26, 2021 USD ($) $ / shares shares |
Schedule of Asset Acquisition [Line Items] | |
Shares of Diamondback common stock issued at closing (shares) | shares | 10,676 |
Closing price per share of Diamondback common stock on the closing date (in USD per share) | $ / shares | $ 69.28 |
Fair value of Diamondback common stock issued | $ 740 |
Cash consideration | 375 |
Total consideration | $ 1,115 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Schedule of Purchase Price Allocation (Details) - Guidon Operating LLC $ in Millions | Feb. 26, 2021 USD ($) |
Schedule of Asset Acquisition [Line Items] | |
Total consideration | $ 1,115 |
Fair value of liabilities assumed: | |
Asset retirement obligations | 9 |
Fair value of assets acquired: | |
Oil and gas properties | 1,110 |
Midstream assets | 14 |
Amount attributable to assets acquired | 1,124 |
Net assets acquired and liabilities assumed | $ 1,115 |
ACQUISITIONS AND DIVESTITURES_
ACQUISITIONS AND DIVESTITURES - Schedule Of Acquisition Consideration Paid (Details) - QEP Resources Inc $ / shares in Units, shares in Thousands, $ in Millions | Mar. 17, 2021 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Eligible shares of QEP common stock to be converted into shares of Diamondback common stock (in shares) | 238,153 |
Shares of QEP equity awards included in precombination consideration (in shares) | 4,221 |
Total shares of QEP common stock eligible for merger consideration (in shares) | 242,374 |
Exchange ratio | 0.050 |
Additional shares of Diamondback common stock to be issued as merger consideration (in shares) | 12,119 |
Business acquisition, share price (in USD per share) | $ / shares | $ 81.41 |
Total consideration | $ | $ 987 |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Schedule of Preliminary Purchase Price Allocation (Details) - QEP Resources Inc - USD ($) $ in Millions | Mar. 17, 2021 | Mar. 31, 2022 |
Business Combination, Consideration Transferred [Abstract] | ||
Total consideration | $ 987 | |
Fair value of liabilities assumed: | ||
Accounts payable - trade | 26 | |
Accrued capital expenditures | 38 | |
Other accrued liabilities | 107 | |
Revenues and royalties payable | 67 | |
Derivative instruments | 242 | |
Long-term debt | 1,710 | |
Asset retirement obligations | 54 | |
Other long-term liabilities | 63 | |
Amount attributable to liabilities assumed | 2,307 | |
Fair value of assets acquired: | ||
Cash, cash equivalents and restricted cash | 22 | |
Accounts receivable - joint interest and other, net | 87 | |
Accounts receivable - oil and natural gas sales, net | 44 | |
Inventories | 18 | |
Income tax receivable | 33 | |
Prepaid expenses and other current assets | 7 | |
Oil and natural gas properties | 2,922 | |
Other property, equipment and land | 16 | |
Deferred income taxes | 39 | $ 39 |
Other assets | 106 | |
Amount attributable to assets acquired | 3,294 | |
Net assets acquired and liabilities assumed | $ 987 |
ACQUISITIONS AND DIVESTITURES_5
ACQUISITIONS AND DIVESTITURES - Business Acquisition, Pro Forma Information (Details) - QEP Resources Inc - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,656 | $ 3,137 |
Income (loss) from operations | 1,022 | 1,706 |
Net income (loss) | $ 388 | $ 534 |
Basic earnings (loss) per common share (in USD per share) | $ 2.14 | $ 2.95 |
Diluted earnings (loss) per common share (in USD per share) | $ 2.13 | $ 2.94 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Oil and natural gas properties: | ||
Not subject to depletion | $ 8,097 | $ 8,496 |
Gross oil and natural gas properties | 34,200 | 32,914 |
Accumulated depletion and depreciation | (14,160) | (13,545) |
Midstream assets | 1,139 | 1,076 |
Other property, equipment and land | 190 | 174 |
Property and equipment, net | 21,369 | 20,619 |
Oil and Natural Gas | ||
Oil and natural gas properties: | ||
Subject to depletion | 26,103 | 24,418 |
Not subject to depletion | 8,097 | 8,496 |
Gross oil and natural gas properties | 34,200 | 32,914 |
Accumulated depletion and depreciation | (6,019) | (5,434) |
Accumulated impairment | (7,954) | (7,954) |
Oil and natural gas properties, net | 20,227 | 19,526 |
Other Property and Equipment, Net | ||
Oil and natural gas properties: | ||
Accumulated depletion and depreciation | (187) | (157) |
Other property, equipment and land | $ 190 | $ 174 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Impairment of oil and natural gas properties | $ 0 | $ 0 | $ 0 | $ 0 | |
Guidon Operating LLC And QEP Resources | |||||
Business Acquisition [Line Items] | |||||
Impairment of oil and natural gas properties | $ 0 | ||||
QEP Resources Inc | |||||
Business Acquisition [Line Items] | |||||
Unamortized costs | 3,000,000,000 | ||||
Guidon Operating LLC | |||||
Business Acquisition [Line Items] | |||||
Unamortized costs | $ 1,100,000,000 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations, beginning of period | $ 171 | $ 109 | |
Additional liabilities incurred | 26 | 6 | |
Liabilities acquired | 3 | 63 | |
Liabilities settled and divested | (8) | (4) | |
Accretion expense | 6 | 5 | |
Revisions in estimated liabilities | 75 | 13 | |
Asset retirement obligations, end of period | 273 | 192 | |
Less current portion | 13 | 7 | |
Asset retirement obligations - long-term | $ 260 | $ 185 | $ 166 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) | Jun. 30, 2022 USD ($) derivative | Mar. 31, 2022 | Dec. 31, 2021 USD ($) | Jun. 30, 2021 instrument |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 5,456,000,000 | $ 6,687,000,000 | ||
Unamortized debt issuance costs | (32,000,000) | (31,000,000) | ||
Unamortized discount costs | (22,000,000) | (28,000,000) | ||
Unamortized premium costs | 5,000,000 | 8,000,000 | ||
Unamortized basis adjustment of dedesignated interest rate swap agreements | (113,000,000) | (18,000,000) | ||
Current maturities of long-term debt | (55,000,000) | (45,000,000) | ||
Total long-term debt | $ 5,401,000,000 | 6,642,000,000 | ||
Number of agreements | instrument | 2 | |||
Fair value of interest rate swap agreements | ||||
Debt Instrument [Line Items] | ||||
Number of agreements | derivative | 2 | |||
5.375% Senior Notes due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.375% | |||
5.375% Senior Notes due 2022 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 25,000,000 | 25,000,000 | ||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 7.32% | |||
7.320% Medium-term Notes, Series A, due 2022 | Medium-term Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 20,000,000 | 20,000,000 | ||
5.250% Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.25% | |||
5.250% Senior Notes due 2023 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 10,000,000 | 10,000,000 | ||
2.875% Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 2.875% | |||
2.875% Senior Notes due 2024 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 2.875% | |||
Long-term debt, gross | $ 0 | 1,000,000,000 | ||
4.750% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.75% | |||
4.750% Senior Notes due 2025 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.75% | |||
Long-term debt, gross | $ 0 | 500,000,000 | ||
3.250% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.25% | |||
3.250% Senior Notes due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.25% | |||
Long-term debt, gross | $ 780,000,000 | 800,000,000 | ||
5.625% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.625% | |||
5.625% Senior Notes due 2026 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 14,000,000 | 14,000,000 | ||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 7.125% | |||
7.125% Medium-term Notes, Series B, due 2028 | Medium-term Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 7.125% | |||
Long-term debt, gross | $ 73,000,000 | 100,000,000 | ||
3.500% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.50% | |||
3.500% Senior Notes due 2029 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.50% | |||
Long-term debt, gross | $ 1,021,000,000 | 1,200,000,000 | ||
3.125% Senior Notes due 2031 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.125% | |||
3.125% Senior Notes due 2031 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 3.125% | |||
Long-term debt, gross | $ 789,000,000 | 900,000,000 | ||
4.400% Senior Notes due 2051 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.40% | |||
4.400% Senior Notes due 2051 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 650,000,000 | 650,000,000 | ||
4.250% Senior Notes due 2052 | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 4.25% | |||
Long-term debt, gross | $ 750,000,000 | 0 | ||
DrillCo Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 41,000,000 | 58,000,000 | ||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 33,000,000 | |||
Revolving credit facility | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 33,000,000 | 0 | ||
Viper revolving credit facility | Viper Energy Partners LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 250,000,000 | 304,000,000 | ||
Viper 5.375% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.375% | |||
Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 430,000,000 | 480,000,000 | ||
Rattler revolving credit facility | Rattler LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 232,000,000 | 195,000,000 | ||
Rattler 5.625% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.625% | |||
Rattler 5.625% Senior Notes due 2025 | Rattler LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500,000,000 | $ 500,000,000 |
DEBT - Credit Agreement (Detail
DEBT - Credit Agreement (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 02, 2022 extension | Jun. 30, 2022 USD ($) | Jun. 30, 2021 | Jun. 30, 2022 USD ($) | Jun. 30, 2021 | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
Outstanding borrowings | $ 5,456,000,000 | $ 5,456,000,000 | $ 6,687,000,000 | |||
Credit agreement | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 1,600,000,000 | 1,600,000,000 | ||||
Outstanding borrowings | 33,000,000 | 33,000,000 | ||||
Outstanding letters of credit | $ 3,000,000 | $ 3,000,000 | ||||
Weighted average rate | 2.69% | 1.68% | 1.67% | |||
Number of credit facility extensions | extension | 2 | |||||
Debt term, extension period | 1 year | |||||
Credit agreement | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage based on unused portion of borrowing base | 0.125% | |||||
Credit agreement | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Commitment fee percentage based on unused portion of borrowing base | 0.325% | |||||
Credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.10% | |||||
Credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1.125% | |||||
Credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Credit agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | One Month | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Credit agreement | Federal Funds Rate | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Credit agreement | Base Rate | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 0.125% | |||||
Credit agreement | Base Rate | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable rate | 1% |
DEBT - March 2022 Notes Offerin
DEBT - March 2022 Notes Offering (Details) - 4.250% Senior Notes due 2052 - Senior Notes - USD ($) $ in Millions | Mar. 17, 2022 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Aggregate principal amount | $ 750 | |
Debt instrument stated interest rate | 4.25% | |
Proceeds from debt, net | 739 | |
Debt issuance costs and discounts | $ 11 |
DEBT - Redemptions and Repurcha
DEBT - Redemptions and Repurchases of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Repurchase of debt | $ 1,865 | $ 2,107 | ||||
Issuance costs and discount | $ 22 | 22 | $ 28 | |||
Loss on extinguishment of debt | 4 | $ 0 | $ 58 | $ 61 | ||
Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Repurchase of debt | $ 322 | $ 1,600 | ||||
Loss on extinguishment of debt | 54 | |||||
Redemption premium fees | 47 | |||||
4.750% Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 4.75% | 4.75% | ||||
4.750% Senior Notes due 2025 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 500 | |||||
Debt instrument stated interest rate | 4.75% | |||||
2.875% Senior Notes due 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 2.875% | 2.875% | ||||
2.875% Senior Notes due 2024 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 1,000 | |||||
Debt instrument stated interest rate | 2.875% | |||||
7.125% Medium-term Notes due 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 7.125% | 7.125% | ||||
7.125% Medium-term Notes due 2028 | Medium-term Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 27 | $ 27 | ||||
Debt instrument stated interest rate | 7.125% | 7.125% | ||||
3.125% Senior Notes due 2031 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 3.125% | 3.125% | ||||
3.125% Senior Notes due 2031 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 111 | $ 111 | ||||
Debt instrument stated interest rate | 3.125% | 3.125% | ||||
3.500% Senior Notes due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 3.50% | 3.50% | ||||
3.500% Senior Notes due 2029 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 179 | $ 179 | ||||
Debt instrument stated interest rate | 3.50% | 3.50% | ||||
3.250% Senior Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 3.25% | 3.25% | ||||
3.250% Senior Notes due 2026 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 20 | $ 20 | ||||
Debt instrument stated interest rate | 3.25% | 3.25% | ||||
Viper 5.375% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Redemption, amount | $ 50 | $ 50 | ||||
Debt instrument stated interest rate | 5.375% | 5.375% | ||||
Repurchase of debt | $ 49 |
DEBT - Viper_s Credit Agreement
DEBT - Viper’s Credit Agreement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | $ 5,456,000,000 | $ 5,456,000,000 | $ 6,687,000,000 | ||
Viper revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 2,000,000,000 | 2,000,000,000 | |||
Viper revolving credit facility | Viper Energy Partners LP | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 500,000,000 | 500,000,000 | |||
Current borrowing capacity | 580,000,000 | 580,000,000 | |||
Outstanding borrowings | 250,000,000 | 250,000,000 | $ 304,000,000 | ||
Remaining borrowing capacity | $ 250,000,000 | $ 250,000,000 | |||
Weighted average rate | 3.20% | 1.93% | 2.88% | 1.90% |
DEBT - Rattler's Credit Agreeme
DEBT - Rattler's Credit Agreement (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Line of Credit Facility [Line Items] | |||||
Outstanding borrowings | $ 5,456,000,000 | $ 5,456,000,000 | $ 6,687,000,000 | ||
Rattler revolving credit facility | Rattler LLC | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 600,000,000 | 600,000,000 | |||
Expandable amount | 1,000,000,000 | 1,000,000,000 | |||
Outstanding borrowings | 232,000,000 | 232,000,000 | $ 195,000,000 | ||
Remaining borrowing capacity | $ 368,000,000 | $ 368,000,000 | |||
Weighted average rate | 2.03% | 1.36% | 1.73% | 1.39% |
STOCKHOLDERS_ EQUITY AND EARN_3
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 2,000,000,000 | ||
Shares repurchased during period | $ 303,000,000 | $ 310,000,000 | |
Stock repurchase remaining authorized amount | $ 1,300,000,000 | $ 1,300,000,000 |
STOCKHOLDERS_ EQUITY AND EARN_4
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Change in Ownership of Consolidated Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the Company | $ 1,416 | $ 311 | $ 2,195 | $ 531 | |
Change in ownership of consolidated subsidiaries | 3 | $ 3 | 1 | ||
Limited Partner | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the Company | 1,416 | 311 | 2,195 | 531 | |
Change in ownership of consolidated subsidiaries | (9) | (3) | (21) | (7) | |
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest | $ 1,407 | $ 308 | $ 2,174 | $ 524 |
STOCKHOLDERS_ EQUITY AND EARN_5
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||||
Net income (loss) attributable to common stock | $ 1,416 | $ 311 | $ 2,195 | $ 531 |
Less: net income (loss) allocated to participating securities | (13) | (3) | (17) | (5) |
Net income (loss) attributable to common stockholders | $ 1,403 | $ 308 | $ 2,178 | $ 526 |
Weighted average common shares outstanding: | ||||
Basic weighted average common units outstanding (in shares) | 176,570,000 | 181,009,000 | 177,064,000 | 172,636,000 |
Effect of dilutive securities: | ||||
Potential common shares issuable (in shares) | 306,000 | 190,000 | 316,000 | 170,000 |
Diluted weighted average common shares outstanding (in shares) | 176,876,000 | 181,199,000 | 177,380,000 | 172,806,000 |
Basic net income (loss) attributable to common stock (in USD per share) | $ 7.95 | $ 1.70 | $ 12.30 | $ 3.05 |
Diluted net income (loss) attributable to common stock (in USD per share) | $ 7.93 | $ 1.70 | $ 12.28 | $ 3.04 |
Antidilutive securities, restricted stock units (in shares) | 76,473 | 99,835 | 137,357 |
STOCKHOLDERS_ EQUITY AND EARN_6
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Capital Stock (Details) - USD ($) | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Sep. 30, 2021 | |
Equity [Abstract] | ||||
Stock repurchase program authorized amount | $ 2,000,000,000 | |||
Stock repurchase program amount repurchased | $ 303,000,000 | $ 7,000,000 | $ 12,000,000 | |
Stock repurchase remaining authorized amount | $ 1,300,000,000 |
EQUITY-BASED COMPENSATION - (Na
EQUITY-BASED COMPENSATION - (Narratives) (Details) - Equity Plan - shares shares in Millions | Jun. 30, 2022 | Jun. 03, 2021 | Jun. 02, 2021 |
Restricted Stock Awards & Units | |||
Shares authorized for issuance (in shares) | 11.8 | 8.3 | |
Common stock available for future grants (in shares) | 5.1 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 6 | $ 5 | $ 10 | $ 9 |
General and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
General and administrative expenses | $ 13 | $ 13 | $ 28 | $ 23 |
EQUITY-BASED COMPENSATION - Res
EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Restricted Stock Units | |
Unvested, beginning balance (in shares) | shares | 1,079,589 |
Granted (in shares) | shares | 319,035 |
Vested (in shares) | shares | (178,185) |
Forfeited (in shares) | shares | (39,231) |
Unvested, ending balance (in shares) | shares | 1,181,208 |
Weighted Average Grant-Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 62.09 |
Granted (in USD per share) | $ / shares | 132.84 |
Vested (in USD per share) | $ / shares | 92.82 |
Forfeited (in USD per share) | $ / shares | 68.58 |
Unvested, ending balance (in USD per share) | $ / shares | $ 76.35 |
EQUITY-BASED COMPENSATION - R_2
EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregated fair value of restricted stock | $ 17 |
Share based award not recognized | $ 70 |
Share based payment not recognized | 1 year 10 months 24 days |
EQUITY-BASED COMPENSATION - Per
EQUITY-BASED COMPENSATION - Performance Restricted Stock Activity (Details) - Equity Plan - Performance Shares - $ / shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2022 | Jun. 30, 2022 | |
Performance Restricted Stock Units | ||
Unvested, beginning balance (in shares) | 456,459 | |
Granted (in shares) | 126,905 | 126,905 |
Unvested, ending balance (in shares) | 583,364 | |
Weighted Average Grant-Date Fair Value | ||
Unvested, beginning balance (in USD per share) | $ 100.17 | |
Granted (in USD per share) | 237.13 | |
Unvested, ending balance (in USD per share) | $ 129.96 | |
Share based compensation arrangement by share based payment maximum award potential (in shares) | 1,408,973 |
EQUITY-BASED COMPENSATION - P_2
EQUITY-BASED COMPENSATION - Performance Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Mar. 31, 2022 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based award not recognized | $ 45 | |
Share based payment not recognized | 1 year 7 months 6 days | |
Granted (in shares) | 126,905 | 126,905 |
Number of shares authorized percent of shares granted | 250% | |
Performance shares, performance period | 3 years | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized percent of shares granted | 0% | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized percent of shares granted | 200% |
EQUITY-BASED COMPENSATION - Val
EQUITY-BASED COMPENSATION - Valuation Assumptions (Details) - Equity Plan - Performance Shares | 6 Months Ended |
Jun. 30, 2022 $ / shares | |
Restricted Stock Awards & Units | |
Granted (in USD per share) | $ 237.13 |
Risk-free rate | 1.44% |
Company volatility | 72.10% |
INCOME TAXES - Schedule Tax Pro
INCOME TAXES - Schedule Tax Provision (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 402 | $ 94 | $ 623 | $ 159 |
Effective income tax rate | 21.60% | 22.30% | 21.60% | 22.40% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Mar. 17, 2021 |
QEP Resources Inc | ||
Business Acquisition [Line Items] | ||
Deferred income taxes | $ 39 | $ 39 |
DERIVATIVES - Derivative Positi
DERIVATIVES - Derivative Positions (Details) bbl in Thousands | 6 Months Ended |
Jun. 30, 2022 $ / bbl bbl | |
2022 | July - Sep. | OIL | WTI | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 4 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 92.65 |
2022 | July - Sep. | OIL | WTI | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.52 |
Strike Price (USD per Bbl) | 47.50 |
2022 | July - Sep. | OIL | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 19 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 53.95 |
Weighted Average Ceiling Price (USD per Bbl) | 98.59 |
2022 | July - Sep. | OIL | Brent | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 69 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.79 |
Strike Price (USD per Bbl) | 50.87 |
2022 | July - Sep. | OIL | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 11 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 89.28 |
2022 | July - Sep. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 20 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.84 |
Strike Price (USD per Bbl) | 50.50 |
2022 | July - Dec. | OIL | Argus WTI Midland | Basis Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 10 |
Weighted average differential (per Bbl) | 0.84 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2022 | July - Dec. | OIL | WTI | Roll Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 55 |
Weighted average differential (per Bbl) | 0.89 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2022 | July - Dec. | OIL | Brent | Basis Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 10.40 |
Weighted Average Ceiling Price (USD per Bbl) | 0.78 |
Strike Price (USD per Bbl) | 0 |
2022 | July - Dec. | NATURAL GAS | Waha Hub | Basis Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 330 |
Weighted average differential (per Bbl) | (0.68) |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2022 | July - Dec. | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 380 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 2.79 |
Weighted Average Ceiling Price (USD per Bbl) | 6.24 |
2022 | Oct. - Dec. | OIL | WTI | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 4 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 128.01 |
2022 | Oct. - Dec. | OIL | WTI | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.54 |
Strike Price (USD per Bbl) | 55 |
2022 | Oct. - Dec. | OIL | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 15 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 55 |
Weighted Average Ceiling Price (USD per Bbl) | 103.06 |
2022 | Oct. - Dec. | OIL | Brent | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 69 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.78 |
Strike Price (USD per Bbl) | 51.01 |
2022 | Oct. - Dec. | OIL | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 7 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 95.55 |
2022 | Oct. - Dec. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 20 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.81 |
Strike Price (USD per Bbl) | 51 |
2023 | July - Sep. | OIL | Brent | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 9 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.91 |
Strike Price (USD per Bbl) | 50 |
2023 | July - Sep. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 2 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.86 |
Strike Price (USD per Bbl) | 55 |
2023 | July - Dec. | NATURAL GAS | Waha Hub | Basis Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 300 |
Weighted average differential (per Bbl) | (1.24) |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2023 | July - Dec. | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 270 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 3.13 |
Weighted Average Ceiling Price (USD per Bbl) | 8.27 |
2023 | Jan. - June | OIL | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 6 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 60 |
Weighted Average Ceiling Price (USD per Bbl) | 114.57 |
2023 | Jan. - June | NATURAL GAS | Waha Hub | Basis Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 320 |
Weighted average differential (per Bbl) | (1.19) |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2023 | Jan. - Dec. | OIL | Argus WTI Midland | Basis Swap | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 2 |
Weighted average differential (per Bbl) | 0.60 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
2023 | Jan. - Mar. | OIL | WTI | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 6 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.87 |
Strike Price (USD per Bbl) | 55 |
2023 | Jan. - Mar. | OIL | Brent | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 37 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.74 |
Strike Price (USD per Bbl) | 51.89 |
2023 | Jan. - Mar. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 10 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.77 |
Strike Price (USD per Bbl) | 52 |
2023 | Jan. - Mar. | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 330 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 3.09 |
Weighted Average Ceiling Price (USD per Bbl) | 8.52 |
2023 | Apr. - June | OIL | Brent | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 29 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.81 |
Strike Price (USD per Bbl) | 51.72 |
2023 | Apr. - June | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 1.77 |
Strike Price (USD per Bbl) | 51.25 |
2023 | Apr. - June | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 290 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 3.12 |
Weighted Average Ceiling Price (USD per Bbl) | 8.23 |
DERIVATIVES - Restructurings De
DERIVATIVES - Restructurings Derivative Positions By Terminating (Details) - 2022 - OIL | 6 Months Ended |
Jun. 30, 2022 $ / bbl bbl | |
July - Sep. | WTI | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 4,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 92.65 |
July - Sep. | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 19,000 |
Weighted Average Floor Price (USD per Bbl) | 53.95 |
Weighted Average Ceiling Price (USD per Bbl) | 98.59 |
July - Sep. | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 11,000 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 89.28 |
Oct. - Dec. | WTI | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 4,000 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 128.01 |
Oct. - Dec. | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 15,000 |
Weighted Average Floor Price (USD per Bbl) | 55 |
Weighted Average Ceiling Price (USD per Bbl) | 103.06 |
Oct. - Dec. | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 7,000 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 95.55 |
Terminated Early | July - Sep. | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 4,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 75 |
Terminated Early | July - Dec. | Brent | Swaption | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8,250 |
Weighted Average Fixed Price (usd perBbl) | 68.62 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
Terminated Early | Apr. - June | WTI | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 71.60 |
Terminated Early | Apr. - June | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 8,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 74.78 |
Terminated Early | Apr. - June | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 6,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 69.53 |
Terminated Early | Apr. - Sep. | Brent | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 2,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 80 |
Terminated Early | Apr. - Sep. | Argus WTI Houston | Costless Collar | |
Derivative [Line Items] | |
Bbls Per Day | bbl | 2,000 |
Weighted Average Fixed Price (usd perBbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 50 |
Weighted Average Ceiling Price (USD per Bbl) | 76.70 |
DERIVATIVES - Interest Rate Swa
DERIVATIVES - Interest Rate Swaps (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) derivative | Jun. 30, 2021 USD ($) instrument | Jun. 30, 2022 USD ($) derivative | Jun. 30, 2021 USD ($) instrument | May 31, 2022 USD ($) | |
Derivative [Line Items] | |||||
Number of instruments held | instrument | 2 | 2 | |||
Net cash received (paid) on settlements: | $ (300,000,000) | $ (323,000,000) | $ (720,000,000) | $ (425,000,000) | |
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Number of instruments held | derivative | 2 | 2 | |||
Derivative, notional amount | 600,000,000 | $ 600,000,000 | |||
Net cash received (paid) on settlements: | $ 80,000,000 | ||||
Interest rate swaps | Designated as Hedging Instrument | LIBOR | |||||
Derivative [Line Items] | |||||
Derivative, average variable interest rate | 2.1865% | 2.1865% | |||
Interest rate swaps | Senior Notes Due 2029 | Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Fair value hedges | $ 1,200,000,000 | $ 1,200,000,000 | |||
Derivative, fixed interest rate | 3.50% | 3.50% | |||
Cumulative basis adjustments on discontinuation of hedge | $ 135,000,000 |
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, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments, net: | $ (101) | $ (497) | $ (653) | $ (661) |
Net cash received (paid) on settlements: | (300) | (323) | (720) | (425) |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments, net: | (102) | (497) | (654) | (791) |
Net cash received (paid) on settlements: | (306) | (323) | (726) | (505) |
Cash paid on contract | 135 | |||
Interest rate swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on derivative instruments, net: | 1 | 0 | 1 | 130 |
Net cash received (paid) on settlements: | $ 6 | $ 0 | $ 6 | $ 80 |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - Fair Value, Recurring - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | $ 106 | $ 60 |
Gross Amounts Offset in Balance Sheet | (89) | (57) |
Net Fair Value Presented in Balance Sheet | 17 | 3 |
Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 51 | 12 |
Gross Amounts Offset in Balance Sheet | (18) | (8) |
Net Fair Value Presented in Balance Sheet | 33 | 4 |
Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 231 | 231 |
Gross Amounts Offset in Balance Sheet | (89) | (57) |
Net Fair Value Presented in Balance Sheet | 142 | 174 |
Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 22 | 9 |
Gross Amounts Offset in Balance Sheet | (18) | (8) |
Net Fair Value Presented in Balance Sheet | 4 | 1 |
Interest rate swaps | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 10 | |
Gross Amounts Offset in Balance Sheet | 0 | |
Net Fair Value Presented in Balance Sheet | 10 | |
Interest rate swaps | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 1 | |
Gross Amounts Offset in Balance Sheet | (1) | |
Net Fair Value Presented in Balance Sheet | 0 | |
Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 20 | |
Gross Amounts Offset in Balance Sheet | 0 | |
Net Fair Value Presented in Balance Sheet | 20 | |
Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 119 | 29 |
Gross Amounts Offset in Balance Sheet | 0 | (1) |
Net Fair Value Presented in Balance Sheet | 119 | 28 |
Level 1 | Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | 0 |
Level 1 | Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | 0 |
Level 1 | Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 1 | Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 1 | Interest rate swaps | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | |
Level 1 | Interest rate swaps | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | |
Level 1 | Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | |
Level 1 | Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 2 | Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 106 | 60 |
Level 2 | Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 51 | 12 |
Level 2 | Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 231 | 231 |
Level 2 | Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 22 | 9 |
Level 2 | Interest rate swaps | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 10 | |
Level 2 | Interest rate swaps | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 1 | |
Level 2 | Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 20 | |
Level 2 | Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 119 | 29 |
Level 3 | Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | 0 |
Level 3 | Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | 0 |
Level 3 | Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 3 | Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 3 | Interest rate swaps | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | |
Level 3 | Interest rate swaps | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 0 | |
Level 3 | Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | |
Level 3 | Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Asset and Liabilities Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Carrying Value | $ 5,401 | $ 6,642 |
Carrying Value | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Carrying Value | 5,456 | 6,687 |
Fair Value | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Fair Value | $ 5,183 | $ 7,148 |
SUPPLEMENTAL INFORMATION TO S_3
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Supplemental disclosure of cash flow information: | ||
Cash paid (received) for income taxes | $ 362 | $ (100) |
Supplemental disclosure of non-cash transactions: | ||
Accrued capital expenditures included in accounts payable and accrued expenses | 340 | 296 |
Common stock issued for business combinations | $ 0 | $ 1,727 |
SUBSEQUENT EVENTS - Narratives
SUBSEQUENT EVENTS - Narratives (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jul. 28, 2022 | Jul. 29, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jul. 31, 2022 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | |||||||||
Dividends declared per share (in USD per share) | $ 3.05 | $ 0.45 | $ 6.10 | $ 0.85 | |||||
Stock repurchase program amount repurchased | $ 303,000,000 | $ 7,000,000 | $ 12,000,000 | ||||||
Stock repurchase program authorized amount | $ 2,000,000,000 | ||||||||
5.375% Senior Notes due 2022 | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument stated interest rate | 5.375% | 5.375% | |||||||
7.320% Medium-term Notes, Series A, due 2022 | |||||||||
Subsequent Event [Line Items] | |||||||||
Debt instrument stated interest rate | 7.32% | 7.32% | |||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends declared per share (in USD per share) | $ 3.05 | ||||||||
Stock repurchase program amount repurchased | $ 200,000,000 | ||||||||
Stock repurchase program authorized amount | $ 4,000,000,000 | ||||||||
Subsequent Event | 5.375% Senior Notes due 2022 | |||||||||
Subsequent Event [Line Items] | |||||||||
Repurchased principal amount | $ 25,000,000 | ||||||||
Subsequent Event | 7.320% Medium-term Notes, Series A, due 2022 | |||||||||
Subsequent Event [Line Items] | |||||||||
Repurchased principal amount | $ 20,000,000 | ||||||||
Subsequent Event | Fixed Dividend | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable (in USD per share) | $ 0.75 | ||||||||
Subsequent Event | Variable Dividend | |||||||||
Subsequent Event [Line Items] | |||||||||
Dividends payable (in USD per share) | $ 2.30 |
SEGMENT INFORMATION- Additional
SEGMENT INFORMATION- Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,768 | $ 1,681 | $ 5,176 | $ 2,865 | |
Depreciation, depletion, amortization and accretion | 330 | 341 | 643 | 614 | |
Income (loss) from operations | 1,978 | 955 | 3,638 | 1,526 | |
Interest expense, net | (39) | (57) | (79) | (113) | |
Other income (expense) | (76) | (476) | (672) | (703) | |
Provision for (benefit from) income taxes | 402 | 94 | 623 | 159 | |
Net income (loss) attributable to non-controlling interest | 45 | 17 | 69 | 20 | |
Net income (loss) attributable to Diamondback Energy, Inc. | 1,416 | 311 | 2,195 | 531 | |
Total assets | 23,448 | 22,898 | 23,448 | 22,898 | $ 22,898 |
Upstream | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,753 | 1,669 | 5,144 | 2,841 | |
Midstream Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 105 | 111 | 209 | 210 | |
Operating Segments | Upstream | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,753 | 1,669 | 5,144 | 2,841 | |
Depreciation, depletion, amortization and accretion | 314 | 325 | 606 | 587 | |
Income (loss) from operations | 1,962 | 927 | 3,599 | 1,479 | |
Interest expense, net | (30) | (48) | (61) | (97) | |
Other income (expense) | (100) | (502) | (700) | (724) | |
Provision for (benefit from) income taxes | 398 | 91 | 617 | 154 | |
Net income (loss) attributable to non-controlling interest | 33 | 5 | 49 | 2 | |
Net income (loss) attributable to Diamondback Energy, Inc. | 1,401 | 281 | 2,172 | 502 | |
Total assets | 21,833 | 21,329 | 21,833 | 21,329 | 21,329 |
Operating Segments | Midstream Operations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 15 | 12 | 32 | 24 | |
Depreciation, depletion, amortization and accretion | 16 | 16 | 37 | 27 | |
Income (loss) from operations | 39 | 39 | 78 | 77 | |
Interest expense, net | (9) | (9) | (18) | (16) | |
Other income (expense) | 28 | 28 | 37 | 25 | |
Provision for (benefit from) income taxes | 4 | 3 | 6 | 5 | |
Net income (loss) attributable to non-controlling interest | 12 | 12 | 20 | 18 | |
Net income (loss) attributable to Diamondback Energy, Inc. | 42 | 43 | 71 | 63 | |
Total assets | 2,022 | 1,942 | 2,022 | 1,942 | 1,942 |
Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | (90) | (99) | (177) | (186) | |
Depreciation, depletion, amortization and accretion | 0 | 0 | 0 | 0 | |
Income (loss) from operations | (23) | (11) | (39) | (30) | |
Interest expense, net | 0 | 0 | 0 | 0 | |
Other income (expense) | (4) | (2) | (9) | (4) | |
Provision for (benefit from) income taxes | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to non-controlling interest | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to Diamondback Energy, Inc. | (27) | (13) | (48) | (34) | |
Total assets | $ (407) | $ (373) | $ (407) | $ (373) | $ (373) |