Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 | 178,343,733 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001539838 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 896 | $ 582 |
Restricted cash | 3 | 3 |
Accounts receivable: | ||
Joint interest and other, net | 208 | 192 |
Oil and natural gas sales, net ($132 million and $109 million related to Viper) | 734 | 654 |
Income tax receivable | 0 | 1 |
Inventories | 57 | 63 |
Derivative instruments | 7 | 17 |
Prepaid expenses and other current assets | 43 | 109 |
Total current assets | 1,948 | 1,621 |
Property and equipment: | ||
Oil and natural gas properties, full cost method of accounting ($8,455 million and $8,659 million excluded from amortization at March 31, 2024 and December 31, 2023, respectively) ($4,649 million and $4,629 million and $1,719 million and $1,769 million excluded from amortization related to Viper) | 43,240 | 42,430 |
Other property, equipment and land | 675 | 673 |
Accumulated depletion, depreciation, amortization and impairment ($913 million and $866 million related to Viper) | (16,891) | (16,429) |
Property and equipment, net | 27,024 | 26,674 |
Equity method investments | 529 | 529 |
Derivative instruments | 7 | 1 |
Deferred income taxes, net | 61 | 45 |
Investment in real estate, net | 83 | 84 |
Other assets | 38 | 47 |
Total assets | 29,690 | 29,001 |
Current liabilities: | ||
Accounts payable - trade | 243 | 261 |
Accrued capital expenditures | 570 | 493 |
Other accrued liabilities | 337 | 475 |
Revenues and royalties payable | 732 | 764 |
Derivative instruments | 102 | 86 |
Income taxes payable | 134 | 29 |
Total current liabilities | 2,118 | 2,108 |
Long-term debt ($1,094 million and $1,083 million related to Viper) | 6,629 | 6,641 |
Derivative instruments | 144 | 122 |
Asset retirement obligations | 266 | 239 |
Deferred income taxes | 2,502 | 2,449 |
Other long-term liabilities | 12 | 12 |
Total liabilities | 11,671 | 11,571 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 400,000,000 shares authorized; 178,339,978 and 178,723,871 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 2 | 2 |
Additional paid-in capital | 14,251 | 14,142 |
Retained earnings (accumulated deficit) | 2,705 | 2,489 |
Accumulated other comprehensive income (loss) | (8) | (8) |
Total Diamondback Energy, Inc. stockholders’ equity | 16,950 | 16,625 |
Non-controlling interest | 1,069 | 805 |
Total equity | 18,019 | 17,430 |
Total liabilities and stockholders' equity | $ 29,690 | $ 29,001 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts receivable | $ 734 | $ 654 |
Oil and natural gas properties, amortization excluded | 8,455 | 8,659 |
Oil and natural gas properties, full cost method gross | 43,240 | 42,430 |
Accumulated depreciation, amortization, accretion and impairment | (16,891) | (16,429) |
Long-term debt | $ 6,629 | $ 6,641 |
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) | 178,339,978 | 178,723,871 |
Shares outstanding (in shares) | 178,339,978 | 178,723,871 |
Variable Interest Entity, Primary Beneficiary | ||
Accounts receivable | $ 132 | $ 109 |
Oil and natural gas properties, amortization excluded | 1,719 | 1,769 |
Oil and natural gas properties, full cost method gross | 4,649 | 4,629 |
Accumulated depreciation, amortization, accretion and impairment | (913) | (866) |
Long-term debt | $ 1,094 | $ 1,083 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Other operating income | $ 10 | $ 23 |
Total revenues | 2,227 | 1,925 |
Costs and expenses: | ||
Lease operating expenses | 255 | 192 |
Production and ad valorem taxes | 119 | 155 |
Depreciation, depletion, amortization and accretion | 469 | 403 |
General and administrative expenses | 46 | 40 |
Merger and integration expenses | 12 | 8 |
Other operating expenses | 14 | 34 |
Total costs and expenses | 1,109 | 900 |
Income (loss) from operations | 1,118 | 1,025 |
Other income (expense): | ||
Interest expense, net | (46) | (46) |
Other income (expense), net | 4 | 53 |
Gain (loss) on derivative instruments, net | (48) | (93) |
Gain (loss) on extinguishment of debt | 2 | 0 |
Income (loss) from equity investments, net | 2 | 14 |
Total other income (expense), net | (86) | (72) |
Income (loss) before income taxes | 1,032 | 953 |
Provision for (benefit from) income taxes | 223 | 207 |
Net income (loss) | 809 | 746 |
Net income (loss) attributable to non-controlling interest | 41 | 34 |
Net income (loss) attributable to Diamondback Energy, Inc. | $ 768 | $ 712 |
Earnings (loss) per common share: | ||
Basic (in USD per share) | $ 4.28 | $ 3.88 |
Diluted (in USD per share) | $ 4.28 | $ 3.88 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 178,477 | 181,988 |
Diluted (in shares) | 178,477 | 181,988 |
Oil sales | ||
Revenues: | ||
Revenue | $ 1,867 | $ 1,654 |
Natural gas sales | ||
Revenues: | ||
Revenue | 50 | 69 |
Natural gas liquid sales | ||
Revenues: | ||
Revenue | 184 | 179 |
Purchased oil | ||
Revenues: | ||
Revenue | 116 | 0 |
Costs and expenses: | ||
Cost of goods and services sold | 117 | 0 |
Gathering, processing and transportation | ||
Costs and expenses: | ||
Cost of goods and services sold | $ 77 | $ 68 |
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) | Accumulated Other Comprehensive Income (Loss) | Non-Controlling Interest |
Balance at beginning of period (in shares) at Dec. 31, 2022 | 179,841,000 | |||||
Balance at beginning of period at Dec. 31, 2022 | $ 15,690 | $ 2 | $ 14,213 | $ 801 | $ (7) | $ 681 |
Increase (Decrease) in Stockholders' Equity | ||||||
Unit-based compensation | 1 | 1 | ||||
Distribution equivalent rights payments | (4) | (4) | 0 | |||
Stock-based compensation | 15 | 15 | ||||
Cash paid for tax withholding on vested equity awards (in shares) | (119,000) | |||||
Cash paid for tax withholding on vested equity awards | (18) | (18) | ||||
Repurchased shares for share buyback program (in Shares) | (2,531,000) | |||||
Repurchased shares under buyback program | (332) | (332) | ||||
Repurchased shares under Viper's buyback program | (34) | (34) | ||||
Common units issued for acquisitions (in Shares) | 4,330,000 | |||||
Common units for acquisitions | 633 | 633 | ||||
Distributions to non-controlling interest | (34) | (34) | ||||
Dividend paid | (542) | (542) | ||||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 84,000 | |||||
Change in ownership of consolidated subsidiaries, net | 2 | (9) | 11 | |||
Net income (loss) | 746 | 712 | 34 | |||
Balance at end of period (in shares) at Mar. 31, 2023 | 181,605,000 | |||||
Balance at end of period at Mar. 31, 2023 | $ 16,123 | $ 2 | 14,502 | 967 | (7) | 659 |
Balance at beginning of period (in shares) at Dec. 31, 2023 | 178,723,871 | 178,724,000 | ||||
Balance at beginning of period at Dec. 31, 2023 | $ 17,430 | $ 2 | 14,142 | 2,489 | (8) | 805 |
Increase (Decrease) in Stockholders' Equity | ||||||
Distribution equivalent rights payments | (4) | (4) | ||||
Stock-based compensation | 21 | 21 | ||||
Cash paid for tax withholding on vested equity awards (in shares) | (187,000) | |||||
Cash paid for tax withholding on vested equity awards | (34) | (34) | ||||
Repurchased shares for share buyback program (in Shares) | (279,000) | |||||
Repurchased shares under buyback program | (42) | (42) | ||||
Proceeds from partial sale of investment in Viper Energy, Inc. | 416 | 219 | 197 | |||
Distributions to non-controlling interest | (44) | (44) | ||||
Dividend paid | (548) | (548) | ||||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 82,000 | |||||
Change in ownership of consolidated subsidiaries, net | 15 | (55) | 70 | |||
Net income (loss) | $ 809 | 768 | 41 | |||
Balance at end of period (in shares) at Mar. 31, 2024 | 178,339,978 | 178,340,000 | ||||
Balance at end of period at Mar. 31, 2024 | $ 18,019 | $ 2 | $ 14,251 | $ 2,705 | $ (8) | $ 1,069 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 809 | $ 746 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for (benefit from) deferred income taxes | 52 | 97 |
Depreciation, depletion, amortization and accretion | 469 | 403 |
(Gain) loss on extinguishment of debt | (2) | 0 |
(Gain) loss on derivative instruments, net | 48 | 93 |
Cash received (paid) on settlement of derivative instruments | (4) | 1 |
(Income) loss from equity investment, net | (2) | (14) |
Equity-based compensation expense | 14 | 11 |
Other | 16 | (34) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (95) | (36) |
Income tax receivable | 12 | 95 |
Prepaid expenses and other current assets | 89 | 0 |
Accounts payable and accrued liabilities | (110) | (26) |
Income taxes payable | 70 | 17 |
Revenues and royalties payable | (35) | 60 |
Other | 3 | 12 |
Net cash provided by (used in) operating activities | 1,334 | 1,425 |
Cash flows from investing activities: | ||
Drilling, completions and infrastructure additions to oil and natural gas properties | (605) | (622) |
Additions to midstream assets | (4) | (35) |
Property acquisitions | (153) | (880) |
Proceeds from sale of assets | 12 | 264 |
Other | (1) | (6) |
Net cash provided by (used in) investing activities | (751) | (1,279) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facilities | 90 | 1,696 |
Repayments under credit facilities | (80) | (989) |
Repayment of senior notes | (25) | 0 |
Repurchased shares under buyback program | (42) | (332) |
Repurchased shares/units under Viper's buyback program | 0 | (34) |
Proceeds from partial sale of investment in Viper Energy, Inc. | 451 | 0 |
Dividends paid to stockholders | (548) | (542) |
Dividends/distributions to non-controlling interest | (44) | (34) |
Other | (71) | (22) |
Net cash provided by (used in) financing activities | (269) | (257) |
Net increase (decrease) in cash and cash equivalents | 314 | (111) |
Cash, cash equivalents and restricted cash at beginning of period | 585 | 164 |
Cash, cash equivalents and restricted cash at end of period | $ 899 | $ 53 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
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 primarily in the Permian Basin in West Texas. As of March 31, 2024, the wholly owned subsidiaries of Diamondback include Diamondback E&P LLC (“Diamondback E&P”), a Delaware limited liability company, Rattler Midstream GP LLC, a Delaware limited liability company (“Rattler’s GP”), Rattler Midstream LP, a Delaware limited partnership (“Rattler”) and QEP Resources, Inc. (“QEP”), a Delaware corporation. Viper Conversion to Corporate Structure On November 13, 2023, the Company’s publicly traded subsidiary, Viper Energy Partners LP, completed its conversion from a Delaware limited partnership into a Delaware corporation, Viper Energy, Inc. (“Viper”) (the “Viper Conversion”). At the time of the Viper Conversion, each of the Company’s common units representing limited partnership interest in Viper Energy Partners, LP was converted, on a unit-for-unit basis, into one issued and outstanding, fully paid and nonassessable share of Class A common stock of Viper Energy, Inc., and each of the Company’s Class B units representing a limited partnership interest in Viper Energy Partners, LP was converted, on a unit-for-unit basis, into one issued and outstanding, fully paid and nonassessable share of Class B common stock of Viper. At the time of the Conversion, Viper was a “controlled company” under the Nasdaq rules as the Company owned more than 50% of the voting power of Viper’s common stock. 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. The Company has one reportable segment, the upstream segment. On October 31, 2023, pursuant to a common unit purchase and sale agreement entered into on September 4, 2023, Viper issued approximately 7.22 million of its common units, which were converted to shares of Viper Class A common stock at the time of the Viper Conversion, to the Company at a price of $27.72 per unit for total consideration to Viper of approximately $200 million. On March 5, 2024, the Company exercised certain of its demand rights, pursuant to a registration rights agreement initially entered into on June 23, 2014, as amended and restated on May 9, 2018 and November 10, 2023, and on March 8, 2024, completed a public offering of approximately 13.23 million of Viper’s Class A common stock at a price of $35.00 per share for proceeds, net of underwriters’ discount, of approximately $451 million. After this offering and through March 31, 2024, the Company owned approximately 48% of Viper’s combined outstanding Class A common stock and Class B common stock, resulting in Viper no longer being a controlled company under the Nasdaq rules. However, the Company determined that it still controls the activities of Viper in accordance with the guidance for variable interest entities in Accounting Standards Codification Topic 810— “Consolidation” (“ASC 810”) and therefore continues to consolidate Viper in the Company’s financial statements at March 31, 2024. See further discussion of the Company’s determination that Viper is a variable interest entity (“VIE”) in Note 2— Summary of Significant Accounting Policies . The results of operations attributable to the non-controlling interest in Viper 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, 2023, which contains a summary of the Company’s significant accounting policies and other disclosures. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2024 | |
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 condensed 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 condensed 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 condensed 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. For instance, the war in Ukraine and the Israel-Hamas war, rising interest rates, global supply chain disruptions, recent measures to combat persistent inflation and instability in the financial sector have contributed to recent economic and pricing volatility. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of these events and changing market conditions. Such circumstances generally increase 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, fair value estimates of derivative instruments, the fair value determination of acquired assets and liabilities assumed and estimates of income taxes, including deferred tax valuation allowances. Variable Interest Entity Viper is a publicly traded corporation formed by the Company in 2014 to provide an attractive return to its shareholders (the largest of which is Diamondback) by focusing on business results, maximizing dividends through organic growth and pursuing accretive growth opportunities through acquisitions of mineral, royalty, overriding royalty, net profits and similar interests from the Company and from third parties. Viper has no employees and the Company provides management, operating and administrative services to Viper under a services and secondment agreement, including the services of the executive officers and other employees. In connection with the reduction of the Company’s ownership percentage in Viper to below 50% in March 2024, the Company re-evaluated whether Viper should continue to be consolidated in the Company’s financial statements. Viper meets the definition of a VIE under ASC 810 and the Company continues to be the primary beneficiary of the VIE through its ability, via existing contractual agreements, to direct the activities that most significantly affect the economic performance of Viper. The Company also has the obligation to absorb losses and the right to receive benefits that could be significant to Viper. As such, the Company will continue to consolidate the activity of Viper. Viper maintains its own capital structure that is separate from the Company. The Company is not under any obligation to provide additional financial support or investment to Viper. Viper’s assets cannot be used by the Company for general corporate purposes, and the creditors of Viper’s liabilities do not have recourse to the Company’s assets. The assets and liabilities of Viper are included in the Company’s condensed consolidated balance sheets and disclosed parenthetically, if material. Recent Accounting Pronouncements Recently Adopted Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842) – Common Control Arrangements.” This update (i) requires all lessees that are a party to a lease between entities under common control in which there are leasehold improvements to record amortization over the useful life of the leasehold improvements to the common control group, regardless of the lease term, and (ii) requires leasehold improvements to be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The Company adopted this update effective January 1, 2024 by electing to apply the guidance in ASU 2023-01 prospectively to all new leasehold improvements recognized on or after January 1, 2024. As such, the adoption of this update did not have a material impact on the Company’s financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments are effective for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures,” which requires that certain information in a reporting entity’s tax rate reconciliation be disaggregated and provides additional requirements regarding income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, previously disclosed, or not material upon adoption. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from Contracts with Customers The following tables present the Company’s revenue from contracts with customers: Three Months Ended March 31, 2024 2023 (In millions) Oil sales $ 1,867 $ 1,654 Natural gas sales 50 69 Natural gas liquid sales 184 179 Total oil, natural gas and natural gas liquid revenues 2,101 1,902 Sales of purchased oil 116 — Midstream and marketing services 8 21 Total revenue from contracts with customers $ 2,225 $ 1,923 The following tables present the Company’s revenue from oil, natural gas, and natural gas liquids disaggregated by basin: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 1,503 $ 360 $ 4 $ 1,867 $ 1,295 $ 358 $ 1 $ 1,654 Natural gas sales 34 15 1 50 48 21 — 69 Natural gas liquid sales 137 47 — 184 132 47 — 179 Total $ 1,674 $ 422 $ 5 $ 2,101 $ 1,475 $ 426 $ 1 $ 1,902 |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Mar. 31, 2024 | |
Acquisitions And Divestitures [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES 2024 Activity See Note 16— Endeavor Energy Resources, LP Acquisition for details on the previously announced plan of merger. The Company had no other material acquisition or divestiture activity during the three months ended March 31, 2024. 2023 Activity Acquisitions GRP Acquisition On November 1, 2023, Viper and Viper LLC acquired certain mineral and royalty interests from Royalty Asset Holdings, LP, Royalty Asset Holdings II, LP and Saxum Asset Holdings, LP and affiliates of Warwick Capital Partners and GRP Energy Capital (collectively, “GRP”), pursuant to a definitive purchase and sale agreement for approximately 9.02 million Viper common units and $750 million in cash, including transactions costs and subject to customary post-closing adjustments (the “GRP Acquisition”). The mineral and royalty interests acquired in the GRP Acquisition represent 4,600 net royalty acres in the Permian Basin, plus an additional 2,700 net royalty acres in other major basins. The cash consideration for the GRP Acquisition was funded through a combination of cash on hand and held in escrow, borrowings under the Viper credit agreement, proceeds from Viper’s offering of $400 million in aggregate principal amount of its 7.375% Senior Notes due in 2031 and proceeds from the $200 million common unit issuance to the Company. Lario Acquisition On January 31, 2023, the Company closed on its acquisition of all leasehold interests and related assets of Lario Permian, LLC, a wholly owned subsidiary of Lario Oil and Gas Company, and certain associated sellers (collectively “Lario”). The acquisition included approximately 25,000 gross (16,000 net) acres in the Midland Basin and certain related oil and gas assets (the “Lario Acquisition”), in exchange for 4.33 million shares of the Company’s common stock and $814 million in cash, including certain customary post-closing adjustments. Approximately $113 million of the cash consideration was deposited in an indemnity holdback escrow account at closing to be distributed upon satisfactory settlement of any potential title defects on the acquired properties. As of March 31, 2024, the Company has released the full amount of the indemnity holdback to Lario. The cash portion of the consideration for the Lario Acquisition was funded through a combination of cash on hand, a portion of the net proceeds from the Company’s offering of 6.250% Senior Notes due 2053 and borrowings under the Company’s revolving credit facility. The following table presents the acquisition consideration paid in the Lario Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 4,330 Closing price per share of Diamondback common stock on the closing date $ 146.12 Fair value of Diamondback common stock issued $ 633 Cash consideration 814 Total consideration (including fair value of Diamondback common stock issued) $ 1,447 Purchase Price Allocation The Lario 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 Lario Acquisition to the identifiable assets acquired and the liabilities assumed based on the fair values at the acquisition date. The purchase price allocation was completed in December 2023. The following table sets forth the Company’s purchase price allocation (in millions): Total consideration $ 1,447 Fair value of liabilities assumed: Other long-term liabilities 37 Fair value of assets acquired: Oil and natural gas properties 1,460 Inventories 2 Other property, equipment and land 22 Amount attributable to assets acquired 1,484 Net assets acquired and liabilities assumed $ 1,447 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, vehicles and a field office were 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 and were included in the Company’s condensed consolidated balance sheets under the caption “Other property, equipment and land.” 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 in the fair value hierarchy. With the completion of the Lario Acquisition, the Company acquired proved properties of $924 million and unproved properties of $536 million. Divestitures Divestiture of Deep Blue Water Assets and Deep Blue Formation On September 1, 2023, the Company closed on a joint venture agreement with Five Point Energy LLC (“Five Point”) to form Deep Blue Midland Basin LLC (“Deep Blue”). At closing, the Company contributed certain treated water, fresh water and saltwater disposal assets (the “Deep Blue Water Assets”) with a net carrying value of $692 million and Five Point contributed $251 million in cash, subject to certain customary post-closing adjustments, to Deep Blue. In exchange for these contributions, Deep Blue issued the Company a one-time cash distribution of approximately $516 million and issued to the Company a 30% equity ownership and voting interest, and issued to Five Point a 70% equity ownership and voting interest. Under a separate agreement with Deep Blue, the Company is continuing to operate the Deep Blue Water Assets on a short-term basis before transferring operations to Deep Blue, which is anticipated to happen in the second quarter of 2024. Contingent upon the successful transfer of operations, the Company will receive approximately $47 million in cash to be contributed by Five Point in 2024. This contingent consideration does not meet the criteria to be accounted for as a derivative. As such, at March 31, 2024, approximately $43 million has been recorded as a receivable in the condensed consolidated balance sheet for the fair value of the additional consideration to be received when operation of the Deep Blue Water Assets transfers to Deep Blue. The Company recorded its 30% equity interest in Deep Blue at fair value based on the cash consideration contributed by Five Point to Deep Blue in exchange for its 70% equity ownership and the estimated fair value of contingent consideration to be contributed by Five Point in future years. The Company’s equity method investment in Deep Blue had an initial fair value of $126 million. The Company’s proportionate share of the income or loss from Deep Blue will be recognized on a two-month lag. The Company has recognized an aggregate $13 million loss on the sale of its Deep Blue Water Assets, of which approximately $1 million was recognized during the three months ended March 31, 2024. The loss on the sale of Deep Blue Water Assets is included in the caption “Other operating expenses” in the condensed consolidated statement of operations. The majority of measurements utilized to determine the fair value amounts reported above relating to this transaction are based on inputs that are not observable in the market and are therefore considered Level 3 inputs in the fair value hierarchy. The Company and Five Point currently anticipate collectively contributing $500 million in follow-on capital to fund future growth projects and acquisitions. As part of the transaction, the Company also entered into a 15-year dedication with Deep Blue for its produced water and supply water within a 12-county area of mutual interest in the Midland Basin. See Note 7— Related Party Transactions for further discussion of transactions with Deep Blue. OMOG Divestiture On July 28, 2023, the Company divested its 43% limited liability company interest in OMOG JV LLC (“OMOG”) for $225 million in cash received at closing. This divestiture resulted in a gain on the sale of equity method investments of approximately $35 million. The Company used its net proceeds from this transaction for debt reduction and other general corporate purposes. Non-Core Assets Divestiture On April 28, 2023, the Company divested non-core assets to an unrelated third-party buyer consisting of approximately 19,000 net acres in Glasscock County, TX for net cash proceeds at closing of $269 million, including customary post-closing adjustments. The Company used its net proceeds from this transaction for debt reduction and other general corporate purposes. On March 31, 2023, the Company divested non-core assets consisting of approximately 4,900 net acres in Ward and Winkler counties to unrelated third-party buyers for $72 million in net cash proceeds, including customary post-closing adjustments. The divestitures of non-core oil and gas assets 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. Gray Oak Divestiture |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes the following as of the dates indicated: March 31, December 31, 2024 2023 (In millions) Oil and natural gas properties: Subject to depletion $ 34,785 $ 33,771 Not subject to depletion 8,455 8,659 Gross oil and natural gas properties 43,240 42,430 Accumulated depletion (8,785) (8,333) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 26,501 26,143 Other property, equipment and land 675 673 Accumulated depreciation, amortization, accretion and impairment (152) (142) Total property and equipment, net $ 27,024 $ 26,674 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 months ended March 31, 2024 or 2023 based on the results of the respective quarterly ceiling tests. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, 2024 2023 (In millions) Asset retirement obligations, beginning of period $ 245 $ 347 Additional liabilities incurred 1 7 Liabilities acquired 1 4 Liabilities settled and divested (7) (18) Accretion expense 3 4 Revisions in estimated liabilities 31 (32) Asset retirement obligations, end of period 274 312 Less current portion (1) 8 6 Asset retirement obligations - long-term $ 266 $ 306 (1) The current portion of the asset retirement obligation is included in the caption “Other accrued liabilities” in the Company’s condensed consolidated balance sheets. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Deep Blue In addition to the Deep Blue transaction discussed in Note 4— Acquisitions and Divestitures , the Company has other significant related party transactions with Deep Blue which include (i) contingent consideration and other post-close adjustments receivable from Deep Blue, (ii) accrued capital expenditures and other accrued payables related to a commitment to fund certain capital expenditures on projects that were in process at the time of the Deep Blue transaction, and (iii) lease operating expenses and capitalized expenses related to fees paid to Deep Blue under a 15-year dedication for its produced water and supply water within a 12-county area of mutual interest in the Midland Basin. The following table presents the significant related party balances included in the condensed consolidated balance sheet at March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 (In millions) Current assets - Accounts receivable $ 65 $ 61 Current liabilities - Accrued capital expenditures $ (32) $ (21) Current liabilities - Other accrued liabilities $ (15) $ (18) During the three months ended March 31, 2024, the Company recorded approximately $31 million for water services provided by Deep Blue during the completion phase of wells. These costs were capitalized and are included in the caption “Oil and natural gas properties” on the condensed consolidated balance sheet. The following table presents the significant related party transactions included in the condensed consolidated statement of operations for the three months ended March 31, 2024 and 2023: Three Months Ended 2024 2023 (In millions) Lease operating expenses $ 26 $ — |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2024 2023 (In millions) 3.250% Senior Notes due 2026 $ 750 $ 750 5.625% Senior Notes due 2026 14 14 7.125% Medium-term Notes, Series B, due 2028 73 73 3.500% Senior Notes due 2029 915 921 3.125% Senior Notes due 2031 767 789 6.250% Senior Notes due 2033 1,100 1,100 4.400% Senior Notes due 2051 650 650 4.250% Senior Notes due 2052 750 750 6.250% Senior Notes due 2053 650 650 Unamortized debt issuance costs (45) (46) Unamortized discount costs (21) (23) Unamortized premium costs 4 4 Unamortized basis adjustment of dedesignated interest rate swap agreements (1) (81) (84) Viper revolving credit facility 273 263 Viper 5.375% Senior Notes due 2027 430 430 Viper 7.375% Senior Notes due 2031 400 400 Total debt, net 6,629 6,641 Less: current maturities of long-term debt — — Total long-term debt $ 6,629 $ 6,641 (1) 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. This basis adjustment is being amortized to interest expense over the remaining term of the 2029 Notes utilizing the effective interest method. References in this section to the Company shall mean Diamondback Energy, Inc. and Diamondback E&P, collectively, unless otherwise specified. Credit Agreement On March 6, 2024, Diamondback E&P, as borrower, and Diamondback Energy, Inc., as parent guarantor, entered into a fourteenth amendment to the existing credit agreement, which upon consummation of the pending Endeavor Acquisition (as defined in Note 16— Endeavor Energy Resources, LP Acquisition ) will among other things, (i) increase the maximum credit amount from $1.6 billion to $2.5 billion, (ii) decrease the swingline commitments amount from $100 million to $50 million and (iii) make certain amendments to the representations and warranties, affirmative and negative covenants, and events of default. As of March 31, 2024, the Company had no outstanding borrowings under the credit agreement and $1.6 billion available for future borrowings. During the three months ended March 31, 2023, the weighted average interest rate on borrowings under the credit agreement was 6.02%. The credit agreement matures on June 2, 2028. As of March 31, 2024, the Company was in compliance with all financial maintenance covenants under the credit agreement. Term Loan Agreement In connection with the pending Endeavor Acquisition (as defined in Note 16— Endeavor Energy Resources, LP Acquisition ), Diamondback Energy, Inc., as guarantor, entered into a Term Loan Credit Agreement with Diamondback E&P LLC, as borrower, and Citibank, N.A., as administrative agent (the “Term Loan Agreement”) on February 29, 2024. The Term Loan Agreement provides the Company with the ability to borrow up to $1.5 billion, which is comprised of $1 billion of Tranche A Loans and $500 million of Tranche B Loans (collectively, the “Term Loans”) on an unsecured basis to pay a portion of the cash consideration for the Endeavor Acquisition (as defined in Note 16— Endeavor Energy Resources, LP Acquisition ), repay certain debt of Endeavor or pay fees, costs and expenses related to the acquisition. As of March 31, 2024, the Company had no outstanding borrowings under the Term Loan Agreement and $1.5 billion available for future borrowings. The availability of the Term Loans, which have not yet been funded, is subject to the satisfaction of certain limited customary acquisition-financing conditions under the Term Loan Agreement. The Term Loans will be made in a single borrowing on the date of closing of the Endeavor Acquisition (as defined in Note 16— Endeavor Energy Resources, LP Acquisition ) (the “Closing Date”) and will mature and be payable in full, in the case of the Tranche A Loans, on the first anniversary of the Closing Date and, in the case of the Tranche B Loans, on the second anniversary of the Closing Date. Outstanding borrowings under the Term Loan Agreement bear interest at a per annum rate elected by the Company 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% and 0.250% to 1.125% for Tranche A and Tranche B, respectively, per annum in the case of the alternate base rate, and from 1.125% to 2.000% and 1.250% to 2.125% for Tranche A and Tranche B, respectively, per annum in the case of Adjusted Term SOFR, in each case based on the pricing level, and (ii) the commitment fee is equal to 0.125% per annum on the aggregate principal amount of the commitments. The pricing level depends on the Company’s long-term senior unsecured debt ratings. Bridge Facility On February 11, 2024, in connection with the pending Endeavor Acquisition (as defined in Note 16— Endeavor Energy Resources, LP Acquisition ), Diamondback Energy, Inc., as guarantor, obtained commitments of $8.0 billion to a 364-day senior unsecured term loan facility with Diamondback E&P LLC, as borrower, and Citigroup Global Markets Inc., as administrative agent (the “Bridge Facility”). The Bridge Facility was reduced on a dollar-for-dollar basis by the amount of the Term Loan Agreement to $6.5 billion on February 29, 2024. The Bridge Facility will be further reduced on a dollar-for-dollar basis by the April 2024 Notes as defined and discussed further in Note 17— Subsequent Events . The proceeds from the Bridge Facility may be used to repay certain debt of Endeavor and pay fees, costs and expenses related to the pending Endeavor Acquisition. As of March 31, 2024, the Company had no outstanding borrowings under the Bridge Facility. Outstanding borrowings under the Bridge Facility bear interest at a per annum rate elected by the Company 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. The applicable margin ranges from (i) 1.125% to 2.000% from the Closing Date through 89 days following the Closing Date, (ii) 1.375% to 2.250% from the 90th day following the Closing Date through the 179th day following the Closing Date, (iii) 1.625% to 2.500% from the 180th day following the Closing Date through the 269th day following the Closing Date, and (iv) 1.875% to 2.750% for the 270th day following the Closing Date through the expiration of the Bridge Facility, in each case based on the pricing level, and (ii) the commitment fee is equal to 0.125% per annum on the aggregate principal amount of the commitments. The pricing level depends on the Company’s long-term senior unsecured debt ratings. Retirement of Notes In the first quarter of 2024, the Company opportunistically repurchased principal amounts of $22 million of its 3.125% Senior Notes due 2031 and $6 million of its 3.500% Senior Notes due 2029 for total cash consideration, including accrued interest paid of $25 million. These repurchases resulted in an immaterial gain on extinguishment of debt during the three months ended March 31, 2024. Viper’s Credit Agreement Viper LLC’s credit agreement, as amended to date, provides for a revolving credit facility in the maximum credit amount of $2.0 billion with a borrowing base of $1.3 billion based on Viper LLC’s oil and natural gas reserves and other factors. As of March 31, 2024, the elected commitment amount was $850 million, with $273 million of outstanding borrowings and $577 million available for future borrowings. During the three months ended March 31, 2024 and 2023, the weighted average interest rates on borrowings under the Viper credit agreement were 7.65% and 6.10%, respectively. As of March 31, 2024, Viper LLC was in compliance with all financial maintenance covenants under the Viper credit agreement. The revolving credit facility will mature on September 22, 2028. |
STOCKHOLDERS_ EQUITY AND EARNIN
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE | STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE Stock Repurchase Program The Company’s board of directors has approved a common stock repurchase program to acquire up to $4.0 billion of the Company’s outstanding common stock, excluding excise tax. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. During the three months ended March 31, 2024 and 2023, the Company repurchased, excluding excise tax, approximately $42 million and $332 million of common stock under this repurchase program, respectively. As of March 31, 2024, approximately $1.6 billion remained available for use to repurchase shares under the Company’s common stock repurchase program, excluding excise tax. Change in Ownership of Consolidated Subsidiaries Non-controlling interests in the accompanying condensed consolidated financial statements represent minority interest ownership in Viper and are presented as a component of equity. When the Company’s relative ownership interests in Viper 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 March 31, 2024 2023 (In millions) Net income (loss) attributable to the Company $ 768 $ 712 Change in ownership of consolidated subsidiaries (55) (9) Change from net income (loss) attributable to the Company's stockholders and transfers with non-controlling interest $ 713 $ 703 Dividends The following table presents dividends and distribution equivalent rights paid on the Company’s common stock during the respective periods : Base Variable Total Total ($ per share) (In millions) 2024 First quarter $ 0.90 $ 2.18 $ 3.08 $ 552 2023 First quarter $ 0.80 $ 2.15 $ 2.95 $ 546 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 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 March 31, 2024 2023 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common shares $ 768 $ 712 Less: distributed and undistributed earnings allocated to participating securities (1) 5 5 Net income (loss) attributable to common stockholders $ 763 $ 707 Weighted average common shares outstanding: Basic weighted average common shares outstanding 178,477 181,988 Effect of dilutive securities: Weighted-average potential common shares issuable — — Diluted weighted average common shares outstanding 178,477 181,988 Basic net income (loss) attributable to common shares $ 4.28 $ 3.88 Diluted net income (loss) attributable to common shares $ 4.28 $ 3.88 (1) Unvested restricted stock awards and performance 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 | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Under the Equity Plan approved by the board of directors, the Company is authorized to issue up to 11.8 million shares of incentive and non-statutory stock options, restricted stock awards and restricted stock units, performance awards and stock appreciation rights to eligible employees. The Company currently has outstanding restricted stock units and performance-based restricted stock units under the Equity Plan. At March 31, 2024, approximately 4.7 million shares of common stock remain available for future grants under the Equity Plan. The Company classifies its restricted stock units and performance-based restricted stock units 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. In addition to the Equity Plan, Viper maintains its own long-term incentive plan, which is not significant to the Company. The following table presents the financial statement impacts of equity compensation plans and related costs on the Company’s financial statements: Three Months Ended March 31, 2024 2023 (In millions) General and administrative expenses $ 14 $ 11 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 7 $ 5 Restricted Stock Units The following table presents the Company’s restricted stock unit activity during the three months ended March 31, 2024 under the Equity Plan: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2023 751,196 $ 132.29 Granted 308,923 $ 180.39 Vested (82,003) $ 152.41 Forfeited (7,506) $ 139.36 Unvested at March 31, 2024 970,610 $ 145.85 The aggregate grant date fair value of restricted stock units that vested during the three months ended March 31, 2024 was $12 million. As of March 31, 2024, the Company’s unrecognized compensation cost related to unvested restricted stock units was $115 million, which is expected to be recognized over a weighted-average period of 2.2 years. Performance Based Restricted Stock Units The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the three months ended March 31, 2024: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2023 278,056 $ 234.80 Granted 110,989 $ 214.14 Unvested at March 31, 2024 (1) 389,045 $ 228.91 (1) A maximum of 923,176 units could be awarded based upon the Company’s final TSR ranking. As of March 31, 2024, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $52 million, which is expected to be recognized over a weighted-average period of 2.0 years. In March 2024, eligible employees received performance restricted stock unit awards totaling 110,989 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 three-year performance period of January 1, 2024 to December 31, 2026 and cliff vest at December 31, 2026 subject to continued employment. The initial payout of the March 2024 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 periods presented: March 2024 Grant-date fair value $ 341.81 Risk-free rate 4.38 % Company volatility 41.40 % |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In millions, except for tax rate) Provision for (benefit from) income taxes $ 223 $ 207 Effective income tax rate 21.6 % 21.7 % Total income tax expense from continuing operations for the three months ended March 31, 2024 and 2023 differed from amounts computed by applying the U.S. 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. As of March 31, 2024, Viper maintained a partial 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. In connection with the public offering of Viper’s Class A common stock and resulting change of ownership in Viper during the three months ended March 31, 2024, the Company recorded a $36 million increase in tax payable and a $3 million increase in deferred tax liability through paid in capital and an $18 million increase in the deferred tax asset, net of valuation allowance, through non-controlling interest on the Company’s condensed consolidated balance sheet. Based on application of the Inflation Reduction Act of 2022 guidance, the Company’s income tax expense for the three months ended March 31, 2024 was not impacted by the corporate alternative minimum tax. The Company’s excise tax during the three months ended March 31, 2024 was immaterial and was recognized as part of the cost basis of the units repurchased. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES At March 31, 2024, 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 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, collateral is not required from either the counterparties or the Company on its outstanding commodity derivative contracts. As of March 31, 2024, 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 Apr. - Jun. 2024 Costless Collar 6,000 WTI Cushing $— $65.00 $95.55 Apr. - Dec. 2024 Basis Swap (1) 12,000 Argus WTI Midland $1.19 $— $— Apr. - Dec. 2024 Roll Swap 40,000 WTI Cushing $0.82 $— $— Jul. - Dec. 2024 Costless Collar 4,000 WTI Cushing $— $55.00 $93.66 NATURAL GAS Apr. - Dec. 2024 Costless Collar 290,000 Henry Hub $— $2.83 $7.52 Apr. - Dec. 2024 Basis Swap (1) 380,000 Waha Hub $(1.18) $— $— Jan. - Dec. 2025 Basis Swap (1) 310,000 Waha Hub $(0.69) $— $— Jan. - Dec. 2025 Costless Collar 150,000 Henry Hub $— $2.50 $5.31 (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 Deferred Premium OIL Apr. - Jun. 2024 Put 110,000 Brent $55.45 $1.49 Apr. - Jun. 2024 Put 32,000 Argus WTI Houston $55.63 $1.56 Apr. - Jun. 2024 Put 39,000 WTI Cushing $59.23 $1.49 Jul. - Sep. 2024 Put 80,000 Brent $55.25 $1.55 Jul. - Sep. 2024 Put 28,000 Argus WTI Houston $56.07 $1.58 Jul. - Sep. 2024 Put 51,000 WTI Cushing $57.65 $1.54 Oct. - Dec. 2024 Put 44,000 Brent $55.23 $1.61 Oct. - Dec. 2024 Put 14,000 Argus WTI Houston $57.14 $1.66 Oct. - Dec. 2024 Put 40,000 WTI Cushing $57.00 $1.64 Jan. - Mar. 2025 Put 2,000 Argus WTI Houston $60.00 $1.60 Jan. - Mar. 2025 Put 4,000 WTI Cushing $60.00 $1.73 Interest Rate Swaps The Company has two receive-fixed, pay variable interest rate swap agreements for notional amounts of $600 million which are considered economic hedges of the Company’s $1.2 billion 3.50% fixed rate senior notes due 2029 (the “2029 Notes”). The Company receives a fixed 3.50% rate of interest on these swaps and pays the variable rate of SOFR plus 2.1865%. The interest rate swaps are not treated as hedges for accounting purposes and, as a result, changes in fair value are recorded in earnings under the caption “Gain (loss) on derivative instruments, net” in the condensed consolidated statements of operations. The interest rate swaps were designated as fair value hedges at inception, but the Company subsequently elected to discontinue hedge accounting. The cumulative fair value basis adjustment recorded at the time of dedesignation is being amortized to interest expense over the remaining term of the 2029 Notes utilizing the effective interest method. See Note 8— Debt for further details. 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 13— 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 March 31, 2024 2023 (In millions) Gain (loss) on derivative instruments, net: Commodity contracts $ (16) $ (109) Interest rate swaps (32) 16 Total $ (48) $ (93) Net cash received (paid) on settlements: Commodity contracts $ (4) $ 1 Total $ (4) $ 1 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis As discussed in Note 13—Fair Value Measurements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, certain financial instruments of the Company are reported at fair value on the Company’s condensed consolidated balance sheets . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. The Company has an immaterial investment that is reported at fair value using observable, quoted stock prices and is included in “Other assets” on the Company’s condensed consolidated balance sheets at March 31, 2024 and December 31, 2023. The following table provides the fair value of financial instruments that are recorded at fair value in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 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 $ — $ 59 $ — $ 59 $ (52) $ 7 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 16 $ — $ 16 $ (9) $ 7 Non-current assets- Other assets: Investment $ 8 $ — $ — $ 8 $ — $ 8 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 103 $ — $ 103 $ (52) $ 51 Interest rate swaps $ — $ 51 $ — $ 51 $ — $ 51 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (9) $ — Interest rate swaps $ — $ 144 $ — $ 144 $ — $ 144 As of December 31, 2023 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 $ — $ 88 $ — $ 88 $ (71) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 8 $ — $ 8 $ (7) $ 1 Non-current assets- Other assets: Investment $ 5 $ — $ — $ 5 $ — $ 5 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 111 $ — $ 111 $ (71) $ 40 Interest rate swaps $ — $ 46 $ — $ 46 $ — $ 46 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (7) $ 5 Interest rate swaps $ — $ 117 $ — $ 117 $ — $ 117 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: March 31, 2024 December 31, 2023 Carrying Carrying Value Fair Value Value Fair Value (In millions) Debt $ 6,629 $ 6,474 $ 6,641 $ 6,507 The fair values of the Company’s credit agreement and the Viper credit agreement approximate their carrying values based on borrowing rates available to the Company for bank loans with similar terms and maturities and are 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, equity method investments, asset retirement obligations 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 |
SUPPLEMENTAL INFORMATION TO STA
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information Disclosure [Abstract] | |
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS | SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2024 2023 (In millions) Supplemental disclosure of non-cash transactions: Accrued capital expenditures included in accounts payable and accrued expenses $ 674 $ 609 Common stock issued for acquisitions $ — $ 633 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The 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, employment claims, claims alleging violations of antitrust laws, 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 accrued liabilities 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. Environmental Matters The United States Department of the Interior, Bureau of Safety and Environmental Enforcement, ordered several oil and gas operators, including a corporate predecessor of Energen Corporation, to perform decommissioning and reclamation activities related to a Louisiana offshore oil and gas production platform and related facilities. In response to the insolvency of the operator of record, the government ordered the former operators and/or alleged former lease record title owners to decommission the platform and related facilities. The Company has agreed to an arrangement with other operators to contribute to a trust to fund the decommissioning costs, however, the Company’s portion of such costs are not expected to be material. Several coastal Louisiana parishes and the State of Louisiana have filed numerous lawsuits under Louisiana’s State and Local Coastal Resources Management Act (“SLCRMA”) against numerous oil and gas producers seeking damages for coastal erosion in or near oil fields located within Louisiana’s coastal zone. The Company is a defendant in three of these cases, and Plaintiffs’ claims against the Company relate to the prior operations of entities previously acquired by Energen Corporation. The Company has exercised contractual indemnification rights where applicable. Plaintiffs’ SLCRMA theories are unprecedented, and there remains significant uncertainty about the claims (both as to scope and damages). Although we cannot predict the ultimate outcome of these matters, the Company believes the claims lack merit and intends to continue vigorously defending these lawsuits. |
ENDEAVOR ENERGY RESOURCES, LP A
ENDEAVOR ENERGY RESOURCES, LP ACQUISITION | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
ENDEAVOR ENERGY RESOURCES, LP ACQUISITION | ENDEAVOR ENERGY RESOURCES, LP ACQUISITION On February 11, 2024, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), by and among the Company, Eclipse Merger Sub I, LLC, Eclipse Merger Sub II, LLC, Endeavor Manager, LLC (solely or purposes of certain sections set forth therein), and Endeavor Parent, LLC (“Endeavor”), to acquire Endeavor (the “Endeavor Acquisition”) for consideration consisting of a base cash amount of $8.0 billion, subject to adjustments under the terms of the Merger Agreement, and approximately 117.27 million shares of the Company’s common stock. The Endeavor Acquisition is expected to close in the fourth quarter of 2024, subject to the satisfaction or waiver of certain customary closing conditions, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. In a special meeting held on April 26, 2024, the Company’s stockholders approved the issuance of the Company’s common stock to Endeavor as consideration for the Endeavor Acquisition. As a result of the Endeavor Acquisition, equityholders of Endeavor are expected to hold, at closing, approximately 39.5% of the outstanding Company common stock. If the Merger Agreement is terminated under certain circumstances, the Company may be required to pay a termination fee of $1.4 billion, including if the proposed Merger Agreement is terminated because the Company’s board of directors has changed its recommendation in respect of the stockholder proposal relating to approval of the issuance of the Company common stock in the Endeavor Acquisition. Additionally, if the Merger Agreement is terminated because the Company’s stockholders fail to approve the issuance of the Company’s common stock in the Endeavor Acquisition and the termination fee is not payable in connection with such termination, the Company is required to reimburse Endeavor for its transaction related expenses, subject to a cap of $260 million. The payment of this reimbursement will reduce any termination fee that is subsequently payable by the Company. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS First Quarter 2024 Dividend Declaration On April 25, 2024, the board of directors of the Company declared a cash dividend for the first quarter of 2024 of $1.97 per share of common stock, payable on May 22, 2024 to its stockholders of record at the close of business on May 15, 2024. The dividend consists of a base quarterly dividend of $0.90 per share of common stock and a variable quarterly dividend of $1.07 per share of common stock. Future base and variable dividends are at the discretion of the board of directors of the Company. Notes Offering On April 18, 2024, the Company issued an aggregate of $5.5 billion in senior notes, consisting of (i) $850 million aggregate principal amount of 5.200% Senior Notes due April 18, 2027 (the “2027 Notes”), (ii) $850 million aggregate principal amount of 5.150% Senior Notes due January 30, 2030 (the “2030 Notes”), (iii) $1.3 billion aggregate principal amount of 5.400% Senior Notes due April 18, 2034 (the “2034 Notes”), (iv) $1.5 billion aggregate principal amount of 5.750% Senior Notes due April 18, 2054 (the “2054 Notes”), and (v) $1.0 billion aggregate principal amount of 5.900% Senior Notes due April 18, 2064 (the “2064 Notes” and together with the 2027 Notes, the 2030 Notes the 2034 Notes and the 2054 Notes, each a “series of the April 2024 Notes” and collectively, the “April 2024 Notes”). The Company received net proceeds of $5.5 billion, including discounts and underwriter fees. The Company intends to use the net proceeds to fund a portion of the cash consideration for the pending Endeavor Acquisition. Interest on the 2030 Notes is payable semi-annually on January 30 and July 30 of each year, beginning on July 30, 2024. Interest on each other series of notes will be payable semi-annually on April 18 and October 18 of each year, beginning on October 18, 2024. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION As of March 31, 2024, the Company has one reportable segment, 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. Other operations are included in the “All Other” category in the table below. The sources of the revenue included in the “All Other” category include midstream gathering, compression, water handling, disposal and treatment operations which are primarily derived from intersegment transactions for services provided to the upstream segment. The segments comprise the structure used by the Company’s Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. The following tables summarize the results of the Company’s operating segments during the periods presented: Upstream All Other Eliminations Total (In millions) Three Months Ended March 31, 2024: Third-party revenues $ 2,218 $ 9 $ — $ 2,227 Intersegment revenues — 37 (37) — Total revenues $ 2,218 $ 46 $ (37) $ 2,227 Depreciation, depletion, amortization and accretion $ 463 $ 6 $ — $ 469 Income (loss) from operations $ 1,090 $ 21 $ 7 $ 1,118 Interest expense, net $ (46) $ — $ — $ (46) Other income (expense) $ (38) $ — $ (4) $ (42) Income (loss) from equity investments $ — $ 2 $ — $ 2 Provision for (benefit from) income taxes $ 221 $ 2 $ — $ 223 Net income (loss) attributable to non-controlling interest $ 41 $ — $ — $ 41 Net income (loss) attributable to Diamondback Energy, Inc. $ 744 $ 21 $ 3 $ 768 As of March 31, 2024: Total assets $ 29,059 $ 1,235 $ (604) $ 29,690 Upstream All Other Eliminations Total (In millions) Three Months Ended March 31, 2023: Third-party revenues $ 1,904 $ 21 $ — $ 1,925 Intersegment revenues — 99 (99) — Total revenues $ 1,904 $ 120 $ (99) $ 1,925 Depreciation, depletion, amortization and accretion $ 388 $ 15 $ — $ 403 Income (loss) from operations $ 1,002 $ 45 $ (22) $ 1,025 Interest expense, net $ (46) $ — $ — $ (46) Other income (expense) $ (93) $ 53 $ — $ (40) Income (loss) from equity investments $ — $ 14 $ — $ 14 Provision for (benefit from) income taxes $ 203 $ 4 $ — $ 207 Net income (loss) attributable to non-controlling interest $ 34 $ — $ — $ 34 Net income (loss) attributable to Diamondback Energy, Inc. $ 626 $ 108 $ (22) $ 712 As of December 31, 2023: Total assets $ 28,362 $ 1,242 $ (603) $ 29,001 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income (loss) attributable to the Company | $ 768 | $ 712 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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. The Company has one reportable segment, the upstream segment. On October 31, 2023, pursuant to a common unit purchase and sale agreement entered into on September 4, 2023, Viper issued approximately 7.22 million of its common units, which were converted to shares of Viper Class A common stock at the time of the Viper Conversion, to the Company at a price of $27.72 per unit for total consideration to Viper of approximately $200 million. On March 5, 2024, the Company exercised certain of its demand rights, pursuant to a registration rights agreement initially entered into on June 23, 2014, as amended and restated on May 9, 2018 and November 10, 2023, and on March 8, 2024, completed a public offering of approximately 13.23 million of Viper’s Class A common stock at a price of $35.00 per share for proceeds, net of underwriters’ discount, of approximately $451 million. After this offering and through March 31, 2024, the Company owned approximately 48% of Viper’s combined outstanding Class A common stock and Class B common stock, resulting in Viper no longer being a controlled company under the Nasdaq rules. However, the Company determined that it still controls the activities of Viper in accordance with the guidance for variable interest entities in Accounting Standards Codification Topic 810— “Consolidation” (“ASC 810”) and therefore continues to consolidate Viper in the Company’s financial statements at March 31, 2024. See further discussion of the Company’s determination that Viper is a variable interest entity (“VIE”) in Note 2— Summary of Significant Accounting Policies . The results of operations attributable to the non-controlling interest in Viper 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, 2023, which contains a summary of the Company’s significant accounting policies and other disclosures. |
Use of Estimates | Use of Estimates Certain amounts included in or affecting the Company’s condensed 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 condensed 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 condensed 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. For instance, the war in Ukraine and the Israel-Hamas war, rising interest rates, global supply chain disruptions, recent measures to combat persistent inflation and instability in the financial sector have contributed to recent economic and pricing volatility. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of these events and changing market conditions. Such circumstances generally increase 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, fair value estimates of derivative instruments, the fair value determination of acquired assets and liabilities assumed and estimates of income taxes, including deferred tax valuation allowances. |
Variable Interest Entity | Variable Interest Entity Viper is a publicly traded corporation formed by the Company in 2014 to provide an attractive return to its shareholders (the largest of which is Diamondback) by focusing on business results, maximizing dividends through organic growth and pursuing accretive growth opportunities through acquisitions of mineral, royalty, overriding royalty, net profits and similar interests from the Company and from third parties. Viper has no employees and the Company provides management, operating and administrative services to Viper under a services and secondment agreement, including the services of the executive officers and other employees. In connection with the reduction of the Company’s ownership percentage in Viper to below 50% in March 2024, the Company re-evaluated whether Viper should continue to be consolidated in the Company’s financial statements. Viper meets the definition of a VIE under ASC 810 and the Company continues to be the primary beneficiary of the VIE through its ability, via existing contractual agreements, to direct the activities that most significantly affect the economic performance of Viper. The Company also has the obligation to absorb losses and the right to receive benefits that could be significant to Viper. As such, the Company will continue to consolidate the activity of Viper. Viper maintains its own capital structure that is separate from the Company. The Company is not under any obligation to provide additional financial support or investment to Viper. Viper’s assets cannot be used by the Company for general corporate purposes, and the creditors of Viper’s liabilities do not have recourse to the Company’s assets. The assets and liabilities of Viper are included in the Company’s condensed consolidated balance sheets and disclosed parenthetically, if material. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842) – Common Control Arrangements.” This update (i) requires all lessees that are a party to a lease between entities under common control in which there are leasehold improvements to record amortization over the useful life of the leasehold improvements to the common control group, regardless of the lease term, and (ii) requires leasehold improvements to be accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. The Company adopted this update effective January 1, 2024 by electing to apply the guidance in ASU 2023-01 prospectively to all new leasehold improvements recognized on or after January 1, 2024. As such, the adoption of this update did not have a material impact on the Company’s financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures,” which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. The amendments are effective for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740) – Improvements to Income Tax Disclosures,” which requires that certain information in a reporting entity’s tax rate reconciliation be disaggregated and provides additional requirements regarding income taxes paid. The amendments are effective for annual periods beginning after December 15, 2024, with early adoption permitted, and should be applied either prospectively or retrospectively. Management is currently evaluating this ASU to determine its impact on the Company’s disclosures. Adoption of the update will not impact the Company’s financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, previously disclosed, or not material upon adoption. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following tables present the Company’s revenue from contracts with customers: Three Months Ended March 31, 2024 2023 (In millions) Oil sales $ 1,867 $ 1,654 Natural gas sales 50 69 Natural gas liquid sales 184 179 Total oil, natural gas and natural gas liquid revenues 2,101 1,902 Sales of purchased oil 116 — Midstream and marketing services 8 21 Total revenue from contracts with customers $ 2,225 $ 1,923 The following tables present the Company’s revenue from oil, natural gas, and natural gas liquids disaggregated by basin: Three Months Ended March 31, 2024 Three Months Ended March 31, 2023 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 1,503 $ 360 $ 4 $ 1,867 $ 1,295 $ 358 $ 1 $ 1,654 Natural gas sales 34 15 1 50 48 21 — 69 Natural gas liquid sales 137 47 — 184 132 47 — 179 Total $ 1,674 $ 422 $ 5 $ 2,101 $ 1,475 $ 426 $ 1 $ 1,902 |
ACQUISITIONS AND DIVESTITURES (
ACQUISITIONS AND DIVESTITURES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Acquisitions And Divestitures [Abstract] | |
Schedule of Asset Acquisition | The following table presents the acquisition consideration paid in the Lario Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 4,330 Closing price per share of Diamondback common stock on the closing date $ 146.12 Fair value of Diamondback common stock issued $ 633 Cash consideration 814 Total consideration (including fair value of Diamondback common stock issued) $ 1,447 |
Schedule of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table sets forth the Company’s purchase price allocation (in millions): Total consideration $ 1,447 Fair value of liabilities assumed: Other long-term liabilities 37 Fair value of assets acquired: Oil and natural gas properties 1,460 Inventories 2 Other property, equipment and land 22 Amount attributable to assets acquired 1,484 Net assets acquired and liabilities assumed $ 1,447 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment includes the following as of the dates indicated: March 31, December 31, 2024 2023 (In millions) Oil and natural gas properties: Subject to depletion $ 34,785 $ 33,771 Not subject to depletion 8,455 8,659 Gross oil and natural gas properties 43,240 42,430 Accumulated depletion (8,785) (8,333) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 26,501 26,143 Other property, equipment and land 675 673 Accumulated depreciation, amortization, accretion and impairment (152) (142) Total property and equipment, net $ 27,024 $ 26,674 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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: Three Months Ended March 31, 2024 2023 (In millions) Asset retirement obligations, beginning of period $ 245 $ 347 Additional liabilities incurred 1 7 Liabilities acquired 1 4 Liabilities settled and divested (7) (18) Accretion expense 3 4 Revisions in estimated liabilities 31 (32) Asset retirement obligations, end of period 274 312 Less current portion (1) 8 6 Asset retirement obligations - long-term $ 266 $ 306 (1) The current portion of the asset retirement obligation is included in the caption “Other accrued liabilities” in the Company’s condensed consolidated balance sheets. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table presents the significant related party balances included in the condensed consolidated balance sheet at March 31, 2024 and December 31, 2023: March 31, December 31, 2024 2023 (In millions) Current assets - Accounts receivable $ 65 $ 61 Current liabilities - Accrued capital expenditures $ (32) $ (21) Current liabilities - Other accrued liabilities $ (15) $ (18) The following table presents the significant related party transactions included in the condensed consolidated statement of operations for the three months ended March 31, 2024 and 2023: Three Months Ended 2024 2023 (In millions) Lease operating expenses $ 26 $ — |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2024 2023 (In millions) 3.250% Senior Notes due 2026 $ 750 $ 750 5.625% Senior Notes due 2026 14 14 7.125% Medium-term Notes, Series B, due 2028 73 73 3.500% Senior Notes due 2029 915 921 3.125% Senior Notes due 2031 767 789 6.250% Senior Notes due 2033 1,100 1,100 4.400% Senior Notes due 2051 650 650 4.250% Senior Notes due 2052 750 750 6.250% Senior Notes due 2053 650 650 Unamortized debt issuance costs (45) (46) Unamortized discount costs (21) (23) Unamortized premium costs 4 4 Unamortized basis adjustment of dedesignated interest rate swap agreements (1) (81) (84) Viper revolving credit facility 273 263 Viper 5.375% Senior Notes due 2027 430 430 Viper 7.375% Senior Notes due 2031 400 400 Total debt, net 6,629 6,641 Less: current maturities of long-term debt — — Total long-term debt $ 6,629 $ 6,641 (1) 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. This basis adjustment is being amortized to interest expense over the remaining term of the 2029 Notes utilizing the effective interest method. |
STOCKHOLDERS_ EQUITY AND EARN_2
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 2023 (In millions) Net income (loss) attributable to the Company $ 768 $ 712 Change in ownership of consolidated subsidiaries (55) (9) Change from net income (loss) attributable to the Company's stockholders and transfers with non-controlling interest $ 713 $ 703 |
Dividends Declared | The following table presents dividends and distribution equivalent rights paid on the Company’s common stock during the respective periods : Base Variable Total Total ($ per share) (In millions) 2024 First quarter $ 0.90 $ 2.18 $ 3.08 $ 552 2023 First quarter $ 0.80 $ 2.15 $ 2.95 $ 546 |
Schedule of Reconciliation of Basic and Diluted Net Income Per Share | A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2024 2023 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common shares $ 768 $ 712 Less: distributed and undistributed earnings allocated to participating securities (1) 5 5 Net income (loss) attributable to common stockholders $ 763 $ 707 Weighted average common shares outstanding: Basic weighted average common shares outstanding 178,477 181,988 Effect of dilutive securities: Weighted-average potential common shares issuable — — Diluted weighted average common shares outstanding 178,477 181,988 Basic net income (loss) attributable to common shares $ 4.28 $ 3.88 Diluted net income (loss) attributable to common shares $ 4.28 $ 3.88 (1) Unvested restricted stock awards and performance 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) | 3 Months Ended |
Mar. 31, 2024 | |
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 equity compensation plans and related costs on the Company’s financial statements: Three Months Ended March 31, 2024 2023 (In millions) General and administrative expenses $ 14 $ 11 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 7 $ 5 |
Schedule of Restricted Stock Units | The following table presents the Company’s restricted stock unit activity during the three months ended March 31, 2024 under the Equity Plan: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2023 751,196 $ 132.29 Granted 308,923 $ 180.39 Vested (82,003) $ 152.41 Forfeited (7,506) $ 139.36 Unvested at March 31, 2024 970,610 $ 145.85 |
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 three months ended March 31, 2024: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2023 278,056 $ 234.80 Granted 110,989 $ 214.14 Unvested at March 31, 2024 (1) 389,045 $ 228.91 (1) A maximum of 923,176 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 periods presented: March 2024 Grant-date fair value $ 341.81 Risk-free rate 4.38 % Company volatility 41.40 % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
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 March 31, 2024 2023 (In millions, except for tax rate) Provision for (benefit from) income taxes $ 223 $ 207 Effective income tax rate 21.6 % 21.7 % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of March 31, 2024, 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 Apr. - Jun. 2024 Costless Collar 6,000 WTI Cushing $— $65.00 $95.55 Apr. - Dec. 2024 Basis Swap (1) 12,000 Argus WTI Midland $1.19 $— $— Apr. - Dec. 2024 Roll Swap 40,000 WTI Cushing $0.82 $— $— Jul. - Dec. 2024 Costless Collar 4,000 WTI Cushing $— $55.00 $93.66 NATURAL GAS Apr. - Dec. 2024 Costless Collar 290,000 Henry Hub $— $2.83 $7.52 Apr. - Dec. 2024 Basis Swap (1) 380,000 Waha Hub $(1.18) $— $— Jan. - Dec. 2025 Basis Swap (1) 310,000 Waha Hub $(0.69) $— $— Jan. - Dec. 2025 Costless Collar 150,000 Henry Hub $— $2.50 $5.31 (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 Deferred Premium OIL Apr. - Jun. 2024 Put 110,000 Brent $55.45 $1.49 Apr. - Jun. 2024 Put 32,000 Argus WTI Houston $55.63 $1.56 Apr. - Jun. 2024 Put 39,000 WTI Cushing $59.23 $1.49 Jul. - Sep. 2024 Put 80,000 Brent $55.25 $1.55 Jul. - Sep. 2024 Put 28,000 Argus WTI Houston $56.07 $1.58 Jul. - Sep. 2024 Put 51,000 WTI Cushing $57.65 $1.54 Oct. - Dec. 2024 Put 44,000 Brent $55.23 $1.61 Oct. - Dec. 2024 Put 14,000 Argus WTI Houston $57.14 $1.66 Oct. - Dec. 2024 Put 40,000 WTI Cushing $57.00 $1.64 Jan. - Mar. 2025 Put 2,000 Argus WTI Houston $60.00 $1.60 Jan. - Mar. 2025 Put 4,000 WTI Cushing $60.00 $1.73 |
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 March 31, 2024 2023 (In millions) Gain (loss) on derivative instruments, net: Commodity contracts $ (16) $ (109) Interest rate swaps (32) 16 Total $ (48) $ (93) Net cash received (paid) on settlements: Commodity contracts $ (4) $ 1 Total $ (4) $ 1 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information For Financial Instruments Measured on a Recurring Basis | The following table provides the fair value of financial instruments that are recorded at fair value in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 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 $ — $ 59 $ — $ 59 $ (52) $ 7 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 16 $ — $ 16 $ (9) $ 7 Non-current assets- Other assets: Investment $ 8 $ — $ — $ 8 $ — $ 8 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 103 $ — $ 103 $ (52) $ 51 Interest rate swaps $ — $ 51 $ — $ 51 $ — $ 51 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (9) $ — Interest rate swaps $ — $ 144 $ — $ 144 $ — $ 144 As of December 31, 2023 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 $ — $ 88 $ — $ 88 $ (71) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 8 $ — $ 8 $ (7) $ 1 Non-current assets- Other assets: Investment $ 5 $ — $ — $ 5 $ — $ 5 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 111 $ — $ 111 $ (71) $ 40 Interest rate swaps $ — $ 46 $ — $ 46 $ — $ 46 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (7) $ 5 Interest rate swaps $ — $ 117 $ — $ 117 $ — $ 117 |
Schedule of Offsetting Assets | The following table provides the fair value of financial instruments that are recorded at fair value in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 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 $ — $ 59 $ — $ 59 $ (52) $ 7 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 16 $ — $ 16 $ (9) $ 7 Non-current assets- Other assets: Investment $ 8 $ — $ — $ 8 $ — $ 8 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 103 $ — $ 103 $ (52) $ 51 Interest rate swaps $ — $ 51 $ — $ 51 $ — $ 51 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (9) $ — Interest rate swaps $ — $ 144 $ — $ 144 $ — $ 144 As of December 31, 2023 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 $ — $ 88 $ — $ 88 $ (71) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 8 $ — $ 8 $ (7) $ 1 Non-current assets- Other assets: Investment $ 5 $ — $ — $ 5 $ — $ 5 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 111 $ — $ 111 $ (71) $ 40 Interest rate swaps $ — $ 46 $ — $ 46 $ — $ 46 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (7) $ 5 Interest rate swaps $ — $ 117 $ — $ 117 $ — $ 117 |
Schedule of Offsetting Liabilities | The following table provides the fair value of financial instruments that are recorded at fair value in the condensed consolidated balance sheets as of March 31, 2024 and December 31, 2023: As of March 31, 2024 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 $ — $ 59 $ — $ 59 $ (52) $ 7 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 16 $ — $ 16 $ (9) $ 7 Non-current assets- Other assets: Investment $ 8 $ — $ — $ 8 $ — $ 8 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 103 $ — $ 103 $ (52) $ 51 Interest rate swaps $ — $ 51 $ — $ 51 $ — $ 51 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 9 $ — $ 9 $ (9) $ — Interest rate swaps $ — $ 144 $ — $ 144 $ — $ 144 As of December 31, 2023 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 $ — $ 88 $ — $ 88 $ (71) $ 17 Non-current assets- Derivative instruments: Commodity derivative instruments $ — $ 8 $ — $ 8 $ (7) $ 1 Non-current assets- Other assets: Investment $ 5 $ — $ — $ 5 $ — $ 5 Liabilities: Current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 111 $ — $ 111 $ (71) $ 40 Interest rate swaps $ — $ 46 $ — $ 46 $ — $ 46 Non-current liabilities- Derivative instruments: Commodity derivative instruments $ — $ 12 $ — $ 12 $ (7) $ 5 Interest rate swaps $ — $ 117 $ — $ 117 $ — $ 117 |
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: March 31, 2024 December 31, 2023 Carrying Carrying Value Fair Value Value Fair Value (In millions) Debt $ 6,629 $ 6,474 $ 6,641 $ 6,507 |
SUPPLEMENTAL INFORMATION TO S_2
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Supplemental Cash Flow Information Disclosure [Abstract] | |
Schedule of Supplemental Disclosures of Cash Flow Information | Three Months Ended March 31, 2024 2023 (In millions) Supplemental disclosure of non-cash transactions: Accrued capital expenditures included in accounts payable and accrued expenses $ 674 $ 609 Common stock issued for acquisitions $ — $ 633 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 All Other Eliminations Total (In millions) Three Months Ended March 31, 2024: Third-party revenues $ 2,218 $ 9 $ — $ 2,227 Intersegment revenues — 37 (37) — Total revenues $ 2,218 $ 46 $ (37) $ 2,227 Depreciation, depletion, amortization and accretion $ 463 $ 6 $ — $ 469 Income (loss) from operations $ 1,090 $ 21 $ 7 $ 1,118 Interest expense, net $ (46) $ — $ — $ (46) Other income (expense) $ (38) $ — $ (4) $ (42) Income (loss) from equity investments $ — $ 2 $ — $ 2 Provision for (benefit from) income taxes $ 221 $ 2 $ — $ 223 Net income (loss) attributable to non-controlling interest $ 41 $ — $ — $ 41 Net income (loss) attributable to Diamondback Energy, Inc. $ 744 $ 21 $ 3 $ 768 As of March 31, 2024: Total assets $ 29,059 $ 1,235 $ (604) $ 29,690 Upstream All Other Eliminations Total (In millions) Three Months Ended March 31, 2023: Third-party revenues $ 1,904 $ 21 $ — $ 1,925 Intersegment revenues — 99 (99) — Total revenues $ 1,904 $ 120 $ (99) $ 1,925 Depreciation, depletion, amortization and accretion $ 388 $ 15 $ — $ 403 Income (loss) from operations $ 1,002 $ 45 $ (22) $ 1,025 Interest expense, net $ (46) $ — $ — $ (46) Other income (expense) $ (93) $ 53 $ — $ (40) Income (loss) from equity investments $ — $ 14 $ — $ 14 Provision for (benefit from) income taxes $ 203 $ 4 $ — $ 207 Net income (loss) attributable to non-controlling interest $ 34 $ — $ — $ 34 Net income (loss) attributable to Diamondback Energy, Inc. $ 626 $ 108 $ (22) $ 712 As of December 31, 2023: Total assets $ 28,362 $ 1,242 $ (603) $ 29,001 |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 08, 2024 USD ($) $ / shares shares | Nov. 13, 2023 shares | Oct. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2024 segment | |
Subsidiary, Sale of Stock [Line Items] | ||||
Conversion of stock, shares converted (in shares) | 1 | |||
Number of business segments | segment | 1 | |||
Number of shares issued (in shares) | 7,220,000 | |||
Sale of stock price (usd per share) | $ / shares | $ 35 | $ 27.72 | ||
Proceeds from sale of stock | $ | $ 451 | $ 200 | ||
Viper | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Ownership percentage | 48% | |||
Common Class B | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Conversion of stock, shares converted (in shares) | 1 | |||
Common Class A | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued (in shares) | 13,230,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Other operating income | $ 10 | $ 23 |
Total revenues | 2,227 | 1,925 |
Aggregate Revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | 2,225 | 1,923 |
Total oil, natural gas and natural gas liquid revenues | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,101 | 1,902 |
Total oil, natural gas and natural gas liquid revenues | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,674 | 1,475 |
Total oil, natural gas and natural gas liquid revenues | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 422 | 426 |
Total oil, natural gas and natural gas liquid revenues | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5 | 1 |
Oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,867 | 1,654 |
Oil sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,503 | 1,295 |
Oil sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 360 | 358 |
Oil sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4 | 1 |
Natural gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 50 | 69 |
Natural gas sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 34 | 48 |
Natural gas sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15 | 21 |
Natural gas sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1 | 0 |
Natural gas liquid sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 184 | 179 |
Natural gas liquid sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 137 | 132 |
Natural gas liquid sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 47 | 47 |
Natural gas liquid sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 0 | 0 |
Sales of purchased oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 116 | 0 |
Midstream and marketing services | ||
Disaggregation of Revenue [Line Items] | ||
Other operating income | $ 8 | $ 21 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Acquisitions (Details) shares in Thousands | Mar. 08, 2024 USD ($) | Nov. 01, 2023 USD ($) a shares | Oct. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) a shares | Mar. 31, 2024 | Oct. 19, 2023 USD ($) |
Business Acquisition [Line Items] | ||||||
Proceeds from sale of stock | $ 451,000,000 | $ 200,000,000 | ||||
Viper 7.375% Senior Notes due 2031 | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument stated interest rate | 7.375% | |||||
Viper 7.375% Senior Notes due 2031 | Viper | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate principal amount | $ 400,000,000 | |||||
6.250% Senior Notes due 2053 | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Debt instrument stated interest rate | 6.25% | |||||
Viper Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Equity transferred (in shares) | shares | 9,020 | |||||
Total consideration | $ 750,000,000 | |||||
2023 Permian Basin Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Net royalty acres | a | 4,600 | |||||
2023 Other Major Basin Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Net royalty acres | a | 2,700 | |||||
Lario Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Total consideration | $ 1,447,000,000 | |||||
Area of land | a | 25,000 | |||||
Area of land, net | a | 16,000 | |||||
Number of shares issued (in shares) | shares | 4,330 | |||||
Cash consideration | $ 814,000,000 | |||||
Funds held in escrow | 113,000,000 | |||||
Proved properties | 924,000,000 | |||||
Unproved properties | $ 536,000,000 |
ACQUISITIONS AND DIVESTITURES_2
ACQUISITIONS AND DIVESTITURES - Divestitures (Details) | 3 Months Ended | 12 Months Ended | ||||||
Sep. 01, 2023 USD ($) county | Jul. 28, 2023 USD ($) | Apr. 28, 2023 USD ($) a | Mar. 31, 2023 USD ($) a | Jan. 09, 2023 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) a | Dec. 31, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity method investments | $ 529,000,000 | $ 529,000,000 | ||||||
Number of counties | county | 12 | |||||||
Deep Blue | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Contractual obligations | 500,000,000 | |||||||
Disposed of by Sale | Water Assets | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on disposition of assets | $ 13,000,000 | 1,000,000 | ||||||
Disposed of by Sale | Glasscock County Disposition | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Area of land, net | a | 19,000 | |||||||
Consideration for divestiture | $ 269,000,000 | |||||||
Gain (loss) on disposal | $ 0 | |||||||
Disposed of by Sale | Ward and Winkler Counties Dispositions | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Area of land, net | a | 4,900 | 4,900 | ||||||
Consideration for divestiture | $ 72,000,000 | $ 72,000,000 | ||||||
Gain (loss) on disposal | $ 0 | |||||||
Deep Blue | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Distribution | $ 516,000,000 | |||||||
Equity method interest investment ownership percentage | 30% | |||||||
Contingent consideration receivable | $ 43,000,000 | |||||||
Equity method investments | $ 126,000,000 | |||||||
Agreement term | 15 years | |||||||
Deep Blue | Five Point Energy LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Contingent consideration | $ 47,000,000 | |||||||
Deep Blue | Diamondback Energy, Inc. | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity method investment, aggregate cost | 692,000,000 | |||||||
Deep Blue | Five Point Energy LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity method investment, aggregate cost | $ 251,000,000 | |||||||
Equity method interest investment ownership percentage | 70% | |||||||
OMOG JV LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity method investment, percentage sold | 43% | |||||||
Proceeds from the sale of equity method investments | $ 225,000,000 | |||||||
Gain on the sale of equity method investments | $ 35,000,000 | |||||||
Gray Oak Pipeline, LLC | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity method investment, percentage sold | 10% | |||||||
Proceeds from the sale of equity method investments | $ 172,000,000 | |||||||
Gain on the sale of equity method investments | $ 53,000,000 |
ACQUISITIONS AND DIVESTITURES_3
ACQUISITIONS AND DIVESTITURES - Schedule of Acquisition Consideration Paid (Details) - Lario Acquisition $ / shares in Units, shares in Thousands, $ in Millions | Jan. 31, 2023 USD ($) $ / shares shares |
Asset Acquisition [Line Items] | |
Shares of Diamondback common stock issued at closing (shares) | shares | 4,330 |
Closing price per share of Diamondback common stock on the closing date (in USD per share) | $ / shares | $ 146.12 |
Fair value of Diamondback common stock issued | $ 633 |
Cash consideration | 814 |
Total consideration (including fair value of Diamondback common stock issued) | $ 1,447 |
ACQUISITIONS AND DIVESTITURES_4
ACQUISITIONS AND DIVESTITURES - Schedule of Purchase Price Allocation (Details) - Lario Acquisition $ in Millions | Jan. 31, 2023 USD ($) |
Asset Acquisition [Line Items] | |
Total consideration | $ 1,447 |
Fair value of liabilities assumed: | |
Other long-term liabilities | 37 |
Fair value of assets acquired: | |
Oil and natural gas properties | 1,460 |
Inventories | 2 |
Other property, equipment and land | 22 |
Amount attributable to assets acquired | 1,484 |
Net assets acquired and liabilities assumed | $ 1,447 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Oil and natural gas properties: | ||
Not subject to depletion | $ 8,455 | $ 8,659 |
Gross oil and natural gas properties | 43,240 | 42,430 |
Accumulated depreciation, amortization, accretion and impairment | (16,891) | (16,429) |
Other property, equipment and land | 675 | 673 |
Property and equipment, net | 27,024 | 26,674 |
Oil and Natural Gas | ||
Oil and natural gas properties: | ||
Subject to depletion | 34,785 | 33,771 |
Not subject to depletion | 8,455 | 8,659 |
Gross oil and natural gas properties | 43,240 | 42,430 |
Accumulated depreciation, amortization, accretion and impairment | (8,785) | (8,333) |
Accumulated impairment | (7,954) | (7,954) |
Oil and natural gas properties, net | 26,501 | 26,143 |
Other Property and Equipment, Net | ||
Oil and natural gas properties: | ||
Accumulated depreciation, amortization, accretion and impairment | (152) | (142) |
Other property, equipment and land | $ 675 | $ 673 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Impairment of oil and natural gas properties | $ 0 | $ 0 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations, beginning of period | $ 245 | $ 347 | |
Additional liabilities incurred | 1 | 7 | |
Liabilities acquired | 1 | 4 | |
Liabilities settled and divested | (7) | (18) | |
Accretion expense | 3 | 4 | |
Revisions in estimated liabilities | 31 | (32) | |
Asset retirement obligations, end of period | 274 | 312 | |
Less current portion | 8 | 6 | |
Asset retirement obligations - long-term | $ 266 | $ 306 | $ 239 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) $ in Millions | 3 Months Ended | |
Sep. 01, 2023 county | Mar. 31, 2024 USD ($) | |
Related Party Transaction [Line Items] | ||
Number of counties | county | 12 | |
Water Services Agreement | ||
Related Party Transaction [Line Items] | ||
Related party transaction amounts | $ | $ 31 | |
Deep Blue | ||
Related Party Transaction [Line Items] | ||
Agreement term | 15 years |
RELATED PARTY TRANSACTIONS - Sc
RELATED PARTY TRANSACTIONS - Schedule Related Party (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | |||
Current assets - Accounts receivable | $ 734 | $ 654 | |
Current liabilities - Accrued capital expenditures | (570) | (493) | |
Current liabilities - Other accrued liabilities | (337) | (475) | |
Lease operating expenses | 255 | $ 192 | |
Related Party | |||
Related Party Transaction [Line Items] | |||
Current assets - Accounts receivable | 65 | 61 | |
Current liabilities - Accrued capital expenditures | (32) | (21) | |
Current liabilities - Other accrued liabilities | (15) | $ (18) | |
Lease operating expenses | $ 26 | $ 0 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) $ in Millions | Mar. 31, 2024 USD ($) derivative | Dec. 31, 2023 USD ($) | Dec. 31, 2021 instrument |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 6,629 | $ 6,641 | |
Unamortized debt issuance costs | (45) | (46) | |
Unamortized discount costs | (21) | (23) | |
Unamortized premium costs | 4 | 4 | |
Unamortized basis adjustment of dedesignated interest rate swap agreements | (81) | (84) | |
Less: current maturities of long-term debt | 0 | 0 | |
Total long-term debt | $ 6,629 | 6,641 | |
Fair value of interest rate swap agreements | |||
Debt Instrument [Line Items] | |||
Number of agreements | 2 | 2 | |
3.250% Senior Notes due 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.25% | ||
Long-term debt, gross | $ 750 | 750 | |
5.625% Senior Notes due 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 5.625% | ||
Long-term debt, gross | $ 14 | 14 | |
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 | 73 | |
3.500% Senior Notes due 2029 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.50% | ||
Long-term debt, gross | $ 915 | 921 | |
3.125% Senior Notes due 2031 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 3.125% | ||
Long-term debt, gross | $ 767 | 789 | |
6.250% Senior Notes due 2033 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 6.25% | ||
Long-term debt, gross | $ 1,100 | 1,100 | |
4.400% Senior Notes due 2051 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.40% | ||
Long-term debt, gross | $ 650 | 650 | |
4.250% Senior Notes due 2052 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 4.25% | ||
Long-term debt, gross | $ 750 | 750 | |
6.250% Senior Notes due 2053 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 6.25% | ||
Long-term debt, gross | $ 650 | 650 | |
Viper revolving credit facility | Viper | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 273 | 263 | |
Viper 5.375% Senior Notes due 2027 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 5.375% | ||
Viper 5.375% Senior Notes due 2027 | Viper | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 430 | 430 | |
Viper 7.375% Senior Notes due 2031 | |||
Debt Instrument [Line Items] | |||
Debt instrument stated interest rate | 7.375% | ||
Viper 7.375% Senior Notes due 2031 | Viper | Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 400 | $ 400 | |
Senior Notes Due 2029 | Fair value of interest rate swap agreements | Designated as Hedging Instrument | |||
Debt Instrument [Line Items] | |||
Fair value hedges | $ 1,200 | ||
Derivative, fixed interest rate | 3.50% | 3.50% |
DEBT - Credit Agreement (Detail
DEBT - Credit Agreement (Details) - Credit agreement - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2024 | Mar. 06, 2024 | Mar. 05, 2024 | |
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 2,500,000,000 | $ 1,600,000,000 | ||
Elected commitment amount | $ 50,000,000 | $ 100,000,000 | ||
Remaining borrowing capacity | $ 1,600,000,000 | |||
Weighted average rate | 6.02% | |||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Long-term line of credit amount outstanding | $ 0 |
DEBT - Term Loan Agreement (Det
DEBT - Term Loan Agreement (Details) - Term Loan Agreement - USD ($) | Feb. 29, 2024 | Mar. 31, 2024 |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,500,000,000 | |
Long-term line of credit amount outstanding | $ 0 | |
Remaining borrowing capacity | $ 1,500,000,000 | |
Commitment fee | 0.125% | |
SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.10% | |
Federal Funds | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
1-month Adjusted Term SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1% | |
Tranche A Loans | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,000,000,000 | |
Tranche A Loans | Minimum | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.125% | |
Tranche A Loans | Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.125% | |
Tranche A Loans | Maximum | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2% | |
Tranche A Loans | Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1% | |
Tranche B Loans | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Tranche B Loans | Minimum | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Tranche B Loans | Minimum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Tranche B Loans | Maximum | SOFR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.125% | |
Tranche B Loans | Maximum | Base Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.125% |
DEBT - Bridge Facility (Details
DEBT - Bridge Facility (Details) - USD ($) | Feb. 11, 2024 | Mar. 31, 2024 | Feb. 29, 2024 |
Bridge Facility | |||
Line of Credit Facility [Line Items] | |||
Outstanding borrowings under the Bridge Facility | $ 0 | ||
Commitment fee | 0.125% | ||
Bridge Facility | SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.10% | ||
Bridge Facility | Federal Funds | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Bridge Facility | 1-month Adjusted Term SOFR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1% | ||
Bridge Facility | Base Rate | Minimum | Closing Date Through 89 Days | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Bridge Facility | Base Rate | Minimum | 90th Day Following The Closing Date Through 179th Day | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.375% | ||
Bridge Facility | Base Rate | Minimum | 180th Day Following The Closing Date Through 269th Day | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.625% | ||
Bridge Facility | Base Rate | Minimum | 270th Day Following The Closing Date | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.875% | ||
Bridge Facility | Base Rate | Maximum | Closing Date Through 89 Days | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2% | ||
Bridge Facility | Base Rate | Maximum | 90th Day Following The Closing Date Through 179th Day | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
Bridge Facility | Base Rate | Maximum | 180th Day Following The Closing Date Through 269th Day | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Bridge Facility | Base Rate | Maximum | 270th Day Following The Closing Date | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Endeavor Acquisition | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 8,000,000,000 | $ 6,500,000,000 |
DEBT - Retirement of Notes (Det
DEBT - Retirement of Notes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Repurchase of debt | $ 25 | $ 0 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Repurchase of debt | 25 | |
3.125% Senior Notes due 2031 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Redemption, amount | $ 22 | |
Debt instrument stated interest rate | 3.125% | |
3.500% Senior Notes due 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Redemption, amount | $ 6 | |
Debt instrument stated interest rate | 3.50% |
DEBT - Viper_s Credit Agreement
DEBT - Viper’s Credit Agreement (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 6,629,000,000 | $ 6,641,000,000 | |
Viper revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000 | ||
Elected commitment amount | 850,000,000 | ||
Viper revolving credit facility | Viper Energy Partners LP | |||
Line of Credit Facility [Line Items] | |||
Current borrowing capacity | 1,300,000,000 | ||
Remaining borrowing capacity | $ 577,000,000 | ||
Weighted average rate | 7.65% | 6.10% |
STOCKHOLDERS_ EQUITY AND EARN_3
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Stock repurchase program authorized amount | $ 4,000,000,000 | |
Shares repurchased during period | 42,000,000 | $ 332,000,000 |
Stock repurchase remaining authorized amount | $ 1,600,000,000 |
STOCKHOLDERS_ EQUITY AND EARN_4
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE - Change in Ownership of Consolidated Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income (loss) attributable to the Company | $ 768 | $ 712 |
Change in ownership of consolidated subsidiaries, net | 15 | 2 |
Subsidiaries | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income (loss) attributable to the Company | 768 | 712 |
Change in ownership of consolidated subsidiaries, net | (55) | (9) |
Change from net income (loss) attributable to the Company's stockholders and transfers with non-controlling interest | $ 713 | $ 703 |
STOCKHOLDERS_ EQUITY AND EARN_5
STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE - Dividends (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Dividends [Line Items] | ||
Dividend paid (usd per share) | $ 3.08 | $ 2.95 |
Dividends | $ 552 | $ 546 |
Base Dividend | ||
Dividends [Line Items] | ||
Dividend paid (usd per share) | $ 0.90 | $ 0.80 |
Variable Dividend | ||
Dividends [Line Items] | ||
Dividend paid (usd per share) | $ 2.18 | $ 2.15 |
STOCKHOLDERS_ EQUITY AND EARN_6
STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE - Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Net income (loss) attributable to the Company | $ 768 | $ 712 |
Less: net income (loss) allocated to participating securities | 5 | 5 |
Net income (loss) attributable to common stockholders | $ 763 | $ 707 |
Weighted average common shares outstanding: | ||
Basic weighted average common units outstanding (in shares) | 178,477 | 181,988 |
Effect of dilutive securities: | ||
Weighted-average potential common shares issuable (in shares) | 0 | 0 |
Diluted weighted average common shares outstanding (in shares) | 178,477 | 181,988 |
Basic net income (loss) attributable to common stock (in USD per share) | $ 4.28 | $ 3.88 |
Diluted net income (loss) attributable to common stock (in USD per share) | $ 4.28 | $ 3.88 |
EQUITY-BASED COMPENSATION - (Na
EQUITY-BASED COMPENSATION - (Narratives) (Details) - Equity Plan shares in Millions | Mar. 31, 2024 shares |
Restricted Stock Awards & Units | |
Shares authorized for issuance (in shares) | 11.8 |
Common stock available for future grants (in shares) | 4.7 |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
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 | $ 7 | $ 5 |
General and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
General and administrative expenses | $ 14 | $ 11 |
EQUITY-BASED COMPENSATION - Res
EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock Units | |
Unvested, beginning balance (in shares) | shares | 751,196 |
Granted (in shares) | shares | 308,923 |
Vested (in shares) | shares | (82,003) |
Forfeited (in shares) | shares | (7,506) |
Unvested, ending balance (in shares) | shares | 970,610 |
Weighted Average Grant-Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 132.29 |
Granted (in USD per share) | $ / shares | 180.39 |
Vested (in USD per share) | $ / shares | 152.41 |
Forfeited (in USD per share) | $ / shares | 139.36 |
Unvested, ending balance (in USD per share) | $ / shares | $ 145.85 |
EQUITY-BASED COMPENSATION - R_2
EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregated fair value of restricted stock | $ 12 |
Share based award not recognized | $ 115 |
Share based payment not recognized | 2 years 2 months 12 days |
EQUITY-BASED COMPENSATION - Per
EQUITY-BASED COMPENSATION - Performance Restricted Stock Activity (Details) - Equity Plan - Performance Shares - $ / shares | 3 Months Ended | |
Mar. 01, 2024 | Mar. 31, 2024 | |
Performance Restricted Stock Units | ||
Unvested, beginning balance (in shares) | 278,056 | |
Granted (in shares) | 110,989 | 110,989 |
Unvested, ending balance (in shares) | 389,045 | |
Weighted Average Grant-Date Fair Value | ||
Unvested, beginning balance (in USD per share) | $ 234.80 | |
Granted (in USD per share) | $ 341.81 | 214.14 |
Unvested, ending balance (in USD per share) | $ 228.91 | |
Share based compensation arrangement by share based payment maximum award potential (in shares) | 923,176 |
EQUITY-BASED COMPENSATION - P_2
EQUITY-BASED COMPENSATION - Performance Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan - USD ($) $ in Millions | 3 Months Ended | |
Mar. 01, 2024 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share based award not recognized | $ 52 | |
Share based payment not recognized | 2 years | |
Granted (in shares) | 110,989 | 110,989 |
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 - $ / shares | 3 Months Ended | |
Mar. 01, 2024 | Mar. 31, 2024 | |
Restricted Stock Awards & Units | ||
Granted (in USD per share) | $ 341.81 | $ 214.14 |
Risk-free rate | 4.38% | |
Company volatility | 41.40% |
INCOME TAXES - Schedule Tax Pro
INCOME TAXES - Schedule Tax Provision (Benefit) and Effective Income Tax Rate (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Provision for (benefit from) income taxes | $ 223 | $ 207 |
Effective income tax rate | 21.60% | 21.70% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Subsidiary, Sale of Stock [Line Items] | ||
Income taxes payable | $ 70 | $ 17 |
Public Offering of Viper’s Class A Common Stock | ||
Subsidiary, Sale of Stock [Line Items] | ||
Income taxes payable | 36 | |
Increase in tax payable | 3 | |
Increase in the deferred tax asset, net of valuation allowance | $ 18 |
DERIVATIVES - Derivative Positi
DERIVATIVES - Derivative Positions (Details) bbl in Thousands, MMBTU in Thousands | 3 Months Ended |
Mar. 31, 2024 MMBTU $ / MMBTU $ / bbl bbl | |
2024 | Apr. - Jun. | OIL | WTI Cushing | Costless Collar | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 6 |
Weighted average differential (per Bbl/MMBtu) | 0 |
Weighted Average Floor Price (per Bbl/MMBtu) | 65 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 95.55 |
2024 | Apr. - Dec. | OIL | WTI Cushing | Roll Swap | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 40 |
Weighted average differential (per Bbl/MMBtu) | 0.82 |
Weighted Average Floor Price (per Bbl/MMBtu) | 0 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 0 |
2024 | Apr. - Dec. | OIL | Argus WTI Midland | Basis Swap | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 12 |
Weighted average differential (per Bbl/MMBtu) | 1.19 |
Weighted Average Floor Price (per Bbl/MMBtu) | 0 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 0 |
2024 | Apr. - Dec. | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 290 |
Weighted average differential (per Bbl/MMBtu) | $ / MMBTU | 0 |
Weighted Average Floor Price (per Bbl/MMBtu) | $ / MMBTU | 2.83 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | $ / MMBTU | 7.52 |
2024 | Apr. - Dec. | NATURAL GAS | Waha Hub | Basis Swap | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 380 |
Weighted average differential (per Bbl/MMBtu) | $ / MMBTU | (1.18) |
Weighted Average Floor Price (per Bbl/MMBtu) | $ / MMBTU | 0 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | $ / MMBTU | 0 |
2024 | Jul. - Dec. | OIL | WTI Cushing | Costless Collar | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 4 |
Weighted average differential (per Bbl/MMBtu) | 0 |
Weighted Average Floor Price (per Bbl/MMBtu) | 55 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 93.66 |
2024 | Apr. - Jun. | OIL | WTI Cushing | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 39 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.49 |
Strike Price (USD per Bbl) | 59.23 |
2024 | Apr. - Jun. | OIL | Brent | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 110 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.49 |
Strike Price (USD per Bbl) | 55.45 |
2024 | Apr. - Jun. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 32 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.56 |
Strike Price (USD per Bbl) | 55.63 |
2024 | Jul. - Sep. | OIL | WTI Cushing | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 51 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.54 |
Strike Price (USD per Bbl) | 57.65 |
2024 | Jul. - Sep. | OIL | Brent | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 80 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.55 |
Strike Price (USD per Bbl) | 55.25 |
2024 | Jul. - Sep. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 28 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.58 |
Strike Price (USD per Bbl) | 56.07 |
2024 | Oct. - Dec. | OIL | WTI Cushing | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 40 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.64 |
Strike Price (USD per Bbl) | 57 |
2024 | Oct. - Dec. | OIL | Brent | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 44 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.61 |
Strike Price (USD per Bbl) | 55.23 |
2024 | Oct. - Dec. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 14 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.66 |
Strike Price (USD per Bbl) | 57.14 |
2024 | Jan. - Mar. | OIL | WTI Cushing | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 4 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.73 |
Strike Price (USD per Bbl) | 60 |
2024 | Jan. - Mar. | OIL | Argus WTI Houston | Put | |
Derivative [Line Items] | |
Volume (BBls) | bbl | 2 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | 1.60 |
Strike Price (USD per Bbl) | 60 |
2025 | Jan. - Dec. | NATURAL GAS | Henry Hub | Costless Collar | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 150 |
Weighted average differential (per Bbl/MMBtu) | $ / MMBTU | 0 |
Weighted Average Floor Price (per Bbl/MMBtu) | $ / MMBTU | 2.50 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | $ / MMBTU | 5.31 |
2025 | Jan. - Dec. | NATURAL GAS | Waha Hub | Basis Swap | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 310 |
Weighted average differential (per Bbl/MMBtu) | $ / MMBTU | (0.69) |
Weighted Average Floor Price (per Bbl/MMBtu) | $ / MMBTU | 0 |
Weighted Average Ceiling Price (USD per Bbl/MMBtu) | $ / MMBTU | 0 |
DERIVATIVES - Interest Rate Swa
DERIVATIVES - Interest Rate Swaps (Details) - Interest rate swaps | Mar. 31, 2024 USD ($) derivative | Dec. 31, 2021 USD ($) instrument |
Derivative [Line Items] | ||
Number of instruments held | 2 | 2 |
Derivative, notional amount | $ 600,000,000 | |
Designated as Hedging Instrument | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Derivative [Line Items] | ||
Derivative, average variable interest rate | 2.1865% | |
Senior Notes Due 2029 | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair value hedges | $ 1,200,000,000 | |
Derivative, fixed interest rate | 3.50% | 3.50% |
DERIVATIVES - Gains and Losses
DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net: | $ (48) | $ (93) |
Net cash received (paid) on settlements: | (4) | 1 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net: | (16) | (109) |
Net cash received (paid) on settlements: | (4) | 1 |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net: | $ (32) | $ 16 |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - Fair Value, Recurring - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Noncurrent Assets | ||
Assets: | ||
Gross Amounts Offset in Balance Sheet | $ 0 | $ 0 |
Investment | 8 | 5 |
Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 59 | 88 |
Gross Amounts Offset in Balance Sheet | (52) | (71) |
Net Fair Value Presented in Balance Sheet | 7 | 17 |
Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 16 | 8 |
Gross Amounts Offset in Balance Sheet | (9) | (7) |
Net Fair Value Presented in Balance Sheet | 7 | 1 |
Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 103 | 111 |
Gross Amounts Offset in Balance Sheet | (52) | (71) |
Net Fair Value Presented in Balance Sheet | 51 | 40 |
Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 9 | 12 |
Gross Amounts Offset in Balance Sheet | (9) | (7) |
Net Fair Value Presented in Balance Sheet | 0 | 5 |
Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 51 | 46 |
Gross Amounts Offset in Balance Sheet | 0 | 0 |
Net Fair Value Presented in Balance Sheet | 51 | 46 |
Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 144 | 117 |
Gross Amounts Offset in Balance Sheet | 0 | 0 |
Net Fair Value Presented in Balance Sheet | 144 | 117 |
Level 1 | Noncurrent Assets | ||
Assets: | ||
Investment | 8 | 5 |
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 Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 1 | Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 0 |
Level 2 | Noncurrent Assets | ||
Assets: | ||
Investment | 0 | 0 |
Level 2 | Commodity derivative instruments | Current Assets | ||
Assets: | ||
Total Gross Fair Value | 59 | 88 |
Level 2 | Commodity derivative instruments | Noncurrent Assets | ||
Assets: | ||
Total Gross Fair Value | 16 | 8 |
Level 2 | Commodity derivative instruments | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 103 | 111 |
Level 2 | Commodity derivative instruments | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 9 | 12 |
Level 2 | Interest rate swaps | Current Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 51 | 46 |
Level 2 | Interest rate swaps | Noncurrent Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 144 | 117 |
Level 3 | Noncurrent Assets | ||
Assets: | ||
Investment | 0 | 0 |
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 Liabilities | ||
Liabilities: | ||
Total Gross Fair Value | 0 | 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 | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Value | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Debt | $ 6,629 | $ 6,641 |
Fair Value | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Debt | $ 6,474 | $ 6,507 |
SUPPLEMENTAL INFORMATION TO S_3
SUPPLEMENTAL INFORMATION TO STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Supplemental disclosure of non-cash transactions: | ||
Accrued capital expenditures included in accounts payable and accrued expenses | $ 674 | $ 609 |
Common stock issued for business combinations | $ 0 | $ 633 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 135 Months Ended |
Mar. 31, 2024 lawsuit | |
Environmental Matters | |
Loss Contingencies [Line Items] | |
Number of lawsuits company is defendant | 3 |
ENDEAVOR ENERGY RESOURCES, LP_2
ENDEAVOR ENERGY RESOURCES, LP ACQUISITION (Details) - Endeavor Acquisition shares in Thousands, $ in Millions | Feb. 11, 2024 USD ($) shares |
Business Acquisition [Line Items] | |
Expected price of acquisition | $ 8,000 |
Number of shares issued in acquisition (in shares) | shares | 117,270 |
Termination fee | $ 1,400 |
Contingent reimbursement fees | $ 260 |
Endeavor | |
Business Acquisition [Line Items] | |
Expected ownership percentage by noncontrolling owners | 39.50% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) | Apr. 25, 2024 | Apr. 18, 2024 |
Subsequent Event [Line Items] | ||
Proceeds from issuance of debt | $ 5,500,000,000 | |
Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | 5,500,000,000 | |
5.200% Senior Notes due April 18, 2027 | Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 850,000,000 | |
Debt instrument stated interest rate | 5.20% | |
5.150% Senior Notes due January 30, 2030 | Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 850,000,000 | |
Debt instrument stated interest rate | 5.15% | |
5.400% Senior Notes due April 18, 2034 | Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 1,300,000,000 | |
Debt instrument stated interest rate | 5.40% | |
5.750% Senior Notes due April 18, 2054 | Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 1,500,000,000 | |
Debt instrument stated interest rate | 5.75% | |
5.900% Senior Notes due April 18, 2064 | Senior Notes | ||
Subsequent Event [Line Items] | ||
Aggregate principal amount | $ 1,000,000,000 | |
Debt instrument stated interest rate | 5.90% | |
Common Stock | Base Dividend | ||
Subsequent Event [Line Items] | ||
Dividends payable (usd per share) | $ 0.90 | |
Common Stock | Variable Dividend | ||
Subsequent Event [Line Items] | ||
Dividends payable (usd per share) | 1.07 | |
Cash Distribution | ||
Subsequent Event [Line Items] | ||
Dividends declared per share (in USD per share) | $ 1.97 |
SEGMENT INFORMATION- Additional
SEGMENT INFORMATION- Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,227 | $ 1,925 | |
Depreciation, depletion, amortization and accretion | 469 | 403 | |
Income (loss) from operations | 1,118 | 1,025 | |
Interest expense, net | (46) | (46) | |
Other income (expense) | (42) | (40) | |
Income (loss) from equity investments | 2 | 14 | |
Provision for (benefit from) income taxes | 223 | 207 | |
Net income (loss) attributable to non-controlling interest | 41 | 34 | |
Net income (loss) attributable to the Company | 768 | 712 | |
Assets | 29,690 | $ 29,001 | |
All Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 46 | 120 | |
Operating Segments | Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,218 | 1,904 | |
Depreciation, depletion, amortization and accretion | 463 | 388 | |
Income (loss) from operations | 1,090 | 1,002 | |
Interest expense, net | (46) | (46) | |
Other income (expense) | (38) | (93) | |
Income (loss) from equity investments | 0 | 0 | |
Provision for (benefit from) income taxes | 221 | 203 | |
Net income (loss) attributable to non-controlling interest | 41 | 34 | |
Net income (loss) attributable to the Company | 744 | 626 | |
Assets | 29,059 | 28,362 | |
Operating Segments | All Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9 | 21 | |
Depreciation, depletion, amortization and accretion | 6 | 15 | |
Income (loss) from operations | 21 | 45 | |
Interest expense, net | 0 | 0 | |
Other income (expense) | 0 | 53 | |
Income (loss) from equity investments | 2 | 14 | |
Provision for (benefit from) income taxes | 2 | 4 | |
Net income (loss) attributable to non-controlling interest | 0 | 0 | |
Net income (loss) attributable to the Company | 21 | 108 | |
Assets | 1,235 | 1,242 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (37) | (99) | |
Depreciation, depletion, amortization and accretion | 0 | 0 | |
Income (loss) from operations | 7 | (22) | |
Interest expense, net | 0 | 0 | |
Other income (expense) | (4) | 0 | |
Income (loss) from equity investments | 0 | 0 | |
Provision for (benefit from) income taxes | 0 | 0 | |
Net income (loss) attributable to non-controlling interest | 0 | 0 | |
Net income (loss) attributable to the Company | 3 | $ (22) | |
Assets | $ (604) | $ (603) |