Diamondback Energy Files 2023 Annual Report on Form 10-K

TL;DR

<b>Diamondback Energy, Inc. has filed its 2023 annual report (10-K) detailing its oil and gas exploration and production activities.</b>

AI Summary

Diamondback Energy, Inc. (FANG) filed a Annual Report (10-K) with the SEC on February 22, 2024. Diamondback Energy, Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is oil and gas exploration and production. Diamondback Energy is incorporated in Delaware. The company's principal business address is 500 West Texas Street, Suite 1200, Midland, TX 79701.

Why It Matters

For investors and stakeholders tracking Diamondback Energy, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Diamondback Energy's financial performance, operational activities, and risk factors for the fiscal year 2023, crucial for investors to assess the company's health and future prospects. As a key player in the oil and gas sector, the details within this filing are important for understanding market dynamics, regulatory impacts, and the company's strategic positioning in the energy landscape.

Risk Assessment

Risk Level: — Diamondback Energy, Inc. shows moderate risk based on this filing. The company operates in the volatile oil and gas industry, which is subject to significant price fluctuations and regulatory changes, as indicated by its core business being crude petroleum and natural gas extraction.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Diamondback Energy's performance and potential challenges in the energy market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Period of report)
• 2024-02-22 — Filing Date (Date filed)

Key Players & Entities

• Diamondback Energy, Inc. (company) — Filer name
• 2023 (date) — Fiscal year end
• February 22, 2024 (date) — Filing date
• Midland, TX (location) — Business address city and state
• 0001539838 (company) — Central Index Key
• 1311 (industry) — Standard Industrial Classification for Crude Petroleum & Natural Gas

FAQ

Risk Factors

• Commodity Price Volatility [high — market]: The company's financial results are significantly impacted by fluctuations in the prices of crude oil and natural gas.
• Environmental Regulations [medium — regulatory]: Changes in environmental laws and regulations could increase compliance costs and affect operations.
• Operational Risks [medium — operational]: Risks associated with drilling, production, and transportation of oil and gas can lead to disruptions and increased costs.

Industry Context

Diamondback Energy operates in the crude petroleum and natural gas extraction industry, a sector heavily influenced by global energy demand, geopolitical events, and commodity prices.

Regulatory Implications

The oil and gas industry is subject to extensive federal, state, and local regulations concerning environmental protection, safety, and resource extraction, which can impact operational costs and strategies.

What Investors Should Do

1. Analyze the company's revenue streams and production volumes for 2023.
2. Review the identified risk factors, particularly those related to commodity prices and environmental regulations.
3. Compare key financial metrics from this 10-K with previous filings to identify trends.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This filing represents the annual report for the fiscal year ending December 31, 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.01 — ich Registered Common Stock, par value $0.01 per share FANG The Nasdaq Stock Market
• $760 million — ely 9.02 million Viper common units and $760 million in cash consideration, including transa
• $692 million — r Assets") with a net carrying value of $692 million in exchange for $516 million in cash co
• $516 million — g value of $692 million in exchange for $516 million in cash consideration and a 30% equity
• $814 million — million shares of our common stock and $814 million in cash consideration, including certai
• $8.0 b — ion consisting of a base cash amount of $8.0 billion, subject to adjustments under the

Filing Documents

• fang-20231231.htm (10-K) — 3461KB
• diamondback2023xex41x2x22x.htm (EX-4.1) — 26KB
• diamondback202310-kxex102.htm (EX-10.2) — 4KB
• diamondback202310-kxex109.htm (EX-10.9) — 48KB
• diamondback202310-kxex1010.htm (EX-10.10) — 75KB
• diamondback202310-kxex1013.htm (EX-10.13) — 4KB
• diamondback202310-kxex211.htm (EX-21.1) — 6KB
• diamondback202310-kxex231.htm (EX-23.1) — 2KB
• diamondback202310-kxex232.htm (EX-23.2) — 4KB
• diamondback202310-kxex233.htm (EX-23.3) — 4KB
• diamondback202310-kxex311.htm (EX-31.1) — 9KB
• diamondback202310-kxex312.htm (EX-31.2) — 9KB
• diamondback202310-kxex321.htm (EX-32.1) — 4KB
• diamondback202310-kxex322.htm (EX-32.2) — 5KB
• diamondbackex971-clawbackp.htm (EX-97.1) — 14KB
• diamondback202310-kxex991.htm (EX-99.1) — 133KB
• diamondback2023xex992x2x22.htm (EX-99.2) — 133KB
• fang-20231231_g1.jpg (GRAPHIC) — 84KB
• image_01a.jpg (GRAPHIC) — 93KB
• image_0a.jpg (GRAPHIC) — 93KB
• image_11a.jpg (GRAPHIC) — 79KB
• image_1a.jpg (GRAPHIC) — 79KB
• 0001539838-24-000019.txt (&nbsp;) — 19180KB
• fang-20231231.xsd (EX-101.SCH) — 124KB
• fang-20231231_cal.xml (EX-101.CAL) — 159KB
• fang-20231231_def.xml (EX-101.DEF) — 670KB
• fang-20231231_lab.xml (EX-101.LAB) — 1412KB
• fang-20231231_pre.xml (EX-101.PRE) — 1008KB
• fang-20231231_htm.xml (XML) — 3151KB

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 44

Cybersecurity

Item 1C. Cybersecurity 44

Legal Proceedings

Item 3. Legal Proceedings 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46

[RESERVED]

Item 6. [RESERVED] 47

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 48

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 64

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 65

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 121

Controls and Procedures

Item 9A. Controls and Procedures 121

Other Information

Item 9B. Other Information 123

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 123 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 123

Executive Compensation

Item 11. Executive Compensation 123

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 123

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 123

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 123 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 124

Form 10-K Summary

Item 16. Form 10-K Summary 128

Signatures

Signatures 129 i Table of Contents GLOSSARY OF OIL AND NATURAL GAS TERMS The following is a glossary of certain oil and natural gas industry terms used in this Annual Report on Form 10-K, which we refer to as this Annual Report or this report: 3-D seismic Geophysical data that depict the subsurface strata in three dimensions. 3-D seismic typically provides a more detailed and accurate interpretation of the subsurface strata than 2-D, or two-dimensional, seismic. Argus WTI Houston Grade of oil that serves as a benchmark price for oil at Houston, Texas. Argus WTI Midland Grade of oil that serves as a benchmark price for oil at Midland, Texas. Basin A large depression on the earth's surface in which sediments accumulate. Bbl or barrel One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. BO One barrel of crude oil. BO/d One BO per day. BOE One barrel of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil. BOE/d Barrels of oil equivalent per day. Brent A major trading classification of light sweet oil that serves as a benchmark price for oil worldwide. British Thermal Unit or BTU The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit. Completion The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency. Condensate Liquid hydrocarbons associated with the production that is primarily natural gas. Crude oil Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources. Developed acreage Acreage assignable to productive wells. Development costs Capital costs incurred in the acquisition, exploitation and exploration of proved oil and natural gas reserves. Differential An adjustment t

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