Diamondback Energy Files Q2 2024 10-Q

Ticker: FANG · Form: 10-Q · Filed: 2024-08-07T00:00:00.000Z

Sentiment: neutral

Topics: 10-Q, oil-and-gas, financials, exploration-production

TL;DR

DB's Q2 10-Q is in. Expect operational and financial details for oil & gas production.

AI Summary

Diamondback Energy, Inc. filed its 10-Q for the period ending June 30, 2024. The company is involved in oil and gas exploration and production. Key financial data and operational metrics for the second quarter and first half of 2024 are detailed within the filing.

Why It Matters

This filing provides investors with crucial financial and operational updates for Diamondback Energy, impacting investment decisions and market sentiment for the company.

Risk Assessment

Risk Level: medium — The filing pertains to an oil and gas company, a sector inherently exposed to commodity price volatility and regulatory changes.

Key Numbers

Key Players & Entities

FAQ

What is the primary business of Diamondback Energy, Inc. as indicated in this filing?

Diamondback Energy, Inc. is primarily engaged in oil and gas exploration and production, as indicated by its SIC code [1311] and segment information.

What is the reporting period covered by this 10-Q filing?

This 10-Q filing covers the period ending June 30, 2024 (2024 Q2).

When was this 10-Q filing submitted to the SEC?

This 10-Q filing was submitted on August 7, 2024.

What is the company's principal executive office address?

The company's principal executive office is located at 500 WEST TEXAS STREET, SUITE 1200, MIDLAND, TX 79701.

What are the main production segments mentioned in the filing's XBRL data?

The filing mentions segments related to Oil Exploration and Production and Natural Gas Production.

Filing Stats: 4,794 words · 19 min read · ~16 pages · Grade level 15.8 · Accepted 2024-08-07 16:01:40

Key Financial Figures

Filing Documents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements (Unaudited)

Item 1. Condensed Consolidated Financial Statements (Unaudited) 1 Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 5 Condensed Notes to Consolidated Financial Statements 6 1. Description of the Business and Basis of Presentation 6 2. Summary of Significant Accounting Policies 7 3. Revenue from Contracts with Customers 8 4. Acquisitions and Divestitures 9 5. Property and Equipment 12 6. Asset Retirement Obligations 12 7. Related Party Transactions 13 8. Debt 14 9. Stockholders' Equity and Earnings Per Share 16 10. Equity-Based Compensation 18 11. Income Taxes 19 12. Derivatives 20 13. Fair Value Measurements 22 14. Supplemental Information To Statements of Cash Flows 24 15. Commitments and Contingencies 24 16. Endeavor Energy Resources, LP Acquisition 25 17. Subsequent Events 25 18. Segment Information 26

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 28

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 45

Controls and Procedures

Item 4. Controls and Procedures 46

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 47

Risk Factors

Item 1A. Risk Factors 47

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47

Other Information

Item 5. Other Information 47

Exhibits

Item 6. Exhibits 48

Signatures

Signatures 49 i Table of Contents GLOSSARY OF OIL AND NATURAL GAS TERMS The following is a glossary of certain oil and natural gas industry terms that are used in this Quarterly Report on Form 10-Q (this "report"): 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/d One barrel of crude oil 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 BOE per day. Brent A major trading classification of light sweet oil that serves as a benchmark price for oil worldwide. 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. Henry Hub Natural gas gathering point that serves as a benchmark price for natural gas futures on the NYMEX. Horizontal wells Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms. MBbl One thousand barrels of crude oil and other liquid hydrocarbons. MBOE One thousand BOE. MBOE/d One thousand BOE per day. Mcf One thousand cubic feet of natural gas. Mineral interests The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources. MMBtu One million British Thermal Units. MMcf Million cubic feet of natural gas. Net acres The sum of the fractional working interest owned in gross acres. Oil and natural gas properties Tracts of land consisting of properties to be developed f

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Diamondback Energy, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, 2024 2023 (In millions, except par values and share data) Assets Current assets: Cash and cash equivalents $ 6,908 $ 582 Restricted cash 3 3 Accounts receivable: Joint interest and other, net 119 192 Oil and natural gas sales, net ($ 132 million and $ 109 million related to Viper) 711 654 Inventories 55 63 Derivative instruments 4 17 Prepaid expenses and other current assets 25 110 Total current assets 7,825 1,621 Property and equipment: Oil and natural gas properties, full cost method of accounting ($ 8,131 million and $ 8,659 million excluded from amortization at June 30, 2024 and December 31, 2023, respectively) ($ 4,568 million and $ 4,629 million and $ 1,581 million and $ 1,769 million excluded from amortization related to Viper) 43,793 42,430 Other property, equipment and land 666 673 Accumulated depletion, depreciation, amortization and impairment ($ 962 million and $ 866 million related to Viper) ( 17,360 ) ( 16,429 ) Property and equipment, net 27,099 26,674 Equity method investments 542 529 Derivative instruments 15 1 Deferred income taxes, net 32 45 Investment in real estate, net 82 84 Other assets 42 47 Total assets $ 35,637 $ 29,001 Liabilities and Stockholders' Equity Current liabilities: Accounts payable - trade $ 331 $ 261 Accrued capital expenditures 446 493 Other accrued liabilities 457 475 Revenues and royalties payable 782 764 Derivative instruments 72 86 Income taxes payable 49 29 Total current liabilities 2,137 2,108 Long-term debt ($ 998 million and $ 1,083 million related to Viper) 11,980 6,641 Derivative instruments 134 122 Asset retirement obligations 300 239 Deferred income taxes 2,549 2,449 Other long-term liabilities 10 12 Total liabilities 17,110 11,571 Commitments and contingencies (Note 15) Stockholders' e

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