Diamondback Energy Files Q3 2024 10-Q

Ticker: FANG · Form: 10-Q · Filed: 2024-11-07T00:00:00.000Z

Sentiment: neutral

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

TL;DR

DB Energy's Q3 10-Q is in. Check financials for oil & gas ops.

AI Summary

Diamondback Energy, Inc. filed its 10-Q for the period ending September 30, 2024. The company is involved in oil and natural gas exploration and production. Key financial data and operational metrics for the third quarter and the year-to-date period are detailed within the filing.

Why It Matters

This filing provides investors with the latest financial and operational performance of Diamondback Energy, crucial for understanding the company's current standing and future prospects in the energy sector.

Risk Assessment

Risk Level: medium — The energy sector is inherently volatile due to commodity price fluctuations and regulatory changes, impacting companies like Diamondback Energy.

Key Numbers

Key Players & Entities

FAQ

What were Diamondback Energy's primary business segments reported in this 10-Q?

The filing indicates segments such as Oil Exploration and Production, and Natural Gas Production.

What is the fiscal year end for Diamondback Energy?

Diamondback Energy's fiscal year ends on December 31.

What is the SEC file number for Diamondback Energy?

The SEC file number for Diamondback Energy is 001-35700.

What is the SIC code for Diamondback Energy?

The Standard Industrial Classification (SIC) code for Diamondback Energy is 1311, which corresponds to Crude Petroleum & Natural Gas.

When was this 10-Q filing submitted?

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

Filing Stats: 4,877 words · 20 min read · ~16 pages · Grade level 16.6 · Accepted 2024-11-07 16:05:35

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 9 4. Acquisitions and Divestitures 10 5. Endeavor Energy Resources, LP Acquisition 14 6. Property and Equipment 16 7. Asset Retirement Obligations 17 8. Related Party Transactions 17 9. Debt 18 10. Stockholders' Equity and Earnings (Loss) Per Share 20 11. Equity-Based Compensation 22 12. Income Taxes 24 13. Derivatives 24 14. Fair Value Measurements 27 15. Supplemental Information To Statements of Cash Flows 29 16. Commitments and Contingencies 29 17. Subsequent Events 29 18. Segment Information 30

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 33

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 50

Controls and Procedures

Item 4. Controls and Procedures 51

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 53

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Other Information

Item 5. Other Information 53

Exhibits

Item 6. Exhibits 54

Signatures

Signatures 55 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) September 30, December 31, 2024 2023 (In millions, except par values and share data) Assets Current assets: Cash and cash equivalents ($ 169 million and $ 26 million related to Viper) $ 370 $ 582 Restricted cash 3 3 Accounts receivable: Joint interest and other, net 233 192 Oil and natural gas sales, net ($ 109 million and $ 109 million related to Viper) 1,197 654 Inventories 126 63 Derivative instruments 42 17 Prepaid expenses and other current assets 51 110 Total current assets 2,022 1,621 Property and equipment: Oil and natural gas properties, full cost method of accounting ($ 21,971 million and $ 8,659 million excluded from amortization at September 30, 2024 and December 31, 2023, respectively) ($ 4,771 million and $ 4,629 million related to Viper and $ 1,623 million and $ 1,769 million excluded from amortization related to Viper) 79,718 42,430 Other property, equipment and land 1,417 673 Accumulated depletion, depreciation, amortization and impairment ($ 1,016 million and $ 866 million related to Viper) ( 18,082 ) ( 16,429 ) Property and equipment, net 63,053 26,674 Funds held in escrow 43 — Equity method investments 377 529 Derivative instruments 38 1 Deferred income taxes, net 62 45 Investment in real estate, net 81 84 Other assets 71 47 Total assets $ 65,747 $ 29,001 Liabilities and Stockholders' Equity Current liabilities: Accounts payable - trade $ 198 $ 261 Accrued capital expenditures 641 493 Current maturities of debt 1,000 — Other accrued liabilities 857 475 Revenues and royalties payable 1,444 764 Derivative instruments 34 86 Income taxes payable 289 29 Total current liabilities 4,463 2,108 Long-term debt ($ 822 million and $ 1,083 million related to Viper) 11,923 6,641 Derivative instruments 79 122 Asset retirement obligations 493 239 Deferred inc

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