Diamondback Energy, Inc 10-Q for FY2024 Q3

Diamondback Energy, Inc. (FANG)

10-Q 2024-11-07 For: 2024-09-30

Added on April 09, 2026

About this 10-Q

Diamondback Energy, Inc filed this 10-Q on November 7, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $2.65B; up 13.0% from $2.34B a year earlier
Net income: $659M; down 28.0% from net income of $915M a year earlier
Diluted EPS: $3.19; down 37.1% from $5.07 a year earlier

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DE									45-4502447
(State or Other Jurisdiction of Incorporation or Organization)									(I.R.S. Employer Identification Number)

500 West Texas Ave.
Suite 100
Midland, TX									79701
(Address of principal executive offices)									(Zip code)


			Page
Glossary of Oil and Natural Gas Terms			ii
Glossary of Certain Other Terms			iii
Cautionary Statement Regarding Forward-Looking Statements			iv

PART I. FINANCIAL INFORMATION
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

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			33

Item 3. Quantitative and Qualitative Disclosures About Market Risk			50

Item 4. Controls and Procedures			51

PART II. OTHER INFORMATION
Item 1. Legal Proceedings			53

Item 1A. Risk Factors			53

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

Item 5. Other Information			53

Item 6. Exhibits			54

Signatures			55



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 for oil and natural gas resource extraction.








Proved reserves			The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions.


Reserves			The estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves are not assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).
Reservoir			A porous and permeable underground formation containing a natural accumulation of producible natural gas and/or crude oil that is confined by impermeable rock or water barriers and is separate from other reservoirs.

Royalty interest			An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development, which may be subject to expiration.




Waha Hub			Natural gas gathering point that serves as a benchmark price for natural gas at western Texas and New Mexico.
Working interest			An operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and receive a share of production and requires the owner to pay a share of the costs of drilling and production operations.
WTI			West Texas Intermediate, a light sweet blend of oil produced from fields in western Texas and is a grade of oil that serves as a benchmark for oil on the NYMEX.





ASU			Accounting Standards Update.



Equity Plan			The Company’s 2021 Amended and Restated Equity Incentive Plan.
Exchange Act			The Securities Exchange Act of 1934, as amended.
FASB			Financial Accounting Standards Board.
GAAP			Accounting principles generally accepted in the United States.







Nasdaq			The Nasdaq Global Select Market.

OPEC			Organization of the Petroleum Exporting Countries.







SEC			United States Securities and Exchange Commission.
Securities Act			The Securities Act of 1933, as amended.

Guaranteed Senior Notes			The outstanding senior notes issued by Diamondback Energy, Inc. under indentures where Diamondback E&P is the sole guarantor, consisting of the 3.250% Senior Notes due 2026, 5.200% Senior Notes due 2027, 3.500% Senior Notes due 2029, 5.150% Senior Notes due 2030, 3.125% Senior Notes due 2031, 6.250% Senior Notes due 2033, 5.400% Senior Notes due 2034, 4.400% Senior Notes due 2051, 4.250% Senior Notes due 2052, 6.250% Senior Notes due 2053, 5.750% Senior Notes due 2054 and 5.900% Senior Notes due 2064.
SOFR			The secured overnight financing rate.
TSR			Total stockholder return of the Company’s common stock.
Viper			Viper Energy, Inc.

Viper LLC			Viper Energy Partners LLC, a Delaware limited liability company and a subsidiary of Viper.


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 income taxes	9,952		2,449
Other long-term liabilities	18		12
Total liabilities	26,928		11,571
Commitments and contingencies (Note 16)
Stockholders’ equity:
Common stock, $0.01 par value; 800,000,000 shares authorized; 292,742,664 and 178,723,871 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	3		2
Additional paid-in capital	34,007		14,142
Retained earnings (accumulated deficit)	3,427		2,489
Accumulated other comprehensive income (loss)	(8)		(8)
Total Diamondback Energy, Inc. stockholders’ equity	37,429		16,625
Non-controlling interest	1,390		805
Total equity	38,819		17,430
Total liabilities and stockholders' equity	$	65,747	$	29,001


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	(In millions, except per share amounts, shares in thousands)
Revenues:
Oil sales	$	2,160	$	1,997	$	6,025	$	5,359
Natural gas sales	(17)		80		38		197
Natural gas liquid sales	211		188		566		507

Sales of purchased oil	282		59		698		59
Other operating income	9		16		28		62
Total revenues	2,645		2,340		7,355		6,184
Costs and expenses:
Lease operating expenses	316		226		825		618
Production and ad valorem taxes	153		118		413		421
Gathering, processing and transportation	102		73		261		209
Purchased oil expense	280		59		696		59
Depreciation, depletion, amortization and accretion	742		442		1,694		1,277


General and administrative expenses	49		34		141		111

Merger and integration expenses	258		1		273		11
Other operating expenses	35		47		68		113
Total costs and expenses	1,935		1,000		4,371		2,819
Income (loss) from operations	710		1,340		2,984		3,365
Other income (expense):
Interest expense, net	(18)		(37)		(101)		(130)
Other income (expense), net	89		33		87		61

Gain (loss) on derivative instruments, net	131		(76)		101		(358)



Gain (loss) on extinguishment of debt	—		—		2		(4)
Income (loss) from equity investments, net	6		9		23		39
Total other income (expense), net	208		(71)		112		(392)
Income (loss) before income taxes	918		1,269		3,096		2,973
Provision for (benefit from) income taxes	210		276		685		648
Net income (loss)	708		993		2,411		2,325
Net income (loss) attributable to non-controlling interest	49		78		147		142
Net income (loss) attributable to Diamondback Energy, Inc.	$	659	$	915	$	2,264	$	2,183

Earnings (loss) per common share:
Basic	$	3.19	$	5.07	$	12.00	$	12.01
Diluted	$	3.19	$	5.07	$	12.00	$	12.01
Weighted average common shares outstanding:
Basic	204,730		178,872		187,253		180,400
Diluted	204,730		178,872		187,253		180,400


	Common Stock			Additional Paid-in Capital		Retained Earnings (Accumulated Deficit)		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interest		Total
	Shares	Amount
	($ in millions, shares in thousands)
Balance December 31, 2023	178,724	$	2	$	14,142	$	2,489	$	(8)	$	805	$	17,430

Distribution equivalent rights payments	—	—		—		(4)		—		—		(4)
Stock-based compensation	—	—		21		—		—		—		21
Cash paid for tax withholding on vested equity awards	(187)	—		(34)		—		—		—		(34)
Repurchased shares under buyback program	(279)	—		(42)		—		—		—		(42)


Proceeds from partial sale of investment in Viper Energy, Inc.	—	—		219		—		—		197		416
Dividends to non-controlling interest	—	—		—		—		—		(44)		(44)
Dividends paid	—	—		—		(548)		—		—		(548)
Issuance of shares upon vesting of equity awards	82	—		—		—		—		—		—
Change in ownership of consolidated subsidiaries, net	—	—		(55)		—		—		70		15

Net income (loss)	—	—		—		768		—		41		809
Balance March 31, 2024	178,340	2		14,251		2,705		(8)		1,069		18,019
Viper equity-based compensation	—	—		—		—		—		1		1
Distribution equivalent rights payments	—	—		—		(3)		—		—		(3)
Stock-based compensation	—	—		25		—		—		—		25
Cash paid for tax withholding on vested equity awards	(16)	—		(3)		—		—		—		(3)



Dividends to non-controlling interest	—	—		—		—		—		(54)		(54)
Dividends paid	—	—		—		(352)		—		—		(352)
Issuance of shares upon vesting of equity awards	70	—		—		—		—		—		—
Change in ownership of consolidated subsidiaries, net	—	—		(6)		—		—		6		—

Net income (loss)	—	—		—		837		—		57		894
Balance June 30, 2024	178,394	2		14,267		3,187		(8)		1,079		18,527
Viper equity-based compensation	—	—		—		—		—		1		1
Distribution equivalent rights payments	—	—		—		(3)		—		—		(3)
Stock-based compensation	—	—		23		—		—		—		23

Repurchased shares under buyback program	(2,920)	—		(515)		—		—		—		(515)

Common shares issued for acquisition	117,267	1		20,109		—		—		—		20,110
Net proceeds from Viper's issuance of common stock	—	—		—		—		—		476		476
Dividends to non-controlling interest	—	—		—		—		—		(59)		(59)
Dividends paid	—	—		—		(416)		—		—		(416)
Issuance of shares upon vesting of equity awards	2	—		—		—		—		—		—
Change in ownership of consolidated subsidiaries, net	—	—		123		—		—		(156)		(33)

Net income (loss)	—	—		—		659		—		49		708
Balance September 30, 2024	292,743	$	3	$	34,007	$	3,427	$	(8)	$	1,390	$	38,819


	Three Months Ended September 30, 2024								Three Months Ended September 30, 2023
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(In millions)
Oil sales	$	1,823	$	336	$	1	$	2,160	$	1,588	$	407	$	2	$	1,997
Natural gas sales	(8)		(9)		—		(17)		52		28		—		80
Natural gas liquid sales	179		33		(1)		211		138		50		—		188
Total	$	1,994	$	360	$	—	$	2,354	$	1,778	$	485	$	2	$	2,265

	Nine Months Ended September 30, 2024								Nine Months Ended September 30, 2023
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(In millions)
Oil sales	$	4,985	$	1,034	$	6	$	6,025	$	4,205	$	1,149	$	5	$	5,359
Natural gas sales	28		9		1		38		131		66		—		197
Natural gas liquid sales	444		122		—		566		363		144		—		507
Total	$	5,457	$	1,165	$	7	$	6,629	$	4,699	$	1,359	$	5	$	6,063


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








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


Total consideration	$	27,420

Fair value of liabilities assumed:
Accounts payable - trade	$	18
Accrued capital expenditures	173
Other accrued liabilities	613
Revenues and royalties payable	567
Derivative instruments	5
Income taxes payable	202
Other current liabilities	21
Asset retirement obligations	186
Deferred income taxes	7,280
Other long-term liabilities	5
Amount attributable to liabilities acquired	$	9,070

Fair value of assets acquired:

Accounts receivable - joint interest and other, net	$	70
Accounts receivable - oil and natural gas sales, net	660
Inventories	77
Derivative instruments	25
Prepaid expenses and other current assets	20
Oil and natural gas properties	34,833
Other property, equipment and land	776
Other assets	29
Amount attributable to assets acquired	$	36,490

Net assets acquired and liabilities assumed	$	27,420


	Base		Variable		Total Per Share		Total
	(In millions, except per share amounts)
2024
First quarter	$	0.90	$	2.18	$	3.08	$	552
Second quarter	0.90		1.07		1.97		355
Third quarter	0.90		1.44		2.34		419
Total year-to-date	$	2.70	$	4.69	$	7.39	$	1,326

2023
First quarter	$	0.80	$	2.15	$	2.95	$	546
Second quarter	0.80		0.03		0.83		151
Third quarter	0.84		—		0.84		151
Total year-to-date	$	2.44	$	2.18	$	4.62	$	848


	Restricted Stock Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2023	751,196	$	132.29
Granted	355,283	$	179.72
Vested	(154,168)	$	145.03
Forfeited	(23,406)	$	147.21
Unvested at September 30, 2024	928,905	$	147.94


	March 2024			September 2024
Grant-date fair value	$	341.38		$	337.23
Risk-free rate	4.38		%	3.54		%
Company volatility	41.40		%	34.40		%


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/MMBtu Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Oct. - Dec.	2024	Basis Swap(1)	43,000	Argus WTI Midland	$1.18	$—	$—	$—
Oct. - Dec.	2024	Roll Swap	40,000	WTI Cushing	$0.82	$—	$—	$—
Oct. - Dec.	2024	Costless Collar	46,000	WTI Cushing	$—	$—	$60.87	$89.91
Jan. - Mar.	2025	Basis Swap(1)	38,000	Argus WTI Midland	$1.17	$—	$—	$—
Jan. - Mar.	2025	Costless Collar	13,000	WTI Cushing	$—	$—	$60.00	$89.55
Apr. - Dec.	2025	Basis Swap(1)	25,000	Argus WTI Midland	$1.18	$—	$—	$—
NATURAL GAS
Oct. - Dec.	2024	Costless Collar	398,261	Henry Hub	$—	$—	$2.78	$6.53
Oct. - Dec.	2024	Basis Swap(1)	471,630	Waha Hub	$(1.11)	$—	$—	$—
Oct. - Dec.	2024	Swap	13,370	Henry Hub	$—	$3.23	$—	$—
Jan. - Mar.	2025	Costless Collar	670,000	Henry Hub	$—	$—	$2.53	$5.42
Jan. - Mar.	2025	Basis Swap(1)	600,000	Waha Hub	$(0.78)	$—	$—	$—
Apr. - Dec.	2025	Costless Collar	610,000	Henry Hub	$—	$—	$2.49	$5.47
Apr. - Dec.	2025	Basis Swap(1)	540,000	Waha Hub	$(0.80)	$—	$—	$—


Settlement Month	Settlement Year	Type of Contract	Bbls Per Day	Index	Strike Price	Deferred Premium
OIL
Oct. - Dec.	2024	Put	79,000	Brent	$57.34	$1.51
Oct. - Dec.	2024	Put	35,000	Argus WTI Houston	$57.57	$1.61
Oct. - Dec.	2024	Put	125,000	WTI Cushing	$57.28	$1.61
Jan. - Mar.	2025	Put	45,000	Brent	$60.00	$1.45
Jan. - Mar.	2025	Put	33,000	Argus WTI Houston	$57.12	$1.50
Jan. - Mar.	2025	Put	131,000	WTI Cushing	$56.72	$1.57
Apr. - Jun.	2025	Put	26,000	Brent	$60.00	$1.44
Apr. - Jun.	2025	Put	21,000	Argus WTI Houston	$55.48	$1.41
Apr. - Jun.	2025	Put	102,000	WTI Cushing	$55.78	$1.54
Jul. - Sep.	2025	Put	7,000	Brent	$60.00	$1.61
Jul. - Sep.	2025	Put	7,000	Argus WTI Houston	$55.00	$1.53
Jul. - Sep.	2025	Put	38,000	WTI Cushing	$55.00	$1.50


	Performance Restricted Stock Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2023	278,056	$	234.80
Granted	117,739	$	341.14


Unvested at September 30, 2024(1)	395,795	$	266.43


	As of September 30, 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	$	—	$	164	$	—	$	164	$	(122)	$	42

Non-current assets- Derivative instruments:
Commodity derivative instruments	$	—	$	50	$	—	$	50	$	(12)	$	38
Non-current assets- Other assets:
Investment	$	8	$	—	$	—	$	8	$	—	$	8

Liabilities:
Current liabilities- Derivative instruments:
Commodity derivative instruments	$	—	$	124	$	—	$	124	$	(122)	$	2
Interest rate swaps	$	—	$	32	$	—	$	32	$	—	$	32
Non-current liabilities- Derivative instruments:
Commodity derivative instruments	$	—	$	13	$	—	$	13	$	(12)	$	1
Interest rate swaps	$	—	$	78	$	—	$	78	$	—	$	78
Non-current liabilities- Other long-term liabilities:
2026 WTI Contingent Liability	$	—	$	5	$	—	$	5	$	—	$	5


	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


	September 30, 2024				December 31, 2023
	Carrying				Carrying
	Value		Fair Value		Value		Fair Value
	(In millions)
Debt	$	12,923	$	12,994	$	6,641	$	6,507


	Upstream		All Other		Eliminations		Total
	(In millions)
Three Months Ended September 30, 2024:
Third-party revenues	$	2,636	$	9	$	—	$	2,645
Intersegment revenues	—		39		(39)		—
Total revenues	$	2,636	$	48	$	(39)	$	2,645
Depreciation, depletion, amortization and accretion	$	735	$	7	$	—	$	742

Income (loss) from operations	$	709	$	(1)	$	2	$	710
Interest expense, net	$	(19)	$	1	$	—	$	(18)
Other income (expense)	$	123	$	99	$	(2)	$	220
Income (loss) from equity investments	$	—	$	6	$	—	$	6
Provision for (benefit from) income taxes	$	201	$	9	$	—	$	210
Net income (loss) attributable to non-controlling interest	$	49	$	—	$	—	$	49
Net income (loss) attributable to Diamondback Energy, Inc.	$	563	$	96	$	—	$	659
As of September 30, 2024:
Total assets	$	65,402	$	952	$	(607)	$	65,747


	Three Months Ended September 30, 2024				Nine Months Ended September 30, 2024
	Drilled		Completed(2)		Drilled		Completed(3)
Area:	Gross	Net(1)	Gross	Net(1)	Gross	Net	Gross	Net
Midland Basin	71	67	87	95	211	201	267	256
Delaware Basin	5	4	8	7	24	21	15	13

Total	76	71	95	102	235	222	282	269


	As of September 30, 2024
	Vertical Wells		Horizontal Wells		Total
Area:	Gross	Net	Gross	Net	Gross	Net
Midland Basin	3,262	3,091	3,948	3,705	7,210	6,796
Delaware Basin	45	42	696	649	741	691
Other	26	21	—	—	26	21
Total	3,333	3,154	4,644	4,354	7,977	7,508


			2024 Guidance
Net production - MBOE/d			587 - 590 (from 462 - 470)
Oil production - MBO/d			335 - 337 (from 273 - 276)
Q4 2024 oil production - MBO/d (total - MBOE/d)			470 - 475 (840 - 850)

(Q4 2024 Unit costs $/BOE):
Lease operating expenses, including workovers			$5.90 - $6.20
General and administrative expenses - cash			$0.55 - $0.65
Non-cash stock-based compensation			$0.25 - $0.40
Depreciation, depletion, amortization and accretion			$14.00 - $15.00
Interest expense (net of interest income)			$0.25 - $0.50
Gathering, processing and transportation			$1.60 - $1.80

Production and ad valorem taxes (% of revenue)			~7%
Corporate tax rate (% of pre-tax income)			23%
Cash tax rate (% of pre-tax income)			15% - 18%
Q4 2024 cash taxes (in millions)			$240 - $300


	Three Months Ended
	September 30, 2024		June 30, 2024
Revenues (In millions):
Oil sales	$	2,160	$	1,998
Natural gas sales	(17)		5
Natural gas liquid sales	211		171
Total oil, natural gas and natural gas liquid revenues	$	2,354	$	2,174

Production Data:
Oil (MBbls)	29,537		25,129
Natural gas (MMcf)	66,519		51,310
Natural gas liquids (MBbls)	11,918		9,514
Combined volumes (MBOE)(1)	52,541		43,195

Daily oil volumes (BO/d)	321,054		276,143
Daily combined volumes (BOE/d)	571,098		474,670

Average Prices:
Oil ($ per Bbl)	$	73.13	$	79.51
Natural gas ($ per Mcf)	$	(0.26)	$	0.10
Natural gas liquids ($ per Bbl)	$	17.70	$	17.97
Combined ($ per BOE)	$	44.80	$	50.33

Oil, hedged ($ per Bbl)(2)	$	72.32	$	78.55
Natural gas, hedged ($ per Mcf)(2)	$	0.60	$	1.03
Natural gas liquids, hedged ($ per Bbl)(2)	$	17.70	$	17.97
Average price, hedged ($ per BOE)(2)	$	45.43	$	50.89


	Three Months Ended September 30, 2024				Three Months Ended June 30, 2024
	Midland Basin	Delaware Basin	Other	Total	Midland Basin	Delaware Basin	Other	Total
Production Data:
Oil (MBbls)	24,819	4,706	12	29,537	20,867	4,248	14	25,129
Natural gas (MMcf)	53,087	13,322	110	66,519	38,399	12,818	93	51,310
Natural gas liquids (MBbls)	9,799	2,113	6	11,918	7,566	1,940	8	9,514
Total (MBOE)	43,466	9,039	36	52,541	34,833	8,324	38	43,195


	Three Months Ended
(In millions, except BOE amounts)	September 30, 2024		June 30, 2024
Depletion of proved oil and natural gas properties	$	721	$	465
Depreciation and amortization of other property and equipment	13		11
Other amortization	2		2
Asset retirement obligation accretion	6		5
Depreciation, depletion, amortization and accretion	$	742	$	483
Oil and natural gas properties depletion rate per BOE	$	13.72	$	10.77
Depreciation, depletion, amortization and accretion per BOE	$	14.12	$	11.18


	September 30, 2024		December 31, 2023
Summarized Balance Sheets:	(In millions)
Assets:
Current assets	$	679	$	1,269
Property and equipment, net	$	21,052	$	20,780
Other noncurrent assets	$	57	$	28
Liabilities:
Current liabilities	$	2,877	$	1,974
Intercompany accounts payable, non-guarantor subsidiary	$	1,985	$	2,217
Long-term debt	$	11,087	$	5,544
Other noncurrent liabilities	$	3,010	$	2,835


	Nine Months Ended September 30, 2024
Summarized Statement of Operations:	(In millions)
Revenues	$	5,379
Income (loss) from operations	$	2,009
Net income (loss)	$	1,449


Period	Total Number of Shares Purchased	Average Price Paid Per Share(1)(3)		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(2)(3)
	($ In millions, except per share amounts, shares in thousands)
July 1, 2024 - July 31, 2024	—	$	—	—	$	1,592
August 1, 2024 - August 31, 2024	55	$	183.00	55	$	1,582
September 1, 2024 - September 30, 2024	2,865	$	176.28	2,865	$	3,077
Total	2,920	$	176.40	2,920


Exhibit Number						Description
2.1#						Agreement and Plan of Merger, dated as of February 11, 2024, by and among the Company, Endeavor, Merger Sub I, Merger Sub II and the Company Representative (for purposes of certain sections set forth therein) (incorporated by reference to Exhibit 2.1 to the Form 8-K, File No 001-35700, filed by the Company with the SEC on February 12, 2024).
2.2#						Letter Agreement, amending the Merger Agreement, by and among the Company, Endeavor, Merger Sub I, Merger Sub II and the Company Representative, dated March 18, 2024 (incorporated by reference to Exhibit 2.1 to the Form 8-K, File No 001-35700, filed by the Company with the SEC on March 18, 2024).
3.1						Second Amended and Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Form 8-K, File No. 001-35700, filed by the Company with the SEC on June 14, 2023).
3.2						Fifth Amended and Restated Bylaws of the Company, adopted as of September 18, 2024 (incorporated by reference to Exhibit 3.1 to the Form 8-K, File No. 001-35700, filed by the Company with the SEC on September 18, 2024).
4.1						Specimen certificate for shares of common stock, par value $0.01 per share, of the Company (incorporated by reference to Exhibit 4.1 to Amendment No. 4 to the Registration Statement on Form S-1, File No. 333-179502, filed by the Company with the SEC on August 20, 2012).
22.1						List of Issuers and Guarantor Subsidiaries (incorporated by reference to Exhibit 22.1 to the Form 10-Q, File No. 001-35700, filed by the Company with the SEC on August 5, 2021).
31.1*						Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*						Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1**						Certification of Chief Executive Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
32.2**						Certification of Chief Financial Officer of the Registrant pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101						The following financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Condensed Notes to Consolidated Financial Statements.
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).


*			Filed herewith.
**			The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
#			Schedules have been omitted pursuant to Item 601(a)(5) of Regulation S-K promulgated by the SEC. The Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request.


		DIAMONDBACK ENERGY, INC.

Date:	November 7, 2024	/s/ Travis D. Stice
		Travis D. Stice
		Chief Executive Officer
		(Principal Executive Officer)

Date:	November 7, 2024	/s/ Kaes Van’t Hof
		Kaes Van’t Hof
		Chief Financial Officer
		(Principal Financial Officer)



Date:	November 7, 2024	/s/ Kaes Van't Hof
		Kaes Van't Hof
		Chief Financial Officer