01—Abstract
Summary
Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.
Diamondback Energy, Inc. (FANG) filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
The report details significant strategic growth through major acquisitions, most notably the Endeavor Acquisition completed in September 2024. This acquisition substantially expanded Diamondback's acreage position and production base, primarily within the Permian Basin. The company continues to focus on capital discipline and operational efficiency, aiming to return capital to stockholders through its enhanced capital return program, which targets returning at least 50%a of quarterly free cash flow.
Diamondback is also actively managing its balance sheet, with a near-term goal to reduce net debt to $10 billionb. Looking ahead, Diamondback has a pending acquisition of Double Eagle, which is expected to further bolster its acreage and drilling inventory in the Midland Basin, and has outlined a robust capital expenditure budget for 2025 to support development activities.
02—Key points
Key Highlights
- Completed the significant Endeavor Acquisition in September 2024, expanding acreage and production.
- Currently pursuing the pending Double Eagle Acquisition, expected to close in Q2 2025.
- Maintained focus on capital discipline and operational efficiency, with a 2025 capital budget between $3.80 billion and $4.20 billion.
- Committed to returning at least 50% of quarterly free cash flow to stockholders through dividends and share repurchases.
- Actively managing debt levels with a near-term target to reduce net debt to $10 billion.
- Operating 19 drilling rigs and four completion crews at year-end 2024, with plans to average 13-19 rigs and 4-6 completion crews in 2025.
- Reported total net acreage of approximately 860,719 net acres in the Permian Basin as of December 31, 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 26, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $11.07B$8.41B | +31.6% |
| SG&A Expenses | $213.00M$150.00M | +42.0% |
| Operating Expenses | $6.67B$3.84B | +73.6% |
| Operating Income | $4.40B$4.57B | −3.8% |
| Interest Expense | $135.00M$159.00M | −15.1% |
| Net Income | $3.70B$3.34B | +10.9% |
| EPS (Basic) | $15.53$17.34 | −10.4% |
| EPS (Diluted) | $15.53$17.34 | −10.4% |
| Shares Outstanding (Basic) | 213.54M180.00M | +18.6% |
| Shares Outstanding (Diluted) | 213.54M180.00M | +18.6% |
05—Questions
Frequently Asked Questions
What were the key financial and operational highlights for Diamondback Energy in 2024?
In 2024, Diamondback Energy recorded net income of $3.3 billion, increased its annual base dividend to $4.00 per share, and repurchased $959 million of its common stock. The company drilled 372 gross horizontal wells and turned 410 gross operated horizontal wells to production. Total capital expenditures, excluding acquisitions, were $2.9 billion. The company also significantly expanded its acreage position through major acquisitions.
What is the status of the Double Eagle Acquisition?
Diamondback entered into a definitive agreement to acquire Double Eagle on February 14, 2025, for $3.0 billion in cash and approximately 6.9 million shares of common stock. The acquisition is expected to close in the second quarter of 2025, subject to customary closing conditions and regulatory approval. This transaction is expected to add approximately 67,700 gross (40,000 net) acres in the Midland Basin.
How is Diamondback Energy managing its debt and returning capital to shareholders?
Diamondback is focused on managing its debt, with a near-term target to reduce net debt to $10 billion and a long-term target of $6 billion to $8 billion, supported by free cash flow generation and planned non-core asset sales. The company's enhanced capital return program commits to returning at least 50% of quarterly free cash flow to stockholders through a combination of base dividends, variable dividends, and share repurchases.
What are Diamondback Energy's primary operating areas and production mix?
Diamondback's operations are primarily focused on the Permian Basin, with acreage concentrated in the Midland Basin (737,181 net acres) and Delaware Basin (123,218 net acres). As of December 31, 2024, its production mix was approximately 56% oil, 21% natural gas, and 23% natural gas liquids.
06—Continue