Skip to content

FANG · Diamondback Energy, Inc.

45 filings

10-Q

FANG 10-Q Quarterly Reports

Diamondback Energy, Inc. - 45 quarterly reports

Filing record · 2016–202610-K1210-Q328-K174

2026-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2026
Diamondback Energy, Inc. (FANG) reported strong financial results for the second quarter and first half of 2026. Total revenues surged to $5.56 billion for the quarter and $9.80 billion for the six months ended June 30, 2026, significantly up from the prior year periods, driven by higher average realized prices for oil and increased production volumes. Net income attributable to Diamondback Energy, Inc. was $1.88 billion for the quarter and $1.91 billion for the six months, demonstrating robust profitability. The company's operational highlights include achieving an average production of over 1 million barrels of oil equivalent per day (MBOE/d) for the six-month period and continued strong well completion activity in the Midland Basin. Diamondback also made significant progress in strengthening its financial position through debt reduction, including the repayment of a $550 million term loan and significant repurchases of its senior notes, resulting in substantial gains on extinguishment of debt. The company also continued its aggressive return of capital to shareholders through dividends and share repurchases, with an increase in the stock repurchase program authorization. While the company benefited from favorable commodity prices, particularly for oil, it also experienced challenges such as widening natural gas basis differentials in the Permian Basin. Management is focused on operational efficiencies, strategic capital allocation, and maintaining liquidity, with a strong balance sheet and ample availability under its credit facilities.
Aug 5, 2026
2026-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2026
Diamondback Energy, Inc. reported net income of $25 million for the first quarter of 2026, a significant decrease from $1.405 billion in the prior year period. This decline was largely driven by a substantial non-cash impairment charge of $1.4 billion related to oil and natural gas properties, a direct consequence of the decline in SEC commodity prices over the preceding twelve months. Despite this impairment, the company demonstrated resilience with $1.828 billion in net cash provided by operating activities, supported by higher production volumes and improved pricing for oil. Key financial activities during the quarter included strategic debt management, with significant repayments and opportunistic tender offers for senior notes in April 2026, demonstrating a focus on deleveraging. The company also continued its commitment to shareholder returns, declaring a dividend of $1.10 per share and repurchasing approximately $548 million of its common stock. Looking ahead, Diamondback has increased its 2026 production guidance by 3% and its capital budget by 4%, signaling confidence in the current commodity price environment and a focus on operational execution.
May 6, 2026
2025-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2025
Diamondback Energy, Inc. (FANG) reported strong financial performance for the nine months ended September 30, 2025, with net income attributable to the company reaching $3.12 billion, a significant increase from $2.26 billion in the prior year period. This growth was largely driven by a substantial increase in production volumes, up 79% year-over-year, fueled by strategic acquisitions including the Endeavor and Double Eagle transactions. Despite lower average commodity prices in 2025 compared to 2024, the company's operational efficiencies and expanded scale allowed it to overcome price headwinds and generate robust cash flows from operations of $6.42 billion for the period. Diamondback continues to actively manage its capital structure, repurchasing shares and strategically repaying debt, while also returning capital to shareholders through dividends. The company has made significant strategic moves throughout the reporting period, notably the acquisition of Double Eagle for $3.1 billion and Viper's acquisition of Sitio Royalties for $4.0 billion. Diamondback also completed a significant divestiture of its water assets to Deep Blue for $694 million upfront, with potential for further contingent consideration. Looking ahead, the company anticipates a potential material non-cash impairment of assets in the fourth quarter of 2025 due to the overall decline in commodity prices observed in the first three quarters of the year, although the exact impact remains uncertain.
Nov 5, 2025
2025-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2025
Diamondback Energy, Inc. reported a strong second quarter of 2025, driven by significant acquisition activity and robust operational performance. The company's net income reached $699 million, reflecting increased production volumes and strategic acquisitions, notably the Double Eagle Acquisition and the 2025 Drop Down Transaction with Viper. Looking ahead, Diamondback is actively managing its capital allocation strategy, prioritizing free cash flow generation through flat oil production targets and disciplined capital expenditures. The company also demonstrated a strong commitment to returning capital to shareholders, with substantial stock repurchases and declared dividends. The pending acquisition of Sitio Royalties by Viper remains a key strategic initiative, expected to further enhance Diamondback's mineral and royalty acreage position upon completion in the third quarter of 2025.
Aug 6, 2025
2025-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2025
Diamondback Energy, Inc. (FANG) reported a strong first quarter of 2025, with net income reaching $1.4 billion. This performance was driven by significantly increased production volumes, up 82% year-over-year, largely due to the acquisition of Endeavor Energy Resources. The company also benefited from a substantial gain on derivative instruments and improved pricing for natural gas and natural gas liquids. Financially, the company raised $1.2 billion through the issuance of 5.550% Senior Notes due 2035 and $1.2 billion from Viper's equity offering, primarily to fund the Double Eagle Acquisition completed in April 2025. Despite an increase in debt and capital expenditures, Diamondback maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases, including an increase in its annual base dividend to $4.00 per share. Subsequent events include the "2025 Drop Down" transaction with Viper and the repayment of Tranche A Loans.
May 7, 2025
2024-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2024
Diamondback Energy, Inc. (FANG) reported financial results for the third quarter ended September 30, 2024, marked by the significant completion of the Endeavor Energy Resources, LP acquisition on September 10, 2024. This transformative acquisition substantially expanded Diamondback's operational footprint in the Permian Basin, adding approximately 361,927 net acres and significantly increasing its proved oil and natural gas properties to $34.8 billion. Financially, the company generated net income of $659 million for the quarter, or $3.19 per diluted share, on total revenues of $2.645 billion. While the Endeavor acquisition drove a substantial increase in assets and revenue, it also led to increased merger and integration expenses and a higher debt load. The company's liquidity remains strong, with approximately $2.6 billion in available liquidity at quarter-end, comprising cash and credit facilities. Diamondback continues its commitment to returning capital to shareholders through dividends and share repurchases, including an increase in its repurchase authorization to $6.0 billion.
Nov 7, 2024
2024-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2024
Diamondback Energy, Inc. (FANG) reported strong financial performance for the second quarter and first six months of 2024, driven by increased oil sales and production volumes. The company generated significant net income and substantial operating cash flow, allowing for strategic investments and returns to shareholders. A key development is the ongoing progress towards the acquisition of Endeavor Energy Resources, LP, which is expected to close in the third or fourth quarter of 2024. This acquisition is being financed through a combination of cash, debt, and a significant stock issuance to Endeavor equityholders, which will lead to a substantial change in Diamondback's ownership structure. The company continues to demonstrate operational efficiency, with updated guidance for full-year 2024 reflecting higher production targets. Diamondback is also focused on returning capital to shareholders through dividends and share repurchases, aligning with its commitment to distribute at least 50% of free cash flow.
Aug 7, 2024
2024-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2024
Diamondback Energy, Inc. (FANG) reported solid financial results for the first quarter of 2024, demonstrating continued operational strength and strategic execution. The company generated significant net income and cash flow from operations, underscoring its efficiency in the Permian Basin. A key strategic move highlighted is the pending acquisition of Endeavor Energy Resources, LP, a transaction expected to significantly enhance Diamondback's scale and operational footprint, though it also introduces financing complexities and requires stockholder approval, which has been obtained. Financially, Diamondback maintained a strong liquidity position and continued its commitment to returning capital to shareholders through dividends and share repurchases. The company also made strategic progress in its Viper Energy subsidiary, selling a portion of its stake to fund the Endeavor acquisition. Despite some fluctuations in commodity prices and operational costs, Diamondback's management remains focused on capital efficiency and disciplined development. Investors should monitor the progress and integration of the Endeavor acquisition, as well as the company's ongoing capital allocation strategy.
May 2, 2024
2023-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2023
Diamondback Energy, Inc. (FANG) reported its financial results for the third quarter and nine months ended September 29, 2023. The company demonstrated solid operational performance, with revenues for the nine months decreasing to $6.1 billion from $7.6 billion in the prior year, primarily due to lower commodity prices, though production volumes increased by 15% year-over-year, driven by acquisitions. Net income for the nine months was $2.3 billion, down from $3.5 billion in the same period last year. The company continued its commitment to returning capital to shareholders, increasing its annual base dividend and repurchasing shares. Diamondback also actively managed its asset portfolio through strategic divestitures and acquisitions, including a joint venture for water assets and the acquisition of Lario Permian. The company maintained a strong liquidity position with substantial cash and an undrawn credit facility.
Nov 8, 2023
2023-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2023
Diamondback Energy, Inc. (FANG) reported its second-quarter 2023 financial results, showcasing a robust operational performance despite a challenging commodity price environment. The company generated $1.92 billion in total revenues for the quarter, with net income attributable to common stockholders reaching $556 million, or $3.05 per diluted share. This demonstrates strong profitability driven by effective cost management and strategic operational execution in the Permian Basin. Financially, Diamondback Energy maintained a solid balance sheet with total assets of $27.6 billion. The company actively returned capital to shareholders by increasing its annual base dividend to $3.36 per share and repurchasing approximately $321 million of its common stock during the quarter. Furthermore, Diamondback Energy successfully executed on its divestiture strategy, exceeding its non-core asset sale target and generating significant proceeds that were used for debt reduction and general corporate purposes, indicating a focus on optimizing its asset portfolio and enhancing financial flexibility.
Aug 3, 2023
2023-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2023
Diamondback Energy, Inc. (FANG) reported its first quarter 2023 financial results, showcasing solid operational performance despite a decrease in revenue compared to the prior year, largely driven by lower commodity prices. Net income for the quarter was $712 million, or $3.88 per diluted share, reflecting strong operational execution. The company continued its capital allocation strategy by increasing its annual base dividend to $3.20 per share and repurchasing $332 million of its common stock. Diamondback also made significant strategic moves, including closing the Lario Acquisition in January 2023, which expanded its acreage position in the Permian Basin. Liquidity remains robust, with approximately $1.0 billion in available capacity under its credit facilities as of March 31, 2023, positioning the company to navigate the current commodity price environment and execute its growth strategy.
May 3, 2023
2022-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2022
Diamondback Energy, Inc. (FANG) reported a strong third quarter of 2022, with net income of $1.2 billion, or $6.72 per diluted share. This performance was driven by robust revenues from oil, natural gas, and natural gas liquids, totaling $2.4 billion for the quarter. The company demonstrated effective operational management, maintaining flat oil production while generating significant free cash flow, which was allocated towards debt repayment and shareholder returns. Financial highlights include substantial cash flow from operations of $4.88 billion for the nine months ended September 30, 2022, and a strengthened balance sheet with reduced long-term debt. Diamondback Energy continued its commitment to shareholder returns by declaring a quarterly dividend of $2.26 per share and repurchasing $472 million of its common stock during the third quarter. The company also strategically managed its debt, issuing new notes and redeeming existing ones. Looking ahead, Diamondback Energy is focused on operational excellence, capital discipline, and returning capital to shareholders while navigating commodity price volatility and inflationary pressures.
Nov 8, 2022
2022-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2022
Diamondback Energy, Inc. (FANG) reported a strong financial performance for the quarter ending June 30, 2022, driven by significantly higher revenues compared to the prior year. The company generated substantial net income, demonstrating robust operational efficiency and benefiting from favorable commodity prices. The upstream segment remains the primary driver of revenue, with consistent production volumes from both the Midland and Delaware Basins. Financially, Diamondback Energy showcased strong cash flow generation, which was utilized for debt reduction, dividend payments, and share repurchases. The company maintained a healthy liquidity position and actively managed its debt profile. Management remains focused on operational excellence, cost management, and returning capital to shareholders through a combination of dividends and share buybacks, while navigating inflationary pressures and market volatility.
Aug 3, 2022
2022-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2022
Diamondback Energy, Inc. (FANG) reported a strong first quarter for 2022, demonstrating significant financial and operational improvements. The company saw a substantial increase in total revenues to $2.4 billion, up from $1.2 billion in the prior year's first quarter, driven by higher commodity prices and increased production volumes. Net income surged to $779 million, resulting in a diluted EPS of $4.36, a marked improvement from $220 million and $1.33, respectively, in Q1 2021. Operationally, Diamondback continued its development activities, drilling and completing a significant number of horizontal wells in the Permian Basin. The company also focused on strengthening its balance sheet by repaying substantial amounts of debt, including the redemption of $1.5 billion in senior notes. Management remains committed to capital discipline, planning to hold oil production flat for 2022 and prioritizing debt reduction and shareholder returns over aggressive expansion.
May 5, 2022
2021-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2021
Diamondback Energy, Inc. (FANG) reported strong financial performance for the nine months ended September 30, 2021, a significant turnaround from the prior year, driven by a substantial increase in revenues and a substantial decrease in costs and expenses. This improvement is largely attributed to the recovery in oil and natural gas prices and the successful integration of strategic acquisitions, notably the Guidon and QEP transactions. For the nine months ended September 30, 2021, the company generated net income of $1.225 billion, a dramatic improvement from a net loss of $3.916 billion in the same period of 2020. Revenues more than doubled to $4.775 billion from $2.044 billion year-over-year. The company also demonstrated effective cost management, with total costs and expenses significantly reduced. This financial strength has enabled Diamondback to strengthen its balance sheet through debt reduction and to initiate a substantial $2 billion stock repurchase program. The company's commitment to shareholder returns is further evidenced by its declared quarterly dividend. The divestiture of non-core Williston Basin assets in October 2021 also contributed to a stronger financial position. Looking ahead, Diamondback Energy plans to maintain flat oil production levels while exercising capital discipline, focusing on free cash flow generation, debt reduction, and returning capital to shareholders through dividends and share repurchases. The company's strategic acquisitions and operational efficiency position it well to navigate the dynamic energy market.
Nov 4, 2021
2021-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2021
Diamondback Energy, Inc. (FANG) reported a strong financial performance for the second quarter and first half of 2021, driven by significantly higher commodity prices and the successful integration of recent acquisitions. Total revenues surged due to the recovery in oil and gas prices from the lows experienced in 2020. The company demonstrated improved operational efficiency, evidenced by increased production volumes and effective cost management. Financially, Diamondback saw substantial increases in net income and earnings per share compared to the prior year's periods, which were impacted by significant impairments. The company actively managed its balance sheet, utilizing strong operating cash flows for debt reduction and returning capital to shareholders through dividends. Strategic divestitures of non-core assets and acquisitions in core Permian Basin areas position the company for continued growth and operational focus.
Aug 5, 2021
2021-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2021
Diamondback Energy, Inc. reported a strong first quarter in 2021, demonstrating significant recovery and growth following a challenging prior year. The company achieved substantial improvements in revenues and profitability, driven by higher commodity prices and the successful integration of recent acquisitions, notably the QEP Resources merger. Significant debt management efforts were undertaken, including a large notes offering and the repurchase of existing debt, aimed at optimizing the capital structure and reducing interest expenses. Operationally, Diamondback maintained robust production levels despite minor weather-related disruptions, continued its development program by drilling and completing numerous wells, and strategically divested non-core assets. The company's financial position was strengthened by positive cash flows from operations, allowing for continued investment in its core assets while also returning capital to shareholders through dividends. The forward-looking outlook appears positive, supported by strategic acquisitions, divestitures, and a focus on operational efficiency and deleveraging.
May 7, 2021
2020-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2020
Diamondback Energy, Inc. (FANG) reported its third-quarter and year-to-date results for 2020, a period heavily impacted by the COVID-19 pandemic and the resulting collapse in commodity prices. The company posted a significant net loss for the quarter, largely driven by a substantial non-cash impairment charge of $1.5 billion related to oil and natural gas properties due to lower commodity prices. Despite the challenging operating environment, Diamondback demonstrated resilience through cost management and strategic operational adjustments. The company has hedged a significant portion of its remaining 2020 oil production and a portion of its 2021 production to mitigate price volatility. While capital expenditures were reduced, the company maintained production levels and is focusing on generating free cash flow, managing debt, and returning capital to shareholders through its dividend. The company ended the quarter with a strong liquidity position, characterized by substantial availability under its revolving credit facility.
Nov 5, 2020
2020-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2020
Diamondback Energy, Inc. (FANG) reported its second quarter 2020 results amidst significant industry headwinds from the COVID-19 pandemic and a sharp decline in oil prices. The company recorded a substantial non-cash impairment charge of $2.5 billion for the quarter ($3.5 billion year-to-date) primarily due to the "ceiling test" related to oil and natural gas property valuations under the full cost accounting method, directly impacting net income. Despite a reported net loss of $2.4 billion for the quarter, the company's operating cash flow remained robust at $1.17 billion for the first six months of 2020, reflecting strong operational execution and cost management. In response to market conditions, Diamondback implemented significant operational adjustments, including a reduction in drilling and completion activity, curtailment of oil production, and a decrease in capital expenditures. The company is focused on preserving liquidity and maintaining a strong balance sheet, evidenced by suspending its share repurchase program. Diamondback also demonstrated a commitment to returning capital to shareholders by declaring a quarterly dividend of $0.375 per share for the second quarter of 2020.
Aug 10, 2020
2020-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2020
Diamondback Energy, Inc. (FANG) reported a net loss of $272 million for the first quarter of 2020, a significant shift from a net income of $43 million in the prior year's quarter. This downturn was primarily driven by the severe decline in oil and natural gas prices experienced in Q1 2020, exacerbated by the COVID-19 pandemic and OPEC+ production decisions. This price collapse necessitated a substantial non-cash impairment charge of $1.0 billion related to oil and natural gas properties. Despite the challenging commodity price environment, the company demonstrated resilience by maintaining production levels, with oil production increasing by 12% year-over-year. FANG took proactive measures to mitigate the impact of low prices, including significantly reducing its capital budget, ceasing completion operations for a period, and implementing production curtailments. The company also highlighted strong liquidity, with approximately $1.8 billion available under its revolving credit facility and $0.1 billion in cash on hand as of March 31, 2020. Management believes these measures and liquidity position are sufficient to navigate the current market conditions through year-end 2020.
May 8, 2020
2019-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2019
Diamondback Energy, Inc. (FANG) reported strong financial and operational performance for the third quarter and first nine months of 2019. Revenue significantly increased year-over-year, driven by substantial growth in oil and natural gas production volumes, despite slightly lower average commodity prices. The company demonstrated effective cost management, with lease operating expenses and production taxes per BOE showing favorable trends or improvements. Significant investments were made in capital expenditures, primarily focused on drilling and completion activities in the Permian Basin, which are expected to drive continued production growth. Diamondback also returned capital to shareholders through dividends and a substantial share repurchase program, underscoring a commitment to shareholder value.
Nov 6, 2019
2019-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2019
Diamondback Energy's Q2 2019 10-Q shows a company in rapid transformation following the Energen merger (closed November 2018), with production nearly tripling year-over-year. Q2 2019 total revenues rose to $1.021 billion from $527 million, and average daily production reached 280,365 BOE/d versus 112,592 BOE/d a year earlier. Net income attributable to Diamondback fell to $349 million from $219 million on a percentage basis up, but six-month net income attributable to the company dropped to $359 million from $382 million, reflecting a $174 million derivative loss, higher DD&A of $681 million, and rising interest expense of $95 million. Average realized oil pricing fell to $54.41/Bbl from $61.56/Bbl, and realized natural gas prices turned negative in Q2 at $(0.41)/Mcf, though management expects realizations of roughly 95% of WTI for the rest of 2019 and about 100% in 2020. Balance sheet capacity improved meaningfully. Cash rose to $326 million, and the revolving credit facility's borrowing base was increased to $3.4 billion, with $861 million available under the $2.5 billion elected commitment. Total long-term debt was $4.47 billion, roughly flat year over year. Capital returns were initiated through a $2 billion share repurchase program (with $1.9 billion remaining) and a quarterly dividend of $0.1875 per share. Financing was supported by $341 million from Viper's unit offering and $720 million from the Rattler Midstream IPO, which expanded non-controlling interests to $1.45 billion. Looking forward, the company plans a 2019 capital budget of $2.7 to $3.0 billion for drilling and infrastructure, running 23 rigs and eight completion crews, and has announced several portfolio actions: the July 2019 sale of non-core Energen assets for $285 million, and a pending drop-down of mineral interests to Viper for $700 million in value. Investors should weigh strong growth and capital return momentum against lower realized prices, widening differentials in Q2, rising leverage costs, and dependence on continued drilling execution.
Aug 9, 2019
2019-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2019
Diamondback Energy's first-quarter 2019 10-Q shows a company in rapid expansion following the November 2018 all-stock Energen merger. Total revenues rose to $864 million from $479 million, and average daily production grew about 156% year over year to 262,633 BOE/d. Oil, natural gas and NGL revenues increased 81% to $842 million, driven by volume growth, partly offset by lower realized prices. Realized oil fell to $46.12/Bbl from $61.64/Bbl, and the company now expects roughly 88% to 92% of WTI realizations for the rest of 2019, improving to about 100% of WTI in 2020 as legacy fixed-differential contracts roll off. Net income attributable to Diamondback fell sharply to $10 million, or $0.06 per diluted share, from $163 million a year earlier. The decline reflects a $285 million non-cash unrealized mark-to-market loss on open derivatives, which increased with the rise in forward prices, along with depreciation, depletion and amortization that rose to $322 million from $115 million and interest expense that tripled to $46 million. Cash flow from operations was $377 million, up from $339 million, and capital spending on drilling and infrastructure was $569 million. Balance sheet leverage increased, with long-term debt at $4.67 billion and a $2 billion drawn balance on the $3 billion elected revolver, against cash of $126 million. Subsequent events are important for investors: the board approved a $2 billion share repurchase program through 2020, the quarterly dividend was raised to $0.1875 per share, and two agreements to sell roughly 103,000 non-core Energen acres for $322 million were signed, with closing expected by July 1, 2019. The 2019 capital budget is $2.7 billion to $3.0 billion, and the company is running 23 rigs.
May 10, 2019
2018-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2018
Diamondback Energy's Q3 2018 10-Q shows a company in rapid growth mode, with total revenues rising 78% year over year to $538.0 million for the quarter and net income attributable to Diamondback reaching $157.1 million ($1.59 per diluted share), versus $73.0 million a year earlier. Oil, natural gas and NGL revenues rose about 76% to $527.1 million, driven by average daily production up 44.6% to 122,975 BOE/d and a combined realized price of $46.59/BOE (vs. $38.25). Operating cash flow for the first nine months reached $1.15 billion, up from $638 million, and cash ended the period at $508 million. Balance-sheet leverage increased, with long-term debt rising to $2.33 billion from $1.48 billion, largely from the $750 million add-on to the 2024 Senior Notes, and the company had $1.0 billion of undrawn revolver availability at quarter-end. Realized prices were weighed down by widening Midland differentials, with oil realizing about 80% of NYMEX in the quarter versus 95% a year earlier, and hedging losses of $38.5 million on settled derivatives also reduced reported results. The filing is dominated by pending and recently closed transactions. The all-stock Energen merger (about $9.2 billion including $831 million of assumed net debt) was expected to close at the end of November 2018, and the Ajax Resources acquisition ($900 million cash plus about 2.6 million shares) and the ExL/EnergyQuest acquisitions ($312.5 million) closed on October 31, 2018, after the balance sheet date. Viper Energy Partners, the consolidated mineral subsidiary in which Diamondback owns about 59%, completed a tax-status change and a unit offering, and Diamondback sold mineral interests to it in a $175 million drop-down. Management reported a 2018 drilling and infrastructure budget of $1.5 to $1.6 billion, 11 to 14 rigs, and a DrillCo arrangement with CEMOF to fund up to 85% of costs on new wells, which could reduce Diamondback's capital requirements. Investors should weigh the strong operating momentum against higher leverage, the cost of integrating large acquisitions, and continued exposure to Permian pricing differentials and commodity volatility. The company also reported that disclosure controls were effective as of September 30, 2018, with no changes in internal control over financial reporting during the quarter. Legal proceedings were described as routine and not expected to be material.
Nov 7, 2018
2018-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2018
Diamondback Energy's Q2 2018 10-Q shows a company in rapid growth mode. Total revenues rose 95% year-over-year to $526.3 million for the quarter, and average daily production reached 112,592 BOE/d, up 46.3% from 76,977 BOE/d. Oil sales were $460.4 million, about 89% of revenue. Net income attributable to Diamondback was $219.1 million ($2.22 per diluted share), versus $158.4 million a year earlier. Results were helped by a $72.7 million discrete tax benefit tied to Viper Energy Partners' change to taxable status, and were partly offset by an $58.6 million loss on derivatives, reflecting hedge settlements as oil prices rose. The balance sheet expanded meaningfully. Total assets reached $8.95 billion, up from $7.77 billion at year-end 2017, and long-term debt rose to $1.97 billion. The company issued $300 million of additional 5.375% 2025 Senior Notes in January, and the revolver was $321.5 million drawn against a $1.0 billion elected commitment. Operating cash flow nearly doubled to $764.4 million for the first half, while capital spending on drilling was $650.1 million, and the company also spent $354.3 million on leasehold and mineral acquisitions. Cash flow covered the development program, but acquisition activity and capital investments remain significant drivers of debt. Looking ahead, management announced two pending transactions in July 2018: the $900 million cash plus about 2.6 million share acquisition of Ajax Resources assets (about 25,493 net acres, roughly 12,100 BOE/d of production), expected to close in late October 2018, and a $175 million drop-down of mineral interests to Viper. The company operated 11 rigs, with plans to add two more in Q3 2018, and maintained a 2018 drilling and infrastructure budget of $1.4 to $1.5 billion. Leverage remains moderate, with covenants requiring net debt to EBITDAX of no more than 4.0x, but investors should watch the cash funding of Ajax, the sensitivity of earnings to commodity hedges, and rising oilfield service costs.
Aug 9, 2018
2018-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2018
Diamondback Energy's Q1 2018 10-Q shows a company in strong growth mode. Total revenues rose about 104% year over year to $480.2 million, driven by a 66.5% increase in average daily production to 102,607 BOE/d and higher realized prices (average realized price per BOE of $50.55 versus $41.93). Net income attributable to Diamondback was $162.8 million, or $1.65 per diluted share, compared with $136.3 million, or $1.46, a year earlier. Operating cash flow more than doubled to $339.4 million, and the company ended the quarter with $72.5 million of cash. The first quarter also brought a $32.3 million cash loss on settled derivatives, which weighed on other income, and a 2018 capital budget of $1.3 to $1.5 billion, which is about 60% above the 2017 budget. The balance sheet grew in both assets and leverage. Long-term debt rose to $1.70 billion from $1.48 billion, following a $300 million add-on to the 5.375% 2025 senior notes and a larger balance on the Viper credit facility, and total assets reached $8.22 billion. Diamondback's revolving credit facility had $166.0 million drawn against a $1.0 billion elected commitment, with $834.0 million available. The lenders' recommended borrowing base increase to $2.0 billion is subject to approval by other lenders. The company's effective tax rate rose to 20.9% from 1.4%, a change that reflects higher pre-tax income. Net income attributable to non-controlling interest also rose, to $15.3 million, reflecting Viper Energy Partners' results. Viper's tax status changed to a taxable corporation effective May 10, 2018, a move the company says should not be taxable to Diamondback. For investors, the central story is operational scale and cash generation in the Permian Basin. Management reported 41 gross operated horizontal wells drilled and 35 turned to production during the quarter, and it expects to run 10 to 12 drilling rigs for the rest of 2018. The key watch items are rising oilfield service costs, the Q1 hedging losses, and how much of the new production growth is funded from cash flow versus debt. The company also reports about 3,800 gross horizontal locations that it considers economic at $60 per barrel WTI.
May 10, 2018
2017-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2017
Diamondback Energy's Q3 2017 10-Q shows a company in rapid growth mode, driven by the February 2017 Delaware Basin acquisition (about $1.74 billion cash plus 7.69 million shares, roughly $2.5 billion total consideration). Q3 2017 total revenue rose to $301.3 million from $142.1 million a year earlier, and average daily production reached 85,029 BOE/d, up 89% year over year. Oil was about 73% of production. Net income attributable to Diamondback was $73.0 million ($0.74 per diluted share) versus a loss in Q3 2016, and the nine-month figure was $367.7 million. Lease operating expense fell to $4.15 per BOE from $5.37, and cash operating costs per BOE declined, which supports margin expansion. The balance sheet expanded substantially but remains conservative. Total assets reached $7.29 billion, and long-term debt was $1.26 billion, including $1.0 billion of senior notes and $234.5 million drawn on the revolver against a $1.5 billion borrowing base with a $750 million elected commitment. Cash fell from $1.67 billion at year-end 2016 to $30 million as acquisition spending was funded. The company reports it was in compliance with all financial covenants. A fall 2017 borrowing base redetermination is pending, with proposals to raise the Diamondback facility to $1.8 billion and the Viper facility to $400 million. Key watch items include a derivative loss of $50.6 million in Q3 2017 from mark-to-market changes on open hedges, a 2017 capital budget narrowed to $850-900 million, and an unhedged exposure to oil price movements, with a 10% forward-curve shift moving the net derivative position by about $61.6 million. The company's concentration in a few purchasers (Shell, Koch, Enterprise) and its reliance on Viper Energy Partners, which it consolidates and owns about 64% of, are also relevant for investors.
Nov 7, 2017
2017-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2017
Diamondback Energy's Q2 2017 10-Q shows a company in rapid growth mode, driven by the February 2017 Delaware Basin acquisition and a sharp recovery in oil prices. Total revenues for the quarter rose to $269.4 million, up 140% from $112.5 million a year earlier, and average daily production reached 76,977 BOE/d, up 109% year over year. Net income attributable to Diamondback was $158.4 million, or $1.61 per diluted share, compared with a net loss of $155.5 million in the prior-year quarter, which included a $168.4 million impairment. Operating cash flow for the first six months was $394.4 million, versus $121.8 million a year earlier. The balance sheet was transformed by the $2.6 billion Delaware Basin acquisition, which was funded with $1.74 billion in cash and 7.69 million shares. Total assets grew to $6.78 billion from $5.35 billion at year-end 2016, and stockholders' equity rose to $4.82 billion. Cash fell from $1.67 billion to $16.6 million as the acquisition closed. Total debt was $1.15 billion, and the company's only revolver borrowings were $84.0 million against a $750 million elected commitment, so near-term liquidity remains ample. Net debt is modest relative to the asset base, though the company has taken on more leverage through the senior notes. The key considerations for investors are execution on the enlarged acreage position (about 191,000 net Permian acres), the 2017 capital budget of $800 million to $950 million that is set to run nine rigs and three completion crews, and the company's sensitivity to commodity prices, since oil made up about 89% of revenue. Hedging is in place through 2019, with a net derivative asset of $46.1 million at June 30, 2017. Subsequent events include the July 2017 Viper Energy Partners equity offering, which raised about $232.6 million and increased Diamondback's stake in Viper to roughly 64%, and the closing of the senior notes exchange offer.
Aug 2, 2017
2017-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2017
Diamondback Energy's Q1 2017 10-Q shows a company in rapid expansion. Revenue rose 169% year over year to $235.2 million, driven by a 61% increase in average daily production to 61,610 BOE/d and a 67% increase in realized combined prices to $41.93/BOE. Net income attributable to Diamondback was $136.3 million, or $1.46 per diluted share, compared with a net loss of $32.9 million in the prior-year quarter. The swing reflects higher volumes and prices, a $37.7 million gain on derivatives, and the absence of the $30.8 million impairment recorded in Q1 2016. Operating cash flow nearly tripled to $175.9 million. The defining event of the quarter was the February 28, 2017 acquisition of Delaware Basin assets from Brigham Resources for $1.74 billion in cash plus 7.69 million shares, a total consideration of about $2.6 billion. The deal added roughly 80,339 net acres, bringing the Permian net acreage position to approximately 191,727 net acres. Capital spending on development was $116.2 million, but leasehold acquisitions totaled $1.76 billion, so net cash used in investing was $1.83 billion. The company funded the cash cost largely with existing cash, including the December 2016 note and equity offerings, leaving cash of $37.4 million at quarter-end versus $1.67 billion at year-end 2016. Balance sheet leverage moved modestly. Total long-term debt was $985.8 million, consisting of $1.0 billion in senior notes, with no borrowings under the Diamondback revolver. The revolver had a $1.0 billion borrowing base and a $500 million elected commitment, which the company increased to $750 million after quarter-end, with a recommended borrowing base increase to $1.5 billion. Equity grew to $5.12 billion, reflecting the share issuance for the acquisition. Management reiterated a 2017 drilling and infrastructure budget of $800 million to $1.0 billion and plans to run eight rigs. The filing notes that the 2017 budget does not include acquisition spending, and it highlights rising oilfield service costs as a watch item.
May 4, 2017
2016-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2016
Diamondback Energy's Q3 2016 10-Q shows a company in recovery mode with a much stronger balance sheet than a year earlier. Total revenues rose 27% year over year to $142.1 million in the third quarter, driven by a 32% increase in average daily production to 44,923 BOE/d, although realized prices fell (combined $34.39/BOE vs. $35.70). Net loss attributable to Diamondback narrowed sharply to $2.2 million ($0.03 per share) from $156.8 million a year earlier, largely because the impairment charge fell to $46.4 million from $273.7 million and the company recorded no income tax benefit this quarter. For the nine months, the company still posted a $190.6 million net loss after a $245.5 million non-cash impairment, reflecting the lingering effects of the 2016 commodity price collapse. The balance sheet and liquidity picture improved significantly. Cash rose to $167.3 million from $20.1 million at year-end 2015, supported by roughly $900.7 million of equity raised in January and July 2016 and a Southern Delaware Basin leasehold acquisition for $560 million closed September 1. Long-term debt was modest at $497.8 million, with $450 million of 7.625% senior notes and $54.5 million drawn on the Viper Energy Partners facility. Total stockholders' equity reached $2.8 billion, and the company had no borrowings under its $500 million committed revolving facility. Subsequent to quarter-end, Diamondback issued $500 million of 4.75% senior notes due 2024 and tendered for most of its higher-coupon 2021 notes, which should lower interest costs going forward. Investors should weigh several risks. Management noted that if commodity prices remain at current low levels, an additional non-cash full-cost impairment in Q4 2016 is possible. The company's revenue is heavily concentrated in oil (about 89% of Q3 revenue), with Shell Trading accounting for 50% of nine-month revenue. Management is also ramping activity, operating five horizontal rigs and two completion crews, and has signaled a possible sixth rig in early 2017, with the mix of hedges on 2017 volumes and recent collar contracts providing partial price protection.
Nov 8, 2016
2016-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2016
Diamondback Energy's Q2 2016 10-Q shows a company still under pressure from the commodity downturn but with a clearly improving operating and financing picture. Net loss attributable to Diamondback for the three months ended June 30, 2016 was $155.5 million ($2.17 per share), driven mainly by a $168.4 million non-cash full cost impairment, while total revenues fell 6% year over year to $112.5 million despite production rising 23% to 36,841 BOE/d. Realized oil prices fell to $41.88/Bbl from $53.49, and the company recorded a $199.2 million impairment for the first half of 2016. Cash-based lease operating expense per BOE declined sharply to $5.57 from $7.51, and cash from operations for the six months was $121.8 million versus $199.8 million a year earlier. The balance sheet strengthened materially. Cash rose to $218.8 million from $20.1 million at year-end 2015, largely due to a January 2016 equity raise of about $254.5 million, and the revolver was undrawn at June 30, 2016 with $500.0 million of commitments available. Total debt was $494.5 million, including $450 million of 7.625% Senior Notes due 2021 and $51.5 million drawn under the Viper (Partnership) facility. Subsequent events are material: Diamondback agreed to acquire Southern Delaware Basin leasehold for $560 million, expected to close in September 2016, and completed a July 2016 equity offering of about $551.8 million. Viper also made several acquisitions and an August 2016 unit offering. Investors should weigh the improved liquidity and operating efficiency against continued volatility in commodity prices and the management warning that a further non-cash impairment is possible in the third quarter of 2016 if prices remain at current low levels. The company's 2016 drilling budget was raised to $350–$425 million, and it now operates four horizontal rigs and two completion crews.
Aug 9, 2016
2016-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2016
Diamondback Energy's first-quarter 2016 10-Q shows a company under pressure from the commodity price collapse but managing it with financial discipline. Revenue fell 14% year over year to $87.5 million, driven by a 32% decline in realized prices, even though production rose 25% to 38,308 BOE/d. The company recorded a $30.8 million non-cash full cost ceiling test impairment, which drove a net loss attributable to Diamondback of $32.9 million, or $(0.46) per share, versus net income of $5.8 million a year earlier. Management warned that if prices remain at current low levels, an additional impairment is likely in the second quarter of 2016. Balance sheet strength improved meaningfully. A January 2016 equity offering of 4.6 million shares raised about $254.5 million, pushing cash to $235.8 million at quarter end. The company had no borrowings under its $500 million elected commitment on the revolver, though the lenders' agent recommended cutting the borrowing base from $750 million to $700 million. Total debt was about $485.6 million, including $450 million of 7.625% senior notes due 2021 and $43 million drawn on the Viper Energy Partners facility, which is also expected to face a borrowing base reduction to $175 million. Total equity rose to $2.34 billion. Operationally, Diamondback drilled 16 gross horizontal wells and completed eight, and held its third horizontal rig while preparing a possible fourth in the third quarter. Management cut 2016 drilling and infrastructure capital to $250-375 million, a 26% reduction from 2015, and said cash flow plus revolver borrowings should fund operations through year-end 2016. Lower prices also reduced lease operating expenses per BOE by about 36%, which partly cushioned the impact on margins.
May 5, 2016
2015-Q3-A
Diamondback Energy, Inc. Quarterly Report (Amendment) for Q3 Ended Sep 30, 2015
Diamondback Energy, Inc. (FANG) filed an amendment to its 10-Q report for the period ending September 29, 2015, on November 16, 2015. This filing primarily details the exhibits associated with the report. Investors should note that the core financial and operational data for the quarter ending September 29, 2015, would have been presented in the original 10-Q filing referenced by these exhibits. This amendment largely serves to provide supporting documentation and certifications. Key exhibits referenced include various corporate governance documents such as the Amended and Restated Certificate of Incorporation and Bylaws, as well as agreements like the Registration Rights Agreement and Investor Rights Agreement. Significant operational details are expected to be found within the incorporated Lease Amendments (Exhibits 10.1 through 10.7), which pertain to lease agreements with Fasken Midland, LLC and Diamondback E&P LLC. These amendments, spanning from July 2014 to June 2015, likely reflect changes in the company's leasing arrangements and operational footprint during that period.
Nov 17, 2015
2015-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2015
Diamondback Energy's Q3 2015 10-Q shows a company under heavy pressure from the oil price collapse but still growing production sharply. Total revenues fell 20% year over year in the quarter to $111.9 million, as average realized oil prices dropped to $44.12/Bbl from $88.63/Bbl. Production rose 65% to 34,082 BOE/d, driven by drilling and the 2015 Midland Basin acquisitions, which mostly offset the price decline. The quarter's net loss attributable to Diamondback was $156.8 million, or $(2.40) per share, driven by a $273.7 million full-cost ceiling test impairment. For the nine months, the company recorded $597.2 million of impairments and a $363.2 million net loss attributable to the company. Balance sheet and liquidity are comparatively solid. Total debt fell to $489.0 million from $673.5 million at year-end 2014, and cash was $43.8 million. The company's revolver had $10.0 million drawn against a $500.0 million elected commitment (a $725.0 million borrowing base), and the $450.0 million 7.625% senior notes are due 2021. Equity offerings raised roughly $650.7 million in the first nine months, which funded $425.5 million of leasehold acquisitions and $326.5 million of drilling and infrastructure capex. Operating cash flow was $339.6 million for the nine months, and the company stated that cash flow and revolver availability should fund operations through year-end 2015. The main investor concern is the forward outlook. Management said that if prices stay at or near current lows, it expects an additional non-cash full-cost impairment in Q4 2015. Hedges cover only part of 2015 production, with swaps for October-December 2015 at roughly $84-$91/Bbl on about 920,000 Bbl. The company also cut its 2015 capex range to $400-$450 million, released one of its five rigs in October 2015, and expects to complete 60-70 gross horizontal wells this year. Investors will be watching whether the company can sustain production growth and its lower cost structure without further write-downs.
Nov 6, 2015
2015-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2015
Diamondback Energy, Inc. (FANG) reported its second-quarter 2015 financial results, highlighting significant operational growth alongside a substantial non-cash impairment charge. The company's production increased significantly year-over-year, driven by recent acquisitions and increased drilling activity in the Permian Basin. Despite the revenue growth from higher volumes, lower commodity prices negatively impacted overall revenues, leading to a net loss for the quarter and the first half of the year. A key development during the quarter was the recording of a $323.5 million pre-tax non-cash impairment of oil and gas properties due to the sharp decline in oil prices. This significantly impacted profitability, resulting in a reported net loss of $211.35 million for the three months ended June 30, 2015. Financially, the company maintained liquidity through a combination of operating cash flows, borrowings under its credit facility, and proceeds from recent equity offerings, with significant capital expenditures directed towards property acquisitions and development drilling.
Aug 10, 2015
2015-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2015
Diamondback Energy, Inc.'s (FANG) first-quarter 2015 report shows a significant increase in production volumes, up 126% year-over-year, reaching 30,636 BOE/d. This growth was primarily driven by acquisitions and increased drilling activity. Despite a substantial decrease in average realized prices for oil, natural gas, and NGLs due to falling commodity prices, total revenues only saw a modest 3% increase, reaching $101.4 million. This resilience in revenue was largely due to the significant increase in production volumes, which offset the price declines. The company's financial position remains robust, with total assets of approximately $3.1 billion and a strong liquidity position, bolstered by a $2 billion credit facility. Management is focused on maximizing return on capital and managing debt, with a strategic outlook on growing reserves and production through development and acquisitions.
May 7, 2015
2014-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2014
Diamondback Energy's Q3 2014 10-Q shows a company in rapid growth mode. Revenue for the quarter reached $139.1 million, up 141% year over year, driven by production that rose 178% to about 20,636 BOE/d, with roughly 75% of output being oil. Net income attributable to Diamondback was $43.7 million, or $0.79 per diluted share, versus $14.6 million a year earlier. Growth came from both drilling and acquisitions, most notably the $523.3 million September 2014 Permian Basin leasehold purchase and the $292.2 million February 2014 Martin County acquisitions. Total assets grew to $2.82 billion from $1.52 billion at year-end 2013. The growth was funded largely with equity. Diamondback raised roughly $1.1 billion in net proceeds from common stock offerings in February and July 2014, and its subsidiary Viper Energy Partners LP completed an IPO in June 2014 and a follow-on offering in September 2014. Long-term debt rose to $590 million, consisting of $450 million of 7.625% senior notes due 2021 and $140 million drawn on the revolver. The company reported it was in compliance with its financial covenants. Interest expense more than tripled to $9.8 million for the quarter, and cash interest paid for the nine months was $12.7 million. The filing also flags a notable shift in the commodity backdrop. Management noted oil prices had fallen from above $105 per Bbl in June 2014 to below $80 per Bbl at the time of filing, alongside rising service costs. Management said it may drill fewer wells in 2015 than previously planned and may hold or reduce its rig count rather than add rigs, with the stated aim of maximizing returns and limiting debt. The company added new fixed-price oil swaps covering 2015 and early 2016 volumes, which provide partial protection. Investors will want to watch how quickly well costs, capital efficiency, and leverage evolve as the company balances growth against the weaker price deck.
Nov 6, 2014
2014-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2014
Diamondback Energy's Q2 2014 10-Q shows a company in rapid growth mode in the Permian Basin's Wolfberry play. Total revenues rose 180% year over year to $127.0 million for the quarter, and average daily production nearly tripled to about 17,836 BOE/d (roughly 75% oil). Net income attributable to Diamondback was $27.8 million for the quarter ($0.54 diluted EPS), up from $14.5 million a year earlier. Growth was driven by drilling activity and acquisitions, including $292.2 million of Martin County leasehold purchases in February 2014. Full-cost DD&A of $24.66 per BOE and rising interest expense (from the $450 million 7.625% senior notes) were significant cost pressures. Balance sheet and liquidity strengthened materially. Cash rose to $37.0 million, total assets reached $2.05 billion, and long-term debt was $496 million, comprising $450 million of senior notes and $46 million drawn on the $600 million revolver with a $350 million borrowing base. Equity offerings in February 2014 ($208.4 million net) and the June 2014 Viper Energy Partners IPO ($137.2 million net, with Diamondback retaining about 92% of the units) funded much of the activity. Operating cash flow was $159.7 million for the six months, versus $49.8 million a year earlier, and 2014 drilling capex guidance is $425-475 million. Subsequent events are significant. On July 18, 2014, Diamondback agreed to acquire roughly 16,773 gross acres in the Permian for about $538.0 million, expected to close in early September. A July 25, 2014 equity offering of 5.75 million shares at $87.00 raised about $484.9 million net to fund that deal. Investors should weigh the strong production and cash flow growth against the company's dependence on acquisitions and equity issuance, its commodity hedges (a net derivative liability of $10.4 million at quarter-end), and the execution risk on the pending acquisition.
Aug 7, 2014
2014-Q1-A
Diamondback Energy, Inc. Quarterly Report (Amendment) for Q1 Ended Mar 31, 2014
This filing is an amendment to Diamondback Energy, Inc.'s (FANG) quarterly report for the period ending March 30, 2014. The primary focus of this amendment is the "Exhibits" section, which details various agreements and corporate documents. Key among these are the Purchase and Sale Agreements related to acquisitions made in February 2014, indicating the company's proactive growth strategy through asset acquisition. The filing also lists the company's Amended and Restated Certificate of Incorporation and Bylaws, specimen stock certificates, and various debt-related indentures and registration rights agreements, reflecting its established corporate structure and financing arrangements. Furthermore, the amended employment agreements for key executives, including Travis D. Stice, Teresa Dick, Michael Hollis, Jeff White, and Russell Pantermuehl, are detailed. These agreements, some of which are amended and restated, highlight the company's focus on retaining and incentivizing its leadership team during a period of significant operational activity and potential expansion. For investors, this amendment underscores the ongoing development and strategic execution within Diamondback Energy.
May 28, 2014
2014-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2014
Diamondback Energy (FANG) reported a sharply larger first quarter 2014 as production and revenue scaled rapidly from its Permian Basin Wolfberry acreage. Total revenues rose 239% year over year to $98.0 million, driven by a 183% increase in average daily production to 13,552 BOE/d (79% oil). Net income increased to $23.6 million ($0.48 diluted EPS) from $5.4 million, though results were pressured by higher depreciation, depletion and amortization ($31.0 million, or $25.39 per BOE), $6.5 million of interest expense tied to the 7.625% Senior Notes, and a $4.4 million loss on derivatives. Income from operations was $48.1 million, roughly 5.5 times the prior-year level. The balance sheet expanded materially. Total assets grew to $1.94 billion from $1.52 billion, primarily due to $312.2 million of leasehold acquisitions, including the roughly $292 million Martin County acquisition closed in late February 2014. The company funded this with a $208.4 million net equity offering at $62.67 per share and $127 million of revolver borrowings. Long-term debt rose to $587 million, comprising $450 million of senior notes and $137 million on the revolver. Management also disclosed that the April 2014 borrowing base redetermination was set at $450 million, up from $225 million, substantially increasing liquidity capacity. Looking forward, management guided to a 2014 drilling and infrastructure capital budget of $425-475 million, a 48% increase over 2013, with roughly 85% directed to 65-75 gross operated horizontal wells. Operating cash flow of $71.5 million covered only a portion of the $399.2 million investing outlay, so the company remains reliant on external capital and its revolver. Management expects operating cash flow plus revolver availability to fund operations through year-end 2014, but does not budget for further acquisitions. Investors should also note the planned Viper Energy Partners IPO, the company's exposure to two purchasers that accounted for 82% of revenue, and a settled Minnesota litigation matter that is now closed.
May 9, 2014
2013-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2013
Diamondback Energy's (FANG) Q3 2013 10-Q shows a company in rapid growth mode. Total revenue for the quarter rose to $57.8 million from $16.8 million a year earlier, up about 244%, driven by production that more than doubled to roughly 7,419 BOE/d (about 75% oil). Income from operations was $29.4 million and net income was $14.6 million, or $0.33 per diluted share, though net income was reduced by a $9.1 million deferred tax provision and a $4.9 million loss on derivatives. Nine-month revenue reached $132.1 million and net income $34.5 million. Growth has been funded largely by equity and debt. The company raised roughly $144 million in May, $177 million in August, and $322 million in a public offering, and issued $450 million of 7.625% senior notes due 2021 in September. The balance sheet and capital deployment changed sharply during the quarter. Total assets grew to about $1.47 billion from $607 million at year-end 2012, and long-term debt rose to $450 million from almost nothing. The biggest cash uses were a $440 million purchase of mineral interests in Midland County, which carry an average 19.5% royalty, and $165 million for two Permian leasehold acquisitions in Martin and Dawson Counties. Management's 2013 drilling and infrastructure budget is $290–320 million, and the 2014 budget was set at $425–475 million, a 48% increase. Management says operating cash flow plus the new notes and revolver should fund operations through 2014, but the company will need significant additional capital to fully develop its acreage. Key risks include commodity price volatility (the company is roughly 75% oil and uses swaps with mark-to-market effects on earnings), customer concentration (Plains Marketing accounted for 52% of nine-month revenue), a borrowing base of $225 million under the $600 million revolver, and a Minnesota sand-related lawsuit where management considers the possibility of loss remote. The Wexford equity sponsor remains a significant related party. Investors should weigh the strong production growth and the Midland mineral acquisition against the higher leverage, the dependence on continued oil prices, and the need for ongoing outside capital to execute the 2014 plan.
Nov 5, 2013
2013-Q2
Diamondback Energy, Inc. Quarterly Report for Q2 Ended Jun 30, 2013
Diamondback Energy's second quarter 2013 Form 10-Q shows a company in rapid growth mode in the Permian Basin's Wolfberry play. Total revenues for the three months ended June 30, 2013 rose 183% year over year to $45.4 million, and net income reached $14.5 million ($0.36 diluted EPS), against $13.6 million a year earlier. Average daily production grew 163% to 6,590 BOE/d, driven by increased drilling and the October 2012 Gulfport acquisition. Oil made up about 75% of production, and the company's revenue is roughly 90% oil-based, so results are highly sensitive to crude prices. Balance sheet and liquidity strengthened materially. Following the May 2013 public offering (net proceeds of about $144.4 million), the company repaid its $49.0 million revolver balance and ended the quarter with no borrowings under its $250 million facility (borrowing base $180 million), $81.9 million in cash, and total stockholders' equity of $627.6 million. Net cash from operations was $49.8 million for the six months, which did not cover the $138.7 million of investing outflows; the gap was funded by equity proceeds. Management expects operating cash flow, the offering proceeds, and revolver borrowings to fund operations through year-end 2013, against a 2013 drilling and infrastructure budget of $290-320 million. Looking ahead, the company signed agreements on August 1 and 2, 2013 to acquire about 13,900 gross (11,150 net) acres in the Midland Basin for approximately $165.0 million, expected to close by the end of September 2013. Funding will come from some mix of cash, revolver borrowings, and securities offerings, which could add leverage or dilution. Investors should also note the GAAP tax picture: the company became a C-corporation at its 2012 IPO and recorded $10.96 million of deferred tax expense in the first half, and a pending Minnesota lawsuit (Stein v. Windsor Permian) has a damages phase still to be scheduled, which management considers remote in probability.
Aug 8, 2013
2013-Q1
Diamondback Energy, Inc. Quarterly Report for Q1 Ended Mar 31, 2013
Diamondback Energy, Inc. (FANG) reported its first quarter 2013 results as a newly public company (IPO completed October 2012), showing a strong top-line recovery in its Permian Basin Wolfberry operations. Total oil, NGL and natural gas revenues rose 77% year-over-year to $28.9 million, driven by production that more than doubled to approximately 4,788 BOE/d (115% growth), largely reflecting the October 2012 Gulfport Permian acquisition and increased drilling. Net income was $5.4 million ($0.15 per diluted share), compared with $1.5 million a year earlier, though the comparison is affected by a $4.8 million derivative loss in Q1 2012 that did not recur, and realized prices fell (oil averaged $83.89/Bbl versus $96.66 a year earlier). The balance sheet shows increased leverage and heavier capital spending. Cash fell to $5.5 million from $26.4 million at year-end as the company spent $74.1 million on investing activities, including $53.997 million of drilling and completion costs and an $18.55 million Gulfport post-closing adjustment. Borrowings under the $250 million revolving credit facility rose to $36.5 million, and the borrowing base was $135.0 million at quarter end, with management stating it would increase to $180.0 million in May 2013. Operating cash flow was $16.9 million, down from $19.6 million. Management expects 2013 drilling and infrastructure capital of $270-300 million, which it says can be funded by operating cash flow and the credit facility through year-end 2013. Investors should weigh the strong production growth and operating margin improvement against rising depletion costs ($24.92 per BOE, up from $23.42), a significant concentration of revenue from a few purchasers (Plains Marketing accounted for 53%), a substantial dependence on Wexford Capital as equity sponsor and a source of related-party transactions, and the reliance on debt and continued drilling execution to fund the growth plan.
May 9, 2013
2012-Q3-A
Diamondback Energy, Inc. Quarterly Report (Amendment) for Q3 Ended Sep 30, 2012
Diamondback Energy, Inc. (FANG) filed an amendment to its Form 10-Q for the quarterly period ended September 30, 2012. This filing primarily serves to provide additional exhibits, rather than reporting new operational or financial results. Investors should note that this amendment does not introduce revised financial statements or updated operational metrics from the original filing. The company continues to be classified as a non-accelerated filer and is not a shell company. For investors interested in the core financial performance and operational details, the original Form 10-Q filed on November 16, 2012, would contain the primary information. This amendment is supplementary in nature and focuses on providing supporting documentation to the SEC. Investors should refer to the original filing for a comprehensive understanding of Diamondback Energy's financial position and performance during the period.
Dec 14, 2012
2012-Q3
Diamondback Energy, Inc. Quarterly Report for Q3 Ended Sep 30, 2012
This 10-Q for the quarter ended September 30, 2012 is unusual: it contains the historical financial statements of Windsor Permian LLC, the predecessor operating entity, not of Diamondback Energy, Inc. (FANG) as a standalone company. Diamondback completed its IPO on October 17, 2012 (12.5 million shares at $17.50, plus 1.875 million over-allotment shares), and the Windsor UT contribution and Gulfport Permian acquisition closed on October 11, 2012. Investors should therefore read these figures as a pre-transaction baseline rather than a picture of the post-IPO company, since the report itself warns that these statements are not indicative of future results. On the Windsor standalone basis, the third quarter 2012 showed revenue of $16.6 million (up 51% year over year), driven by higher production of 2,637 Boe/d, partly offset by lower realized prices. Net income fell to $0.4 million from $2.1 million a year earlier, as a $3.1 million loss on derivative contracts, higher DD&A, and higher G&A compressed margins. For the nine months, net income was $15.4 million on revenue of $48.4 million. Capital expenditures were heavy, with $71.9 million spent on drilling in the nine months, and operating cash flow of $31.8 million did not fully cover that spending, so the business relied on $15 million of credit facility borrowings and $30 million of related-party subordinated debt. The most important post-period items for investors are the balance sheet clean-up and the sizing of the new company. IPO net proceeds of about $235.3 million were used to repay $100.0 million on the revolver, $63.6 million on the Gulfport note, and $30.0 million on the Wexford subordinated note. The company also issued 14.7 million shares to DB Energy Holdings and 7.9 million shares to Gulfport, and it expects a 2012 drilling and infrastructure budget of $150 to $160 million on a pro forma basis. Management also disclosed a deferred tax charge of roughly $44.2 million that would arise upon conversion to a C-corp, and a roughly $3.0 million non-recurring executive bonus charge tied to the IPO. Net acreage rose to about 51,709 net acres pro forma, though the pre-transaction 31,052 net acre figure is the one reflected in these statements.
Nov 16, 2012