Diamondback Energy, Inc.

Diamondback Energy is an independent U.S. upstream oil and gas company focused on acquiring, developing, and producing crude oil, natural gas, and natural gas liquids in the Permian Basin. Its business is centered on drilling and completion activity, operating wells, and monetizing production through commodity sales and hedging.

42,0 %

11,1 %

+35,8 %

0.42

0.40

— Diamondback Energy, Inc.
%
Oil, gas and NGL production85% Sales of produced crude oil, natural gas and natural gas liquids from company-operated and non-operated wells.
Development drilling and completion0% Capital-intensive drilling and completion activity that expands reserves and future production.
Acreage acquisition and asset integration0% Purchase and integration of producing properties and undeveloped acreage, including recent acquisitions.
Commodity derivatives0% Hedging instruments used to manage exposure to oil and gas price volatility.
Gathering, processing and transportation15% Fees and services tied to moving produced volumes through midstream infrastructure.

Diamondback sells primarily to a concentrated group of crude oil, natural gas, and NGL purchasers, including marketers,...

  • Crude oil and NGL buyersprimary

    Refiners, marketers, and trading counterparties that purchase produced barrels for downstream use or resale.

  • Natural gas purchasersprimary

    Gas marketers and pipeline-linked buyers that take produced gas from Diamondback's wells.

  • Joint working interest ownerssecondary

    Partners in operated wells that reimburse their share of drilling and operating costs.

  • Midstream service counterpartiessecondary

    Gathering, processing, and transportation providers that support moving production to market.

Diamondback's business is overwhelmingly U.S.-based, with operations concentrated in the Permian Basin of Texas and New...

  • •Operations are concentrated in the Permian Basin
  • •Core activity is in Texas and New Mexico
  • •Revenue is primarily U.S.-linked commodity sales
  • •Exposure is driven by U.S. oilfield service and tax regimes
  • •No country-level revenue split was disclosed in the excerpts

Management is prioritizing free cash flow generation by reducing activity levels and lowering the capital budget in...

01
Free cash flow generationshort-term

Lower capital intensity helps protect returns when oil prices soften.

02
Acquisition integrationmedium-term

Integrating acquired acreage and wells can expand scale and improve operating leverage.

03
Capital returnshort-term

Repurchases support shareholder returns when internal reinvestment opportunities are disciplined.

Diamondback is exposed to commodity price volatility, since revenue and reserve value depend heavily on oil and gas...

high

Commodity price volatility

Revenue, cash flow, and reserve value move with oil and gas prices.

Scope
Core upstream production economics
Materiality
high
high

Derivative ineffectiveness and counterparty risk

Hedges can lose value, fail to fully protect downside, or create counterparty exposure.

Scope
Commodity hedging program
Materiality
high
high

Customer and joint interest credit risk

Receivables are concentrated and customers are not required to post collateral.

Scope
Oil and gas sales receivables and joint interest billings
Materiality
high
medium

Interest rate risk

Floating-rate borrowings and debt fair values are sensitive to rate changes.

Scope
Revolving credit facilities and term loans
Materiality
medium
medium

Regulatory and energy-transition pressure

Climate policy, emissions expectations, and tariffs can increase costs or constrain activity.

Scope
U.S. shale operations and supply chain
Materiality
medium
Full cost ceiling test
Can create large noncash impairment charges when prices weaken
Reserve estimates and depletion
Changes can materially alter unit costs and earnings
Commodity derivatives
Can smooth or distort period-to-period results
Acquisition accounting
Can change reported operating costs and future DD&A
Production and ad valorem taxes
Affects operating margins and quarterly comparability

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: 11/08/2026