Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35700 | |
Entity Registrant Name | Diamondback Energy, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 45-4502447 | |
Entity Address, Address Line One | 500 West Texas | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Midland, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 79701 | |
City Area Code | 432 | |
Local Phone Number | 221-7400 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | FANG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 180,997,368 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001539838 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 121 | $ 104 |
Restricted cash | 19 | 4 |
Accounts receivable: | ||
Joint interest and other, net | 68 | 56 |
Oil and natural gas sales, net | 531 | 281 |
Inventories | 52 | 33 |
Derivative instruments | 0 | 1 |
Income tax receivable | 33 | 100 |
Prepaid expenses and other current assets | 27 | 23 |
Total current assets | 851 | 602 |
Property and equipment: | ||
Oil and natural gas properties, full cost method of accounting ($8,430 million and $7,493 million excluded from amortization at March 31, 2021 and December 31, 2020, respectively) | 31,765 | 27,377 |
Midstream assets | 1,018 | 1,013 |
Other property, equipment and land | 152 | 138 |
Accumulated depletion, depreciation, amortization and impairment | (12,583) | (12,314) |
Property and equipment, net | 20,352 | 16,214 |
Funds held in escrow | 34 | 51 |
Equity method investments | 525 | 533 |
Derivative instruments | 4 | 0 |
Deferred income taxes, net | 32 | 73 |
Investment in real estate, net | 101 | 101 |
Other assets | 97 | 45 |
Total assets | 21,996 | 17,619 |
Current liabilities: | ||
Accounts payable - trade | 71 | 71 |
Accrued capital expenditures | 233 | 186 |
Current maturities of long-term debt | 191 | 191 |
Other accrued liabilities | 416 | 302 |
Revenues and royalties payable | 353 | 237 |
Derivative instruments | 604 | 249 |
Total current liabilities | 1,868 | 1,236 |
Long-term debt | 7,465 | 5,624 |
Derivative instruments | 8 | 57 |
Asset retirement obligations | 190 | 108 |
Deferred income taxes | 790 | 783 |
Other long-term liabilities | 23 | 7 |
Total liabilities | 10,344 | 7,815 |
Commitments and contingencies (Note 15) | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; 180,984,014 and 158,088,182 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively | 2 | 2 |
Additional paid-in capital | 14,384 | 12,656 |
Retained earnings (accumulated deficit) | (3,713) | (3,864) |
Total Diamondback Energy, Inc. stockholders’ equity | 10,673 | 8,794 |
Non-controlling interest | 979 | 1,010 |
Total equity | 11,652 | 9,804 |
Total liabilities and equity | $ 21,996 | $ 17,619 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 8,430 | $ 7,493 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized (in Shares) | 200,000,000 | 200,000,000 |
Shares Issued (in Shares) | 180,984,014 | 158,088,182 |
Shares Outstanding (in Shares) | 180,984,014 | 158,088,182 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Revenue | $ 1,172 | $ 883 |
Other operating income | 1 | 2 |
Total revenues | 1,184 | 899 |
Costs and expenses: | ||
Lease operating expenses | 102 | 127 |
Production and ad valorem taxes | 75 | 71 |
Depreciation, depletion, amortization and accretion | 273 | 409 |
Impairment of oil and natural gas properties | 0 | 1,009 |
Impairment of midstream assets | 3 | 0 |
General and administrative expenses | 25 | 24 |
Merger and integration expense | 75 | 0 |
Other operating expense | 1 | 2 |
Total costs and expenses | 613 | 1,701 |
Income (loss) from operations | 571 | (802) |
Other income (expense): | ||
Interest expense, net | (56) | (48) |
Other income (expense), net | 1 | 1 |
Gain (loss) on derivative instruments, net | (164) | 542 |
Gain (loss) on revaluation of investment | 0 | (10) |
Loss on extinguishment of debt | (61) | 0 |
(Income) loss from equity investment | (3) | 0 |
Total other income (expense), net | (283) | 485 |
Income (loss) before income taxes | 288 | (317) |
Provision for (benefit from) income taxes | 65 | 83 |
Net income (loss) | 223 | (400) |
Net income (loss) attributable to non-controlling interest | 3 | (128) |
Net income (loss) attributable to Diamondback Energy, Inc. | $ 220 | $ (272) |
Earnings (loss) per common share: | ||
Basic (in USD per share) | $ 1.34 | $ (1.72) |
Diluted (in USD per share) | $ 1.33 | $ (1.72) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 164,169 | 158,291 |
Diluted (in shares) | 164,926 | 158,494 |
Dividends declared per share (in USD per share) | $ 0.40 | $ 0.375 |
Oil sales | ||
Revenues: | ||
Revenue | $ 944 | $ 827 |
Natural gas sales | ||
Revenues: | ||
Revenue | 104 | 4 |
Natural gas liquid sales | ||
Revenues: | ||
Revenue | 124 | 52 |
Midstream services | ||
Revenues: | ||
Revenue | 11 | 14 |
Costs and expenses: | ||
Cost of goods and services sold | 28 | 23 |
Gathering and transportation | ||
Costs and expenses: | ||
Cost of goods and services sold | $ 31 | $ 36 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest |
Balance at beginning of period at Dec. 31, 2019 | $ 14,906 | $ 2 | $ 12,357 | $ 890 | $ 1,657 |
Balance at beginning of period (in Shares) at Dec. 31, 2019 | 159,002,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | 5 | 5 | |||
Distribution equivalent rights payments | (1) | (1) | |||
Stock-based compensation | 10 | 10 | |||
Cash paid for tax withholding on vested equity awards | (5) | (5) | |||
Repurchased units under buyback programs | (98) | (98) | |||
Repurchased units under buyback programs (in Shares) | (1,280,000) | ||||
Distribution to non-controlling interest | (43) | (43) | |||
Dividend paid | (59) | (59) | |||
Exercise of stock options and issuance of restricted stock units and awards | 1 | 1 | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 93,000 | ||||
Net income (loss) | (400) | (272) | (128) | ||
Balance at end of period at Mar. 31, 2020 | 14,316 | $ 2 | 12,265 | 559 | 1,490 |
Balance at end of period (in Shares) at Mar. 31, 2020 | 157,815,000 | ||||
Balance at beginning of period at Dec. 31, 2020 | $ 9,804 | $ 2 | 12,656 | (3,864) | 1,010 |
Balance at beginning of period (in Shares) at Dec. 31, 2020 | 158,088,182 | 158,088,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Unit-based compensation | $ 3 | 3 | |||
Distribution equivalent rights payments | (1) | (1) | |||
Common units issued for acquisitions | 1,727 | 1,727 | |||
Common units issued for acquisitions (in shares) | 22,795,000 | ||||
Stock-based compensation | 11 | 11 | |||
Cash paid for tax withholding on vested equity awards | (6) | (6) | |||
Repurchased units under buyback programs | (24) | (24) | |||
Distribution to non-controlling interest | (17) | (17) | |||
Dividend paid | (68) | (68) | |||
Exercise of stock options and issuance of restricted stock units and awards (in Shares) | 101,000 | ||||
Change in ownership of consolidated subsidiaries, net | 0 | (4) | 4 | ||
Net income (loss) | 223 | 220 | 3 | ||
Balance at end of period at Mar. 31, 2021 | $ 11,652 | $ 2 | $ 14,384 | $ (3,713) | $ 979 |
Balance at end of period (in Shares) at Mar. 31, 2021 | 180,984,014 | 180,984,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Cash flows from operating activities: | |||
Net income (loss) | $ 223 | $ (400) | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Provision for (benefit from) deferred income taxes | 64 | 145 | |
Impairment of oil and natural gas properties | 0 | 1,009 | |
Impairment of midstream assets | 3 | 0 | |
Depreciation, depletion, amortization and accretion | 273 | 409 | |
Loss on extinguishment of debt | 61 | 0 | |
(Gain) loss on derivative instruments, net | 164 | (542) | |
Cash received (paid) on settlement of derivative instruments | (178) | 87 | |
Equity-based compensation expense | 10 | 9 | |
Other | 7 | 12 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (137) | 175 | |
Income tax receivable | 100 | (62) | |
Prepaid expenses and other | 22 | (4) | |
Accounts payable and accrued liabilities | (26) | (35) | |
Revenues and royalties payable | 50 | 14 | |
Other | (12) | 32 | |
Net cash provided by (used in) operating activities | 624 | 849 | |
Cash flows from investing activities: | |||
Drilling, completions and non-operated additions to oil and natural gas properties | (281) | (690) | |
Infrastructure additions to oil and natural gas properties | (8) | (56) | |
Additions to midstream assets | (7) | (44) | |
Purchase of business and assets, net | (342) | (40) | |
Acquisitions of mineral interests | 0 | (65) | |
Funds held in escrow | 50 | 0 | |
Contributions to equity method investments | (4) | (33) | |
Other | 5 | 5 | |
Net cash provided by (used in) investing activities | (587) | (923) | |
Cash flows from financing activities: | |||
Proceeds from borrowings under credit facilities | 432 | 430 | |
Repayments under credit facilities | (455) | (140) | |
Proceeds from senior notes | 2,200 | 0 | |
Repayment of senior notes | (1,916) | 0 | |
Premium on extinguishment of debt | (166) | 0 | |
Proceeds from joint venture | (4) | 16 | |
Debt issuance costs | (24) | 0 | |
Repurchased shares under buyback program | 0 | (98) | |
Repurchased units under buyback program | (24) | 0 | |
Dividends to stockholders | (68) | (59) | |
Distributions to non-controlling interest | (17) | (43) | |
Financing portion of net cash received (paid) for derivative instruments | 76 | 0 | |
Other | (5) | (5) | |
Net cash provided by (used in) financing activities | 29 | 101 | |
Net increase (decrease) in cash and cash equivalents | 66 | 27 | |
Cash, cash equivalents and restricted cash at beginning of period | 108 | 128 | |
Cash, cash equivalents and restricted cash at end of period(1) | [1] | 174 | 155 |
Supplemental disclosure of cash flow information: | |||
Accrued capital expenditures included in accounts payable and accrued expenses | 252 | 646 | |
Common stock issued for business combinations | $ 1,727 | $ 0 | |
[1] | (1) See Note 2—Summary of Significant Accounting Policies |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Organization and Description of the Business Diamondback Energy, Inc., together with its subsidiaries (collectively referred to as “Diamondback” or the “Company” unless the context otherwise requires), is an independent oil and natural gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. The wholly owned subsidiaries of Diamondback, as of March 31, 2021, include Diamondback E&P LLC, a Delaware limited liability company, Diamondback O&G LLC (“O&G”), a Delaware limited liability company, Viper Energy Partners GP LLC, a Delaware limited liability company, Rattler Midstream GP LLC, a Delaware limited liability company, Energen Corporation, an Alabama corporation (“Energen”) and QEP Resources, Inc. (“QEP”), a Delaware corporation. Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Diamondback’s publicly traded subsidiaries Viper Energy Partners LP (“Viper”) and Rattler Midstream LP (“Rattler”) are consolidated in the Company’s financial statements. As of March 31, 2021, the Company owned approximately 59% of Viper’s total units outstanding. The Company’s wholly owned subsidiary, Viper Energy Partners GP LLC, is the general partner of Viper. As of March 31, 2021, the Company owned approximately 72% of Rattler’s total units outstanding. The Company’s wholly owned subsidiary, Rattler Midstream GP LLC, is the general partner of Rattler. The results of operations attributable to the non-controlling interest in Viper and Rattler are presented within equity and net income and are shown separately from the Company’s equity and net income attributable to the Company. These condensed consolidated financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2020, which contains a summary of the Company’s significant accounting policies and other disclosures. Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had an immaterial effect on the previously reported total assets, total liabilities, stockholders’ equity, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry, given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19 and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets resulted in significant negative pricing pressures in the first half of 2020, followed by a recovery in pricing in the second half of 2020 and into 2021. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of changing market conditions. Such circumstances generally increase the uncertainty in the Company’s accounting estimates, particularly those involving financial forecasts. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities assumed, equity-based compensation, fair value estimates of derivative instruments and estimates of income taxes. Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported at the end of the period in the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020 to the line items within the condensed consolidated balance sheets: Three Months Ended March 31, 2021 2020 (In millions) Cash and cash equivalents $ 121 $ 149 Restricted cash 19 6 Restricted cash included in funds held in escrow (1) 34 — Total cash, cash equivalents and restricted cash $ 174 $ 155 (1) As of March 31, 2021, the restricted cash included in funds held in escrow on the condensed consolidated balance sheet is primarily related to cash deposited into an escrow account for a title dispute between outside parties in the Williston Basin. Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance and is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from Contracts with Customers Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 569 $ 358 $ 17 $ 944 $ 473 $ 351 $ 3 $ 827 Natural gas sales 41 61 2 104 2 2 — 4 Natural gas liquid sales 75 47 2 124 29 23 — 52 Total $ 685 $ 466 $ 21 $ 1,172 $ 504 $ 376 $ 3 $ 883 |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Guidon Operating LLC On December 21, 2020, the Company entered into a definitive purchase agreement to acquire all leasehold interests and related assets of Guidon Operating LLC (the “Guidon Acquisition”) which include approximately 32,500 net acres in the Northern Midland Basin in exchange for 10.68 million shares of the Company’s common stock and $375 million of cash. The Guidon Acquisition closed on February 26, 2021. The cash portion of this transaction was funded through a combination of cash on hand and borrowings under the Company’s credit facility. As a result of the Guidon Acquisition, the Company added approximately 210 gross producing wells. The following table presents the acquisition consideration paid in the Guidon Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 10,676 Closing price per share of Diamondback common stock on the closing date $ 69.28 Fair value of Diamondback common stock issued $ 740 Cash consideration 375 Total consideration (including fair value of Diamondback common stock issued) $ 1,115 Purchase Price Allocation The Guidon Acquisition has been accounted for as a business combination using the acquisition method of accounting. The following table represents the allocation of the total purchase price paid in the Guidon Acquisition to the identifiable assets acquired based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Although the purchase price allocation is substantially complete as of the date of this filing, there may be further adjustments to the fair value of certain assets acquired and liabilities assumed, including but not limited to the Company’s oil and natural gas properties. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date and may revise the value of the assets and liabilities as appropriate within that time frame. Total consideration $ 1,115 Fair value of liabilities assumed: Asset retirement obligations 9 Fair value of assets acquired: Oil and gas properties 1,110 Midstream assets 14 Amount attributable to assets acquired 1,124 Net assets acquired and liabilities assumed $ 1,115 Oil and natural gas properties were valued using an income approach utilizing the discounted cash flow method, which takes into account production forecasts, projected commodity prices and pricing differentials, and estimates of future capital and operating costs which are then discounted utilizing an estimated weighted-average cost of capital for industry market participants. The fair value of acquired midstream assets was based on the cost approach, which utilized asset listings and cost records with consideration for the reported age, condition, utilization and economic support of the assets. With the completion of the Guidon Acquisition, the Company acquired proved properties of $537 million and unproved properties of $573 million. The Company has included in its condensed consolidated statements of operations, revenues of $28 million and direct operating expenses of $12 million for the period from February 26, 2021 to March 31, 2021 attributable to the acquired assets. QEP Resources, Inc. On March 17, 2021, the Company completed its acquisition of QEP in an all-stock transaction (the “QEP Merger”). The addition of QEP’s assets increased the Company’s net acreage in the Midland Basin by approximately 49,000 net acres. Under the terms of the QEP Merger, each eligible share of QEP common stock issued and outstanding immediately prior to the effective time converted into the right to receive 0.050 of a share of Diamondback common stock, with cash being paid in lieu of any fractional shares (the “merger consideration”). At the closing date of the QEP Merger, the carrying value of QEP’s outstanding debt was approximately $1.6 billion. See Note 9— Debt for further discussion. The following table presents the acquisition consideration paid to QEP stockholders in the QEP Merger (in millions, except per share data, shares in thousands): Consideration: Eligible shares of QEP common stock converted into shares of Diamondback common stock 238,153 Shares of QEP equity awards included in precombination consideration 4,221 Total shares of QEP common stock eligible for merger consideration 242,374 Exchange ratio 0.050 Shares of Diamondback common stock issued as merger consideration (in thousands) 12,119 Closing price per share of Diamondback common stock $ 81.41 Total consideration (fair value of the Company's common stock issued) $ 987 Purchase Price Allocation The QEP Merger has been accounted for as a business combination using the acquisition method. The following table represents the preliminary allocation of the total purchase price for the acquisition of QEP to the identifiable assets acquired and the liabilities assumed based on the fair values at the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Although the purchase price allocation is substantially complete as of the date of this filing, certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, final tax returns that provide the underlying tax basis of QEP’s assets and liabilities. As such, there may be further adjustments to the fair value of certain assets acquired and liabilities assumed, including the Company’s oil and natural gas properties. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date. The following table sets forth the Company’s preliminary purchase price allocation (in millions): Total consideration $ 987 Fair value of liabilities assumed: Accounts payable - trade $ 26 Accrued capital expenditures 38 Other accrued liabilities 108 Revenues and royalties payable 67 Derivative instruments 242 Long-term debt 1,710 Asset retirement obligations 54 Other long-term liabilities 47 Amount attributable to liabilities assumed $ 2,292 Fair value of assets acquired: Cash, cash equivalents and restricted cash $ 22 Accounts receivable - joint interest and other, net 87 Accounts receivable - oil and natural gas sales, net 44 Inventories 18 Income tax receivable 33 Prepaid expenses and other current assets 7 Oil and natural gas properties 2,938 Other property, equipment and land 9 Deferred income taxes 15 Other assets 106 Amount attributable to assets acquired 3,279 Net assets acquired and liabilities assumed $ 987 The purchase price allocation above was based on preliminary estimates of the fair values of the assets and liabilities of QEP as of the closing date of the QEP Merger. The majority of the measurements of assets acquired and liabilities assumed are based on inputs that are not observable in the market and are therefore considered Level 3 inputs. The fair value of acquired property and equipment, including midstream assets classified in oil and natural gas properties, is based on the cost approach, which utilized asset listings and cost records with consideration for the reported age, condition, utilization and economic support of the assets. Oil and natural gas properties were valued using an income approach utilizing the discounted cash flow method, which takes into account production forecasts, projected commodity prices and pricing differentials, and estimates of future capital and operating cost which are then discounted utilizing an estimated weighted-average cost of capital for industry market participants. The fair value of QEP’s outstanding senior unsecured notes was based on unadjusted quoted prices in an active market, which are considered Level 1 inputs. The value of derivative instruments was based on observable inputs including forward commodity-price curves which are considered Level 2 inputs. Deferred income taxes represent the tax effects of differences in the tax basis and merger-date fair values of assets acquired and liabilities assumed. With the completion of the QEP Merger, the Company acquired proved properties of $2.3 billion and unproved properties of $444 million, primarily in the Midland Basin and the Williston Basin. The Company has included in its condensed consolidated statements of operations, revenues of $54 million and direct operating expenses of $31 million for the period from March 17, 2021 to March 31, 2021 attributable to the QEP business. Pro Forma Financial Information The following unaudited summary pro forma financial information for the three months ended March 31, 2021 and 2020 has been prepared to give effect to the QEP Merger and the Guidon Acquisition as if they had occurred on January 1, 2020. The unaudited pro forma financial information does not purport to be indicative of what the combined company’s results of operations would have been if these transactions had occurred on the dates indicated, nor is it indicative of the future financial position or results of operations of the combined company. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for QEP’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including adjustments to depreciation, depletion and amortization based on the full cost method of accounting and the purchase price allocated to property, plant, and equipment as well as adjustments to interest expense and the provision for (benefit from) income taxes. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by the Company for the QEP Merger and the Guidon Acquisition of approximately $75 million for the three months ended March 31, 2021 and acquisition-related costs incurred by QEP of $31 million. These acquisition-related costs primarily consist of one-time severance costs and the accelerated or change-in-control vesting of certain QEP share-based awards for former QEP employees based on the terms of the merger agreement relating to the QEP Merger and other bank, legal and advisory fees. The pro forma results of operations do not include any cost savings or other synergies that may result from the QEP Merger and Guidon Acquisition or any estimated costs that have been or will be incurred by the Company to integrate the acquired assets. The pro forma financial data does not include the results of operations for any other acquisitions made during the periods presented, as they were primarily acreage acquisitions and their results were not deemed material. Three Months Ended March 31, 2021 2020 (In millions, except per share amounts) Revenues $ 1,481 $ 1,190 Income (loss) from operations $ 684 $ (822) Net income (loss) $ 146 $ 58 Basic earnings per common share $ 0.81 $ 0.32 Diluted earnings per common share $ 0.80 $ 0.32 |
REAL ESTATE ASSETS
REAL ESTATE ASSETS | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE ASSETS | REAL ESTATE ASSETS The following schedule presents the cost and related accumulated depreciation of the Company’s real estate assets. The Company’s intangible lease assets and related accumulated amortization were immaterial as of March 31, 2021 and December 31, 2020. Estimated Useful Lives March 31, 2021 December 31, 2020 (Years) (In millions) Buildings 20-30 $ 104 $ 102 Tenant improvements 15 5 5 Land N/A 2 2 Land improvements 15 1 1 Total real estate assets 112 110 Less: accumulated depreciation (15) (13) Total investment in land and buildings, net $ 97 $ 97 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes the following as of the dates indicated: March 31, December 31, 2021 2020 (In millions) Oil and natural gas properties: Subject to depletion $ 23,335 $ 19,884 Not subject to depletion 8,430 7,493 Gross oil and natural gas properties 31,765 27,377 Accumulated depletion (4,493) (4,237) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 19,318 15,186 Midstream assets 1,018 1,013 Other property, equipment and land 152 138 Accumulated depreciation and impairment (136) (123) Total property and equipment, net $ 20,352 $ 16,214 Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter which determines a limit, or ceiling, on the book value of proved oil and natural gas properties. No impairment expense was recorded for the three months ended March 31, 2021 and $1.0 billion in impairment expense was recorded during the three months ended March 31, 2020 based on the results of the respective quarterly ceiling tests. Additionally, no impairment expense was recorded for the three months ended March 31, 2021 in relation to the oil and natural gas properties acquired in the QEP Merger and the Guidon Acquisition. These properties were recorded at fair value in accordance with ASC 820 Fair Value Measurement . Pursuant to SEC guidance, the Company determined the fair value of the properties acquired clearly exceeded the related full cost ceiling limitation beyond a reasonable doubt and received a waiver from the SEC to exclude the properties acquired from the ceiling test calculation. This waiver was granted for the quarter ended March 31, 2021. As part of the waiver received from the SEC, the Company is required to disclose what the full cost ceiling test impairment amounts would have been for all periods presented in each applicable quarterly and annual filing if the waiver had not been granted. The fair values of the properties acquired in the QEP Merger and the Guidon Acquisition were based on forward strip oil and natural gas pricing existing at the closing date of the respective QEP Merger and Guidon Acquisition, and management affirmed there has not been a decline to the fair value of these acquired assets. The properties acquired in the QEP Merger and Guidon Acquisition have total unamortized costs at March 31, 2021 of $3.0 billion and $1.1 billion, respectively. Had the Company not received the waiver from the SEC, the impairment charge recorded would have been approximately $1.1 billion for the three months ended March 31, 2021. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. If the future trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. It is possible that circumstances requiring additional impairment testing will occur in future interim periods, which could result in potentially material impairment charges being recorded. |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 3 Months Ended |
Mar. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The following table describes the changes to the Company’s asset retirement obligations liability for the following periods: Three Months Ended March 31, 2021 2020 (In millions) Asset retirement obligations, beginning of period $ 109 $ 94 Additional liabilities incurred 2 4 Liabilities acquired 63 — Liabilities settled and divested (1) — Accretion expense 2 2 Revisions in estimated liabilities 20 — Asset retirement obligations, end of period 195 100 Less current portion (1) 5 1 Asset retirement obligations - long-term $ 190 $ 99 (1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS The following table presents the carrying values of Rattler’s equity method investments as of the dates indicated: Ownership Interest March 31, 2021 December 31, 2020 (In millions) EPIC Crude Holdings, LP 10 % $ 116 $ 121 Gray Oak Pipeline, LLC 10 % 127 130 Wink to Webster Pipeline LLC (1) 4 % 86 83 OMOG JV LLC 60 % 191 194 Amarillo Rattler, LLC (2) 50 % 5 5 Total $ 525 $ 533 (1) The Wink to Webster joint venture is developing a crude oil pipeline (the “Wink to Webster pipeline”). The Wink to Webster pipeline’s main segment began interim service operation in the fourth quarter of 2020, and the joint venture is expected to begin full commercial operations in the fourth quarter of 2021. (2) On April 30, 2021, Rattler sold its interest in the Amarillo Rattler, LLC (“Amarillo Rattler”) joint venture. See Note 16— Subsequent Events for further discussion. Income (loss) from Rattler’s equity method investees was not material for the three months ended March 31, 2021 or 2020. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2021 2020 (In millions) 4.625% Notes due 2021 $ 191 $ 191 5.375% Senior Notes due 2022 (1) 25 — 7.320% Medium-term Notes, Series A, due 2022 20 20 0.900% Senior Notes due 2023 650 — 5.250% Senior Notes due 2023 (1) 10 — 2.875% Senior Notes due 2024 1,000 1,000 4.750% Senior Notes due 2025 500 500 5.375% Senior Notes due 2025 432 800 3.250% Senior Notes due 2026 800 800 5.625% Senior Notes due 2026 (1) 18 — 7.125% Medium-term Notes, Series B, due 2028 100 100 3.500% Senior Notes due 2029 1,200 1,200 3.125% Senior Notes due 2031 900 — 4.400% Senior Notes due 2051 650 — DrillCo Agreement (2) 75 79 Unamortized debt issuance costs (42) (29) Unamortized discount costs (31) (27) Unamortized premium costs 15 15 Revolving credit facility (3) 52 23 Viper revolving credit facility (3) 57 84 Viper 5.375% Senior Notes due 2027 480 480 Rattler revolving credit facility (4) 54 79 Rattler 5.625% Senior Notes due 2025 500 500 Total debt, net 7,656 5,815 Less: current maturities of long-term debt (191) (191) Total long-term debt $ 7,465 $ 5,624 (1) At the effective time of the QEP Merger, QEP became a wholly owned subsidiary of the Company and remained the issuer of the notes. (2) The Company entered into a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. (“CEMOF”) to fund oil and natural gas development. As of March 31, 2021, the amount due to CEMOF related to this alliance was $75 million. (3) Each of these revolving credit facilities matures on November 1, 2022. (4) The Rattler revolving credit facility matures on May 28, 2024. References in this section to the Company shall mean Diamondback Energy, Inc. and Diamondback O&G LLC, collectively, unless otherwise specified. Second Amended and Restated Credit Facility As of March 31, 2021, O&G, as borrower, and Diamondback Energy, Inc., as parent guarantor, have a credit agreement, as amended, which provides for a maximum credit amount available of $2 billion, with $52 million of outstanding borrowings and $1.9 billion available for future borrowings. As of March 31, 2021, there was an aggregate of $3 million in outstanding letters of credit, which reduce available borrowings under the credit agreement on a dollar for dollar basis. The weighted average interest rate on the credit facility was 1.65% and 3.02% for the three months ended March 31, 2021 and 2020, respectively. The borrowing base is scheduled to be redetermined semi-annually in May and November. As of March 31, 2021, the Company was in compliance with all financial maintenance covenants under the revolving credit facility. March 2021 Notes Offering On March 24, 2021, the Company issued $650 million aggregate principal amount of 0.900% Senior Notes due March 24, 2023 (the “2023 Notes”), $900 million aggregate principal amount of 3.125% Senior Notes due March 24, 2031 (the “2031 Notes”) and $650 million aggregate principal amount of 4.400% Senior Notes due March 24, 2051 (the “2051 Notes” and together with the 2023 Notes and the 2031 Notes, the “March 2021 Notes”) and received proceeds, net of $24 million in debt issuance costs and discounts, of $2.18 billion. The net proceeds were primarily used to fund the repurchase of other senior notes outstanding as discussed further below. Interest on the March 2021 Notes is payable semi-annually on March 24 and September 24, beginning on September 24, 2021. The March 2021 Notes are the Company’s senior unsecured obligations and are fully and unconditionally guaranteed by O&G. The March 2021 Notes are senior in right of payment to any of the Company’s and O&G’s future subordinated indebtedness and rank equal in right of payment with all of the Company’s and O&G’s existing and future senior indebtedness. The March 2021 Notes are effectively subordinated to the Company’s and O&G’s existing and future secured indebtedness, if any, to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to all of the existing and future indebtedness and other liabilities of the Company’s subsidiaries other than O&G. The Company may not redeem the 2023 Notes in whole or in part at any time prior to September 24, 2021. The Company may redeem (i) the 2031 Notes in whole or in part at any time prior to December 24, 2030 and (ii) the 2051 Notes in whole or in part at any time prior to September 24, 2050, in each case at the redemption price set forth in the related indenture. If the March 2021 Notes are redeemed on or after the dates noted above, in each case, the March 2021 Notes may be redeemed at a redemption price equal to 100% of the principal amount of the March 2021 Notes to be redeemed plus interest accrued thereon to but not including the redemption date. Upon the occurrence of a change of control triggering event as defined in the relevant indentures, holders may require the Company to purchase some or all of their March 2021 Notes for cash at a price equal to 101% of the principal amount of the March 2021 Notes being purchased, plus accrued and unpaid interest, if any, to the date of purchase. QEP Notes and Repurchases of Notes On March 17, 2021, at the time of the QEP Merger discussed in Note 4— Acquisitions , QEP had outstanding debt at fair values consisting of $478 million of 5.375% Senior Notes due 2022 (the “QEP 2022 Notes”), $673 million of 5.250% Senior Notes due 2023 (the “QEP 2023 Notes”) and $558 million of 5.625% Senior Notes due 2026 (the “QEP 2026 Notes” and together with the QEP 2022 Notes and QEP 2023 Notes, the “QEP Notes”). Subsequent to the QEP Merger, in March 2021, the Company repurchased pursuant to tender offers commenced by the Company, approximately $1.65 billion in fair value carrying amount of the QEP Notes for total cash consideration of $1.7 billion, including redemption and early premium fees, which resulted in a loss on extinguishment of debt during the three months ended March 31, 2021 of approximately $47 million. The aggregate fair value of the QEP Notes repurchased consisted of (i) $453 million, or 94.65%, of the outstanding fair value carrying amount of the QEP 2022 Notes, (ii) $663 million, or 98.43%, of the outstanding fair value carrying amount of the QEP 2023 Notes and (iii) $538 million, or 96.35%, of the outstanding fair value carrying amount of the QEP 2026 Notes. In March 2021, the Company also repurchased an aggregate of $368 million principal amount of its 5.375% 2025 Senior Notes, representing approximately 45.97% of the outstanding 2025 Senior Notes, for total cash consideration of $381 million, including redemption and early premium fees, which resulted in a loss on extinguishment of debt during the three months ended March 31, 2021 of $14 million. The Company funded the repurchases of the QEP Notes and 2025 Senior Notes with the proceeds from the March 2021 Notes offering discussed above. In connection with the tender offers to repurchase the QEP Notes discussed above, the Company also solicited consents from holders of the QEP Notes to amend the indenture for the QEP Notes to, among other things, eliminate substantially all of the restrictive covenants and related provisions and certain events of default contained in the QEP indenture under which the QEP Notes were issued. The Company received the requisite number of consents and, on March 23, 2021, entered into a supplemental indenture relating to the QEP Notes adopting these amendments. Viper’s Credit Agreement Viper LLC’s credit agreement, as amended (the “Viper credit agreement”), provides for a revolving credit facility in the maximum credit amount of $2 billion and a borrowing base of $580 million based on Viper LLC’s oil and natural gas reserves and other factors (the “borrowing base”). The borrowing base is scheduled to be redetermined semi-annually in May and November. As of March 31, 2021, Viper LLC had $57 million of outstanding borrowings and $523 million available for future borrowings under the Viper credit agreement. The weighted average interest rate on borrowings under the Viper credit agreement was 1.88% and 3.32% for the three months ended March 31, 2021 and 2020, respectively . The Viper credit agreement will mature on November 1, 2022. As of March 31, 2021, Viper LLC was in compliance with all financial maintenance covenants under the Viper credit agreement. Rattler’s Credit Agreement Rattler LLC’s credit agreement, as amended (the “Rattler credit agreement”), provides for a revolving credit facility in the maximum credit amount of $600 million, which is expandable to $1 billion upon Rattler’s election, subject to obtaining additional lender commitments and satisfaction of customary conditions. As of March 31, 2021, Rattler LLC had $54 million of outstanding borrowings and $546 million available for future borrowings under the Rattler credit agreement. The weighted average interest rate on borrowings under Rattler credit agreement was 1.40% and 2.79% for the three months ended March 31, 2021 and 2020, respectively. The revolving credit facility will mature on May 28, 2024. As of March 31, 2021, Rattler LLC was in compliance with all financial maintenance covenants under the Rattler credit agreement. |
CAPITAL STOCK AND EARNINGS PER
CAPITAL STOCK AND EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
CAPITAL STOCK AND EARNINGS PER SHARE | CAPITAL STOCK AND EARNINGS PER SHARE Diamondback did not complete any equity offerings during the three months ended March 31, 2021 and March 31, 2020. As discussed in Note 4— Acquisitions , Diamondback issued 12.12 million shares of the Company’s stock as consideration in the QEP Merger and 10.68 million shares of the Company’s stock as consideration for the Guidon Acquisition during the three months ended March 31, 2021. Earnings (Loss) Per Share The Company’s basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share include the effect of potentially dilutive shares outstanding for the period. Additionally, the per share earnings of Viper and Rattler are included in the consolidated earnings per share computation based on the consolidated group’s holdings of the subsidiaries. A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2021 2020 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common stock $ 220 $ (272) Weighted average common shares outstanding: Basic weighted average common units outstanding 164,169 158,291 Effect of dilutive securities: Potential common shares issuable 757 203 Diluted weighted average common shares outstanding 164,926 158,494 Basic net income (loss) attributable to common stock $ 1.34 $ (1.72) Diluted net income (loss) attributable to common stock $ 1.33 $ (1.72) Change in Ownership of Consolidated Subsidiaries Non-controlling interests in the accompanying condensed consolidated financial statements represent minority interest ownership in Viper and Rattler and are presented as a component of equity. When the Company’s relative ownership interests in Viper and Rattler change, adjustments to non-controlling interest and additional paid-in-capital, tax effected, will occur. The following table summarizes changes in the ownership interest in consolidated subsidiaries during the periods presented: Three Months Ended March 31, 2021 2020 (In millions) Net income (loss) attributable to the Company $ 220 $ (272) Change in ownership of consolidated subsidiaries (4) — Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest $ 216 $ (272) |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION Under the Equity Plan, approved by the Board of Directors, the Company is authorized to issue incentive and non-statutory stock options, restricted stock awards and restricted stock units, performance awards and stock appreciation rights to eligible employees. At March 31, 2021, the Company had outstanding restricted stock units, performance-based restricted stock units, an immaterial amount of restricted share awards and restricted stock units which were assumed in connection with the QEP Merger and an immaterial amount of stock options and stock appreciation rights assumed from Energen. The Company classifies these as equity-based awards and estimates the fair values of restricted stock awards and units as the closing price of the Company’s common stock on the grant date of the award, which is expensed over the applicable vesting period. The Company values its stock options using a Black-Scholes option valuation model. The following table presents the effects of the equity compensation plans and related costs: Three Months Ended March 31, 2021 2020 (In millions) General and administrative expenses $ 10 $ 9 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 4 $ 6 Restricted Stock Units The following table presents the Company’s restricted stock units activity during the three months ended March 31, 2021 under the Equity Plan and the QEP equity incentive plan assumed by the Company in the QEP Merger: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2020 1,113,480 $ 48.58 Granted (1) 638,589 $ 79.89 Vested (293,422) $ 79.76 Forfeited (19,061) $ 45.33 Unvested at March 31, 2021 1,439,586 $ 55.42 (1) Includes 164,088 replacement restricted stock unit awards granted in connection with the QEP Merger, the majority of which vested upon closing of the QEP Merger. For additional information regarding the QEP Merger, see Note 4— Acquisitions . The aggregate fair value of restricted stock units that vested during the three months ended March 31, 2021 and 2020 was $23 million and $8 million, respectively. As of March 31, 2021, the Company’s unrecognized compensation cost related to unvested restricted stock units was $71 million, which is expected to be recognized over a weighted-average period of 2.5 years. Performance Based Restricted Stock Units In March 2019, eligible employees received performance restricted stock unit awards totaling 199,723 units from which a minimum of 0% and a maximum of 200% of the units could be awarded based upon the measurement of total stockholder return of the Company’s common stock as compared to a designated peer group during the performance period of January 1, 2019 to December 31, 2021 and cliff vest at December 31, 2021 subject to continued employment. In March 2019, eligible employees received performance restricted stock unit awards totaling 32,958 units from which a minimum of 0% and a maximum of 200% units could be awarded. The awards have a performance period of January 1, 2019 to December 31, 2021 and vest in five equal installments beginning on March 1, 2025. In March 2020, eligible employees received performance restricted stock unit awards totaling 225,047 units from which a minimum of 0% and a maximum of 200% of the units could be awarded based upon the measurement of total stockholder return of the Company’s common stock as compared to a designated peer group during the three-year performance period of January 1, 2020 to December 31, 2022 and cliff vest at December 31, 2022 subject to continued employment. The initial payout of the March 2020 awards will be further adjusted by a TSR modifier that may reduce the payout or increase the payout up to a maximum of 250%. In March 2021, eligible employees received performance restricted stock unit awards totaling 198,454 units from which a minimum of 0% and a maximum of 200% of the units could be awarded based upon the measurement of total stockholder return of the Company’s common stock as compared to a designated peer group during the three-year performance period of January 1, 2021 to December 31, 2023 and cliff vest at December 31, 2023 subject to continued employment. The initial payout of the March 2021 awards will be further adjusted by a TSR modifier that may reduce the payout or increase the payout up to a maximum of 250%. The fair value of each performance restricted stock unit is estimated at the date of grant using a Monte Carlo simulation, which results in an expected percentage of units to be earned during the performance period. The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the awards granted during the periods presented: 2021 2020 2019 Grant-date fair value $ 131.06 $ 70.17 $ 137.22 Grant-date fair value (5-year vesting) $ 132.48 Risk-free rate 0.15 % 0.86 % 2.55 % Company volatility 69.60 % 36.70 % 35.00 % The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the three months ended March 31, 2021: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2020 411,587 $ 99.10 Granted 198,454 $ 131.06 Unvested at March 31, 2021 (1) 610,041 $ 109.49 (1) A maximum of 1,431,833 units could be awarded based upon the Company’s final TSR ranking. As of March 31, 2021, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $43 million, which is expected to be recognized over a weighted-average period of 2.2 years. Rattler Long-Term Incentive Plan On May 22, 2019, the board of directors of Rattler’s General Partner adopted the Rattler Midstream LP Long Term Incentive Plan (“Rattler LTIP”) for employees, consultants and directors of Rattler’s General Partner and any of its affiliates, including Diamondback, who perform services for Rattler. Under the Rattler LTIP, the board of directors of Rattler’s General Partner is authorized to issue phantom units to eligible employees and non-employee directors. Rattler estimates the fair value of phantom units as the closing price of Rattler’s common units on the grant date of the award, which is expensed over the applicable vesting period. Upon vesting, the phantom units entitle the recipient to one common unit of Rattler for each phantom unit. The recipients are also entitled to distribution equivalent rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one phantom unit between the grant date and the vesting date. The following table presents the phantom unit activity under the Rattler LTIP for the three months ended March 31, 2021: Phantom Weighted Average Unvested at December 31, 2020 2,089,668 $ 17.07 Granted 210,631 $ 11.01 Vested (4,755) $ 12.59 Forfeited (13,385) $ 5.79 Unvested at March 31, 2021 2,282,159 $ 16.59 The aggregate fair value of phantom units that vested during the three months ended March 31, 2021 was immaterial. As of March 31, 2021, the unrecognized compensation cost related to unvested phantom units was $30 million, which is expected to be recognized over a weighted-average period of three years. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective income tax rates were 22.6% and (26.1)% for the three months ended March 31, 2021 and 2020, respectively. Total income tax expense from continuing operations for the three months ended March 31, 2021 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to (i) state income taxes, net of federal benefit, and (ii) the impact of permanent differences between book and taxable income, partially offset by (iii) tax benefit resulting from a reduction in the valuation allowance on Viper’s deferred tax assets due to pre-tax income for the period. For the three months ended March 31, 2021, the Company’s items of discrete income tax expense or benefit were not material. On March 17, 2021, the Company completed its acquisition of QEP. For federal income tax purposes, the transaction qualified as a nontaxable merger whereby the Company acquired carryover tax basis in QEP’s assets and liabilities. The Company recorded an opening balance sheet net deferred tax asset of $15 million, primarily consisting of deferred tax assets related to tax attributes acquired from QEP, partially offset by a valuation allowance, and deferred tax liabilities resulting from the excess of financial reporting carrying value over tax basis of oil and natural gas properties and other assets acquired from QEP. The acquired income tax attributes, including federal net operating loss and credit carryforwards, are subject to an annual limitation under Internal Revenue Code Section 382. The Company has considered the positive and negative evidence regarding realizability of these federal tax attributes including taxable income in prior carryback years, the annual limitation imposed by Section 382, and the anticipated timing of reversal of its deferred tax liabilities, resulting in a valuation allowance on the portion of QEP’s federal tax attributes estimated not more likely than not to be realized prior to expiration. In addition, acquired tax attributes include state net operating loss carryforwards for which a valuation allowance has been provided, since the Company does not believe the state net operating losses are more likely than not to be realized based on its assessment of anticipated future operations in those states. Total income tax expense from continuing operations for the three months ended March 31, 2020 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax loss primarily due to (i) the impact of recording a valuation allowance on Viper’s deferred tax assets, (ii) state income taxes and (iii) the impact of permanent differences between book and taxable income, partially offset by tax benefit resulting from the anticipated carryback of federal net operating losses. For the three months ended March 31, 2020, the Company recorded a discrete income tax expense of $143 million related to application of a valuation allowance on Viper’s beginning-of-year deferred tax assets, which consisted primarily of its investment in Viper LLC and federal net operating loss carryforwards. A valuation allowance was also applied against the year-to-date tax benefit resulting from Viper’s pre-tax loss for 2020. The determination to record a valuation allowance was based on management’s assessment of all available evidence, both positive and negative, supporting realizability of Viper’s deferred tax assets. In light of the criteria established by applicable GAAP for recognizing the tax benefit of deferred tax assets, management’s assessment resulted in recording a valuation allowance against Viper’s deferred tax assets as of March 31, 2020. In addition, for the three months ended March 31, 2020, the Company recorded a discrete income tax benefit of $25 million related to the available carryback of certain federal net operating losses to tax year(s) in which the corporate income tax rate was 35%. Prior to the enactment of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in the first quarter of 2020, there was no tax refund available to the Company with respect to its losses, resulting in deferred tax benefit associated with federal net operating loss carryforwards at the statutory 21% corporate income tax rate. The Company considered the impact of the American Rescue Plan, enacted on March 11, 2021, and concluded its provisions related to U.S. income taxes for corporations did not materially affect the Company’s current or deferred tax balances. The Company also considered the impact of the CARES Act, enacted March 27, 2020, in the period of enactment, resulting in discrete income tax benefit for the three months ended March 31, 2020 related to the carryback of approximately $179 million of the Company’s federal net operating losses as noted above. As a result of the refund associated with such carryback as well as the accelerated refund available for minimum tax credits, the Company received a refund of federal taxes in the first quarter of 2021 of approximately $100 million. In addition, the Company’s current and long-term income taxes receivable of approximately $33 million and $32 million, respectively, primarily relate to anticipated refunds of minimum tax credits resulting from available carryback of certain federal net operating losses acquired from QEP. |
DERIVATIVES
DERIVATIVES | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.” Commodity Contracts The Company has entered into multiple crude oil, natural gas and natural gas liquids derivatives, indexed to the respective indices as noted in the table below, to reduce price volatility associated with certain of its oil and natural gas sales. By using derivative instruments to economically hedge exposure to changes in commodity prices, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company’s counterparties are participants in the secured second amended and restated credit agreement, which is secured by substantially all of the assets of the guarantor subsidiaries; therefore, the Company is not required to post any collateral. The Company does not require collateral from its counterparties. The Company has entered into derivative instruments only with counterparties that are also lenders under its credit facility and have been deemed an acceptable credit risk. As of March 31, 2021, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 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 Apr. - June 2021 Swap 43,341 WTI $— $44.60 $— $— July - Sep. 2021 Swap 38,348 WTI $— $42.82 $— $— Oct. - Dec. 2021 Swap 30,674 WTI $— $42.36 $— $— Apr. - Dec. 2021 Swap 5,000 Argus WTI Houston $— $37.78 $— $— Apr. - Dec. 2021 Swap 5,000 Brent $— $41.62 $— $— Apr. - June 2021 Basis Swap (1) 39,000 Argus WTI Midland $0.83 $— $— $— July - Dec. 2021 Basis Swap (1) 34,000 Argus WTI Midland $0.91 $— $— $— July - Dec. 2021 Swaption 5,000 Brent $— $51.00 $— $— Apr. - June 2021 Roll Swap (2)(3) 46,000 WTI $0.16 $— $— $— July - Dec. 2021 Roll Swap (2)(3) 34,000 WTI $0.24 $— $— $— Apr. - June 2021 Costless Collar 20,670 WTI $— $— $35.78 $47.08 July - Sep. 2021 Costless Collar 17,685 WTI $— $— $35.27 $46.50 Oct. - Dec. 2021 Costless Collar 26,663 WTI $— $— $38.69 $53.80 July - Dec. 2021 Costless Collar 5,000 Argus WTI Houston $— $— $45.00 $68.33 Apr. - June 2021 Costless Collar 82,000 Brent $— $— $39.40 $48.84 July - Sep. 2021 Costless Collar 62,000 Brent $— $— $39.61 $48.42 Oct. - Dec. 2021 Costless Collar 64,000 Brent $— $— $39.78 $48.90 Jan. - June 2022 Swap 1,000 WTI $— $45.00 $— $— Jan. - Dec. 2022 Basis Swap (1) 10,000 Argus WTI Midland $0.84 $— $— $— Jan. - Mar. 2022 Costless Collar 2,000 Argus WTI Houston $— $— $45.00 $67.50 Jan. - Mar. 2022 Costless Collar 12,000 WTI $— $— $45.00 $68.00 Apr. - June 2022 Costless Collar 6,000 WTI $— $— $45.00 $68.75 Jan. - Mar. 2022 Costless Collar 34,000 Brent $— $— $45.00 $67.54 Apr. - June 2022 Costless Collar 9,000 Brent $— $— $45.00 $75.07 NATURAL GAS Apr. - Dec. 2021 Swap 245,000 Henry Hub $— $2.65 $— $— Apr. - Dec. 2021 Swap 50,000 Waha Hub $— $1.92 $— $— Apr. - Dec. 2021 Basis Swap (1) 250,000 Waha Hub $(0.66) $— $— $— Jan. - Dec. 2022 Basis Swap (1) 190,000 Waha Hub $(0.36) $— $— $— NATURAL GAS LIQUIDS Apr. - Dec. 2021 Swap 2,000 Mont Belvieu Propane $— $29.40 $— $— (1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts. (2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price for the notional volumes covered by the rolling hedge basis swap contracts. (3) Includes a rolling hedge basis swap contract for the differential between the NYMEX prices for WTI Cushing and WTI CMA calendar month average of each basis for a notional quantity of 4,000 barrels per day with a weighted average differential of $0.00. Settlement Month Settlement Year Type of Contract Bbls/Mcf Per Day Index Put Price OIL Jan. - Dec. 2022 Short Put 5,000 Brent $35.00 Interest Rate Swaps The Company has used interest rate swaps to reduce its exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps were not designated as hedging instruments and as a result, the Company recognized all changes in fair value immediately in earnings. During the first quarter of 2021, the Company terminated all of its interest rate swaps which resulted in cash received upon settlement of $80 million, net of fees. The interest swaps contained an other-than-insignificant financing element at inception, and therefore, the cash receipts were classified as cash flows from financing activities in the condensed consolidated statements of cash flow for the three months ended March 31, 2021. Balance Sheet Offsetting of Derivative Assets and Liabilities The fair value of derivative instruments is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions, including any deferred premiums that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 14— Fair Value Measurements for further details. Gains and Losses on Derivative Instruments The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations: Three Months Ended March 31, 2021 2020 (In millions) Gain (loss) on derivative instruments, net Commodity contracts $ (294) $ 604 Interest rate swaps 130 (62) Total $ (164) $ 542 Net cash received (paid) on settlements Commodity contracts $ (182) $ 87 Interest rate swaps (1) 80 — Total $ (102) $ 87 (1) The three months ended March 31, 2021 include cash received on contracts terminated prior to their contractual maturity of $80 million. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. The Company estimates the fair values of proved oil and natural gas properties assumed in business combinations using discounted cash flow techniques and based on market assumptions as to the future commodity prices, internal estimates of future quantities of oil and natural gas reserves, future estimated rates of production, expected recovery rates and risk-adjustment discounts. The estimated fair values of unevaluated oil and natural gas properties were based on the location, engineering and geological studies, historical well performance, and applicable mineral lease terms. Given the unobservable nature of the inputs, the estimated fair values of oil and natural gas properties assumed is deemed to use Level 3 inputs. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis, including the Company’s derivative instruments. The fair values of the Company’s derivative contracts are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs. The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of March 31, 2021 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: Derivative Instruments $ — $ 33 $ — $ 33 $ (33) $ — Non-current: Derivative Instruments $ — $ 8 $ — $ 8 $ (4) $ 4 Liabilities: Current: Derivative Instruments $ — $ 637 $ — $ 637 $ (33) $ 604 Non-current: Derivative Instruments $ — $ 12 $ — $ 12 $ (4) $ 8 As of December 31, 2020 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: Derivative Instruments $ — $ 43 $ — $ 43 $ (42) $ 1 Non-current: Derivative Instruments $ — $ 187 $ — $ 187 $ (187) $ — Liabilities: Current: Derivative Instruments $ — $ 291 $ — $ 291 $ (42) $ 249 Non-current: Derivative Instruments $ — $ 244 $ — $ 244 $ (187) $ 57 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: March 31, 2021 December 31, 2020 Carrying Carrying Value (1) Fair Value Value (1) Fair Value (In millions) Debt: Revolving credit facility $ 52 $ 52 $ 23 $ 23 4.625% Notes due 2021 $ 191 $ 192 $ 191 $ 193 5.375% Senior Notes due 2022 (2) $ 26 $ 26 $ — $ — 7.320% Medium-term Notes, Series A, due 2022 $ 21 $ 21 $ 21 $ 22 0.900% Senior Notes due 2023 $ 647 $ 651 $ — $ — 5.250% Senior Notes due 2023 (2) $ 11 $ 11 $ — $ — 2.875% Senior Notes due 2024 $ 993 $ 1,058 $ 993 $ 1,053 4.750% Senior Notes due 2025 $ 497 $ 558 $ 496 $ 565 5.375% Senior Notes due 2025 $ 432 $ 447 $ 799 $ 824 3.250% Senior Notes due 2026 $ 793 $ 841 $ 793 $ 857 5.625% Senior Notes due 2026 (2) $ 20 $ 21 $ — $ — 7.125% Medium-term Notes, Series B, due 2028 $ 107 $ 120 $ 107 $ 119 3.500% Senior Notes due 2029 $ 1,188 $ 1,249 $ 1,187 $ 1,286 3.125% Senior Notes due 2031 $ 889 $ 901 $ — $ — 4.400% Senior Notes due 2051 $ 640 $ 666 $ — $ — Viper revolving credit facility $ 57 $ 57 $ 84 $ 84 Viper's 5.375% Senior Notes due 2027 $ 472 $ 501 $ 472 $ 501 Rattler revolving credit facility $ 54 $ 54 $ 79 $ 79 Rattler’s 5.625% Senior Notes due 2025 $ 491 $ 522 $ 491 $ 528 DrillCo Agreement $ 75 $ 75 $ 79 $ 79 (1) The carrying value includes associated deferred loan costs and any remaining discount or premium, if any. (2) These notes were issued by QEP prior to the QEP Merger and remained outstanding as of March 31, 2021 following the QEP Merger and the Company’s subsequent repurchase of a portion of these notes in its tender offers for these notes. The fair values of the Company’s revolving credit facility, the Viper credit agreement and the Rattler credit agreement approximate their carrying values based on borrowing rates available to the Company for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair values of the outstanding notes were determined using the March 31, 2021 quoted market price, a Level 1 classification in the fair value hierarchy. Fair Value of Financial Assets |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Company is a party to various routine legal proceedings, disputes and claims arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations affecting the crude oil and natural gas industry. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Company, cannot be predicted with certainty, the Company’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Company’s assessment. The Company records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS First Quarter 2021 Dividend Declaration On April 29, 2021, the Board of Directors of the Company declared a cash dividend for the first quarter of 2021 of $0.40 per share of common stock, payable on May 20, 2021 to its stockholders of record at the close of business on May 13, 2021. Commodity Contracts Subsequent to March 31, 2021, the Company entered into new costless collars and basis swaps. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges noted in the table below. When aggregating multiple contracts, the weighted average contract price is disclosed. The following table presents the derivative contracts entered into by the Company between April 1, 2021 and April 30, 2021. Swaps Collars Settlement Month Settlement Year Type of Contract Bbls/MMBtu Per Day Index Weighted Average Differential Weighted Average Floor Price Weighted Average Ceiling Price OIL Jan. - June 2022 Costless Collar 14,000 Argus WTI Houston $— $45.00 $69.98 Jan. - June 2022 Costless Collar 10,000 Brent $— $45.00 $74.82 NATURAL GAS Jan. - Dec. 2022 Basis Swap 20,000 Waha Hub $(0.23) $— $— Divestitures On May 3, 2021, the Company signed a definitive agreement to divest all of its Williston Basin assets acquired in the QEP Merger, consisting of approximately 95,000 net acres, for a purchase price of approximately $745 million, subject to certain closing adjustments. These assets have estimated full year 2021 net production of approximately 15 MBO/d (25 MBOE/d). This transaction is expected to close in the third quarter of 2021, subject to continued due diligence and closing conditions. The Company intends to use its net proceeds from this transaction toward debt reduction. On April 28, 2021 and April 29, 2021, the Company signed definitive agreements to divest certain non-core Permian assets including 7,000 net acres of non-core Southern Midland Basin acreage in Upton county and approximately 1,300 net acres of non-core, non-operated Delaware Basin assets in Lea county, New Mexico for a combined gross purchase price of $87 million, subject to certain closing adjustments. These assets have estimated full year 2021 net production of approximately 900 BO/d (2,650 BOE/d) from 140 producing wells. These transactions are expected to close in the second quarter of 2021, subject to continued diligence and closing conditions. The Company intends to use its net proceeds from these transactions toward debt reduction. On April 30, 2021, each of Rattler and its joint venture partner Amarillo Midstream, LLC sold its interest in Amarillo Rattler to EnLink Midstream Operating, LP for aggregate total gross potential consideration of $75 million, consisting of $50 million at closing, $10 million upon the first anniversary of closing and up to $15 million in contingent earn-out payments over a three-year span based upon the Company’s development activity. Net of transaction expenses and working capital adjustments, Rattler received $24 million at closing, with an incremental $5 million due in April 2022 and could receive up to $7.5 million in contingent payments from 2023 to 2025. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company reports its operations in two operating segments: (i) the upstream segment, which is engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas and (ii) the midstream operations segment, which is focused on owning, operating, developing and acquiring midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. All of the Company’s equity method investments are included in the midstream operations segment. The following tables summarize the results of the Company’s operating segments during the periods presented: Upstream Midstream Operations Eliminations Total Three Months Ended March 31, 2021: (In millions) Third-party revenues $ 1,172 $ 12 $ — $ 1,184 Intersegment revenues — 87 (87) — Total revenues 1,172 99 (87) 1,184 Depreciation, depletion, amortization and accretion 262 11 — 273 Impairment of midstream assets — 3 — 3 Income (loss) from operations 552 38 (19) 571 Interest expense, net (49) (7) — (56) Other income (expense) (222) (3) (2) (227) Provision for (benefit from) income taxes 63 2 — 65 Net income (loss) attributable to non-controlling interest (3) 6 — 3 Net income (loss) attributable to Diamondback Energy, Inc. 221 20 (21) 220 As of March 31, 2021: Total assets $ 20,566 $ 1,769 $ (339) $ 21,996 Upstream Midstream Operations Eliminations Total Three Months Ended March 31, 2020: (In millions) Third-party revenues $ 883 $ 16 $ — $ 899 Intersegment revenues — 113 (113) — Total revenues 883 129 (113) 899 Depreciation, depletion, amortization and accretion 396 13 — 409 Impairment of oil and natural gas properties 1,009 — — 1,009 Income (loss) from operations (782) 61 (81) (802) Interest expense, net (45) (3) — (48) Other income (expense) 534 — (1) 533 Provision for (benefit from) income taxes 79 4 — 83 Net income (loss) attributable to non-controlling interest (128) 41 (41) (128) Net income (loss) attributable to Diamondback Energy, Inc. (244) 13 (41) (272) As of December 31, 2020: Total assets $ 16,128 $ 1,809 $ (318) $ 17,619 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe condensed consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had an immaterial effect on the previously reported total assets, total liabilities, stockholders’ equity, results of operations or cash flows. |
Use of Estimates | Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry, given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19 and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets resulted in significant negative pricing pressures in the first half of 2020, followed by a recovery in pricing in the second half of 2020 and into 2021. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of changing market conditions. Such circumstances generally increase the uncertainty in the Company’s accounting estimates, particularly those involving financial forecasts. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities assumed, equity-based compensation, fair value estimates of derivative instruments and estimates of income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance and is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. |
Revenue from Contracts with Customers | Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. |
Fair Value Measurement | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported at the end of the period in the condensed consolidated statements of cash flows for the three months ended March 31, 2021 and 2020 to the line items within the condensed consolidated balance sheets: Three Months Ended March 31, 2021 2020 (In millions) Cash and cash equivalents $ 121 $ 149 Restricted cash 19 6 Restricted cash included in funds held in escrow (1) 34 — Total cash, cash equivalents and restricted cash $ 174 $ 155 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin: Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Midland Basin Delaware Basin Other Total Midland Basin Delaware Basin Other Total (In millions) Oil sales $ 569 $ 358 $ 17 $ 944 $ 473 $ 351 $ 3 $ 827 Natural gas sales 41 61 2 104 2 2 — 4 Natural gas liquid sales 75 47 2 124 29 23 — 52 Total $ 685 $ 466 $ 21 $ 1,172 $ 504 $ 376 $ 3 $ 883 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of asset acquisition | The following table presents the acquisition consideration paid in the Guidon Acquisition (in millions, except per share data, shares in thousands): Consideration: Shares of Diamondback common stock issued at closing 10,676 Closing price per share of Diamondback common stock on the closing date $ 69.28 Fair value of Diamondback common stock issued $ 740 Cash consideration 375 Total consideration (including fair value of Diamondback common stock issued) $ 1,115 Total consideration $ 1,115 Fair value of liabilities assumed: Asset retirement obligations 9 Fair value of assets acquired: Oil and gas properties 1,110 Midstream assets 14 Amount attributable to assets acquired 1,124 Net assets acquired and liabilities assumed $ 1,115 |
Schedule of acquisition consideration paid | The following table presents the acquisition consideration paid to QEP stockholders in the QEP Merger (in millions, except per share data, shares in thousands): Consideration: Eligible shares of QEP common stock converted into shares of Diamondback common stock 238,153 Shares of QEP equity awards included in precombination consideration 4,221 Total shares of QEP common stock eligible for merger consideration 242,374 Exchange ratio 0.050 Shares of Diamondback common stock issued as merger consideration (in thousands) 12,119 Closing price per share of Diamondback common stock $ 81.41 Total consideration (fair value of the Company's common stock issued) $ 987 |
Schedule of preliminary purchase price allocation | The following table sets forth the Company’s preliminary purchase price allocation (in millions): Total consideration $ 987 Fair value of liabilities assumed: Accounts payable - trade $ 26 Accrued capital expenditures 38 Other accrued liabilities 108 Revenues and royalties payable 67 Derivative instruments 242 Long-term debt 1,710 Asset retirement obligations 54 Other long-term liabilities 47 Amount attributable to liabilities assumed $ 2,292 Fair value of assets acquired: Cash, cash equivalents and restricted cash $ 22 Accounts receivable - joint interest and other, net 87 Accounts receivable - oil and natural gas sales, net 44 Inventories 18 Income tax receivable 33 Prepaid expenses and other current assets 7 Oil and natural gas properties 2,938 Other property, equipment and land 9 Deferred income taxes 15 Other assets 106 Amount attributable to assets acquired 3,279 Net assets acquired and liabilities assumed $ 987 |
Acquisition pro forma information | Three Months Ended March 31, 2021 2020 (In millions, except per share amounts) Revenues $ 1,481 $ 1,190 Income (loss) from operations $ 684 $ (822) Net income (loss) $ 146 $ 58 Basic earnings per common share $ 0.81 $ 0.32 Diluted earnings per common share $ 0.80 $ 0.32 |
REAL ESTATE ASSETS (Tables)
REAL ESTATE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Real Estate [Abstract] | |
Schedule of real estate assets | The following schedule presents the cost and related accumulated depreciation of the Company’s real estate assets. The Company’s intangible lease assets and related accumulated amortization were immaterial as of March 31, 2021 and December 31, 2020. Estimated Useful Lives March 31, 2021 December 31, 2020 (Years) (In millions) Buildings 20-30 $ 104 $ 102 Tenant improvements 15 5 5 Land N/A 2 2 Land improvements 15 1 1 Total real estate assets 112 110 Less: accumulated depreciation (15) (13) Total investment in land and buildings, net $ 97 $ 97 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment includes the following as of the dates indicated: March 31, December 31, 2021 2020 (In millions) Oil and natural gas properties: Subject to depletion $ 23,335 $ 19,884 Not subject to depletion 8,430 7,493 Gross oil and natural gas properties 31,765 27,377 Accumulated depletion (4,493) (4,237) Accumulated impairment (7,954) (7,954) Oil and natural gas properties, net 19,318 15,186 Midstream assets 1,018 1,013 Other property, equipment and land 152 138 Accumulated depreciation and impairment (136) (123) Total property and equipment, net $ 20,352 $ 16,214 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Asset Retirement Obligation [Abstract] | |
Asset retirement obligations | The following table describes the changes to the Company’s asset retirement obligations liability for the following periods: Three Months Ended March 31, 2021 2020 (In millions) Asset retirement obligations, beginning of period $ 109 $ 94 Additional liabilities incurred 2 4 Liabilities acquired 63 — Liabilities settled and divested (1) — Accretion expense 2 2 Revisions in estimated liabilities 20 — Asset retirement obligations, end of period 195 100 Less current portion (1) 5 1 Asset retirement obligations - long-term $ 190 $ 99 (1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets. |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The following table presents the carrying values of Rattler’s equity method investments as of the dates indicated: Ownership Interest March 31, 2021 December 31, 2020 (In millions) EPIC Crude Holdings, LP 10 % $ 116 $ 121 Gray Oak Pipeline, LLC 10 % 127 130 Wink to Webster Pipeline LLC (1) 4 % 86 83 OMOG JV LLC 60 % 191 194 Amarillo Rattler, LLC (2) 50 % 5 5 Total $ 525 $ 533 (1) The Wink to Webster joint venture is developing a crude oil pipeline (the “Wink to Webster pipeline”). The Wink to Webster pipeline’s main segment began interim service operation in the fourth quarter of 2020, and the joint venture is expected to begin full commercial operations in the fourth quarter of 2021. (2) On April 30, 2021, Rattler sold its interest in the Amarillo Rattler, LLC (“Amarillo Rattler”) joint venture. See Note 16— Subsequent Events for further discussion. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated: March 31, December 31, 2021 2020 (In millions) 4.625% Notes due 2021 $ 191 $ 191 5.375% Senior Notes due 2022 (1) 25 — 7.320% Medium-term Notes, Series A, due 2022 20 20 0.900% Senior Notes due 2023 650 — 5.250% Senior Notes due 2023 (1) 10 — 2.875% Senior Notes due 2024 1,000 1,000 4.750% Senior Notes due 2025 500 500 5.375% Senior Notes due 2025 432 800 3.250% Senior Notes due 2026 800 800 5.625% Senior Notes due 2026 (1) 18 — 7.125% Medium-term Notes, Series B, due 2028 100 100 3.500% Senior Notes due 2029 1,200 1,200 3.125% Senior Notes due 2031 900 — 4.400% Senior Notes due 2051 650 — DrillCo Agreement (2) 75 79 Unamortized debt issuance costs (42) (29) Unamortized discount costs (31) (27) Unamortized premium costs 15 15 Revolving credit facility (3) 52 23 Viper revolving credit facility (3) 57 84 Viper 5.375% Senior Notes due 2027 480 480 Rattler revolving credit facility (4) 54 79 Rattler 5.625% Senior Notes due 2025 500 500 Total debt, net 7,656 5,815 Less: current maturities of long-term debt (191) (191) Total long-term debt $ 7,465 $ 5,624 (1) At the effective time of the QEP Merger, QEP became a wholly owned subsidiary of the Company and remained the issuer of the notes. (2) The Company entered into a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. (“CEMOF”) to fund oil and natural gas development. As of March 31, 2021, the amount due to CEMOF related to this alliance was $75 million. (3) Each of these revolving credit facilities matures on November 1, 2022. (4) The Rattler revolving credit facility matures on May 28, 2024. |
CAPITAL STOCK AND EARNINGS PE_2
CAPITAL STOCK AND EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of reconciliation of basic and diluted net income per share | A reconciliation of the components of basic and diluted earnings per common share is presented in the table below: Three Months Ended March 31, 2021 2020 ($ in millions, except per share amounts, shares in thousands) Net income (loss) attributable to common stock $ 220 $ (272) Weighted average common shares outstanding: Basic weighted average common units outstanding 164,169 158,291 Effect of dilutive securities: Potential common shares issuable 757 203 Diluted weighted average common shares outstanding 164,926 158,494 Basic net income (loss) attributable to common stock $ 1.34 $ (1.72) Diluted net income (loss) attributable to common stock $ 1.33 $ (1.72) |
Schedule of change in ownership interest | The following table summarizes changes in the ownership interest in consolidated subsidiaries during the periods presented: Three Months Ended March 31, 2021 2020 (In millions) Net income (loss) attributable to the Company $ 220 $ (272) Change in ownership of consolidated subsidiaries (4) — Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest $ 216 $ (272) |
EQUITY-BASED COMPENSATION (Tabl
EQUITY-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
The effects of stock-based compensation plans and related costs | The following table presents the effects of the equity compensation plans and related costs: Three Months Ended March 31, 2021 2020 (In millions) General and administrative expenses $ 10 $ 9 Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties $ 4 $ 6 |
Summary of restricted stock units | The following table presents the Company’s restricted stock units activity during the three months ended March 31, 2021 under the Equity Plan and the QEP equity incentive plan assumed by the Company in the QEP Merger: Restricted Stock Weighted Average Grant-Date Unvested at December 31, 2020 1,113,480 $ 48.58 Granted (1) 638,589 $ 79.89 Vested (293,422) $ 79.76 Forfeited (19,061) $ 45.33 Unvested at March 31, 2021 1,439,586 $ 55.42 (1) Includes 164,088 replacement restricted stock unit awards granted in connection with the QEP Merger, the majority of which vested upon closing of the QEP Merger. For additional information regarding the QEP Merger, see Note 4— Acquisitions . |
Summary of grant-date fair values of performance restricted stock units granted and related assumptions | The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the awards granted during the periods presented: 2021 2020 2019 Grant-date fair value $ 131.06 $ 70.17 $ 137.22 Grant-date fair value (5-year vesting) $ 132.48 Risk-free rate 0.15 % 0.86 % 2.55 % Company volatility 69.60 % 36.70 % 35.00 % |
Schedule of performance restricted stock units activity | The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the three months ended March 31, 2021: Performance Restricted Stock Units Weighted Average Grant-Date Fair Value Unvested at December 31, 2020 411,587 $ 99.10 Granted 198,454 $ 131.06 Unvested at March 31, 2021 (1) 610,041 $ 109.49 (1) A maximum of 1,431,833 units could be awarded based upon the Company’s final TSR ranking. |
Phantom units activity | The following table presents the phantom unit activity under the Rattler LTIP for the three months ended March 31, 2021: Phantom Weighted Average Unvested at December 31, 2020 2,089,668 $ 17.07 Granted 210,631 $ 11.01 Vested (4,755) $ 12.59 Forfeited (13,385) $ 5.79 Unvested at March 31, 2021 2,282,159 $ 16.59 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative contracts | As of March 31, 2021, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 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 Apr. - June 2021 Swap 43,341 WTI $— $44.60 $— $— July - Sep. 2021 Swap 38,348 WTI $— $42.82 $— $— Oct. - Dec. 2021 Swap 30,674 WTI $— $42.36 $— $— Apr. - Dec. 2021 Swap 5,000 Argus WTI Houston $— $37.78 $— $— Apr. - Dec. 2021 Swap 5,000 Brent $— $41.62 $— $— Apr. - June 2021 Basis Swap (1) 39,000 Argus WTI Midland $0.83 $— $— $— July - Dec. 2021 Basis Swap (1) 34,000 Argus WTI Midland $0.91 $— $— $— July - Dec. 2021 Swaption 5,000 Brent $— $51.00 $— $— Apr. - June 2021 Roll Swap (2)(3) 46,000 WTI $0.16 $— $— $— July - Dec. 2021 Roll Swap (2)(3) 34,000 WTI $0.24 $— $— $— Apr. - June 2021 Costless Collar 20,670 WTI $— $— $35.78 $47.08 July - Sep. 2021 Costless Collar 17,685 WTI $— $— $35.27 $46.50 Oct. - Dec. 2021 Costless Collar 26,663 WTI $— $— $38.69 $53.80 July - Dec. 2021 Costless Collar 5,000 Argus WTI Houston $— $— $45.00 $68.33 Apr. - June 2021 Costless Collar 82,000 Brent $— $— $39.40 $48.84 July - Sep. 2021 Costless Collar 62,000 Brent $— $— $39.61 $48.42 Oct. - Dec. 2021 Costless Collar 64,000 Brent $— $— $39.78 $48.90 Jan. - June 2022 Swap 1,000 WTI $— $45.00 $— $— Jan. - Dec. 2022 Basis Swap (1) 10,000 Argus WTI Midland $0.84 $— $— $— Jan. - Mar. 2022 Costless Collar 2,000 Argus WTI Houston $— $— $45.00 $67.50 Jan. - Mar. 2022 Costless Collar 12,000 WTI $— $— $45.00 $68.00 Apr. - June 2022 Costless Collar 6,000 WTI $— $— $45.00 $68.75 Jan. - Mar. 2022 Costless Collar 34,000 Brent $— $— $45.00 $67.54 Apr. - June 2022 Costless Collar 9,000 Brent $— $— $45.00 $75.07 NATURAL GAS Apr. - Dec. 2021 Swap 245,000 Henry Hub $— $2.65 $— $— Apr. - Dec. 2021 Swap 50,000 Waha Hub $— $1.92 $— $— Apr. - Dec. 2021 Basis Swap (1) 250,000 Waha Hub $(0.66) $— $— $— Jan. - Dec. 2022 Basis Swap (1) 190,000 Waha Hub $(0.36) $— $— $— NATURAL GAS LIQUIDS Apr. - Dec. 2021 Swap 2,000 Mont Belvieu Propane $— $29.40 $— $— (1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts. (2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price for the notional volumes covered by the rolling hedge basis swap contracts. (3) Includes a rolling hedge basis swap contract for the differential between the NYMEX prices for WTI Cushing and WTI CMA calendar month average of each basis for a notional quantity of 4,000 barrels per day with a weighted average differential of $0.00. Settlement Month Settlement Year Type of Contract Bbls/Mcf Per Day Index Put Price OIL Jan. - Dec. 2022 Short Put 5,000 Brent $35.00 Swaps Collars Settlement Month Settlement Year Type of Contract Bbls/MMBtu Per Day Index Weighted Average Differential Weighted Average Floor Price Weighted Average Ceiling Price OIL Jan. - June 2022 Costless Collar 14,000 Argus WTI Houston $— $45.00 $69.98 Jan. - June 2022 Costless Collar 10,000 Brent $— $45.00 $74.82 NATURAL GAS Jan. - Dec. 2022 Basis Swap 20,000 Waha Hub $(0.23) $— $— |
Summary of derivative contract gains and losses included in the consolidated statements of operations | The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations: Three Months Ended March 31, 2021 2020 (In millions) Gain (loss) on derivative instruments, net Commodity contracts $ (294) $ 604 Interest rate swaps 130 (62) Total $ (164) $ 542 Net cash received (paid) on settlements Commodity contracts $ (182) $ 87 Interest rate swaps (1) 80 — Total $ (102) $ 87 (1) The three months ended March 31, 2021 include cash received on contracts terminated prior to their contractual maturity of $80 million. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair value measurement information for financial instruments measured on a recurring basis | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of March 31, 2021 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: Derivative Instruments $ — $ 33 $ — $ 33 $ (33) $ — Non-current: Derivative Instruments $ — $ 8 $ — $ 8 $ (4) $ 4 Liabilities: Current: Derivative Instruments $ — $ 637 $ — $ 637 $ (33) $ 604 Non-current: Derivative Instruments $ — $ 12 $ — $ 12 $ (4) $ 8 As of December 31, 2020 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: Derivative Instruments $ — $ 43 $ — $ 43 $ (42) $ 1 Non-current: Derivative Instruments $ — $ 187 $ — $ 187 $ (187) $ — Liabilities: Current: Derivative Instruments $ — $ 291 $ — $ 291 $ (42) $ 249 Non-current: Derivative Instruments $ — $ 244 $ — $ 244 $ (187) $ 57 |
Offsetting Assets | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of March 31, 2021 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: Derivative Instruments $ — $ 33 $ — $ 33 $ (33) $ — Non-current: Derivative Instruments $ — $ 8 $ — $ 8 $ (4) $ 4 Liabilities: Current: Derivative Instruments $ — $ 637 $ — $ 637 $ (33) $ 604 Non-current: Derivative Instruments $ — $ 12 $ — $ 12 $ (4) $ 8 As of December 31, 2020 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: Derivative Instruments $ — $ 43 $ — $ 43 $ (42) $ 1 Non-current: Derivative Instruments $ — $ 187 $ — $ 187 $ (187) $ — Liabilities: Current: Derivative Instruments $ — $ 291 $ — $ 291 $ (42) $ 249 Non-current: Derivative Instruments $ — $ 244 $ — $ 244 $ (187) $ 57 |
Offsetting Liabilities | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Company’s condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 . The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates. As of March 31, 2021 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: Derivative Instruments $ — $ 33 $ — $ 33 $ (33) $ — Non-current: Derivative Instruments $ — $ 8 $ — $ 8 $ (4) $ 4 Liabilities: Current: Derivative Instruments $ — $ 637 $ — $ 637 $ (33) $ 604 Non-current: Derivative Instruments $ — $ 12 $ — $ 12 $ (4) $ 8 As of December 31, 2020 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: Derivative Instruments $ — $ 43 $ — $ 43 $ (42) $ 1 Non-current: Derivative Instruments $ — $ 187 $ — $ 187 $ (187) $ — Liabilities: Current: Derivative Instruments $ — $ 291 $ — $ 291 $ (42) $ 249 Non-current: Derivative Instruments $ — $ 244 $ — $ 244 $ (187) $ 57 |
Fair value measurement information for financial instruments measured on a nonrecurring basis | The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: March 31, 2021 December 31, 2020 Carrying Carrying Value (1) Fair Value Value (1) Fair Value (In millions) Debt: Revolving credit facility $ 52 $ 52 $ 23 $ 23 4.625% Notes due 2021 $ 191 $ 192 $ 191 $ 193 5.375% Senior Notes due 2022 (2) $ 26 $ 26 $ — $ — 7.320% Medium-term Notes, Series A, due 2022 $ 21 $ 21 $ 21 $ 22 0.900% Senior Notes due 2023 $ 647 $ 651 $ — $ — 5.250% Senior Notes due 2023 (2) $ 11 $ 11 $ — $ — 2.875% Senior Notes due 2024 $ 993 $ 1,058 $ 993 $ 1,053 4.750% Senior Notes due 2025 $ 497 $ 558 $ 496 $ 565 5.375% Senior Notes due 2025 $ 432 $ 447 $ 799 $ 824 3.250% Senior Notes due 2026 $ 793 $ 841 $ 793 $ 857 5.625% Senior Notes due 2026 (2) $ 20 $ 21 $ — $ — 7.125% Medium-term Notes, Series B, due 2028 $ 107 $ 120 $ 107 $ 119 3.500% Senior Notes due 2029 $ 1,188 $ 1,249 $ 1,187 $ 1,286 3.125% Senior Notes due 2031 $ 889 $ 901 $ — $ — 4.400% Senior Notes due 2051 $ 640 $ 666 $ — $ — Viper revolving credit facility $ 57 $ 57 $ 84 $ 84 Viper's 5.375% Senior Notes due 2027 $ 472 $ 501 $ 472 $ 501 Rattler revolving credit facility $ 54 $ 54 $ 79 $ 79 Rattler’s 5.625% Senior Notes due 2025 $ 491 $ 522 $ 491 $ 528 DrillCo Agreement $ 75 $ 75 $ 79 $ 79 (1) The carrying value includes associated deferred loan costs and any remaining discount or premium, if any. (2) These notes were issued by QEP prior to the QEP Merger and remained outstanding as of March 31, 2021 following the QEP Merger and the Company’s subsequent repurchase of a portion of these notes in its tender offers for these notes. |
SUBSEQUENT EVENTS (Tables)
SUBSEQUENT EVENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Schedule of derivative contracts by Company subsequent aggregating weighted average contract | As of March 31, 2021, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. 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 Apr. - June 2021 Swap 43,341 WTI $— $44.60 $— $— July - Sep. 2021 Swap 38,348 WTI $— $42.82 $— $— Oct. - Dec. 2021 Swap 30,674 WTI $— $42.36 $— $— Apr. - Dec. 2021 Swap 5,000 Argus WTI Houston $— $37.78 $— $— Apr. - Dec. 2021 Swap 5,000 Brent $— $41.62 $— $— Apr. - June 2021 Basis Swap (1) 39,000 Argus WTI Midland $0.83 $— $— $— July - Dec. 2021 Basis Swap (1) 34,000 Argus WTI Midland $0.91 $— $— $— July - Dec. 2021 Swaption 5,000 Brent $— $51.00 $— $— Apr. - June 2021 Roll Swap (2)(3) 46,000 WTI $0.16 $— $— $— July - Dec. 2021 Roll Swap (2)(3) 34,000 WTI $0.24 $— $— $— Apr. - June 2021 Costless Collar 20,670 WTI $— $— $35.78 $47.08 July - Sep. 2021 Costless Collar 17,685 WTI $— $— $35.27 $46.50 Oct. - Dec. 2021 Costless Collar 26,663 WTI $— $— $38.69 $53.80 July - Dec. 2021 Costless Collar 5,000 Argus WTI Houston $— $— $45.00 $68.33 Apr. - June 2021 Costless Collar 82,000 Brent $— $— $39.40 $48.84 July - Sep. 2021 Costless Collar 62,000 Brent $— $— $39.61 $48.42 Oct. - Dec. 2021 Costless Collar 64,000 Brent $— $— $39.78 $48.90 Jan. - June 2022 Swap 1,000 WTI $— $45.00 $— $— Jan. - Dec. 2022 Basis Swap (1) 10,000 Argus WTI Midland $0.84 $— $— $— Jan. - Mar. 2022 Costless Collar 2,000 Argus WTI Houston $— $— $45.00 $67.50 Jan. - Mar. 2022 Costless Collar 12,000 WTI $— $— $45.00 $68.00 Apr. - June 2022 Costless Collar 6,000 WTI $— $— $45.00 $68.75 Jan. - Mar. 2022 Costless Collar 34,000 Brent $— $— $45.00 $67.54 Apr. - June 2022 Costless Collar 9,000 Brent $— $— $45.00 $75.07 NATURAL GAS Apr. - Dec. 2021 Swap 245,000 Henry Hub $— $2.65 $— $— Apr. - Dec. 2021 Swap 50,000 Waha Hub $— $1.92 $— $— Apr. - Dec. 2021 Basis Swap (1) 250,000 Waha Hub $(0.66) $— $— $— Jan. - Dec. 2022 Basis Swap (1) 190,000 Waha Hub $(0.36) $— $— $— NATURAL GAS LIQUIDS Apr. - Dec. 2021 Swap 2,000 Mont Belvieu Propane $— $29.40 $— $— (1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts. (2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma oil price for the notional volumes covered by the rolling hedge basis swap contracts. (3) Includes a rolling hedge basis swap contract for the differential between the NYMEX prices for WTI Cushing and WTI CMA calendar month average of each basis for a notional quantity of 4,000 barrels per day with a weighted average differential of $0.00. Settlement Month Settlement Year Type of Contract Bbls/Mcf Per Day Index Put Price OIL Jan. - Dec. 2022 Short Put 5,000 Brent $35.00 Swaps Collars Settlement Month Settlement Year Type of Contract Bbls/MMBtu Per Day Index Weighted Average Differential Weighted Average Floor Price Weighted Average Ceiling Price OIL Jan. - June 2022 Costless Collar 14,000 Argus WTI Houston $— $45.00 $69.98 Jan. - June 2022 Costless Collar 10,000 Brent $— $45.00 $74.82 NATURAL GAS Jan. - Dec. 2022 Basis Swap 20,000 Waha Hub $(0.23) $— $— |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Results of the company business segments | The following tables summarize the results of the Company’s operating segments during the periods presented: Upstream Midstream Operations Eliminations Total Three Months Ended March 31, 2021: (In millions) Third-party revenues $ 1,172 $ 12 $ — $ 1,184 Intersegment revenues — 87 (87) — Total revenues 1,172 99 (87) 1,184 Depreciation, depletion, amortization and accretion 262 11 — 273 Impairment of midstream assets — 3 — 3 Income (loss) from operations 552 38 (19) 571 Interest expense, net (49) (7) — (56) Other income (expense) (222) (3) (2) (227) Provision for (benefit from) income taxes 63 2 — 65 Net income (loss) attributable to non-controlling interest (3) 6 — 3 Net income (loss) attributable to Diamondback Energy, Inc. 221 20 (21) 220 As of March 31, 2021: Total assets $ 20,566 $ 1,769 $ (339) $ 21,996 Upstream Midstream Operations Eliminations Total Three Months Ended March 31, 2020: (In millions) Third-party revenues $ 883 $ 16 $ — $ 899 Intersegment revenues — 113 (113) — Total revenues 883 129 (113) 899 Depreciation, depletion, amortization and accretion 396 13 — 409 Impairment of oil and natural gas properties 1,009 — — 1,009 Income (loss) from operations (782) 61 (81) (802) Interest expense, net (45) (3) — (48) Other income (expense) 534 — (1) 533 Provision for (benefit from) income taxes 79 4 — 83 Net income (loss) attributable to non-controlling interest (128) 41 (41) (128) Net income (loss) attributable to Diamondback Energy, Inc. (244) 13 (41) (272) As of December 31, 2020: Total assets $ 16,128 $ 1,809 $ (318) $ 17,619 |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) | Mar. 31, 2021 |
Viper Energy Partners LP | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 59.00% |
Rattler MIdstream LP | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 72.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | ||
Accounting Policies [Abstract] | ||||||
Cash and cash equivalents | $ 121 | $ 104 | $ 149 | |||
Restricted cash | 19 | 4 | 6 | |||
Funds held in escrow | 34 | 51 | 0 | |||
Total cash, cash equivalents and restricted cash | $ 174 | [1] | $ 108 | $ 155 | [1] | $ 128 |
[1] | (1) See Note 2—Summary of Significant Accounting Policies |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,172 | $ 883 |
Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 685 | 504 |
Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 466 | 376 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 21 | 3 |
Oil sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 944 | 827 |
Oil sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 569 | 473 |
Oil sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 358 | 351 |
Oil sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 17 | 3 |
Natural gas sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 104 | 4 |
Natural gas sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 41 | 2 |
Natural gas sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 61 | 2 |
Natural gas sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2 | 0 |
Natural gas liquid sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 124 | 52 |
Natural gas liquid sales | Midland Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 75 | 29 |
Natural gas liquid sales | Delaware Basin | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 47 | 23 |
Natural gas liquid sales | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2 | $ 0 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) $ in Millions | Mar. 31, 2021USD ($) | Dec. 21, 2020USD ($)awellshares | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 17, 2021USD ($)ashares |
Guidon Operating LLC | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 10,676,000 | ||||
Cash consideration | $ 375 | ||||
Number of additional wells | well | 210 | ||||
Revenues | $ 28 | ||||
Proved properties | 537 | ||||
Unproved properties | 573 | ||||
Direct operating expenses | $ 12 | ||||
Guidon Operating LLC | Northern Midland Basin | |||||
Business Acquisition [Line Items] | |||||
Area of land (in acre) | a | 32,500 | ||||
QEP Resources Inc | |||||
Business Acquisition [Line Items] | |||||
Number of shares issued (in shares) | shares | 12,120,000 | ||||
Total Tier One acres (in acre) | a | 49,000 | ||||
Revenues | $ 54 | ||||
Proved properties | 2,300 | ||||
Unproved properties | 444 | ||||
Direct operating expenses | $ 31 | ||||
Exchange ratio (in shares) | shares | 0.050 | ||||
Remaining debt | $ 1,600 | ||||
Acquisition related costs | $ 75 | ||||
Acquisition related costs, incurred by QEP | $ 31 |
ACQUISITIONS - Schedule of Acqu
ACQUISITIONS - Schedule of Acquisition Consideration Paid (Details) - Guidon Operating LLC $ / shares in Units, shares in Thousands, $ in Millions | Dec. 21, 2020USD ($)$ / sharesshares |
Schedule of Asset Acquisition [Line Items] | |
Shares of Diamondback common stock issued at closing (shares) | shares | 10,676 |
Closing price per share of Diamondback common stock on the closing date (USD per share) | $ / shares | $ 69.28 |
Fair value of Diamondback common stock issued | $ 740 |
Cash consideration | 375 |
Total consideration | 1,115 |
Oil and gas properties | $ 1,110 |
ACQUISITIONS - Schedule of Purc
ACQUISITIONS - Schedule of Purchase Price Allocation (Details) - Guidon Operating LLC $ in Millions | Dec. 21, 2020USD ($) |
Schedule of Asset Acquisition [Line Items] | |
Total consideration | $ 1,115 |
Asset retirement obligations | 9 |
Oil and gas properties | 1,110 |
Midstream assets | 14 |
Amount attributable to assets acquired | 1,124 |
Net assets acquired and liabilities assumed | $ 1,115 |
ACQUISITIONS_ - Schedule Of Acq
ACQUISITIONS - Schedule Of Acquisition Consideration Paid (Details) $ / shares in Units, $ in Millions | Mar. 17, 2021USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Eligible shares of QEP common stock to be converted into shares of Diamondback common stock (in shares) | 238,153,000 |
Shares of QEP equity awards included in precombination consideration (in shares) | 4,221,000 |
Total shares of QEP common stock eligible for merger consideration (in shares) | 242,374,000 |
Additional shares of Diamondback common stock to be issued as merger consideration (in shares) | 12,119,000 |
Business acquisition, share price (in USD per share) | $ / shares | $ 81.41 |
QEP Resources Inc | |
Business Acquisition [Line Items] | |
Exchange ratio (in shares) | 0.050 |
Business combination, total consideration | $ | $ 987 |
ACQUISITIONS - Schedule of Prel
ACQUISITIONS - Schedule of Preliminary Purchase Price Allocation (Details) - QEP Resources Inc $ in Millions | Mar. 17, 2021USD ($) |
Business Combination, Consideration Transferred [Abstract] | |
Total consideration | $ 987 |
Fair value of liabilities assumed: | |
Accounts payable - trade | 26 |
Accrued capital expenditures | 38 |
Other accrued liabilities | 108 |
Revenues and royalties payable | 67 |
Derivative instruments | 242 |
Long-term debt | 1,710 |
Asset retirement obligations | 54 |
Other long-term liabilities | 47 |
Amount attributable to liabilities assumed | 2,292 |
Fair value of assets acquired: | |
Cash, cash equivalents and restricted cash | 22 |
Accounts receivable - joint interest and other, net | 87 |
Accounts receivable - oil and natural gas sales, net | 44 |
Inventories | 18 |
Income tax receivable | 33 |
Prepaid expenses and other current assets | 7 |
Oil and natural gas properties | 2,938 |
Other property, equipment and land | 9 |
Deferred income taxes | 15 |
Other assets | 106 |
Amount attributable to assets acquired | 3,279 |
Net assets acquired and liabilities assumed | $ 987 |
ACQUISITIONS - Business Acquisi
ACQUISITIONS - Business Acquisition, Pro Forma Information (Details) - QEP Resources Inc - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,481 | $ 1,190 |
Income (loss) from operations | 684 | (822) |
Net income (loss) | $ 146 | $ 58 |
Basic earnings per common share (in USD per share) | $ 0.81 | $ 0.32 |
Diluted earnings per common share (in USD per share) | $ 0.80 | $ 0.32 |
REAL ESTATE ASSETS (Details)
REAL ESTATE ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Real Estate [Line Items] | ||
Buildings | $ 104 | $ 102 |
Tenant improvements | 5 | 5 |
Land | 2 | 2 |
Land improvements | 1 | 1 |
Total real estate assets | 112 | 110 |
Less: accumulated depreciation | (15) | (13) |
Total investment in land and buildings, net | $ 97 | $ 97 |
Buildings | Minimum | ||
Real Estate [Line Items] | ||
Real estate assets, estimated useful lives | 20 years | |
Buildings | Maximum | ||
Real Estate [Line Items] | ||
Real estate assets, estimated useful lives | 30 years | |
Tenant improvements | ||
Real Estate [Line Items] | ||
Real estate assets, estimated useful lives | 15 years | |
Land improvements | ||
Real Estate [Line Items] | ||
Real estate assets, estimated useful lives | 15 years |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Oil and natural gas properties: | ||
Not subject to depletion | $ 8,430 | $ 7,493 |
Gross oil and natural gas properties | 31,765 | 27,377 |
Accumulated depletion and depreciation | (12,583) | (12,314) |
Midstream assets | 1,018 | 1,013 |
Other property, equipment and land | 152 | 138 |
Property and equipment, net | 20,352 | 16,214 |
Oil and Natural Gas | ||
Oil and natural gas properties: | ||
Subject to depletion | 23,335 | 19,884 |
Not subject to depletion | 8,430 | 7,493 |
Gross oil and natural gas properties | 31,765 | 27,377 |
Accumulated depletion and depreciation | (4,493) | (4,237) |
Accumulated impairment | (7,954) | (7,954) |
Oil and natural gas properties, net | 19,318 | 15,186 |
Other Property and Equipment, Net | ||
Oil and natural gas properties: | ||
Accumulated depletion and depreciation | (136) | (123) |
Other property, equipment and land | $ 152 | $ 138 |
PROPERTY AND EQUIPMENT - Narrat
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Impairment of oil and natural gas properties | $ 0 | $ 1,009 |
Guidon Operating LLC And QEP Resources | ||
Business Acquisition [Line Items] | ||
Impairment of oil and natural gas properties | 0 | |
Impairment without SEC waiver | 1,100 | |
QEP Resources Inc | ||
Business Acquisition [Line Items] | ||
Unamortized costs | 3,000 | |
Guidon Operating LLC | ||
Business Acquisition [Line Items] | ||
Unamortized costs | $ 1,100 |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligations, beginning of period | $ 109 | $ 94 | |
Additional liabilities incurred | 2 | 4 | |
Liabilities acquired | 63 | 0 | |
Liabilities settled and divested | (1) | 0 | |
Accretion expense | 2 | 2 | |
Revisions in estimated liabilities | 20 | 0 | |
Asset retirement obligations, end of period | 195 | 100 | |
Less current portion | 5 | 1 | |
Asset retirement obligations - long-term | $ 190 | $ 99 | $ 108 |
EQUITY METHOD INVESTMENTS - Car
EQUITY METHOD INVESTMENTS - Carrying Values of Rattler’s Equity Method Investments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 20, 2019 | Oct. 01, 2019 | Jul. 30, 2019 | Feb. 15, 2019 | Feb. 01, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 525 | $ 533 | |||||
Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 525 | 533 | |||||
EPIC Crude Holdings, LP | Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method interest investment ownership percentage | 10.00% | ||||||
Equity method investments | 116 | 121 | |||||
Gray Oak Pipeline, LLC | Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method interest investment ownership percentage | 10.00% | ||||||
Equity method investments | 127 | 130 | |||||
Wink to Webster Pipeline LLC(1) | Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method interest investment ownership percentage | 4.00% | ||||||
Equity method investments | 86 | 83 | |||||
OMOG JV LLC | Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method interest investment ownership percentage | 60.00% | ||||||
Equity method investments | 191 | 194 | |||||
Amarillo Rattler, LLC(2) | Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method interest investment ownership percentage | 50.00% | ||||||
Equity method investments | $ 5 | $ 5 |
EQUITY METHOD INVESTMENTS - Nar
EQUITY METHOD INVESTMENTS - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Rattler LLC | ||
Schedule of Equity Method Investments [Line Items] | ||
Impairments in equity method investments | $ 0 | $ 0 |
DEBT - Long-term Debt (Details)
DEBT - Long-term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 24, 2021 | Mar. 17, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 7,656 | $ 5,815 | ||
Unamortized debt issuance costs | (42) | (29) | ||
Unamortized discount costs | (31) | (27) | ||
Unamortized premium costs | 15 | 15 | ||
Current maturities of long-term debt | (191) | (191) | ||
Total debt, net | 7,465 | 5,624 | ||
4.625% Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 191 | 191 | ||
Debt instrument stated interest rate | 4.625% | |||
5.375% Senior Notes due 2022(1) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 25 | 0 | ||
Debt instrument stated interest rate | 5.375% | 5.375% | ||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 20 | 20 | ||
Debt instrument stated interest rate | 7.32% | |||
0.900% Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 650 | 0 | ||
Debt instrument stated interest rate | 0.90% | 0.90% | ||
5.250% Senior Notes due 2023(1) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 10 | 0 | ||
Debt instrument stated interest rate | 5.25% | 5.25% | ||
2.875% Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Debt instrument stated interest rate | 2.875% | |||
4.750% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | 500 | ||
Debt instrument stated interest rate | 4.75% | |||
5.375% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 432 | 800 | ||
Debt instrument stated interest rate | 5.375% | |||
3.250% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 800 | 800 | ||
Debt instrument stated interest rate | 3.25% | |||
5.625% Senior Notes due 2026(1) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 18 | 0 | ||
Debt instrument stated interest rate | 5.625% | 5.625% | ||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100 | 100 | ||
Debt instrument stated interest rate | 7.125% | |||
3.500% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,200 | 1,200 | ||
Debt instrument stated interest rate | 3.50% | |||
3.125% Senior Notes due 2031 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 900 | 0 | ||
Debt instrument stated interest rate | 3.125% | 3.125% | ||
4.400% Senior Notes due 2051 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 650 | 0 | ||
Debt instrument stated interest rate | 4.40% | 4.40% | ||
DrillCo Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 75 | 79 | ||
Company revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 52 | 23 | ||
Viper revolving credit facility | Viper Energy Partners LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 57 | 84 | ||
Viper 5.375% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.375% | |||
Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 480 | 480 | ||
Rattler revolving credit facility | Rattler LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 54 | 79 | ||
Rattler 5.625% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Debt instrument stated interest rate | 5.625% | |||
Rattler 5.625% Senior Notes due 2025 | Rattler LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | $ 500 |
DEBT - Second Amended and Resta
DEBT - Second Amended and Restated Credit Facility (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)letter | Mar. 31, 2020 | Dec. 31, 2020USD ($) | |
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 7,656,000,000 | $ 5,815,000,000 | |
Revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000 | ||
Outstanding borrowings | 52,000,000 | $ 23,000,000 | |
Remaining borrowing capacity | $ 1,900,000,000 | ||
Number of letters of credit outstanding | letter | 3,000,000 | ||
Weighted average rate | 1.65% | 3.02% |
DEBT - March 2021 Notes Offerin
DEBT - March 2021 Notes Offering (Details) - USD ($) | Mar. 24, 2021 | Mar. 31, 2021 | Mar. 17, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Issuance costs and discount | $ 31,000,000 | $ 27,000,000 | ||
March 2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Issuance costs and discount | $ 24,000,000 | |||
Proceeds from debt, net | $ 2,180,000,000 | |||
Debt, redemption price, percentage | 100.00% | |||
Debt, redemption price, percentage upon change of control triggering event | 101.00% | |||
0.900% Senior Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 650,000,000 | |||
Debt instrument stated interest rate | 0.90% | 0.90% | ||
3.125% Senior Notes due 2031 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 900,000,000 | |||
Debt instrument stated interest rate | 3.125% | 3.125% | ||
4.400% Senior Notes due 2051 | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 650,000,000 | |||
Debt instrument stated interest rate | 4.40% | 4.40% |
DEBT - QEP Notes and Repurchase
DEBT - QEP Notes and Repurchases of Notes (Details) - USD ($) | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 17, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 7,656,000,000 | $ 7,656,000,000 | $ 7,656,000,000 | $ 5,815,000,000 | ||
Repurchase of debt | 1,916,000,000 | $ 0 | ||||
Loss on extinguishment of debt | 61,000,000 | $ 0 | ||||
QEP Notes | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | 1,650,000,000 | $ 1,650,000,000 | 1,650,000,000 | |||
Repurchase of debt | $ 1,700,000,000 | |||||
Loss on extinguishment of debt | $ 47,000,000 | |||||
5.375% Senior Notes due 2022(1) | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 478,000,000 | |||||
Debt instrument stated interest rate | 5.375% | 5.375% | 5.375% | 5.375% | ||
Outstanding borrowings | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | 0 | ||
Debt, fair value | $ 453,000,000 | $ 453,000,000 | $ 453,000,000 | |||
Effective percentage | 94.65% | 94.65% | 94.65% | |||
5.250% Senior Notes due 2023(1) | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 673,000,000 | |||||
Debt instrument stated interest rate | 5.25% | 5.25% | 5.25% | 5.25% | ||
Outstanding borrowings | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | 0 | ||
Debt, fair value | $ 663,000,000 | $ 663,000,000 | $ 663,000,000 | |||
Effective percentage | 98.43% | 98.43% | 98.43% | |||
5.625% Senior Notes due 2026(1) | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 558,000,000 | |||||
Debt instrument stated interest rate | 5.625% | 5.625% | 5.625% | 5.625% | ||
Outstanding borrowings | $ 18,000,000 | $ 18,000,000 | $ 18,000,000 | 0 | ||
Debt, fair value | $ 538,000,000 | $ 538,000,000 | $ 538,000,000 | |||
Effective percentage | 96.35% | 96.35% | 96.35% | |||
5.375% Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument stated interest rate | 5.375% | 5.375% | 5.375% | |||
Outstanding borrowings | $ 432,000,000 | $ 432,000,000 | $ 432,000,000 | $ 800,000,000 | ||
Repurchase of debt | 381,000,000 | |||||
Loss on extinguishment of debt | 14,000,000 | |||||
Repurchased principal amount | $ 368,000,000 | $ 368,000,000 | $ 368,000,000 | |||
Percentage of outstanding debt | 45.97% | 45.97% | 45.97% |
DEBT - Viper_s Credit Agreement
DEBT - Viper’s Credit Agreement (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 7,656,000,000 | $ 5,815,000,000 | |
Viper revolving credit facility | Viper Energy Partners LP | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000 | ||
Current borrowing capacity | 580,000,000 | ||
Outstanding borrowings | 57,000,000 | $ 84,000,000 | |
Remaining borrowing capacity | $ 523,000,000 | ||
Weighted average rate | 1.88% | 3.32% |
DEBT - Rattler's Credit Agreeme
DEBT - Rattler's Credit Agreement (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 7,656,000,000 | $ 5,815,000,000 | |
Rattler revolving credit facility | Rattler LLC | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 600,000,000 | ||
Expandable amount | 1,000,000,000 | ||
Outstanding borrowings | 54,000,000 | $ 79,000,000 | |
Remaining borrowing capacity | $ 546,000,000 | ||
Weighted average rate | 1.40% | 2.79% |
CAPITAL STOCK AND EARNINGS PE_3
CAPITAL STOCK AND EARNINGS PER SHARE - Narrative (Details) - shares | Mar. 17, 2021 | Dec. 21, 2020 |
Business Acquisition [Line Items] | ||
Number of shares to be issued in acquisition (in shares) | 242,374,000 | |
Guidon Operating LLC | ||
Business Acquisition [Line Items] | ||
Number of shares issued (in shares) | 10,676,000 | |
QEP Resources Inc | ||
Business Acquisition [Line Items] | ||
Number of shares issued (in shares) | 12,120,000 |
CAPITAL STOCK AND EARNINGS PE_4
CAPITAL STOCK AND EARNINGS PER SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic: | ||
Net income (loss) attributable to common stock | $ 220 | $ (272) |
Basic weighted average common units outstanding (in shares) | 164,169 | 158,291 |
Effect of dilutive securities: | ||
Potential common shares issuable (in shares) | 757 | 203 |
Diluted: | ||
Diluted weighted average common shares outstanding (in shares) | 164,926 | 158,494 |
Basic net income attributable to common stock (in USD per share) | $ 1.34 | $ (1.72) |
Diluted net income attributable to common stock (in USD per share) | $ 1.33 | $ (1.72) |
CAPITAL STOCK AND EARNINGS PE_5
CAPITAL STOCK AND EARNINGS PER SHARE - Change in Ownership of Consolidated Subsidiaries (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income (loss) attributable to the Company | $ 220 | $ (272) |
Change in ownership of consolidated subsidiaries, net | 0 | |
Limited Partner | ||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | ||
Net income (loss) attributable to the Company | 220 | (272) |
Change in ownership of consolidated subsidiaries, net | (4) | 0 |
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest | $ 216 | $ (272) |
EQUITY-BASED COMPENSATION - Sch
EQUITY-BASED COMPENSATION - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | $ 4 | $ 6 |
General and administrative expenses | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
General and administrative expenses | $ 10 | $ 9 |
EQUITY-BASED COMPENSATION - Res
EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Restricted Stock Awards & Units (in Shares) | |
Unvested, beginning balance (in shares) | 1,113,480 |
Granted (in shares) | 638,589 |
Vested (in shares) | (293,422) |
Forfeited (in shares) | (19,061) |
Unvested, ending balance (in shares) | 1,439,586 |
Weighted Average Grant-Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 48.58 |
Granted (in USD per share) | $ / shares | 79.89 |
Vested (in USD per share) | $ / shares | 79.76 |
Forfeited (in USD per share) | $ / shares | 45.33 |
Unvested, ending balance (in USD per share) | $ / shares | $ 55.42 |
QEP Resources Inc | |
Restricted Stock Awards & Units (in Shares) | |
Granted (in shares) | 164,088 |
EQUITY-BASED COMPENSATION - R_2
EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregated fair value of restricted stock | $ 23 | $ 8 |
Share based award not recognized | $ 71 | |
Share based payment not recognized | 2 years 6 months |
EQUITY-BASED COMPENSATION - Per
EQUITY-BASED COMPENSATION - Performance Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020shares | Mar. 31, 2019installmentshares | Mar. 31, 2021USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 198,454 | 225,047 | 198,454 | |
Number of shares authorized percent of shares granted | 250.00% | 250.00% | ||
Performance shares, performance period | 3 years | 3 years | ||
Share based award not recognized | $ | $ 43 | $ 43 | ||
Share based payment not recognized | 2 years 2 months 12 days | |||
Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 199,723 | |||
Five-Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 32,958 | |||
Performance shares, performance period | 5 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 0.00% | 0.00% | ||
Minimum | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 0.00% | |||
Minimum | Five-Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 200.00% | 200.00% | ||
Maximum | Tranche One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 200.00% | |||
Maximum | Five-Year | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized percent of shares granted | 200.00% | |||
Number of installments | installment | 5 |
EQUITY-BASED COMPENSATION - Val
EQUITY-BASED COMPENSATION - Valuation Assumptions (Details) - Equity Plan - Performance Shares - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | |
Restricted Stock Awards & Units | ||||
Granted (in USD per share) | $ 131.06 | $ 70.17 | $ 137.22 | $ 131.06 |
Performance shares, performance period | 3 years | 3 years | ||
Risk-free rate | 0.15% | 0.86% | 2.55% | |
Company volatility | 69.60% | 36.70% | 35.00% | |
Five-Year | ||||
Restricted Stock Awards & Units | ||||
Granted (in USD per share) | $ 132.48 | |||
Performance shares, performance period | 5 years |
EQUITY-BASED COMPENSATION - P_2
EQUITY-BASED COMPENSATION - Performance Restricted Stock Activity (Details) - Equity Plan - Performance Shares - $ / shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | |
Awards & Units (in shares) | ||||
Unvested, beginning balance (in shares) | 411,587 | |||
Granted (in shares) | 198,454 | 225,047 | 198,454 | |
Unvested, ending balance (in shares) | 610,041 | 610,041 | ||
Weighted Average Exercise Price (in USD per share) | ||||
Unvested, beginning balance (in USD per share) | $ 99.10 | |||
Granted (in USD per share) | $ 131.06 | $ 70.17 | $ 137.22 | 131.06 |
Unvested, ending balance (in USD per share) | $ 109.49 | $ 109.49 | ||
Share based compensation arrangement by share based payment maximum award potential (in shares) | 1,431,833 | 1,431,833 |
EQUITY-BASED COMPENSATION - Rat
EQUITY-BASED COMPENSATION - Rattler Phantom Units (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Phantom Units | |
Unvested, beginning balance (in shares) | shares | 2,089,668 |
Granted (in shares) | shares | 210,631 |
Vested (in shares) | shares | (4,755) |
Forfeited (in shares) | shares | (13,385) |
Unvested, ending balance (in shares) | shares | 2,282,159 |
Weighted Average Grant-Date Fair Value | |
Unvested, beginning balance (in USD per share) | $ / shares | $ 17.07 |
Granted (in USD per share) | $ / shares | 11.01 |
Vested (in USD per share) | $ / shares | 12.59 |
Forfeited (in USD per share) | $ / shares | 5.79 |
Unvested, ending balance (in USD per share) | $ / shares | $ 16.59 |
EQUITY-BASED COMPENSATION - R_3
EQUITY-BASED COMPENSATION - Rattler Phantom Units (Narratives) (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share based award not recognized | $ 30 |
Share based payment not recognized | 3 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 17, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||||
Effective income tax rate | 22.60% | (26.10%) | ||
Discrete income tax expense (benefit) related to deferred taxes recorded during the period | $ 143 | $ 25 | ||
Federal net losses | $ 179 | |||
Current federal taxes receivable | 100 | |||
Income tax receivable | 33 | $ 100 | ||
Noncurrent federal taxes receivable | $ 32 | |||
QEP Resources Inc | ||||
Business Acquisition [Line Items] | ||||
Deferred income taxes | $ 15 |
DERIVATIVES - Open Derivative P
DERIVATIVES - Open Derivative Positions (Details) MMBTU in Thousands | 3 Months Ended |
Mar. 31, 2021MMBTU$ / bbl$ / MMBTUbbl | |
OIL | 2021 | Rolling Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 4,000 |
Weighted average differential (per Bbl) | 0 |
OIL | 2021 | Apr. - June | Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 43,341 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 44.60 |
OIL | 2021 | Apr. - June | Basis Swap | Argus WTI Midland | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 39,000 |
Weighted average differential (per Bbl) | 0.83 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | 2021 | Apr. - June | Rolling Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 46,000 |
Weighted average differential (per Bbl) | 0.16 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | 2021 | Apr. - June | Costless Collar | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 20,670 |
Weighted Average Floor Price (USD per Bbl) | 35.78 |
Weighted Average Ceiling Price (USD per Bbl) | 47.08 |
OIL | 2021 | Apr. - June | Costless Collar | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 82,000 |
Weighted Average Floor Price (USD per Bbl) | 39.40 |
Weighted Average Ceiling Price (USD per Bbl) | 48.84 |
OIL | 2021 | July - Sep. | Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 38,348 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 42.82 |
OIL | 2021 | July - Sep. | Costless Collar | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 17,685 |
Weighted Average Floor Price (USD per Bbl) | 35.27 |
Weighted Average Ceiling Price (USD per Bbl) | 46.50 |
OIL | 2021 | July - Sep. | Costless Collar | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 62,000 |
Weighted Average Floor Price (USD per Bbl) | 39.61 |
Weighted Average Ceiling Price (USD per Bbl) | 48.42 |
OIL | 2021 | Oct. - Dec. | Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 30,674 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 42.36 |
OIL | 2021 | Oct. - Dec. | Costless Collar | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 26,663 |
Weighted Average Floor Price (USD per Bbl) | 38.69 |
Weighted Average Ceiling Price (USD per Bbl) | 53.80 |
OIL | 2021 | Oct. - Dec. | Costless Collar | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 64,000 |
Weighted Average Floor Price (USD per Bbl) | 39.78 |
Weighted Average Ceiling Price (USD per Bbl) | 48.90 |
OIL | 2021 | Apr. - Dec. | Swap | Argus WTI Houston | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 37.78 |
OIL | 2021 | Apr. - Dec. | Swap | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 41.62 |
OIL | 2021 | July - Dec. | Basis Swap | Argus WTI Midland | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 34,000 |
Weighted average differential (per Bbl) | 0.91 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | 2021 | July - Dec. | Swaption | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 51 |
OIL | 2021 | July - Dec. | Rolling Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 34,000 |
Weighted average differential (per Bbl) | 0.24 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | 2021 | July - Dec. | Costless Collar | Argus WTI Houston | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 68.33 |
OIL | 2022 | Apr. - June | Costless Collar | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 6,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 68.75 |
OIL | 2022 | Apr. - June | Costless Collar | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 9,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 75.07 |
OIL | 2022 | Jan. - Dec. | Brent | Short | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Put Price (USD per Bbl) | 35 |
OIL | 2022 | Jan. - Dec. | Basis Swap | Argus WTI Midland | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 10,000 |
Weighted average differential (per Bbl) | 0.84 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | 2022 | Jan. - June | Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,000 |
Weighted average differential (per Bbl) | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 45 |
OIL | 2022 | Jan. - Mar. | Costless Collar | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 12,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 68 |
OIL | 2022 | Jan. - Mar. | Costless Collar | Argus WTI Houston | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 67.50 |
OIL | 2022 | Jan. - Mar. | Costless Collar | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 34,000 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 67.54 |
NATURAL GAS | 2021 | Apr. - Dec. | Swap | Henry Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 245 |
Weighted average differential (per Bbl) | $ / MMBTU | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 2.65 |
NATURAL GAS | 2021 | Apr. - Dec. | Swap | Waha Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 50 |
Weighted average differential (per Bbl) | $ / MMBTU | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 1.92 |
NATURAL GAS | 2021 | Apr. - Dec. | Basis Swap | Waha Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 250 |
Weighted average differential (per Bbl) | $ / MMBTU | (0.66) |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 0 |
NATURAL GAS | 2022 | Jan. - Dec. | Basis Swap | Waha Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 190 |
Weighted average differential (per Bbl) | $ / MMBTU | (0.36) |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 0 |
NATURAL GAS LIQUIDS | 2021 | Apr. - Dec. | Swap | Mont Belvieu Propane | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,000 |
Weighted average differential (per Bbl) | $ / MMBTU | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 29.40 |
DERIVATIVES - Gains and Losses
DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net | $ (164) | $ 542 |
Net cash received (paid) on settlements | (102) | 87 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net | (294) | 604 |
Net cash received (paid) on settlements | (182) | 87 |
Cash received on contract | 80 | |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, net | 130 | (62) |
Net cash received (paid) on settlements | $ 80 | $ 0 |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current: | ||
Derivative instruments | $ 0 | $ 1 |
Non-current: | ||
Derivative instruments | 4 | 0 |
Current: | ||
Derivative instruments | 604 | 249 |
Non-current: | ||
Derivative instruments | 8 | 57 |
Viper Energy Partners LP | Recurring | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 33 | 43 |
Gross Amounts Offset in Balance Sheet | (33) | (42) |
Derivative instruments | 0 | 1 |
Non-current: | ||
Total Gross Fair Value | 8 | 187 |
Gross Amounts Offset in Balance Sheet | (4) | (187) |
Derivative instruments | 4 | 0 |
Current: | ||
Total Gross Fair Value | 637 | 291 |
Gross Amounts Offset in Balance Sheet | (33) | (42) |
Derivative instruments | 604 | 249 |
Non-current: | ||
Total Gross Fair Value | 12 | 244 |
Gross Amounts Offset in Balance Sheet | (4) | (187) |
Derivative instruments | 8 | 57 |
Viper Energy Partners LP | Recurring | Level 1 | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 0 | 0 |
Non-current: | ||
Total Gross Fair Value | 0 | 0 |
Current: | ||
Total Gross Fair Value | 0 | 0 |
Non-current: | ||
Total Gross Fair Value | 0 | 0 |
Viper Energy Partners LP | Recurring | Level 2 | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 33 | 43 |
Non-current: | ||
Total Gross Fair Value | 8 | 187 |
Current: | ||
Total Gross Fair Value | 637 | 291 |
Non-current: | ||
Total Gross Fair Value | 12 | 244 |
Viper Energy Partners LP | Recurring | Level 3 | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 0 | 0 |
Non-current: | ||
Total Gross Fair Value | 0 | 0 |
Current: | ||
Total Gross Fair Value | 0 | 0 |
Non-current: | ||
Total Gross Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Nonre
FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Mar. 24, 2021 | Mar. 17, 2021 | Dec. 31, 2020 |
4.625% Notes due 2021 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 4.625% | |||
5.375% Senior Notes due 2022(1) | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | $ 453 | |||
Debt instrument stated interest rate | 5.375% | 5.375% | ||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 7.32% | |||
0.900% Senior Notes due 2023 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 0.90% | 0.90% | ||
5.250% Senior Notes due 2023(1) | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | $ 663 | |||
Debt instrument stated interest rate | 5.25% | 5.25% | ||
2.875% Senior Notes due 2024 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 2.875% | |||
4.750% Senior Notes due 2025 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 4.75% | |||
5.375% Senior Notes due 2025 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 5.375% | |||
3.250% Senior Notes due 2026 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 3.25% | |||
5.625% Senior Notes due 2026(1) | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | $ 538 | |||
Debt instrument stated interest rate | 5.625% | 5.625% | ||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 7.125% | |||
3.500% Senior Notes due 2029 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 3.50% | |||
3.125% Senior Notes due 2031 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 3.125% | 3.125% | ||
4.400% Senior Notes due 2051 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 4.40% | 4.40% | ||
Viper 5.375% Senior Notes due 2027 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 5.375% | |||
Rattler 5.625% Senior Notes due 2025 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt instrument stated interest rate | 5.625% | |||
Reported Value Measurement | Company revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 52 | $ 23 | ||
Reported Value Measurement | 4.625% Notes due 2021 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 191 | 191 | ||
Reported Value Measurement | 5.375% Senior Notes due 2022(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 26 | 0 | ||
Reported Value Measurement | 7.320% Medium-term Notes, Series A, due 2022 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 21 | 21 | ||
Reported Value Measurement | 0.900% Senior Notes due 2023 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 647 | 0 | ||
Reported Value Measurement | 5.250% Senior Notes due 2023(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 11 | 0 | ||
Reported Value Measurement | 2.875% Senior Notes due 2024 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 993 | 993 | ||
Reported Value Measurement | 4.750% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 497 | 496 | ||
Reported Value Measurement | 5.375% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 432 | 799 | ||
Reported Value Measurement | 3.250% Senior Notes due 2026 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 793 | 793 | ||
Reported Value Measurement | 5.625% Senior Notes due 2026(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 20 | 0 | ||
Reported Value Measurement | 7.125% Medium-term Notes, Series B, due 2028 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 107 | 107 | ||
Reported Value Measurement | 3.500% Senior Notes due 2029 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 1,188 | 1,187 | ||
Reported Value Measurement | 3.125% Senior Notes due 2031 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 889 | 0 | ||
Reported Value Measurement | 4.400% Senior Notes due 2051 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 640 | 0 | ||
Reported Value Measurement | Viper revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 57 | 84 | ||
Reported Value Measurement | Viper 5.375% Senior Notes due 2027 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 472 | 472 | ||
Reported Value Measurement | Rattler revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 54 | 79 | ||
Reported Value Measurement | Rattler 5.625% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 491 | 491 | ||
Reported Value Measurement | DrillCo Agreement | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | 75 | 79 | ||
Estimate of Fair Value Measurement | 4.625% Notes due 2021 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 192 | 193 | ||
Estimate of Fair Value Measurement | 5.375% Senior Notes due 2022(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 26 | 0 | ||
Estimate of Fair Value Measurement | 7.320% Medium-term Notes, Series A, due 2022 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 21 | 22 | ||
Estimate of Fair Value Measurement | 0.900% Senior Notes due 2023 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 651 | 0 | ||
Estimate of Fair Value Measurement | 5.250% Senior Notes due 2023(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 11 | 0 | ||
Estimate of Fair Value Measurement | 7.125% Medium-term Notes, Series B, due 2028 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 120 | 119 | ||
Estimate of Fair Value Measurement | 3.125% Senior Notes due 2031 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 901 | 0 | ||
Estimate of Fair Value Measurement | Rattler 5.625% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 522 | 528 | ||
Estimate of Fair Value Measurement | DrillCo Agreement | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | 75 | 79 | ||
Level 1 | Estimate of Fair Value Measurement | 2.875% Senior Notes due 2024 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 1,058 | 1,053 | ||
Level 1 | Estimate of Fair Value Measurement | 4.750% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 558 | 565 | ||
Level 1 | Estimate of Fair Value Measurement | 5.375% Senior Notes due 2025 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 447 | 824 | ||
Level 1 | Estimate of Fair Value Measurement | 3.250% Senior Notes due 2026 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 841 | 857 | ||
Level 1 | Estimate of Fair Value Measurement | 5.625% Senior Notes due 2026(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 21 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | 3.500% Senior Notes due 2029 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 1,249 | 1,286 | ||
Level 1 | Estimate of Fair Value Measurement | 4.400% Senior Notes due 2051 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 666 | 0 | ||
Level 1 | Estimate of Fair Value Measurement | Viper 5.375% Senior Notes due 2027 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 501 | 501 | ||
Level 2 | Estimate of Fair Value Measurement | Company revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 52 | 23 | ||
Level 2 | Estimate of Fair Value Measurement | Viper revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 57 | 84 | ||
Level 2 | Estimate of Fair Value Measurement | Rattler revolving credit facility | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 54 | $ 79 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligations | $ 68 |
SUBSEQUENT EVENTS - Narratives
SUBSEQUENT EVENTS - Narratives (Details) $ / shares in Units, $ in Millions | May 03, 2021USD ($)aMMBbls / dMMBoe / d | Apr. 30, 2021USD ($) | Apr. 29, 2021$ / shares | Apr. 28, 2021USD ($)aBoe / dbbl / dwell | Mar. 31, 2021$ / shares | Mar. 31, 2020$ / shares | Apr. 30, 2023USD ($) | Apr. 30, 2022USD ($) |
Subsequent Event [Line Items] | ||||||||
Dividends declared per share (in USD per share) | $ / shares | $ 0.40 | $ 0.375 | ||||||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends declared per share (in USD per share) | $ / shares | $ 0.40 | |||||||
Subsequent Event | Williston Basin | ||||||||
Subsequent Event [Line Items] | ||||||||
Net royalty area (in acre) | a | 95,000 | |||||||
Proceeds from divestiture | $ 745 | |||||||
Production capacity (BO/d) | MMBbls / d | 15,000 | |||||||
Production Capacity (BOE/d) | MMBoe / d | 25,000 | |||||||
Subsequent Event | Southern Midland Basin And Delaware Basin | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from divestiture | $ 87 | |||||||
Production capacity (BO/d) | bbl / d | 900 | |||||||
Production Capacity (BOE/d) | Boe / d | 2,650 | |||||||
Number of wells | well | 140 | |||||||
Subsequent Event | Southern Midland Basin | ||||||||
Subsequent Event [Line Items] | ||||||||
Net royalty area (in acre) | a | 7,000 | |||||||
Subsequent Event | Delaware Basin | ||||||||
Subsequent Event [Line Items] | ||||||||
Net royalty area (in acre) | a | 1,300 | |||||||
Subsequent Event | Rattler LLC and Amarillo Midstream | Disposed of by Sale | Amarillo Rattler, LLC(2) | ||||||||
Subsequent Event [Line Items] | ||||||||
Potential consideration | $ 75 | |||||||
Consideration at closing | 50 | |||||||
Consideration upon first anniversary of closing | 10 | |||||||
Consideration over three years | $ 15 | |||||||
Consideration period | 3 years | |||||||
Subsequent Event | Rattler LLC | Disposed of by Sale | Amarillo Rattler, LLC(2) | ||||||||
Subsequent Event [Line Items] | ||||||||
Consideration at closing | $ 24 | |||||||
Subsequent Event | Rattler LLC | Disposed of by Sale | Amarillo Rattler, LLC(2) | Forecast | ||||||||
Subsequent Event [Line Items] | ||||||||
Potential consideration | $ 7.5 | $ 5 |
SUBSEQUENT EVENTS - Schedule of
SUBSEQUENT EVENTS - Schedule of Derivative Contracts (Details) MMBTU in Thousands | 1 Months Ended | 3 Months Ended |
May 07, 2021MMBTU$ / MMBTU$ / bblbbl | Mar. 31, 2021MMBTU$ / MMBTU | |
Argus WTI Houston | OIL | Costless Collar | Subsequent Event | 2022 | Jan. - June | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 14,000 | |
Weighted Average Floor Price (USD per Bbl) | 45 | |
Weighted Average Ceiling Price (USD per Bbl) | 69.98 | |
Brent | OIL | Costless Collar | Subsequent Event | 2022 | Jan. - June | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 10,000 | |
Weighted Average Floor Price (USD per Bbl) | 45 | |
Weighted Average Ceiling Price (USD per Bbl) | 74.82 | |
Waha Hub | NATURAL GAS | Basis Swap | 2022 | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 190 | |
Weighted average differential (per Bbl) | $ / MMBTU | (0.36) | |
Waha Hub | NATURAL GAS | Basis Swap | Subsequent Event | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 20 | |
Weighted average differential (per Bbl) | $ / MMBTU | (0.23) |
SEGMENT INFORMATION- Additional
SEGMENT INFORMATION- Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
SEGMENT INFORMATION - Summary o
SEGMENT INFORMATION - Summary of Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 1,184 | $ 899 | |
Depreciation, depletion, amortization and accretion | 273 | 409 | |
Impairment of midstream assets | 3 | 0 | |
Impairment of oil and natural gas properties | 0 | 1,009 | |
Income (loss) from operations | 571 | (802) | |
Interest expense, net | (56) | (48) | |
Other income (expense) | (227) | 533 | |
Provision for (benefit from) income taxes | 65 | 83 | |
Net income (loss) attributable to non-controlling interest | 3 | (128) | |
Net income (loss) attributable to Diamondback Energy, Inc. | 220 | (272) | |
Assets | 21,996 | $ 17,619 | |
Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,172 | 883 | |
Midstream Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 99 | 129 | |
Operating Segments | Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,172 | 883 | |
Depreciation, depletion, amortization and accretion | 262 | 396 | |
Impairment of midstream assets | 0 | ||
Impairment of oil and natural gas properties | 1,009 | ||
Income (loss) from operations | 552 | (782) | |
Interest expense, net | (49) | (45) | |
Other income (expense) | (222) | 534 | |
Provision for (benefit from) income taxes | 63 | 79 | |
Net income (loss) attributable to non-controlling interest | (3) | (128) | |
Net income (loss) attributable to Diamondback Energy, Inc. | 221 | (244) | |
Assets | 20,566 | 16,128 | |
Operating Segments | Midstream Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 12 | 16 | |
Depreciation, depletion, amortization and accretion | 11 | 13 | |
Impairment of midstream assets | 3 | ||
Impairment of oil and natural gas properties | 0 | ||
Income (loss) from operations | 38 | 61 | |
Interest expense, net | (7) | (3) | |
Other income (expense) | (3) | 0 | |
Provision for (benefit from) income taxes | 2 | 4 | |
Net income (loss) attributable to non-controlling interest | 6 | 41 | |
Net income (loss) attributable to Diamondback Energy, Inc. | 20 | 13 | |
Assets | 1,769 | 1,809 | |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (87) | (113) | |
Depreciation, depletion, amortization and accretion | 0 | 0 | |
Impairment of midstream assets | 0 | ||
Impairment of oil and natural gas properties | 0 | ||
Income (loss) from operations | (19) | (81) | |
Interest expense, net | 0 | 0 | |
Other income (expense) | (2) | (1) | |
Provision for (benefit from) income taxes | 0 | 0 | |
Net income (loss) attributable to non-controlling interest | 0 | (41) | |
Net income (loss) attributable to Diamondback Energy, Inc. | (21) | $ (41) | |
Assets | $ (339) | $ (318) |