Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

QUARTERLY FINANCIAL DATA (Unaudited)

The Company’s unaudited quarterly financial data for 2012 and 2011 is summarized below.

	2012
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Revenues	$	16,351,000	$	16,030,000	$	16,814,000	$	25,767,000
Income from operations	6,737,000		4,307,000		4,086,000		2,177,000
Income tax expense	—		—		—		54,903,000
Net income (loss)	$	1,477,000	$	13,624,000	$	452,000	$	(52,074,000	)
Pro forma information
Income before income taxes	$	1,477,000	$	13,624,000	$	452,000	$	2,829,000
Pro forma provision for income taxes	526,000		4,857,000		161,000		1,009,000
Pro forma net income	$	951,000	$	8,767,000	$	291,000	$	1,820,000
Pro forma earnings per share:
Basic	$	0.06	$	0.60	$	0.02	$	0.05
Diluted	$	0.06	$	0.60	$	0.02	$	0.05
	2011
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
Revenues	$	12,087,000	$	11,572,000	$	11,216,000	$	14,491,000
Income from operations	3,328,000		4,067,000		2,928,000		4,824,000
Net income (loss)	$	2,824,000	$	3,453,000	$	2,205,000	$	(8,868,000	)

Pro Forma Income Taxes

Diamondback Energy, Inc. was formed as a holding company on December 30, 2011, and did not conduct any material business operations prior to the Merger. Diamondback Energy, Inc. is a C-Corp under the Internal Revenue Code and is subject to income taxes. The Company computed a pro forma income tax provision as if the Company and the Predecessors were subject to income taxes since December 31, 2011. The pro forma tax provision has been calculated at a rate based upon a federal corporate level tax rate and a state tax rate, net of federal benefit, incorporating permanent differences.

Pro Forma Earnings per Share

The Company’s pro forma basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period, as if the common shares issued upon the Merger were outstanding for the entire year. Diluted earnings per share reflects the potential dilution, using the treasury stock method, which assumes that options were exercised and restricted stock awards and units were fully vested. During periods in which the Company realizes a net loss, options and restricted stock awards would not be dilutive to net loss per share and conversion into common stock is assumed not to occur.