Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidated Balance Sheet

Condensed Consolidated Balance Sheet
September 30, 2016
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	133,279		$	26,232		$	7,758		$	—		$	167,269
Restricted cash	—			—			500			—			500
Accounts receivable	—			75,583			9,918			—			85,501
Accounts receivable - related party	—			13			—			—			13
Intercompany receivable	2,915,582			317,103			—			(3,232,685		)	—
Inventories	—			1,969			—			—			1,969
Other current assets	213			2,712			93			—			3,018
Total current assets	3,049,074			423,612			18,269			(3,232,685		)	258,270
Property and equipment:
Oil and natural gas properties, at cost, based on the full cost method of accounting	—			4,249,936			692,816			(559		)	4,942,193
Pipeline and gas gathering assets	—			8,362			—			—			8,362
Other property and equipment	—			58,205			—			—			58,205
Accumulated depletion, depreciation, amortization and impairment	—			(1,652,185		)	(140,613		)	8,018			(1,784,780		)
Net property and equipment	—			2,664,318			552,203			7,459			3,223,980
Investment in subsidiaries	(73,559		)	—			—			73,559			—
Other assets	—			8,533			34,897			—			43,430
Total assets	$	2,975,515		$	3,096,463		$	605,369		$	(3,151,667	)	$	3,525,680
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—		$	38,797		$	37		$	—		$	38,834
Accounts payable-related party	2			—			—			—			2
Intercompany payable	—			3,232,685			—			(3,232,685		)	—
Other current liabilities	17,331			117,105			1,753			—			136,189
Total current liabilities	17,333			3,388,587			1,790			(3,232,685		)	175,025
Long-term debt	443,313			—			54,500			—			497,813
Derivative instruments	—			1,807			—			—			1,807
Asset retirement obligations	—			15,740			—			—			15,740
Total liabilities	460,646			3,406,134			56,290			(3,232,685		)	690,385
Commitments and contingencies
Stockholders’ equity	2,514,869			(309,671		)	549,079			(239,408		)	2,514,869
Non-controlling interest	—			—			—			320,426			320,426
Total equity	2,514,869			(309,671		)	549,079			81,018			2,835,295
Total liabilities and equity	$	2,975,515		$	3,096,463		$	605,369		$	(3,151,667	)	$	3,525,680

Condensed Consolidated Balance Sheet
December 31, 2015
(In thousands)
						Non–
			Guarantor			Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	148	$	19,428		$	539		$	—		$	20,115
Restricted cash	—		—			500			—			500
Accounts receivable	—		67,942			9,369			2			77,313
Accounts receivable - related party	—		1,591			—			—			1,591
Intercompany receivable	2,246,846		205,915			—			(2,452,761		)	—
Inventories	—		1,728			—			—			1,728
Other current assets	450		6,572			476			—			7,498
Total current assets	2,247,444		303,176			10,884			(2,452,759		)	108,745
Property and equipment:
Oil and natural gas properties, at cost, based on the full cost method of accounting	—		3,400,381			554,992			—			3,955,373
Pipeline and gas gathering assets	—		7,174			—			—			7,174
Other property and equipment	—		48,621			—			—			48,621
Accumulated depletion, depreciation, amortization and impairment	—		(1,347,296		)	(71,659		)	5,412			(1,413,543		)
Net property and equipment	—		2,108,880			483,333			5,412			2,597,625
Investment in subsidiaries	79,417		—			—			(79,417		)	—
Other assets	102		8,733			35,514			—			44,349
Total assets	$	2,326,963	$	2,420,789		$	529,731		$	(2,526,764	)	$	2,750,719
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—	$	20,007		$	1		$	—		$	20,008
Accounts payable-related party	1		212			4			—			217
Intercompany payable	—		2,452,759			—			(2,452,759		)	—
Other current liabilities	8,683		112,431			82			—			121,196
Total current liabilities	8,684		2,585,409			87			(2,452,759		)	141,421
Long-term debt	442,307		11,000			34,500			—			487,807
Asset retirement obligations	—		12,518			—			—			12,518
Total liabilities	450,991		2,608,927			34,587			(2,452,759		)	641,746
Commitments and contingencies
Stockholders’ equity	1,875,972		(188,138		)	495,144			(307,006		)	1,875,972
Non-controlling interest	—		—			—			233,001			233,001
Total equity	1,875,972		(188,138		)	495,144			(74,005		)	2,108,973
Total liabilities and equity	$	2,326,963	$	2,420,789		$	529,731		$	(2,526,764	)	$	2,750,719

Condensed Consolidated Statement of Operations

Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2016
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	108,273		$	—		$	18,080		$	126,353
Natural gas sales	—			5,581			—			753			6,334
Natural gas liquid sales	—			8,285			—			1,159			9,444
Royalty income	—			—			19,992			(19,992		)	—
Lease bonus income	—			—			5			(5		)	—
Total revenues	—			122,139			19,997			(5		)	142,131
Costs and expenses:
Lease operating expenses	—			22,180			—			—			22,180
Production and ad valorem taxes	—			7,694			1,429			—			9,123
Gathering and transportation	—			2,773			70			—			2,843
Depreciation, depletion and amortization	—			38,572			6,751			(577		)	44,746
Impairment of oil and natural gas properties	—			46,368			—			—			46,368
General and administrative expenses	5,736			3,019			1,153			—			9,908
Asset retirement obligation accretion expense	—			270			—			—			270
Total costs and expenses	5,736			120,876			9,403			(577		)	135,438
Income (loss) from operations	(5,736		)	1,263			10,594			572			6,693
Other income (expense)
Interest expense	(8,847		)	(729		)	(658		)	—			(10,234		)
Other income	199			442			266			—			907
Gain on derivative instruments, net	—			2,034			—			—			2,034
Total other expense, net	(8,648		)	1,747			(392		)	—			(7,293		)
Net income (loss)	(14,384		)	3,010			10,202			572			(600		)
Net income attributable to non-controlling interest	—			—			—			1,630			1,630
Net income (loss) attributable to Diamondback Energy, Inc.	$	(14,384	)	$	3,010		$	10,202		$	(1,058	)	$	(2,230	)

Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2015
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	84,002		$	—		$	17,305		$	101,307
Natural gas sales	—			4,905			—			768			5,673
Natural gas liquid sales	—			4,262			—			704			4,966
Royalty income	—			—			18,777			(18,777		)	—
Total revenues	—			93,169			18,777			—			111,946
Costs and expenses:
Lease operating expenses	—			22,189			—			—			22,189
Production and ad valorem taxes	—			7,280			1,686			—			8,966
Gathering and transportation	—			1,521			167			—			1,688
Depreciation, depletion and amortization	—			43,655			8,737			(17		)	52,375
Impairment of oil and natural gas properties	—			273,737			—			—			273,737
General and administrative expenses	4,020			1,864			1,642			—			7,526
Asset retirement obligation accretion expense	—			238			—			—			238
Total costs and expenses	4,020			350,484			12,232			(17		)	366,719
Income (loss) from operations	(4,020		)	(257,315		)	6,545			17			(254,773		)
Other income (expense)
Interest expense	(8,914		)	(1,361		)	(358		)	—			(10,633		)
Other income	—			132			168			—			300
Gain on derivative instruments, net	—			27,603			—			—			27,603
Total other income (expense), net	(8,914		)	26,374			(190		)	—			17,270
Income (loss) before income taxes	(12,934		)	(230,941		)	6,355			17			(237,503		)
Benefit from income taxes	(81,461		)	—			—			—			(81,461		)
Net income (loss)	68,527			(230,941		)	6,355			17			(156,042		)
Net income attributable to non-controlling interest	—			—			—			739			739
Net income (loss) attributable to Diamondback Energy, Inc.	$	68,527		$	(230,941	)	$	6,355		$	(722	)	$	(156,781	)

Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2016
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	260,180		$	—		$	46,518		$	306,698
Natural gas sales	—			12,561			—			1,904			14,465
Natural gas liquid sales	—			18,440			—			2,492			20,932
Royalty income	—			—			50,914			(50,914		)	—
Lease bonus income	—			—			309			(309		)	—
Total revenues	—			291,181			51,223			(309		)	342,095
Costs and expenses:
Lease operating expenses	—			59,080			—			—			59,080
Production and ad valorem taxes	—			21,110			4,134			—			25,244
Gathering and transportation	—			7,815			247			2			8,064
Depreciation, depletion and amortization	—			107,807			21,485			(2,606		)	126,686
Impairment of oil and natural gas properties	—			198,067			47,469			—			245,536
General and administrative expenses	20,110			8,192			4,109			—			32,411
Asset retirement obligation accretion expense	—			770			—			—			770
Total costs and expenses	20,110			402,841			77,444			(2,604		)	497,791
Loss from operations	(20,110		)	(111,660		)	(26,221		)	2,295			(155,696		)
Other income (expense)
Interest expense	(26,549		)	(2,173		)	(1,544		)	—			(30,266		)
Other income	319			966			612			(250		)	1,647
Loss on derivative instruments, net	—			(8,665		)	—			—			(8,665		)
Total other expense, net	(26,230		)	(9,872		)	(932		)	(250		)	(37,284		)
Income (loss) before income taxes	(46,340		)	(121,532		)	(27,153		)	2,045			(192,980		)
Provision for income taxes	368			—			—			—			368
Net income (loss)	(46,708		)	(121,532		)	(27,153		)	2,045			(193,348		)
Net loss attributable to non-controlling interest	—			—			—			(2,716		)	(2,716		)
Net income (loss) attributable to Diamondback Energy, Inc.	$	(46,708	)	$	(121,532	)	$	(27,153	)	$	4,761		$	(190,632	)

Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2015
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	250,704		$	—		$	51,146		$	301,850
Natural gas sales	—			12,580			—			1,851			14,431
Natural gas liquid sales	—			14,185			—			1,944			16,129
Royalty income	—			—			54,941			(54,941		)	—
Total revenues	—			277,469			54,941			—			332,410
Costs and expenses:
Lease operating expenses	—			65,117			—			—			65,117
Production and ad valorem taxes	—			20,605			4,431			—			25,036
Gathering and transportation	—			4,176			167			—			4,343
Depreciation, depletion and amortization	—			141,923			26,587			638			169,148
Impairment expense	—			597,188			—			—			597,188
General and administrative expenses	12,773			6,172			4,501			—			23,446
Asset retirement obligation accretion expense	—			588			—			—			588
Total costs and expenses	12,773			835,769			35,686			638			884,866
Income (loss) from operations	(12,773		)	(558,300		)	19,255			(638		)	(552,456		)
Other income (expense)
Interest expense	(26,735		)	(3,936		)	(733		)	—			(31,404		)
Other income	1			287			960			—			1,248
Gain on derivative instruments, net	—			26,834			—			—			26,834
Total other income (expense), net	(26,734		)	23,185			227			—			(3,322		)
Income (loss) before income taxes	(39,507		)	(535,115		)	19,482			(638		)	(555,778		)
Benefit from income taxes	(194,823		)	—			—			—			(194,823		)
Net income (loss)	155,316			(535,115		)	19,482			(638		)	(360,955		)
Net income attributable to non-controlling interest	—			—			—			2,264			2,264
Net income (loss) attributable to Diamondback Energy, Inc.	$	155,316		$	(535,115	)	$	19,482		$	(2,902	)	$	(363,219	)

Condensed Consolidated Statement of Cash Flows

Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2016
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(19,148	)	$	198,944		$	46,550		$	—		$	226,346
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(242,246		)	—			—			(242,246		)
Acquisition of leasehold interests	—			(591,785		)	—			—			(591,785		)
Acquisition of royalty interests	—			—			(137,782		)	—			(137,782		)
Purchase of other property and equipment	—			(9,805		)	—			—			(9,805		)
Proceeds from sale of assets	—			1,566			—			—			1,566
Equity investments	—			(800		)	—			—			(800		)
Intercompany transfers	(652,211		)	652,211			—			—			—
Other investing activities	—			(1,188		)	—			—			(1,188		)
Net cash used in investing activities	(652,211		)	(192,047		)	(137,782		)	—			(982,040		)
Cash flows from financing activities:
Proceeds from borrowing on credit facility	—			—			98,000			—			98,000
Repayment on credit facility	—			(11,000		)	(78,000		)	—			(89,000		)
Debt issuance costs	—			(93		)	(35		)	—			(128		)
Public offering costs	(356		)	—			(444		)	—			(800		)
Proceeds from public offerings	775,095			—			125,580			—			900,675
Distribution from subsidiary	40,253			—			—			(40,253		)	—
Exercise of stock options	498			—			—			—			498
Distribution to non-controlling interest	—			—			(46,650		)	40,253			(6,397		)
Intercompany transfers	(11,000		)	11,000			—			—			—
Net cash provided by (used in) financing activities	804,490			(93		)	98,451			—			902,848
Net increase in cash and cash equivalents	133,131			6,804			7,219			—			147,154
Cash and cash equivalents at beginning of period	148			19,428			539			—			20,115
Cash and cash equivalents at end of period	$	133,279		$	26,232		$	7,758		$	—		$	167,269

Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2015
(In thousands)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(19,081	)	$	312,712		$	45,973		$	—		$	339,604
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(326,538		)	71			—			(326,467		)
Acquisition of leasehold interests	—			(425,507		)	—			—			(425,507		)
Acquisition of royalty interests	—			—			(32,291		)	—			(32,291		)
Purchase of other property and equipment	—			(992		)	—			—			(992		)
Proceeds from sale of assets	—			97			—			—			97
Equity investments	—			(2,702		)	—			—			(2,702		)
Intercompany transfers	(147,214		)	147,214			—			—			—
Other investing activities	—			(2		)	—			—			(2		)
Net cash used in investing activities	(147,214		)	(608,430		)	(32,220		)	—			(787,864		)
Cash flows from financing activities:
Proceeds from borrowing on credit facility	—			363,501			29,000			—			392,501
Repayment on credit facility	—			(577,001		)	—			—			(577,001		)
Proceeds from public offerings	650,688			—			—			—			650,688
Distribution from subsidiary	46,496			—			—			(46,496		)	—
Distribution to non-controlling interest	—			—			(52,609		)	46,496			(6,113		)
Intercompany transfers	(532,800		)	532,800			—			—			—
Other financing activities	2,132			—			(303		)	—			1,829
Net cash provided by (used in) financing activities	166,516			319,300			(23,912		)	—			461,904
Net increase (decrease) in cash and cash equivalents	221			23,582			(10,159		)	—			13,644
Cash and cash equivalents at beginning of period	6			15,067			15,110			—			30,183
Cash and cash equivalents at end of period	$	227		$	38,649		$	4,951		$	—		$	43,827