ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) | ||||||||||
(Address of principal executive offices) | (Zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||
Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered | ||||||||||||||||||
(NASDAQ Global Select Market) | ||||||||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: None |
☒ | Accelerated Filer | ☐ | ||||||||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||||||||
Emerging Growth Company |
Page | |||||
S-1 |
3-D seismic | Geophysical data that depict the subsurface strata in three dimensions. 3-D seismic typically provides a more detailed and accurate interpretation of the subsurface strata than 2-D, or two-dimensional, seismic. | ||||
Basin | A large depression on the earth’s surface in which sediments accumulate. | ||||
Bbl or barrel | One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. | ||||
BOE | One barrel of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil. | ||||
BOE/d | Barrels of oil equivalent per day. | ||||
Brent | Brent sweet light crude oil. | ||||
British Thermal Unit or BTU | The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit. | ||||
Completion | The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency. | ||||
Condensate | Liquid hydrocarbons associated with the production that is primarily natural gas. | ||||
Crude oil | Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources. | ||||
Developed acreage | Acreage assignable to productive wells. | ||||
Development costs | Capital costs incurred in the acquisition, exploitation and exploration of proved oil and natural gas reserves. | ||||
Differential | An adjustment to the price of oil or natural gas from an established spot market price to reflect differences in the quality and/or location of oil or natural gas. | ||||
Dry hole or dry well | A well found to be incapable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of such production exceed production expenses and taxes. | ||||
Estimated Ultimate Recovery or EUR | Estimated ultimate recovery is the sum of reserves remaining as of a given date and cumulative production as of that date. | ||||
Exploitation | A development or other project which may target proven or unproven reserves (such as probable or possible reserves), but which generally has a lower risk than that associated with exploration projects. | ||||
Field | An area consisting of either a single reservoir or multiple reservoirs, all grouped on or related to the same individual geological structural feature and/or stratigraphic condition. | ||||
Finding and development costs | Capital costs incurred in the acquisition, exploitation and exploration of proved oil and natural gas reserves divided by proved reserve additions and revisions to proved reserves. | ||||
Fracturing | The process of creating and preserving a fracture or system of fractures in a reservoir rock typically by injecting a fluid under pressure through a wellbore and into the targeted formation. | ||||
Gross acres or gross wells | The total acres or wells, as the case may be, in which a working interest is owned. | ||||
Horizontal drilling | A drilling technique used in certain formations where a well is drilled vertically to a certain depth and then drilled at a right angle with a specified interval. | ||||
Horizontal wells | Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms. | ||||
MBbls | One thousand barrels of crude oil or other liquid hydrocarbons. | ||||
MBOE | One thousand barrels of crude oil equivalent, determined using a ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids. | ||||
Mcf | One thousand cubic feet of natural gas. | ||||
Mcf/d | One thousand cubic feet of natural gas per day. | ||||
Mineral interests | The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources. | ||||
MMBtu | One million British Thermal Units. | ||||
MMcf | Million cubic feet of natural gas. | ||||
Net acres or net wells | The sum of the fractional working interest owned in gross acres. | ||||
Net revenue interest | An owner’s interest in the revenues of a well after deducting proceeds allocated to royalty and overriding interests. | ||||
Net royalty acres | Gross acreage multiplied by the average royalty interest. | ||||
Oil and natural gas properties | Tracts of land consisting of properties to be developed for oil and natural gas resource extraction. | ||||
Operator | The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease. | ||||
Play | A set of discovered or prospective oil and/or natural gas accumulations sharing similar geologic, geographic and temporal properties, such as source rock, reservoir structure, timing, trapping mechanism and hydrocarbon type. | ||||
Plugging and abandonment | Refers to the sealing off of fluids in the strata penetrated by a well so that the fluids from one stratum will not escape into another or to the surface. Regulations of all states require plugging of abandoned wells. | ||||
PUD | Proved undeveloped. | ||||
Productive well | A well that is found to be capable of producing hydrocarbons in sufficient quantities such that proceeds from the sale of the production exceed production expenses and taxes. | ||||
Prospect | A specific geographic area which, based on supporting geological, geophysical or other data and also preliminary economic analysis using reasonably anticipated prices and costs, is deemed to have potential for the discovery of commercial hydrocarbons. | ||||
Proved developed reserves | Reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. | ||||
Proved reserves | The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions. | ||||
Proved undeveloped reserves | Proved reserves that are expected to be recovered from new wells on undrilled acreage or from existing wells where a relatively major expenditure is required for recompletion. | ||||
Recompletion | The process of re-entering an existing wellbore that is either producing or not producing and completing new reservoirs in an attempt to establish or increase existing production. | ||||
Reserves | Reserves are estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations). | ||||
Reservoir | A porous and permeable underground formation containing a natural accumulation of producible natural gas and/or crude oil that is confined by impermeable rock or water barriers and is separate from other reservoirs. | ||||
Resource play | A set of discovered or prospective oil and/or natural gas accumulations sharing similar geologic, geographic and temporal properties, such as source rock, reservoir structure, timing, trapping mechanism and hydrocarbon type. | ||||
Royalty interest | An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development, which may be subject to expiration. | ||||
Spacing | The distance between wells producing from the same reservoir. Spacing is often expressed in terms of acres (e.g., 40-acre spacing) and is often established by regulatory agencies. | ||||
Tight formation | A formation with low permeability that produces natural gas with very low flow rates for long periods of time. | ||||
Undeveloped acreage | Lease acreage on which wells have not been drilled or completed to a point that would permit the production of economic quantities of oil and natural gas regardless of whether such acreage contains proved reserves. | ||||
Working interest | An operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and receive a share of production and requires the owner to pay a share of the costs of drilling and production operations. | ||||
WTI | West Texas Intermediate. | ||||
ASU | Accounting Standards Update. | ||||
Company | Diamondback Energy, Inc., a Delaware corporation, together with its subsidiaries. | ||||
Dodd-Frank Act | Dodd-Frank Wall Street Reform and Consumer Protection Act (HR 4173). | ||||
EPA | U.S. Environmental Protection Agency. | ||||
Equity Plan | The Company’s Equity Incentive Plan. | ||||
Exchange Act | The Securities Exchange Act of 1934, as amended. | ||||
FASB | Financial Accounting Standards Board. | ||||
FERC | Federal Energy Regulatory Commission. | ||||
GAAP | Accounting principles generally accepted in the United States. | ||||
2025 Indenture | The indenture relating to the 2025 Senior Notes, dated as of December 20, 2016, among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented. | ||||
2025 Senior Notes | The Company’s 5.375% senior unsecured notes due 2025 in the aggregate principal amount of $800 million. | ||||
December 2019 Notes Indenture | The indenture relating to the December 2019 Notes dated as of December 5, 2019, among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented. | ||||
December 2019 Notes | The Company’s 2.875% senior unsecured notes due 2024 in the aggregate principal amount of $1.0 billion, the Company’s 3.250% senior unsecured notes due 2026 in the aggregate principal amount of $800 million and the Company’s 3.500% senior unsecured notes due 2029 in the aggregate principal amount of $1.2 billion. | ||||
May 2020 Notes | The Company’s 4.750% Senior Notes due 2025 in the aggregate principal amount of $500.0 million issued on May 26, 2020 under the December 2019 Notes Indenture (defined above) and the related second supplemental indenture. | ||||
NYMEX | New York Mercantile Exchange. | ||||
Rattler | Rattler Midstream LP, a Delaware limited partnership. | ||||
Rattler’s general partner | Rattler Midstream GP LLC, a Delaware limited liability company; the general partner of Rattler Midstream LP and a wholly owned subsidiary of the Company. | ||||
Rattler LLC | Rattler Midstream Operating LLC, a Delaware limited liability company and a subsidiary of Rattler. | ||||
Rattler LTIP | Rattler Midstream LP Long-Term Incentive Plan. | ||||
Rattler Offering | Rattler’s initial public offering. | ||||
Ryder Scott | Ryder Scott Company, L.P. | ||||
SEC | Securities and Exchange Commission. | ||||
SEC Prices | Unweighted arithmetic average oil and natural gas prices as of the first day of the month for the most recent 12 months as of the balance sheet date. | ||||
Securities Act | The Securities Act of 1933, as amended. | ||||
Senior Notes | The 2025 Senior Notes, the December 2019 Notes and the May 2020 Notes. | ||||
Viper | Viper Energy Partners LP, a Delaware limited partnership. | ||||
Viper’s general partner | Viper Energy Partners GP LLC, a Delaware limited liability company and the General Partner of the Partnership. | ||||
Viper LLC | Viper Energy Partners LLC, a Delaware limited liability company and a subsidiary of the Partnership. | ||||
Wells Fargo | Wells Fargo Bank, National Association. |
Basin | Number of Horizontal Wells | ||||
Midland | 1,408 | ||||
Delaware | 917 | ||||
Other | 55 | ||||
Total(1) | 2,380 |
Average Days to Total Depth | |||||
Midland Basin | |||||
7,500 foot lateral | 12 | ||||
10,000 foot lateral | 13 | ||||
13,000 foot lateral | 17 | ||||
Delaware Basin | |||||
7,500 foot lateral | 16 | ||||
10,000 foot lateral | 18 | ||||
13,000 foot lateral | 26 |
As of December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Estimated Proved Developed Reserves: | |||||||||||||||||
Oil (MBbls) | 443,464 | 457,083 | 403,051 | ||||||||||||||
Natural gas (MMcf) | 1,085,035 | 824,760 | 705,084 | ||||||||||||||
Natural gas liquids (MBbls) | 192,495 | 165,173 | 125,509 | ||||||||||||||
Total (MBOE) | 816,798 | 759,716 | 646,074 | ||||||||||||||
Estimated Proved Undeveloped Reserves: | |||||||||||||||||
Oil (MBbls) | 315,937 | 253,820 | 223,885 | ||||||||||||||
Natural gas (MMcf) | 522,029 | 294,051 | 343,565 | ||||||||||||||
Natural gas liquids (MBbls) | 96,701 | 65,030 | 64,782 | ||||||||||||||
Total (MBOE) | 499,643 | 367,859 | 345,928 | ||||||||||||||
Estimated Net Proved Reserves: | |||||||||||||||||
Oil (MBbls) | 759,401 | 710,903 | 626,936 | ||||||||||||||
Natural gas (MMcf) | 1,607,064 | 1,118,811 | 1,048,649 | ||||||||||||||
Natural gas liquids (MBbls) | 289,196 | 230,203 | 190,291 | ||||||||||||||
Total (MBOE)(1) | 1,316,441 | 1,127,575 | 992,001 | ||||||||||||||
Percent proved developed | 62% | 67% | 65% |
Beginning proved undeveloped reserves at December 31, 2019 | 367,859 | ||||
Undeveloped reserves transferred to developed | (89,133) | ||||
Revisions | (15,742) | ||||
Purchases | 964 | ||||
Divestitures | (14) | ||||
Extensions and discoveries | 235,709 | ||||
Ending proved undeveloped reserves at December 31, 2020 | 499,643 |
Number of Identified Economic Potential Horizontal Drilling Locations | |||||
Midland Basin | |||||
Lower Spraberry(1) | 1,015 | ||||
Middle Spraberry(2) | 1,074 | ||||
Wolfcamp A(3) | 909 | ||||
Wolfcamp B(3) | 1,006 | ||||
Other | 2,111 | ||||
Total Midland Basin | 6,115 | ||||
Delaware Basin | |||||
2nd Bone Springs(4) | 870 | ||||
3rd Bone Springs(4) | 1,222 | ||||
Wolfcamp A(5) | 854 | ||||
Wolfcamp B(6) | 755 | ||||
Other | 597 | ||||
Total Delaware Basin | 4,298 | ||||
Total | 10,413 |
Midland Basin | Delaware Basin | Other(1)(2) | Total | |||||||||||
(in thousands) | ||||||||||||||
Production Data: | ||||||||||||||
Year Ended December 31, 2020 | ||||||||||||||
Oil (MBbls) | 38,313 | 27,703 | 166 | 66,182 | ||||||||||
Natural gas (MMcf) | 68,529 | 61,606 | 414 | 130,549 | ||||||||||
Natural gas liquids (MBbls) | 12,597 | 9,295 | 89 | 21,981 | ||||||||||
Total (MBoe) | 62,332 | 47,266 | 324 | 109,921 | ||||||||||
Year Ended December 31, 2019 | ||||||||||||||
Oil (MBbls) | 41,156 | 25,951 | 1,411 | 68,518 | ||||||||||
Natural gas (MMcf) | 48,109 | 48,447 | 1,057 | 97,613 | ||||||||||
Natural gas liquids (MBbls) | 10,485 | 7,826 | 187 | 18,498 | ||||||||||
Total (MBoe) | 59,659 | 41,852 | 1,774 | 103,285 | ||||||||||
Year Ended December 31, 2018 | ||||||||||||||
Oil (MBbls) | 24,698 | 9,288 | 381 | 34,367 | ||||||||||
Natural gas (MMcf) | 21,674 | 12,416 | 579 | 34,669 | ||||||||||
Natural gas liquids (MBbls) | 5,493 | 1,866 | 106 | 7,465 | ||||||||||
Total (MBoe) | 33,803 | 13,223 | 584 | 47,610 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Average Prices: | |||||||||||||||||
Oil ($ per Bbl) | $ | 36.41 | $ | 51.87 | $ | 54.66 | |||||||||||
Natural gas ($ per Mcf) | $ | 0.82 | $ | 0.68 | $ | 1.76 | |||||||||||
Natural gas liquids ($ per Bbl) | $ | 10.87 | $ | 14.42 | $ | 25.47 | |||||||||||
Combined ($ per BOE) | $ | 25.07 | $ | 37.63 | $ | 44.73 | |||||||||||
Oil, hedged ($ per Bbl)(1) | $ | 40.34 | $ | 51.96 | $ | 51.20 | |||||||||||
Natural gas, hedged ($ per MMbtu)(1) | $ | 0.67 | $ | 0.86 | $ | 1.72 | |||||||||||
Natural gas liquids, hedged ($ per Bbl)(1) | $ | 10.83 | $ | 15.20 | $ | 25.46 | |||||||||||
Average price, hedged ($ per BOE)(1) | $ | 27.26 | $ | 38.00 | $ | 42.20 | |||||||||||
Average Costs per BOE: | |||||||||||||||||
Lease operating expenses | $ | 3.87 | $ | 4.74 | $ | 4.31 | |||||||||||
Production and ad valorem taxes | 1.77 | 2.40 | 2.79 | ||||||||||||||
Gathering and transportation expense | 1.27 | 0.86 | 0.55 | ||||||||||||||
General and administrative - cash component | 0.46 | 0.54 | 0.79 | ||||||||||||||
Total operating expense - cash | $ | 7.37 | $ | 8.54 | $ | 8.44 | |||||||||||
General and administrative - non-cash component | $ | 0.34 | $ | 0.46 | $ | 0.57 | |||||||||||
Depletion | 11.30 | 13.54 | 12.50 | ||||||||||||||
Interest expense, net | 1.79 | 1.66 | 1.83 | ||||||||||||||
Merger and integration expense | — | — | 0.77 | ||||||||||||||
Total expenses | $ | 13.43 | $ | 15.66 | $ | 15.67 |
Year Ended December 31, 2020 | |||||||||||||||||
Drilled | Completed | ||||||||||||||||
Area | Gross | Net | Gross | Net | |||||||||||||
Midland Basin | 133 | 125 | 93 | 85 | |||||||||||||
Delaware Basin | 75 | 70 | 78 | 74 | |||||||||||||
Total | 208 | 195 | 171 | 159 |
Vertical Wells | Horizontal Wells | Total | ||||||||||||||||||||||||
Area | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||
Midland Basin | 1,745 | 1,641 | 1,102 | 1,008 | 2,847 | 2,649 | ||||||||||||||||||||
Delaware Basin | 25 | 22 | 592 | 557 | 617 | 579 | ||||||||||||||||||||
Total | 1,770 | 1,663 | 1,694 | 1,565 | 3,464 | 3,228 |
Gross Wells | Net Wells | ||||||||||||||||||||||||||||||||||
Oil | Natural Gas | Total | Oil | Natural Gas | Total | ||||||||||||||||||||||||||||||
Midland Basin | 5,397 | 29 | 5,426 | 2,740 | 10 | 2,750 | |||||||||||||||||||||||||||||
Delaware Basin | 1,904 | 158 | 2,062 | 630 | 19 | 649 | |||||||||||||||||||||||||||||
Other | 1,316 | 75 | 1,391 | 2 | — | 2 | |||||||||||||||||||||||||||||
Total productive wells | 8,617 | 262 | 8,879 | 3,372 | 29 | 3,401 |
Year Ended December 31, 2020 | |||||||||||||||||||||||||||||||||||
Midland Basin | Delaware Basin | Total | |||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||
Development: | |||||||||||||||||||||||||||||||||||
Productive | 87 | 81 | 26 | 25 | 113 | 106 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Exploratory: | |||||||||||||||||||||||||||||||||||
Productive | 46 | 44 | 49 | 45 | 95 | 89 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Productive | 133 | 125 | 75 | 70 | 208 | 195 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — |
Year Ended December 31, 2019 | |||||||||||||||||||||||||||||||||||
Midland Basin | Delaware Basin | Total | |||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||
Development: | |||||||||||||||||||||||||||||||||||
Productive | 75 | 68 | 31 | 28 | 106 | 96 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Exploratory: | |||||||||||||||||||||||||||||||||||
Productive | 96 | 86 | 128 | 114 | 224 | 200 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Productive | 171 | 154 | 159 | 142 | 330 | 296 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — |
Year Ended December 31, 2018 | |||||||||||||||||||||||||||||||||||
Midland Basin | Delaware Basin | Total | |||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||
Development: | |||||||||||||||||||||||||||||||||||
Productive | 67 | 58 | 21 | 20 | 88 | 78 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Exploratory: | |||||||||||||||||||||||||||||||||||
Productive | 50 | 43 | 38 | 35 | 88 | 78 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||
Productive | 117 | 101 | 59 | 55 | 176 | 156 | |||||||||||||||||||||||||||||
Dry | — | — | — | — | — | — |
Developed Acreage(1) | Undeveloped Acreage | Total Acreage(2) | |||||||||||||||||||||||||||||||||
Basin | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||||||||||||
Midland | 119,073 | 99,751 | 96,883 | 94,840 | 215,956 | 194,591 | |||||||||||||||||||||||||||||
Delaware | 103,712 | 77,263 | 88,985 | 75,324 | 192,697 | 152,587 | |||||||||||||||||||||||||||||
Exploration | 107 | 107 | 38,097 | 28,838 | 38,204 | 28,945 | |||||||||||||||||||||||||||||
Conventional Permian | 40 | 38 | 2,745 | 2,517 | 2,785 | 2,555 | |||||||||||||||||||||||||||||
Total | 222,932 | 177,159 | 226,710 | 201,519 | 449,642 | 378,678 |
Acres Expiring | |||||||||||||||||||||||||||||||||||||||||||||||
Delaware | Midland | Exploratory | Total | ||||||||||||||||||||||||||||||||||||||||||||
Gross | Net | Gross | Net | Gross | Net | Gross | Net | ||||||||||||||||||||||||||||||||||||||||
2021 | 13,727 | 8,149 | 24,099 | 21,093 | 23,474 | 22,063 | 61,300 | 51,305 | |||||||||||||||||||||||||||||||||||||||
2022 | 9,634 | 1,063 | 3,294 | 813 | 659 | 165 | 13,587 | 2,041 | |||||||||||||||||||||||||||||||||||||||
2023 | 966 | 410 | 1,951 | 1,597 | — | — | 2,917 | 2,007 | |||||||||||||||||||||||||||||||||||||||
2024 | 370 | 59 | — | — | — | — | 370 | 59 | |||||||||||||||||||||||||||||||||||||||
Total | 24,697 | 9,681 | 29,344 | 23,503 | 24,133 | 22,228 | 78,174 | 55,412 |
Midland Basin | Delaware Basin | Total | |||||||||||||||
% of produced oil sold by pipeline | 95 | % | 93 | % | 94 | % | |||||||||||
% of produced water transported by pipeline | 97 | % | 98 | % | 98 | % |
Period | Total Number of Shares Purchased | Average Price Paid Per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plan | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plan(2) | ||||||||||||||||||||||
($ in millions, except per share amounts, shares in thousands) | ||||||||||||||||||||||||||
October 1, 2020 - October 31, 2020 | — | $ | — | — | $ | 1,304 | ||||||||||||||||||||
November 1, 2020 - November 30, 2020 | — | $ | — | — | $ | 1,304 | ||||||||||||||||||||
December 1, 2020 - December 31, 2020 | — | $ | — | — | $ | — | ||||||||||||||||||||
Total | — | $ | — | — |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Revenues (in millions): | |||||||||||
Oil sales | $ | 2,410 | $ | 3,554 | |||||||
Natural gas sales | 107 | 66 | |||||||||
Natural gas liquid sales | 239 | 267 | |||||||||
Total oil, natural gas and natural gas liquid revenues | $ | 2,756 | $ | 3,887 | |||||||
Production Data (in thousands): | |||||||||||
Oil (MBbls) | 66,182 | 68,518 | |||||||||
Natural gas (MMcf) | 130,549 | 97,613 | |||||||||
Natural gas liquids (MBbls) | 21,981 | 18,498 | |||||||||
Combined volumes (MBOE) | 109,921 | 103,285 | |||||||||
Daily oil volumes (BO/d) | 180,825 | 187,721 | |||||||||
Daily combined volumes (BOE/d) | 300,331 | 282,972 | |||||||||
Average Prices: | |||||||||||
Oil ($ per Bbl) | $ | 36.41 | $ | 51.87 | |||||||
Natural gas ($ per Mcf) | $ | 0.82 | $ | 0.68 | |||||||
Natural gas liquids ($ per Bbl) | $ | 10.87 | $ | 14.42 | |||||||
Combined ($ per BOE) | $ | 25.07 | $ | 37.63 | |||||||
Oil, hedged ($ per Bbl)(1) | $ | 40.34 | $ | 51.96 | |||||||
Natural gas, hedged ($ per MMbtu)(1) | $ | 0.67 | $ | 0.86 | |||||||
Natural gas liquids, hedged ($ per Bbl)(1) | $ | 10.83 | $ | 15.20 | |||||||
Average price, hedged ($ per BOE)(1) | $ | 27.26 | $ | 38.00 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
Oil (MBbls) | 60 | % | 66 | % | |||||||
Natural gas (MMcf) | 20 | % | 16 | % | |||||||
Natural gas liquids (MBbls) | 20 | % | 18 | % | |||||||
100 | % | 100 | % |
Change in prices | Production volumes(1) | Total net dollar effect of change | |||||||||||||||
(in millions) | |||||||||||||||||
Effect of changes in price: | |||||||||||||||||
Oil | $ | (15.46) | 66,182 | $ | (1,023) | ||||||||||||
Natural gas | $ | 0.14 | 130,549 | $ | 18 | ||||||||||||
Natural gas liquids | $ | (3.55) | 21,981 | $ | (77) | ||||||||||||
Total revenues due to change in price | $ | (1,082) | |||||||||||||||
Change in production volumes(1) | Prior period average prices | Total net dollar effect of change | |||||||||||||||
(in millions) | |||||||||||||||||
Effect of changes in production volumes: | |||||||||||||||||
Oil | (2,336) | $ | 51.87 | $ | (121) | ||||||||||||
Natural gas | 32,936 | $ | 0.68 | $ | 22 | ||||||||||||
Natural gas liquids | 3,483 | $ | 14.42 | $ | 50 | ||||||||||||
Total change in revenues | $ | (49) | |||||||||||||||
$ | (1,131) |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Midstream services | $ | 50 | $ | 64 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in millions, except per BOE amounts) | Amount | Per BOE | Amount | Per BOE | |||||||||||||
Lease operating expenses | $ | 425 | $ | 3.87 | $ | 490 | $ | 4.74 | |||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in millions, except per BOE amounts) | Amount | Per BOE | Amount | Per BOE | |||||||||||||
Production taxes | $ | 135 | $ | 1.23 | $ | 184 | $ | 1.78 | |||||||||
Ad valorem taxes | 60 | 0.54 | 64 | 0.62 | |||||||||||||
Total production and ad valorem expense | $ | 195 | $ | 1.77 | $ | 248 | $ | 2.40 | |||||||||
Production taxes as a % of oil, natural gas, and natural gas liquids revenue | 4.9 | % | 4.7 | % |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in millions, except per BOE amounts) | Amount | Per BOE | Amount | Per BOE | |||||||||||||
Gathering and transportation expense | $ | 140 | $ | 1.27 | $ | 88 | $ | 0.86 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Midstream services expense | $ | 105 | $ | 91 |
Year Ended December 31, | |||||||||||
(in millions, except BOE amounts) | 2020 | 2019 | |||||||||
Depletion of proved oil and natural gas properties | $ | 1,242 | $ | 1,398 | |||||||
Depreciation of midstream assets | 44 | 33 | |||||||||
Depreciation of other property and equipment | 18 | 16 | |||||||||
Depreciation, depletion and amortization expense | $ | 1,304 | $ | 1,447 | |||||||
Oil and natural gas properties depletion per BOE | $ | 11.30 | $ | 13.54 |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
(in millions, except per BOE amounts) | Amount | Per BOE | Amount | Per BOE | |||||||||||||
General and administrative expenses | $ | 51 | $ | 0.46 | $ | 56 | $ | 0.54 | |||||||||
Non-cash stock-based compensation | 37 | 0.34 | 48 | 0.46 | |||||||||||||
Total general and administrative expenses | $ | 88 | $ | 0.80 | $ | 104 | $ | 1.00 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Interest expense, net | $ | 197 | $ | 172 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Gain (loss) on derivative instruments, net | $ | (81) | $ | (108) | |||||||
Net cash received (paid) on settlements | $ | 250 | $ | 80 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Provision for (benefit from) income taxes | $ | (1,104) | $ | 47 |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Net cash provided by (used in) operating activities | $ | 2,118 | $ | 2,739 | |||||||
Net cash provided by (used in) investing activities | (2,101) | (3,888) | |||||||||
Net cash provided by (used in) financing activities | (37) | 1,062 | |||||||||
Net change in cash | $ | (20) | $ | (87) |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Drilling, completions and non-operated additions to oil and natural gas properties(1)(2) | $ | 1,611 | $ | 2,557 | |||||||
Infrastructure additions to oil and natural gas properties | 108 | 120 | |||||||||
Additions to midstream assets | 140 | 244 | |||||||||
Total | $ | 1,859 | $ | 2,921 |
December 31, 2020 | |||||
Summarized Balance Sheets: | (in millions) | ||||
Assets: | |||||
Current assets | $ | 308 | |||
Property and equipment, net | $ | 6,934 | |||
Other noncurrent assets | $ | 6 | |||
Liabilities: | |||||
Current liabilities | $ | 355 | |||
Intercompany accounts payable, non-guarantor subsidiary | $ | 335 | |||
Long-term debt | $ | 4,293 | |||
Other noncurrent liabilities | $ | 886 |
Year Ended December 31, 2020 | |||||
Summarized Statement of Operations: | (in millions) | ||||
Revenues | $ | 1,618 | |||
Income (loss) from operations | $ | (3,466) | |||
Net income (loss) | $ | (2,344) |
Payments Due by Period | |||||||||||||||||||||||||||||
2021 | 2022-2023 | 2024-2025 | Thereafter | Total | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Secured revolving credit facility(1) | $ | — | $ | 23 | $ | — | $ | — | $ | 23 | |||||||||||||||||||
Senior notes | 191 | 20 | 2,300 | 2,100 | 4,611 | ||||||||||||||||||||||||
Interest expense related to the senior notes(2) | 181 | 342 | 279 | 212 | 1,014 | ||||||||||||||||||||||||
DrillCo Agreement | — | — | — | 79 | 79 | ||||||||||||||||||||||||
Viper's secured revolving credit facility(1) | — | 84 | — | — | 84 | ||||||||||||||||||||||||
Viper's senior notes | — | — | — | 480 | 480 | ||||||||||||||||||||||||
Interest expense related to Viper's senior notes | 26 | 52 | 52 | 52 | 182 | ||||||||||||||||||||||||
Rattler's secured revolving credit facility(1) | — | — | 79 | — | 79 | ||||||||||||||||||||||||
Rattler's senior notes | — | — | 500 | — | 500 | ||||||||||||||||||||||||
Interest expense related to Rattler's senior notes | 28 | 56 | 55 | — | 139 | ||||||||||||||||||||||||
Asset retirement obligations(3) | 1 | — | — | 108 | 109 | ||||||||||||||||||||||||
Drilling commitments(4) | 29 | — | — | — | 29 | ||||||||||||||||||||||||
Sand supply agreements | 18 | 36 | 36 | 5 | 95 | ||||||||||||||||||||||||
Transportation commitments | 60 | 111 | 95 | 133 | 399 | ||||||||||||||||||||||||
Equity method investment capital contributions(5) | 15 | — | — | ||||||||||||||||||||||||||
Produced water disposal commitments | 5 | 9 | 9 | 33 | 56 | ||||||||||||||||||||||||
Operating lease obligations(6) | 6 | 3 | — | — | 9 | ||||||||||||||||||||||||
$ | 602 | $ | 751 | $ | 3,405 | $ | 3,202 | $ | 7,960 |
Type | Effective Date | Contractual Termination Date | Notional Amount (in millions) | Interest Rate | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | 250 | 1.692 | % | ||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | 250 | 1.8361 | % | ||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | 250 | 1.852 | % | ||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | 250 | 1.722 | % | ||||||||
(a) | Documents included in this report: | |||||||
1. Financial Statements | ||||||||
F-1 | ||||||||
F-3 | ||||||||
F-4 | ||||||||
F-5 | ||||||||
F-6 | ||||||||
F-8 | ||||||||
2. Financial Statement Schedules | ||||||||
Financial statement schedules have been omitted because they are either not required, not applicable or the information required to be presented is included in the Company’s consolidated financial statements and related notes. |
3. Exhibits | ||||||||
Exhibit Number | Description | |||||||
2.1# | ||||||||
3.1 | ||||||||
3.2 | ||||||||
3.3 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 |
3. Exhibits | ||||||||
Exhibit Number | Description | |||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | ||||||||
4.12 | ||||||||
4.13 | ||||||||
4.14 | ||||||||
10.1 | ||||||||
10.2+ | ||||||||
10.3+ | ||||||||
10.4+* | ||||||||
10.5+* | ||||||||
10.6+ | ||||||||
10.7+ | ||||||||
10.8+ | ||||||||
10.9+ | ||||||||
10.10+ | ||||||||
10.11+* | ||||||||
10.12 |
3. Exhibits | ||||||||
Exhibit Number | Description | |||||||
10.13 | ||||||||
10.14 | ||||||||
10.15 | ||||||||
10.16 | ||||||||
10.17 | ||||||||
10.18 | ||||||||
10.19 | ||||||||
10.20 | ||||||||
10.21 | ||||||||
10.22 | ||||||||
10.23 |
3. Exhibits | ||||||||
Exhibit Number | Description | |||||||
10.24 | ||||||||
10.25 | ||||||||
10.26 | ||||||||
10.27 | ||||||||
10.28 | ||||||||
10.29 | ||||||||
10.30 | ||||||||
10.31+ | ||||||||
10.32+ | ||||||||
10.33+ | ||||||||
10.34+ | ||||||||
10.35+ | ||||||||
21.1* | ||||||||
23.1* | ||||||||
23.2* | ||||||||
23.3* | ||||||||
31.1* | ||||||||
31.2* |
3. Exhibits | ||||||||
Exhibit Number | Description | |||||||
32.1** | ||||||||
32.2** | ||||||||
99.1* | ||||||||
99.2* | ||||||||
101 | The following financial information from the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statement of Changes in Stockholders’ Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith. | ||||
** | The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompany this Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. | ||||
+ | Management contract, compensatory plan or arrangement. | ||||
# | The schedules (or similar attachments) referenced in this agreement have been omitted in accordance with Item 601(b)(2) of Regulation S-K. A copy of any omitted schedule (or similar attachment) will be furnished supplementally to the Securities and Exchange Commission upon request. |
DIAMONDBACK ENERGY, INC. | |||||||||||
Date: | February 25, 2021 | ||||||||||
/s/ Travis D. Stice | |||||||||||
Travis D. Stice | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) |
Signature | Title | Date | ||||||||||||
/s/ Steven E. West | Chairman of the Board and Director | February 25, 2021 | ||||||||||||
Steven E. West | ||||||||||||||
/s/ Travis D. Stice | Chief Executive Officer and Director | February 25, 2021 | ||||||||||||
Travis D. Stice | (Principal Executive Officer) | |||||||||||||
/s/ Vincent K. Brooks | Director | February 25, 2021 | ||||||||||||
Vincent K. Brooks | ||||||||||||||
/s/ Michael P. Cross | Director | February 25, 2021 | ||||||||||||
Michael P. Cross | ||||||||||||||
/s/ David L. Houston | Director | February 25, 2021 | ||||||||||||
David L. Houston | ||||||||||||||
/s/ Stephanie K. Mains | Director | February 25, 2021 | ||||||||||||
Stephanie K. Mains | ||||||||||||||
/s/ Mark L. Plaumann | Director | February 25, 2021 | ||||||||||||
Mark L. Plaumann | ||||||||||||||
/s/ Melanie M. Trent | Director | February 25, 2021 | ||||||||||||
Melanie M. Trent | ||||||||||||||
/s/ Kaes Van’t Hof | Chief Financial Officer and Executive Vice President—Business Development | February 25, 2021 | ||||||||||||
Kaes Van’t Hof | (Principal Financial Officer) | |||||||||||||
/s/ Teresa L. Dick | Chief Accounting Officer, Executive Vice President and Assistant Secretary | February 25, 2021 | ||||||||||||
Teresa L. Dick | (Principal Accounting Officer) |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions, except par value and share amounts) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable: | |||||||||||
Joint interest and other, net | |||||||||||
Oil and natural gas sales, net | |||||||||||
Inventories | |||||||||||
Derivative instruments | |||||||||||
Income tax receivable | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment: | |||||||||||
Oil and natural gas properties, full cost method of accounting ($ | |||||||||||
Midstream assets | |||||||||||
Other property, equipment and land | |||||||||||
Accumulated depletion, depreciation, amortization and impairment | ( | ( | |||||||||
Property and equipment, net | |||||||||||
Funds held in escrow | |||||||||||
Equity method investments | |||||||||||
Derivative instruments | |||||||||||
Deferred income taxes, net | |||||||||||
Investment in real estate, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable - trade | $ | $ | |||||||||
Accrued capital expenditures | |||||||||||
Current maturities of long-term debt | |||||||||||
Other accrued liabilities | |||||||||||
Revenues and royalties payable | |||||||||||
Derivative instruments | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Derivative instruments | |||||||||||
Asset retirement obligations | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 17) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings (accumulated deficit) | ( | ||||||||||
Total Diamondback Energy, Inc. stockholders’ equity | |||||||||||
Non-controlling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions, except per share amounts, shares in thousands) | |||||||||||||||||
Revenues: | |||||||||||||||||
Oil sales | $ | $ | $ | ||||||||||||||
Natural gas sales | |||||||||||||||||
Natural gas liquid sales | |||||||||||||||||
Midstream services | |||||||||||||||||
Other operating income | |||||||||||||||||
Total revenues | |||||||||||||||||
Costs and expenses: | |||||||||||||||||
Lease operating expenses | |||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||
Gathering and transportation | |||||||||||||||||
Midstream services expense | |||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||
Impairment of oil and natural gas properties | |||||||||||||||||
General and administrative expenses | |||||||||||||||||
Asset retirement obligation accretion | |||||||||||||||||
Merger and integration expense | |||||||||||||||||
Other operating expense | |||||||||||||||||
Total costs and expenses | |||||||||||||||||
Income (loss) from operations | ( | ||||||||||||||||
Other income (expense): | |||||||||||||||||
Interest expense, net | ( | ( | ( | ||||||||||||||
Other income (expense), net | |||||||||||||||||
Gain (loss) on derivative instruments, net | ( | ( | |||||||||||||||
Gain (loss) on revaluation of investment | ( | ( | |||||||||||||||
Loss on extinguishment of debt | ( | ( | |||||||||||||||
Income (loss) from equity investments | ( | ( | |||||||||||||||
Total other income (expense), net | ( | ( | |||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||
Provision for (benefit from) income taxes | ( | ||||||||||||||||
Net income (loss) | ( | ||||||||||||||||
Net income (loss) attributable to non-controlling interest | ( | ||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | ( | $ | $ | |||||||||||||
Earnings (loss) per common share: | |||||||||||||||||
Basic | $ | ( | $ | $ | |||||||||||||
Diluted | $ | ( | $ | $ | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted | |||||||||||||||||
Dividends declared per share | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest | ||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||
($ in millions, shares in thousands) | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||
— | — | — | ( | ( | ( | ||||||||||||||||||||||||||||||
Net proceeds from issuance of common units - Viper Energy Partners LP | — | — | — | — | |||||||||||||||||||||||||||||||
Unit-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Common shares issued for business combination | — | — | |||||||||||||||||||||||||||||||||
Stock options assumed in business combination | — | — | — | — | |||||||||||||||||||||||||||||||
Restricted stock units assumed in business combination | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchased shares for tax withholding | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Common shares issued for Ajax | — | — | — | ||||||||||||||||||||||||||||||||
Dividend paid | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | — | — | |||||||||||||||||||||||||||||||
Change in ownership of consolidated subsidiaries, net | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Balance December 31, 2018 | |||||||||||||||||||||||||||||||||||
Net proceeds from issuance of common units - Viper Energy Partners LP | — | — | — | — | |||||||||||||||||||||||||||||||
Net proceeds from issuance of common units - Rattler Midstream LP | — | — | — | — | |||||||||||||||||||||||||||||||
Unit-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Common units issued for acquisition | — | — | — | — | |||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchased shares for tax withholding | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Repurchased shares under buyback program | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividend paid | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Exercise of stock and unit options and awards of restricted stock | — | — | — | ||||||||||||||||||||||||||||||||
Change in ownership of consolidated subsidiaries, net | — | — | ( | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | |||||||||||||||||||||||||||||||||||
Unit-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Distribution equivalent rights payments | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Repurchased shares for tax withholding | ( | — | ( | — | ( | ( | |||||||||||||||||||||||||||||
Repurchased shares under buyback program | ( | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Repurchased units under buyback programs | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Distribution to non-controlling interest | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Dividend paid | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units | — | — | — | ||||||||||||||||||||||||||||||||
Change in ownership of consolidated subsidiaries, net | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | ( | $ | $ | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Provision for (benefit from) deferred income taxes | ( | ||||||||||||||||
Impairment of oil and natural gas properties | |||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||
Loss on early extinguishment of debt | |||||||||||||||||
(Gain) loss on derivative instruments, net | ( | ||||||||||||||||
Cash received (paid) on settlement of derivative instruments | ( | ||||||||||||||||
Equity-based compensation expense | |||||||||||||||||
Other | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable | ( | ||||||||||||||||
Income tax receivable | ( | ||||||||||||||||
Prepaid expenses and other | |||||||||||||||||
Accounts payable and accrued liabilities | ( | ( | ( | ||||||||||||||
Revenues and royalties payable | ( | ||||||||||||||||
Other | ( | ( | |||||||||||||||
Net cash provided by (used in) operating activities | |||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Drilling, completions and non-operated additions to oil and natural gas properties | ( | ( | ( | ||||||||||||||
Infrastructure additions to oil and natural gas properties | ( | ( | ( | ||||||||||||||
Additions to midstream assets | ( | ( | ( | ||||||||||||||
Acquisitions of leasehold interests | ( | ( | ( | ||||||||||||||
Acquisitions of mineral interests | ( | ( | ( | ||||||||||||||
Funds held in escrow | ( | ||||||||||||||||
Proceeds from sale of assets | |||||||||||||||||
Investment in real estate | ( | ( | |||||||||||||||
Contributions to equity method investments | ( | ( | |||||||||||||||
Other | ( | ( | |||||||||||||||
Net cash provided by (used in) investing activities | ( | ( | ( | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Proceeds from borrowings under credit facilities | |||||||||||||||||
Repayments under credit facilities | ( | ( | ( | ||||||||||||||
Repayment on Energen's credit facility | ( | ||||||||||||||||
Proceeds from senior notes | |||||||||||||||||
Repayment of senior notes | ( | ( | |||||||||||||||
Proceeds from joint venture | |||||||||||||||||
Premium on extinguishment of debt | ( | ( | |||||||||||||||
Debt issuance costs | ( | ( | ( | ||||||||||||||
Public offering costs | ( | ( | |||||||||||||||
Proceeds from public offerings | |||||||||||||||||
Repurchased shares under buyback program | ( | ( | |||||||||||||||
Repurchased units under buyback program | ( | ||||||||||||||||
Dividends to stockholders | ( | ( | ( | ||||||||||||||
Distributions to non-controlling interest | ( | ( | ( | ||||||||||||||
Other | ( | ( | ( | ||||||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ( | |||||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | $ | ||||||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||||||
Interest paid, net of capitalized interest | $ | $ | $ | ||||||||||||||
Supplemental disclosure of non-cash transactions: | |||||||||||||||||
Accrued capital expenditures | $ | $ | $ | ||||||||||||||
Common stock issued for Ajax | $ | $ | $ | ||||||||||||||
Common stock issued for business combination(1) | $ | $ | $ | ||||||||||||||
Asset retirement obligations acquired | $ | $ | $ | ||||||||||||||
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Lease operating expenses payable | $ | $ | |||||||||
Ad valorem taxes payable | |||||||||||
Interest payable | |||||||||||
Derivative liability payable | |||||||||||
Midstream operating expenses payable | |||||||||||
Liability for drilling costs prepaid by joint interest partners | |||||||||||
Other | |||||||||||
Total other accrued liabilities | $ | $ |
Year Ended December 31, 2020 | |||||||||||||||||||||||
Midland Basin | Delaware Basin | Other | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Oil sales | $ | $ | $ | $ | |||||||||||||||||||
Natural gas sales | |||||||||||||||||||||||
Natural gas liquid sales | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Year Ended December 31, 2019 | |||||||||||||||||||||||
Midland Basin | Delaware Basin | Other | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Oil sales | $ | $ | $ | $ | |||||||||||||||||||
Natural gas sales | |||||||||||||||||||||||
Natural gas liquid sales | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Year Ended December 31, 2018 | |||||||||||||||||||||||
Midland Basin | Delaware Basin | Other | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Oil sales | $ | $ | $ | $ | |||||||||||||||||||
Natural gas sales | |||||||||||||||||||||||
Natural gas liquid sales | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
(In millions) | |||||
Consideration: | |||||
Fair value of the Company's common stock issued | $ | ||||
Total consideration | $ | ||||
Fair value of liabilities assumed: | |||||
Current liabilities | $ | ||||
Asset retirement obligation | |||||
Long-term debt | |||||
Noncurrent derivative instruments | |||||
Deferred income taxes | |||||
Other long-term liabilities | |||||
Amount attributable to liabilities assumed | $ | ||||
Fair value of assets acquired: | |||||
Total current assets | $ | ||||
Oil and natural gas properties | |||||
Midstream assets | |||||
Investment in real estate | |||||
Other property, equipment and land | |||||
Asset retirement obligation | |||||
Other postretirement assets | |||||
Noncurrent income tax receivable, net | |||||
Other long term assets | |||||
Amount attributable to assets acquired | $ | ||||
Year Ended December 31, | |||||||||||
2018 | 2017 | ||||||||||
(in millions, except per share amounts) | |||||||||||
Revenues | $ | $ | |||||||||
Income from operations | $ | $ | |||||||||
Net income | $ | $ | |||||||||
Basic earnings per common share | $ | $ | |||||||||
Diluted earnings per common share | $ | $ |
Date | Number of Units of Common Units Sold | Number of Units of Common Units Issued to Underwriters | Proceeds Received by Viper | Amount Repaid on Viper LLC’s Credit Facility | ||||||||||
(in millions) | ||||||||||||||
July 2018 | $ | $ | ||||||||||||
March 2019 | $ | $ |
Estimated Useful Lives | December 31, | ||||||||||||||||
2020 | 2019 | ||||||||||||||||
(Years) | (in millions) | ||||||||||||||||
Buildings | $ | $ | |||||||||||||||
Tenant improvements | |||||||||||||||||
Land | N/A | ||||||||||||||||
Land improvements | |||||||||||||||||
Total real estate assets | |||||||||||||||||
Less: accumulated depreciation | ( | ( | |||||||||||||||
Total investment in land and buildings, net | $ | $ |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Oil and natural gas properties: | |||||||||||
Subject to depletion | $ | $ | |||||||||
Not subject to depletion | |||||||||||
Gross oil and natural gas properties | |||||||||||
Accumulated depletion | ( | ( | |||||||||
Accumulated impairment | ( | ( | |||||||||
Oil and natural gas properties, net | |||||||||||
Midstream assets | |||||||||||
Other property, equipment and land | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Total property and equipment, net | $ | $ | |||||||||
Balance of costs not subject to depletion: | |||||||||||
Incurred in 2020 | $ | ||||||||||
Incurred in 2019 | |||||||||||
Incurred in 2018 | |||||||||||
Incurred in 2017 | |||||||||||
Incurred in 2016 | |||||||||||
Total not subject to depletion | $ |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Asset retirement obligations, beginning of period | $ | $ | |||||||||
Additional liabilities incurred | |||||||||||
Liabilities acquired | |||||||||||
Liabilities settled and divested | ( | ( | |||||||||
Accretion expense | |||||||||||
Revisions in estimated liabilities | |||||||||||
Asset retirement obligations, end of period | |||||||||||
Less: current portion(1) | |||||||||||
Asset retirement obligations - long-term | $ | $ |
Ownership Interest | December 31, 2020 | December 31, 2019 | |||||||||||||||
(in millions) | |||||||||||||||||
EPIC Crude Holdings, LP | % | $ | $ | ||||||||||||||
Gray Oak Pipeline, LLC | % | ||||||||||||||||
Wink to Webster Pipeline LLC | % | ||||||||||||||||
OMOG JV LLC | % | ||||||||||||||||
Amarillo Rattler, LLC | % | ||||||||||||||||
Total | $ | $ |
Year Ended December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
EPIC Crude Holdings, LP | $ | ( | $ | ( | |||||||
Gray Oak Pipeline, LLC | |||||||||||
Wink to Webster Pipeline LLC | ( | ( | |||||||||
OMOG JV LLC | ( | ||||||||||
Total | $ | ( | $ | ( |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
$ | $ | ||||||||||
DrillCo Agreement | |||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Unamortized discount costs | ( | ( | |||||||||
Unamortized premium costs | |||||||||||
Revolving credit facility(1) | |||||||||||
Viper revolving credit facility(1) | |||||||||||
Viper | |||||||||||
Rattler revolving credit facility(2) | |||||||||||
Rattler | |||||||||||
Total debt, net | |||||||||||
Less: current maturities of long-term debt | ( | ||||||||||
Total long-term debt | $ | $ |
Year Ending December 31, | Total | ||||
(in millions) | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Financial Covenant | Required Ratio | ||||
Ratio of total net debt to EBITDAX, as defined in the Viper credit agreement | Not greater than | ||||
Ratio of current assets to liabilities, as defined the Viper credit agreement | Not less than |
Financial Covenant | Required Ratio | |||||||
Consolidated Total Leverage Ratio commencing with the fiscal quarter ending September 30, 2019 | Not greater than | |||||||
Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Rattler credit agreement) is made | Not greater than | |||||||
Consolidated Interest Coverage Ratio (as defined in the Rattler credit agreement) commencing with the fiscal quarter ending September 30, 2019 | Not less than |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Interest expense | $ | $ | $ | ||||||||||||||
Other fees and expenses | |||||||||||||||||
Less: interest income | |||||||||||||||||
Less: capitalized interest | |||||||||||||||||
Interest expense, net | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions, except per share amounts, shares in thousands) | |||||||||||||||||
Net income (loss) attributable to common stock | $ | ( | $ | $ | |||||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic weighted average common units outstanding | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Potential common shares issuable(1) | |||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||
Basic net income (loss) attributable to common stock | $ | ( | $ | $ | |||||||||||||
Diluted net income (loss) attributable to common stock | $ | ( | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Net income (loss) attributable to the Company | $ | ( | $ | $ | |||||||||||||
Change in ownership of consolidated subsidiaries(1) | ( | ||||||||||||||||
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest | $ | ( | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
General and administrative expenses | $ | $ | $ | ||||||||||||||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | $ | $ | $ | ||||||||||||||
Restricted Stock Awards & Units | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested at December 31, 2019 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Unvested at December 31, 2020 | $ |
2020 | 2019 | 2018 | |||||||||||||||
Grant-date fair value | $ | $ | $ | ||||||||||||||
Grant-date fair value (5-year vesting) | $ | ||||||||||||||||
Risk-free rate | % | % | % | ||||||||||||||
Company volatility | % | % | % |
Performance Restricted Stock Units | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested at December 31, 2019 | $ | ||||||||||
Granted(1) | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Unvested at December 31, 2020(2) | $ |
Phantom Units | Weighted Average Grant-Date Fair Value | ||||||||||
Unvested at December 31, 2019 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Unvested at December 31, 2020 | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Current income tax provision (benefit): | |||||||||||||||||
Federal | $ | ( | $ | $ | |||||||||||||
State | |||||||||||||||||
Total current income tax provision (benefit) | ( | ||||||||||||||||
Deferred income tax provision (benefit): | |||||||||||||||||
Federal | ( | ||||||||||||||||
State | ( | ||||||||||||||||
Total deferred income tax provision (benefit) | ( | ||||||||||||||||
Total provision for (benefit from) income taxes | $ | ( | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Income tax expense at the federal statutory rate (21%) | $ | ( | $ | $ | |||||||||||||
Impact of nontaxable noncontrolling interest | ( | ||||||||||||||||
Income tax benefit relating to net operating loss carryback | ( | ||||||||||||||||
State income tax expense, net of federal tax effect | ( | ||||||||||||||||
Non-deductible compensation | |||||||||||||||||
Change in valuation allowance | |||||||||||||||||
Deferred taxes related to change in Viper LP's tax status | ( | ( | |||||||||||||||
Other, net | ( | ||||||||||||||||
Provision for (benefit from) income taxes | $ | ( | $ | $ |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Deferred tax assets: | |||||||||||
Net operating loss and other carryforwards | $ | $ | |||||||||
Derivative instruments | |||||||||||
Stock based compensation | |||||||||||
Viper's investment in Viper LLC | |||||||||||
Rattler's investment in Rattler LLC | |||||||||||
Other | |||||||||||
Deferred tax assets | |||||||||||
Valuation allowance | ( | ( | |||||||||
Deferred tax assets, net of valuation allowance | |||||||||||
Deferred tax liabilities: | |||||||||||
Oil and natural gas properties and equipment | |||||||||||
Midstream investments | |||||||||||
Derivative instruments | |||||||||||
Rattler's investment in Rattler LLC | |||||||||||
Other | |||||||||||
Total deferred tax liabilities | |||||||||||
Net deferred tax liabilities | $ | $ |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(in millions) | |||||||||||
Balance at beginning of year | $ | $ | |||||||||
Increase resulting from prior period tax positions | |||||||||||
Increase resulting from current period tax positions | |||||||||||
Balance at end of year | |||||||||||
Less: Effects of temporary items | ( | ( | |||||||||
Total that, if recognized, would impact the effective income tax rate as of the end of the year | $ | $ |
Swaps | Collars | |||||||||||||||||||||||||
Settlement Month | Settlement Year | Type of Contract | Bbls/Mmbtu/Gallons Per Day | Index | Weighted Average Differential | Weighted Average Fixed Price | Weighted Average Floor Price | Weighted Average Ceiling Price | ||||||||||||||||||
OIL | ||||||||||||||||||||||||||
Jan. - Mar. | 2021 | Costless Collars | WTI Cushing | $— | $— | $ | $ | |||||||||||||||||||
Apr. - June | 2021 | Costless Collars | WTI Cushing | $— | $— | $ | $ | |||||||||||||||||||
July - Dec. | 2021 | Costless Collars | WTI Cushing | $— | $— | $ | $ | |||||||||||||||||||
Jan. - June | 2021 | Roll Hedge(2) | WTI | $( | $ | $— | $— | |||||||||||||||||||
Jan. - Mar. | 2021 | Swaps | WTI | $ | $ | $— | $— | |||||||||||||||||||
Apr. - June | 2021 | Swaps | WTI | $ | $ | $— | $— | |||||||||||||||||||
Jan. - June | 2021 | Basis Swap | WTI Midland(1) | $ | $ | $— | $— | |||||||||||||||||||
Jan. - Dec. | 2021 | Swaps | WTI Houston Argus | $ | $ | $— | $— | |||||||||||||||||||
Jan. - Dec. | 2021 | Swaps | Brent | $ | $ | $— | $— | |||||||||||||||||||
Jan. - Mar. | 2021 | Costless Collars | Brent | $— | $— | $ | $ | |||||||||||||||||||
Apr. - June | 2021 | Costless Collars | Brent | $— | $— | $ | $ | |||||||||||||||||||
Jul. - Dec. | 2021 | Costless Collars | Brent | $— | $— | $ | $ | |||||||||||||||||||
Jul. - Dec. | 2021 | Swaptions | Brent | $ | $ | $— | $— | |||||||||||||||||||
NATURAL GAS | ||||||||||||||||||||||||||
Jan. - Dec. | 2021 | Swaps | Henry Hub | $ | $ | $— | $— | |||||||||||||||||||
Jan. - Dec. | 2021 | Basis Swaps | Waha Hub(1) | $( | $ | $— | $— | |||||||||||||||||||
Jan. - Dec. | 2022 | Basis Swaps | Waha Hub(1) | $( | $ | $— | $— | |||||||||||||||||||
Settlement Month | Settlement Year | Type of Contract | Bbls/Mcf Per Day | Index | Put Price | ||||||||||||
OIL | |||||||||||||||||
Jan. - Dec. | 2022 | Option | Brent | $ | |||||||||||||
Type | Effective Date | Contractual Termination Date | Notional Amount (in millions) | Interest Rate | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % | ||||||||||
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(in millions) | |||||||||||||||||
Gain (loss) on derivative instruments, net | |||||||||||||||||
Commodity contracts | $ | ( | $ | ( | $ | ||||||||||||
Interest rate swaps | ( | ||||||||||||||||
Total | $ | ( | $ | ( | $ | ||||||||||||
Net cash received (paid) on settlements | |||||||||||||||||
Commodity contracts(1) | ( | ||||||||||||||||
Interest rate swaps(2) | |||||||||||||||||
Total | $ | $ | $ | ( | |||||||||||||
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 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
Non-current: | ||||||||||||||||||||
Derivative Instruments | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
Liabilities: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Derivative Instruments | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
Non-current: | ||||||||||||||||||||
Derivative Instruments | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
As of December 31, 2019 | ||||||||||||||||||||
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 | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
Non-current: | ||||||||||||||||||||
Investment | $ | $ | $ | $ | $ | $ | ||||||||||||||
Derivative Instruments | $ | $ | $ | $ | $ | $ | ||||||||||||||
Liabilities: | ||||||||||||||||||||
Current: | ||||||||||||||||||||
Derivative Instruments | $ | $ | $ | $ | $ | ( | $ | |||||||||||||
December 31, 2020 | December 31, 2019 | ||||||||||||||||||||||
Carrying | Carrying | ||||||||||||||||||||||
Value(1) | Fair Value | Value(1) | Fair Value | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Debt: | |||||||||||||||||||||||
Revolving credit facility | $ | $ | $ | $ | |||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Viper revolving credit facility | $ | $ | $ | $ | |||||||||||||||||||
Viper's | $ | $ | $ | $ | |||||||||||||||||||
Rattler revolving credit facility | $ | $ | $ | $ | |||||||||||||||||||
Rattler’s | $ | $ | $ | $ | |||||||||||||||||||
DrillCo Agreement | $ | $ | $ | $ |
Year Ending December 31, | Transportation Commitments(1) | Sand Supply Agreement(2) | Produced Water Disposal Commitments(3) | ||||||||||||||
(in millions) | |||||||||||||||||
2021 | $ | $ | $ | ||||||||||||||
2022 | |||||||||||||||||
2023 | |||||||||||||||||
2024 | |||||||||||||||||
2025 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total | $ | $ | $ |
Year Ending December 31, | Oil Volume Commitments (Bbl/d) | ||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total |
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 | ||||||||||||||||||||||||||
July - Sep. | 2021 | Costless Collar | WTI | $— | $— | $ | $ | |||||||||||||||||||
Oct. - Dec. | 2021 | Costless Collar | WTI | $— | $— | $ | $ | |||||||||||||||||||
July - Sep. | 2021 | Costless Collar | WTI Houston Argus | $— | $— | $ | $ | |||||||||||||||||||
Apr. - Sep. | 2021 | Costless Collar | IPE Brent | $— | $— | $ | $ | |||||||||||||||||||
Oct. - Dec. | 2021 | Costless Collar | IPE Brent | $— | $— | $ | $ | |||||||||||||||||||
Mar. - Dec. | 2021 | Roll Hedge(2) | WTI | $ | $— | $— | $— | |||||||||||||||||||
Mar. - Dec. | 2021 | Swap | Henry Hub | $— | $ | $— | $— | |||||||||||||||||||
Jan. - June | 2021 | Basis Swap | WTI Midland(1) | $ | $— | $— | $— | |||||||||||||||||||
July - Dec. | 2021 | Basis Swap | WTI Midland(1) | $ | $— | $— | $— | |||||||||||||||||||
Jan. - Mar. | 2022 | Costless Collar | IPE Brent | $— | $— | $ | $ | |||||||||||||||||||
Apr. - Dec. | 2022 | Costless Collar | IPE Brent | $— | $— | $ | $ | |||||||||||||||||||
NATURAL GAS | ||||||||||||||||||||||||||
Apr. - Dec. | 2021 | Basis Swap | Waha Hub(1) | $( | $— | $— | $— | |||||||||||||||||||
Jan. - Dec. | 2022 | Basis Swap | Waha Hub(1) | $( | $— | $— | $— | |||||||||||||||||||
NATURAL GAS LIQUIDS | ||||||||||||||||||||||||||
Feb. - Dec. | 2021 | Swap | Mont Belvieu | $— | $ | $— | $— |
Type | Effective Date | Contractual Termination Date | Notional Amount (in millions) | Interest Rate | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % | ||||||||||
Interest Rate Swap | December 31, 2024 | December 31, 2054 | $ | % |
Upstream | Midstream Operations | Eliminations | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Year Ended December 31, 2020: | |||||||||||||||||||||||
Third-party revenues | $ | $ | $ | — | $ | ||||||||||||||||||
Intersegment revenues | — | ( | — | ||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ | ||||||||||||||||||
Lease operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Depreciation, depletion and amortization | $ | $ | $ | $ | |||||||||||||||||||
Impairment of oil and natural gas properties | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Interest expense, net | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other income (expense) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Provision for (benefit from) income taxes | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Net income (loss) attributable to non-controlling interest | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Total assets | $ | $ | $ | ( | $ |
Upstream | Midstream Operations | Eliminations | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Year Ended December 31, 2019: | |||||||||||||||||||||||
Third-party revenues | $ | $ | $ | — | $ | ||||||||||||||||||
Intersegment revenues | — | ( | — | ||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ | ||||||||||||||||||
Lease operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Depreciation, depletion and amortization | $ | $ | $ | $ | |||||||||||||||||||
Impairment of oil and natural gas properties | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | $ | $ | $ | ( | $ | ||||||||||||||||||
Interest expense, net | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Other income (expense) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Provision for (benefit from) income taxes | $ | $ | $ | $ | |||||||||||||||||||
Net income (loss) attributable to non-controlling interest | $ | $ | $ | ( | $ | ||||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | $ | $ | ( | $ | ||||||||||||||||||
Total assets | $ | $ | $ | ( | $ |
Upstream | Midstream Operations | Eliminations | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Year Ended December 31, 2018: | |||||||||||||||||||||||
Third-party revenues | $ | $ | $ | — | $ | ||||||||||||||||||
Intersegment revenues | — | ( | — | ||||||||||||||||||||
Total revenues | $ | $ | $ | ( | $ | ||||||||||||||||||
Lease operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Depreciation, depletion and amortization | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | $ | $ | $ | ( | $ | ||||||||||||||||||
Interest expense, net | $ | ( | $ | $ | $ | ( | |||||||||||||||||
Other income (expense) | $ | $ | $ | $ | |||||||||||||||||||
Provision for (benefit from) income taxes | $ | $ | $ | $ | |||||||||||||||||||
Net income (loss) attributable to non-controlling interest | $ | $ | $ | $ | |||||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | $ | $ | ( | $ | ||||||||||||||||||
Total assets | $ | $ | $ | ( | $ |
December 31, | |||||||||||
2020 | 2019 | ||||||||||
(In millions) | |||||||||||
Oil and natural gas properties: | |||||||||||
Proved properties | $ | $ | |||||||||
Unproved properties | |||||||||||
Total oil and natural gas properties | |||||||||||
Accumulated depletion | ( | ( | |||||||||
Accumulated impairment | ( | ( | |||||||||
Net oil and natural gas properties capitalized | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Acquisition costs: | |||||||||||||||||
Proved properties | $ | $ | $ | ||||||||||||||
Unproved properties | |||||||||||||||||
Development costs | |||||||||||||||||
Exploration costs | |||||||||||||||||
Total | $ | $ | $ |
Oil (MBbls) | Natural Gas Liquids (MBbls) | Natural Gas (MMcf) | |||||||||||||||
Proved Developed and Undeveloped Reserves: | |||||||||||||||||
As of December 31, 2017 | |||||||||||||||||
Extensions and discoveries | |||||||||||||||||
Revisions of previous estimates | |||||||||||||||||
Purchase of reserves in place | |||||||||||||||||
Divestitures | ( | ( | ( | ||||||||||||||
Production | ( | ( | ( | ||||||||||||||
As of December 31, 2018 | |||||||||||||||||
Extensions and discoveries | |||||||||||||||||
Revisions of previous estimates | ( | ( | ( | ||||||||||||||
Purchase of reserves in place | |||||||||||||||||
Divestitures | ( | ( | ( | ||||||||||||||
Production | ( | ( | ( | ||||||||||||||
As of December 31, 2019 | |||||||||||||||||
Extensions and discoveries | |||||||||||||||||
Revisions of previous estimates | ( | ||||||||||||||||
Purchase of reserves in place | |||||||||||||||||
Divestitures | ( | ( | ( | ||||||||||||||
Production | ( | ( | ( | ||||||||||||||
As of December 31, 2020 | |||||||||||||||||
Proved Developed Reserves: | |||||||||||||||||
December 31, 2017 | |||||||||||||||||
December 31, 2018 | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
December 31, 2020 | |||||||||||||||||
Proved Undeveloped Reserves: | |||||||||||||||||
December 31, 2017 | |||||||||||||||||
December 31, 2018 | |||||||||||||||||
December 31, 2019 | |||||||||||||||||
December 31, 2020 |
Beginning proved undeveloped reserves at December 31, 2019 | |||||
Undeveloped reserves transferred to developed | ( | ||||
Revisions | ( | ||||
Purchases | |||||
Divestitures | ( | ||||
Extensions and discoveries | |||||
Ending proved undeveloped reserves at December 31, 2020 |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Future cash inflows | $ | $ | $ | ||||||||||||||
Future development costs | ( | ( | ( | ||||||||||||||
Future production costs | ( | ( | ( | ||||||||||||||
Future production taxes | ( | ( | ( | ||||||||||||||
Future income tax expenses | ( | ( | ( | ||||||||||||||
Future net cash flows | |||||||||||||||||
10% discount to reflect timing of cash flows | ( | ( | ( | ||||||||||||||
Standardized measure of discounted future net cash flows(1) | $ | $ | $ |
December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Oil (per Bbl) | $ | $ | $ | ||||||||||||||
Natural gas (per Mcf) | $ | $ | $ | ||||||||||||||
Natural gas liquids (per Bbl) | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
(In millions) | |||||||||||||||||
Standardized measure of discounted future net cash flows at the beginning of the period | $ | $ | $ | ||||||||||||||
Sales of oil and natural gas, net of production costs | ( | ( | ( | ||||||||||||||
Acquisitions of reserves | |||||||||||||||||
Divestitures of reserves | ( | ( | ( | ||||||||||||||
Extensions and discoveries, net of future development costs | |||||||||||||||||
Previously estimated development costs incurred during the period | |||||||||||||||||
Net changes in prices and production costs | ( | ||||||||||||||||
Changes in estimated future development costs | ( | ( | |||||||||||||||
Revisions of previous quantity estimates | ( | ( | |||||||||||||||
Accretion of discount | |||||||||||||||||
Net change in income taxes | ( | ||||||||||||||||
Net changes in timing of production and other | ( | ( | ( | ||||||||||||||
Standardized measure of discounted future net cash flows at the end of the period | $ | $ | $ |
Name of Participant: | ________________ | ||||||||||
Total Number of Restricted Stock Units Granted: | _____________ | ||||||||||
Date of Grant: | ________, 2021 | ||||||||||
Vesting Schedule and Payment/Settlement Dates: | Shares of Common Stock will vest on the Vesting Dates specified below and will be settled within 10 business days after each Vesting Date specified below (the date of such settlements, the “Payment/Settlement Dates”). | ||||||||||
Vesting Date | # Vested Shares | ||||||||||
________ | _______ | ||||||||||
________ | _______ | ||||||||||
________ | _______ | ||||||||||
PARTICIPANT By:______________________________________ [Name] Dated: _____ __, 2021 | DIAMONDBACK ENERGY, INC. By:___________________________________________ Travis D. Stice, Chief Executive Officer Dated: _____ __, 2021 |
Name of Participant: | ____________________ |
Target Number of Restricted Stock Units Granted: | ________ | ||||
Date of Grant: | ________, 2021 | ||||
Payment/Settlement Dates: | Fully vested Restricted Stock Units will be settled by the payment of shares of Common Stock within 10 business days after the date on which the Committee has made the certification required under Section 7(b)(iv) of the Plan with respect to the performance goals applicable to such Restricted Stock Units (which in any event will be no later than March 15 of the calendar year following the calendar year in which the Performance Period ends). | ||||
Performance Period: | January 1, 2021 through December 31, 2023 | ||||
Performance Vesting Goals and Schedule: | The actual number of Restricted Stock Units with respect to which Participant will be entitled to receive shares of Common Stock will equal the product of (i) the Target Grant Vesting Percentage, multiplied by (ii) the Target Number of Restricted Stock Units Granted, multiplied by (iii) the Absolute TSR Modifier (as defined in Annex I attached hereto). The Target Grant Vesting Percentage will be determined based on the attainment of (i) Continuous Service through the last day of the Performance Period, and (ii) achieving the Relative Total Stockholder Return Percentile (as defined in Annex I attached hereto) and Company’s Absolute Total Stockholder Return performance goals set forth below: |
Relative Total Stockholder Return Percentile | Target Grant Vesting Percentage1 | |||||||
Below 25th Percentile of Peer Group | 0% of Target | |||||||
Between 25th Percentile of Peer Group and up to but less than 75th Percentile | Straight line interpolation between 50% and 150% of Target | |||||||
At or above 75th Percentile of Peer Group | 200% of Target | |||||||
Company’s Absolute Total Stockholder Return | Absolute TSR Modifier | |||||||
Below 0% | 75% | |||||||
Between 0% to 15% | 100% | |||||||
Above 15% | 125% |
PARTICIPANT __________________________________________ [Name] Dated: ________, 2021 | DIAMONDBACK ENERGY, INC. By:___________________________________________ Travis D. Stice, Chief Executive Officer Dated: ________, 2021 |
Name of Subsidiary | Jurisdiction of Incorporation | ||||
Bohemia Merger Sub Inc. | Delaware | ||||
Diamondback E&P LLC | Delaware | ||||
Diamondback O&G LLC | Delaware | ||||
Energen Corporation | Alabama | ||||
Energen Resources Corporation | Alabama | ||||
EGN Services, Inc. | Alabama | ||||
Rattler Midstream GP LLC | Delaware | ||||
Rattler Midstream Operating LLC | Delaware | ||||
Rattler Midstream LP | Delaware | ||||
Tall City Towers LLC | Delaware | ||||
Rattler Ajax Processing LLC | Delaware | ||||
Rattler OMOG LLC | Delaware | ||||
Viper Energy Partners GP | Delaware | ||||
Viper Energy Partners LP | Delaware | ||||
Viper Energy Partners LLC | Delaware |
/s/ Ryder Scott Company, L.P. | ||||||||||||||
RYDER SCOTT COMPANY, L.P. | ||||||||||||||
TBPE Firm Registration No. F-1580 |
/s/ Ryder Scott Company, L.P. | ||||||||||||||
RYDER SCOTT COMPANY, L.P. | ||||||||||||||
TBPE Firm Registration No. F-1580 |
Date: | February 25, 2021 | /s/ Travis D. Stice | |||||||||
Travis D. Stice | |||||||||||
Chief Executive Officer |
Date: | February 25, 2021 | /s/ Kaes Van't Hof | |||||||||
Kaes Van't Hof | |||||||||||
Chief Financial Officer |
Date: | February 25, 2021 | /s/ Travis D. Stice | |||||||||
Travis D. Stice | |||||||||||
Chief Executive Officer |
Date: | February 25, 2021 | /s/ Kaes Van't Hof | |||||||||
Kaes Van't Hof | |||||||||||
Chief Financial Officer |
/s/ Val Rick Robinson | /s/ Syed R. Rizvi | |||||||
Val Rick Robinson, P.E. | Syed R. Rizvi | |||||||
TBPE License No. 105137 | Senior Petroleum Engineer | |||||||
Managing Senior Vice President |
As of December 31, 2020 |
Proved | ||||||||||||||||||||
Developed | Total | |||||||||||||||||||
Producing | Undeveloped | Proved | ||||||||||||||||||
Net Reserves | ||||||||||||||||||||
Oil/Condensate – Mbbl | 403,244 | 298,628 | 701,872 | |||||||||||||||||
Plant Products – Mbbl | 175,771 | 91,472 | 267,243 | |||||||||||||||||
Gas – MMcf | 991,419 | 496,195 | 1,487,614 | |||||||||||||||||
MBOE | 744,252 | 472,799 | 1,217,051 | |||||||||||||||||
Income Data ($M) | ||||||||||||||||||||
Future Gross Revenue | $16,428,951 | $11,807,941 | $28,236,892 | |||||||||||||||||
Deductions | 7,919,653 | 7,125,604 | 15,045,257 | |||||||||||||||||
Future Net Income (FNI) | $8,509,298 | $4,682,337 | $13,191,635 | |||||||||||||||||
Discounted FNI @ 10% | $4,400,809 | $1,590,223 | $5,991,032 |
Discounted Future Net Income ($M) | ||||||||||||||
As of December 31, 2020 | ||||||||||||||
Discount Rate | Total | |||||||||||||
Percent | Proved | |||||||||||||
5 | $8,246,832 | |||||||||||||
15 | $4,730,425 | |||||||||||||
20 | $3,928,540 | |||||||||||||
30 | $2,967,253 |
Geographic Area | Product | Price Reference | Average Benchmark Prices | Average Realized Prices | ||||||||||
North America | ||||||||||||||
United States | Oil/Condensate | WTI Cushing | $39.57/bbl | $38.09/bbl | ||||||||||
NGLs | WTI Cushing | $39.57/bbl | $10.76/bbl | |||||||||||
Gas | Henry Hub | $1.99/MMBTU | $0.07/Mcf |
Very truly yours, | |||||||||||
RYDER SCOTT COMPANY, L.P. | |||||||||||
TBPE Firm Registration No. F-1580 | |||||||||||
/s/ Val Rick Robinson | |||||||||||
Val Rick Robinson, P.E. | |||||||||||
TBPE License No. 105137 | |||||||||||
Managing Senior Vice President | |||||||||||
[SEAL] | |||||||||||
/s/ Syed R. Rizvi | |||||||||||
Syed R. Rizvi | |||||||||||
Senior Petroleum Engineer | |||||||||||
VRR-SRR (GR)/pl |
/s/ Val Rick Robinson | /s/ Syed R. Rizvi | |||||||
Val Rick Robinson, P.E. | Syed R. Rizvi | |||||||
TBPE License No. 105137 | Senior Petroleum Engineer | |||||||
Managing Senior Vice President |
As of December 31, 2020 |
Proved | ||||||||||||||||||||
Developed | Total | |||||||||||||||||||
Producing | Undeveloped | Proved | ||||||||||||||||||
Net Reserves | ||||||||||||||||||||
Oil/Condensate – Mbbl | 40,220 | 17,310 | 57,530 | |||||||||||||||||
Plant Products – Mbbl | 16,724 | 5,229 | 21,953 | |||||||||||||||||
Gas – MMcf | 93,617 | 25,833 | 119,450 | |||||||||||||||||
MBOE | 72,547 | 26,845 | 99,392 | |||||||||||||||||
Income Data ($M) | ||||||||||||||||||||
Future Gross Revenue | $1,655,550 | $681,227 | $2,336,777 | |||||||||||||||||
Deductions | 40,396 | 17,396 | 57,792 | |||||||||||||||||
Future Net Income (FNI) | $1,615,154 | $663,831 | $2,278,985 | |||||||||||||||||
Discounted FNI @ 10% | $735,245 | $299,215 | $1,034,460 |
Discounted Future Net Income ($M) | ||||||||||||||
As of December 31, 2020 | ||||||||||||||
Discount Rate | Total | |||||||||||||
Percent | Proved | |||||||||||||
5 | $1,400,650 | |||||||||||||
15 | $834,772 | |||||||||||||
20 | $707,659 | |||||||||||||
30 | $552,728 |
Geographic Area | Product | Price Reference | Average Benchmark Prices | Average Realized Prices | ||||||||||
North America | ||||||||||||||
Oil/Condensate | WTI Cushing | $39.57/bbl | $37.61/bbl | |||||||||||
United States | NGLs | WTI Cushing | $39.57/bbl | $11.65/bbl | ||||||||||
Gas | Henry Hub | $1.99/MMBTU | $0.34/Mcf |
Very truly yours, | |||||||||||
RYDER SCOTT COMPANY, L.P. | |||||||||||
TBPE Firm Registration No. F-1580 | |||||||||||
/s/ Val Rick Robinson | |||||||||||
Val Rick Robinson, P.E. | |||||||||||
TBPE License No. 105137 | |||||||||||
Managing Senior Vice President | |||||||||||
[SEAL] | |||||||||||
/s/ Syed R. Rizvi | |||||||||||
Syed R. Rizvi | |||||||||||
Senior Petroleum Engineer | |||||||||||
VRR-SRR (GR)/pl |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 7,493 | $ 9,207 |
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) | 158,088,182 | 159,002,338 |
Shares outstanding (in Shares) | 158,088,182 | 159,002,338 |
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Statement of Cash Flows [Abstract] | ||
Common shares issued for business combination | $ 124 | $ 7,070 |
Stock options assumed in business combination | 14 | |
Restricted stock units assumed in business combinations | $ 52 |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
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. (“Diamondback” or the “Company”) is an independent oil and 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 December 31, 2020, include Diamondback E&P LLC, a Delaware limited liability company, Diamondback O&G LLC, a Delaware limited liability company, Viper Energy Partners GP LLC, a Delaware limited liability company (“Viper’s General Partner”), Rattler Midstream GP LLC, a Delaware limited liability company (“Rattler’s General Partner”), and Energen Corporation, an Alabama corporation (“Energen”). The consolidated subsidiaries include these wholly owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (“Viper”), Viper’s subsidiary Viper Energy Partners LLC, a Delaware limited liability company (“Viper LLC”), Rattler Midstream LP (formerly known as Rattler Midstream Partners LP), a Delaware limited partnership (“Rattler”), Rattler Midstream Operating LLC (formerly known as Rattler Midstream LLC), a Delaware limited liability company (“Rattler LLC”), Rattler LLC’s wholly owned subsidiaries Tall City Towers LLC, a Delaware limited liability company (“Tall City”), Rattler Ajax Processing LLC, a Delaware limited liability company, Rattler OMOG LLC, a Delaware limited liability company, Energen’s wholly owned subsidiaries Energen Resources Corporation, an Alabama corporation (“Energen Resources”), EGN Services, Inc., an Alabama corporation and Bohemia Merger Sub Inc., a Delaware corporation. Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Viper and Rattler are consolidated in the financial statements of the Company. As of December 31, 2020, the Company owned approximately 58% 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 December 31, 2020, 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. 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 includes midstream services and real estate operations. 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 ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 as the oil and natural gas industry experiences challenges resulting from negative pricing pressure from 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. Companies in the oil and natural gas industry have changed near term business plans in response to changing market conditions. The aforementioned 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 and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less and money market funds to be cash equivalents. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments. Accounts Receivable Accounts receivable consist of receivables from joint interest owners on properties the Company operates and from sales of oil and natural gas production delivered to purchasers. The purchasers remit payment for production directly to the Company. Most payments for production are received within three months after the production date. The Company adopted Accounting Standards Update (“ASU”) 2016-13 and the subsequent applicable modifications to the rule on January 1, 2020. Accounts receivable are stated at amounts due from joint interest owners or purchasers, net of an allowance for expected losses as estimated by the Company when collection is doubtful. For receivables from joint interest owners, the Company typically has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Accounts receivable from joint interest owners or purchasers outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for each type of receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for expected losses. At December 31, 2020 and 2019, the Company recorded immaterial allowances for credit losses related to joint interest receivables and credit losses related to sales of oil and natural gas production. Derivative Instruments The Company is required to recognize its derivative instruments on the consolidated balance sheets as assets or liabilities at fair value with such amounts classified as current or long-term based on their anticipated settlement dates. The accounting for the changes in fair value of a derivative depends on the intended use of the derivative and resulting designation. 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 change in fair value on derivative instruments for each period in the consolidated statements of operations. For additional information regarding the Company’s derivative instruments, see Note 15—Derivatives. Oil and Natural Gas Properties The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain internal costs, are capitalized and amortized on a composite unit of production method based on proved oil, natural gas liquids and natural gas reserves. Internal costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. Costs, including related employee costs, associated with production and operation of the properties are charged to expense as incurred. All other internal costs not directly associated with exploration and development activities are charged to expense as they are incurred. Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, natural gas liquids and natural gas. Any income from services provided by subsidiaries to working interest owners of properties in which the Company also owns an interest, to the extent they exceed related costs incurred, are accounted for as reductions of capitalized costs of oil and natural gas properties proportionate to the Company’s investment in the subsidiary. Depletion of evaluated oil and natural gas properties is computed on the units of production method, whereby capitalized costs plus estimated future development costs are amortized over total proved reserves. The average depletion rate per barrel equivalent unit of production was $11.30, $13.54 and $12.62 for the years ended December 31, 2020, 2019 and 2018, respectively. Depletion expense for oil and natural gas properties was $1.2 billion, $1.4 billion and $595 million for the years ended December 31, 2020, 2019 and 2018, respectively. Under this method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the proved oil and natural gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing 12-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded on the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash write-down is required. For additional information regarding the Company’s impairments on proved oil and natural gas properties, see Note 8—Property and Equipment. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The Company assesses all items classified as unevaluated property on at least an annual basis for possible impairment. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization. Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life and depreciation and amortization is calculated using the straight-line method over the assigned useful life. Upon acquisition of real estate properties, the purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. For additional information regarding the Company’s real estate assets, see Note 7—Real Estate Assets. Other Property, Equipment and Land Other property, equipment and land is recorded at cost. The Company expenses maintenance and repairs in the period incurred. Upon retirements or disposition of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet with the resulting gains or losses, if any, reflected in operations. Depreciation of other property and equipment is computed using the straight-line method over their estimated useful lives, which range from to 15 years. Asset Retirement Obligations The Company measures the future cost to retire its tangible long-lived assets and recognizes such cost as a liability for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction or normal operation of a long-lived asset. Asset retirement obligations represent the future abandonment costs of tangible assets, namely wells. The fair value of a liability for an asset’s retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount or if there is a change in the estimated liability, the difference is recorded in oil and natural gas properties. The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with the future plugging and abandonment of wells and related facilities. For additional information regarding the Company’s asset retirement obligations, see Note 9—Asset Retirement Obligations. Impairment of Long-Lived Assets Other property and equipment used in operations and midstream assets are reviewed whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable from its estimated future undiscounted cash flows. An impairment loss is the difference between the carrying amount and fair value of the asset. The Company had no significant impairment losses for the years ended December 31, 2020, 2019 and 2018. Capitalized Interest The Company capitalizes interest on expenditures made in connection with exploration and development projects that are not subject to current amortization. Interest is capitalized only for the period that activities are in progress to bring these unevaluated properties to their intended use. Capitalized interest cannot exceed gross interest expense. See Note 11—Debt for further details. Inventories Inventories are stated at the lower of cost or market and consist of tubular goods and equipment at December 31, 2020 and 2019. The Company’s tubular goods and equipment are primarily comprised of oil and natural gas drilling or repair items such as tubing, casing and pumping units. Debt Issuance Costs Long-term debt includes capitalized costs related to the senior notes, net of accumulated amortization. The costs associated with the senior notes are netted against the senior notes balances and are amortized over the term of the senior notes using the effective interest method. See Note 11—Debt for further details. The costs associated with the Company’s credit facilities are included in other assets on the consolidated balance sheet and are amortized over the term of the facility. Other Accrued Liabilities Other accrued liabilities consist of the following:
Revenue and Royalties Payable For certain oil and natural gas properties, where the Company serves as operator, the Company receives production proceeds from the purchaser and further distributes such amounts to other revenue and royalty owners. Production proceeds that the Company has not yet distributed to other revenue and royalty owners are reflected as revenue and royalties payable in the accompanying consolidated balance sheets. The Company recognizes revenue for only its net revenue interest in oil and natural gas properties. Non-controlling Interests Non-controlling interests in the accompanying 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. Because these changes in the ownership interests in Viper and Rattler do not result in a change of control, the transactions are accounted for as equity transactions under ASC Topic 810, “Consolidation”, which requires that any differences between the carrying value of the Company’s basis in Viper and Rattler and the fair value of the consideration received are recognized directly in equity and attributed to the controlling interest. See Note 12—Capital Stock and Earnings Per Share for a discussion of changes of the Company’s ownership interest in consolidated subsidiaries during the year ended December 31, 2020. Revenue Recognition 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. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s upstream product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligations under any of our product sales contracts. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, purchaser and settlement statements for natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the years ended December 31, 2020, 2019 and 2018 revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded. Investments An investment of less than 50% in an investee over which the Company exercises significant influence but does not have control is accounted for using the equity method. Additionally, an investment of greater than 50% in an investee over which the Company does not exercise significant influence or have control is also accounted for using the equity method. Under the equity method, the Company’s share of the investee’s earnings or loss is recognized in the consolidated statement of operations. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions, material intercompany transactions and extent of ownership by an investor in relation to the concentration of other shareholdings. Additionally, an investment in a limited liability company that maintains a specific ownership account for each investor shall be viewed as similar to an investment in a limited partnership for purposes of determining whether a noncontrolling investment shall be accounted for using the cost method or the equity method. The Company has determined it has the ability to exercise significant influence over its investments which constitute less than a 20% ownership interest, and does not have the ability to exercise significant influence over its investments which constitute greater than a 50% ownership interest, and therefore accounts for all of its investments under the equity method. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision. There were no material impairments for the Company’s equity investments for the years ended December 31, 2020, 2019 and 2018. For additional information on the Company’s investments, see Note 10—Equity Method Investments. Accounting for Equity-Based Compensation The Company has granted various types of stock-based awards including stock options and restricted stock units. Viper and Rattler have granted various unit-based awards including unit options and phantom units to employees, officers and directors of Viper’s General Partner, Rattler’s General Partner and the Company who perform services for the respective entities. These plans and related accounting policies for material awards are defined and described more fully in Note 13—Equity-Based Compensation. Equity compensation awards are measured at fair value on the date of grant and are expensed over the required service period. Forfeitures for these awards are recognized as they occur. Environmental Compliance and Remediation Environmental compliance and remediation costs, including ongoing maintenance and monitoring, are expensed as incurred. Liabilities are accrued when environmental assessments and remediation are probable, and the costs can be reasonably estimated. Income Taxes The Company uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. For additional information regarding income taxes, see Note 14—Income Taxes. Recent Accounting Pronouncements Recently Adopted Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this update effective January 1, 2020. The adoption of this update did not have a material impact on the Company’s financial position, results of operations or liquidity since it does not have a history of credit losses. Accounting Pronouncements Not Yet Adopted 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. This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company does not believe that the adoption of this update will have an impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed.
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REVENUE FROM CONTRACTS WITH CUSTOMERS |
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REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin:
Customers The Company is subject to risk resulting from the concentration of its crude oil and natural gas sales and receivables with several significant purchasers. For the year ended December 31, 2020, four purchasers each accounted for more than 10% of our revenue: Vitol Inc. (“Vitol”) (26%); Shell Trading (USA) Company (“Shell”) (22%); Plains Marketing LP (“Plains”) (20%); and Trafigura Trading LLC (11%). For the year ended December 31, 2019, three purchasers each accounted for more than 10% of the Company’s revenue: Shell (27%); Plains (23%); and Vitol (15%). For the year ended December 31, 2018, three purchasers each accounted for more than 10% of the Company’s revenue: Shell (26%); Koch Supply & Trading LP (15%); and Occidental Energy Marketing Inc. (11%). The Company does not require collateral and does not believe the loss of any single purchaser would materially impact its operating results, as crude oil and natural gas are fungible products with well-established markets and numerous purchasers.
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ACQUISITIONS AND DIVESTITURES |
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ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES 2020 Activity Viper’s Acquisition of Certain Mineral and Royalty Interests During the year ended December 31, 2020, Viper acquired, from unrelated third-party sellers, mineral and royalty interests representing 4,948 gross (417 net royalty) acres in the Permian Basin for an aggregate purchase price of approximately $64 million, subject to post-closing adjustments. Viper funded these acquisitions with cash on hand and borrowings under Viper LLC’s revolving credit facility. Pending Acquisitions See Note 18—Subsequent Events for acquisition agreements entered into in 2020 that are expected to close in 2021. 2019 Activity Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen On May 23, 2019, the Company completed its divestiture of 6,589 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in its merger with Energen (as described below), for an aggregate sale price of $37 million. This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate. On July 1, 2019, the Company completed its divestiture of 103,750 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in the merger with Energen (as described below), for an aggregate sale price of $285 million. This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate. 2019 Drop-Down Transaction On July 29, 2019, the Company entered into a definitive purchase agreement to divest certain mineral and royalty interests to Viper for approximately 18 million of Viper’s newly-issued Class B units, approximately 18 million newly-issued units of Viper LLC with a fair value of $497 million and $190 million in cash, after giving effect to closing adjustments for net title benefits (the “Drop-Down”). The mineral and royalty interests divested in the Drop-Down represent approximately 5,490 net royalty acres across the Midland and Delaware Basins, of which over 95% are operated by the Company, and have an average net royalty interest of approximately 3.2% (the “Drop-Down Assets”). The Drop-Down closed on October 1, 2019 and was effective as of July 1, 2019. Viper funded the cash portion of the purchase price of the Drop-Down Assets through a combination of cash on hand and borrowings under Viper LLC’s revolving credit facility. 2018 Activity Tall City Towers LLC On January 31, 2018, Tall City, a subsidiary of the Company, completed its acquisition of the Fasken Center office buildings in Midland, TX where the Company’s corporate offices are located for a net purchase price of $110 million. Ajax Resources, LLC On October 31, 2018, the Company completed its acquisition of leasehold interests and related assets of Ajax Resources, LLC, which included approximately 25,493 net leasehold acres in the Northern Midland Basin, for $900 million in cash and approximately 2.6 million shares of the Company’s common stock (the “Ajax acquisition”). This transaction was effective as of July 1, 2018. The cash portion of this transaction was funded through a combination of cash on hand, proceeds from the sale of mineral interests to Viper (described below under the caption “2018 Drop-Down Transaction”), borrowing under the Company’s revolving credit facility and a portion of the proceeds from the Company’s September 2018 senior note offering. See Note 11—Debt for information relating to this offering. 2018 Drop-down Transaction On August 15, 2018, the Company completed a transaction to sell Viper mineral interests underlying 32,424 gross (1,696 net royalty) acres primarily in Pecos County, Texas, in the Permian Basin, approximately 80% of which are operated by the Company, for $175 million. ExL Petroleum Management, LLC and EnergyQuest II LLC On October 31, 2018, the Company completed its acquisitions of leasehold interests and related assets, one with ExL Petroleum Management, LLC and ExL Petroleum Operating, Inc. and one with EnergyQuest II LLC, for an aggregate of approximately 3,646 net leasehold acres in the Northern Midland Basin for a total of $313 million in cash. These transactions were effective as of August 1, 2018 and were funded through a combination of cash on hand, proceeds from the sale of assets to Viper and borrowing under the Company’s revolving credit facility. Energen Corporation Merger On November 29, 2018, the Company completed its acquisition of Energen in an all-stock transaction (the “Merger”), which was accounted for as a business combination. Upon completion of the Merger, the addition of Energen’s assets increased the Company’s assets to: (i) over 273,000 net Tier One acres in the Permian Basin, (ii) approximately 7,200 estimated total net horizontal Permian locations, and (iii) approximately 394,000 net acres across the Midland and Delaware Basins. Under the terms of the Merger, each share of Energen common stock was converted into 0.6442 of a share of the Company’s common stock. The Company issued approximately 62.8 million shares of its common stock valued at a price of $112.00 per share on the closing date, resulting in total consideration paid by the Company to the former Energen shareholders of approximately $7.1 billion. In connection with the closing of the Merger, the Company repaid outstanding principal under Energen’s revolving credit facility and assumed all of Energen’s long-term debt. See Note 11—Debt for additional information. Purchase Price Allocation The Merger has been accounted for as a business combination, using the acquisition method. The following table represents the allocation of the total purchase price of Energen to the identifiable assets acquired and the liabilities assumed based on the fair values at the acquisition date resulting in no goodwill or bargain purchase gain. The following table sets forth the Company’s purchase price allocation:
The Company has included revenues of $102 million and direct operating expenses of $17 million in its consolidated statements of operations for the period from December 1, 2018 to December 31, 2018 due to the acquisition. Pro Forma Financial Information The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the years ended December 31, 2018 and 2017 have been prepared to give effect to the Merger as if it had occurred on January 1, 2017. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for Energen’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 (i) the Company’s common stock issued to convert Energen’s outstanding shares of common stock and equity awards as of the closing date of the Merger, (ii) the depletion of Energen’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments. Additionally, pro forma earnings were adjusted to exclude acquisition-related costs incurred by the Company of approximately $37 million for the year ended December 31, 2018 and acquisition-related costs incurred by Energen of $59 million. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by the Company to integrate the Energen 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. The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2017 and is not intended to be a projection of future results.
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VIPER ENERGY PARTNERS LP |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
VIPER ENERGY PARTNERS LP | VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback to, among other things, own, acquire and exploit oil and natural gas properties in the Permian Basin in North America. During the years ended December 31, 2020, 2019, and 2018, Diamondback received distributions of $62 million, $133 million and $155 million, respectively, in respect of its interests in Viper and Viper LLC. Viper completed the following equity offerings during the years ended December 31, 2019 and 2018:
There were no equity offerings during the year ended December 31, 2020. The Company’s ownership percentage in Viper is reflected as a non-controlling interest in the consolidated financial statements of Viper. The Company’s ownership percentage in Viper changes as a result of Viper’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on its units. These changes in ownership percentage and the disproportionate allocation of net income to the Company under Viper’s partnership agreement for a set period of time following Viper’s tax status change result in the difference between the Company’s share of the underlying net book value in Viper before and after the respective Partnership common unit transactions. See Note 12—Capital Stock and Earnings Per Share for further details. Recapitalization, Tax Status Election and Related Transactions by Viper In March 2018, the Board of Directors of Viper’s General Partner unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 Viper (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of the Operating Company, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, the General Partner and the Operating Company. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of the Operating Company pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, Viper continued to be the managing member of the Operating Company, with sole control of its operations. The Operating Company units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). On May 10, 2018, in connection with the change in Viper’s income tax status becoming effective, the Company, among other things, exchanged 731,500 Class B units and 731,500 units in the Operating Company for 731,500 common units of Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through the Operating Company, which continues to be taxed as a partnership for federal and state income tax purposes. The Company is party to a partnership agreement and tax sharing agreement with Viper which govern the reimbursement of various expenses and state, local and other taxes, respectively. No significant transactions occurred under these agreements during the years ended December 31, 2020, 2019 and 2018. Implementation of Viper’s Common Unit Repurchase Program On November 6, 2020, the board of directors of Viper’s general partner approved an expansion of Viper’s return of capital program with the implementation of a common unit repurchase program to acquire up to $100 million of Viper’s outstanding common units through December 31, 2021. During the year ended December 31, 2020, Viper repurchased approximately $24 million of its common units under its repurchase program. As of December 31, 2020, $76 million remained available for use to repurchase Viper’s common units under its common unit repurchase program. Viper LLC’s Revolving Credit Facility Viper has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, (“Wells Fargo”) as administrative agent sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility. RATTLER MIDSTREAM LPRattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly owned subsidiary of Diamondback, serves as the general partner of Rattler. As of December 31, 2020, Diamondback owned approximately 72% of Rattler’s total units outstanding. Prior to the completion of Rattler’s initial public offering (the “Rattler Offering”) in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of the Rattler Offering, Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. The Company is party to a partnership agreement, services and secondment agreement and tax sharing agreement with Rattler which govern the reimbursement of various expenses and state, local and other taxes, respectively. No significant transactions occurred under these agreements during the years ended December 31, 2020, 2019 and 2018. Implementation of Rattler’s Common Unit Repurchase Program On October 29, 2020, the board of directors of Rattler’s general partner approved a common unit repurchase program to acquire up to $100 million of Rattler’s outstanding common units through December 31, 2021. During the year ended December 31, 2020, Rattler repurchased approximately $15 million of its common units under its repurchase program. As of December 31, 2020, $85 million remained available for use to repurchase common units under Rattler’s common unit repurchase program. Rattler LLC’s Revolving Credit Facility Rattler LLC has entered into a secured revolving credit facility with Wells Fargo, as administrative agent, sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility.
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RATTLER MIDSTREAM LP |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RATTLER MIDSTREAM LP | VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback to, among other things, own, acquire and exploit oil and natural gas properties in the Permian Basin in North America. During the years ended December 31, 2020, 2019, and 2018, Diamondback received distributions of $62 million, $133 million and $155 million, respectively, in respect of its interests in Viper and Viper LLC. Viper completed the following equity offerings during the years ended December 31, 2019 and 2018:
There were no equity offerings during the year ended December 31, 2020. The Company’s ownership percentage in Viper is reflected as a non-controlling interest in the consolidated financial statements of Viper. The Company’s ownership percentage in Viper changes as a result of Viper’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on its units. These changes in ownership percentage and the disproportionate allocation of net income to the Company under Viper’s partnership agreement for a set period of time following Viper’s tax status change result in the difference between the Company’s share of the underlying net book value in Viper before and after the respective Partnership common unit transactions. See Note 12—Capital Stock and Earnings Per Share for further details. Recapitalization, Tax Status Election and Related Transactions by Viper In March 2018, the Board of Directors of Viper’s General Partner unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 Viper (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of the Operating Company, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, the General Partner and the Operating Company. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of the Operating Company pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, Viper continued to be the managing member of the Operating Company, with sole control of its operations. The Operating Company units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). On May 10, 2018, in connection with the change in Viper’s income tax status becoming effective, the Company, among other things, exchanged 731,500 Class B units and 731,500 units in the Operating Company for 731,500 common units of Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through the Operating Company, which continues to be taxed as a partnership for federal and state income tax purposes. The Company is party to a partnership agreement and tax sharing agreement with Viper which govern the reimbursement of various expenses and state, local and other taxes, respectively. No significant transactions occurred under these agreements during the years ended December 31, 2020, 2019 and 2018. Implementation of Viper’s Common Unit Repurchase Program On November 6, 2020, the board of directors of Viper’s general partner approved an expansion of Viper’s return of capital program with the implementation of a common unit repurchase program to acquire up to $100 million of Viper’s outstanding common units through December 31, 2021. During the year ended December 31, 2020, Viper repurchased approximately $24 million of its common units under its repurchase program. As of December 31, 2020, $76 million remained available for use to repurchase Viper’s common units under its common unit repurchase program. Viper LLC’s Revolving Credit Facility Viper has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, (“Wells Fargo”) as administrative agent sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility. RATTLER MIDSTREAM LPRattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly owned subsidiary of Diamondback, serves as the general partner of Rattler. As of December 31, 2020, Diamondback owned approximately 72% of Rattler’s total units outstanding. Prior to the completion of Rattler’s initial public offering (the “Rattler Offering”) in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of the Rattler Offering, Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. The Company is party to a partnership agreement, services and secondment agreement and tax sharing agreement with Rattler which govern the reimbursement of various expenses and state, local and other taxes, respectively. No significant transactions occurred under these agreements during the years ended December 31, 2020, 2019 and 2018. Implementation of Rattler’s Common Unit Repurchase Program On October 29, 2020, the board of directors of Rattler’s general partner approved a common unit repurchase program to acquire up to $100 million of Rattler’s outstanding common units through December 31, 2021. During the year ended December 31, 2020, Rattler repurchased approximately $15 million of its common units under its repurchase program. As of December 31, 2020, $85 million remained available for use to repurchase common units under Rattler’s common unit repurchase program. Rattler LLC’s Revolving Credit Facility Rattler LLC has entered into a secured revolving credit facility with Wells Fargo, as administrative agent, sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility.
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REAL ESTATE ASSETS |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REAL ESTATE ASSETS | REAL ESTATE ASSETS In conjunction with Diamondback’s acquisition of the Fasken Center, the Company allocated the $110 million purchase price between real estate assets and an insignificant amount of intangible lease assets related to in-place and above-market leases. The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of Diamondback’s real estate assets:
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes the following:
Capitalized internal costs were approximately $53 million, $49 million and $29 million for the years ended December 31, 2020, 2019 and 2018, respectively. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The inclusion of the Company’s unevaluated costs into the amortization base is expected to be completed within five years. As a result of the decline in commodity prices during 2020, the Company recorded a non-cash ceiling test impairment for the year ended December 31, 2020 of $6.0 billion which is included in accumulated depletion, depreciation, amortization and impairment on the consolidated balance sheet. The impairment charge affected the Company’s reported net income but did not reduce its cash flow. 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 trailing 12-month commodity prices continue to fall as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. The Company also recorded a non-cash ceiling test impairment on proved oil and natural gas properties of $790 million for the year ended December 31, 2019. No such impairment was recorded for the year ended December 31, 2018. Given the rate of change impacting the oil and natural gas industry described above, 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. At December 31, 2020, there were $85 million in exploration costs and development costs and $51 million in capitalized interest that are not subject to depletion. At December 31, 2019, there were $228 million in exploration costs and development costs and $118 million capitalized interest that are not subject to depletion.
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ASSET RETIREMENT OBLIGATIONS |
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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:
(1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s consolidated balance sheets. The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance.
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EQUITY METHOD INVESTMENTS |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS At December 31, 2020 and 2019, Rattler had the following investments:
The following summarizes the income (loss) of equity method investees for the periods presented:
On February 1, 2019, Rattler LLC acquired a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which owns and operates a pipeline (the “EPIC pipeline”) that transports crude oil and natural gas liquids across Texas for delivery into the Corpus Christi market. The EPIC pipeline became fully operational in April 2020. On February 15, 2019, Rattler LLC acquired a 10% equity interest in Gray Oak Pipeline, LLC (“Gray Oak”), which owns and operates a pipeline (the “Gray Oak pipeline”) that transports crude oil from the Permian to Corpus Christi on the Texas Gulf Coast. The Gray Oak pipeline became fully operational in April 2020. On March 29, 2019, Rattler LLC executed a short-term promissory note to Gray Oak. The note allowed for borrowing by Gray Oak of up to $123 million at a 2.52% interest rate with a maturity date of March 31, 2022. The short-term promissory note was repaid on May 31, 2019 and was terminated in the third quarter of 2020. On July 30, 2019, Rattler LLC joined Wink to Webster Pipeline LLC as a 4% member, together with affiliates of ExxonMobil, Plains All American Pipeline, Delek US, MPLX LP and Lotus Midstream. The joint venture is developing a crude oil pipeline with origin points at Wink and Midland in the Permian Basin and delivery points at multiple Houston area locations (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. Upon completion, this pipeline will be capable of transporting approximately 1,500,000 Bbl/d. On October 1, 2019, Rattler LLC acquired a 60% equity interest in OMOG JV LLC (“OMOG”). On November 7, 2019, OMOG acquired 100% of Reliance Gathering, LLC which owns and operates a crude oil gathering system in the Permian and was renamed as Oryx Midland Oil Gathering LLC following the acquisition. While Rattler’s equity interest is 60%, the investment is accounted for as an equity method investment as Rattler does not control operating activities and substantive participating rights exist with the controlling minority investor. On December 20, 2019, Rattler LLC acquired a 50% equity interest in Amarillo Rattler LLC, which currently owns and operates the Yellow Rose gas gathering and processing system with estimated total processing capacity of 40,000 Mcf/d and over 84 miles of gathering and regional transportation pipelines in Dawson, Martin and Andrews Counties, Texas. This joint venture also intends to construct and operate a new 60,000 Mcf/d cryogenic natural gas processing plant in Martin County, Texas, as well as incremental gas gathering and compression and regional transportation pipelines. However, development of the new processing plant has been postponed pending a recovery in commodity prices and activity levels. The Company has contracted for up to 30,000 Mcf/d of the capacity of the new processing plant pursuant to a gas gathering and processing agreement entered into with the joint venture in exchange for the Company’s dedication of certain leasehold interests to that agreement. While Rattler’s equity interest is 50%, the investment is accounted for as an equity method investment as Rattler does not control operating activities and substantive participating rights exist with the controlling investor. Rattler reviews its investments to determine if a loss in value which is other than temporary has occurred. If such a loss has occurred, Rattler recognizes an impairment provision. No significant impairments were recorded for Rattler’s equity method investments for the year ended December 31, 2020, 2019 or 2018. Rattler’s investees all serve customers in the oil and natural gas industry, which has been experiencing economic challenges as described above. It is possible that prolonged industry challenges could result in circumstances requiring impairment testing, which could result in potentially material impairment charges in future interim periods.
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DEBT | DEBT The Company’s debt consisted of the following as of the dates indicated:
(1) Each of these revolving credit facilities matures on November 1, 2022. (2) The Rattler revolving credit facility matures on May 28, 2024. Debt maturities as of December 31, 2020, excluding debt issuance costs, premiums and discounts, are as follows:
Diamondback Notes May 2020 Notes Offering On May 26, 2020, the Company completed a notes offering of $500 million in aggregate principal amount of its 4.750% Senior Notes due 2025 (the “May 2020 Notes”). Interest on the May 2020 Notes accrues from May 26, 2020, and is payable in cash semi-annually on May 31 and November 30 of each year, beginning November 30, 2020. The May 2020 Notes mature on May 31, 2025. The Company received net proceeds of approximately $496 million from the offering of the May 2020 Notes. The May 2020 Notes are the Company’s senior unsecured obligations and are guaranteed by Diamondback O&G LLC (the “Guarantor”), but are not guaranteed by any of the Company’s other subsidiaries. The May 2020 Notes are senior in right or payment to any of the Company’s and the Guarantor’s future subordinated indebtedness and rank equal in right of payment with all of the Company’s and the Guarantor’s existing and future senior indebtedness. The May 2020 Notes are effectively subordinated to the Company’s and the Guarantor’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 the Guarantor. 4.750% Senior Notes On October 28, 2016, the Company issued $500 million in aggregate principal amount of 4.750% senior notes due 2024 (“4.750% senior notes”), under an indenture among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee. On September 25, 2018, the Company issued $750 million aggregate principal amount of new 4.750% senior notes as additional notes under, and subject to the terms of, the same indenture governing the 4.750% senior notes. On December 20, 2019, the Company redeemed all of the outstanding 4.750% senior notes, which included $1.25 billion of aggregate outstanding principal at a redemption price of 103.563% plus accrued and unpaid interest on the outstanding principal amount to the Redemption Date, resulting in a loss on extinguishment of debt of $56 million. On December 5, 2019, the indenture governing the 4.750% senior notes was fully satisfied and discharged and the guarantors were released from their guarantees of the 4.750% senior notes. The Company funded the redemption with a portion of the net proceeds from the issuance of the December 2019 Notes. 2025 Senior Notes On December 20, 2016, the Company issued $500 million in aggregate principal amount of 5.375% senior notes due 2025, under an indenture among us, the subsidiary guarantors party thereto and Wells Fargo, as the trustee (the “2025 indenture”). On January 29, 2018, the Company issued an additional $300 million aggregate principal amount of new 5.375% senior notes due 2025 as additional notes under the 2025 indenture and received approximately $308 million in net proceeds, after deducting discounts and offering expenses, but disregarding accrued interest. The Company used these net proceeds to repay a portion of the outstanding borrowings under its revolving credit facility. Collectively, the aggregate $800 million principal amount of 5.375% senior notes due in 2025 are referred to as the 2025 senior notes. All of the 2025 senior notes will mature on May 31, 2025 and the 5.375% per annum interest is payable semi-annually, in arrears on May 31 and November 30 each year. Currently, the 2025 senior notes are not guaranteed by any of the Company’s subsidiaries other than its restricted subsidiary, Diamondback O&G LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. These notes may be guaranteed by future restricted subsidiaries. The Company may on any one or more occasions redeem some or all of the 2025 senior notes at any time on or after May 31, 2020 at the redemption prices (expressed as percentages of principal amount) of 104.031% for the 12-month period beginning on May 31, 2020, 102.688% for the 12-month period beginning on May 31, 2021, 101.344% for the 12-month period beginning on May 31, 2022 and 100.000% beginning on May 31, 2023 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. December 2019 Notes Offering On December 5, 2019, the Company issued $1.0 billion in aggregate principal amount of 2.875% senior notes due 2024 (the “2024 notes”), $800 million in aggregate principal amount of 3.250% senior notes due 2026 (the “2026 notes”), and $1.2 billion aggregate principal amount of 3.500% senior notes due 2029, (the “2029 notes” and, together with the 2024 notes and the 2026 notes, the “December 2019 Notes”). The 2024 notes will mature on December 1, 2024, the 2026 notes will mature on December 1, 2026 and the 2029 notes will mature on December 1, 2029. Interest will accrue and be payable semi-annually, in arrears on June 1 and December 1 of each year, commencing on June 1, 2020. The December 2019 Notes are fully and unconditionally guaranteed by Diamondback O&G LLC and are not guaranteed by any of the Company’s other subsidiaries. The December 2019 Notes were issued under an indenture, dated as of December 5, 2019, among the Company and Wells Fargo, as the trustee, as supplemented by the first supplemental indenture dated as of December 5, 2019 (the “December 2019 Notes Indenture”). The Company may redeem (i) the 2024 Notes in whole or in part at any time prior to November 1, 2024 (one month prior to the maturity date of the 2024 Notes), (ii) the 2026 Notes in whole or in part at any time prior to October 1, 2026 (two months prior to the maturity date of the 2026 Notes) and (iii) the 2029 Notes in whole or in part at any time prior to September 1, 2029 (three months prior to the maturity date of the 2029 Notes) (each such date, a “par call date”), in each case at the redemption price set forth in the indenture governing the December 2019 Notes. If any of the December 2019 Notes are redeemed on or after their respective par call dates, in each case, they will be redeemed at a redemption price equal to 100% of the principal amount plus interest accrued thereon up to but not including the redemption date. Upon the occurrence of a Change of Control Triggering Event (as defined in the indenture governing the December 2019 Notes), holders may require the Company to purchase some or all of their December 2019 Notes for cash at a price equal to 101% of the principal amount of the December 2019 Notes being purchased, plus accrued and unpaid interest, if any, to the date of purchase. The indenture governing the December 2019 Notes contains customary terms and covenants, including limitations on the Company’s ability and the ability of certain of its subsidiaries to incur liens securing funded indebtedness and on the Company’s ability to consolidate, merge or sell, convey, transfer or lease all or substantially all of its assets. Second Amended and Restated Credit Facility The Company and Diamondback O&G LLC, as borrower, entered into the second amended and restated credit agreement, dated November 1, 2013, as amended, with a syndicate of banks, including Wells Fargo, as administrative agent, and its affiliate Wells Fargo Securities, LLC, as sole book runner and lead arranger. On June 28, 2019, the credit agreement was amended pursuant to an eleventh amendment, which implemented certain changes to the credit facility for the period on and after the date on which our unsecured debt achieves an investment grade rating from two rating agencies and certain other conditions in the credit agreement are satisfied (the “investment grade changeover date”). On November 20, 2019, Diamondback O&G LLC caused Diamondback O&G LLC to deliver a notice as borrower under the revolving credit facility to trigger the “investment grade changeover date.” As of December 31, 2020, the maximum credit amount available under the credit agreement is $2.0 billion. As of December 31, 2020, the Company had approximately $23 million of outstanding borrowings under its revolving credit facility and $1.98 billion available for future borrowings under the revolving credit facility. As of December 31, 2020, there was an aggregate of $3 million in letters of credit outstanding under the credit agreement, which reduce available borrowings on a dollar for dollar basis. Diamondback O&G LLC is the borrower under the credit agreement and, as of December 31, 2020, the credit agreement is guaranteed by Diamondback Energy, Inc. None of the Company’s other subsidiaries are guarantors under the revolving credit facility. The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by us that is equal to the alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5%, and 3 month LIBOR plus 1.0%) or LIBOR, in each case plus the applicable margin. The applicable margin with range from 0.125% to 1.0% per annum and from 1.125% to 2.0% per annum in the case of LIBOR, in each case, depending on the pricing level, which in turn depends on the rating agencies’ rating of our unsecured debt. We are obligated to pay a quarterly commitment fee ranging from 0.125% to 0.350% per year on the unused portion of the commitment, based on the pricing level, which in turn depends on the rating agencies’ rating of our unsecured debt. The weighted average interest rates on the credit facility were 2.02%, 4.10% and 3.75% for the years ended December 31, 2020, 2019 and 2018, respectively. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage). Loan principal is required to be repaid (a) to the extent the loan amount exceeds the commitment due to any termination or reduction of the aggregate maximum credit amount and (b) at the maturity date of November 1, 2022. The credit agreement contains a financial covenant that requires us to maintain a Total Net Debt to Capitalization Ratio (as defined in the credit agreement) of no more than 65%. Our non-guarantor restricted subsidiaries may incur debt for borrowed money in an aggregate principal amount up to 15% of consolidated net tangible assets (as defined in the credit agreement) and we and our restricted subsidiaries may incur liens if the aggregate amount of debt secured by such liens does not exceed 15% of consolidated net tangible assets. As of December 31, 2020 and 2019, the Company was in compliance with all financial maintenance covenants under the revolving credit facility, as then in effect. The lenders may accelerate all of the indebtedness under the revolving credit facility upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. Energen Notes At the effective time of the Merger, Energen became the Company’s wholly owned subsidiary and remained the issuer of an aggregate principal amount of $530 million in notes (the “Energen Notes”), issued under an indenture dated September 1, 1996 with The Bank of New York as Trustee (the “Energen Indenture”). As of December 31, 2020, the aggregate principal amount of the Energen Notes had been reduced to $311 million, consisting of: (1) $191 million aggregate principal amount of 4.625% senior notes due on September 1, 2021, (2) $100 million of 7.125% notes due on February 15, 2028 and (3) $20 million of 7.32% notes due on July 28, 2022. The Company used the net proceeds from the offering of May 2020 Notes, among other things, to make an equity contribution to Energen to purchase $209 million in previously outstanding aggregate principal amount of Energen’s 4.625% senior notes pursuant to a tender offer. During the third quarter of 2020, the Company repurchased $10 million in principal amount of the outstanding Energen 7.35% medium-term notes due on July 28, 2027 at a price of 120% of the aggregate principal amount, which resulted in an immaterial loss on extinguishment of debt. The Energen Notes are the senior unsecured obligations of Energen and, post-merger, Energen, as a wholly owned subsidiary, continues to be the sole issuer and obligor under the Energen Notes. The Energen Notes rank equally in right of payment with all other senior unsecured indebtedness of Energen if any, and are effectively subordinated to Energen’s senior secured indebtedness, if any, to the extent of the value of the collateral securing such indebtedness. None of the Company’s other subsidiaries guarantee the Energen Notes. The Energen Indenture contains certain covenants that, subject to certain exceptions and qualifications, limit Energen’s ability to incur or suffer to exist liens, to enter into sale and leaseback transactions, to consolidate with or merge into any other entity, and to convey, transfer or lease its properties and assets substantially as an entirety to any person or entity. The Energen Indenture not include a restriction on the payment of dividends. On November 29, 2018, Energen guaranteed the Company’s indebtedness under its credit facility and granted a lien on certain of its assets to secure such indebtedness, and on December 21, 2018, Energen’s subsidiaries guaranteed the Company’s indebtedness under its credit agreement and granted liens on certain of their assets to secure such indebtedness. Viper’s Credit Agreement On July 20, 2018, Viper LLC, as borrower, entered into an amended and restated credit agreement with Viper, as guarantor, Wells Fargo, as administrative agent, and the other lenders. The credit agreement, as amended (the “Viper credit agreement”), provides for a revolving credit facility in the maximum credit amount of $2.0 billion and a borrowing base based on Viper LLC’s oil and natural gas reserves and other factors (the “borrowing base”) of $580 million, subject to scheduled semi-annual and other elective borrowing base redeterminations. The borrowing base is scheduled to be re-determined semi-annually with effective dates of May 1st and November 1st. In addition, Viper LLC and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12-month period. The borrowing base was reaffirmed at $580 million by the lenders during the regularly scheduled (semi-annual) fall 2020 redetermination in November 2020. As of December 31, 2020, Viper LLC had $84 million of outstanding borrowings and $496 million available for future borrowings under the Viper credit agreement. The weighted average interest rates on borrowings under the Viper credit agreement were 2.20%, 4.51%, and 4.37% for the years ended December 31, 2020, 2019 and 2018, respectively. The outstanding borrowings under the Viper credit agreement bear interest at a per annum rate elected by Viper LLC that is equal to an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5% and 3-month LIBOR plus 1.0%) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.75% to 1.75% per annum in the case of the alternate base rate and from 1.75% to 2.75% per annum in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the lesser of the maximum credit amount and the borrowing base. Viper LLC is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (i) to the extent the loan amount exceeds the commitment or the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (ii) in an amount equal to the net cash proceeds from the sale of property when a borrowing base deficiency or event of default exists under the credit agreement and (iii) at the maturity date of November 1, 2022. The loan is secured by substantially all of the assets of Viper and Viper LLC. The Viper credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below.
The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $1.0 billion in the form of senior unsecured notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. As of December 31, 2020, Viper LLC was in compliance with all financial maintenance covenants under the Viper credit agreement, as then in effect. The lenders may accelerate all of the indebtedness under the Viper credit agreement upon the occurrence and during the continuance of any event of default. The Viper credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. With certain specified exceptions, the terms and provisions of the credit agreement generally may be amended with the consent of the lenders holding a majority of the outstanding loans or commitments to lend. Viper’s Notes On October 16, 2019, Viper completed an offering in which it issued its 5.375% Senior Notes due 2027 in aggregate principal amount of $500 million (the “Viper Notes”). Viper received gross proceeds of $500 million from the such offering, which it loaned to Viper LLC. Viper LLC paid the expenses of the offering, resulting in net proceeds of the offering of $490 million, which Viper LLC used to pay down borrowings under the Viper credit agreement. The Viper Notes were issued under an indenture, dated as of October 16, 2019, among Viper, as issuer, Viper LLC, as guarantor and Wells Fargo, as trustee (the “Viper Indenture”). Pursuant to the Viper Indenture and the Viper Notes, interest on the Viper Notes accrues at a rate of 5.375% per annum on the outstanding principal amount thereof, payable semi-annually on May 1 and November 1 of each year, commencing on May 1, 2020. The Viper Notes will mature on November 1, 2027. During the year ended December 31, 2020, Viper repurchased $20 million of outstanding principal of the Viper notes at a cash price ranging from 97.5% to 98.5% of the aggregate principal amount, which resulted in an immaterial gain on extinguishment of debt, and $480 million in aggregate principal amount remained outstanding at December 31, 2020. Viper LLC guarantees the Viper Notes pursuant to the Viper Indenture. Neither the Company nor any of its other subsidiaries guarantee the Viper Notes. The Viper Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit Viper’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness or issue certain redeemable or preferred equity, make certain investments, declare or pay dividends or make distributions on equity interests or redeem, repurchase or retire equity interests or subordinated indebtedness, transfer or sell assets, agree to payment restrictions affecting its restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens and designate certain of its subsidiaries as unrestricted subsidiaries. These covenants are subject to numerous exceptions, some of which are material. Certain of these covenants are subject to termination upon the occurrence of certain events. Rattler’s Credit Agreement In connection with the Rattler Offering, Rattler, as parent, and Rattler LLC, as borrower, entered into a credit agreement, dated May 28, 2019, with Wells Fargo, as administrative agent, and a syndicate of banks, as lenders party thereto (the “Rattler credit agreement”). The Rattler credit agreement provides for a revolving credit facility in the maximum credit amount of $600 million. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid at the maturity date of May 28, 2024. The Rattler credit agreement is guaranteed by Rattler, Tall City, Rattler OMOG LLC and Rattler Ajax Processing LLC. As of December 31, 2020, Rattler LLC had $79 million of outstanding borrowings and $521 million available for future borrowings under the Rattler credit agreement. The weighted average interest rates on borrowings under the Rattler credit agreement were 2.10% and 3.13% for the years ended December 31, 2020 and 2019, respectively. The outstanding borrowings under the Rattler credit agreement bear interest at a per annum rate elected by Rattler LLC that is based on the prime rate or LIBOR, in each case plus an applicable margin. The applicable margin ranges from 0.250% to 1.250% per annum for prime-based loans and 1.250% to 2.250% per annum for LIBOR loans, in each case depending on the Consolidated Total Leverage Ratio (as defined in the Rattler credit agreement). Rattler LLC is obligated to pay a quarterly commitment fee ranging from 0.250% to 0.375% per annum on the unused portion of the commitment, which fee is also dependent on the Consolidated Total Leverage Ratio. The Rattler credit agreement contains various affirmative and negative covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, distributions and other restricted payments, transactions with affiliates, and entering into certain swap agreements, in each case of Rattler, Rattler LLC and their restricted subsidiaries. The covenants are subject to exceptions set forth in the Rattler credit agreement, including an exception allowing Rattler LLC or Rattler to issue unsecured debt securities and an exception allowing payment of distributions if no default exists. The Rattler credit agreement may be used to fund capital expenditures, to finance working capital, for general company purposes, to pay fees and expenses related to the credit agreement, and to make distributions permitted under the Rattler credit agreement. The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below:
As of December 31, 2020, Rattler LLC was in compliance with all financial maintenance covenants under the Rattler credit agreement. The lenders may accelerate all of the indebtedness under the Rattler credit agreement upon the occurrence and during the continuance of any event of default. The Rattler credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change in control. Rattler’s Notes On July 14, 2020, Rattler completed an offering of $500 million in aggregate principal amount of its 5.625% Senior Notes due 2025, (the “Rattler Notes”). The Rattler Notes mature on July 15, 2025, and interest on the Rattler Notes is payable on January 15 and July 15 of each year, beginning on January 15, 2021. Rattler received net proceeds of approximately $490 million from the Rattler Notes and loaned the gross proceeds to Rattler LLC to repay then outstanding borrowings under the Rattler Credit Agreement. The Rattler Notes are senior unsecured obligations of Rattler, rank equally in right of payment with all of Rattler’s existing and future senior indebtedness and initially are guaranteed on a senior unsecured basis by Rattler LLC, Tall City, Rattler OMOG LLC and Rattler Ajax Processing LLC. Neither the Company nor Rattler’s General Partner guarantee the Rattler Notes. In the future, each of Rattler’s restricted subsidiaries that either (1) guarantees any of its or a guarantor’s other indebtedness or (2) is classified as a domestic restricted subsidiary under the indenture governing the Rattler Notes and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Rattler Notes. The indenture under which the Rattler Notes were issued contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit Rattler’s ability and the ability of its restricted subsidiaries to incur or guarantee additional indebtedness or issue certain redeemable or preferred equity, make certain investments, declare or pay dividends or make distributions on equity interests or redeem, repurchase or retire equity interests or subordinated indebtedness, transfer or sell assets, agree to payment restrictions affecting its restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens and designate certain of its subsidiaries as unrestricted subsidiaries. These covenants are subject to numerous exceptions, some of which are material. Certain of these covenants are subject to termination upon the occurrence of certain events. Alliance with Obsidian Resources, L.L.C. 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. Funds managed by CEMOF and its affiliates have agreed to commit to funding certain costs out of CEMOF’s net production revenue and, for a period of time, to the extent not funded by such revenue, up to an additional $300 million, to fund drilling programs on locations provided by the Company. Subject to adjustments depending on asset characteristics and return expectations of the selected drilling plan, CEMOF will fund up to 85% of the costs associated with new wells drilled under the DrillCo Agreement and is expected to receive an 80% working interest in these wells until it reaches certain payout thresholds equal to a cumulative 9% and then 13% internal rate of return. Upon reaching the final internal rate of return target, CEMOF’s interest will be reduced to 15%, while the Company’s interest will increase to 85%. As of December 31, 2020, the amount due to CEMOF related to this alliance was $79 million. As of December 31, 2020, fifteen joint wells have been drilled and completed. Interest expense The following amounts have been incurred and charged to interest expense for the years ended December 31, 2020, 2019 and 2018:
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CAPITAL STOCK AND EARNINGS PER SHARE |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STOCK AND EARNINGS PER SHARE | CAPITAL STOCK AND EARNINGS PER SHARE The Company did not complete any equity offerings during the years ended December 31, 2020, 2019 and 2018. Viper Equity Offerings For information regarding Viper’s completed equity offerings during the years ended December 31, 2019 and 2018, refer to Note 5—Viper Energy Partners LP. Rattler’s Initial Public Offering For information regarding Rattler’s initial public offering during the year ended December 31, 2019, refer to Note 6—Rattler Midstream LP. Stock Repurchase Program In May 2019, the Company’s board of directors approved a stock repurchase program to acquire up to $2 billion of the Company’s outstanding common stock through December 31, 2020. Purchases under the repurchase program were made from time to time in open market or privately negotiated transactions, and were subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program did not require the Company to acquire any specific number of shares. During the years ended December 31, 2020 and 2019, the Company repurchased $98 million and $598 million, respectively, of its common stock under the repurchase program. The repurchase program was suspended beginning in the first quarter of 2020 and expired on December 31, 2020. Earnings 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:
(1) For the year ended December 31, 2020, there were 696,223 potential common shares excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive due to recording a net loss. Change in Ownership of Consolidated Subsidiaries The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period:
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EQUITY-BASED COMPENSATION |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY-BASED COMPENSATION | EQUITY-BASED COMPENSATION The following table presents the effects of the equity and stock based compensation plans and related costs:
Restricted Stock Units Under the Equity Plan, approved by the Board of Directors, the Company is authorized to issue restricted stock and restricted stock units to eligible employees. The Company 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 following table presents the Company’s restricted stock awards and units activity under the Equity Plan during the year ended December 31, 2020:
The aggregate fair value of restricted stock units that vested during the years ended December 31, 2020, 2019 and 2018 was $25 million, $45 million and $19 million, respectively. As of December 31, 2020, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $41 million. Such cost is expected to be recognized over a weighted-average period of 2.3 years. During the year ended December 31, 2020, the Company modified an insignificant amount of restricted stock units to include dividend equivalent rights during the vesting period which did not result in any incremental compensation costs. Performance-Based Restricted Stock Units To provide long-term incentives for executive officers to deliver competitive returns to the Company’s stockholders, the Company has granted performance-based restricted stock units to eligible employees. The ultimate number of shares awarded from these conditional restricted stock units is based upon measurement of total stockholder return of the Company’s common stock (“TSR”) as compared to a designated peer group during a -year performance period. In February 2018, eligible employees received performance restricted stock unit awards totaling 117,423 units from which a minimum of 0% and a maximum of 200% units could be awarded based upon the TSR during the performance period of January 1, 2018 to December 31, 2020, subject to continued employment. All remaining awards under this grant cliff vested at December 31, 2020. 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% units could be awarded based upon the TSR 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% units could be awarded based upon the TSR during the -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%. 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:
The following table presents the Company’s performance restricted stock unit activity under the Equity Plan for the year ended December 31, 2020:
(1)Includes units granted to satisfy the final payout of vested performance restricted stock units based on the TSR ranking for the performance period. (2)A maximum of 935,698 units could be awarded based upon the Company’s final TSR ranking. As of December 31, 2020, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $22 million, which is expected to be recognized over a weighted-average period of 2.1 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. The Rattler LTIP provides for the grant of unit options, unit appreciation rights, restricted units, unit awards, phantom units, distribution equivalent rights, cash awards, performance awards, other unit-based awards and substitute awards. 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 year ended December 31, 2020:
The aggregate fair value of phantom units that vested during the year ended December 31, 2020 was $9 million. As of December 31, 2020, the unrecognized compensation cost related to unvested phantom units was $30 million which is expected to be recognized over a weighted-average period of 3.2 years.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company is subject to corporate income taxes and the Texas margin tax. The Company and its subsidiaries, other than Viper, Viper LLC, Rattler and Rattler LLC, file a federal corporate income tax return on a consolidated basis. As discussed further below, Viper is a taxable entity for federal income tax purposes effective May 10, 2018, and as such files a federal corporate income tax return including the activity of its investment in Viper LLC. Subsequent to Rattler’s election to be treated as a corporation for federal income tax purposes effective May 24, 2019, Rattler is also a taxable entity and as such files a federal corporate income tax return including the activity of its investment in Rattler LLC. Viper’s and Rattler’s provision for income taxes is included in the Company’s consolidated income tax provision and, to the extent applicable, in net income attributable to the non-controlling interest. The Company’s effective income tax rates were 19.1%, 13.0% and 15.1% for the years ended December 31, 2020, 2019 and 2018, respectively. Total income tax benefit for the year ended December 31, 2020 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax loss for the period primarily due to the impact of recording a valuation allowance on Viper’s deferred tax assets, partially offset by state income taxes net of federal benefit and by tax benefit resulting from the carryback of federal net operating losses. Total income tax expense for the year ended December 31, 2019 differed from amounts computed by applying the United States federal statutory rate to pre-tax income for the period primarily due to the impact of deferred taxes recognized as a result of Viper’s change in tax status and state income taxes net of federal benefit. Total income tax expense for the year ended December 31, 2018 differed from amounts computed by applying the United States federal statutory rate to pre-tax income for the period primarily due to the impact of deferred taxes recognized as a result of Viper’s change in tax status, net income attributable to the noncontrolling interest, and state income taxes net of federal benefit. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020. This legislation included a number of provisions applicable to U.S. income taxes for corporations, including providing for carryback of certain net operating losses, accelerated refund of minimum tax credits, and modifications to the rules limiting the deductibility of business interest expense. The Company considered the impact of this legislation in the period of enactment, resulting in current income tax benefit of $62 million, offset by deferred income tax expense of $38 million, for the year ended December 31, 2020 related to the carryback of approximately $179 million of the Company’s federal net operating losses to tax years in which the corporate income tax rate was 35%. Prior to the enactment of the 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 assets associated with federal net operating loss carryforwards at the statutory 21% corporate income tax rate. As a result of the refund associated with such carryback as well as the accelerated refund available for minimum tax credits, the Company’s current federal taxes receivable totaled approximately $100 million as of December 31, 2020. The components of the Company’s consolidated provision for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 are as follows:
A reconciliation of the statutory federal income tax amount from continuing operations to the recorded expense is as follows:
The components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows:
The Company had net deferred tax liabilities of approximately $0.7 billion and $1.7 billion at December 31, 2020 and 2019, respectively. On November 29, 2018, the Company completed its acquisition of Energen. For federal income tax purposes, the acquisition was a tax-free merger whereby the Company’s tax basis in Energen assets and liabilities was unaffected by the acquisition. As of December 31, 2019, the Company had completed its purchase price allocation for the acquisition, including a deferred tax liability of $1.4 billion associated with the acquired assets. The Company incurred a tax net operating loss ("NOL") in the current year due principally to the ability to expense certain intangible drilling and development costs under current law. There is no tax refund available to the Company as a result of its loss, nor is there any current federal income tax payable. At December 31, 2020, the Company had approximately $0.4 billion of federal NOLs expiring in 2032 through 2037 and $1.9 billion of federal NOLs with an indefinite carryforward life, including NOLs acquired from Energen. The Company principally operates in the state of Texas and is subject to Texas Margin Tax, which currently does not include an NOL carryover provision. The Company’s federal tax attributes acquired from Energen are subject to an annual limitation under Section 382 of the Internal Revenue Code of 1986, as amended, which relates to tax attribute limitations upon the 50% or greater change of ownership of an entity during any three-year look back period. The Company believes that the application of Section 382 will not have an adverse effect on future usage of the Company’s NOLs and credits. In addition to the carryback of certain of the Company’s federal NOLs pursuant to the CARES Act as noted above, modifications to the rules regarding deductibility of business interest expense resulting from enactment of the CARES Act and from the issuance of final regulations by the U.S. Department of Treasury in July 2020 resulted in a reduction to carryforwards of the Company’s business interest expense and corresponding increase to its federal net operating loss carryforwards. As of December 31, 2020, the Company had a valuation allowance of $5 million primarily related to certain state NOL carryforwards which the Company does not believe are realizable as it does not anticipate future operations in those states and a valuation allowance of $161 million related to Viper’s deferred tax assets, as discussed further below. Management’s assessment at each balance sheet date included consideration of all available positive and negative evidence including the anticipated timing of reversal of deferred tax liabilities. Management believes that the balance of the Company’s NOLs are realizable to the extent of future taxable income primarily related to the excess of book carrying value of properties over their respective tax bases. As of December 31, 2020, management determined that it is more likely than not that the Company will realize its remaining deferred tax assets. As discussed further in Note 5—Viper Energy Partners LP, on March 29, 2018, Viper announced that the Board of Directors of its General Partner had unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity, which change became effective on May 10, 2018. The transactions undertaken in connection with the change in Viper’s tax status were not taxable to the Company. Subsequent to Viper’s change in tax status, Viper’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. At December 31, 2020, the Company’s net deferred tax liabilities include deferred tax assets of approximately $11 million related to Viper’s NOL carryforwards and approximately $150 million related to Viper’s investment in Viper LLC, approximately $115 million of which was recorded as a result of Viper’s change in tax status. Based on information available regarding unitholders; tax basis, Viper revised its estimate of the difference between its tax basis and its basis for financial accounting purposes in Viper LLC on the date of the tax status change, resulting in deferred income tax benefit of $42 million and $73 million included in the Company’s consolidated income tax provision for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2020, Viper had federal NOL carryforwards of approximately $50 million which may be carried forward indefinitely to offset future taxable income. As of December 31, 2020, Viper had a valuation allowance of approximately $161 million related to deferred tax assets that Viper does not believe are more likely than not to be realized. Management considers the likelihood that Viper’s NOLs and other deferred tax attributes will be utilized prior to their expiration, if applicable. 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 as required by applicable accounting standards. In light of those criteria for recognizing the tax benefit of deferred tax assets, the assessment resulted in application of a valuation allowance against Viper’s federal deferred tax assets as of March 31, 2020 and subsequent balance sheet dates within the year ended December 31, 2020. As discussed further in Note 6—Rattler Midstream LP, on May 28, 2019, Rattler completed its initial public offering. Even though Rattler is organized as a limited partnership under state law, Rattler is subject to U.S. federal and state income tax at corporate rates, subsequent to the effective date of Rattler’s election to be treated as a corporation for U.S. federal income tax purposes. As such, Rattler’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. At December 31, 2020, the Company’s net deferred tax liabilities include a deferred tax asset of approximately $58 million related to Rattler’s investment in Rattler LLC. In the second quarter of 2020, the Company recorded an increase through stockholders’ equity to the carrying value of its investment in Rattler LLC. A corresponding adjustment to the noncontrolling interest resulted in a decrease in Rattler’s deferred tax liability related to its investment in Rattler LLC and a total net deferred tax asset balance for Rattler. Rattler incurred an NOL in the current year due principally to Rattler LLC’s tax deductions for accelerated depreciation, which exceeded its other items of taxable income. At December 31, 2020, Rattler has federal net operating loss carryforwards of approximately $75 million which may be carried forward indefinitely to offset future taxable income. Management considers the likelihood that Rattler’s NOLs and other deferred tax attributes will be utilized prior to their expiration, if applicable. At December 31, 2020, Rattler’s assessment included consideration of all available positive and negative evidence, including Rattler’s projected future taxable income and the anticipated timing of reversal of deferred tax assets. As a result of the assessment, management determined that it is more likely than not that Rattler will realize its deferred tax assets as of December 31, 2020. The following table sets forth changes in the Company’s unrecognized tax benefits:
The Company recognizes the tax benefit from a tax position only if it is more likely than not that it will be sustained upon examination by the taxing authorities, based upon the technical merits of the position. During the year ended December 31, 2020, the statute of limitations related to an uncertain tax position of the Company expired, and upon expiration the Company recognized tax benefit of $0.3 million and recorded a reduction to interest expense of less than $0.1 million. The Company’s federal and state income tax returns for 2012 through the current tax year remain open and subject to examination by the IRS and major state taxing jurisdictions. Energen is currently under IRS examination of its federal consolidated income tax returns for 2014 and 2016. Accordingly, it is reasonably possible that significant changes to the reserve for uncertain tax positions may occur as a result of various audits and the expiration of the statute of limitations. Although the timing and outcome of tax examinations is highly uncertain, the Company does not expect the change in unrecognized tax benefit within the next 12 months would have a material impact to the financial statements. The Company is continuing its practice of recognizing interest and penalties related to income tax matters as interest expense and general and administrative expenses, respectively. During the years ended December 31, 2020 and 2019, there was less than $0.2 million of interest and no penalties related to each period associated with uncertain tax positions recognized in the Company’s consolidated financial statements.
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DERIVATIVES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES | DERIVATIVES All derivative financial instruments are recorded at fair value in the accompanying balance sheet. 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 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, natural gas liquids and diesel fuel 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 in our credit facility and have been deemed an acceptable credit risk. As of December 31, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed:
(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.
Interest Rate Swaps The Company currently uses interest rate swaps to reduce the Company’s exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps have not been designated as hedging instruments and as a result, the Company recognizes all changes in fair value immediately in earnings.
See Note 18—Subsequent Events for discussion of derivative transactions which occurred subsequent to December 31, 2020. Balance sheet offsetting of derivative assets and liabilities The fair value of swaps 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 16—Fair Value Measurements for further details. Gains and Losses on Derivative Instruments None of the Company’s derivatives have been designated as hedges. As such, all changes in fair value are immediately recognized in earnings. The following table summarizes the gains and losses on derivative instruments included in the consolidated statements of operations:
(1)The year ended December 31, 2020 includes cash received on commodity contracts terminated prior to their contractual maturity of $17 million. (2)The year ended December 31, 2019 includes cash received on interest rate swap contracts terminated prior to their contractual maturity of $43 million.
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FAIR VALUE MEASUREMENTS |
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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. The asset retirement obligations assumed as part of business combinations are estimated using the same assumptions and methodology as described in Note 2—Summary of Significant Accounting Policies. 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 and Viper’s investment. Viper measured its previously outstanding investment, which was included in other assets on the consolidated balance sheet at December 31, 2019, utilizing the fair value option, and as such the investment was classified as Level 1 in the fair value hierarchy. 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 consolidated balance sheets as of December 31, 2020 and December 31, 2019. The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates.
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 consolidated balance sheets:
(1)The carrying value includes associated deferred loan costs and any remaining discount or premium. The fair values of the 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 December 31, 2020 quoted market prices, a Level 1 classification in the fair value hierarchy. Fair Value of Financial AssetsThe carrying amount of cash and cash equivalents, receivables, funds held for escrow, prepaid expenses and other current assets, payables and other accrued liabilities approximate their fair value because of the short-term nature of the instruments.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is a party to various 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. Commitments The following is a schedule of minimum future payments with commitments that have initial or remaining noncancelable terms in excess of one year as of December 31, 2020:
(1)The Company has committed to transport gross quantities of crude oil on various pipelines under a variety of contracts including throughput and take-or-pay agreements. The Company’s failure to purchase the minimum level of quantities would require it to pay shortfall fees up to the amount of the original monthly commitment amounts included in the table above. (2)The Company has committed to purchase minimum quantities of sand for use in its drilling operations. Our failure to purchase the minimum level of quantities would require us to pay shortfall fees up to the commitment amounts included in the table above. (3)Rattler entered into a minimum volume commitment to purchase produced water disposal services under a 14 year agreement beginning in 2021. At December 31, 2020, the Company’s delivery commitments covered the following gross volumes of oil:
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SUBSEQUENT EVENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Announced Acquisition of QEP Resources On December 21, 2020, the Company announced a definitive agreement to acquire QEP Resources Inc. (“QEP”) in an all-stock transaction valued at $2.2 billion including QEP’s net debt of $1.6 billion as of September 30, 2020 based upon closing share prices on October 16, 2020. The consideration will consist of 0.050 shares of Diamondback common stock for each share of QEP common stock, representing an implied value to each QEP stockholder of $2.29 per share based on the closing price of Diamondback common stock on December 18, 2020. The transaction was unanimously approved by the Board of Directors of each company. The transaction is anticipated to close shortly following the special meeting of QEP Stockholders, which is scheduled for March 16, 2021, subject to QEP stockholder approval and other customary closing conditions. See Item 1A. “Risk Factors” for further discussion of risks related to the QEP acquisition. Announced Acquisition of Guidon Operating LLC On December 21, 2020, the Company announced a definitive purchase agreement to acquire all leasehold interests and related assets of Guidon Operating LLC (“Guidon”) in exchange for 10.6 million shares of Diamondback common stock and $375 million of cash. In accordance with the terms of the purchase agreement, the Company deposited $50 million into an escrow account in December 2020, which will be released to Guidon upon the closing of the transaction. The cash portion of this transaction is expected to be funded through a combination of cash on hand and borrowings under the Company’s credit facility. The transaction is anticipated to close on February 26, 2021. Fourth Quarter 2020 Dividend Declaration On February 18, 2021, the Board of Directors of the Company declared a cash dividend for the fourth quarter of 2020 of $0.40 per share of common stock, payable on March 11, 2021 to its stockholders of record at the close of business on March 4, 2021. Commodity Contracts Subsequent to December 31, 2020, the Company entered into new fixed price swaps and basis swaps, costless collars and roll hedges. 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 January 1, 2021 and February 19, 2021:
(1) The Company has fixed price basis swaps for the spread between the WTI Midland crude oil price and the NYMEX WTI crude oil price as well as the spread between the Waha Hub natural gas price and the Henry 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.
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SEGMENT INFORMATION |
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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 includes midstream services and real estate operations. All of the Company’s equity method investments are included in the midstream operations segment. The segments comprise the structure used by its Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. The following tables summarize the results of the Company's operating segments during the periods presented:
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SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) |
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Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) | SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) The Company’s oil and natural gas reserves are attributable solely to properties within the United States. Capitalized oil and natural gas costs Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion, amortization and impairment are as follows:
Costs incurred in oil and natural gas activities Costs incurred in oil and natural gas property acquisition, exploration and development activities are as follows:
Results of Operations from Oil and Natural Gas Producing Activities For revenues and expenses related to the production and sale of oil, natural gas and natural gas liquids, see the results of the Company's upstream business segment in Note 19—Segment Information. Oil and Natural Gas Reserves Proved oil and natural gas reserve estimates as of December 31, 2020, 2019 and 2018 were prepared by Ryder Scott Company, L.P., independent petroleum engineers. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon the 12-month unweighted average of the first-day-of-the-month prices. There are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. Oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. The changes in estimated proved reserves are as follows:
Revisions represent changes in previous reserves estimates, either upward or downward, resulting from new information normally obtained from development drilling and production history or resulting from a change in economic factors, such as commodity prices, operating costs or development costs. During the year ended December 31, 2020, the Company’s extensions and discoveries of 302,092 MBOE resulted primarily from the drilling of 682 new wells and from 298 new proved undeveloped locations added. Viper royalty interests accounted for 8% of the extension volumes. The Company’s downward revisions of previous estimates of 6,290 MBOE were the result of negative revisions due to lower product pricing of 54,645 MBOE, which were partially offset by positive revisions of 23,066 MBOE associated with a reduction in lease operating expenses, resulting in a total negative pricing revision of 31,579 MBOE. Downgrades of 31,074 MBOE are primarily from changes in the corporate development plan. These revisions were offset by positive performance revisions of 56,362 MBOE associated with less gas flaring and a corresponding increase in natural gas liquid recoveries. During the year ended December 31, 2019, the Company’s extensions and discoveries totaling 376,287 MBOE resulted primarily from the drilling of 283 new wells and from 291 new proved undeveloped locations added. Viper royalty interests accounted for 5% of the extension volumes. The Company’s downward revisions of 117,898 MBOE were the result of proved undeveloped downgrades associated with inventory refinement following the Energen acquisition along with updated development plans and lower realized prices. Purchases of 21,092 MBOE were the result of 10,939 MBOE of working interest purchases and 10,153 MBOE of Viper royalty purchases, excluding mineral interests dropped down to Viper. During the year ended December 31, 2018, the Company’s extensions and discoveries of 202,089 MBOE resulted primarily from the drilling of 135 new wells and from 138 new proved undeveloped locations added in which the Company owns a working interest. Viper royalty interests accounted for 10% of the extension volumes. The Company’s revisions of previous estimates were primarily the result of positive technical and performance revisions of 14,218 MBOE, upward revisions of 6,032 MBOE due to higher pricing and downward revisions of 4,815 MBOE from PUD reclassifications due to timing. Purchases of 486,992 MBOE were the result of 477,686 MBOE of working interest purchases, primarily attributable to Energen, and 9,306 MBOE of Viper royalty purchases. At December 31, 2020, the Company’s estimated PUD reserves were approximately 499,643 MBOE, a 131,784 MBOE increase over the reserve estimate at December 31, 2019 of 367,859 MBOE. The following table includes the changes in PUD reserves for 2020 (MBOE):
The increase in proved undeveloped reserves was primarily attributable to extensions of 220,023 MBOE from 277 gross (236 net) wells in which the Company has a working interest and 15,686 MBOE from 299 gross wells in which Viper owns royalty interests. Of the 277 gross working interest wells, 98 were in the Delaware Basin. Transfers of 89,133 MBOE were the result of drilling or participating in 102 gross (94 net) horizontal wells in which the Company has a working interest and 82 gross wells in which the Company has a royalty interest or mineral interest through Viper. The Company owns a working interest in 78 of the 82 gross Viper wells. Downward revisions of 15,742 MBOE were the result of (i) negative revisions of 4,226 MBOE due to lower product pricing, which were partially offset by positive revisions of 1,494 MBOE associated with a reduction in lease operating expenses, resulting in a total negative pricing revision of 2,732 MBOE, and (ii) PUD downgrades of 26,329 MBOE primarily from changes in the corporate development plan. These revisions were offset with positive performance revisions of 13,319 MBOE associated with less gas flaring and a corresponding increase in shrunk gas and natural gas liquid recoveries. As of December 31, 2020, all of the Company’s proved undeveloped reserves are planned to be developed within five years from the date they were initially recorded. During 2020, approximately $381 million in capital expenditures went toward the development of proved undeveloped reserves, which includes drilling, completion and other facility costs associated with developing proved undeveloped wells. Standardized Measure of Discounted Future Net Cash Flows The standardized measure of discounted future net cash flows is based on the unweighted average, first-day-of-the-month price. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future; development and production of the reserves may not occur in the periods assumed; actual prices realized are expected to vary significantly from those used; and actual costs may vary. The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves as of December 31, 2020, 2019 and 2018.
(1) Includes $1.0 billion, $1.3 billion, and $1.1 billion, for the years ended December 31, 2020, 2019 and 2018, respectively, attributable to the Company’s consolidated subsidiary, Viper, in which there is a 42% non-controlling interest at December 31, 2020. The table below presents the unweighted arithmetic average first-day-of–the-month price for oil, natural gas and natural gas liquids utilized in the computation of future cash inflows.
Principal changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved reserves are as follows:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of PresentationThe 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.
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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 as the oil and natural gas industry experiences challenges resulting from negative pricing pressure from 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. Companies in the oil and natural gas industry have changed near term business plans in response to changing market conditions. The aforementioned 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.
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a maturity of three months or less and money market funds to be cash equivalents. The Company maintains cash and cash equivalents in bank deposit accounts which, at times, may exceed the federally insured limits. The Company has not experienced any significant losses from such investments. |
Accounts Receivable | Accounts Receivable Accounts receivable consist of receivables from joint interest owners on properties the Company operates and from sales of oil and natural gas production delivered to purchasers. The purchasers remit payment for production directly to the Company. Most payments for production are received within three months after the production date. The Company adopted Accounting Standards Update (“ASU”) 2016-13 and the subsequent applicable modifications to the rule on January 1, 2020. Accounts receivable are stated at amounts due from joint interest owners or purchasers, net of an allowance for expected losses as estimated by the Company when collection is doubtful. For receivables from joint interest owners, the Company typically has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Accounts receivable from joint interest owners or purchasers outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for each type of receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for expected losses.
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Derivative Instruments | Derivative InstrumentsThe Company is required to recognize its derivative instruments on the consolidated balance sheets as assets or liabilities at fair value with such amounts classified as current or long-term based on their anticipated settlement dates. The accounting for the changes in fair value of a derivative depends on the intended use of the derivative and resulting designation. 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 change in fair value on derivative instruments for each period in the consolidated statements of operations. |
Oil and Natural Gas Properties | Oil and Natural Gas Properties The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain internal costs, are capitalized and amortized on a composite unit of production method based on proved oil, natural gas liquids and natural gas reserves. Internal costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. Costs, including related employee costs, associated with production and operation of the properties are charged to expense as incurred. All other internal costs not directly associated with exploration and development activities are charged to expense as they are incurred. Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, natural gas liquids and natural gas. Any income from services provided by subsidiaries to working interest owners of properties in which the Company also owns an interest, to the extent they exceed related costs incurred, are accounted for as reductions of capitalized costs of oil and natural gas properties proportionate to the Company’s investment in the subsidiary. Depletion of evaluated oil and natural gas properties is computed on the units of production method, whereby capitalized costs plus estimated future development costs are amortized over total proved reserves. The average depletion rate per barrel equivalent unit of production was $11.30, $13.54 and $12.62 for the years ended December 31, 2020, 2019 and 2018, respectively. Depletion expense for oil and natural gas properties was $1.2 billion, $1.4 billion and $595 million for the years ended December 31, 2020, 2019 and 2018, respectively. Under this method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the proved oil and natural gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing 12-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded on the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash write-down is required. For additional information regarding the Company’s impairments on proved oil and natural gas properties, see Note 8—Property and Equipment. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The Company assesses all items classified as unevaluated property on at least an annual basis for possible impairment. The Company assesses properties on an individual basis or as a group if properties are individually insignificant. The assessment includes consideration of the following factors, among others: intent to drill; remaining lease term; geological and geophysical evaluations; drilling results and activity; the assignment of proved reserves; and the economic viability of development if proved reserves are assigned. During any period in which these factors indicate an impairment, the cumulative drilling costs incurred to date for such property and all or a portion of the associated leasehold costs are transferred to the full cost pool and are then subject to amortization.
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Real Estate Assets | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Company considers the period of future benefit of each respective asset to determine the appropriate useful life and depreciation and amortization is calculated using the straight-line method over the assigned useful life. Upon acquisition of real estate properties, the purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset.
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Other Property and Equipment | Other Property, Equipment and Land Other property, equipment and land is recorded at cost. The Company expenses maintenance and repairs in the period incurred. Upon retirements or disposition of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet with the resulting gains or losses, if any, reflected in operations. Depreciation of other property and equipment is computed using the straight-line method over their estimated useful lives, which range from to 15 years.
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Asset Retirement Obligations | Asset Retirement Obligations The Company measures the future cost to retire its tangible long-lived assets and recognizes such cost as a liability for legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction or normal operation of a long-lived asset. Asset retirement obligations represent the future abandonment costs of tangible assets, namely wells. The fair value of a liability for an asset’s retirement obligation is recorded in the period in which it is incurred if a reasonable estimate of fair value can be made, and the corresponding cost is capitalized as part of the carrying amount of the related long-lived asset. The liability is accreted to its then present value each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for an amount other than the recorded amount or if there is a change in the estimated liability, the difference is recorded in oil and natural gas properties. The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with the future plugging and abandonment of wells and related facilities.
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Impairment or Long-Lived Assets | Impairment of Long-Lived Assets Other property and equipment used in operations and midstream assets are reviewed whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable from its estimated future undiscounted cash flows. An impairment loss is the difference between the carrying amount and fair value of the asset. |
Capitalized Interest | Capitalized InterestThe Company capitalizes interest on expenditures made in connection with exploration and development projects that are not subject to current amortization. Interest is capitalized only for the period that activities are in progress to bring these unevaluated properties to their intended use. Capitalized interest cannot exceed gross interest expense. |
Inventories | Inventories Inventories are stated at the lower of cost or market and consist of tubular goods and equipment at December 31, 2020 and 2019. The Company’s tubular goods and equipment are primarily comprised of oil and natural gas drilling or repair items such as tubing, casing and pumping units. |
Debt Issuance Costs | Debt Issuance Costs Long-term debt includes capitalized costs related to the senior notes, net of accumulated amortization. The costs associated with the senior notes are netted against the senior notes balances and are amortized over the term of the senior notes using the effective interest method. See Note 11—Debt for further details. The costs associated with the Company’s credit facilities are included in other assets on the consolidated balance sheet and are amortized over the term of the facility.
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Revenue and Royalties Payable | Revenue and Royalties Payable For certain oil and natural gas properties, where the Company serves as operator, the Company receives production proceeds from the purchaser and further distributes such amounts to other revenue and royalty owners. Production proceeds that the Company has not yet distributed to other revenue and royalty owners are reflected as revenue and royalties payable in the accompanying consolidated balance sheets. The Company recognizes revenue for only its net revenue interest in oil and natural gas properties. |
Non-controlling Interest | Non-controlling Interests Non-controlling interests in the accompanying 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. Because these changes in the ownership interests in Viper and Rattler do not result in a change of control, the transactions are accounted for as equity transactions under ASC Topic 810, “Consolidation”, which requires that any differences between the carrying value of the Company’s basis in Viper and Rattler and the fair value of the consideration received are recognized directly in equity and attributed to the controlling interest. See Note 12—Capital Stock and Earnings Per Share for a discussion of changes of the Company’s ownership interest in consolidated subsidiaries during the year ended December 31, 2020.
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Revenue Recognition | Revenue Recognition 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. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s upstream product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligations under any of our product sales contracts. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, purchaser and settlement statements for natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the years ended December 31, 2020, 2019 and 2018 revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded.
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Investments | Investments An investment of less than 50% in an investee over which the Company exercises significant influence but does not have control is accounted for using the equity method. Additionally, an investment of greater than 50% in an investee over which the Company does not exercise significant influence or have control is also accounted for using the equity method. Under the equity method, the Company’s share of the investee’s earnings or loss is recognized in the consolidated statement of operations. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions, material intercompany transactions and extent of ownership by an investor in relation to the concentration of other shareholdings. Additionally, an investment in a limited liability company that maintains a specific ownership account for each investor shall be viewed as similar to an investment in a limited partnership for purposes of determining whether a noncontrolling investment shall be accounted for using the cost method or the equity method. The Company has determined it has the ability to exercise significant influence over its investments which constitute less than a 20% ownership interest, and does not have the ability to exercise significant influence over its investments which constitute greater than a 50% ownership interest, and therefore accounts for all of its investments under the equity method. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision.
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Accounting for Stock-based Compensation | Accounting for Equity-Based CompensationThe Company has granted various types of stock-based awards including stock options and restricted stock units. Viper and Rattler have granted various unit-based awards including unit options and phantom units to employees, officers and directors of Viper’s General Partner, Rattler’s General Partner and the Company who perform services for the respective entities. These plans and related accounting policies for material awards are defined and described more fully in Note 13—Equity-Based Compensation. Equity compensation awards are measured at fair value on the date of grant and are expensed over the required service period. |
Environmental Compliance and Remediation | Environmental Compliance and Remediation Environmental compliance and remediation costs, including ongoing maintenance and monitoring, are expensed as incurred. Liabilities are accrued when environmental assessments and remediation are probable, and the costs can be reasonably estimated.
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Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company adopted this update effective January 1, 2020. The adoption of this update did not have a material impact on the Company’s financial position, results of operations or liquidity since it does not have a history of credit losses. Accounting Pronouncements Not Yet Adopted 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. This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company does not believe that the adoption of this update will have an impact on its financial position, results of operations or liquidity. The Company considers the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed.
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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. 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. The asset retirement obligations assumed as part of business combinations are estimated using the same assumptions and methodology as described in Note 2—Summary of Significant Accounting Policies.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other accrued liabilities | Other accrued liabilities consist of the following:
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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) |
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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:
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ACQUISITIONS AND DIVESTITURES (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated fair values of assets acquired and liabilities assumed | The following table sets forth the Company’s purchase price allocation:
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Schedule of business acquisition pro forma | The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2017 and is not intended to be a projection of future results.
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VIPER ENERGY PARTNERS LP (Tables) |
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Noncontrolling Interest [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of sale of stock | Viper completed the following equity offerings during the years ended December 31, 2019 and 2018:
There were no equity offerings during the year ended December 31, 2020.
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REAL ESTATE ASSETS (Tables) |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Assets | The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of Diamondback’s real estate assets:
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PROPERTY AND EQUIPMENT (Tables) |
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Schedule of property and equipment | Property and equipment includes the following:
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ASSET RETIREMENT OBLIGATIONS (Tables) |
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Asset retirement obligations | The following table describes the changes to the Company’s asset retirement obligations liability for the following periods:
(1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s consolidated balance sheets.
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EQUITY METHOD INVESTMENTS (Tables) |
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Equity method investments | At December 31, 2020 and 2019, Rattler had the following investments:
The following summarizes the income (loss) of equity method investees for the periods presented:
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DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | The Company’s debt consisted of the following as of the dates indicated:
(1) Each of these revolving credit facilities matures on November 1, 2022. (2) The Rattler revolving credit facility matures on May 28, 2024.
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Schedule of maturities of long-term debt | Debt maturities as of December 31, 2020, excluding debt issuance costs, premiums and discounts, are as follows:
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Financial covenants |
The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below:
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Schedule of interest expense | The following amounts have been incurred and charged to interest expense for the years ended December 31, 2020, 2019 and 2018:
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CAPITAL STOCK AND EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Schedule of change in ownership of consolidated subsidiaries | The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period:
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EQUITY-BASED COMPENSATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock-based compensation plans and related costs | The following table presents the effects of the equity and stock based compensation plans and related costs:
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Summary of restricted stock units | The following table presents the Company’s restricted stock awards and units activity under the Equity Plan during the year ended December 31, 2020:
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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:
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Schedule of performance restricted stock units activity | The following table presents the Company’s performance restricted stock unit activity under the Equity Plan for the year ended December 31, 2020:
(1)Includes units granted to satisfy the final payout of vested performance restricted stock units based on the TSR ranking for the performance period. (2)A maximum of 935,698 units could be awarded based upon the Company’s final TSR ranking.
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Schedule of phantom units activity | The following table presents the phantom unit activity under the Rattler LTIP for the year ended December 31, 2020:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of income tax provision (benefit) | The components of the Company’s consolidated provision for income taxes from continuing operations for the years ended December 31, 2020, 2019 and 2018 are as follows:
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Reconciliation of statutory federal income tax | A reconciliation of the statutory federal income tax amount from continuing operations to the recorded expense is as follows:
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Schedule of deferred tax assets and liabilities | The components of the Company’s deferred tax assets and liabilities as of December 31, 2020 and 2019 are as follows:
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Schedule of unrecognized tax benefits | The following table sets forth changes in the Company’s unrecognized tax benefits:
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DERIVATIVES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | As of December 31, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed:
(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.
The Company currently uses interest rate swaps to reduce the Company’s exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps have not been designated as hedging instruments and as a result, the Company recognizes all changes in fair value immediately in earnings.
(1) The Company has fixed price basis swaps for the spread between the WTI Midland crude oil price and the NYMEX WTI crude oil price as well as the spread between the Waha Hub natural gas price and the Henry 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. Interest Rate Swaps The following table presents the interest rate swap contracts terminated by the Company between January 1, 2021 and February 19, 2021:
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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 consolidated statements of operations:
(1)The year ended December 31, 2020 includes cash received on commodity contracts terminated prior to their contractual maturity of $17 million. (2)The year ended December 31, 2019 includes cash received on interest rate swap contracts terminated prior to their contractual maturity of $43 million.
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FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of 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 consolidated balance sheets as of December 31, 2020 and December 31, 2019. The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates.
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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 consolidated balance sheets as of December 31, 2020 and December 31, 2019. The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates.
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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 consolidated balance sheets as of December 31, 2020 and December 31, 2019. The net amounts of derivative instruments are classified as current or noncurrent based on their anticipated settlement dates.
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Schedule of 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 consolidated balance sheets:
(1)The carrying value includes associated deferred loan costs and any remaining discount or premium.
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Commitments | The following is a schedule of minimum future payments with commitments that have initial or remaining noncancelable terms in excess of one year as of December 31, 2020:
(1)The Company has committed to transport gross quantities of crude oil on various pipelines under a variety of contracts including throughput and take-or-pay agreements. The Company’s failure to purchase the minimum level of quantities would require it to pay shortfall fees up to the amount of the original monthly commitment amounts included in the table above. (2)The Company has committed to purchase minimum quantities of sand for use in its drilling operations. Our failure to purchase the minimum level of quantities would require us to pay shortfall fees up to the commitment amounts included in the table above. (3)Rattler entered into a minimum volume commitment to purchase produced water disposal services under a 14 year agreement beginning in 2021.
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Delivery Commitment | At December 31, 2020, the Company’s delivery commitments covered the following gross volumes of oil:
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SUBSEQUENT EVENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | As of December 31, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed:
(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.
The Company currently uses interest rate swaps to reduce the Company’s exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps have not been designated as hedging instruments and as a result, the Company recognizes all changes in fair value immediately in earnings.
(1) The Company has fixed price basis swaps for the spread between the WTI Midland crude oil price and the NYMEX WTI crude oil price as well as the spread between the Waha Hub natural gas price and the Henry 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. Interest Rate Swaps The following table presents the interest rate swap contracts terminated by the Company between January 1, 2021 and February 19, 2021:
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SEGMENT INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of results of the company business segments | The following tables summarize the results of the Company's operating segments during the periods presented:
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SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate capitalized costs related to oil and natural gas production activities | Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion, amortization and impairment are as follows:
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Costs incurred in oil and natural gas property acquisition, exploration, and development activities | Costs incurred in oil and natural gas property acquisition, exploration and development activities are as follows:
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Schedule of changes in estimated proved reserves | The changes in estimated proved reserves are as follows:
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Standardized measure of discounted future net cash flows attributable to proved crude oil and natural gas reserves | The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves as of December 31, 2020, 2019 and 2018.
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Average first-day-of-the-month price for oil, natural gas and natural gas liquids | The table below presents the unweighted arithmetic average first-day-of–the-month price for oil, natural gas and natural gas liquids utilized in the computation of future cash inflows.
|
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Schedule of principal changes in the standardized measure of discounted future net cash flows attributable to proved reserves | Principal changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved reserves are as follows:
|
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - segment |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
May 28, 2019 |
|
Noncontrolling Interest [Line Items] | ||
Number of business segments | 2 | |
Viper Energy Partners LP | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 58.00% | |
Rattler MIdstream LP | ||
Noncontrolling Interest [Line Items] | ||
Ownership percentage | 72.00% | 29.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Debt Instrument [Line Items] | |||
Impairment of long-lived assets | $ 0 | $ 0 | $ 0 |
Equity method investment impairment | $ 0 | $ 0 | $ 0 |
Other Property and Equipment, Net | Minimum | |||
Debt Instrument [Line Items] | |||
Estimated useful life of property and equipment | 3 years | ||
Other Property and Equipment, Net | Maximum | |||
Debt Instrument [Line Items] | |||
Estimated useful life of property and equipment | 15 years |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Oil and Natural Gas Properties, Other Property, Equipment and Land (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
$ / Boe
|
Dec. 31, 2019
USD ($)
$ / Boe
|
Dec. 31, 2018
USD ($)
$ / Boe
|
|
Property, Plant and Equipment [Line Items] | |||
Depreciation, depletion and amortization excluding amortization of financing costs | $ 1,304 | $ 1,447 | $ 623 |
Estimated future net revenue discounted rate per annum | 10.00% | ||
Impairment of oil and natural gas properties | $ 6,021 | $ 790 | $ 0 |
Oil and Gas Properties | |||
Property, Plant and Equipment [Line Items] | |||
Average depletion rate per barrel equivalent unit of production | $ / Boe | 11.30 | 13.54 | 12.62 |
Depreciation, depletion and amortization excluding amortization of financing costs | $ 1,200 | $ 1,400 | $ 595 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Accrued Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Accounting Policies [Abstract] | ||
Lease operating expenses payable | $ 115 | $ 119 |
Ad valorem taxes payable | 57 | 68 |
Interest payable | 37 | 27 |
Derivative liability payable | 30 | 3 |
Midstream operating expenses payable | 18 | 22 |
Liability for drilling costs prepaid by joint interest partners | 5 | 12 |
Other | 40 | 53 |
Total other accrued liabilities | $ 302 | $ 304 |
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 2,756 | $ 3,887 | $ 2,130 |
Midland Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,587 | 2,325 | 1,528 |
Delaware Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,161 | 1,494 | 577 |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 8 | 68 | 25 |
Oil sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2,410 | 3,554 | 1,879 |
Oil sales | Midland Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,393 | 2,139 | 1,350 |
Oil sales | Delaware Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,011 | 1,351 | 508 |
Oil sales | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 6 | 64 | 21 |
Natural gas sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 107 | 66 | 61 |
Natural gas sales | Midland Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 56 | 32 | 38 |
Natural gas sales | Delaware Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 50 | 33 | 22 |
Natural gas sales | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1 | 1 | 1 |
Natural gas liquid sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 239 | 267 | 190 |
Natural gas liquid sales | Midland Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 138 | 154 | 140 |
Natural gas liquid sales | Delaware Basin | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 100 | 110 | 47 |
Natural gas liquid sales | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1 | $ 3 | $ 3 |
REVENUE FROM CONTRACTS WITH CUSTOMERS - Concentrations (Details) - Customer Concentration Risk - Revenue Benchmark |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Vitol Midstream | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 26.00% | 15.00% | |
Shell Trading US Company | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22.00% | 27.00% | 26.00% |
Plains Marketing LP | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 20.00% | 23.00% | |
Trafigura Trading LLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
Koch Supply & Trading LP | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
Occidental Energy Marketing Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% |
ACQUISITIONS AND DIVESTITURES - 2020 Activity (Details) - Mineral Interests In Permian Basin - Viper LLC $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
a
| |
Business Acquisition [Line Items] | |
Mineral properties acquired, gross acres | 4,948 |
Mineral properties acquired net royalty acres | 417 |
Business combination, consideration transferred | $ | $ 64 |
ACQUISITIONS AND DIVESTITURES - 2019 Activity (Details) shares in Millions |
Jul. 29, 2019
USD ($)
a
shares
|
Jul. 01, 2019
USD ($)
a
|
May 23, 2019
USD ($)
a
|
---|---|---|---|
Business Acquisition [Line Items] | |||
Conventional and non-core Permian assets divested, area (in acre) | a | 103,750 | 6,589 | |
Proceeds from divestiture of certain conventional and non-core assets | $ 285,000,000 | $ 37,000,000 | |
Gain (loss) from divestiture of certain conventional and non-core assets | $ 0 | $ 0 | |
2019 Drop-Down Acquisition | |||
Business Acquisition [Line Items] | |||
Conventional and non-core Permian assets divested, area (in acre) | a | 5,490 | ||
Proceeds from divestiture of certain conventional and non-core assets | $ 190,000,000 | ||
Percentage of mineral acres operated | 95.00% | ||
Percentage of average net royalty interest in acquired mineral and royalty interests | 3.20% | ||
Viper Energy Partners LP | 2019 Drop-Down Acquisition | |||
Business Acquisition [Line Items] | |||
Number of shares to be issued in acquisition (in Shares) | shares | 18 | ||
Business combination, fair value of consideration | $ 497,000,000 |
ACQUISITIONS AND DIVESTITURES - 2018 Activity (Details) shares in Millions, $ in Millions |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jul. 01, 2019
USD ($)
|
May 23, 2019
USD ($)
|
Nov. 29, 2018
USD ($)
a
$ / shares
location
shares
|
Oct. 31, 2018
USD ($)
a
shares
|
Aug. 15, 2018
USD ($)
a
|
Jan. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of certain conventional and non-core assets | $ 285 | $ 37 | ||||||
Ajax Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 25,493 | |||||||
Payment to acquire businesses | $ 900 | |||||||
Number of shares to be issued in acquisition (in Shares) | shares | 2.6 | |||||||
2018 Drop-Down Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of mineral acres operated | 80.00% | |||||||
Proceeds from divestiture of certain conventional and non-core assets | $ 175 | |||||||
ExL Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 3,646 | |||||||
Payment to acquire businesses | $ 313 | |||||||
Energen | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of shares to be issued in acquisition (in Shares) | shares | 62.8 | |||||||
Combined tier one acres | a | 273,000 | |||||||
Estimated total net horizontal permian locations | location | 7,200 | |||||||
Business acquisition, share price (USD per share) | $ / shares | $ 112.00 | |||||||
Common stock, per share conversion basis | $ / shares | 0.6442 | |||||||
Business combination, consideration transferred | $ 7,100 | |||||||
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | $ 102 | |||||||
Business combination, pro forma information, direct operating expenses since acquisition date, actual | $ 17 | |||||||
Midland and Delaware Basins | Energen | ||||||||
Business Acquisition [Line Items] | ||||||||
Area of land (in acres) | a | 394,000 | |||||||
Viper Energy Partners LP | 2018 Drop-Down Transaction | ||||||||
Business Acquisition [Line Items] | ||||||||
Mineral properties acquired, gross acres | a | 32,424 | |||||||
Mineral properties acquired net royalty acres | a | 1,696 | |||||||
Diamondback Energy, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition related costs incurred | $ 37 | |||||||
Energen | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition related costs incurred | $ 59 | |||||||
Office Building | Midland, TX | ||||||||
Business Acquisition [Line Items] | ||||||||
Payments to acquire property, plant, and equipment | $ 110 |
ACQUISITIONS AND DIVESTITURES - Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) - Energen - USD ($) $ in Millions |
Nov. 29, 2018 |
Dec. 31, 2019 |
---|---|---|
Business Acquisition [Line Items] | ||
Consideration | $ 7,136 | |
Fair value of liabilities assumed: | ||
Current liabilities | 388 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Asset Retirement Obligation | (105) | |
Long-term debt | 1,099 | |
Noncurrent derivative instruments | 17 | |
Business acquisition, deferred tax liabilities | 1,425 | $ 1,400 |
Other long-term liabilities | 7 | |
Amount attributable to liabilities assumed | 3,041 | |
Fair value of assets acquired: | ||
Total current assets | 298 | |
Oil and natural gas properties | 9,361 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Midstream Assets | 253 | |
Investment in real estate | 11 | |
Other property, equipment and land | 58 | |
Asset retirement obligation | 105 | |
Other postretirement assets | 3 | |
Noncurrent income tax receivable, net | 76 | |
Other long term assets | 12 | |
Amount attributable to assets acquired | $ 10,177 |
ACQUISITIONS AND DIVESTITURES - Pro Forma Financial Information (Details) - Energen - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Business Acquisition [Line Items] | ||
Revenues | $ 3,532 | $ 2,196 |
Pro forma income (loss) from operations | 1,559 | 900 |
Business Acquisition, Pro Forma Net Income (Loss) | $ 1,320 | $ 875 |
Basic earnings per common share (in dollars per share) | $ 7.54 | $ 5.26 |
Diluted earnings per common share (in dollars per share) | $ 7.53 | $ 5.24 |
VIPER ENERGY PARTNERS LP - Narrative (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
May 10, 2018 |
May 09, 2018 |
Mar. 31, 2019 |
Jul. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Nov. 06, 2020 |
Oct. 29, 2020 |
May 31, 2019 |
|
Noncontrolling Interest [Line Items] | ||||||||||
Stock repurchase program authorized amount | $ 2,000,000,000 | |||||||||
Stock repurchase program amount repurchased | $ 98,000,000 | $ 598,000,000 | ||||||||
Viper Energy Partners LP | Diamondback Energy, Inc. | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Cash distributions paid | $ 62,000,000 | $ (133,000,000) | $ (155,000,000) | |||||||
Common Stock | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Stock repurchase program authorized amount | $ 100,000,000 | |||||||||
Follow-on Public Offering | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Number of Units of Common Units Sold | 10,925,000 | 10,080,000 | 0 | |||||||
Viper Energy Partners LP | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Number of common stock exchanged (in shares) | 73,150,000 | |||||||||
Number of stock issued (in shares) | 73,150,000 | |||||||||
Viper Energy Partners LP | Class B Units | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Units of partnership interest (in shares) | 73,150,000 | |||||||||
Number of class B units converted | 731,500 | |||||||||
Viper Energy Partners LP | Common Stock | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Exchange of membership interests for common units | 731,500 | |||||||||
Stock repurchase program authorized amount | $ 100,000,000 | |||||||||
Stock repurchase program amount repurchased | $ 24,000,000 | |||||||||
Stock repurchase remaining authorized amount | $ 76,000,000 |
VIPER ENERGY PARTNERS LP - Schedule of Sale of Stock (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2019 |
Jul. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Noncontrolling Interest [Line Items] | |||||
Amount Repaid on Viper LLC’s Credit Facility | $ 1,478 | $ 3,718 | $ 1,242 | ||
Follow-on Public Offering | |||||
Noncontrolling Interest [Line Items] | |||||
Number of Units of Common Units Sold | 10,925,000 | 10,080,000 | 0 | ||
Amount Repaid on Viper LLC’s Credit Facility | $ 314 | $ 362 | |||
Follow-on Public Offering | Viper Energy Partners LP | |||||
Noncontrolling Interest [Line Items] | |||||
Proceeds Received by Viper | $ 341 | $ 303 | |||
Over-Allotment Option | |||||
Noncontrolling Interest [Line Items] | |||||
Number of Units of Common Units Sold | 1,425,000 | 1,080,000 |
RATTLER MIDSTREAM LP (Details) - USD ($) |
12 Months Ended | ||||
---|---|---|---|---|---|
May 28, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Oct. 29, 2020 |
May 31, 2019 |
|
Noncontrolling Interest [Line Items] | |||||
Limited partners capital contribution | $ 1,000,000 | ||||
Stock repurchase program authorized amount | $ 2,000,000,000 | ||||
Stock repurchase program amount repurchased | $ 98,000,000 | $ 598,000,000 | |||
Common Stock | |||||
Noncontrolling Interest [Line Items] | |||||
Stock repurchase program authorized amount | $ 100,000,000 | ||||
Rattler LLC | |||||
Noncontrolling Interest [Line Items] | |||||
Distribution to affiliates | 727,000,000 | ||||
Rattler MIdstream LP | |||||
Noncontrolling Interest [Line Items] | |||||
General partners cash contribution | $ 1,000,000 | ||||
Rattler MIdstream LP | Class B Units | |||||
Noncontrolling Interest [Line Items] | |||||
Limited partners' capital account, units issued (in Shares) | 107,815,152 | ||||
Rattler MIdstream LP | Common Stock | |||||
Noncontrolling Interest [Line Items] | |||||
Stock repurchase program amount repurchased | 15,000,000 | ||||
Stock repurchase remaining authorized amount | $ 85,000,000 | ||||
Rattler MIdstream LP | IPO | |||||
Noncontrolling Interest [Line Items] | |||||
Offer and issuance of stock (in Shares) | 43,700,000 | ||||
Shares issued (in dollars per share) | $ 17.50 | ||||
Consideration received from offering | $ 720,000,000 | ||||
Rattler MIdstream LP | |||||
Noncontrolling Interest [Line Items] | |||||
Ownership percentage | 29.00% | 72.00% | |||
Limited partners ownership percentage | 71.00% |
REAL ESTATE ASSETS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Real Estate [Line Items] | |||
Buildings | $ 102 | $ 102 | |
Tenant improvements | 5 | 5 | |
Land | 2 | 2 | |
Land improvements | 1 | 1 | |
Total real estate assets | 110 | 110 | |
Less: accumulated depreciation | (13) | (9) | |
Total investment in land and buildings, net | $ 97 | $ 101 | |
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 | ||
Midland, TX | Office Buildings | |||
Real Estate [Line Items] | |||
Purchase price to acquire property, plant and equipment | $ 110 | ||
Maximum | Buildings | |||
Real Estate [Line Items] | |||
Real estate assets, estimated useful lives | 30 years | ||
Minimum | Buildings | |||
Real Estate [Line Items] | |||
Real estate assets, estimated useful lives | 20 years |
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Oil and natural gas properties: | |||||
Subject to depletion | $ 19,884 | $ 16,575 | |||
Not subject to depletion | 7,493 | 9,207 | |||
Gross oil and natural gas properties | 27,377 | 25,782 | |||
Accumulated depletion and depreciation | (12,314) | (5,003) | |||
Accumulated impairment | (7,954) | (1,934) | |||
Oil and natural gas properties, net | 15,186 | 20,853 | |||
Midstream assets | 1,013 | 931 | |||
Other property, equipment and land | 138 | 125 | |||
Total property and equipment, net | 16,214 | 21,835 | |||
Capitalized internal costs | $ 53 | 49 | $ 29 | ||
Timing of inclusion of costs in amortization calculation | 5 years | ||||
Impairment of oil and natural gas properties | $ 6,021 | 790 | 0 | ||
Exploration costs or development costs not subject to depletion | 85 | 228 | |||
Capitalized interest not subject to depletion | 51 | 118 | |||
Oil and Gas Properties | |||||
Oil and natural gas properties: | |||||
Subject to depletion | 19,884 | 16,575 | |||
Not subject to depletion | 7,493 | 9,207 | |||
Gross oil and natural gas properties | 27,377 | 25,782 | |||
Accumulated depletion and depreciation | (4,237) | (2,995) | |||
Accumulated impairment | (7,954) | (1,934) | |||
Oil and natural gas properties, net | 15,186 | 20,853 | |||
Balance of costs not subject to depletion | 71 | 421 | $ 5,090 | $ 1,682 | $ 229 |
Other Property and Equipment, Net | |||||
Oil and natural gas properties: | |||||
Accumulated depletion and depreciation | (123) | (74) | |||
Other property, equipment and land | $ 138 | $ 125 |
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Changes in ARO liability | |||
Asset retirement obligations, beginning of period | $ 94 | $ 136 | |
Additional liabilities incurred | 13 | 8 | |
Liabilities acquired | 2 | 4 | $ 111 |
Liabilities settled and divested | (8) | (61) | |
Accretion expense | 7 | 7 | 2 |
Revisions in estimated liabilities | 1 | 0 | |
Asset retirement obligations, end of period | 109 | 94 | $ 136 |
Less: current portion(1) | 1 | 0 | |
Asset retirement obligations - long-term | $ 108 | $ 94 |
EQUITY METHOD INVESTMENTS - Investments (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
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 | $ 533 | $ 479 | |||||
Rattler LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 533 | 479 | |||||
Rattler LLC | EPIC Crude Holdings, LP | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest | 10.00% | 10.00% | |||||
Equity method investments | $ 121 | 110 | |||||
Rattler LLC | Gray Oak Pipeline, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest | 10.00% | 10.00% | |||||
Equity method investments | $ 130 | 115 | |||||
Rattler LLC | Wink to Webster Pipeline LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest | 4.00% | 4.00% | |||||
Equity method investments | $ 83 | 34 | |||||
Rattler LLC | OMOG JV LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest | 60.00% | 60.00% | |||||
Equity method investments | $ 194 | 219 | |||||
Rattler LLC | Amarillo Rattler, LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership interest | 50.00% | 50.00% | |||||
Equity method investments | $ 5 | $ 1 |
EQUITY METHOD INVESTMENTS - Income (Loss) of Equity Method Investments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity investments | $ (10) | $ (6) | $ 0 |
EPIC Crude Holdings, LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity investments | (9) | (6) | |
Gray Oak Pipeline, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity investments | 10 | 1 | |
Wink to Webster Pipeline LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity investments | (2) | (1) | |
OMOG JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Income (loss) from equity investments | $ (9) | $ 0 |
EQUITY METHOD INVESTMENTS - Narrative (Details) bbl in Thousands, Mcf in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2020
USD ($)
bbl
Mcf
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
Dec. 20, 2019
Mcf
mi
|
Nov. 07, 2019 |
Oct. 01, 2019 |
Jul. 30, 2019 |
Mar. 29, 2019
USD ($)
|
Feb. 15, 2019 |
Feb. 01, 2019 |
|
Schedule of Equity Method Investments | ||||||||||
Equity method investment impairment | $ | $ 0 | $ 0 | $ 0 | |||||||
Rattler LLC | EPIC Crude Holdings, LP | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Ownership interest | 10.00% | 10.00% | ||||||||
Rattler LLC | Gray Oak Pipeline, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Ownership interest | 10.00% | 10.00% | ||||||||
Rattler LLC | OMOG JV LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Ownership interest | 60.00% | 60.00% | ||||||||
Rattler LLC | Amarillo Rattler, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Ownership interest | 50.00% | 50.00% | ||||||||
Gas gathering and cryogenic processing system capacity (in Mcf/d) | 30 | |||||||||
Rattler LLC | Wink to Webster Pipeline LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Ownership interest | 4.00% | 4.00% | ||||||||
Pipeline transportation capacity | bbl | 1,500 | |||||||||
OMOG JV LLC | Reliance Gathering LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Percentage acquired | 100.00% | |||||||||
2.52% Short-Term Promissory Note | Rattler LLC | Gray Oak Pipeline, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Equity method investment promissory note | $ | $ 123,000,000 | |||||||||
Stated interest rate | 2.52% | |||||||||
Dawson, Martin and Andrews Counties, Texas | Rattler LLC | Amarillo Rattler, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Gas gathering and cryogenic processing system capacity (in Mcf/d) | 40 | |||||||||
Dawson, Martin and Andrews Counties, Texas | Amarillo Rattler, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Distance of gathering and regional transportation pipelines (over) (in miles) | mi | 84 | |||||||||
Martin County, Texas | Rattler LLC | Amarillo Rattler, LLC | ||||||||||
Schedule of Equity Method Investments | ||||||||||
Gas gathering and cryogenic processing system capacity (in Mcf/d) | 60 |
DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Dec. 05, 2019 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 5,815 | $ 5,371 | ||
Unamortized debt issuance costs | (29) | (19) | ||
Unamortized discount costs | (27) | (31) | ||
Unamortized premium costs | 15 | 9 | ||
Less: current maturities of long-term debt | (191) | 0 | ||
Total debt, net | 5,624 | 5,371 | ||
4.625% Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 191 | 399 | ||
Stated interest rate | 4.625% | |||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 20 | 21 | ||
Stated interest rate | 7.32% | |||
2.875% Senior Notes due 2024 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,000 | 1,000 | ||
Stated interest rate | 2.875% | 2.875% | ||
4.750% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | 0 | ||
Stated interest rate | 4.75% | |||
5.375% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 800 | 800 | ||
Stated interest rate | 5.375% | |||
3.250% Senior Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 800 | 800 | ||
Stated interest rate | 3.25% | 3.25% | ||
7.350% Medium-term Notes, Series A, due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | 11 | ||
Stated interest rate | 7.35% | 7.35% | ||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100 | 108 | ||
Stated interest rate | 7.125% | |||
3.500% Senior Notes due 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 1,200 | 1,200 | ||
Stated interest rate | 3.50% | 3.50% | ||
DrillCo Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 79 | 39 | ||
Revolving credit facility(1) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 23 | 13 | ||
Viper revolving credit facility(1) | Viper Energy Partners LP | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 84 | 97 | ||
Viper 5.375% Senior Notes due 2027 | ||||
Debt Instrument [Line Items] | ||||
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 | 500 | ||
Rattler revolving credit facility(2) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 79 | 424 | ||
Rattler 5.625% Senior Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 5.625% | |||
Rattler 5.625% Senior Notes due 2025 | Rattler LLC | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 500 | $ 0 |
DEBT - Schedule of Long-term Debt Maturities (Details) $ in Millions |
Dec. 31, 2020
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2021 | $ 191 |
2022 | 127 |
2023 | 0 |
2024 | 1,079 |
2025 | 1,800 |
Thereafter | 2,659 |
Total debt, net | $ 5,856 |
DEBT - Diamondback Notes (Details) - USD ($) |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
May 26, 2020 |
Dec. 20, 2019 |
Dec. 05, 2019 |
Jan. 29, 2018 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Sep. 25, 2018 |
Dec. 20, 2016 |
Oct. 28, 2016 |
|
Debt Instrument [Line Items] | ||||||||||
Loss on extinguishment of debt | $ (5,000,000) | $ (56,000,000) | $ 0 | |||||||
Proceeds from senior notes | $ 997,000,000 | $ 3,469,000,000 | $ 1,062,000,000 | |||||||
Existing 2024 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Stated interest rate | 4.75% | |||||||||
Redemption premium | $ 1,250,000,000 | |||||||||
Debt, redemption price, percentage | 103.563% | |||||||||
Loss on extinguishment of debt | $ 56,000,000 | |||||||||
New 2024 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 750,000,000 | |||||||||
Stated interest rate | 4.75% | |||||||||
2.875% Senior Notes due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,000,000,000.0 | |||||||||
Stated interest rate | 2.875% | 2.875% | ||||||||
Existing 2025 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Stated interest rate | 5.375% | |||||||||
New 2025 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 300,000,000 | |||||||||
Stated interest rate | 5.375% | |||||||||
Proceeds from senior notes | $ 308,000,000 | |||||||||
2025 Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 800,000,000 | |||||||||
5.375% Senior Notes due 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 5.375% | |||||||||
5.375% Senior Notes due 2025 | 12-month period beginning on May 31, 2020 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, redemption price, percentage | 104.031% | |||||||||
5.375% Senior Notes due 2025 | 12-month period beginning on May 31, 2021 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, redemption price, percentage | 102.688% | |||||||||
5.375% Senior Notes due 2025 | 12-month period beginning on May 31, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, redemption price, percentage | 101.344% | |||||||||
5.375% Senior Notes due 2025 | Beginning on May 31, 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, redemption price, percentage | 100.00% | |||||||||
3.250% Senior Notes due 2026 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 800,000,000 | |||||||||
Stated interest rate | 3.25% | 3.25% | ||||||||
3.500% Senior Notes due 2029 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 1,200,000,000 | |||||||||
Stated interest rate | 3.50% | 3.50% | ||||||||
Senior Notes | May 2020 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Aggregate principal amount | $ 500,000,000 | |||||||||
Stated interest rate | 4.75% | |||||||||
Proceeds from senior notes | $ 496,000,000 | |||||||||
Senior Notes | December 2019 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, redemption price, percentage | 100.00% | |||||||||
Debt, redemption price, percentage upon change of control triggering event | 101.00% |
DEBT - Second Amended and Restated Credit Facility (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
letter
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018 |
|
Line of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 5,815,000,000 | $ 5,371,000,000 | |
Revolving credit facility(1) | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000,000.0 | ||
Outstanding borrowings | 23,000,000 | $ 13,000,000 | |
Remaining borrowing capacity | $ 1,980,000,000 | ||
Number of letters of credit outstanding | letter | 3,000,000 | ||
Weighted average interest rate | 2.02% | 4.10% | 3.75% |
Debt covenant, total net debt to capitalization ratio | 65.00% | ||
Debt covenant, debt principal amount as percentage of net tangible assets | 15.00% | ||
Revolving credit facility(1) | Federal Funds Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Revolving credit facility(1) | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Revolving credit facility(1) | Investment Grade Annually | Minimum | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.125% | ||
Revolving credit facility(1) | Investment Grade Annually | Maximum | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.35% | ||
Revolving credit facility(1) | Investment Grade Annually | Base Rate | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Revolving credit facility(1) | Investment Grade Annually | Base Rate | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Revolving credit facility(1) | Investment Grade Annually | LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Revolving credit facility(1) | Investment Grade Annually | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.00% |
DEBT - Energen Notes (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Nov. 29, 2018 |
|
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 5,815,000,000 | $ 5,371,000,000 | ||
Energen Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 311,000,000 | $ 530,000,000 | ||
4.625% Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 191,000,000 | 399,000,000 | ||
Stated interest rate | 4.625% | |||
Repurchased face amount | $ 209,000,000 | |||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 100,000,000 | 108,000,000 | ||
Stated interest rate | 7.125% | |||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 20,000,000 | 21,000,000 | ||
Stated interest rate | 7.32% | |||
7.350% Medium-term Notes, Series A, due 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 0 | $ 11,000,000 | ||
Stated interest rate | 7.35% | 7.35% | ||
Repurchased face amount | $ 10,000,000 | |||
Percentage of principal amount redeemed | 120.00% |
DEBT - Viper's Credit Agreement (Details) |
12 Months Ended | |||
---|---|---|---|---|
Jul. 20, 2018
USD ($)
redeterminations
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
Dec. 31, 2018 |
|
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ 5,815,000,000 | $ 5,371,000,000 | ||
Viper revolving credit facility(1) | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 2,000,000,000.0 | |||
Current borrowing base | 580,000,000 | |||
Number of additional redeterminations that may be requested | redeterminations | 3 | |||
Period of redeterminations | 12 months | |||
Remaining borrowing capacity | $ 496,000,000 | |||
Weighted average interest rate | 2.20% | 4.51% | 4.37% | |
Issuance of unsecured debt | $ 1,000,000,000.0 | |||
Financial covenant, reduction of borrowing base (percentage) | 25.00% | |||
Viper revolving credit facility(1) | Federal Funds Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Viper revolving credit facility(1) | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Viper revolving credit facility(1) | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |||
Viper revolving credit facility(1) | Minimum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 0.75% | |||
Viper revolving credit facility(1) | Minimum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Viper revolving credit facility(1) | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | |||
Viper revolving credit facility(1) | Maximum | Base Rate | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Viper revolving credit facility(1) | Maximum | LIBOR | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 2.75% |
DEBT - Financial Covenant Table (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Maximum | Rattler revolving credit facility(2) | |
Line of Credit Facility [Line Items] | |
Line of credit, covenant terms, consolidated total leverage ratio | 5.00 |
Line of credit, covenant terms, consolidated total leverage ratio, for three fiscal quarters following certain acquisitions | 5.50 |
Line of credit, covenant terms, consolidated total leverage ratio when consolidated senior secured leverage ration is applicable | 5.25 |
Line of credit facility, covenant terms, ratio of consolidated senior secured leverage ratio | 3.50 |
Maximum | Viper revolving credit facility(1) | |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | 4.0 |
Minimum | Rattler revolving credit facility(2) | |
Line of Credit Facility [Line Items] | |
Line of credit facility, covenant terms ratio of consolidated interest coverage | 2.50 |
Minimum | Viper revolving credit facility(1) | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1.0 |
DEBT - Viper's Notes (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Oct. 16, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Line of Credit Facility [Line Items] | ||||
Proceeds from senior notes | $ 997 | $ 3,469 | $ 1,062 | |
Long-term debt, gross | $ 5,815 | 5,371 | ||
Viper 5.375% Senior Notes due 2027 | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 5.375% | |||
Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | ||||
Line of Credit Facility [Line Items] | ||||
Long-term debt, gross | $ 480 | $ 500 | ||
Senior Notes | Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | ||||
Line of Credit Facility [Line Items] | ||||
Stated interest rate | 5.375% | |||
Aggregate principal amount | $ 500 | |||
Gross proceeds from senior notes | 500 | |||
Proceeds from senior notes | $ 490 | |||
Repurchase of debt | $ 20 | |||
Senior Notes | Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | Minimum | ||||
Line of Credit Facility [Line Items] | ||||
Discount percentage | 97.50% | |||
Senior Notes | Viper 5.375% Senior Notes due 2027 | Viper Energy Partners LP | Maximum | ||||
Line of Credit Facility [Line Items] | ||||
Discount percentage | 98.50% |
DEBT - Rattler's Credit Agreement (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 5,815,000,000 | $ 5,371,000,000 |
Rattler revolving credit facility(2) | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 600,000,000 | |
Long-term debt, gross | 79,000,000 | $ 424,000,000 |
Remaining borrowing capacity | $ 521,000,000 | |
Rattler revolving credit facility(2) | Rattler LLC | ||
Line of Credit Facility [Line Items] | ||
Weighted average interest rate | 2.10% | 3.13% |
Rattler revolving credit facility(2) | Minimum | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.25% | |
Rattler revolving credit facility(2) | Minimum | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.25% | |
Rattler revolving credit facility(2) | Minimum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Rattler revolving credit facility(2) | Maximum | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |
Rattler revolving credit facility(2) | Maximum | Prime Rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Rattler revolving credit facility(2) | Maximum | LIBOR | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.25% |
DEBT - Rattler's Notes (Details) - Notes Offering - Rattler LLC |
Jul. 14, 2020
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 500,000,000 |
Stated interest rate | 5.625% |
Proceeds from issuance of debt | $ 490,000,000 |
DEBT - Alliance with Obsidian Resources, L.L.C. (Details) - DrillCo Agreement $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020
USD ($)
|
Sep. 10, 2018
USD ($)
|
|
Debt Instrument [Line Items] | ||
Maximum funding amount through joint venture | $ 300 | |
Percentage of funded costs associated with wells drilled | 85.00% | |
Percentage of working interest on wells expected to receive | 80.00% | |
Cumulative percentage of certain payout thresholds | 9.00% | |
Internal rate of return | 13.00% | |
Interest rate upon reaching final internal rate of return | 85.00% | |
Amounts received from joint venture | $ 79 | |
Wells drilled and completed under joint venture agreement | 15 | |
CEMOF | ||
Debt Instrument [Line Items] | ||
Interest rate upon reaching final internal rate of return | 15.00% |
DEBT - Interest Expense (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Debt Disclosure [Abstract] | |||
Interest expense | $ 250 | $ 235 | $ 110 |
Other fees and expenses | 6 | 4 | 10 |
Less: interest income | 4 | 1 | 1 |
Less: capitalized interest | 55 | 66 | 32 |
Interest expense, net | $ 197 | $ 172 | $ 87 |
CAPITAL STOCK AND EARNINGS PER SHARE - Capital Stock (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
May 31, 2019 |
|
Equity [Abstract] | |||
Stock repurchase program authorized amount | $ 2,000,000,000 | ||
Stock repurchase program amount repurchased | $ 98,000,000 | $ 598,000,000 |
CAPITAL STOCK AND EARNINGS PER SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Basic: | |||
Net income (loss) attributable to common stock | $ (4,517) | $ 240 | $ 846 |
Basic weighted average common units outstanding (in shares) | 157,976,000 | 163,493,000 | 104,622,000 |
Effect of dilutive securities: | |||
Potential common shares issuable (in shares) | 0 | 350,000 | 307,000 |
Diluted: | |||
Diluted weighted average common shares outstanding (in shares) | 157,976,000 | 163,843,000 | 104,929,000 |
Basic net income attributable to common stock (in dollars per share) | $ (28.59) | $ 1.47 | $ 8.09 |
Diluted net income attributable to common stock (in dollars per share) | $ (28.59) | $ 1.47 | $ 8.06 |
Antidilutive securities, restricted stock units (in shares) | 696,223 |
CAPITAL STOCK AND EARNINGS PER SHARE - Change in Ownership of Consolidated Subsidiaries (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net income (loss) attributable to Diamondback Energy, Inc. | $ (4,517,000) | $ 240,000 | $ 846,000 |
Change in ownership of consolidated subsidiaries, net | (8,000) | 12,000 | (10,000) |
Additional Paid-in Capital | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Change in ownership of consolidated subsidiaries, net | 358,000 | (33,000) | 150,000 |
Rattler LLC | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Change in ownership of consolidated subsidiaries, net | 329,000 | ||
Rattler LLC | Additional Paid-in Capital | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Change in ownership of consolidated subsidiaries, net | 329,000 | ||
Limited Partner | |||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||
Net income (loss) attributable to Diamondback Energy, Inc. | (4,517,000) | 240,000 | 846,000 |
Change in ownership of consolidated subsidiaries, net | 358,000 | (33,000) | 150,000 |
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest | $ (4,159,000) | $ 207,000 | $ 996,000 |
EQUITY-BASED COMPENSATION - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
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 | $ 16 | $ 17 | $ 10 |
General and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
General and administrative expenses | $ 37 | $ 48 | $ 27 |
EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs) |
12 Months Ended |
---|---|
Dec. 31, 2020
$ / shares
shares
| |
Restricted Stock Awards & Units | |
Unvested, beginning balance (in shares) | shares | 505,867 |
Granted (in shares) | shares | 921,730 |
Vested (in shares) | shares | (283,330) |
Forfeited (in shares) | shares | (30,787) |
Unvested, ending balance (in shares) | shares | 1,113,480 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 96.01 |
Granted (in dollars per share) | $ / shares | 35.38 |
Vested (in dollars per share) | $ / shares | 86.81 |
Forfeited (in dollars per share) | $ / shares | 80.94 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 48.58 |
EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Aggregated fair value of restricted stock | $ 25 | $ 45 | $ 19 |
Share based award not recognized | $ 41 | ||
Unrecognized compensation cost, expected period of recognition | 2 years 3 months 18 days |
EQUITY-BASED COMPENSATION - Performance-Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 31, 2020
shares
|
Mar. 31, 2019
installment
shares
|
Feb. 28, 2018 |
Feb. 27, 2017
shares
|
Mar. 31, 2019
shares
|
Dec. 31, 2020
USD ($)
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares, performance period | 3 years | |||||
Granted (in shares) | 225,047 | 117,423 | 199,723 | 281,519 | ||
Number of vesting installments | installment | 5 | |||||
Share based award not recognized | $ | $ 22 | |||||
Unrecognized compensation cost, expected period of recognition | 2 years 1 month 6 days | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 0.00% | 0.00% | ||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 200.00% | 200.00% | ||||
Share-based Payment Arrangement, Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares, performance period | 3 years | |||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 250.00% | |||||
Share-based Payment Arrangement, Tranche One | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 0.00% | |||||
Share-based Payment Arrangement, Tranche One | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 200.00% | |||||
Share-based Payment Arrangement, Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in shares) | 32,958 | |||||
Share-based Payment Arrangement, Tranche Two | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 0.00% | |||||
Share-based Payment Arrangement, Tranche Two | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted | 200.00% |
EQUITY-BASED COMPENSATION - Performance-Based Restricted Stock Activity (Details) - Performance Shares - Equity Plan - $ / shares |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Mar. 31, 2020 |
Feb. 27, 2017 |
Mar. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Fair Value Assumptions | ||||||
Grant-date fair value (in dollars per share) | $ 70.17 | $ 137.22 | $ 170.45 | |||
Granted (in dollars per share) | $ 70.17 | $ 137.22 | $ 170.45 | |||
Risk-free rate | 0.86% | 2.55% | 1.99% | |||
Company volatility | 36.70% | 35.00% | 35.90% | |||
Performance Restricted Stock Units | ||||||
Unvested, beginning balance (in shares) | 271,819 | |||||
Granted (in shares) | 225,047 | 117,423 | 199,723 | 281,519 | ||
Vested (in shares) | (133,355) | |||||
Forfeited (in shares) | (8,396) | |||||
Unvested, ending balance (in shares) | 411,587 | 271,819 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||||
Unvested, beginning balance (in dollars per share) | $ 147.07 | |||||
Granted (in dollars per share) | 88.41 | |||||
Vested (in dollars per share) | 139.43 | |||||
Forfeited (in dollars per share) | 170.45 | |||||
Unvested, ending balance (in dollars per share) | $ 99.10 | $ 147.07 | ||||
Maximum units could be awarded (in shares) | 935,698 | |||||
Five-Year | ||||||
Fair Value Assumptions | ||||||
Grant-date fair value (in dollars per share) | 132.48 | |||||
Granted (in dollars per share) | $ 132.48 |
EQUITY-BASED COMPENSATION - Rattler Long-Term Incentive Plan (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan |
12 Months Ended |
---|---|
Dec. 31, 2020
$ / shares
shares
| |
Restricted Stock Awards & Units | |
Unvested, beginning balance (in shares) | shares | 2,226,895 |
Granted (in shares) | shares | 348,379 |
Vested (in shares) | shares | (460,781) |
Forfeited (in shares) | shares | (24,825) |
Unvested, ending balance (in shares) | shares | 2,089,668 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 19.14 |
Granted (in dollars per share) | $ / shares | 6.51 |
Vested (in dollars per share) | $ / shares | 19.06 |
Forfeited (in dollars per share) | $ / shares | 17.54 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 17.07 |
EQUITY-BASED COMPENSATION - Rattler Long-Term Incentive Plan (Narratives) (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregated fair value | $ 9 |
Share based award not recognized | $ 30 |
Unrecognized compensation cost, expected period of recognition | 3 years 2 months 12 days |
INCOME TAXES - Narrative (Details) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Nov. 29, 2018 |
|
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rate | 19.10% | 13.00% | 15.10% | |
Current income tax expense (benefit) | $ (62,000,000) | $ 0 | $ 0 | |
Deferred income tax expense | 38,000,000 | |||
Change in enacted tax rate, amount | 179,000,000 | |||
Current federal taxes receivable | 100,000,000 | |||
Net deferred tax liabilities | 710,000,000 | 1,744,000,000 | ||
Operating loss carryforwards, subject to expiration | 400,000,000 | |||
Operating loss carryforwards, not subject to expiration | 1,900,000,000 | |||
Valuation allowance | (166,000,000) | (7,000,000) | ||
Deferred tax liability includes deferred tax asset | 150,000,000 | 134,000,000 | ||
Change in deferred tax asset due to change in tax status | 0 | (42,000,000) | $ (73,000,000) | |
Rattler's investment in Rattler LLC | 58,000,000 | 0 | ||
Benefit from lapse of applicable statute of limitations | 300,000 | |||
Interest expense | 100,000 | |||
Interest associated with uncertain tax positions (less than) | 200,000 | 200,000 | ||
Penalties associated with uncertain tax positions | 0 | 0 | ||
State | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | (5,000,000) | |||
Energen | ||||
Operating Loss Carryforwards [Line Items] | ||||
Business acquisition, deferred tax liabilities | $ 1,400,000,000 | $ 1,425,000,000 | ||
Viper LLC | ||||
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance | (161,000,000) | |||
Deferred tax liability includes deferred tax asset | 11,000,000 | |||
Change in deferred tax asset due to change in tax status | 115,000,000 | |||
Operating loss carryforwards | 50,000,000 | |||
Rattler MIdstream LP | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carryforwards | $ 75,000,000 |
INCOME TAXES - Components of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Current income tax provision (benefit): | |||
Federal | $ (62) | $ 0 | $ 0 |
State | 0 | 0 | 0 |
Total current income tax provision (benefit) | (62) | 0 | 0 |
Deferred income tax provision (benefit): | |||
Federal | (1,010) | 40 | 160 |
State | (32) | 7 | 8 |
Total deferred income tax provision (benefit) | (1,042) | 47 | 168 |
Provision for (benefit from) income taxes | $ (1,104) | $ 47 | $ 168 |
INCOME TAXES - Reconciliation of Statutory Federal Income Tax (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense at the federal statutory rate | $ (1,213) | $ 76 | $ 234 |
Impact of nontaxable noncontrolling interest | 0 | 0 | (5) |
Income tax benefit relating to net operating loss carryback | (25) | 0 | 0 |
State income tax expense, net of federal tax effect | (30) | 6 | 8 |
Non-deductible compensation | 6 | 4 | 5 |
Change in valuation allowance | 153 | 0 | 0 |
Deferred taxes related to change in Viper LP's tax status | 0 | (42) | (73) |
Other, net | 5 | 3 | (1) |
Provision for (benefit from) income taxes | $ (1,104) | $ 47 | $ 168 |
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Deferred tax assets: | ||
Net operating loss and other carryforwards | $ 524 | $ 453 |
Derivative instruments | 60 | 0 |
Stock based compensation | 7 | 7 |
Viper's investment in Viper LLC | 150 | 134 |
Rattler's investment in Rattler LLC | 58 | 0 |
Other | 8 | 11 |
Deferred tax assets | 807 | 605 |
Valuation allowance | (166) | (7) |
Deferred tax assets, net of valuation allowance | 641 | 598 |
Deferred tax liabilities: | ||
Oil and natural gas properties and equipment | 1,156 | 2,275 |
Midstream investments | 192 | 50 |
Derivative instruments | 0 | 6 |
Rattler's investment in Rattler LLC | 0 | 8 |
Other | 3 | 3 |
Total deferred tax liabilities | 1,351 | 2,342 |
Net deferred tax liabilities | $ 710 | $ 1,744 |
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns | ||
Balance at beginning of year | $ 7 | $ 7 |
Increase resulting from prior period tax positions | 0 | 0 |
Increase resulting from current period tax positions | 0 | 0 |
Balance at end of year | 7 | 7 |
Less: Effects of temporary items | (5) | (5) |
Total that, if recognized, would impact the effective income tax rate as of the end of the year | $ 2 | $ 2 |
DERIVATIVES - Open Derivative Positions (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020
MMBTU
$ / bbl
$ / MMBTU
bbl
| |
OIL | Jan. - Mar. | Costless Collars | WTI Cushing | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 37,000 |
Derivative, Floor Price | 34.95 |
Derivative, Cap Price | 45.17 |
OIL | Jan. - Mar. | Costless Collars | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 82,000 |
Derivative, Floor Price | 39.04 |
Derivative, Cap Price | 48.51 |
OIL | Jan. - Mar. | Swaps | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Differential | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 45.46 |
OIL | Jan. - June | Rolling Hedge | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 12,000 |
Weighted Average Differential | (0.07) |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | Jan. - June | Basis Swap | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 8,000 |
Weighted Average Differential | 0.52 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 |
OIL | Jan. - Dec. | Swaps | WTI Houston Argus | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Differential | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 37.78 |
OIL | Jan. - Dec. | Swaps | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Differential | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 41.62 |
OIL | Apr. - June | Costless Collars | WTI Cushing | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 15,000 |
Derivative, Floor Price | 33.00 |
Derivative, Cap Price | 45.33 |
OIL | Apr. - June | Costless Collars | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 80,000 |
Derivative, Floor Price | 39.26 |
Derivative, Cap Price | 48.62 |
OIL | Apr. - June | Swaps | WTI | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,000 |
Weighted Average Differential | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 47.35 |
OIL | July - Dec. | Costless Collars | WTI Cushing | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 10,000 |
Derivative, Floor Price | 30.00 |
Derivative, Cap Price | 43.05 |
OIL | July - Dec. | Costless Collars | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 60,000 |
Derivative, Floor Price | 39.43 |
Derivative, Cap Price | 48.12 |
OIL | July - Dec. | Swaptions | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Weighted Average Differential | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 51.00 |
OIL | Jan -Dec 2022 | Option | Brent | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,000 |
Derivative, Put Price | 35.00 |
NATURAL GAS | Jan. - Dec. | Swaps | Henry Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 200,000 |
Weighted Average Differential | $ / MMBTU | 0 |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 2.65 |
NATURAL GAS | Jan. - Dec. | Basis Swap | Waha Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 230,000 |
Weighted Average Differential | $ / MMBTU | (0.69) |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 0 |
NATURAL GAS | Jan -Dec 2022 | Basis Swap | Waha Hub | |
Derivative [Line Items] | |
Volume, energy measure (MMBtu) | MMBTU | 100,000 |
Weighted Average Differential | $ / MMBTU | (0.42) |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 0 |
DERIVATIVES - Interest rate swaps and treasury locks (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Offsetting Assets [Line Items] | |||
Net cash received (paid) on settlements | $ 250 | $ 80 | $ (121) |
Interest Rate Swap One | |||
Offsetting Assets [Line Items] | |||
Notional Amount | $ 250 | ||
Interest Rate | 1.692% | ||
Interest Rate Swap Two | |||
Offsetting Assets [Line Items] | |||
Notional Amount | $ 250 | ||
Interest Rate | 1.8361% | ||
Interest Rate Swap Three | |||
Offsetting Assets [Line Items] | |||
Notional Amount | $ 250 | ||
Interest Rate | 1.852% | ||
Interest Rate Swap Four | |||
Offsetting Assets [Line Items] | |||
Notional Amount | $ 250 | ||
Interest Rate | 1.722% |
DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net | $ (81) | $ (108) | $ 101 |
Net cash received (paid) on settlements | 250 | 80 | (121) |
Cash received on contract | 17 | ||
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net | (32) | (151) | 101 |
Net cash received (paid) on settlements | 250 | 37 | (121) |
Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments, net | (49) | 43 | 0 |
Net cash received (paid) on settlements | $ 0 | $ 43 | $ 0 |
FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Current: | ||
Net Fair Value Presented in Balance Sheet | $ 1 | $ 46 |
Non-current: | ||
Net Fair Value Presented in Balance Sheet | 0 | 7 |
Current: | ||
Net Fair Value Presented in Balance Sheet | 249 | 27 |
Non-current: | ||
Net Fair Value Presented in Balance Sheet | 57 | 0 |
Viper Energy Partners LP | Recurring | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 43 | 64 |
Gross Amounts Offset in Balance Sheet | (42) | (18) |
Net Fair Value Presented in Balance Sheet | 1 | 46 |
Non-current: | ||
Total Gross Fair Value | 187 | 7 |
Gross Amounts Offset in Balance Sheet | (187) | 0 |
Net Fair Value Presented in Balance Sheet | 0 | 7 |
Current: | ||
Total Gross Fair Value | 291 | 45 |
Gross Amounts Offset in Balance Sheet | (42) | (18) |
Net Fair Value Presented in Balance Sheet | 249 | 27 |
Non-current: | ||
Total Gross Fair Value | 244 | |
Gross Amounts Offset in Balance Sheet | (187) | |
Net Fair Value Presented in Balance Sheet | 57 | |
Viper Energy Partners LP | Recurring | Investment | ||
Non-current: | ||
Total Gross Fair Value | 19 | |
Gross Amounts Offset in Balance Sheet | 0 | |
Net Fair Value Presented in Balance Sheet | 19 | |
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 | |
Viper Energy Partners LP | Recurring | Level 1 | Investment | ||
Non-current: | ||
Total Gross Fair Value | 19 | |
Viper Energy Partners LP | Recurring | Level 2 | Derivative Instruments | ||
Current: | ||
Total Gross Fair Value | 43 | 64 |
Non-current: | ||
Total Gross Fair Value | 187 | 7 |
Current: | ||
Total Gross Fair Value | 291 | 45 |
Non-current: | ||
Total Gross Fair Value | 244 | |
Viper Energy Partners LP | Recurring | Level 2 | Investment | ||
Non-current: | ||
Total Gross Fair Value | 0 | |
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 | |
Viper Energy Partners LP | Recurring | Level 3 | Investment | ||
Non-current: | ||
Total Gross Fair Value | $ 0 |
FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
Dec. 05, 2019 |
---|---|---|---|---|
4.625% Notes due 2021 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 4.625% | |||
7.320% Medium-term Notes, Series A, due 2022 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 7.32% | |||
2.875% Senior Notes due 2024 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 2.875% | 2.875% | ||
4.750% Senior Notes due 2025 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 4.75% | |||
5.375% Senior Notes due 2025 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 5.375% | |||
3.250% Senior Notes due 2026 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 3.25% | 3.25% | ||
7.350% Medium-term Notes, Series A, due 2027 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 7.35% | 7.35% | ||
7.125% Medium-term Notes, Series B, due 2028 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 7.125% | |||
3.500% Senior Notes due 2029 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate | 3.50% | 3.50% | ||
Viper 5.375% Senior Notes due 2027 | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
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 | ||||
Stated interest rate | 5.625% | |||
Reported Value Measurement | Revolving credit facility(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 23 | $ 13 | ||
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 | 399 | ||
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 | 2.875% Senior Notes due 2024 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 993 | 992 | ||
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 | 496 | 0 | ||
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 | 799 | 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 | 792 | ||
Reported Value Measurement | 7.350% Medium-term Notes, Series A, due 2027 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 0 | 11 | ||
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 | 108 | ||
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 | 1,187 | 1,186 | ||
Reported Value Measurement | Viper revolving credit facility(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 84 | 97 | ||
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 | 490 | ||
Reported Value Measurement | Rattler revolving credit facility(2) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 79 | 424 | ||
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 | 0 | ||
Reported Value Measurement | DrillCo Agreement | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | 79 | 39 | ||
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 | 193 | 411 | ||
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 | 22 | 22 | ||
Estimate of Fair Value Measurement | 7.350% Medium-term Notes, Series A, due 2027 | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior notes due | 0 | 12 | ||
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 | 119 | 116 | ||
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 | 528 | 0 | ||
Estimate of Fair Value Measurement | DrillCo Agreement | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Debt, fair value | 79 | 39 | ||
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 | 1,053 | 1,012 | ||
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 | 565 | 0 | ||
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 | 824 | 840 | ||
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 | 857 | 812 | ||
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 | 1,286 | 1,226 | ||
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 | 521 | ||
Level 2 | Estimate of Fair Value Measurement | Revolving credit facility(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 23 | 13 | ||
Level 2 | Estimate of Fair Value Measurement | Viper revolving credit facility(1) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 84 | 97 | ||
Level 2 | Estimate of Fair Value Measurement | Rattler revolving credit facility(2) | Nonrecurring | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 79 | $ 424 |
COMMITMENTS AND CONTINGENCIES - Commitments (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Water Services Agreement | Forecast | ||
Supply Commitment [Line Items] | ||
Produced water disposal services term | 14 years | |
Sand Supply Agreement | ||
Supply Commitment [Line Items] | ||
2021 | $ 18 | |
2022 | 18 | |
2023 | 18 | |
2024 | 18 | |
2025 | 18 | |
Thereafter | 5 | |
Total | 95 | |
Transportation Commitments | ||
Supply Commitment [Line Items] | ||
2021 | 60 | |
2022 | 60 | |
2023 | 51 | |
2024 | 48 | |
2025 | 47 | |
Thereafter | 133 | |
Total | 399 | |
Produced Water Disposal Commitments | ||
Supply Commitment [Line Items] | ||
2021 | 5 | |
2022 | 5 | |
2023 | 5 | |
2024 | 5 | |
2025 | 5 | |
Thereafter | 31 | |
Total | 56 | |
Equity Method Investments | Rattler LLC | ||
Supply Commitment [Line Items] | ||
2021 | 57 | |
2022 | 7 | |
2023 | 8 | |
Total | $ 72 |
COMMITMENTS AND CONTINGENCIES - Delivery Commitments (Details) |
Dec. 31, 2020
bbl
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2021 | 175,000 |
2022 | 175,000 |
2023 | 175,000 |
2024 | 125,000 |
2025 | 125,000 |
Thereafter | 400,000 |
Total | 1,175,000 |
SUBSEQUENT EVENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 18, 2021 |
Dec. 21, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 18, 2020 |
Sep. 30, 2020 |
|
Subsequent Event [Line Items] | |||||||
Dividends declared per share (in dollars per share) | $ 1.5250 | $ 0.9375 | $ 0.50 | ||||
Funds held in escrow | $ 51 | $ 0 | |||||
QEP | |||||||
Subsequent Event [Line Items] | |||||||
Business combination, consideration transferred | $ 2,200 | ||||||
Debt in business combination | $ 1,600 | ||||||
Number of shares issued per share of acquire stock | 0.050 | ||||||
Business acquisition, share price (USD per share) | $ 2.29 | ||||||
Guidon Operating LLC | |||||||
Subsequent Event [Line Items] | |||||||
Number of shares issued | 10,600,000 | ||||||
Payments for asset acquisition | $ 375 | ||||||
Funds held in escrow | $ 50 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Dividends declared per share (in dollars per share) | $ 0.40 |
SUBSEQUENT EVENTS - Schedule of Derivative Contracts (Details) $ in Millions |
2 Months Ended | 12 Months Ended |
---|---|---|
Feb. 19, 2021
USD ($)
MMBTU
$ / bbl
$ / MMBTU
bbl
|
Dec. 31, 2020
USD ($)
MMBTU
$ / bbl
$ / MMBTU
bbl
|
|
WTI | OIL | Costless Collars | Subsequent Event | July - Sep. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 2,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 52.30 | |
WTI | OIL | Costless Collars | Subsequent Event | Oct. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 9,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 59.22 | |
WTI | OIL | Rolling Hedge | Jan. - June | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 12,000 | |
Weighted Average Differential | 0.07 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 | |
WTI | OIL | Rolling Hedge | Subsequent Event | Mar. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 25,000 | |
Weighted Average Differential | 0.32 | |
WTI | OIL | Swaps | Jan. - Mar. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 5,000 | |
Weighted Average Differential | 0 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 45.46 | |
WTI | OIL | Basis Swap | Jan. - June | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 8,000 | |
Weighted Average Differential | (0.52) | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 0 | |
WTI Houston Argus | OIL | Costless Collars | Subsequent Event | July - Sep. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 5,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 57.90 | |
WTI Houston Argus | OIL | Swaps | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 5,000 | |
Weighted Average Differential | 0 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 37.78 | |
IPE Brent | OIL | Costless Collars | Subsequent Event | Oct. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 4,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 60.64 | |
IPE Brent | OIL | Costless Collars | Subsequent Event | Apr. - Sep. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 2,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 57.72 | |
IPE Brent | OIL | Costless Collars | Subsequent Event | Jan. - Mar. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 18,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 61.35 | |
IPE Brent | OIL | Costless Collars | Subsequent Event | Apr. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 2,000 | |
Derivative, Floor Price | 45.00 | |
Derivative, Cap Price | 60.00 | |
Henry Hub | OIL | Swaps | Subsequent Event | Mar. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 20,000 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | 2.95 | |
Henry Hub | NATURAL GAS | Swaps | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 200,000 | |
Weighted Average Differential | $ / MMBTU | 0 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 2.65 | |
WTI Midland | OIL | Basis Swap | Subsequent Event | Jan. - June | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 15,000 | |
Weighted Average Differential | 0.95 | |
WTI Midland | OIL | Basis Swap | Subsequent Event | July - Dec. | ||
Subsequent Event [Line Items] | ||
Volume (Bbls) | bbl | 18,000 | |
Weighted Average Differential | 0.93 | |
Waha Hub | NATURAL GAS | Basis Swap | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 230,000 | |
Weighted Average Differential | $ / MMBTU | 0.69 | |
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) | $ / MMBTU | 0 | |
Waha Hub | NATURAL GAS | Basis Swap | Subsequent Event | Apr. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 20,000 | |
Weighted Average Differential | $ / MMBTU | (0.255) | |
Waha Hub | NATURAL GAS | Basis Swap | Subsequent Event | Jan. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 30,000 | |
Weighted Average Differential | $ / MMBTU | 0.34 | |
Mont Belvieu | NATURAL GAS LIQUIDS | Swaps | Subsequent Event | Feb. - Dec. | ||
Subsequent Event [Line Items] | ||
Volume, energy measure (MMBtu) | MMBTU | 84,000 | |
Weighted Average Differential | $ / MMBTU | 0.70 | |
Interest Rate Swap One | ||
Subsequent Event [Line Items] | ||
Notional Amount | $ | $ 250 | |
Interest Rate | 1.692% | |
Interest Rate Swap One | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Notional Amount | $ | $ 250 | |
Interest Rate | 1.8361% | |
Interest Rate Swap Two | ||
Subsequent Event [Line Items] | ||
Notional Amount | $ | $ 250 | |
Interest Rate | 1.8361% | |
Interest Rate Swap Two | Subsequent Event | ||
Subsequent Event [Line Items] | ||
Notional Amount | $ | $ 250 | |
Interest Rate | 1.852% |
SEGMENT INFORMATION - Additional Information (Details) |
12 Months Ended |
---|---|
Dec. 31, 2020
segment
| |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
SEGMENT INFORMATION - Summary of Business Segments (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,813 | $ 3,964 | $ 2,176 |
Lease operating expenses | 425 | 490 | 205 |
Depreciation, depletion and amortization | 1,304 | 1,447 | 623 |
Impairment of oil and natural gas properties | 6,021 | 790 | 0 |
Income (loss) from operations | (5,476) | 695 | 1,011 |
Interest expense, net | (197) | (172) | (87) |
Other income (expense) | (103) | (161) | 189 |
Provision for (benefit from) income taxes | (1,104) | 47 | 168 |
Net income (loss) attributable to non-controlling interest | (155) | 75 | 99 |
Net income (loss) attributable to Diamondback Energy, Inc. | (4,517) | 240 | 846 |
Total assets | 17,619 | 23,531 | 21,596 |
Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,756 | 3,891 | 2,132 |
Midstream Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 424 | 448 | 184 |
Operating Segments | Upstream | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,756 | 3,891 | 2,132 |
Lease operating expenses | 425 | 490 | 205 |
Depreciation, depletion and amortization | 1,251 | 1,405 | 598 |
Impairment of oil and natural gas properties | 6,021 | 790 | |
Income (loss) from operations | (5,562) | 790 | 1,071 |
Interest expense, net | (180) | (171) | (87) |
Other income (expense) | (87) | (149) | 189 |
Provision for (benefit from) income taxes | (1,114) | 21 | 151 |
Net income (loss) attributable to non-controlling interest | (190) | 75 | 99 |
Net income (loss) attributable to Diamondback Energy, Inc. | (4,525) | 374 | 923 |
Total assets | 16,128 | 22,125 | 21,096 |
Operating Segments | Midstream Operations | |||
Segment Reporting Information [Line Items] | |||
Revenues | 57 | 73 | 44 |
Lease operating expenses | 0 | 0 | 0 |
Depreciation, depletion and amortization | 53 | 42 | 25 |
Impairment of oil and natural gas properties | 0 | 0 | |
Income (loss) from operations | 182 | 219 | 80 |
Interest expense, net | (17) | (1) | 0 |
Other income (expense) | (10) | (6) | 0 |
Provision for (benefit from) income taxes | 10 | 26 | 17 |
Net income (loss) attributable to non-controlling interest | 35 | 91 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 110 | 95 | 63 |
Total assets | 1,809 | 1,636 | 604 |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (367) | (375) | (140) |
Lease operating expenses | 0 | 0 | 0 |
Depreciation, depletion and amortization | 0 | 0 | 0 |
Impairment of oil and natural gas properties | 0 | 0 | |
Income (loss) from operations | (96) | (314) | (140) |
Interest expense, net | 0 | 0 | 0 |
Other income (expense) | (6) | (6) | 0 |
Provision for (benefit from) income taxes | 0 | 0 | 0 |
Net income (loss) attributable to non-controlling interest | 0 | (91) | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | (102) | (229) | (140) |
Total assets | $ (318) | $ (230) | $ (104) |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Capitalized Oil and Natural Gas Costs (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Oil and natural gas properties: | ||
Proved properties | $ 19,884 | $ 16,575 |
Unproved properties | 7,493 | 9,207 |
Total oil and natural gas properties | 27,377 | 25,782 |
Accumulated depletion | (4,237) | (2,995) |
Accumulated impairment | (7,954) | (1,934) |
Oil and natural gas properties, net | $ 15,186 | $ 20,853 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Costs Incurred in Crude Oil and Natural Gas Activities (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Acquisition costs: | |||
Proved properties | $ 13 | $ 194 | $ 5,665 |
Unproved properties | 106 | 418 | 5,818 |
Development costs | 381 | 956 | 493 |
Exploration costs | 1,098 | 1,915 | 1,090 |
Total | $ 1,598 | $ 3,483 | $ 13,066 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Oil and Natural Gas Reserves (Details) bbl in Thousands, Mcf in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2020
bbl
Mcf
|
Dec. 31, 2019
bbl
Mcf
|
Dec. 31, 2018
bbl
Mcf
|
Dec. 31, 2017
bbl
Mcf
|
|
OIL | ||||
Proved Developed and Undeveloped Reserves (Volume) | ||||
Beginning of the period | 710,903 | 626,936 | 233,181 | |
Extensions and discoveries | 191,009 | 256,569 | 143,256 | |
Revisions of previous estimates | (78,244) | (84,789) | 3,689 | |
Purchase of reserves in place | 2,124 | 13,974 | 281,333 | |
Divestitures | (209) | (33,269) | (156) | |
Production | (66,182) | (68,518) | (34,367) | |
End of the period | 759,401 | 710,903 | 626,936 | |
Proved Developed Reserves (Volume) | 443,464 | 457,083 | 403,051 | 141,246 |
Proved Undeveloped Reserve (Volume) | 315,937 | 253,820 | 223,885 | 91,935 |
Natural Gas Liquids | ||||
Proved Developed and Undeveloped Reserves (Volume) | ||||
Beginning of the period | 230,203 | 190,291 | 54,609 | |
Extensions and discoveries | 58,410 | 66,572 | 33,152 | |
Revisions of previous estimates | 21,927 | (8,166) | 11,138 | |
Purchase of reserves in place | 778 | 3,813 | 98,865 | |
Divestitures | (141) | (3,809) | (8) | |
Production | (21,981) | (18,498) | (7,465) | |
End of the period | 289,196 | 230,203 | 190,291 | |
Proved Developed Reserves (Volume) | 192,495 | 165,173 | 125,509 | 35,412 |
Proved Undeveloped Reserve (Volume) | 96,701 | 65,030 | 64,782 | 19,198 |
Natural Gas | ||||
Proved Developed and Undeveloped Reserves (Volume) | ||||
Beginning of the period | Mcf | 1,118,811 | 1,048,649 | 285,369 | |
Extensions and discoveries | Mcf | 316,035 | 318,874 | 154,088 | |
Revisions of previous estimates | Mcf | 300,160 | (149,657) | 3,642 | |
Purchase of reserves in place | Mcf | 3,512 | 19,830 | 640,761 | |
Divestitures | Mcf | (905) | (21,272) | (543) | |
Production | Mcf | (130,549) | (97,613) | (34,668) | |
End of the period | Mcf | 1,607,064 | 1,118,811 | 1,048,649 | |
Proved Developed Reserves (Volume) | Mcf | 1,085,035 | 824,760 | 705,084 | 190,740 |
Proved Undeveloped Reserve (Volume) | Mcf | 522,029 | 294,051 | 343,565 | 94,629 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Narrative (Details) MBoe in Thousands, Boe in Thousands, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
USD ($)
Boe
MBoe
well
sWDWell
|
Dec. 31, 2019
USD ($)
Boe
MBoe
sWDWell
|
Dec. 31, 2018
USD ($)
MBoe
Boe
sWDWell
|
|
Oil and Gas, Delivery Commitment [Line Items] | |||
Extensions and discoveries (in MBOE) | 302,092 | 376,287 | 202,089 |
Oil and gas development well drilled net productive | sWDWell | 682 | 283 | 135 |
Proved undeveloped reserves number of wells added | sWDWell | 298 | 291 | 138 |
Percentage of extension volumes attributable to subsidiary | 8.00% | 5.00% | 10.00% |
Revision of previous estimate as result of positive technical and performance revisions (in MBOE) | (117,898) | 14,218 | |
Revisions due to higher pricing (in MBOE) | MBoe | 6,032 | ||
Revisions from PUD reclassifications due to timing | (6,290) | (4,815) | |
Lower product pricing | 54,645 | ||
Reduction in LOE | 23,066 | ||
Total negative pricing revision | 31,579 | ||
Change in corporate plan | 31,074 | ||
Performance revisions | 56,362 | ||
Increase due to purchase of reserves | MBoe | 21,092 | 486,992 | |
Purchase of working interest in Reserves | 10,939 | 477,686 | |
Proved undeveloped reserves (energy) | 499,643 | 367,859 | |
Proved undeveloped reserves, increase (energy) | 131,784 | ||
Extensions and discoveries, working interest (in MBOE) | MBoe | 220,023 | ||
Number of horizontal wells developed, working interest gross | well | 277 | ||
Number of horizontal wells developed, working interest | well | 236 | ||
Proved undeveloped reserves extensions and discoveries mineral interest | MBoe | 15,686 | ||
Number of horizontal wells developed, mineral interest | well | 299 | ||
Undeveloped reserves transferred to developed | 89,133 | ||
Number of horizontal wells developed working interest gross | well | 102 | ||
Number of horizontal wells developed working interest net | well | 94 | ||
Number of horizontal wells developed mineral interest gross | well | 82 | ||
Number of horizontal wells developed working and mineral interest | well | 78 | ||
Revisions | (15,742) | ||
Revisions from PUD reclassifications due to lower benchmark commodity prices | 4,226 | ||
Lease operating expenses | 1,494 | ||
Pricing revision | 2,732 | ||
Change in corporate plan | 26,329 | ||
Revisions from PUD reclassifications due to refinement | 13,319 | ||
Proved undeveloped reserves, planned development period | 5 years | ||
Capital expenditures towards development of proved undeveloped reserves | $ | $ 381 | $ 956 | $ 493 |
Delaware Basin | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Number of horizontal wells developed working interest | well | 98 | ||
Viper Energy Partners LP | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Royalty purchases | 10,153 | 9,306 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Proved Undeveloped Reserves (Details) Boe in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2020
Boe
| |
Proved Undeveloped Reserves (Energy) | |
Beginning proved undeveloped reserves at December 31, 2019 | 367,859 |
Undeveloped reserves transferred to developed | (89,133) |
Revisions | (15,742) |
Purchases | 964 |
Divestitures | (14) |
Extensions and discoveries | 235,709 |
Ending proved undeveloped reserves at December 31, 2020 | 499,643 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows - Proved Crude Oil and Natural Gas Reserves (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Standardized Measure [Abstract] | ||||
Future cash inflows | $ 32,173 | $ 40,681 | $ 43,578 | |
Future development costs | (3,585) | (3,809) | (3,560) | |
Future production costs | (10,763) | (9,319) | (7,727) | |
Future production taxes | (2,354) | (2,905) | (2,935) | |
Future income tax expenses | (727) | (2,635) | (3,913) | |
Future net cash flows | 14,744 | 22,013 | 25,443 | |
10% discount to reflect timing of cash flows | (7,986) | (11,829) | (13,767) | |
Standardized measure of discounted future net cash flows(1) | 6,758 | 10,184 | 11,676 | $ 3,757 |
Oil and Gas, Delivery Commitment [Line Items] | ||||
Standardized measure of discounted future net cash flows(1) | $ 6,758 | 10,184 | 11,676 | $ 3,757 |
Viper Energy Partners LP | ||||
Oil and Gas, Delivery Commitment [Line Items] | ||||
Noncontrolling interest, ownership percentage | 42.00% | |||
Viper Energy Partners LP | ||||
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves, Standardized Measure [Abstract] | ||||
Standardized measure of discounted future net cash flows(1) | $ 1,000 | 1,300 | 1,100 | |
Oil and Gas, Delivery Commitment [Line Items] | ||||
Standardized measure of discounted future net cash flows(1) | $ 1,000 | $ 1,300 | $ 1,100 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Average First Day of the Month Price for Oil, Natural Gas & Natural Gas Liquids (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020
$ / bbl
$ / Mcf
|
Dec. 31, 2019
$ / bbl
$ / Mcf
|
Dec. 31, 2018
$ / Mcf
$ / bbl
|
|
OIL | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Average sales prices (dollars per unit) | 38.06 | 51.88 | 59.63 |
Natural Gas | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Average sales prices (dollars per unit) | $ / Mcf | 0.09 | 0.18 | 1.47 |
Natural Gas Liquids | |||
Oil and Gas, Delivery Commitment [Line Items] | |||
Average sales prices (dollars per unit) | 10.83 | 15.65 | 24.43 |
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) - Principal Changes in Standardized Measure of Discounted Future Net Cash Flows (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
|
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves | |||
Standardized measure of discounted future net cash flows at the beginning of the period | $ 10,184 | $ 11,676 | $ 3,757 |
Sales of oil and natural gas, net of production costs | (2,225) | (3,334) | (1,786) |
Acquisitions of reserves | 30 | 309 | 5,520 |
Divestitures of reserves | (4) | (500) | (2) |
Extensions and discoveries, net of future development costs | 1,514 | 4,004 | 3,287 |
Previously estimated development costs incurred during the period | 704 | 120 | 535 |
Net changes in prices and production costs | (5,273) | 831 | 1,805 |
Changes in estimated future development costs | 526 | (3,190) | (81) |
Revisions of previous quantity estimates | (462) | (1,242) | 271 |
Accretion of discount | 1,126 | 1,344 | 380 |
Net change in income taxes | 807 | 693 | (1,728) |
Net changes in timing of production and other | (169) | (527) | (282) |
Standardized measure of discounted future net cash flows at the end of the period | $ 6,758 | $ 10,184 | $ 11,676 |
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