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DEBT
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
DEBT DEBT
The Company’s debt consisted of the following as of the dates indicated:
December 31,
20242023
(In millions)
3.250% Senior Notes due 2026
$750 $750 
5.625% Senior Notes due 2026(1)
14 14 
5.200% Senior Notes due 2027
850 — 
7.125% Medium-term Notes, Series B, due 2028
73 73 
3.500% Senior Notes due 2029
915 921 
5.150% Senior Notes due 2030
850 — 
3.125% Senior Notes due 2031
767 789 
6.250% Senior Notes due 2033
1,100 1,100 
5.400% Senior Notes due 2034
1,300 — 
4.400% Senior Notes due 2051
650 650 
4.250% Senior Notes due 2052
750 750 
6.250% Senior Notes due 2053
650 650 
5.750% Senior Notes due 2054
1,500 — 
5.900% Senior Notes due 2064
1,000 — 
Tranche A Loans900 — 
Unamortized debt issuance costs(91)(46)
Unamortized discount costs(25)(23)
Unamortized premium costs3 4 
Unamortized basis adjustment of dedesignated interest rate swap agreements(2)
(72)(84)
Viper revolving credit facility261 263 
Viper 5.375% Senior Notes due 2027
430 430 
Viper 7.375% Senior Notes due 2031
400 400 
Total debt, net12,975 6,641 
Less: current maturities of debt900 — 
Total long-term debt$12,075 $6,641 
(1)    QEP remained the issuer of these senior notes subsequent to becoming a wholly owned subsidiary of the Company.
(2)    Represents the unamortized basis adjustment related to two receive-fixed, pay variable interest rate swap agreements which were previously designated as fair value hedges of the Company’s $1.2 billion 3.500% fixed rate senior notes due 2029. These swaps were dedesignated in the second quarter of 2022 as discussed further in Note 13—Derivatives.

Debt maturities as of December 31, 2024, excluding debt issuance costs, premiums and discounts and the unamortized basis adjustment of dedesignated interest rate swap agreements are as follows:

Year Ending December 31,
(In millions)
2025$900 
2026764 
20271,280 
2028334 
2029915 
Thereafter8,967 
Total$13,160 
References in this section to the Company shall mean Diamondback Energy, Inc. and Diamondback E&P, collectively, unless otherwise specified.

Second Amended and Restated Credit Facility

On March 6, 2024, Diamondback E&P, as borrower, and Diamondback Energy, Inc., as parent guarantor, entered into a fourteenth amendment to the existing credit agreement, which upon consummation of the Endeavor Acquisition, (i) increased the maximum credit amount from $1.6 billion to $2.5 billion, which may be further increased to a total maximum commitment of $2.6 billion, (ii) decreased the swingline commitments amount from $100 million to $50 million and (iii) made certain amendments to the representations and warranties, affirmative and negative covenants, and events of default. As of December 31, 2024, the Company had no outstanding borrowings under the credit agreement and $2.5 billion available for future borrowings. The weighted average interest rate on borrowings under the credit agreement was 6.33%, 6.31% and 3.91% for the years ended December 31, 2024, 2023 and 2022, respectively. During the fourth quarter of 2024, the Company exercised an election to extend the maturity date of the credit agreement by one year to June 2, 2029.

Outstanding borrowings under the credit agreement bear interest at a per annum rate elected by Diamondback E&P that is equal to (i) term SOFR plus 0.10% (“Adjusted Term SOFR”) or (ii) an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.50%, and 1-month Adjusted Term SOFR plus 1.0%), in each case plus the applicable margin. After giving effect to the amendment, (i) the applicable margin ranges from 0.125% to 1.000% per annum in the case of the alternate base rate, and from 1.125% to 2.000% per annum in the case of Adjusted Term SOFR, in each case based on the pricing level, and (ii) the commitment fee ranges from 0.125% to 0.325% per annum on the average daily unused portion of the commitments, based on the pricing level. The pricing level depends on the Company’s long-term senior unsecured debt ratings.

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%. As of December 31, 2024, the Company was in compliance with all financial maintenance covenants under the revolving credit facility, as then in effect.

Term Loan Agreement

In connection with the Endeavor Acquisition, Diamondback Energy, Inc., as guarantor, entered into a Term Loan Credit Agreement with Diamondback E&P LLC, as borrower, and Citibank, N.A., as administrative agent (the “Term Loan Agreement”) on February 29, 2024.

The Term Loan Agreement provided the Company with the ability to borrow up to $1.5 billion, which was comprised of $1.0 billion of Tranche A Loans (the “Tranche A Loans”) and $500 million of Tranche B Loans on an unsecured basis to fund a portion of the cash consideration for the Endeavor Acquisition, repay certain debt of Endeavor or pay fees, costs and expenses related to the acquisition. The undrawn Tranche B Loans were terminated on August 2, 2024. As of December 31, 2024, the Company had $900 million in outstanding borrowings under the Tranche A Loans. During the year ended December 31, 2024, the weighted average interest rate on borrowings under the Term Loan Agreement was 6.13%.

The initial Tranche A Loans were made in a single borrowing on the date of closing of the Endeavor Acquisition (the “Closing Date”) and any remaining outstanding amounts will mature and be payable in full on the first anniversary of the Closing Date.

Outstanding borrowings under the Term Loan Agreement bear interest at a per annum rate elected by the Company that is equal to (i) term SOFR plus 0.10% (“Adjusted Term SOFR”) or (ii) an alternate base rate (which is equal to the greatest of the prime rate, the federal funds effective rate plus 0.50%, and 1-month Adjusted Term SOFR plus 1.0%), in each case plus the applicable margin. After giving effect to the amendment, (i) the applicable margin ranges from 0.125% to 1.000% per annum in the case of the alternate base rate, and from 1.125% to 2.000% per annum in the case of Adjusted Term SOFR, in each case based on the pricing level, and (ii) the commitment fee is equal to 0.125% per annum on the aggregate principal amount of the commitments. The pricing level depends on the Company’s long-term senior unsecured debt ratings.
Bridge Facility

On February 11, 2024, in connection with the Endeavor Acquisition, Diamondback Energy, Inc., as guarantor, obtained commitments of $8.0 billion to a 364-day senior unsecured term loan facility with Diamondback E&P LLC, as borrower, and Citigroup Global Markets Inc., as administrative agent (the “Bridge Facility”). The Bridge Facility was reduced on a dollar-for-dollar basis by the amount of the Term Loan Agreement to $6.5 billion on February 29, 2024 and was further reduced on a dollar-for-dollar basis by the amount of the April 2024 Notes (as defined below) to $1.0 billion. The undrawn Bridge Facility was terminated on June 4, 2024. The Company recorded additional interest expense of $28 million during the year ended December 31, 2024, respectively, related to the amortization and write-off of debt issuance costs incurred for the Bridge Facility.

2024 Issuance of Notes

On April 18, 2024, Diamondback Energy, Inc., as borrower, and Diamondback E&P LLC, as guarantor, issued an aggregate of $5.5 billion in senior notes, consisting of (i) $850 million aggregate principal amount of 5.200% Senior Notes due April 18, 2027 (the “2027 Notes”), (ii) $850 million aggregate principal amount of 5.150% Senior Notes due January 30, 2030 (the “2030 Notes”), (iii) $1.3 billion aggregate principal amount of 5.400% Senior Notes due April 18, 2034 (the “2034 Notes”), (iv) $1.5 billion aggregate principal amount of 5.750% Senior Notes due April 18, 2054 (the “2054 Notes”), and (v) $1.0 billion aggregate principal amount of 5.900% Senior Notes due April 18, 2064 (the “2064 Notes” and together with the 2027 Notes, the 2030 Notes the 2034 Notes and the 2054 Notes, the “April 2024 Notes”). The April 2024 Notes are included in the Guaranteed Senior Notes for the Company. The Company received net proceeds of $5.5 billion, after underwriters’ discounts and transaction costs. Interest on the 2030 Notes is payable semi-annually on January 30 and July 30 of each year, beginning on July 30, 2024. Interest on each other series of notes will be payable semi-annually on April 18 and October 18 of each year. The Company used the net proceeds to fund a portion of the cash consideration for the Endeavor

2023 Issuance of Notes

On October 19, 2023, Viper completed an offering of $400 million in aggregate principal amount of its 7.375% Senior Notes maturing on November 1, 2031 (the “Viper 2031 Notes”). Viper received net proceeds of approximately $394 million, after deducting the initial purchasers’ discount and transaction costs, from the Viper 2031 Notes. Viper loaned the gross proceeds to Viper LLC, which used the proceeds to partially fund the cash portion of the GRP Acquisition.

Retirement of Notes

In the first quarter of 2024, the Company opportunistically repurchased principal amounts of $22 million of its 3.125% Senior Notes due 2031 and $6 million of its 3.500% Senior Notes due 2029 for total cash consideration, including accrued interest paid of $25 million. These repurchases resulted in an immaterial gain on extinguishment of debt during the year ended December 31, 2024.

In the second quarter of 2023, the Company repurchased principal amounts of $30 million of its 3.250% Senior Notes due 2026 and $100 million of its 3.500% Senior Notes due 2029 for total cash consideration, including accrued interest paid, of $124 million. These repurchases resulted in an immaterial loss on extinguishment of debt during the year ended December 31, 2023.

The Company redeemed the principal amount of its $10 million 5.250% Senior Notes due 2023 at maturity on May 1, 2023.    

Guaranteed Senior Notes

The Guaranteed Senior Notes are the Company’s senior unsecured obligations and are fully and unconditionally guaranteed by Diamondback E&P, are senior in right of payment to any of the Company’s future subordinated indebtedness and rank equal in right of payment with all of the Company’s existing and future senior indebtedness.

The Viper Notes are senior unsecured obligations of Viper, initially guaranteed on a senior unsecured basis by Viper LLC, and will pay interest semi-annually. The Company will not guarantee the Viper Notes. In the future, each of Viper’s restricted subsidiaries that either (i) guarantees any of its or a guarantor’s indebtedness, or (ii) is a domestic restricted
subsidiary and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Viper Notes.

Viper LLC’s Credit Agreement

On November 22, 2024, Viper LLC entered into a thirteenth amendment to its existing credit agreement, which among other things, (i) maintained a maximum credit amount of $2.0 billion, (ii) maintained a borrowing base of $1.3 billion, and (iii) increased the aggregate elected commitment amount from $850 million to $1.3 billion.

As of December 31, 2024, Viper LLC had $261 million of outstanding borrowings and $1.0 billion available for future borrowings under its credit agreement. The weighted average interest rates on borrowings under Viper LLC’s credit agreement were 7.34%, 7.41%, and 4.22% for the years ended December 31, 2024, 2023 and 2022, respectively. Viper LLC’s credit agreement will mature on September 22, 2028.

The outstanding borrowings under Viper LLC’s credit agreement bear interest at a rate elected by Viper LLC that is equal to (i) term SOFR plus 0.10% (“Adjusted Term SOFR”), or (ii) an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.50% and 1-month Adjusted Term SOFR plus 1.0%), in each case plus the applicable margin. The applicable margin ranges from 1.00% to 2.00% per annum in the case of the alternative base rate and from 2.00% to 3.00% per annum in the case of Adjusted Term SOFR, in each case depending on the amount of the loans outstanding in relation to the commitment, which is calculated using the least of the maximum credit amount, the aggregate elected commitment 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. The credit agreement is secured by substantially all the assets of Viper and Viper LLC.

The Viper LLC 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, excess cash and entering into certain swap agreements and require the maintenance of the financial ratios described below.
Financial CovenantRequired Ratio
Ratio of total net debt to EBITDAX, as defined in the Viper LLC credit agreement
Not greater than 4.0 to 1.0
Ratio of current assets to liabilities, as defined in the Viper LLC credit agreement
Not less than 1.0 to 1.0
Ratio of secured debt to EBITDAX, as defined in the Viper LLC credit agreement
Not greater than 2.5 to 1.0

As of December 31, 2024, Viper LLC was in compliance with all financial maintenance covenants under the Viper LLC credit agreement.

Interest Expense

The following amounts have been incurred and charged to interest expense for the years ended December 31, 2024, 2023 and 2022:

Year Ended December 31,
202420232022
(In millions)
Interest expense$624 $346 $272 
Other fees and expenses3 2 12 
Less: interest income156 18 6 
Less: capitalized interest336 171 124 
Interest expense, net$135 $159 $154