Diamondback Energy, Inc. (Diamondback) operates as an independent oil and natural gas company.
The company focuses on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.
The company operates through the upstream segment.
The company’s activities are primarily focused on horizontal development of the Spraberry and Wolfcamp formations of the Midland Basin and the Wolfcamp and Bone Sprin...
Diamondback Energy, Inc. (Diamondback) operates as an independent oil and natural gas company.
The company focuses on the acquisition, development, exploration, and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.
The company operates through the upstream segment.
The company’s activities are primarily focused on horizontal development of the Spraberry and Wolfcamp formations of the Midland Basin and the Wolfcamp and Bone Spring formations of the Delaware Basin, both of which are part of the larger Permian Basin in West Texas and New Mexico. These formations are characterized by a high concentration of oil and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates. The company’s publicly traded subsidiary Viper Energy, Inc., which it refers to as Viper, owns mineral interests primarily in the Permian Basin. As of December 31, 2024, the company owned approximately 45% of Viper’s outstanding shares of common stock.
Acquisitions
Diamondback Acquisition and Divestiture
Endeavor Acquisition
On September 10, 2024, the company completed its acquisition of Endeavor Parent, LLC (‘Endeavor’) (the ‘Endeavor Acquisition’) subject to certain customary post-closing adjustments, and approximately 117.27 million shares of the company’s common stock. The Endeavor Acquisition included approximately 500,849 gross (361,927 net) acres, which are primarily located in the Permian Basin.
Viper Acquisitions
Viper Tumbleweed Acquisitions
In September and October of 2024, Viper completed a series of related acquisitions including the Viper TWR Acquisition, the Viper Q Acquisition and the Viper M Acquisition, collectively the (‘Viper Tumbleweed Acquisitions’).
On October 1, 2024, Viper acquired all of the issued and outstanding equity interests in TWR IV, LLC and TWR IV SellCo, LLC from Tumbleweed Royalty IV, LLC (‘TWR IV’) and TWR IV SellCo Parent, LLC (the ‘Viper TWR Acquisition’).
Business Strategy
The company’s business strategies are to leverage its experience operating in the Permian Basin; pursue strategic acquisitions with substantial resource potential; and deliver on the company’s commitment to environmental, social and governance (‘ESG’) performance.
Properties
Location and Land
The Permian Basin area covers a significant portion of western Texas and eastern New Mexico and is considered one of the major producing basins in the United States. As of December 31, 2024, the company’s total acreage position in the Permian Basin was approximately 1,077,697 gross (860,719 net) acres, which consisted primarily of 910,991 gross (737,181 net) acres in the Midland Basin and 161,981 gross (123,218 net) acres in the Delaware Basin. In addition, as of December 31, 2024, the company’s publicly traded subsidiary, Viper, owned mineral interests underlying approximately 987,861 gross acres (35,671 net) royalty acres in the Permian Basin. Approximately 52% of these net royalty acres are operated by the company.
Regulation
The company is subject to regulation by the U.S. Department of Transportation, or DOT, under the Hazardous Liquids Pipeline Safety Act of 1979, or HLPSA, and comparable state statutes with respect to design, installation, testing, construction, operation, replacement and management of pipeline facilities.
The company is also subject to the Pipeline Safety Improvement Act of 2002. The Pipeline Safety and Job Creation Act, enacted in 2011, and the Protecting its Infrastructure of Pipelines and Enhancing Safety Act of 2016, also known as the PIPES Act, enacted in 2016, amended the HLPSA and increased safety regulation.
The company is subject to the requirements of the federal Occupational Safety and Health Act, or OSHA, and comparable state statutes, whose purpose is to protect the health and safety of workers. Moreover, the OSHA hazard communication standard, the EPA community right-to-know regulations under Title III of the federal Superfund Amendment and Reauthorization Act and comparable state statutes require that information be maintained concerning hazardous materials used or produced in the company’s operations and that this information be provided to employees, state and local government authorities and citizens.
History
Diamondback Energy, Inc. was founded in 2007. The company was incorporated in Delaware in 2011.