Diamondback Energy Inc

17. SUBSEQUENT EVENTS

Second Quarter 2024 Dividend Declaration

On August 1, 2024, the board of directors of the Company declared a cash dividend for the second quarter of 2024 of $2.34 per share of common stock, payable on August 22, 2024 to its stockholders of record at the close of business on August 15, 2024. The dividend consists of a base quarterly dividend of $0.90 per share of common stock and a variable quarterly dividend of $1.44 per share of common stock. Future base and variable dividends are at the discretion of the board of directors of the Company.

WTG Midstream Transaction

The Company owns a 25% non-operating equity investment in Remuda Midstream Holdings LLC, referred to as the WTG joint venture. On July 15, 2024, the WTG joint venture sold its WTG Midstream LLC subsidiary (the “WTG Midstream transaction”), for which the Company received as its portion of the consideration 10.1 million common units issued by Energy Transfer LP (NYSE: ET) and $190 million in cash, subject to customary post-close adjustments. Of the 10.1 million common units received, approximately 4.1 million is held in escrow pursuant to a separate escrow agreement. The Company is currently evaluating the financial impact that this transaction will have on its operating results for the third quarter of 2024. The Company intends to use its net proceeds from the WTG Midstream transaction to reduce debt associated with the pending Endeavor Acquisition.