Diamondback Energy Inc

10. STOCKHOLDERS’ EQUITY AND EARNINGS (LOSS) PER SHARE

Stock Repurchase Program

On September 18, 2024, the Company’s board of directors approved an increase in the Company’s common stock repurchase program from $4.0 billion to $6.0 billion of the Company’s outstanding common stock, excluding excise tax. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and are subject to market conditions, applicable regulatory and legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. During the three and nine months ended September 30, 2024 and 2023, the Company repurchased approximately $515 million, $557 million, $56 million and $709 million of common stock under this repurchase program, respectively, in each case excluding excise tax. As of September 30, 2024, approximately $3.1 billion remained available for future repurchases under the Company’s common stock repurchase program, excluding excise tax.

Viper 2024 Equity Offering

On September 13, 2024, Viper completed an underwritten public offering of approximately 11.5 million shares of its Class A Common Stock, which included 1.5 million shares issued pursuant to an option to purchase additional shares of Class A Common Stock granted to the under writers, at a price to the public of $42.50 per share for total net proceeds to Viper of approximately$476 million, after underwriters’ discounts andtransaction costs (the “Viper 2024 Equity Offering”). The net proceeds were used to fund a portion of the cash consideration forthe Viper TWR Acquisition (as defined below in Note 17—Subsequent Events). Pending closing of the Viper TWR Acquisition, Viper temporarily repaid all of the amounts outstanding under the Viper LLC credit agreement with a portion of the net proceeds from the Viper 2024 Equity Offering.

Change in Ownership of Consolidated Subsidiaries

Non-controlling interests in the accompanying condensed consolidated financial statements represent minority interest ownership in Viper and are presented as a component of equity. When the Company’s relative ownership interests in Viper change, adjustments to non-controlling interest and additional paid-in-capital, tax effected, will occur.

The following table summarizes changes in the ownership interest in consolidated subsidiaries during the periods presented:

Dividends

The following table presents dividends and distribution equivalent rights paid on the Company’s common stock during the respective periods:

Earnings (Loss) Per Share

The Company’s earnings (loss) per share amounts have been computed using the two-class method. The two-class method is an earnings allocation proportional to the respective ownership among holders of common stock and participating securities. Basic earnings (loss) 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 non-participating securities outstanding for the period. Additionally, the per share earnings of Viper 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) Unvested restricted stock awards and performance stock awards that contain non-forfeitable distribution equivalent rights are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method.