Diamondback Energy Inc
For the period ended Mar 31, 2025. Filed May 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 7, 2025
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6. Property and Equipment
- PROPERTY AND EQUIPMENT
Property and equipment includes the following as of the dates indicated:
| March 31, | December 31, | |
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Oil and natural gas properties: | ||
| Subject to depletion | $61,708 | $59,574 |
| Not subject to depletion | 22,019 | 22,666 |
| Gross oil and natural gas properties | 83,727 | 82,240 |
| Accumulated depletion | (12,143) | (11,083) |
| Accumulated impairment | (7,954) | (7,954) |
| Oil and natural gas properties, net | 63,630 | 63,203 |
| Other property, equipment and land | 1,452 | 1,440 |
| Accumulated depreciation, amortization, accretion and impairment | (186) | (171) |
| Total property and equipment, net | $64,896 | $64,472 |
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter which determines a limit, or ceiling, on the book value of proved oil and natural gas properties. No impairment expense was recorded for the three months ended March 31, 2025 or 2024 based on the results of the respective quarterly ceiling tests.
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 future trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. 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.
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