Diamondback Energy, Inc.
For the period ended Jun 30, 2025. Filed Aug 6, 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.
Jun 30, 2025 · Filed Aug 6, 2025
FANG$178.96-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0001539838-25-000066
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001539838-25-000127
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 164 previous paragraphs and 179 current paragraphs.
68 unchanged; 72 reworded; 36 added; 21 removed; 3 previous and 3 current paragraphs rearranged.
Tables are not compared: 35 previous and 35 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (36)
Current report
Viper Acquisition
Current report
Pending Sitio Acquisition
Current report
On June 2, 2025, Viper and Viper LLC entered into the Sitio Merger Agreement with Sitio and Sitio OpCo in an all-equity transaction valued at approximately $4.1 billion, including the redemption of Sitio’s net debt of approximately $1.1 billion as of June 30, 2025. The mineral and royalty interests to be acquired in the pending Sitio Acquisition represent approximately 25,300 net royalty acres in the Permian Basin and approximately 9,000 net royalty acres in the Denver-Julesburg, Eagle Ford and Williston basins, for total acreage of approximately 34,300 net royalty acres. Upon completion of the pending Sitio Acquisition, Viper expects to own 85,700 net royalty acres in the Permian Basin, approximately 43% of which will be operated by us and an average 1.8% net royalty interest in approximately 33,300 gross producing horizontal wells (approximately 608 net wells) with estimated average production of 64 - 68 MBO/d (122 - 130 MBOE/d) in the fourth quarter of 2025. The pending Sitio Acquisition is expected to close in the third quarter of 2025, subject to approval by a majority of the stockholders of Sitio and the satisfaction or waiver of other closing conditions. On June 2, 2025, Diamondback, Diamondback E&P and EER LLP, who together hold a majority of the voting power of Viper’s common stock, delivered a written consent approving the Sitio Merger Agreement, which constitutes the requisite approval of Viper’s stockholders under the Sitio Merger Agreement.
Current report
Repurchase of Notes
Current report
Viper 2025 Notes Offering and Redemption of Notes
Current report
On July 23, 2025, Viper LLC issued the Viper 2025 Notes for an aggregate principal amount of $1.6 billion. Viper used a portion of the net proceeds from the Viper 2025 Notes to redeem or satisfy and discharge, as applicable, $780 million in aggregate principal amount of their previously outstanding senior notes, including accrued interest paid and redemption premiums. Viper intends to use the remaining net proceeds (i) if the pending Sitio Acquisition is consummated, to redeem Sitio’s 7.875% senior notes due 2028, repay borrowings under Sitio’s revolving credit facility and pay any fees, costs and expenses related to the redemption or repayment of such debt, and (ii) for general corporate purposes. Viper LLC is not obligated to redeem or repurchase the Viper 2025 Notes if the pending Sitio Acquisition is not consummated.
Current report
Viper 2025 Term Loan
Current report
On July 23, 2025, Viper LLC entered into the Viper 2025 Term Loan for a two-year senior unsecured delayed draw term loan facility in an aggregate principal amount of $500 million. Viper intends to draw on the term loan to partially redeem or repay, as applicable, Sitio’s debt at the closing of the pending Sitio Acquisition.
Current report
Viper LLC’s Revolving Credit Facility
Current report
On June 12, 2025, Viper and Viper LLC entered into the Viper LLC Revolving Credit Facility which replaced the previous revolving credit facility. As of June 30, 2025, the Viper LLC Revolving Credit Facility is guaranteed by certain subsidiaries of Viper LLC, and upon completion of the pending Sitio Acquisition, such subsidiary guarantee will be released and New Viper will become a guarantor under the Viper LLC Revolving Credit Facility. The Viper LLC Revolving Credit
Current report
Facility provides for a senior unsecured revolving credit facility with a commitment amount of $1.5 billion and will mature on June 12, 2030, unless extended in accordance with the terms thereof.
Current report
2025 Term Loan Agreement
Current report
(2)The average lateral length for the wells completed during the six months ended June 30, 2025 was 12,656 feet. Operated completions during the six months ended June 30, 2025 consisted of 53 Wolfcamp B wells, 49 Lower Spraberry wells, 44 Wolfcamp A wells, 28 Jo Mill wells, 21 Middle Spraberry wells, 12 Dean wells, 10 Upper Spraberry wells, eight Third Bone Spring wells, six Wolfcamp D wells, six Barnett wells and two Second Bone Spring wells.
Current report
In the second quarter of 2025, we released four rigs, reducing our activity from 17 rigs to 13 rigs. We currently expect to run 13 to 14 rigs and five completion crews for the remainder of 2025 to execute on our capital and operating plan discussed below. We continue to test ways to maximize efficiency and reduce costs in all facets of our organization, fighting the headwinds of lower commodity prices and increased steel prices due to tariffs directly increasing our casing costs. We expect casing costs to increase almost 25% through the course of 2025, raising the breakeven cost of nearly every well drilled in the United States in 2025.
Current report
Our revised development plan, which does not give effect to the pending Sitio Acquisition, is presented below. Under our revised development plan, given the volatility in commodity markets and macroeconomic uncertainty, we intend to hold oil production flat for the remainder of 2025, reduce capital expenditures while maintaining one of the highest drilled but uncompleted inventories in the Permian Basin and use free cash flow to pay down debt and repurchase stock under our enhanced stock repurchase program. We believe this plan will allow us to maintain flexibility at current commodity prices and when commodity prices improve.
Current report
(1) Includes approximately $20-25 million from gains on sales of assets expected to close in the third quarter.
Current report
(2) Includes estimated favorable impact on the year-to-date period of tax legislation enacted in the third quarter.
Current report
Lease operating expenses increased for the second quarter of 2025 compared to the first quarter of 2025 primarily due to (i) a $14 million increase due to higher production volumes primarily driven by the Double Eagle Acquisition and to a lesser extent, legacy wells, (ii) $13 million in additional well workover costs, and (iii) a $10 million increase related to changes in cost estimates for water disposal associated with the Endeavor Acquisition, and (iv) other individually insignificant offsetting changes.
Current report
The increase in gathering, processing and transportation expenses is primarily attributable to (i) a $15 million increase associated with transportation costs incurred to meet our minimum volume commitments on certain pipelines, (ii) an $11 million increase related to production volumes from properties acquired in connection with the Double Eagle Acquisition, (iii) a $7 million increase due to a new firm transportation contract that became effective in the second quarter of 2025, and (iv) other individually insignificant items.
Current report
General and administrative expenses decreased in the second quarter of 2025 compared to the first quarter of 2025 primarily due to a reduction in anticipated discretionary employee compensation.
Current report
(1)The three months ended June 30, 2025 includes cash paid on interest rate swaps terminated prior to their contractual maturity of $52 million.
Current report
The gain on extinguishment of debt in the second quarter of 2025 is due to the Company opportunistically repurchasing an aggregate principal amount of $252 million of its senior notes for total cash consideration, including accrued interest paid, of approximately $196 million.
Current report
See Note 9—Debt of the notes to the condensed consolidated financial statements for further details regarding the Company’s retirement of a portion of its senior notes during the second quarter of 2025.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Other operating income increased for the six months ended June 30, 2025 compared to the same period in 2024 primarily due to (i) recording $25 million in midstream and service revenues attributable to assets acquired in the Endeavor Acquisition, and (ii) a $10 million increase in lease bonus income received during 2025. These increases were partially offset by a $10 million reduction in midstream revenues following the divestiture of certain midstream assets in connection with the TRP Exchange that closed in the fourth quarter of 2024.
Current report
Lease operating expenses increased for the six months ended June 30, 2025 compared to the same period in 2024 primarily due to (i) $253 million of costs associated with operating wells acquired in the Endeavor Acquisition, (ii) a $44 million increase from higher legacy production volumes, (iii) a $35 million increase in well workover costs, (iv) $10 million of costs associated with operating wells acquired in the Double Eagle Acquisition, and (v) other individually insignificant changes.
Current report
The increase in gathering, processing and transportation expenses for the six months ended June 30, 2025 compared to the same period in 2024 is attributable primarily to (i) $25 million associated with production from new wells completed between the six months ended June 30, 2025 and June 30, 2024, (ii) $22 million from additional production from wells acquired in the Endeavor Acquisition, (iii) $15 million associated with transportation costs incurred to meet our minimum volume commitments on certain pipelines, (iv) $12 million related to new firm transportation contracts that became effective during the six months ended June 30, 2025, (v) $11 million from properties acquired as part of the Double Eagle Acquisition, (vi) $7 million from the annual escalation of contractual gathering and transportation rates, and (vii) $5 million related to properties acquired in the TRP Exchange.
Current report
(1)The six months ended June 30, 2025 includes cash paid on interest rate swaps terminated prior to their contractual maturity of $52 million.
Current report
The increase in gain (loss) on extinguishment of debt is primarily attributable to the Company opportunistically repurchasing a portion its senior notes during the second quarter of 2025 as discussed in“—Results of Operations -Comparison of the Three Months Ended June 30, 2025 and March 31, 2025.”
Current report
See Note 9—Debt of the notes to the condensed consolidated financial statements for further details regarding the Company’s retirement of a portion of its senior notes during the second quarter of 2025.
Current report
Viper LLC’s Revolving Credit Facility and Other Viper Debt Instruments
Current report
On July 23, 2025, Viper LLC entered into the Viper 2025 Term Loan for a two-year senior unsecured delayed draw term loan facility in an aggregate principal amount of $500 million. Viper intends to draw on the term loan to partially redeem or repay, as applicable, Sitio’s debt at the closing of the pending Sitio Acquisition.
Current report
On July 23, 2025, Viper issued $1.6 billion in aggregate principal amount of the Viper 2025 Notes for net proceeds of approximately $1.58 billion, after underwriters’ discounts and transaction costs. Viper used a portion of the net proceeds to redeem or satisfy and discharge, as applicable, $780 million in aggregate principal amount of their previously outstanding senior notes. Viper intends to use the remaining net proceeds (i) if the pending Sitio Acquisition is consummated, to redeem Sitio’s 7.875% senior notes due 2028, repay borrowings under Sitio’s revolving credit facility and pay any fees, costs and expenses related to the redemption or repayment of such debt, and (ii) for general corporate purposes. Viper LLC is not obligated to redeem or repurchase the Viper 2025 Notes if the pending Sitio Acquisition is not consummated.
Current report
Viper Redemption of Notes
Current report
On July 23, 2025, Viper redeemed all of their Viper 2031 Notes and satisfied and discharged all of their Viper 2027 Notes using proceeds from the Viper 2025 Notes Offering. Viper intends to use the remaining proceeds from the Viper 2025 Notes Offering and borrowings under the Viper 2025 Term Loan (i) if the pending Sitio Acquisition is consummated, to redeem Sitio’s 7.875% senior notes due 2028, repay borrowings under Sitio’s revolving credit facility and pay any fees, costs and expenses related to the redemption or repayment of such debt, and (ii) for general corporate purposes. The pending Sitio Acquisition is expected to close in the third quarter of 2025, subject to the satisfaction or waiver of closing conditions.
Current report
Interest on Viper 2025 Notes
Removed paragraphs (21)
Previous report
Acquisitions and Divestitures
Previous report
See Note 17—Subsequent Events of the notes to the condensed consolidated financial statements for further discussion of the transactions above.
Previous report
Term Loan Agreement
Previous report
2035 Notes Offering
Previous report
On March 20,2025, we issued the 2035 Notes for net proceeds of $1.2 billion, after underwriters’ discounts and transaction costs, which we used to fund a portion of the cash consideration for the Double Eagle Acquisition.
Previous report
On February 3, 2025, Viper completed an underwritten public offering of approximately 28.34 million shares of its Class A common stock, which included 3.70 million shares issued pursuant to an option to purchase additional shares of its Class A common stock granted to the underwriters at a price to the public of $44.50 per share for total net proceeds to Viper of approximately 1.2 billion, after the underwriters’ discount and estimated transaction costs.
Previous report
Given recent weakness in commodity prices, we have reduced our activity levels and lowered our capital budget to prioritize free cash flow generation. We believe that our revised development plan enhances capital efficiency and provides flexibility to adjust our activity levels up or down, as appropriate, if commodity prices strengthen or weaken further.
Previous report
(1) Includes approximately $170 million of cash taxes related to the Viper dropdown transaction.
Previous report
Lease operating expenses decreased in total and on a per BOE basis for the first quarter of 2025 compared to the fourth quarter of 2024 primarily due to (i) a $38 million reduction in cost estimates related to producing properties acquired in the Endeavor Acquisition, (ii) a $7 million decrease due to applying a contingent volume discount for water services from Deep Blue in the first quarter of 2025, (iii) a $6 million reduction in well workover expenses, and (iv) other individually insignificant changes.
Previous report
The increase in gathering, processing and transportation expenses is primarily attributable to (i) a $6 million increase from the restructuring of certain sales contracts acquired from Endeavor in the first quarter of 2025, for which gathering and transportation charges were previously recorded as a reduction to revenue, (ii) increases in the contractual pricing of our gathering, processing and transportation costs, and (iii) other individually insignificant items.
Previous report
Lease operating expenses increased in total for the three months ended March 31, 2025 compared to the same period in 2024 primarily due to costs associated with operating wells acquired as part of the Endeavor Acquisition.
Previous report
The increase in gathering, processing and transportation expenses for the three months ended March 31, 2025 compared to the same period in 2024 is attributable primarily to (i) $7 million from the restructuring in 2025 of certain revenue contracts acquired from Endeavor, for which gathering and transportation charges were previously recorded as a reduction to revenue, and (ii) growth in legacy production volumes.
Previous report
At March 31, 2025, we had approximately $900 million of Tranche A Loans and $14 million of senior notes maturing in the next 12 months. On May 5, 2025, the Company used the cash proceeds received from the 2025 Drop Down to repay in full and terminate the $900 million Tranche A Loans.
Previous report
As of March 31, 2025, the maximum credit amount available under our 2025 Term Loan Agreement was $1.5 billion, which was drawn in a single borrowing on April 1, 2025 to fund a portion of the cash consideration for the Double Eagle Acquisition. Our 2025 Term Loan Agreement matures on the second anniversary of the initial funding date.
Previous report
2035 Notes Offering
Previous report
On March 20, 2025, we issued the 2035 Notes for net proceeds of $1.2 billion, after underwriters’ discounts and transaction costs, which we used to fund a portion of the cash consideration for the Double Eagle Acquisition.
Previous report
Viper LLC’s Credit Agreement
Previous report
On May 1, 2025, we completed the 2025 Drop Down with Viper as discussed in Note 17—Subsequent Events of the notes to the condensed consolidated financial statements. Approximately $255 million of the cash consideration for this transaction was funded through borrowings under the Viper LLC credit agreement, reducing the amount that remained available for future borrowings under this facility to $995 million as of May 1, 2025.
Previous report
During the first quarter of 2025, Viper completed the Viper 2025 Equity Offering for total net proceeds of approximately $1.2 billion, after the underwriters’ discount and transaction costs. For additional discussion of the Viper 2025 Equity Offering, see Note 10—Stockholders' Equity and Earnings (Loss) Per Share of the notes to the condensed consolidated financial statements.
Previous report
In the second quarter of 2025, we opportunistically repurchased $220 million in principal amounts of our senior notes in open market transactions for total cash consideration of $167 million, at an average of 75.3% of par value. We may continue to opportunistically repurchase principal amounts of our and Viper’s senior notes in future periods.
Previous report
See Note 17—Subsequent Events of the notes to the condensed consolidated financial statements for further discussion of these transactions.
Reworded paragraphs (72)
Previous wording
First Quarter 2025 Financial and Operating Highlights
Current wording
Second Quarter 2025 Financial and Operating Highlights
Previous wording
•Recorded net income of $1.4 billion.
Current wording
•Recorded net income of $699 million.
Previous wording
•Increased our annual base dividend to $4.00 per share of common stock, paid dividends to stockholders of $290 million during the first quarter of 2025 and declared a base cash dividend payable in the second quarter of 2025 of $1.00 per share of common stock.
Current wording
•Paid dividends to stockholders of $291 million during the second quarter of 2025 and declared a base cash dividend payable in the third quarter of 2025 of $1.00 per share of common stock.
Previous wording
•Repurchased $575 million of our common stock, excluding excise taxes, and had approximately $2.1 billion available for future repurchases under our common stock repurchase program at March 31, 2025.
Current wording
•Repurchased $398 million of our common stock, excluding excise taxes, and had approximately $1.7 billion available for future repurchases under our common stock repurchase program at June 30, 2025.
Previous wording
•Our cash operating costs were $10.48 per BOE, including lease operating expenses of $5.33 per BOE, cash general and administrative expenses of $0.72 per BOE and production and ad valorem taxes of $2.98 per BOE and gathering, processing and transportation expenses of $1.45 per BOE.
Current wording
•Our cash operating costs were $10.10 per BOE, including lease operating expenses of $5.26 per BOE, cash general and administrative expenses of $0.55 per BOE and production and ad valorem taxes of $2.56 per BOE and gathering, processing and transportation expenses of $1.73 per BOE.
Previous wording
•Our average production was 850.7 MBOE/d.
Current wording
•Our average production was 919.9 MBOE/d.
Previous wording
•Drilled 124 gross horizontal wells in the Midland Basin and two gross horizontal wells in the Delaware Basin, and turned 123 gross operated horizontal wells (116 in the Midland Basin and seven in the Delaware Basin) to production.
Current wording
•Drilled 121 gross horizontal wells in the Midland Basin and one gross horizontal well in the Delaware Basin, and turned 116 gross operated horizontal wells (108 in the Midland Basin and eight in the Delaware Basin) to production.
Previous wording
•Cash capital expenditures, excluding acquisitions, of $942 million.
Current wording
•Cash capital expenditures, excluding acquisitions, of $864 million.
Previous wording
On May 1, 2025, our wholly owned subsidiary EER LP divested the Endeavor Subsidiaries to Viper and Viper LLC in exchange for consideration consisting of (i) 1.0 billion in cash, and (ii) the issuance of 69.63 million Viper LLC units and an equal number of shares of Viper’s Class B common stock (which securities are exchangeable for an equal number of Viper’s Class A common stock), subject to transaction costs and certain customary post-closing adjustments. Viper funded the cash consideration for the 2025 Drop Down with a portion of the proceeds from the Viper 2025 Equity Offering and borrowings under Viper LLC’s credit agreement. The mineral and royalty interests held and divested by the Endeavor Subsidiaries at closing of the 2025 Drop Down represent approximately 22,847 net royalty acres located primarily in the Permian Basin. The Endeavor Subsidiaries sold in the 2025 Drop Down were acquired by us in the recently completed Endeavor Acquisition. On May 5, 2025, we used the cash proceeds received from the 2025 Drop Down to repay in full and terminate the $900 million Tranche A Loans.
Current wording
On May 1, 2025, our wholly owned subsidiary EER LP divested the Endeavor Subsidiaries to Viper and Viper LLC in exchange for consideration consisting of (i) $1.0 billion in cash, and (ii) the issuance of 69.63 million Viper LLC units and an equal number of shares of Viper’s Class B common stock (which securities are exchangeable for an equal number of Viper’s Class A common stock), subject to transaction costs and certain customary post-closing adjustments. Viper funded the cash consideration for the 2025 Drop Down with a portion of the proceeds from the Viper 2025 Equity Offering and borrowings under Viper LLC’s revolving credit facility. The mineral and royalty interests held and divested by the Endeavor Subsidiaries at closing of the 2025 Drop Down represented approximately 24,446 net royalty acres located primarily in the Permian Basin. The Endeavor Subsidiaries sold in the 2025 Drop Down were acquired by us in the recently completed Endeavor Acquisition.
Previous wording
On April 1, 2025, we completed the Double Eagle Acquisition for consideration of $3.0 billion in cash and approximately 6.84 million shares of our common stock, subject to transaction costs and certain customary post-closing adjustments. The Double Eagle Acquisition consists of approximately 67,700 gross (40,000 net) acres, which are primarily located in the Midland Basin, and approximately 407 gross (342 net) horizontal locations in primary development targets. We funded the cash portion of the Double Eagle Acquisition through a combination of proceeds from the 2035 Notes, proceeds from the 2025 Term Loan Agreement and borrowings under our credit facility.
Current wording
On April 1, 2025, we completed the Double Eagle Acquisition for consideration of $3.0 billion in cash and approximately 6.84 million shares of our common stock, subject to transaction costs and certain customary post-closing adjustments. The Double Eagle Acquisition consisted of approximately 67,700 gross (40,000 net) acres, which are primarily located in the Midland Basin, and approximately 407 gross (342 net) horizontal locations in primary development targets. We funded the cash portion of the Double Eagle Acquisition through a combination of proceeds from the 2035 Notes, proceeds from the 2025 Term Loan Agreement and borrowings under our credit facility.
Previous wording
In the second quarter of 2025, we opportunistically repurchased principal amounts of $111 million of our 4.400% Senior Notes due 2051, $89 million of our 4.250% Senior Notes due 2052 and $20 million of our 5.750% Senior Notes due 2054 in open market transactions for total cash consideration of $167 million, including accrued interest paid, at an average of 75.3% of par value.
Current wording
In the second quarter of 2025, we opportunistically repurchased an aggregate principal amount of approximately $252 million of our outstanding senior notes, which consisted of $27 million of our 3.125% Senior Notes due 2031, $111 million of our 4.400% Senior Notes due 2051, $94 million of our 4.250% Senior Notes due 2052 and $20 million of our 5.750% Senior Notes due 2054, all in open market transactions for total cash consideration of $196 million, including accrued interest paid, at an average of 76.8% of par value. Further, Viper also opportunistically repurchased principal amounts of $50 million of its Viper 2027 Notes in open market transactions for total cash consideration of $50 million, at an average of 99.7% of par value. We may in the future opportunistically repurchase outstanding debt securities, in open market or privately negotiated transactions.
Previous wording
In connection with the Double Eagle Acquisition, we entered into the 2025 Term Loan Agreement. The 2025 Term Loan Agreement provided the Company with the ability to borrow up to $1.5 billion, which we drew in a single borrowing to fund a portion of the cash consideration for the Double Eagle Acquisition on April 1, 2025.
Current wording
In connection with the Double Eagle Acquisition, we entered into the 2025 Term Loan Agreement. The 2025 Term Loan Agreement provided the Company with the ability to borrow up to $1.5 billion, which we drew in a single borrowing to fund a portion of the cash consideration for the Double Eagle Acquisition.
Previous wording
See Note 9—Debt of the notes to the condensed consolidated financial statements for further discussion of the transactions above.
Current wording
See Note 9—Debt and Note 17—Subsequent Events of the notes to the condensed consolidated financial statements for further discussion of the transactions above.
Previous wording
Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Regional and worldwide economic activity, changes in trade or other government policies or regulations, including with respect to tariffs or other trade barriers, and any resulting trade tensions, extreme weather conditions and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. During the three months ended March 31, 2025 and 2024, WTI prices averaged $71.42 and $76.91 per Bbl, respectively, and Henry Hub prices averaged $3.87 and $2.10 per MMBtu, respectively.
Current wording
Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Regional and worldwide economic activity, changes in trade or other government policies or regulations, including with respect to tariffs or other trade barriers, and any resulting trade tensions, extreme weather conditions and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. During the six months ended June 30, 2025 and 2024, WTI prices averaged $70.81 and $78.81 per Bbl, respectively, and Henry Hub prices averaged$3.69 and $2.21 per MMBtu, respectively.
Previous wording
As of March 31, 2025, we had approximately 859,484 net acres, which primarily consisted of approximately 737,736 net acres in the Midland Basin and 121,748 net acres in the Delaware Basin.
Current wording
As of June 30, 2025, we had approximately 859,203 net acres, which primarily consisted of approximately 742,522 net acres in the Midland Basin and 116,681 net acres in the Delaware Basin.
Previous wording
(1)The average lateral length for the wells completed during the first quarter of 2025 was 11,978 feet. Operated completions during the first quarter of 2025 consisted of 30 Wolfcamp A wells, 28 Lower Spraberry wells, 22 Wolfcamp B wells, 17 Jo Mill wells, eight Middle Spraberry wells, four Dean wells, four Barnett wells, three Third Bone Spring wells, three Wolfcamp D wells, two Second Bone Spring wells and two Upper Spraberry wells.
Current wording
(1)The average lateral length for the wells completed during the second quarter of 2025 was 13,402 feet. Operated completions during the second quarter of 2025 consisted of 31 Wolfcamp B wells, 21 Lower Spraberry wells, 14 Wolfcamp A wells, 13 Middle Spraberry wells, 11 Jo Mill wells, eight Dean wells, eight Upper Spraberry wells, five Third Bone Spring wells, three Wolfcamp D wells and two Barnett wells.
Previous wording
As of March 31, 2025, we held interests in 31,344 gross (9,290 net) wells, including 2,390 gross (367 net) wells in which we have a non-operated working interest.
Current wording
As of June 30, 2025, we and Viper held interests in 33,922 gross (9,687 net) wells, including 2,499 gross (378 net) wells in which we have a non-operated working interest.
Previous wording
The following table presents our updated estimates of certain financial and operating results for the full year of 2025 and the second quarter of 2025:
Current wording
The following table presents our updated estimates of certain financial and operating results for the full year of 2025 and the third quarter of 2025:
Previous wording
Our oil, natural gas and natural gas liquids revenues for the first quarter of 2025 increased by $186 million to $3.7 billion compared to the fourth quarter of 2024. The net increase was due to an additional $306 million related to improved average prices received for our oil, natural gas and natural gas liquids production, which was partially offset by a $120 million decrease attributable to the 6% decline in our combined production volumes.
Current wording
Our oil, natural gas and natural gas liquids revenues for the second quarter of 2025 decreased by $0.3 billion to $3.3 billion compared to the first quarter of 2025. The net decrease was due to a $601 million reduction related to lower average prices received for our oil, natural gas and natural gas liquids production, which was partially offset by a $260 million increase attributable to the 9% growth in our combined production volumes.
Previous wording
Approximately 73% of the increase in our combined production volumes is attributable to the Endeavor Acquisition. The remainder of production growth is largely attributable to new wells added between periods.
Current wording
Approximately 65% of the increase in our combined production volumes is attributable to the Double Eagle Acquisition. The remainder of production growth is largely attributable to new wells added between periods.
Previous wording
In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes as a percentage of oil, natural gas and natural gas liquids revenue remained consistent from the fourth quarter of 2024 to the first quarter of 2025.
Current wording
In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes as a percentage of oil, natural gas and natural gas liquids revenue remained consistent from the first quarter of 2025 to the second quarter of 2025.
Previous wording
Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes remained relatively consistent in total and per BOE during the first quarter of 2025 compared to the fourth quarter of 2024.
Current wording
Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes remained relatively consistent during the second quarter of 2025 compared to the first quarter of 2025.
Previous wording
Depletion of proved oil and natural gas properties decreased by $56 million for the first quarter of 2025 compared to the fourth quarter of 2024. This change was comprised of a $65 million decrease due to the decline in production volumes, and a $9 million increase due to a slightly higher depletion rate in the first quarter of 2025.
Current wording
Depletion of proved oil and natural gas properties increased by $165 million in the second quarter of 2025 compared to the first quarter of 2025. This change was comprised of a $100 million increase due to growth in production volumes and a $65 million increase due to the higher depletion rate in the second quarter of 2025 following the Double Eagle Acquisition.
Previous wording
Merger and integration expenses for the first quarter of 2025 were primarily comprised of $23 million of employee severance costs and $2 million of IT and other integration service costs incurred in connection with the Endeavor Acquisition, $10 million in advisory and legal fees incurred as part of the TRP Exchange, and other individually insignificant costs. Merger and integration expenses for the three months ended December 31, 2024 were primarily comprised of employee severance costs related to the Endeavor Acquisition. See Note 5—Endeavor Energy Resources, LP Acquisition and Note 4—Acquisitions and Divestitures of the notes to the condensed consolidated financial statements for further details regarding the Endeavor Acquisition and the TRP Exchange, respectively.
Current wording
Merger and transaction expenses for the second quarter of 2025 primarily consisted of (i) $29 million of advisory, legal and filing fees related to the 2025 Drop Down, and (ii) $13 million of employee severance and other costs incurred in connection with the Endeavor Acquisition. Merger and transaction expenses for the first quarter of 2025 primarily consisted of (i) $23 million of employee severance costs and $2 million of information technology and other integration service costs incurred in connection with the Endeavor Acquisition, (ii) $10 million in advisory and legal fees related to the TRP Exchange, and (iii) other individually insignificant costs.
Previous wording
The change in gain (loss) on derivative instruments for the first quarter of 2025 compared to the fourth quarter of 2024 primarily reflects (i) an increase of $87 million in cash received on the settlement of natural gas contracts, (ii) an increase of $59 million in the value of our unsettled oil and natural gas contracts due to a decline in market prices for oil and natural gas compared to our contract prices, (iii) a $26 million increase in the value of our interest rate swap contracts driven by a decline in expected future interest rates, (iv) a $19 million decrease in cash paid on the settlement of interest rate swaps, and (v) other individually insignificant changes.
Current wording
The change from a gain to a loss on derivative instruments for the second quarter of 2025 compared to the first quarter of 2025 primarily reflects (i) a $407 million decrease in the value of our unsettled natural gas contracts due to an increase in market prices for natural gas compared to our contract prices, (ii) a $62 million decrease in cash received on the settlement of natural gas contracts, (iii) $59 million in additional cash payments made on our interest rate swaps, primarily due to the $52 million early termination of an aggregate $450 million of notional interest rate swaps during the second quarter of 2025, and (iv) other individually insignificant changes. These losses were partially offset by gains attributable to (i) a $56 million increase in the value of our remaining interest rate swap contracts driven by a decline in expected future interest rates, and (ii) a $55 million increase in the value of our unsettled oil contracts due to a decline in market prices for oil compared to our contract prices.
Previous wording
The increase in interest expense, net for the first quarter of 2025 compared to the fourth quarter of 2024 primarily consists of (i) a $15 million decrease in capitalized interest costs, which increased interest expense, and (ii) a $3 million increase in interest expense on senior notes primarily related to the newly issued 2035 Notes. These increases were partially offset by (i) a $5 million increase in interest income due to holding proceeds from the 2035 Notes in short-term interest bearing accounts until the closing date of the Double Eagle Acquisition, (ii) a $3 million decrease in interest expense on our Tranche A loans due to a $100 million repayment of principal in the fourth quarter of 2024, (iii) a $2 million decrease in interest expense on Viper’s revolving credit facility due to a lower average quarterly outstanding balance during the first quarter of 2025, and (iv) other individually insignificant changes.
Current wording
The increase in interest expense, net for the second quarter of 2025 compared to the first quarter of 2025 primarily consists of (i) $22 million in additional interest expense from the 2025 Term Loan Agreement that was drawn on the closing date of the Double Eagle Acquisition, (ii) $15 million in additional interest expense from the 2035 Notes issued in March 2025, and (iii) a $10 million increase in interest expense on our and Viper LLC’s revolving credit facilities due to higher average outstanding borrowings during the second quarter of 2025. These increases were partially offset by a (i) a $24 million increase in capitalized interest costs, which decreased interest expense, (ii) an $8 million decrease due to the termination of our Tranche A Loans in May of 2025, and (iii) other individually insignificant changes.
Previous wording
The increase in other income (expense), net for the first quarter of 2025 compared to the fourth quarter of 2024 is primarily due to a gain of $42 million related to the receipt of additional proceeds in connection with the WTG Midstream Transaction, which was partially offset by a $10 million loss on the remeasurement of an investment recorded at fair value and other individually insignificant items.
Current wording
The decrease in other income (expense), net for the second quarter of 2025 compared to the first quarter of 2025 is primarily due to the first quarter of 2025 including a gain of $42 million related to the receipt of additional proceeds in connection with the WTG Midstream Transaction, which was partially offset by an $11 million increase in the loss on the remeasurement of an investment recorded at fair value, and other individually insignificant items.
Previous wording
The change in our income tax provision for the first quarter of 2025 compared to the fourth quarter of 2024 was primarily due to the increase in pre-tax income between the periods which resulted largely from changes in revenues, operating expenses, and the gain on derivative contracts as discussed above. In addition to the increase in pre-tax income for the first quarter of 2025, the income tax provision for the fourth quarter of 2024 included a partially offsetting net tax benefit of $156 million due to the release of Viper’s remaining valuation allowance. See Note 12—Income Taxes of the notes to the condensed consolidated financial statements for further discussion of our income tax expense.
Current wording
The change in our income tax provision for the second quarter of 2025 compared to the first quarter of 2025 was primarily due to the decrease in pre-tax income between the periods which resulted largely from changes in revenues, operating expenses and the gain (loss) on derivative contracts as discussed above. See Note 12—Income Taxes of the notes to the condensed consolidated financial statements for further discussion of our income tax expense.
Previous wording
The following table sets forth selected operating data for the three months ended March 31, 2025 and 2024:
Current wording
The following table sets forth selected operating data for the six months ended June 30, 2025 and 2024:
Previous wording
Production Data. Substantially all of our revenues are generated through the sale of oil, natural gas and natural gas liquids production. The following tables set forth the mix of our production data by product and basin for the three months ended March 31, 2025 and 2024:
Current wording
Production Data. Substantially all of our revenues are generated through the sale of oil, natural gas and natural gas liquids production. The following tables set forth the mix of our production data by product and basin for the six months ended June 30, 2025 and 2024:
Previous wording
Our oil, natural gas and natural gas liquids revenues for the three months ended March 31, 2025 increased by $1.6 billion, or 74%, to $3.7 billion from the same period in 2024 primarily due to the 82% growth in our combined production volumes.
Current wording
Our oil, natural gas and natural gas liquids revenues for the six months ended June 30, 2025 increased by $2.7 billion, or 63%, to $7.0 billion from the same period in 2024 primarily due to a $3.4 billion increase driven by the 88% growth in our combined production volumes. This increase was partially offset by a net reduction of $665 million due to lower average prices received for our oil production for the six months ended June 30, 2025.
Previous wording
Net Sales of Purchased Oil. We entered into purchase transactions and separate sale transactions with third parties to satisfy certain of our unused oil pipeline capacity commitments. The following table presents the net sales of purchased oil from third parties for the three months ended March 31, 2025 and 2024:
Current wording
Net Sales of Purchased Oil. We entered into purchase transactions and separate sale transactions with third parties to satisfy certain of our unused oil pipeline capacity commitments. The following table presents the net sales of purchased oil from third parties for the six months ended June 30, 2025 and 2024:
Previous wording
Other Revenues. The following table shows the other insignificant revenues for the three months ended March 31, 2025 and 2024:
Current wording
Other Revenues. The following table shows the other revenues for the six months ended June 30, 2025 and 2024:
Previous wording
Lease Operating Expenses. The following table shows lease operating expenses for the three months ended March 31, 2025 and 2024:
Current wording
Lease Operating Expenses. The following table shows lease operating expenses for the six months ended June 30, 2025 and 2024:
Previous wording
Production and Ad Valorem Tax Expense. The following table shows production and ad valorem tax expense for the three months ended March 31, 2025 and 2024:
Current wording
Production and Ad Valorem Tax Expense. The following table shows production and ad valorem tax expense for the six months ended June 30, 2025 and 2024:
Previous wording
In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes increased by $89 million compared to the same period in 2024, due primarily to (i) $70 million in additional taxes related to production from the Endeavor Acquisition, and (ii) a refund recorded during the three months ended March 31, 2024 of $17 million for the settlement of an audit, which reduced production taxes in the prior year period.
Current wording
In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes as a percentage of revenue from sales of oil, natural gas and natural gas liquids increased in 2025 compared to 2024 due primarily to the 2024 period including a $17 million refund for the settlement of an audit, which reduced production taxes in the prior year period.
Previous wording
Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes for the three months ended March 31, 2025 as compared to the same period in 2024 increased by $20 million, primarily due to $28 million of additional taxes incurred on properties from the Endeavor Acquisition, which was partially offset by an $8 million decrease caused by a decline in expected ad valorem tax rates on legacy properties for 2025 compared to the rates during 2024.
Current wording
Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes for the six months ended June 30, 2025 as compared to the same period in 2024 increased by $40 million, primarily due to additional taxes incurred on properties acquired since June 30, 2024. The rate of ad valorem taxes per BOE and as a percentage of revenue declined due to a reduction in expected ad valorem tax rates on legacy properties for 2025 compared to the rates during 2024.
Previous wording
Gathering, Processing and Transportation Expense. The following table shows gathering, processing and transportation expense for the three months ended March 31, 2025 and 2024:
Current wording
Gathering, Processing and Transportation Expense. The following table shows gathering, processing and transportation expense for the six months ended June 30, 2025 and 2024:
Previous wording
Depreciation, Depletion, Amortization and Accretion. The following table provides the components of our depreciation, depletion, amortization and accretion expense for the three months ended March 31, 2025 and 2024:
Current wording
Depreciation, Depletion, Amortization and Accretion. The following table provides the components of our depreciation, depletion, amortization and accretion expense for the six months ended June 30, 2025 and 2024:
Previous wording
The increase in depletion of proved oil and natural gas properties of $613 million for the three months ended March 31, 2025 as compared to the same period in 2024 consists primarily of $373 million from growth in production volumes and $240 million due to an increase in the depletion rate resulting largely from the addition of higher value leasehold costs and proved reserves from the Endeavor Acquisition and, to a lesser extent, Viper’s Tumbleweed Acquisitions subsequent to the first quarter of 2024.
Current wording
The increase in depletion of proved oil and natural gas properties of $1.4 billion for the six months ended June 30, 2025 as compared to the same period in 2024 consists primarily of $809 million from growth in production volumes and $569 million due to an increase in the depletion rate resulting largely from the addition of higher value leasehold costs and proved reserves from the Endeavor Acquisition, the Double Eagle Acquisition and, to a lesser extent, Viper’s Tumbleweed Acquisitions subsequent to the second quarter of 2024.
Showing the first 40 of 72 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
See Note 4—Acquisitions and Divestitures of the notes to the condensed consolidated financial statements for further discussion of the transactions above.
Current report — wording carried from elsewhere
Approximately 63% of the increase in our combined production volumes is attributable to the Endeavor Acquisition and 6% is attributable to the Double Eagle Acquisition. The remainder of production growth is largely attributable to new wells added between periods.
Current report — wording carried from elsewhere
On July 23, 2025, Viper issued $1.6 billion in aggregate principal amount of the Viper 2025 Notes. In 2025, Viper does not expect to incur any future cash interest costs on the Viper 2025 Notes. Viper expects to incur future cash interest costs on the Viper 2025 Notes of approximately $174 million cumulatively in the years from 2026 through 2027, $174 million cumulatively in the years from 2028 through 2029 and $402 million between 2030 and 2035.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
See Note 10—Stockholders' Equity and Earnings (Loss) Per Share of the notes to the condensed consolidated financial statements for further discussion of the transactions above.
Previous report — wording carried elsewhere
Comparison of the Three Months Ended March 31, 2025 and 2024
Previous report — wording carried elsewhere
These cash inflows were partially offset by (i) $575 million of repurchases as part of the share repurchase program, (ii) $290 million of dividends paid to stockholders, (iii) $261 million in repayments on our credit facilities, net of borrowings, (iv) $95 million in dividends paid to non-controlling interest, (v) and various other individually insignificant costs.