Diamondback Energy, Inc.
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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FY2025 · Filed Feb 25, 2026
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Property and Equipment
- PROPERTY AND EQUIPMENT
Property and equipment includes the following as of the dates indicated:
| December 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Oil and natural gas properties: | ||
| Proved properties | $71,588 | $59,574 |
| Unproved properties | 23,941 | 22,666 |
| Gross oil and natural gas properties | 95,529 | 82,240 |
| Accumulated depletion | (15,974) | (11,083) |
| Accumulated impairment | (11,606) | (7,954) |
| Oil and natural gas properties, net | 67,949 | 63,203 |
| Other property, equipment and land | 874 | 1,440 |
| Accumulated depreciation, amortization, accretion and impairment | (202) | (171) |
| Total property and equipment, net | $68,621 | $64,472 |
The following table presents the balance of costs not subject to depletion as of December 31, 2025 by the period in which the costs were incurred:
| 2025 | 2024 | 2023 | Prior | Total | |
|---|---|---|---|---|---|
| (In millions) | |||||
| Balance of costs not subject to depletion: | |||||
| Acquisition costs | $4,528 | $12,821 | $1,043 | $4,456 | $22,848 |
| Capitalized interest | 564 | 220 | 111 | 101 | 996 |
| Development costs | 97 | — | — | — | 97 |
| Total not subject to depletion | $5,189 | $13,041 | $1,154 | $4,557 | $23,941 |
Costs associated with unevaluated properties are not subject to depletion and excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. Although the evaluation process has not been completed on our unevaluated properties, the Company currently estimates these costs will be added to the amortization base within fifteen years.
The Company capitalized internal costs of approximately $102 million, $90 million and $66 million for the years ended December 31, 2025, 2024 and 2023, respectively.
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. As a result of the decline in commodity prices during 2025, the Company recorded a non-cash ceiling test impairment for the year ended December 31, 2025 of $3.7 billion, which is included in accumulated depletion, depreciation, amortization and impairment on the consolidated balance sheet. The impairment charge affected the Company’s reported net income but did not reduce its cash flow. No impairment expense was recorded for the years ended December 31, 2024 and 2023.
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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