Diamondback Energy, Inc.

7. RELATED PARTY TRANSACTIONS

Related Party Transactions

Deep Blue

The Company considers its equity method investments to be related parties. At December 31, 2025, the Company’s only significant equity method investment was its 30% equity ownership interest in Deep Blue, which is included in the caption “Other assets” on the Company’s consolidated balance sheets. Additionally, the Company has other related party transactions with Deep Blue in the ordinary course of business, which result in (i) certain accounts receivable due from Deep Blue, (ii) accrued capital expenditures and other accrued payables related to a commitment to fund certain capital expenditures on projects that were in process at the time of the Deep Blue transaction, and (iii) lease operating expenses and capitalized expenses related to fees paid to Deep Blue under a 15-year dedication for its produced water and supply water within a 12-county area of mutual interest in the Midland Basin.

For further discussion on additional transactions with Deep Blue, see Note 4—Acquisitions and Divestitures.

The following table presents related party balances that pertain to Deep Blue which are included in the consolidated balance sheets at December 31, 2025 and 2024:

During the years ended December 31, 2025 and 2024, the Company recorded approximately $199 million and $135 million, respectively, for water services provided by Deep Blue during the completion phase of wells. These costs were capitalized and any remaining unamortized costs are included in the caption “Oil and natural gas properties” on the consolidated balance sheets.

The following table presents the significant related party transactions included in the consolidated statements of operations for the years ended December 31, 2025 and 2024:

Viper

For discussion on related party transactions with Viper, see Note 4—Acquisitions and Divestitures—2025 Drop Down.

SGF Common Stock Repurchases

On November 28, 2025, the Company entered into a letter agreement with SGF FANG Holdings, LP (“SGF”). SGF includes certain Endeavor equityholders that received shares of the Company’s common stock as partial consideration for the Endeavor Acquisition, and as a result, is considered a related party of the Company under ASC Topic 850 “Related Party Disclosures.” The letter agreement provides SGF with the right, but not the obligation, to sell up to 3.0 million shares of the Company’s common stock to the Company per quarter through December 31, 2026 at the most recent Nasdaq closing price of such transaction, pursuant to the letter agreement. Pursuant to the letter agreement, on the same date, the Company agreed to repurchase 2.0 million shares of its common stock held by SGF at $152.59 per share. Repurchases under the letter agreement are pursuant to the Company’s existing share repurchase program, and have been approved by the audit committee of the Company’s board of directors. For details on the Company’s existing share repurchase program, see Note 9—Stockholders’ Equity and Earnings (Loss) Per Share. See Note 16—Subsequent Events for repurchases from SGF during the first quarter of 2026.