Diamondback Energy, Inc.
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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, 2026 · Filed May 6, 2026
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6. Asset Retirement Obligations
- ASSET RETIREMENT OBLIGATIONS
The following table describes the changes to the Company’s asset retirement obligations liability for the following periods:
| Three Months Ended March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (In millions) | ||
| Asset retirement obligations, beginning of period | $542 | $592 |
| Additional liabilities incurred | 1 | 16 |
| Liabilities acquired | 1 | 1 |
| Liabilities settled and divested | (5) | (12) |
| Accretion expense | 8 | 9 |
| Revisions in estimated liabilities | — | 1 |
| Asset retirement obligations, end of period | 547 | 607 |
| Less current portion(1) | 41 | 21 |
| Asset retirement obligations - long-term(2) | $506 | $586 |
(1) The current portion of the asset retirement obligation is included in the caption “Other accrued liabilities” in the Company’s condensed consolidated balance sheets.
(2) The long-term portion of the asset retirement obligation is included in the caption “Other long-term liabilities” in the Company’s condensed consolidated balance sheets.
The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance.
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