Diamondback Energy, Inc.

Previous wording

Second Quarter 2026 Financial and Operating Highlights

Current wording

Third Quarter 2026 Financial and Operating Highlights

Previous wording

•Recorded net income of $1.9 billion.

Current wording

•Recorded net income of $1.6 billion.

Previous wording

•Our cash operating costs were $10.96 per BOE, including lease operating expenses of $5.96 per BOE, cash general and administrative expenses of $0.52 per BOE, production and ad valorem taxes of $3.26 per BOE and gathering, processing and transportation expenses of $1.22 per BOE.

Current wording

•Our cash operating costs were $10.91 per BOE, including lease operating expenses of $5.97 per BOE, cash general and administrative expenses of $0.60 per BOE, production and ad valorem taxes of $3.02 per BOE and gathering, processing and transportation expenses of $1.32 per BOE.

Previous wording

•Incurred cash capital expenditures, excluding acquisitions, of $996 million.

Current wording

•Incurred cash capital expenditures, excluding acquisitions, of $1.0 billion.

Previous wording

•Paid dividends to stockholders, including dividend equivalent rights, of $311 million, or $1.10 per share, during the second quarter of 2026 and declared a base cash dividend payable in the third quarter of 2026 of $1.10 per share of common stock.

Current wording

•Paid dividends to stockholders, including dividend equivalent rights, of $309 million, or $1.10 per share, during the third quarter of 2026, increased our annual base dividend to $4.72 per share of common stock and declared a base cash dividend payable in the fourth quarter of 2026 of $1.18 per share of common stock.

Previous wording

•Repurchased $141 million of our common stock, excluding excise taxes.

Current wording

•Repurchased $251 million of our common stock, excluding excise taxes.

Previous wording

•Our average production was 1,017.7 MBOE/d, surpassing the 1.0 million BOE/d milestone.

Current wording

•Our average production was 1,034.0 MBOE/d.

Previous wording

•Drilled 97 gross horizontal wells in the Midland Basin and turned 168 gross operated horizontal wells in the Midland Basin to production.

Current wording

•Drilled 105 gross horizontal wells in the Midland Basin and turned 135 gross operated horizontal wells in the Midland Basin to production.

Previous wording

On August 3, 2026, we entered into a definitive purchase agreement with Viper Energy Partners LP to divest certain mineral and royalty interests in exchange for 3.65 million Viper LLC Units and an equivalent number of shares of Viper’s Class B common stock (the pending “2026 Drop Down”), subject to transaction costs and certain customary post-closing adjustments. The pending 2026 Drop Down will be accounted for as a transaction between entities under common control with the acquired properties recorded at Diamondback’s historical carrying value in the Company’s condensed consolidated balance sheet.

Current wording

On September 1, 2026, we divested certain mineral and royalty interests to Viper Energy Partners LP in exchange for 3.82 million Viper LLC Units and an equivalent number of shares of Viper’s Class B common stock, subject to transaction costs and certain customary post-closing adjustments. The 2026 Drop Down was accounted for as a transaction between entities under common control.

Previous wording

On July 1, 2026, Viper and Viper Energy Partners LP acquired all of the equity interests of Riverbend for consideration consisting of approximately (i) $339 million in cash and (ii) 3.69 million shares of Viper’s Class A common stock, in each case, subject to customary post-closing adjustments.

Current wording

On July 1, 2026, Viper and Viper Energy Partners LP acquired all of the equity interests of Riverbend Oil & Gas IX, L.L.C. for consideration consisting of approximately (i) $347 million in cash and (ii) 3.69 million shares of Viper’s Class A common stock, in each case, subject to customary post-closing adjustments.

Previous wording

Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Geopolitical global conflicts, tariffs or other trade barriers and any resulting trade tensions, regional and worldwide economic activity, changes in trade or other government policies or regulations, including with respect to U.S. energy and monetary policies, extreme weather conditions, changes in OPEC+ production levels and other substantially variable factors influence market conditions for these products. For example, as a result of the ongoing conflict in the Middle East, in 2026 the global crude oil market shifted from a supply-demand surplus to a deficit, materially reducing crude oil and refined products from the markets, and increasing benchmark crude oil prices. These factors are beyond our control and are difficult to predict. During the six months ended June 30, 2026 and 2025, WTI prices averaged $83.00 and $70.81 per Bbl, respectively, and Henry Hub prices averaged $3.20 and $3.69 per MMBtu, respectively.

Current wording

Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Geopolitical conflicts, tariffs or other trade barriers and any resulting trade tensions, regional and worldwide economic activity, changes in trade or other government policies or regulations, including with respect to U.S. energy and monetary policies, extreme weather conditions, changes in OPEC+ production levels and other substantially variable factors influence market conditions for these products. For example, as a result of the ongoing conflict in the Middle East, in 2026 the global crude oil market has shifted between supply-demand surpluses and deficits, due to material reductions in crude oil and refined products from the markets, and additional volatility in benchmark crude oil prices compared to the prior year. These factors are beyond our control and are difficult to predict. During the nine months ended September 30, 2026 and 2025, WTI prices averaged $83.91 and $66.65 per Bbl, respectively, and Henry Hub prices averaged $3.09 and $3.48 per MMBtu, respectively.

Previous wording

During the three and six months ended June 30, 2026, natural gas price realizations were adversely affected by widening basis differentials between natural gas prices at Waha Hub and prices at Henry Hub. The unfavorable differentials were primarily driven by regional natural gas takeaway constraints in the Permian Basin, which resulted in periods of negative pricing at Waha Hub. The Company expects the impact of these constraints to be reduced later in 2026 as its secured takeaway capacity is meaningfully increased through the execution of new contracts and expanded infrastructure build out in the region. However, realized prices are expected to continue to be influenced by, and subject to, future supply, demand, transportation availability and other market factors.

Current wording

During the first half of 2026, natural gas price realizations were adversely affected by widening basis differentials between natural gas prices at Waha Hub and prices at Henry Hub. The unfavorable differentials were primarily driven by regional natural gas takeaway constraints in the Permian Basin, which resulted in periods of negative pricing at Waha Hub, including during the second quarter of 2026. Beginning in July 2026, these differentials improved as new natural gas pipeline capacity out of the Permian Basin was placed into service, and our realized natural gas price for the third quarter of 2026 materially improved compared to the second quarter of 2026. Additional takeaway capacity, including capacity under contracts we have secured, is expected to be placed into service in the fourth quarter of 2026 and early 2027, which we expect will further reduce our exposure to Waha Hub pricing. However, realized prices will continue to be influenced by, and subject to, future supply, demand, transportation availability and other market factors and the timing of new pipeline in-service dates is outside of our control.

Previous wording

As of June 30, 2026, we had approximately 902,005 net acres in the Permian Basin, which included approximately 808,401 net acres in the Midland Basin and 93,604 net acres in the Delaware Basin.

Current wording

As of September 30, 2026, we had approximately 900,987 net acres in the Permian Basin, which included approximately 807,499 net acres in the Midland Basin and 93,488 net acres in the Delaware Basin.

Previous wording

(1)The average lateral length for the wells completed during the second quarter of 2026 was 11,983 feet. Operated completions during the second quarter of 2026 consisted of 41 Wolfcamp B wells, 38 Wolfcamp A wells, 31 Jo Mill wells, 31 Lower Spraberry wells, 13 Middle Spraberry wells, seven Wolfcamp D wells, five Dean wells, one Barnett well and one Upper Spraberry well.

Current wording

(1)The average lateral length for the wells completed during the third quarter of 2026 was 13,584 feet. Operated completions during the third quarter of 2026 consisted of 36 Wolfcamp A wells, 33 Wolfcamp B wells, 24 Lower Spraberry wells, 22 Jo Mill wells, eight Wolfcamp D wells, six Middle Spraberry wells, two Dean wells, two Barnett wells and two Upper Spraberry wells.

Previous wording

(2)The average lateral length for the wells completed during the six months ended June 30, 2026 was 11,679 feet. Operated completions during the six months ended June 30, 2026 consisted of 71 Wolfcamp B wells, 69 Wolfcamp A wells, 63 Lower Spraberry wells, 62 Jo Mill wells, 20 Middle Spraberry wells, 15 Wolfcamp D wells, 11 Dean wells, three Upper Spraberry wells and one Barnett well.

Current wording

(2)The average lateral length for the wells completed during the nine months ended September 30, 2026 was 12,251 feet. Operated completions during the nine months ended September 30, 2026 consisted of 105 Wolfcamp A wells, 104 Wolfcamp B wells, 87 Lower Spraberry wells, 84 Jo Mill wells, 26 Middle Spraberry wells, 23 Wolfcamp D wells, 13 Dean wells, five Upper Spraberry wells and three Barnett wells.

Previous wording

As of June 30, 2026, we and Viper held interests in 44,314 gross (9,810 net) wells, including 1,909 gross (331 net) wells in which we have a non-operated working interest.

Current wording

As of September 30, 2026, we and Viper held interests in 47,177 gross (9,917 net) wells, including 1,910 gross (324 net) wells in which we have a non-operated working interest.

Previous wording

Our oil, natural gas and natural gas liquids revenues for the second quarter of 2026 increased by $961 million to $4.8 billion compared to the first quarter of 2026. The increase consisted of an additional $861 million attributable largely to higher average prices received for our oil production and an additional $100 million attributable to higher oil and natural gas production volumes during the second quarter of 2026.

Current wording

Our oil, natural gas and natural gas liquids revenues for the third quarter of 2026 increased by $68 million to $4.9 billion compared to the second quarter of 2026. The increase consisted of an additional $51 million primarily attributable to higher oil production volumes during the third quarter of 2026, and an additional $17 million primarily attributable to higher average prices received for natural gas production which was largely offset by lower average prices received for our oil production.

Previous wording

Lease operating expenses increased for the second quarter of 2026 compared to the first quarter of 2026 primarily due to higher production volumes, which was largely offset by the benefit of the Company’s cost discipline initiatives and other individually insignificant activity.

Current wording

Lease operating expenses increased for the third quarter of 2026 compared to the second quarter of 2026 primarily due to higher production volumes and an increase in well workovers.

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 first quarter of 2026 to the second quarter of 2026.

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 largely consistent from the second quarter of 2026 to the third quarter of 2026.

Previous wording

Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes as a percentage of oil, natural gas and natural gas liquids revenue decreased in the second quarter of 2026 due primarily to current valuations reflecting lower 2025 commodity prices.

Current wording

Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. Ad valorem taxes as a percentage of oil, natural gas and natural gas liquids revenue decreased in the third quarter of 2026 due primarily to receiving additional current valuations reflecting lower 2025 commodity prices.

Previous wording

The decrease in depletion of proved oil and natural gas properties of $25 million for the second quarter of 2026 as compared to the first quarter of 2026 consists of an $89 million reduction attributable to the decline in depletion rate following the ceiling test impairment recorded in the first quarter of 2026, partially offset by a $64 million increase due to higher quarterly production volumes.

Current wording

The increase in depletion of proved oil and natural gas properties of $50 million for the third quarter of 2026 as compared to the second quarter of 2026 consists of a $34 million increase due to higher quarterly production volumes and a $16 million increase attributable to a slight increase in the depletion rate.

Previous wording

(1)The three months ended June 30, 2026 includes cash received to terminate commodity contracts prior to their contractual maturity of $1 million, and the three months ended March 31, 2026 includes cash paid on interest rate swaps terminated prior to their contractual maturity of $27 million.

Current wording

(1)The three months ended June 30, 2026 includes cash received to terminate commodity contracts prior to their contractual maturity of $1 million.

Previous wording

The decrease in gain on derivative instruments for the second quarter of 2026 compared to the first quarter of 2026 primarily reflects (i) a net loss of $262 million attributable to our natural gas contracts, which was comprised of a $290 million decrease in the value of our unsettled natural gas contracts largely due to unfavorable basis differentials on our natural gas basis swap contracts, partially offset by a $28 million increase in cash received for the settlement of contracts, (ii) a net gain of $194 million attributable to our oil contracts, which was comprised of a $270 million increase in the value of our unsettled positions as market prices declined compared to our contract prices at June 30, 2026 compared to March 31, 2026, and a $76 million decrease in cash received for the settlement of contracts, and (iii) other insignificant activity.

Current wording

The change from a gain to a loss on derivative instruments from the second quarter of 2026 to the third quarter of 2026 primarily reflects (i) a $129 million decline in the value of our oil contracts, which was comprised of a $180 million decrease in the value of our unsettled contracts due primarily to changes in market prices and basis differentials for roll swaps, puts and basis swaps compared to our contract prices, partially offset by a $51 million decrease in cash paid to settle our oil contracts, and (ii) a $102 million decrease in the value of our natural gas contracts, which was comprised of a $262 million unfavorable change in cash settlements of our contracts, partially offset by a $160 million reduction in the loss on our unsettled basis swap contracts largely due to changes in basis differentials compared to our contract differentials.

Previous wording

The gain on extinguishment of debt, net for the second quarter of 2026 primarily relates to the tender offer in which we repurchased $777 million of aggregate principal value on our senior notes at an average of 81.1% of par value. See Note 8—Debt of the notes to the condensed consolidated financial statements for details regarding outstanding borrowings and retirements of senior notes.

Current wording

The decrease in gain on extinguishment of debt, net is primarily attributable to the tender offer completed during the second quarter of 2026 in which we repurchased $777 million of aggregate principal value on our senior notes at an average of 81.1% of par value. See Note 8—Debt of the notes to the condensed consolidated financial statements for details regarding outstanding borrowings and retirements of senior notes.

Previous wording

The increase in our provision for income taxes for the second quarter of 2026 compared to the first quarter of 2026 was primarily due to the increase in pre-tax income between periods, which resulted largely from the first quarter of 2026 including a non-cash ceiling test impairment charge and an increase in our oil, natural gas and natural gas liquids revenues in the second quarter of 2026 as discussed above. See Note 11—Income Taxes of the notes to the condensed consolidated financial statements for further discussion of our income tax expense.

Current wording

The decrease in our provision for income taxes for the third quarter of 2026 compared to the second quarter of 2026 was primarily due to the decrease in pre-tax income between periods, which resulted largely from the third quarter of 2026 including a loss on derivative instruments and a decreased gain on the extinguishment of debt, partially offset by a slight increase in our oil, natural gas and natural gas liquids revenues in the third quarter of 2026 as discussed above. See Note 11—Income Taxes of the notes to the condensed consolidated financial statements for further discussion of our income tax expense.

Previous wording

Our oil, natural gas and natural gas liquids revenues for the six months ended June 30, 2026, increased by $1.6 billion, or 23%, to $8.6 billion from the same period in 2025. This net increase consisted of an additional $973 million from higher average prices received for our oil production, offset partially by lower natural gas and natural gas liquids prices received in 2026 and an additional $665 million from the 13% growth in our combined production volumes.

Current wording

Our oil, natural gas and natural gas liquids revenues for the nine months ended September 30, 2026, increased by $3.0 billion, or 29%, to $13.5 billion from the same period in 2025. This net increase consisted of an additional $2.2 billion from higher average prices received for our oil production offset partially by lower natural gas and natural gas liquids prices received in 2026, and an additional $855 million from the 12% growth in our combined production volumes.

Previous wording

Approximately 33% of the increase in our combined production volumes was attributable to Viper’s Sitio Acquisition and 16% was attributable to the Double Eagle Acquisition. The remainder of production growth is largely attributable to new wells added between periods.

Current wording

Approximately 29% of the increase in our combined production volumes was attributable to Viper’s Sitio Acquisition and 18% was attributable to the Double Eagle Acquisition. The remainder of the production increase is largely attributable to organic growth between periods.

Previous wording

Lease operating expenses increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to (i) a $54 million increase in water disposal costs following the divestiture of the Company’s Environmental Disposal Systems, LLC subsidiary in the fourth quarter of 2025, (ii) recording a $43 million reduction in estimated prior period water related costs during the six months ended June 30, 2025, (iii) a $36 million increase to operate wells acquired in the Double Eagle Acquisition, (iv) a $35 million increase in workover and maintenance costs and (v) a $34 million increase attributable to higher production volumes during the six months ended June 30, 2026, (vi) a downward adjustment to initial cost estimates related to producing properties acquired in connection with the Endeavor Acquisition during the six months ended June 30, 2025, and (vii) other individually insignificant activity.

Current wording

Lease operating expenses increased for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to (i) a $97 million increase in water disposal costs following the divestiture of the Company’s Environmental Disposal Systems, LLC subsidiary in the fourth quarter of 2025, (ii) an $81 million increase attributable to higher workover and maintenance activity, (iii) a $55 million increase attributable to higher production volumes during the nine months ended September 30, 2026, (iv) a $34 million increase to operate wells acquired in the Double Eagle Acquisition, (v) the 2025 period including a downward adjustment to initial cost estimates related to producing properties acquired in connection with the Endeavor Acquisition, and (vi) other individually insignificant activity.

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 revenue from sales of oil, natural gas and natural gas liquids remained consistent in the first half of 2026 compared to the first half 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 revenue from sales of oil, natural gas and natural gas liquids remained consistent in the first nine months of 2026 compared to the first nine months 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 per BOE and as a percentage of revenue from sales of oil, natural gas and natural gas liquids for the six months ended June 30, 2026, compared to the same period in 2025.

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 per BOE and as a percentage of revenue from sales of oil, natural gas and natural gas liquids for the nine months ended September 30, 2026, compared to the same period in 2025.

Previous wording

The decrease in gathering, processing and transportation expense for the six months ended June 30, 2026, compared to the same period in 2025 primarily relates to higher utilization of arrangements that require net presentation within related revenues in the second quarter of 2026, partially offset by an increase due to increased production volumes for the six months ended June 30, 2026.

Current wording

The decrease in gathering, processing and transportation expense for the nine months ended September 30, 2026, compared to the same period in 2025 primarily relates to higher utilization of arrangements that require net presentation within related revenues as well as a reduction in transportation costs incurred to meet our minimum volume commitments on certain pipelines for the nine months ended September 30, 2026.

Previous wording

The increase in depletion of proved oil and natural gas properties of $214 million for the six months ended June 30, 2026, compared to the same period in 2025 consists of $293 million from growth in production volumes, which was partially offset by a $79 million reduction attributable to a decrease in the depletion rate. The depletion rate declined due to a reduction in the depletable asset base, which was caused by the ceiling test impairment recorded in the fourth quarter of 2025 and the first quarter of 2026 as discussed below. This reduction was partially offset by the addition of higher value leasehold costs and proved reserves to the depletable base from the Double Eagle Acquisition and, to a lesser extent, Viper’s Sitio Acquisition.

Current wording

The increase in depletion of proved oil and natural gas properties of $256 million for the nine months ended September 30, 2026, compared to the same period in 2025 consists of $414 million from growth in production volumes, which was partially offset by a $158 million reduction attributable to a decrease in the depletion rate. The depletion rate declined due to a reduction in the depletable asset base caused by the ceiling test impairments recorded in the fourth quarter of 2025 and the first quarter of 2026. The first quarter of 2026 impairment is discussed below.

Previous wording

The non-cash ceiling test impairment charge of $1.4 billion for the six months ended June 30, 2026 primarily resulted from the decline in SEC Prices during the preceding twelve months.

Current wording

The non-cash ceiling test impairment charge of $1.4 billion for the nine months ended September 30, 2026 was recorded during the first quarter of 2026 and primarily resulted from the decline in SEC Prices during the preceding twelve month period ended March 31, 2026.

Previous wording

In addition to commodity prices, our production rates, levels of proved reserves, future development costs, transfers of unevaluated properties, income tax rate assumptions and other factors will determine our actual ceiling test calculation and impairment analysis in future periods. If the trailing 12-month commodity prices fall as compared to the commodity prices used in the current quarter, we may have material write-downs in subsequent quarters. Currently, we do not expect to record additional impairment of our assets in the third quarter of 2026.

Current wording

In addition to commodity prices, our production rates, levels of proved reserves, future development costs, transfers of unevaluated properties, income tax rate assumptions and other factors will determine our actual ceiling test calculation and impairment analysis in future periods. If the trailing 12-month commodity prices fall as compared to the commodity prices used in the current quarter, we may have material write-downs in subsequent quarters. Currently, we do not expect to record additional impairment of our assets in the fourth quarter of 2026.

Previous wording

The decrease in other operating expenses for the six months ended June 30, 2026, compared to the same period in 2025 primarily resulted from (i) a $72 million reduction in merger and transaction costs due to the 2025 period, including costs incurred for the Endeavor Acquisition, the 2025 Drop Down and other individually insignificant transactions, and (ii) a $45 million decrease in midstream service expense following the divestiture of the Company’s Environmental Disposal Systems, LLC subsidiary in the fourth quarter of 2025.

Current wording

The decrease in other operating expenses for the nine months ended September 30, 2026, compared to the same period in 2025 primarily resulted from (i) an $86 million reduction in merger and transaction costs due to the 2025 period including costs incurred for the Endeavor Acquisition, the 2025 Drop Down, Viper’s Sitio Acquisition, and other individually insignificant transactions, (ii) a $71 million decrease in midstream service expense following the divestiture of the Company’s Environmental Disposal Systems, LLC subsidiary in the fourth quarter of 2025, and (iii) other individually insignificant activity.

Previous wording

(1)The six months ended June 30, 2026, includes cash paid on interest rate swaps terminated prior to their contractual maturity of $27 million and cash received for the early termination of commodity contracts of $1 million.

Current wording

(1)The nine months ended September 30, 2026 and 2025, include cash paid on interest rate swaps terminated prior to their contractual maturity of $27 million and $67 million, respectively. The nine months ended September 30, 2026, includes cash received for the early termination of commodity contracts of $1 million.

Previous wording

The increase in gain on derivative instruments for the six months ended June 30, 2026, compared to the same period in 2025 primarily reflects (i) a $278 million gain attributable to our natural gas contracts, which was comprised of a $249 million increase in cash received upon settlement of contracts and a $29 million increase in the value of our unsettled natural gas costless collars and basis swaps, and (ii) other insignificant changes due to the termination of our interest rate swaps. These gains were partially offset by an additional loss of $124 million attributable to our oil contracts, which was comprised of (i) a $103 million decrease in the value of our unsettled contracts due primarily to basis puts and puts added between periods being in a liability position, (ii) an $85 million decrease in cash received for the settlement of contracts and (iii) a $64 million increase in the value of our unsettled roll swaps and basis swaps.

Current wording

The change in gain (loss) on derivative instruments for the nine months ended September 30, 2026, compared to the same period in 2025 primarily reflects (i) a $179 million increase in loss on our oil contracts, which was comprised of a $111 million increase in cash paid to settle our oil contracts and a $68 million increase in loss on our unsettled contracts due to changes in market prices and basis differentials compared to our contract prices and differentials, (ii) a $37 million increase in gain on our natural gas contracts, which was comprised of a $105 million increase in cash received for the settlement of our natural gas contracts, largely offset by a $68 million increase in loss on our unsettled natural gas contracts due to changes in market prices and basis differentials compared to our contract prices and differentials, (iii) a $67 million decrease in gain on unsettled interest rate swaps subsequent to their full termination in the first quarter of 2026, (iv) a $40 million decrease in cash paid to terminate interest rate swap contracts prior to their expiration, and (v) other individually insignificant changes.

Previous wording

Interest expense, net increased by $23 million for the six months ended June 30, 2026, compared to the same period in 2025. This increase primarily consisted of (i) a $32 million decrease in capitalized interest costs, which increased interest expense, (ii) a net increase of $18 million related to the issuance of Viper’s 4.900% Senior Notes due 2030 and 5.700% Senior Notes due 2035 and the redemption of its 5.375% Senior Notes due 2027 and 7.375% Senior Notes due 2031 in the third quarter of 2025, and (iii) a $15 million increase attributable to the 2035 Notes issued in April 2025. These increases were partially offset by a $50 million reduction in interest expense due to retirements of the Company’s debt during 2026 and 2025 and other individually insignificant activity.

Current wording

Interest expense, net increased by $8 million for the nine months ended September 30, 2026, compared to the same period in 2025. This increase primarily consisted of (i) a $59 million decrease in capitalized interest costs, which increased interest expense, (ii) a net increase of $16 million related to the issuance of Viper’s 4.900% Senior Notes due 2030 and 5.700% Senior Notes due 2035 and the redemption of its 5.375% Senior Notes due 2027 and 7.375% Senior Notes due 2031 in the third quarter of 2025, and (iii) a $15 million increase attributable to the 2035 Notes issued in April 2025. These increases were partially offset by an $80 million reduction in interest expense due to retirements of the Company’s debt during 2025 and 2026 and other individually insignificant activity.

Previous wording

See Note 8—Debt of the notes to the condensed consolidated financial statements for further details regarding outstanding borrowings.

Current wording

See Note 8—Debt of the notes to the condensed consolidated financial statements for further details regarding outstanding borrowings and debt repayments.

Previous wording

Other income (expense), net for the six months ended June 30, 2026, decreased compared to the same period in 2025, primarily due to receiving a $42 million distribution from an equity method investee during the six months ended June 30, 2025, partially offset by a $10 million increase in income from equity method investees and other individually insignificant items.

Current wording

Other income (expense), net for the nine months ended September 30, 2026, decreased by $145 million compared to the same period in 2025, primarily due to gains on the sale of equity method investments recorded during the nine months ended September 30, 2025.