ý | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 45-4502447 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) | |
500 West Texas, Suite 1200 Midland, Texas | 79701 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large Accelerated Filer | ý | Accelerated Filer | o | |||
Non-Accelerated Filer | o | Smaller Reporting Company | o | |||
Emerging Growth Company | o |
Page | |
PART I. FINANCIAL INFORMATION | |
PART II. OTHER INFORMATION | |
Basin | A large depression on the earth’s surface in which sediments accumulate. |
Bbl | Stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons. |
BOE | Barrels of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil. |
BOE/d | BOE per day. |
British Thermal Unit or Btu | The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit. |
Completion | The process of treating a drilled well followed by the installation of permanent equipment for the production of natural gas or oil, or in the case of a dry hole, the reporting of abandonment to the appropriate agency. |
Crude oil | Liquid hydrocarbons retrieved from geological structures underground to be refined into fuel sources. |
Finding and development costs | Capital costs incurred in the acquisition, exploitation and exploration of proved oil and natural gas reserves divided by proved reserve additions and revisions to proved reserves. |
Gross acres or gross wells | The total acres or wells, as the case may be, in which a working interest is owned. |
Horizontal drilling | A drilling technique used in certain formations where a well is drilled vertically to a certain depth and then drilled at a right angle with a specified interval. |
Horizontal wells | Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms. |
Mb/d | Thousand barrels per day. |
Mcf | Thousand cubic feet of natural gas. |
Mineral interests | The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources. |
MMBtu | Million British Thermal Units. |
Net acres or net wells | The sum of the fractional working interest owned in gross acres. |
Oil and natural gas properties | Tracts of land consisting of properties to be developed for oil and natural gas resource extraction. |
Plugging and abandonment | Refers to the sealing off of fluids in the strata penetrated by a well so that the fluids from one stratum will not escape into another or to the surface. Regulations of all states require plugging of abandoned wells. |
Prospect | A specific geographic area which, based on supporting geological, geophysical or other data and also preliminary economic analysis using reasonably anticipated prices and costs, is deemed to have potential for the discovery of commercial hydrocarbons. |
Proved reserves | The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions. |
Reserves | The estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves are not assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations). |
Reservoir | A porous and permeable underground formation containing a natural accumulation of producible natural gas and/or oil that is confined by impermeable rock or water barriers and is separate from other reservoirs. |
Royalty interest | An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development. |
Spacing | The distance between wells producing from the same reservoir. Spacing is often expressed in terms of acres (e.g., 40-acre spacing) and is often established by regulatory agencies. |
Working interest | An operating interest that gives the owner the right to drill, produce and conduct operating activities on the property and receive a share of production and requires the owner to pay a share of the costs of drilling and production operations. |
Company | Diamondback Energy, Inc., a Delaware corporation. |
Equity Plan | The Company’s Equity Incentive Plan. |
Exchange Act | The Securities Exchange Act of 1934, as amended. |
GAAP | Accounting principles generally accepted in the United States. |
General Partner | Viper Energy Partners GP LLC, a Delaware limited liability company and the General Partner of the Partnership. |
NYMEX | New York Mercantile Exchange. |
Partnership | Viper Energy Partners LP, a Delaware limited partnership. |
Partnership Agreement | The first amended and restated agreement of limited partnership, dated June 23, 2014, entered into by the General Partner and Diamondback in connection with the closing of the Viper Offering. |
Operating Company | Viper Energy Partners LLC, a Delaware limited liability company and a subsidiary of the Partnership. |
SEC | United States Securities and Exchange Commission. |
Securities Act | The Securities Act of 1933, as amended. |
2024 Senior Notes | The Company’s 4.750% senior unsecured notes due 2024 in the aggregate principal amount of $500 million. |
2025 Senior Notes | The Company’s 5.375% senior unsecured notes due 2025 in the aggregate principal amount of $500 million. |
Senior Notes | The 2024 Senior Notes and the 2025 Senior Notes. |
Viper LTIP | Viper Energy Partners LP Long Term Incentive Plan. |
Viper Offering | The Partnerships’ initial public offering. |
Wells Fargo | Wells Fargo Bank, National Association. |
• | business strategy; |
• | exploration and development drilling prospects, inventories, projects and programs; |
• | oil and natural gas reserves; |
• | acquisitions, including our pending acquisition of certain leasehold acres and other assets from Ajax Recourses, LLC discussed elsewhere in this report; |
• | identified drilling locations; |
• | ability to obtain permits and governmental approvals; |
• | technology; |
• | financial strategy; |
• | realized oil and natural gas prices; |
• | production; |
• | lease operating expenses, general and administrative costs and finding and development costs; |
• | future operating results; and |
• | plans, objectives, expectations and intentions. |
June 30, | December 31, | |||||
2018 | 2017 | |||||
(In thousands, except par values and share data) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 113,927 | $ | 112,446 | ||
Accounts receivable: | ||||||
Joint interest and other | 91,036 | 73,038 | ||||
Oil and natural gas sales | 167,854 | 158,575 | ||||
Inventories | 13,264 | 9,108 | ||||
Derivative instruments | — | 531 | ||||
Prepaid expenses and other | 7,266 | 4,903 | ||||
Total current assets | 393,347 | 358,601 | ||||
Property and equipment: | ||||||
Oil and natural gas properties, full cost method of accounting ($4,286,320 and $4,105,865 excluded from amortization at June 30, 2018 and December 31, 2017, respectively) | 10,315,425 | 9,232,694 | ||||
Midstream assets | 343,387 | 191,519 | ||||
Other property, equipment and land | 85,472 | 80,776 | ||||
Accumulated depletion, depreciation, amortization and impairment | (2,401,240 | ) | (2,161,372 | ) | ||
Net property and equipment | 8,343,044 | 7,343,617 | ||||
Funds held in escrow | — | 6,304 | ||||
Deferred tax asset | 72,049 | — | ||||
Investment in real estate, net | 108,564 | — | ||||
Other assets | 37,391 | 62,463 | ||||
Total assets | $ | 8,954,395 | $ | 7,770,985 | ||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable-trade | $ | 73,974 | $ | 94,590 | ||
Accrued capital expenditures | 369,957 | 221,256 | ||||
Other accrued liabilities | 94,266 | 92,512 | ||||
Revenues and royalties payable | 77,550 | 68,703 | ||||
Derivative instruments | 111,330 | 100,367 | ||||
Total current liabilities | 727,077 | 577,428 | ||||
Long-term debt | 1,967,074 | 1,477,347 | ||||
Derivative instruments | 8,514 | 6,303 | ||||
Asset retirement obligations | 21,780 | 20,122 | ||||
Deferred income taxes | 217,476 | 108,048 | ||||
Other long term liabilities | 7 | — | ||||
Total liabilities | 2,941,928 | 2,189,248 | ||||
Commitments and contingencies (Note 16) | ||||||
Stockholders’ equity: | ||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 98,619,628 issued and outstanding at June 30, 2018; 98,167,289 issued and outstanding at December 31, 2017 | 986 | 982 | ||||
Additional paid-in capital | 5,307,358 | 5,291,011 | ||||
Retained earnings (accumulated deficit) | 323,105 | (37,133 | ) | |||
Total Diamondback Energy, Inc. stockholders’ equity | 5,631,449 | 5,254,860 | ||||
Non-controlling interest | 381,018 | 326,877 | ||||
Total equity | 6,012,467 | 5,581,737 | ||||
Total liabilities and equity | $ | 8,954,395 | $ | 7,770,985 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(In thousands, except per share amounts) | |||||||||||||
Revenues: | |||||||||||||
Oil sales | $ | 460,437 | $ | 237,884 | $ | 879,705 | $ | 444,958 | |||||
Natural gas sales | 11,365 | 12,693 | 25,743 | 22,615 | |||||||||
Natural gas liquid sales | 43,135 | 16,857 | 76,248 | 32,359 | |||||||||
Lease bonus | 928 | 583 | 928 | 2,185 | |||||||||
Midstream services | 7,983 | 1,417 | 19,378 | 2,547 | |||||||||
Other operating income | 2,425 | — | 4,466 | — | |||||||||
Total revenues | 526,273 | 269,434 | 1,006,468 | 504,664 | |||||||||
Costs and expenses: | |||||||||||||
Lease operating expenses | 42,647 | 28,989 | 79,992 | 55,615 | |||||||||
Production and ad valorem taxes | 32,202 | 15,879 | 59,506 | 31,604 | |||||||||
Gathering and transportation | 6,813 | 3,015 | 11,098 | 5,634 | |||||||||
Midstream services | 17,601 | 1,828 | 28,790 | 2,682 | |||||||||
Depreciation, depletion and amortization | 129,867 | 75,173 | 245,083 | 134,102 | |||||||||
General and administrative expenses (including non-cash equity-based compensation, net of capitalized amounts, of $5,650 and $6,168 for the three months ended June 30, 2018 and 2017, respectively, and $13,101 and $13,231 for the six months ended June 30, 2018 and 2017, respectively) | 14,529 | 11,892 | 30,854 | 25,636 | |||||||||
Asset retirement obligation accretion | 365 | 350 | 720 | 673 | |||||||||
Other operating expense | 946 | — | 1,476 | — | |||||||||
Total costs and expenses | 244,970 | 137,126 | 457,519 | 255,946 | |||||||||
Income from operations | 281,303 | 132,308 | 548,949 | 248,718 | |||||||||
Other income (expense): | |||||||||||||
Interest expense, net | (17,096 | ) | (8,245 | ) | (30,797 | ) | (20,470 | ) | |||||
Other income, net | 84,472 | 8,324 | 87,208 | 9,469 | |||||||||
Gain (loss) on derivative instruments, net | (58,587 | ) | 33,320 | (90,932 | ) | 71,021 | |||||||
Gain on revaluation of investment | 4,465 | — | 5,364 | — | |||||||||
Total other income (expense), net | 13,254 | 33,399 | (29,157 | ) | 60,020 | ||||||||
Income before income taxes | 294,557 | 165,707 | 519,792 | 308,738 | |||||||||
Provision for (benefit from) income taxes | (6,607 | ) | 1,579 | 40,474 | 3,536 | ||||||||
Net income | 301,164 | 164,128 | 479,318 | 305,202 | |||||||||
Net income attributable to non-controlling interest | 82,018 | 5,723 | 97,360 | 10,524 | |||||||||
Net income attributable to Diamondback Energy, Inc. | $ | 219,146 | $ | 158,405 | $ | 381,958 | $ | 294,678 | |||||
Earnings per common share: | |||||||||||||
Basic | $ | 2.22 | $ | 1.61 | $ | 3.87 | $ | 3.08 | |||||
Diluted | $ | 2.22 | $ | 1.61 | $ | 3.87 | $ | 3.07 | |||||
Weighted average common shares outstanding: | |||||||||||||
Basic | 98,614 | 98,142 | 98,584 | 95,665 | |||||||||
Diluted | 98,797 | 98,354 | 98,820 | 95,925 | |||||||||
Dividends declared per share | $ | 0.125 | $ | — | $ | 0.250 | $ | — |
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest | Total | ||||||||||||
Shares | Amount | |||||||||||||||
(In thousands) | ||||||||||||||||
Balance December 31, 2016 | 90,144 | $ | 901 | $ | 4,215,955 | $ | (519,394 | ) | $ | 320,830 | $ | 4,018,292 | ||||
Net proceeds from issuance of common units - Viper Energy Partners LP | — | — | — | 147,492 | 147,492 | |||||||||||
Unit-based compensation | — | — | — | 1,537 | 1,537 | |||||||||||
Common units issued for acquisition | — | — | — | 3,050 | 3,050 | |||||||||||
Stock-based compensation | — | 15,939 | — | — | 15,939 | |||||||||||
Distribution to non-controlling interest | — | — | — | (14,123 | ) | (14,123 | ) | |||||||||
Common shares issued in public offering, net of offering costs | — | 14 | — | — | 14 | |||||||||||
Common shares issued for acquisition | 7,686 | 77 | 809,096 | — | — | 809,173 | ||||||||||
Exercise of stock options and vesting of restricted stock units | 299 | 3 | 355 | — | — | 358 | ||||||||||
Net income | — | — | 294,678 | 10,524 | 305,202 | |||||||||||
Balance June 30, 2017 | 98,129 | $ | 981 | $ | 5,041,359 | $ | (224,716 | ) | $ | 469,310 | $ | 5,286,934 | ||||
Balance December 31, 2017 | 98,167 | $ | 982 | $ | 5,291,011 | $ | (37,133 | ) | $ | 326,877 | $ | 5,581,737 | ||||
Impact of adoption of ASU 2016-01, net of tax | — | — | (9,393 | ) | (6,671 | ) | (16,064 | ) | ||||||||
Unit-based compensation | — | — | — | 1,740 | 1,740 | |||||||||||
Stock-based compensation | — | 16,351 | — | — | 16,351 | |||||||||||
Distribution to non-controlling interest | — | — | — | (38,288 | ) | (38,288 | ) | |||||||||
Dividend paid | — | — | (12,327 | ) | — | (12,327 | ) | |||||||||
Exercise of stock options and vesting of restricted stock units | 452 | 4 | (4 | ) | — | — | — | |||||||||
Net income | — | — | 381,958 | 97,360 | 479,318 | |||||||||||
Balance June 30, 2018 | 98,620 | $ | 986 | $ | 5,307,358 | $ | 323,105 | $ | 381,018 | $ | 6,012,467 |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
(In thousands) | ||||||
Cash flows from operating activities: | ||||||
Net income | $ | 479,318 | $ | 305,202 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for deferred income taxes | 39,966 | 2,334 | ||||
Asset retirement obligation accretion | 720 | 673 | ||||
Depreciation, depletion and amortization | 245,083 | 134,102 | ||||
Amortization of debt issuance costs | 1,434 | 1,811 | ||||
Change in fair value of derivative instruments | 13,705 | (68,010 | ) | |||
Income from equity investment | — | (156 | ) | |||
Gain on revaluation of investment | (5,358 | ) | — | |||
Equity-based compensation expense | 13,101 | 13,231 | ||||
Loss (gain) on sale of assets, net | 3,123 | (67 | ) | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (1,067 | ) | (36,137 | ) | ||
Accounts receivable-related party | — | 289 | ||||
Restricted cash | — | 500 | ||||
Inventories | (17,983 | ) | (3,059 | ) | ||
Prepaid expenses and other | (2,926 | ) | (4,966 | ) | ||
Accounts payable and accrued liabilities | (1,299 | ) | 26,782 | |||
Accounts payable and accrued liabilities-related party | — | (2 | ) | |||
Accrued interest | (11,953 | ) | (7,756 | ) | ||
Income tax payable | (358 | ) | 1,017 | |||
Revenues and royalties payable | 8,847 | 28,643 | ||||
Net cash provided by operating activities | 764,353 | 394,431 | ||||
Cash flows from investing activities: | ||||||
Additions to oil and natural gas properties | (650,058 | ) | (291,767 | ) | ||
Additions to midstream assets | (94,503 | ) | (4,444 | ) | ||
Purchase of other property, equipment and land | (3,978 | ) | (13,825 | ) | ||
Acquisition of leasehold interests | (101,216 | ) | (1,860,980 | ) | ||
Acquisition of mineral interests | (253,102 | ) | (122,679 | ) | ||
Acquisition of midstream assets | — | (50,279 | ) | |||
Proceeds from sale of assets | 3,879 | 1,295 | ||||
Investment in real estate | (110,480 | ) | — | |||
Funds held in escrow | 10,989 | 121,391 | ||||
Equity investments | (125 | ) | (188 | ) | ||
Net cash used in investing activities | (1,198,594 | ) | (2,221,476 | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from borrowings under credit facility | 569,000 | 266,000 | ||||
Repayment under credit facility | (388,000 | ) | (221,000 | ) | ||
Proceeds from senior notes | 312,000 | — | ||||
Debt issuance costs | (4,375 | ) | (1,605 | ) | ||
Public offering costs | (2,288 | ) | (296 | ) | ||
Proceeds from public offerings | — | 147,725 | ||||
Proceeds from exercise of stock options | — | 358 | ||||
Dividends to stockholders | (12,327 | ) | — | |||
Distributions to non-controlling interest | (38,288 | ) | (14,123 | ) |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
Net cash provided by financing activities | 435,722 | 177,059 | ||||
Net increase (decrease) in cash and cash equivalents | 1,481 | (1,649,986 | ) | |||
Cash and cash equivalents at beginning of period | 112,446 | 1,666,574 | ||||
Cash and cash equivalents at end of period | $ | 113,927 | $ | 16,588 | ||
Supplemental disclosure of cash flow information: | ||||||
Interest paid, net of capitalized interest | $ | 44,199 | $ | 26,500 | ||
Supplemental disclosure of non-cash transactions: | ||||||
Change in accrued capital expenditures | $ | 148,701 | $ | 93,415 | ||
Capitalized stock-based compensation | $ | 4,990 | $ | 4,244 | ||
Common stock issued for oil and natural gas properties | $ | — | $ | 809,173 | ||
Asset retirement obligations acquired | $ | 39 | $ | 2,180 |
(in thousands) | |||
Proved oil and natural gas properties | $ | 386,308 | |
Unevaluated oil and natural gas properties | 2,122,597 | ||
Midstream assets | 47,432 | ||
Prepaid capital costs | 3,460 | ||
Oil inventory | 839 | ||
Equipment | 163 | ||
Revenues and royalties payable | (9,650 | ) | |
Asset retirement obligations | (1,550 | ) | |
Total fair value of net assets | $ | 2,549,599 |
Three Months Ended June 30, 2017 | Six Months Ended June 30, 2017 | ||||||
(in thousands, except per share amounts) | |||||||
Revenues | $ | 269,434 | $ | 527,593 | |||
Income from operations | 132,308 | 263,060 | |||||
Net income | 164,128 | 310,414 | |||||
Basic earnings per common share | 1.61 | 3.24 | |||||
Diluted earnings per common share | 1.61 | 3.24 |
June 30, | December 31, | |||||
2018 | 2017 | |||||
(in thousands) | ||||||
Oil and natural gas properties: | ||||||
Subject to depletion | $ | 6,029,105 | $ | 5,126,829 | ||
Not subject to depletion | 4,286,320 | 4,105,865 | ||||
Gross oil and natural gas properties | 10,315,425 | 9,232,694 | ||||
Accumulated depletion | (1,237,781 | ) | (1,009,893 | ) | ||
Accumulated impairment | (1,143,498 | ) | (1,143,498 | ) | ||
Oil and natural gas properties, net | 7,934,146 | 7,079,303 | ||||
Midstream assets | 343,387 | 191,519 | ||||
Other property, equipment and land | 85,472 | 80,776 | ||||
Accumulated depreciation | (19,961 | ) | (7,981 | ) | ||
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment | $ | 8,343,044 | $ | 7,343,617 | ||
Balance of costs not subject to depletion: | ||||||
Incurred in 2018 | $ | 374,515 | ||||
Incurred in 2017 | 2,720,793 | |||||
Incurred in 2016 | 717,065 | |||||
Incurred in 2015 | 239,745 | |||||
Incurred in 2014 | 234,202 | |||||
Total not subject to depletion | $ | 4,286,320 |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
(in thousands) | ||||||
Asset retirement obligations, beginning of period | $ | 21,285 | $ | 17,422 | ||
Additional liabilities incurred | 1,535 | 990 | ||||
Liabilities acquired | 39 | 2,180 | ||||
Liabilities settled | (1,420 | ) | (149 | ) | ||
Accretion expense | 720 | 673 | ||||
Revisions in estimated liabilities | 15 | (2 | ) | |||
Asset retirement obligations, end of period | 22,174 | 21,114 | ||||
Less current portion | 394 | 1,575 | ||||
Asset retirement obligations - long-term | $ | 21,780 | $ | 19,539 |
June 30, | December 31, | |||||
2018 | 2017 | |||||
(in thousands) | ||||||
4.750 % Senior Notes due 2024 | $ | 500,000 | $ | 500,000 | ||
5.375 % Senior Notes due 2025 | 800,000 | 500,000 | ||||
Unamortized debt issuance costs | (15,736 | ) | (13,153 | ) | ||
Unamortized premium costs | 11,310 | — | ||||
Revolving credit facility | 321,500 | 397,000 | ||||
Partnership revolving credit facility | 350,000 | 93,500 | ||||
Total long-term debt | $ | 1,967,074 | $ | 1,477,347 |
Financial Covenant | Required Ratio | |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | Not greater than 4.0 to 1.0 | |
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 |
Financial Covenant | Required Ratio | |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | Not greater than 4.0 to 1.0 | |
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(in thousands, except per share amounts) | |||||||||||||
Net income attributable to common stock | $ | 219,146 | $ | 158,405 | $ | 381,958 | $ | 294,678 | |||||
Weighted average common shares outstanding | |||||||||||||
Basic weighted average common units outstanding | 98,614 | 98,142 | 98,584 | 95,665 | |||||||||
Effect of dilutive securities: | |||||||||||||
Potential common shares issuable | 183 | 212 | 236 | 260 | |||||||||
Diluted weighted average common shares outstanding | 98,797 | 98,354 | 98,820 | 95,925 | |||||||||
Basic net income attributable to common stock | $ | 2.22 | $ | 1.61 | $ | 3.87 | $ | 3.08 | |||||
Diluted net income attributable to common stock | $ | 2.22 | $ | 1.61 | $ | 3.87 | $ | 3.07 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
General and administrative expenses | $ | 5,650 | $ | 6,168 | $ | 13,101 | $ | 13,231 | |||||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | 2,349 | 1,901 | 4,990 | 4,244 |
Restricted Stock Awards & Units | Weighted Average Grant-Date Fair Value | ||||
Unvested at December 31, 2017 | 243,577 | $ | 90.88 | ||
Granted | 81,633 | $ | 113.81 | ||
Vested | (115,711 | ) | $ | 86.75 | |
Forfeited | (5,672 | ) | $ | 92.78 | |
Unvested at June 30, 2018 | 203,827 | $ | 102.86 |
2018 | |||
Three-Year Performance Period | |||
Grant-date fair value | $ | 170.45 | |
Risk-free rate | 1.99 | % | |
Company volatility | 35.90 | % |
Performance Restricted Stock Units | Weighted Average Grant-Date Fair Value | ||||
Unvested at December 31, 2017 | 202,326 | $ | 139.83 | ||
Granted | 285,737 | $ | 130.96 | ||
Vested | (168,314 | ) | $ | 103.41 | |
Unvested at June 30, 2018(1) | 319,749 | $ | 151.08 |
(1) | A maximum of 639,498 units could be awarded based upon the Company’s final TSR ranking. |
Phantom Units | Weighted Average Grant-Date Fair Value | |||||
Unvested at December 31, 2017 | 105,439 | $ | 17.10 | |||
Granted | 101,403 | $ | 23.18 | |||
Vested | (46,379 | ) | $ | 21.41 | ||
Unvested at June 30, 2018 | 160,463 | $ | 19.70 |
2018 | 2019 | |||||||||||
Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | |||||||||
Oil Swaps - WTI Cushing | 4,876,000 | $ | 51.27 | 1,638,000 | $ | 52.78 | ||||||
Oil Swaps - WTI Magellan East Houston | 460,000 | $ | 69.64 | 450,000 | $ | 68.17 | ||||||
Oil Swaps - BRENT | 1,472,000 | $ | 59.69 | 725,000 | $ | 72.63 | ||||||
Oil Basis Swaps | 2,760,000 | $ | (0.88 | ) | 0 | $ | — | |||||
Natural Gas Swaps | 3,680,000 | $ | 3.04 | 0 | $ | — |
October 2018 - December 2018 | January 2019 - June 2019 | ||||||||||||||
Oil Three-Way Collars | WTI Magellan East Houston | WTI Cushing | Brent | WTI Magellan East Houston | |||||||||||
Volume (Bbls) | 276,000 | 1,810,000 | 2,000,000 | 270,000 | |||||||||||
Short put price (per Bbl) | $ | 55.00 | $ | 45.00 | $ | 55.00 | $ | 55.00 | |||||||
Floor price (per Bbl) | $ | 65.00 | $ | 55.00 | $ | 65.00 | $ | 65.00 | |||||||
Ceiling price (per Bbl) | $ | 78.78 | $ | 70.23 | $ | 82.47 | $ | 76.83 |
June 30, 2018 | December 31, 2017 | |||||
(in thousands) | ||||||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ | — | $ | 531 | ||
Net amounts of assets presented in the Consolidated Balance Sheet | — | 531 | ||||
Gross amounts of liabilities presented in the Consolidated Balance Sheet | 119,844 | 106,670 | ||||
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ | 119,844 | $ | 106,670 |
June 30, 2018 | December 31, 2017 | |||||
(in thousands) | ||||||
Current assets: derivative instruments | $ | — | $ | 531 | ||
Noncurrent assets: derivative instruments | — | — | ||||
Total assets | $ | — | $ | 531 | ||
Current liabilities: derivative instruments | $ | 111,330 | $ | 100,367 | ||
Noncurrent liabilities: derivative instruments | 8,514 | 6,303 | ||||
Total liabilities | $ | 119,844 | $ | 106,670 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Change in fair value of open non-hedge derivative instruments | $ | (13,667 | ) | $ | 28,635 | $ | (13,705 | ) | $ | 68,010 | |||
Gain (loss) on settlement of non-hedge derivative instruments | (44,920 | ) | 4,685 | (77,227 | ) | 3,011 | |||||||
Gain (loss) on derivative instruments | $ | (58,587 | ) | $ | 33,320 | $ | (90,932 | ) | $ | 71,021 |
June 30, 2018 | December 31, 2017 | |||||
(in thousands) | ||||||
Fixed price swaps: | ||||||
Quoted prices in active markets level 1 | $ | 20,438 | $ | — | ||
Significant other observable inputs level 2 | (119,844 | ) | (106,139 | ) | ||
Significant unobservable inputs level 3 | — | — | ||||
Total | $ | (99,406 | ) | $ | (106,139 | ) |
June 30, 2018 | December 31, 2017 | |||||||||||
Carrying | Carrying | |||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||
(in thousands) | ||||||||||||
Debt: | ||||||||||||
Revolving credit facility | $ | 321,500 | $ | 321,500 | $ | 397,000 | $ | 397,000 | ||||
4.750% Senior Notes due 2024 | 500,000 | 488,750 | 500,000 | 501,855 | ||||||||
5.375% Senior Notes due 2025 | 800,000 | 800,000 | 500,000 | 515,000 | ||||||||
Partnership revolving credit facility | 350,000 | 350,000 | 93,500 | 93,500 |
Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | ||||
January 2019 - March 2019 | |||||
Oil Basis Swaps - WTI Cushing | 180,000 | $ | (10.13 | ) |
WTI - Magellan East Houston | |||||||
Oil Three-Way Collars | October 2018 - December 2018 | January 2019 - June 2019 | |||||
Volume (Bbls) | 184,000 | 362,000 | |||||
Short put price (per Bbl) | $ | 55.00 | $ | 55.00 | |||
Floor price (per Bbl) | $ | 65.00 | $ | 65.00 | |||
Ceiling price (per Bbl) | $ | 77.40 | $ | 76.33 |
Condensed Consolidated Balance Sheet | |||||||||||||||||||
June 30, 2018 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 65,218 | $ | 15,823 | $ | 32,886 | $ | — | $ | 113,927 | |||||||||
Accounts receivable | — | 227,807 | 31,083 | — | 258,890 | ||||||||||||||
Accounts receivable - related party | — | — | 8,137 | (8,137 | ) | — | |||||||||||||
Intercompany receivable | 2,862,029 | 787,088 | — | (3,649,117 | ) | — | |||||||||||||
Inventories | — | 13,264 | — | — | 13,264 | ||||||||||||||
Other current assets | 441 | 6,530 | 295 | — | 7,266 | ||||||||||||||
Total current assets | 2,927,688 | 1,050,512 | 72,401 | (3,657,254 | ) | 393,347 | |||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, at cost, full cost method of accounting | — | 8,956,243 | 1,359,596 | (414 | ) | 10,315,425 | |||||||||||||
Midstream assets | — | 343,387 | — | — | 343,387 | ||||||||||||||
Other property, equipment and land | — | 84,471 | 1,001 | — | 85,472 | ||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | — | (2,183,228 | ) | (214,252 | ) | (3,760 | ) | (2,401,240 | ) | ||||||||||
Net property and equipment | — | 7,200,873 | 1,146,345 | (4,174 | ) | 8,343,044 | |||||||||||||
Investment in subsidiaries | 4,262,879 | 1,284 | 1,000 | (4,265,163 | ) | — | |||||||||||||
Deferred income taxes | — | — | 72,049 | — | 72,049 | ||||||||||||||
Investment in real estate | — | 108,564 | — | — | 108,564 | ||||||||||||||
Other assets | — | 11,831 | 25,560 | — | 37,391 | ||||||||||||||
Total assets | $ | 7,190,567 | $ | 8,373,064 | $ | 1,317,355 | $ | (7,926,591 | ) | $ | 8,954,395 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable-trade | $ | 11 | $ | 73,954 | $ | 9 | $ | — | $ | 73,974 | |||||||||
Intercompany payable | 37,962 | 3,619,292 | — | (3,657,254 | ) | — | |||||||||||||
Other current liabilities | 8,095 | 641,960 | 3,048 | — | 653,103 | ||||||||||||||
Total current liabilities | 46,068 | 4,335,206 | 3,057 | (3,657,254 | ) | 727,077 | |||||||||||||
Long-term debt | 1,295,574 | 321,500 | 350,000 | — | 1,967,074 | ||||||||||||||
Derivative instruments | — | 8,514 | — | — | 8,514 | ||||||||||||||
Asset retirement obligations | — | 21,780 | — | — | 21,780 | ||||||||||||||
Deferred income taxes | 217,476 | — | — | — | 217,476 | ||||||||||||||
Other long term liabilities | — | 7 | — | — | 7 | ||||||||||||||
Total liabilities | 1,559,118 | 4,687,007 | 353,057 | (3,657,254 | ) | 2,941,928 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders’ equity | 5,631,449 | 3,686,057 | 389,797 | (4,075,854 | ) | 5,631,449 | |||||||||||||
Non-controlling interest | — | — | 574,501 | (193,483 | ) | 381,018 | |||||||||||||
Total equity | 5,631,449 | 3,686,057 | 964,298 | (4,269,337 | ) | 6,012,467 | |||||||||||||
Total liabilities and equity | $ | 7,190,567 | $ | 8,373,064 | $ | 1,317,355 | $ | (7,926,591 | ) | $ | 8,954,395 |
Condensed Consolidated Balance Sheet | |||||||||||||||||||
December 31, 2017 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 54,074 | $ | 34,175 | $ | 24,197 | $ | — | $ | 112,446 | |||||||||
Accounts receivable | — | 205,859 | 25,754 | — | 231,613 | ||||||||||||||
Accounts receivable - related party | — | — | 5,142 | (5,142 | ) | — | |||||||||||||
Intercompany receivable | 2,624,810 | 2,267,308 | — | (4,892,118 | ) | — | |||||||||||||
Inventories | — | 9,108 | — | — | 9,108 | ||||||||||||||
Other current assets | 618 | 4,461 | 355 | — | 5,434 | ||||||||||||||
Total current assets | 2,679,502 | 2,520,911 | 55,448 | (4,897,260 | ) | 358,601 | |||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, at cost, full cost method of accounting | — | 8,129,211 | 1,103,897 | (414 | ) | 9,232,694 | |||||||||||||
Midstream assets | — | 191,519 | — | — | 191,519 | ||||||||||||||
Other property, equipment and land | — | 80,776 | — | — | 80,776 | ||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | — | (1,976,248 | ) | (189,466 | ) | 4,342 | (2,161,372 | ) | |||||||||||
Net property and equipment | — | 6,425,258 | 914,431 | 3,928 | 7,343,617 | ||||||||||||||
Funds held in escrow | — | — | 6,304 | — | 6,304 | ||||||||||||||
Investment in subsidiaries | 3,809,557 | — | — | (3,809,557 | ) | — | |||||||||||||
Other assets | — | 25,609 | 36,854 | — | 62,463 | ||||||||||||||
Total assets | $ | 6,489,059 | $ | 8,971,778 | $ | 1,013,037 | $ | (8,702,889 | ) | $ | 7,770,985 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable-trade | $ | 1 | $ | 91,629 | $ | 2,960 | $ | — | $ | 94,590 | |||||||||
Intercompany payable | 132,067 | 4,765,193 | — | (4,897,260 | ) | — | |||||||||||||
Other current liabilities | 7,236 | 472,933 | 2,669 | — | 482,838 | ||||||||||||||
Total current liabilities | 139,304 | 5,329,755 | 5,629 | (4,897,260 | ) | 577,428 | |||||||||||||
Long-term debt | 986,847 | 397,000 | 93,500 | — | 1,477,347 | ||||||||||||||
Derivative instruments | — | 6,303 | — | — | 6,303 | ||||||||||||||
Asset retirement obligations | — | 20,122 | — | — | 20,122 | ||||||||||||||
Deferred income taxes | 108,048 | — | — | — | 108,048 | ||||||||||||||
Total liabilities | 1,234,199 | 5,753,180 | 99,129 | (4,897,260 | ) | 2,189,248 | |||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders’ equity | 5,254,860 | 3,218,598 | 913,908 | (4,132,506 | ) | 5,254,860 | |||||||||||||
Non-controlling interest | — | — | — | 326,877 | 326,877 | ||||||||||||||
Total equity | 5,254,860 | 3,218,598 | 913,908 | (3,805,629 | ) | 5,581,737 | |||||||||||||
Total liabilities and equity | $ | 6,489,059 | $ | 8,971,778 | $ | 1,013,037 | $ | (8,702,889 | ) | $ | 7,770,985 |
Condensed Consolidated Statement of Operations | |||||||||||||||||||
Three Months Ended June 30, 2018 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Oil sales | $ | — | $ | 394,552 | $ | — | $ | 65,885 | $ | 460,437 | |||||||||
Natural gas sales | — | 8,714 | — | 2,651 | 11,365 | ||||||||||||||
Natural gas liquid sales | — | 37,251 | — | 5,884 | 43,135 | ||||||||||||||
Royalty income | — | — | 74,420 | (74,420 | ) | — | |||||||||||||
Lease bonus income | — | — | 928 | — | 928 | ||||||||||||||
Midstream services | — | 7,983 | — | — | 7,983 | ||||||||||||||
Other operating income | — | 2,367 | 58 | — | 2,425 | ||||||||||||||
Total revenues | — | 450,867 | 75,406 | — | 526,273 | ||||||||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | — | 42,647 | — | — | 42,647 | ||||||||||||||
Production and ad valorem taxes | — | 27,335 | 4,867 | — | 32,202 | ||||||||||||||
Gathering and transportation | — | 6,670 | 143 | — | 6,813 | ||||||||||||||
Midstream services | — | 17,601 | — | — | 17,601 | ||||||||||||||
Depreciation, depletion and amortization | — | 111,980 | 13,260 | 4,627 | 129,867 | ||||||||||||||
General and administrative expenses | 6,539 | 6,395 | 2,210 | (615 | ) | 14,529 | |||||||||||||
Asset retirement obligation accretion | — | 365 | — | — | 365 | ||||||||||||||
Other operating expense | — | 946 | — | — | 946 | ||||||||||||||
Total costs and expenses | 6,539 | 213,939 | 20,480 | 4,012 | 244,970 | ||||||||||||||
Income (loss) from operations | (6,539 | ) | 236,928 | 54,926 | (4,012 | ) | 281,303 | ||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (10,145 | ) | (3,699 | ) | (3,252 | ) | — | (17,096 | ) | ||||||||||
Other income (expense), net | 211 | 84,429 | 447 | (615 | ) | 84,472 | |||||||||||||
Loss on derivative instruments, net | — | (58,587 | ) | — | — | (58,587 | ) | ||||||||||||
Gain on revaluation of investment | — | — | 4,465 | — | 4,465 | ||||||||||||||
Total other income (expense), net | (9,934 | ) | 22,143 | 1,660 | (615 | ) | 13,254 | ||||||||||||
Income (loss) before income taxes | (16,473 | ) | 259,071 | 56,586 | (4,627 | ) | 294,557 | ||||||||||||
Provision for (benefit from) income taxes | 65,271 | — | (71,878 | ) | — | (6,607 | ) | ||||||||||||
Net income (loss) | (81,744 | ) | 259,071 | 128,464 | (4,627 | ) | 301,164 | ||||||||||||
Net income attributable to non-controlling interest | — | — | 29,060 | 52,958 | 82,018 | ||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | (81,744 | ) | $ | 259,071 | $ | 99,404 | $ | (57,585 | ) | $ | 219,146 |
Condensed Consolidated Statement of Operations | |||||||||||||||||||
Three Months Ended June 30, 2017 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Oil sales | $ | — | $ | 206,113 | $ | — | $ | 31,771 | $ | 237,884 | |||||||||
Natural gas sales | — | 10,739 | — | 1,954 | 12,693 | ||||||||||||||
Natural gas liquid sales | — | 14,649 | — | 2,208 | 16,857 | ||||||||||||||
Royalty income | — | — | 35,933 | (35,933 | ) | — | |||||||||||||
Lease bonus income | — | — | 689 | (106 | ) | 583 | |||||||||||||
Midstream services | — | 1,417 | — | — | 1,417 | ||||||||||||||
Total revenues | — | 232,918 | 36,622 | (106 | ) | 269,434 | |||||||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | — | 28,989 | — | — | 28,989 | ||||||||||||||
Production and ad valorem taxes | — | 13,106 | 2,773 | — | 15,879 | ||||||||||||||
Gathering and transportation | — | 2,871 | 144 | — | 3,015 | ||||||||||||||
Midstream services | — | 1,828 | — | — | 1,828 | ||||||||||||||
Depreciation, depletion and amortization | — | 65,091 | 9,672 | 410 | 75,173 | ||||||||||||||
General and administrative expenses | 6,432 | 4,521 | 1,554 | (615 | ) | 11,892 | |||||||||||||
Asset retirement obligation accretion | — | 350 | — | — | 350 | ||||||||||||||
Total costs and expenses | 6,432 | 116,756 | 14,143 | (205 | ) | 137,126 | |||||||||||||
Income (loss) from operations | (6,432 | ) | 116,162 | 22,479 | 99 | 132,308 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (6,325 | ) | (1,277 | ) | (643 | ) | — | (8,245 | ) | ||||||||||
Other income (expense), net | — | 8,626 | 313 | (615 | ) | 8,324 | |||||||||||||
Gain on derivative instruments, net | — | 33,320 | — | — | 33,320 | ||||||||||||||
Total other income (expense), net | (6,325 | ) | 40,669 | (330 | ) | (615 | ) | 33,399 | |||||||||||
Income (loss) before income taxes | (12,757 | ) | 156,831 | 22,149 | (516 | ) | 165,707 | ||||||||||||
Provision for income taxes | 1,579 | — | — | — | 1,579 | ||||||||||||||
Net income (loss) | (14,336 | ) | 156,831 | 22,149 | (516 | ) | 164,128 | ||||||||||||
Net income attributable to non-controlling interest | — | — | — | 5,723 | 5,723 | ||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | (14,336 | ) | $ | 156,831 | $ | 22,149 | $ | (6,239 | ) | $ | 158,405 |
Condensed Consolidated Statement of Operations | ||||||||||||||
Six Months Ended June 30, 2018 | ||||||||||||||
(In thousands) | ||||||||||||||
Non– | ||||||||||||||
Guarantor | Guarantor | |||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | ||||||||||
Revenues: | ||||||||||||||
Oil sales | — | 758,133 | — | 121,572 | 879,705 | |||||||||
Natural gas sales | — | 20,514 | — | 5,229 | 25,743 | |||||||||
Natural gas liquid sales | — | 66,236 | — | 10,012 | 76,248 | |||||||||
Royalty income | — | — | 136,813 | (136,813 | ) | — | ||||||||
Lease bonus income | — | — | 928 | — | 928 | |||||||||
Midstream services | — | 19,378 | — | — | 19,378 | |||||||||
Other operating income | — | 4,358 | 108 | — | 4,466 | |||||||||
Total revenues | — | 868,619 | 137,849 | — | 1,006,468 | |||||||||
Costs and expenses: | ||||||||||||||
Lease operating expenses | — | 79,992 | — | — | 79,992 | |||||||||
Production and ad valorem taxes | — | 50,400 | 9,106 | — | 59,506 | |||||||||
Gathering and transportation | — | 10,690 | 408 | — | 11,098 | |||||||||
Midstream services | — | 28,790 | — | — | 28,790 | |||||||||
Depreciation, depletion and amortization | — | 212,196 | 24,785 | 8,102 | 245,083 | |||||||||
General and administrative expenses | 14,029 | 13,134 | 4,921 | (1,230 | ) | 30,854 | ||||||||
Asset retirement obligation accretion | — | 720 | — | — | 720 | |||||||||
Other operating expense | — | 1,476 | — | — | 1,476 | |||||||||
Total costs and expenses | 14,029 | 397,398 | 39,220 | 6,872 | 457,519 | |||||||||
Income (loss) from operations | (14,029 | ) | 471,221 | 98,629 | (6,872 | ) | 548,949 | |||||||
Other income (expense) | ||||||||||||||
Interest expense, net | (19,077 | ) | (6,370 | ) | (5,350 | ) | — | (30,797 | ) | |||||
Other income (expense), net | 334 | 87,265 | 839 | (1,230 | ) | 87,208 | ||||||||
Loss on derivative instruments, net | — | (90,932 | ) | — | — | (90,932 | ) | |||||||
Gain on revaluation of investment | — | — | 5,364 | — | 5,364 | |||||||||
Total other income (expense), net | (18,743 | ) | (10,037 | ) | 853 | (1,230 | ) | (29,157 | ) | |||||
Income (loss) before income taxes | (32,772 | ) | 461,184 | 99,482 | (8,102 | ) | 519,792 | |||||||
Provision for (benefit from) income taxes | 112,352 | — | (71,878 | ) | — | 40,474 | ||||||||
Net income (loss) | (145,124 | ) | 461,184 | 171,360 | (8,102 | ) | 479,318 | |||||||
Net income attributable to non-controlling interest | — | — | 29,060 | 68,300 | 97,360 | |||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | (145,124 | ) | 461,184 | 142,300 | (76,402 | ) | 381,958 |
Condensed Consolidated Statement of Operations | |||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Oil sales | $ | — | $ | 384,343 | $ | — | $ | 60,615 | $ | 444,958 | |||||||||
Natural gas sales | — | 19,314 | — | 3,301 | 22,615 | ||||||||||||||
Natural gas liquid sales | — | 28,292 | — | 4,067 | 32,359 | ||||||||||||||
Royalty income | — | — | 67,983 | (67,983 | ) | — | |||||||||||||
Lease bonus income | — | — | 2,291 | (106 | ) | 2,185 | |||||||||||||
Midstream services | — | 2,547 | — | — | 2,547 | ||||||||||||||
Total revenues | — | 434,496 | 70,274 | (106 | ) | 504,664 | |||||||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | — | 55,615 | — | — | 55,615 | ||||||||||||||
Production and ad valorem taxes | — | 26,761 | 4,843 | — | 31,604 | ||||||||||||||
Gathering and transportation | — | 5,347 | 287 | — | 5,634 | ||||||||||||||
Midstream services | — | 2,682 | — | — | 2,682 | ||||||||||||||
Depreciation, depletion and amortization | — | 115,982 | 17,519 | 601 | 134,102 | ||||||||||||||
General and administrative expenses | 13,540 | 9,630 | 3,696 | (1,230 | ) | 25,636 | |||||||||||||
Asset retirement obligation accretion | — | 673 | — | — | 673 | ||||||||||||||
Total costs and expenses | 13,540 | 216,690 | 26,345 | (629 | ) | 255,946 | |||||||||||||
Income (loss) from operations | (13,540 | ) | 217,806 | 43,929 | 523 | 248,718 | |||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | (17,133 | ) | (2,082 | ) | (1,255 | ) | — | (20,470 | ) | ||||||||||
Other income (expense), net | 1,092 | 9,480 | 127 | (1,230 | ) | 9,469 | |||||||||||||
Gain on derivative instruments, net | — | 71,021 | — | — | 71,021 | ||||||||||||||
Total other income (expense), net | (16,041 | ) | 78,419 | (1,128 | ) | (1,230 | ) | 60,020 | |||||||||||
Income (loss) before income taxes | (29,581 | ) | 296,225 | 42,801 | (707 | ) | 308,738 | ||||||||||||
Provision for income taxes | 3,536 | — | — | — | 3,536 | ||||||||||||||
Net income (loss) | (33,117 | ) | 296,225 | 42,801 | (707 | ) | 305,202 | ||||||||||||
Net income attributable to non-controlling interest | — | — | — | 10,524 | 10,524 | ||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | (33,117 | ) | $ | 296,225 | $ | 42,801 | $ | (11,231 | ) | $ | 294,678 |
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||
Six Months Ended June 30, 2018 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (21,030 | ) | $ | 673,171 | $ | 112,212 | $ | — | $ | 764,353 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Additions to oil and natural gas properties | — | (650,058 | ) | — | — | (650,058 | ) | ||||||||||||
Additions to midstream assets | — | (94,503 | ) | — | — | (94,503 | ) | ||||||||||||
Purchase of other property, equipment and land | — | (3,978 | ) | — | — | (3,978 | ) | ||||||||||||
Acquisition of leasehold interests | — | (101,216 | ) | — | — | (101,216 | ) | ||||||||||||
Acquisition of mineral interests | — | (46 | ) | (253,056 | ) | — | (253,102 | ) | |||||||||||
Proceeds from sale of assets | — | 3,313 | 566 | — | 3,879 | ||||||||||||||
Funds held in escrow | — | 10,989 | — | — | 10,989 | ||||||||||||||
Equity investments | — | (125 | ) | — | — | (125 | ) | ||||||||||||
Intercompany transfers | (22,310 | ) | 22,310 | — | — | — | |||||||||||||
Investment in real estate | — | (110,480 | ) | — | — | (110,480 | ) | ||||||||||||
Net cash used in investing activities | (22,310 | ) | (923,794 | ) | (252,490 | ) | — | (1,198,594 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from borrowing under credit facility | — | 312,500 | 256,500 | — | 569,000 | ||||||||||||||
Repayment under credit facility | — | (388,000 | ) | — | — | (388,000 | ) | ||||||||||||
Proceeds from senior notes | 312,000 | — | — | — | 312,000 | ||||||||||||||
Debt issuance costs | (3,706 | ) | (229 | ) | (440 | ) | — | (4,375 | ) | ||||||||||
Public offering costs | (254 | ) | — | (2,034 | ) | — | (2,288 | ) | |||||||||||
Contributions to subsidiaries | (1,000 | ) | — | (1,000 | ) | 2,000 | — | ||||||||||||
Contributions by members | — | — | 2,000 | (2,000 | ) | — | |||||||||||||
Distributions from subsidiary | 68,771 | — | — | (68,771 | ) | — | |||||||||||||
Dividends to stockholders | (12,327 | ) | — | — | — | (12,327 | ) | ||||||||||||
Distributions to non-controlling interest | — | — | (107,059 | ) | 68,771 | (38,288 | ) | ||||||||||||
Intercompany transfers | (309,000 | ) | 308,000 | 1,000 | — | — | |||||||||||||
Net cash provided by financing activities | 54,484 | 232,271 | 148,967 | — | 435,722 | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | 11,144 | (18,352 | ) | 8,689 | — | 1,481 | |||||||||||||
Cash and cash equivalents at beginning of period | 54,074 | 34,175 | 24,197 | — | 112,446 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 65,218 | $ | 15,823 | $ | 32,886 | $ | — | $ | 113,927 |
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||
Six Months Ended June 30, 2017 | |||||||||||||||||||
(In thousands) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (25,139 | ) | $ | 358,123 | $ | 61,447 | $ | — | $ | 394,431 | ||||||||
Cash flows from investing activities: | |||||||||||||||||||
Additions to oil and natural gas properties | — | (291,767 | ) | — | — | (291,767 | ) | ||||||||||||
Purchase of other property, equipment and land | — | (13,825 | ) | — | — | (13,825 | ) | ||||||||||||
Acquisition of leasehold interests | — | (1,860,980 | ) | — | — | (1,860,980 | ) | ||||||||||||
Acquisition of mineral interests | — | — | (122,679 | ) | — | (122,679 | ) | ||||||||||||
Acquisition of midstream assets | — | (50,279 | ) | — | — | (50,279 | ) | ||||||||||||
Additions to midstream assets | — | (4,444 | ) | — | — | (4,444 | ) | ||||||||||||
Proceeds from sale of assets | — | 1,295 | — | — | 1,295 | ||||||||||||||
Funds held in escrow | — | 121,391 | — | — | 121,391 | ||||||||||||||
Equity investments | — | (188 | ) | — | — | (188 | ) | ||||||||||||
Intercompany transfers | (1,657,407 | ) | 1,657,407 | — | — | — | |||||||||||||
Net cash used in investing activities | (1,657,407 | ) | (441,390 | ) | (122,679 | ) | — | (2,221,476 | ) | ||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from borrowing under credit facility | — | 162,000 | 104,000 | — | 266,000 | ||||||||||||||
Repayment under credit facility | — | (78,000 | ) | (143,000 | ) | — | (221,000 | ) | |||||||||||
Debt issuance costs | (635 | ) | (790 | ) | (180 | ) | — | (1,605 | ) | ||||||||||
Public offering costs | (79 | ) | — | (217 | ) | — | (296 | ) | |||||||||||
Proceeds from public offerings | — | — | 147,725 | — | 147,725 | ||||||||||||||
Distributions from subsidiary | 40,572 | — | — | (40,572 | ) | — | |||||||||||||
Exercise of stock options | 358 | — | — | — | 358 | ||||||||||||||
Distributions to non-controlling interest | — | — | (54,695 | ) | 40,572 | (14,123 | ) | ||||||||||||
Net cash provided by financing activities | 40,216 | 83,210 | 53,633 | — | 177,059 | ||||||||||||||
Net decrease in cash and cash equivalents | (1,642,330 | ) | (57 | ) | (7,599 | ) | — | (1,649,986 | ) | ||||||||||
Cash and cash equivalents at beginning of period | 1,643,226 | 14,135 | 9,213 | — | 1,666,574 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 896 | $ | 14,078 | $ | 1,614 | $ | — | $ | 16,588 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Oil (MBbls) | 73 | % | 75 | % | 73 | % | 75 | % | |
Natural gas (MMcf) | 12 | % | 12 | % | 12 | % | 11 | % | |
Natural gas liquids (MBbls) | 15 | % | 13 | % | 15 | % | 14 | % | |
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||
2018 | 2017 | 2018 | 2017 | ||
Oil (Bbls)/d | 82,180 | 57,543 | 78,886 | 51,903 | |
Natural Gas (Mcf)/d | 80,960 | 54,273 | 76,867 | 47,635 | |
Natural Gas Liquids (Bbls)/d | 16,919 | 10,388 | 15,929 | 9,493 | |
Total average production per day (BOE) | 112,592 | 76,977 | 107,627 | 69,336 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||
2018 | 2017 | 2018 | 2017 | ||||||
Revenues | |||||||||
Oil sales | 89 | % | 89 | % | 90 | % | 89 | % | |
Natural gas sales | 2 | % | 5 | % | 3 | % | 5 | % | |
Natural gas liquid sales | 9 | % | 6 | % | 7 | % | 6 | % | |
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
(in thousands, except Bbl, Mcf and BOE amounts) | ||||||||||||||
Revenues: | ||||||||||||||
Oil, natural gas and natural gas liquids | $ | 514,937 | $ | 267,434 | $ | 981,696 | $ | 499,932 | ||||||
Lease bonus | 928 | 583 | 928 | 2,185 | ||||||||||
Midstream services | 7,983 | 1,417 | 19,378 | 2,547 | ||||||||||
Other operating income | 2,425 | — | — | 4,466 | — | |||||||||
Total revenues | 526,273 | 269,434 | 1,006,468 | 504,664 | ||||||||||
Operating expenses: | ||||||||||||||
Lease operating expenses | 42,647 | 28,989 | 79,992 | 55,615 | ||||||||||
Production and ad valorem taxes | 32,202 | 15,879 | 59,506 | 31,604 | ||||||||||
Gathering and transportation | 6,813 | 3,015 | 11,098 | 5,634 | ||||||||||
Midstream services | 17,601 | 1,828 | 28,790 | 2,682 | ||||||||||
Depreciation, depletion and amortization | 129,867 | 75,173 | 245,083 | 134,102 | ||||||||||
General and administrative expenses | 14,529 | 11,892 | 30,854 | 25,636 | ||||||||||
Asset retirement obligation accretion | 365 | 350 | 720 | 673 | ||||||||||
Other operating expense | 946 | — | 1,476 | — | ||||||||||
Total expenses | 244,970 | 137,126 | 457,519 | 255,946 | ||||||||||
Income from operations | 281,303 | 132,308 | 548,949 | 248,718 | ||||||||||
Interest expense, net | (17,096 | ) | (8,245 | ) | (30,797 | ) | (20,470 | ) | ||||||
Other income, net | 84,472 | 8,324 | 87,208 | 9,469 | ||||||||||
Gain (loss) on derivative instruments, net | (58,587 | ) | 33,320 | (90,932 | ) | 71,021 | ||||||||
Gain on revaluation of investment | 4,465 | — | — | 5,364 | — | |||||||||
Total other income (expense), net | 13,254 | 33,399 | (29,157 | ) | 60,020 | |||||||||
Income before income taxes | 294,557 | 165,707 | 519,792 | 308,738 | ||||||||||
Provision for (benefit from) income taxes | (6,607 | ) | 1,579 | 40,474 | 3,536 | |||||||||
Net income | 301,164 | 164,128 | 479,318 | 305,202 | ||||||||||
Net income attributable to non-controlling interest | 82,018 | 5,723 | 97,360 | 10,524 | ||||||||||
Net income attributable to Diamondback Energy, Inc. | $ | 219,146 | $ | 158,405 | $ | 381,958 | $ | 294,678 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||
(in thousands) | |||||||||||||
Production Data: | |||||||||||||
Oil (MBbls) | 7,478 | 5,236 | 14,278 | 9,395 | |||||||||
Natural gas (MMcf) | 7,367 | 4,939 | 13,913 | 8,622 | |||||||||
Natural gas liquids (MBbls) | 1,540 | 945 | 2,883 | 1,718 | |||||||||
Combined volumes (MBOE) | 10,246 | 7,005 | 19,480 | 12,550 | |||||||||
Daily combined volumes (BOE/d) | 112,592 | 76,977 | 107,627 | 69,336 | |||||||||
Average Prices: | |||||||||||||
Oil (per Bbl) | $ | 61.57 | $ | 45.43 | $ | 61.61 | $ | 47.36 | |||||
Natural gas (per Mcf) | 1.54 | 2.57 | 1.85 | 2.62 | |||||||||
Natural gas liquids (per Bbl) | 28.02 | 17.83 | 26.45 | 18.83 | |||||||||
Combined (per BOE) | 50.26 | 38.18 | 50.39 | 39.84 | |||||||||
Oil, hedged ($ per Bbl)(1) | 55.53 | 46.32 | 56.15 | 47.68 | |||||||||
Natural gas, hedged ($ per MMbtu)(1) | 1.57 | 3.52 | 1.91 | 2.97 | |||||||||
Average price, hedged ($ per BOE)(1) | 45.87 | 38.85 | 46.43 | 40.08 | |||||||||
Average Costs per BOE: | |||||||||||||
Lease operating expense | $ | 4.16 | $ | 4.14 | $ | 4.11 | $ | 4.43 | |||||
Production and ad valorem taxes | 3.14 | 2.27 | 3.05 | 2.52 | |||||||||
Gathering and transportation expense | 0.66 | 0.43 | 0.57 | 0.45 | |||||||||
General and administrative - cash component | 0.87 | 0.82 | 0.91 | 0.99 | |||||||||
Total operating expense - cash | $ | 8.83 | $ | 7.66 | $ | 8.64 | $ | 8.39 | |||||
General and administrative - non-cash component | $ | 0.55 | $ | 0.88 | $ | 0.67 | $ | 1.05 | |||||
Depreciation, depletion and amortization | 12.68 | 10.73 | 12.58 | 10.69 | |||||||||
Interest expense, net | 1.67 | 1.18 | 1.58 | 1.63 | |||||||||
Total expenses | $ | 14.90 | $ | 12.79 | $ | 14.83 | $ | 13.37 | |||||
Average realized oil price ($/Bbl) | $ | 61.57 | $ | 45.43 | $ | 61.61 | $ | 47.36 | |||||
Average NYMEX ($/Bbl) | 68.07 | 47.88 | 65.55 | 49.66 | |||||||||
Differential to NYMEX | (6.50 | ) | (2.45 | ) | (3.94 | ) | (2.30 | ) | |||||
Average realized oil price to NYMEX | 90 | % | 95 | % | 94 | % | 95 | % | |||||
Average realized natural gas price ($/Mcf) | $ | 1.54 | $ | 2.57 | $ | 1.85 | $ | 2.62 | |||||
Average NYMEX ($/Mcf) | 2.85 | 3.35 | 2.96 | 3.04 | |||||||||
Differential to NYMEX | (1.31 | ) | (0.78 | ) | (1.11 | ) | (0.42 | ) | |||||
Average realized natural gas price to NYMEX | 54 | % | 77 | % | 63 | % | 86 | % | |||||
Average realized natural gas liquids price ($/Bbl) | $ | 28.02 | $ | 17.83 | $ | 26.45 | $ | 18.83 | |||||
Average NYMEX oil price ($/Bbl) | 68.07 | 47.88 | 65.55 | 49.66 | |||||||||
Average realized natural gas liquids price to NYMEX oil price | 41 | % | 37 | % | 40 | % | 38 | % |
(1) | Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices. Our calculation of such effects include gains and losses on cash settlements for commodity derivatives, which we do not designate for hedge accounting. |
Change in prices | Production volumes(1) | Total net dollar effect of change | |||||||
(in thousands) | |||||||||
Effect of changes in price: | |||||||||
Oil | $ | 16.14 | 7,478 | $ | 120,709 | ||||
Natural gas | (1.03 | ) | 7,367 | (7,588 | ) | ||||
Natural gas liquids | 10.19 | 1,540 | 15,689 | ||||||
Total revenues due to change in price | $ | 128,810 | |||||||
Change in production volumes(1) | Prior period Average Prices | Total net dollar effect of change | |||||||
(in thousands) | |||||||||
Effect of changes in production volumes: | |||||||||
Oil | 2,242 | $ | 45.43 | $ | 101,854 | ||||
Natural gas | 2,429 | 2.57 | 6,241 | ||||||
Natural gas liquids | 594 | 17.83 | 10,598 | ||||||
Total revenues due to change in production volumes | 118,693 | ||||||||
Total change in revenues | $ | 247,503 |
(1) | Production volumes are presented in MBbls for oil and natural gas liquids and MMcf for natural gas. |
Three Months Ended June 30, | ||||||
2018 | 2017 | |||||
(in thousands, except BOE amounts) | ||||||
Depletion of proved oil and natural gas properties | $ | 123,382 | $ | 73,808 | ||
Depreciation of midstream assets | 4,070 | 996 | ||||
Depreciation of other property and equipment | 2,415 | 369 | ||||
Depreciation, depletion and amortization expense | $ | 129,867 | $ | 75,173 | ||
Oil and natural gas properties depreciation, depletion and amortization per BOE | $ | 12.04 | $ | 10.73 |
Change in prices | Production volumes(1) | Total net dollar effect of change | |||||||
(in thousands) | |||||||||
Effect of changes in price: | |||||||||
Oil | $ | 14.25 | 14,278 | $ | 203,420 | ||||
Natural gas | (0.77 | ) | 13,913 | (10,713 | ) | ||||
Natural gas liquids | 7.62 | 2,883 | 21,970 | ||||||
Total revenues due to change in price | $ | 214,677 | |||||||
Change in production volumes(1) | Prior period Average Prices | Total net dollar effect of change | |||||||
(in thousands) | |||||||||
Effect of changes in production volumes: | |||||||||
Oil | 4,884 | $ | 47.36 | $ | 231,271 | ||||
Natural gas | 5,291 | 2.62 | 21,938 | ||||||
Natural gas liquids | 1,165 | 18.83 | 13,878 | ||||||
Total revenues due to change in production volumes | 267,087 | ||||||||
Total change in revenues | $ | 481,764 |
(1) | Production volumes are presented in MBbls for oil and natural gas liquids and MMcf for natural gas. |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
(in thousands, except BOE amounts) | ||||||
Depletion of proved oil and natural gas properties | $ | 232,369 | $ | 131,947 | ||
Depreciation of midstream assets | 8,571 | 1,431 | ||||
Depreciation of other property and equipment | 4,143 | 724 | ||||
Depreciation, depletion and amortization expense | $ | 245,083 | $ | 134,102 | ||
Oil and natural gas properties depreciation, depletion and amortization per BOE | $ | 11.93 | $ | 10.69 |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
(in thousands) | ||||||
Net cash provided by operating activities | $ | 764,353 | $ | 394,431 | ||
Net cash used in investing activities | (1,198,594 | ) | (2,221,476 | ) | ||
Net cash provided by financing activities | 435,722 | 177,059 | ||||
Net increase (decrease) in cash | $ | 1,481 | $ | (1,649,986 | ) |
Six Months Ended June 30, | ||||||
2018 | 2017 | |||||
(in thousands) | ||||||
Drilling, completion and infrastructure | $ | (650,058 | ) | $ | (291,767 | ) |
Additions to midstream assets | (94,503 | ) | (4,444 | ) | ||
Acquisition of leasehold interests | (101,216 | ) | (1,860,980 | ) | ||
Acquisition of mineral interests | (253,102 | ) | (122,679 | ) | ||
Acquisition of midstream assets | — | (50,279 | ) | |||
Purchase of other property, equipment and land | (3,978 | ) | (13,825 | ) | ||
Investment in real estate | (110,480 | ) | — | |||
Proceeds from sale of assets | 3,879 | 1,295 | ||||
Funds held in escrow | 10,989 | 121,391 | ||||
Equity investments | (125 | ) | (188 | ) | ||
Net cash used in investing activities | $ | (1,198,594 | ) | $ | (2,221,476 | ) |
Financial Covenant | Required Ratio |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | Not greater than 4.0 to 1.0 |
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 |
Financial Covenant | Required Ratio |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | Not greater than 4.0 to 1.0 |
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 |
• | $1,225.0 million to $1,300.0 million will be spent on drilling and completing 170 to 190 gross (146 to 163 net) horizontal wells across our operated leasehold acreage in the Northern Midland and Southern Delaware Basins, with an average lateral length of approximately 9.300 feet; and |
• | $175.0 million to $200.0 million will be spent on infrastructure and other expenditures, excluding the cost of any leasehold and mineral interest acquisitions. |
Exhibit Number | Description |
3.1 | |
3.2 | |
4.1 | |
4.2 |
Exhibit Number | Description |
4.3 | |
4.4 | |
4.5 | |
4.6 | |
4.7 | |
4.8 | |
10.1 | |
31.1* | |
31.2* | |
32.1** | |
32.2** | |
101.INS* | XBRL Instance Document. |
101.SCH* | XBRL Taxonomy Extension Schema Document. |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase. |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document. |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document. |
* | Filed herewith. |
** | The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompany this Annual Report on Form 10-K pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. |
DIAMONDBACK ENERGY, INC. | ||
Date: | August 9, 2018 | /s/ Travis D. Stice |
Travis D. Stice | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: | August 9, 2018 | /s/ Teresa L. Dick |
Teresa L. Dick | ||
Chief Financial Officer | ||
(Principal Financial and Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Diamondback Energy, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 9, 2018 | /s/ Travis D. Stice | |
Travis D. Stice | |||
Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Diamondback Energy, Inc. |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | August 9, 2018 | /s/ Teresa L. Dick | |
Teresa L. Dick | |||
Chief Financial Officer |
Date: | August 9, 2018 | /s/ Travis D. Stice | |
Travis D. Stice | |||
Chief Executive Officer |
Date: | August 9, 2018 | /s/ Teresa L. Dick | |
Teresa L. Dick | |||
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 03, 2018 |
|
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Diamondback Energy, Inc. | |
Entity Central Index Key | 0001539838 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 98,621,440 |
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 4,286,320 | $ 4,105,865 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 200,000,000 | 200,000,000 |
Shares Issued | 98,619,628 | 98,167,289 |
Shares Outstanding | 98,619,628 | 98,167,289 |
Consolidated Statements of Operations Consolidated Statements of Operations (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
General and Administrative Expense [Member] | ||||
Non-cash stock based compensation, net of capitalized amount | $ 5,650 | $ 6,168 | $ 13,101 | $ 13,231 |
Description of the Business and Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Basis of Presentation | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Organization and Description of the Business Diamondback Energy, Inc. (“Diamondback” or the “Company”), together with its subsidiaries, is an independent oil and gas company currently focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. Diamondback was incorporated in Delaware on December 30, 2011. The wholly-owned subsidiaries of Diamondback, as of June 30, 2018, include Diamondback E&P LLC, a Delaware limited liability company, Diamondback O&G LLC, a Delaware limited liability company, Viper Energy Partners GP LLC, a Delaware limited liability company, Rattler Midstream LLC (formerly known as White Fang Energy LLC), a Delaware limited liability company, and Tall City Towers LLC, a Delaware limited liability company. The consolidated subsidiaries include these wholly-owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (the “Partnership”), and the Partnership’s wholly-owned subsidiary Viper Energy Partners LLC, a Delaware limited liability company (the “Operating Company”). Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. The Partnership is consolidated in the financial statements of the Company. As of June 30, 2018, the Company owned approximately 64% of the Partnership’s total units outstanding. The Company’s wholly-owned subsidiary, Viper Energy Partners GP LLC, is the General Partner of the Partnership. These financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2017, which contains a summary of the Company’s significant accounting policies and other disclosures. |
Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities assumed, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. Investments The Partnership has an equity interest in a limited partnership that is so minor that the Partnership has no influence over the limited partnership’s operating and financial policies. This interest was acquired during the year ended December 31, 2014 and is accounted for under the cost method. Effective January 1, 2018, the Partnership adopted Accounting Standards Update 2016-01 which requires the Partnership to measure this investment at fair value which resulted in a downward adjustment of $18.7 million to record the impact of this adoption. For the three months and six months ended June 30, 2018, the Partnership recorded a gain of $4.5 million and $5.4 million, respectively, which then increased the Partnership’s investment balance to $20.4 million, which is included in other assets in the accompanying consolidated balance sheets. New Accounting Pronouncements Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This standard included a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminated industry-specific revenue guidance, required enhanced disclosures about revenue, provided guidance for transactions that were not previously addressed comprehensively and improved guidance for multiple-element arrangements. The Company adopted this Accounting Standards Update effective January 1, 2018 using the modified retrospective approach. The Company utilized a bottom-up approach to analyze the impact of the new standard by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts and the impact of adopting this standards update on its total revenues, operating income and its consolidated balance sheet. The adoption of this standard did not result in a cumulative-effect adjustment. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Partnership adopted this standard effective January 1, 2018 by means of a negative cumulative-effect adjustment totaling $18.7 million. In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments”. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The Company adopted this update effective January 1, 2018 using the retrospective transition method. Adoption of this standard did not have an effect on the presentation on the Statement of Cash Flows. In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-18, “Statement of Cash Flows - Restricted Cash”. This update affects entities that have restricted cash or restricted cash equivalents. The Company adopted this update effective January 1, 2018. The adoption of this update did not have an effect on the presentation on the Statement of Cash Flows. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Company adopted this update prospectively effective January 1, 2018. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company believes the primary impact of adopting this standard will be the recognition of assets and liabilities on the balance sheet for current operating leases. The Company is still evaluating the impact of this standard. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not believe the adoption of this standard will have a material impact on the Company’s consolidated financial statements since the Company does not have a history of credit losses. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact. |
Revenue from Contracts with Customers |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue from Contracts with Customers Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler Midstream LLC (“Rattler”) provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the fresh water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel fresh water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligation under any of our product sales contracts. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months ended June 30, 2018, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded. |
Acquisitions |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ACQUISITIONS On January 31, 2018, Tall City Towers LLC, a subsidiary of the Company, completed its acquisition of the Fasken Center office buildings in Midland, TX where the Company’s corporate offices are located for a net purchase price of $109.7 million. On February 28, 2017, the Company completed its acquisition of certain oil and natural gas properties, midstream assets and other related assets in the Delaware Basin for an aggregate purchase price consisting of $1.74 billion in cash and 7.69 million shares of the Company’s common stock, of which approximately 1.15 million shares were placed in an indemnity escrow. This transaction included the acquisition of (i) approximately 100,306 gross (80,339 net) acres primarily in Pecos and Reeves counties for approximately $2.5 billion and (ii) midstream assets for approximately $47.6 million. The Company used the net proceeds from its December 2016 equity offering, net proceeds from its December 2016 debt offering, cash on hand and other financing sources to fund the cash portion of the purchase price for this acquisition. The following represents the fair value of the assets and liabilities assumed on the acquisition date. The aggregate consideration transferred was $2.5 billion, resulting in no goodwill or bargain purchase gain.
The Company included in its consolidated statements of operations revenues of $48.0 million and direct operating expenses of $6.9 million for the period from February 28, 2017 to June 30, 2017 due to the acquisition. Pro Forma Financial Information The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three months and six months ended June 30, 2017 have been prepared to give effect to the February 28, 2017 acquisition as if it had occurred on January 1, 2016. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisitions occurred on January 1, 2016. The pro forma data also necessarily exclude various operation expenses related to the properties and the financial statements should not be viewed as indicative of operations in future periods.
|
Viper Energy Partners LP |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Viper Energy Partners LP | VIPER ENERGY PARTNERS LP The Partnership is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Market under the symbol “VNOM”. The Partnership was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. The Partnership is currently focused on oil and natural gas properties in the Permian Basin and the Eagle Ford Shale. Viper Energy Partners GP LLC, a fully-consolidated subsidiary of Diamondback, serves as the general partner of the Partnership. As of June 30, 2018, the Company owned approximately 64% of the Partnership’s total units outstanding. Recapitalization, Tax Status Election and Related Transactions by Viper In March 2018, the Partnership announced that the Board of Directors of the General Partner had unanimously approved a change of the Partnership’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 the Partnership (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of the Operating Company, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, the General Partner and the Operating Company. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to the Partnership the 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of the Partnership’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of the Operating Company pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, the Partnership continued to be the managing member of the Operating Company, with sole control of its operations, and owned approximately 36% of the outstanding units issued by the Operating Company, and the Company owned the remaining approximately 64% of the outstanding units issued by the Operating Company. The Operating Company units and the Partnership’s Class B units owned by the Company are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). On May 10, 2018, the change in the Partnership’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) the General Partner made a cash capital contribution of $1.0 million to the Partnership in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1.0 million to the Partnership in respect of the Class B units. The Company, as the holder of the Class B units, and the General Partner, as the holder of the general partner interest, are entitled to receive an 8% annual distribution on the outstanding amount of these capital contributions, payable quarterly, as a return on this invested capital. On May 10, 2018, the Company also exchanged 731,500 Class B units and 731,500 units in the Operating Company for 731,500 common units of the Partnership and a cash amount of $10,000 representing a proportionate return of the $1.0 million invested capital in respect of the Class B units. The General Partner continues to serve as the Partnership’s general partner and the Company continues to control the Partnership. After the effectiveness of the tax status election and the completion of related transactions, the Partnership’s minerals business continues to be conducted through the Operating Company, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to the Partnership’s business, including operational effectiveness, acquisition and disposition transactional planning flexibility and income tax efficiency. For additional information regarding the tax status election and related transactions, please refer to the Partnership’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and the Partnership’s Current Report on Form 8-K filed with the SEC on May 15, 2018. Partnership Agreement The second amended and restated agreement of limited partnership, dated as of May 9, 2018, as amended as of May 10, 2018 (the “Partnership Agreement”), requires the Partnership to reimburse the General Partner for all direct and indirect expenses incurred or paid on the Partnership’s behalf and all other expenses allocable to the Partnership or otherwise incurred by the General Partner in connection with operating the Partnership’s business. The Partnership Agreement does not set a limit on the amount of expenses for which the General Partner and its affiliates may be reimbursed. These expenses include salary, bonus, incentive compensation and other amounts paid to persons who perform services for the Partnership or on its behalf and expenses allocated to the General Partner by its affiliates. The General Partner is entitled to determine the expenses that are allocable to the Partnership. For the three months ended June 30, 2018 and 2017, the General Partner allocated $0.6 million to the Partnership. For the six months ended June 30, 2018 and 2017, the General Partner allocated $1.2 million to the Partnership. Tax Sharing In connection with the closing of the Viper Offering, the Partnership entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which the Partnership agreed to reimburse Diamondback for its share of state and local income and other taxes for which the Partnership’s results are included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on June 23, 2014. The amount of any such reimbursement is limited to the tax the Partnership would have paid had it not been included in a combined group with Diamondback. Diamondback may use its tax attributes to cause its combined or consolidated group, of which the Partnership may be a member for this purpose, to owe less or no tax. In such a situation, the Partnership agreed to reimburse Diamondback for the tax the Partnership would have owed had the tax attributes not been available or used for the Partnership’s benefit, even though Diamondback had no cash tax expense for that period. For the three months and six months ended June 30, 2018, the Partnership accrued state income tax expense of $0.2 million for its share of Texas margin tax for which the Partnership’s results are included in a combined tax return filed by Diamondback. Other Agreements See Note 12—Related Party Transactions for information regarding the advisory services agreement the Partnership and the General Partner entered into with Wexford Capital LP (“Wexford”). The Partnership has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 9—Debt for a description of this credit facility. |
Property and Equipment |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | PROPERTY AND EQUIPMENT Property and equipment includes the following:
The Company uses the full cost method of accounting for its oil and natural gas properties. Under this method, all acquisition, exploration and development costs, including certain internal costs, are capitalized and amortized on a composite unit of production method based on proved oil, natural gas liquids and natural gas reserves. Internal costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. Costs, including related employee costs, associated with production and operation of the properties are charged to expense as incurred. All other internal costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized internal costs were approximately $6.7 million and $5.1 million for the three months ended June 30, 2018 and 2017, respectively, and $13.7 million and $10.2 million for the six months ended June 30, 2018 and 2017, respectively. Costs associated with unevaluated properties are excluded from the full cost pool until the Company has made a determination as to the existence of proved reserves. The inclusion of the Company’s unevaluated costs into the amortization base is expected to be completed within three to five years. Acquisition costs not currently being amortized are primarily related to unproved acreage that the Company plans to prove up through drilling. The Company has no plans to let any acreage expire. Sales of oil and natural gas properties, whether or not being amortized currently, are accounted for as adjustments of capitalized costs, with no gain or loss recognized, unless such adjustments would significantly alter the relationship between capitalized costs and proved reserves of oil, natural gas liquids and natural gas. Under this method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the proved oil and natural gas properties. Net capitalized costs are limited to the lower of unamortized cost net of deferred income taxes, or the cost center ceiling. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing 12-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions or financial derivatives, if any, that hedge the Company’s oil and natural gas revenue, and excluding the estimated abandonment costs for properties with asset retirement obligations recorded on the balance sheet, (b) the cost of properties not being amortized, if any, and (c) the lower of cost or market value of unproved properties included in the cost being amortized, including related deferred taxes for differences between the book and tax basis of the oil and natural gas properties. If the net book value, including related deferred taxes, exceeds the ceiling, an impairment or non-cash writedown is required. At June 30, 2018, there was $90.0 million in exploration costs and development costs and $35.5 million in capitalized interest that was not subject to depletion. At December 31, 2017, there were $26.0 million in exploration costs and development costs and $22.1 million in capitalized interest that was not subject to depletion. |
Asset Retirement Obligations |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:
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. The current portion of the asset retirement obligation liability is included in other accrued liabilities in the Company’s consolidated balance sheets. |
Equity Method Investments |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS In October 2014, the Company obtained a 25% interest in HMW Fluid Management LLC (“HMW LLC”), which was formed to develop, own and operate an integrated water management system to gather, store, process, treat, distribute and dispose of water to exploration and production companies operating in Midland, Martin and Andrews Counties, Texas. On June 30, 2018, HMW LLC’s operating agreement was amended effective January 1, 2018. As a result of the amendment, the Company will no longer recognize an equity investment in HMW LLC but will instead consolidate its interests in the net assets of HMW LLC. In exchange for the Company’s 25% investment, the Company received a 50% undivided ownership interest in two of the four salt water disposal wells and associated assets previously owned by HMW LLC. The Company’s basis in the assets is equivalent to its basis in the equity investment in HMW LLC. During the six months ended June 30, 2017, the Company invested $0.2 million in this entity and recorded $0.2 million, which is the Company’s share of HMW LLC’s net income, bringing its total investment to $6.7 million at June 30, 2017. |
Debt |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Long-term debt consisted of the following as of the dates indicated:
2024 Senior Notes On October 28, 2016, the Company issued $500.0 million in aggregate principal amount of 4.750% Senior Notes due 2024 (the “2024 Senior Notes”). The 2024 Senior Notes bear interest at a rate of 4.750% per annum, payable semi-annually, in arrears on May 1 and November 1 of each year, commencing on May 1, 2017 and will mature on November 1, 2024. All of the Company’s existing and future restricted subsidiaries that guarantee its revolving credit facility or certain other debt guarantee the 2024 Senior Notes; provided, however, that the 2024 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. The 2024 Senior Notes were issued under, and are governed by, an indenture among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented (the “2024 Indenture”). The 2024 Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit the Company’s ability and the ability of the restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments, declare or pay dividends or make other distributions on capital stock, prepay subordinated indebtedness, sell assets including capital stock of restricted subsidiaries, agree to payment restrictions affecting the Company’s restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of its assets, enter into transactions with affiliates, incur liens, engage in business other than the oil and natural gas business and designate certain of the Company’s subsidiaries as unrestricted subsidiaries. The Company may on any one or more occasions redeem some or all of the 2024 Senior Notes at any time on or after November 1, 2019 at the redemption prices (expressed as percentages of principal amount) of 103.563% for the 12-month period beginning on November 1, 2019, 102.375% for the 12-month period beginning on November 1, 2020, 101.188% for the 12-month period beginning on November 1, 2021 and 100.000% beginning on November 1, 2022 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. Prior to November 1, 2019, the Company may on any one or more occasions redeem all or a portion of the 2024 Senior Notes at a price equal to 100% of the principal amount of the 2024 Senior Notes plus a “make-whole” premium and accrued and unpaid interest to the redemption date. In addition, any time prior to November 1, 2019, the Company may on any one or more occasions redeem the 2024 Senior Notes in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 2024 Senior Notes issued prior to such date at a redemption price of 104.750%, plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from certain equity offerings. 2025 Senior Notes On December 20, 2016, the Company issued $500.0 million in aggregate principal amount of 5.375% Senior Notes due 2025 (the “2025 Senior Notes”). The 2025 Senior Notes bear interest at a rate of 5.375% per annum, payable semi-annually, in arrears on May 31 and November 30 of each year, commencing on May 31, 2017 and will mature on May 31, 2025. All of the Company’s existing and future restricted subsidiaries that guarantee its revolving credit facility or certain other debt guarantee the 2025 Senior Notes, provided, however, that the 2025 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. On January 29, 2018, the Company issued $300.0 million aggregate principal amount of new 5.375% Senior Notes due 2025 (the “New 2025 Notes”) as additional notes under, and subject to the terms of, the 2025 Indenture. The New 2025 Notes were issued in a transaction exempt from the registration requirements under the Securities Act. The Company received approximately $308.4 million in net proceeds, after deducting the initial purchaser’s discount and its estimated offering expenses, but disregarding accrued interest, from the issuance of the New 2025 Notes. The Company used the net proceeds from the issuance of the New 2025 Notes to repay a portion of the outstanding borrowings under its revolving credit facility. The 2025 Indenture contains certain covenants that, subject to certain exceptions and qualifications, among other things, limit the Company’s ability and the ability of the restricted subsidiaries to incur or guarantee additional indebtedness, make certain investments, declare or pay dividends or make other distributions on capital stock, prepay subordinated indebtedness, sell assets including capital stock of restricted subsidiaries, agree to payment restrictions affecting the Company’s restricted subsidiaries, consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets, enter into transactions with affiliates, incur liens, engage in business other than the oil and natural gas business and designate certain of the Company’s subsidiaries as unrestricted subsidiaries. The Company may on any one or more occasions redeem some or all of the 2025 Senior Notes (including the New 2025 Notes) at any time on or after May 31, 2020 at the redemption prices (expressed as percentages of principal amount) of 104.031% for the 12-month period beginning on May 31, 2020, 102.688% for the 12-month period beginning on May 31, 2021, 101.344% for the 12-month period beginning on May 31, 2022 and 100.000% beginning on May 31, 2023 and at any time thereafter with any accrued and unpaid interest to, but not including, the date of redemption. Prior to May 31, 2020, the Company may on any one or more occasions redeem all or a portion of the 2025 Senior Notes (including the New 2025 Notes) at a price equal to 100% of the principal amount of the 2025 Senior Notes (including the New 2025 Notes) plus a “make-whole” premium and accrued and unpaid interest to the redemption date. In addition, any time prior to May 31, 2020, the Company may on any one or more occasions redeem the 2025 Senior Notes (including the New 2025 Notes) in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 2025 Senior Notes (including the New 2025 Notes) issued prior to such date at a redemption price of 105.375%, plus accrued and unpaid interest to the redemption date, with an amount equal to the net cash proceeds from certain equity offerings. The Company’s Credit Facility The Company and Diamondback O&G LLC, as borrower, entered into the second amended and restated credit agreement, dated November 1, 2013, as amended on June 9, 2014, November 13, 2014, June 21, 2016, December 15, 2016 and November 28, 2017, with a syndicate of banks, including Wells Fargo, as administrative agent, and its affiliate Wells Fargo Securities, LLC, as sole book runner and lead arranger. The credit agreement provides for a revolving credit facility in the maximum credit amount of $5.0 billion, subject to a borrowing base based on the Company’s oil and natural gas reserves and other factors (the “borrowing base”). The borrowing base is scheduled to be redetermined, under certain circumstances, annually with an effective date of May 1st, and, under certain circumstances, semi-annually with effective dates of May 1st and November 1st. In addition, the Company and Wells Fargo may each request up to two interim redeterminations of the borrowing base during any 12-month period. As of June 30, 2018, the borrowing base was set at $2.0 billion, the Company had elected a commitment amount of $1.0 billion and the Company had $321.5 million of outstanding borrowings under the revolving credit facility and $678.5 million available for future borrowings under its revolving credit facility. Diamondback O&G LLC is the borrower under the credit agreement. As of December 31, 2017, the credit agreement is guaranteed by the Company, Diamondback E&P LLC and Rattler Midstream LLC (formerly known as White Fang Energy LLC) and will also be guaranteed by any of the Company’s future subsidiaries that are classified as restricted subsidiaries under the credit agreement. The credit agreement is also secured by substantially all of the assets of the Company, Diamondback O&G LLC and the guarantors. The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by the Company that is equal to an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5%, and 3-month LIBOR plus 1.0%) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.25% to 1.25% in the case of the alternate base rate and from 1.25% to 2.25% in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the least of the maximum credit amount, the borrowing base and the elected commitment amount. The Company is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (a) to the extent the loan amount exceeds the commitment or the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (b) in an amount equal to the net cash proceeds from the sale of property when a borrowing base deficiency or event of default exists under the credit agreement and (c) at the maturity date of November 1, 2022. The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below.
The covenant prohibiting additional indebtedness, as amended in November 2017, allows for the issuance of unsecured debt in the form of senior or senior subordinated notes if no default would result from the incurrence of such debt after giving effect thereto and if, in connection with any such issuance, the borrowing base is reduced by 25% of the stated principal amount of each such issuance. As of June 30, 2018 and December 31, 2017, the Company was in compliance with all financial covenants under its revolving credit facility, as then in effect. The lenders may accelerate all of the indebtedness under the Company’s revolving credit facility upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. The Partnership’s Credit Agreement On July 8, 2014, the Partnership entered into a secured revolving credit agreement with Wells Fargo, as administrative agent, certain other lenders and the Operating Company, the Partnership’s consolidated subsidiary, as guarantor. On May 8, 2018, the Operating Company assumed all liabilities as borrower under the credit agreement and the Partnership became a guarantor of the credit agreement. On July 20, 2018, the Operating Company, the Partnership, Wells Fargo and the other lenders amended and restated the credit agreement to reflect the assumption by the Operating Company. The credit agreement, as amended and restated, provides for a revolving credit facility in the maximum credit amount of $2.0 billion and a borrowing base based on the Partnership’s oil and natural gas reserves and other factors (the “borrowing base”) of $475.0 million, subject to scheduled semi-annual and other borrowing base redeterminations. The borrowing base is scheduled to be re-determined semi-annually with effective dates of May 1st and November 1st. In addition, the Operating Company and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12-month period. As of June 30, 2018, the borrowing base was set at $475.0 million, and there was $350.0 million of outstanding borrowings and $125.0 million available for future borrowings under the revolving credit facility. The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by the Operating Company that is equal to an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5% and 3-month LIBOR plus 1.0%) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.75% to 1.75% per annum in the case of the alternate base rate and from 1.75% to 2.75% per annum in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the lesser of the maximum credit amount and the borrowing base. The Operating Company is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (i) to the extent the loan amount exceeds the commitment or the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (ii) in an amount equal to the net cash proceeds from the sale of property when a borrowing base deficiency or event of default exists under the credit agreement and (iii) at the maturity date of November 1, 2022. The loan is secured by substantially all of the assets of the Partnership and the Operating Company. The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, purchases of margin stock, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements, and require the maintenance of the financial ratios described below:
The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $400.0 million in the form of senior unsecured notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. The lenders may accelerate all of the indebtedness under the credit agreement upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. |
Capital Stock and Earnings Per Share |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE Diamondback completed no equity offerings during the six months ended June 30, 2018 and June 30, 2017. Partnership Equity Offerings In January 2017, the Partnership completed an underwritten public offering of 9,775,000 common units, which included 1,275,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. The Partnership received net proceeds from this offering of approximately $147.5 million, after deducting underwriting discounts and commissions and estimated offering expenses, of which the Partnership used $120.5 million to repay the outstanding borrowings under its revolving credit agreement and the balance was used for general partnership purposes, which included additional acquisitions. Earnings Per Share The Company’s basic earnings per share amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share include the effect of potentially dilutive shares outstanding for the period. Additionally, for the diluted earnings per share computation, the per share earnings of the Partnership are included in the consolidated earnings per share computation based on the consolidated group’s holdings of the subsidiary. A reconciliation of the components of basic and diluted earnings per common share is presented in the table below:
For the three months ended June 30, 2018 and 2017, there were 31,826 shares and 64,411 shares, respectively, and during the both six months ended June 30, 2018 and 2017, there were no shares that were not included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented. These shares could dilute basic earnings per share in future periods. |
Equity-Based Compensation |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Based Compensation | EQUITY-BASED COMPENSATION The following table presents the effects of the equity compensation plans and related costs:
Restricted Stock Units The following table presents the Company’s restricted stock units activity under the Equity Plan during the six months ended June 30, 2018:
The aggregate fair value of restricted stock units that vested during the six months ended June 30, 2018 and 2017 was $10.0 million and $11.4 million, respectively. As of June 30, 2018, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $15.0 million. Such cost is expected to be recognized over a weighted-average period of 1.6 years. Performance Based Restricted Stock Units To provide long-term incentives for the executive officers to deliver competitive returns to the Company’s stockholders, the Company has granted performance-based restricted stock units to eligible employees. The ultimate number of shares awarded from these conditional restricted stock units is based upon measurement of total stockholder return of the Company’s common stock (“TSR”) as compared to a designated peer group during a two-year or three-year performance period. In February 2018, eligible employees received performance restricted stock unit awards totaling 117,423 units from which a minimum of 0% and a maximum of 200% units could be awarded. The awards have a performance period of January 1, 2018 to December 31, 2020 and cliff vest at December 31, 2020. The fair value of each performance restricted stock unit is estimated at the date of grant using a Monte Carlo simulation, which results in an expected percentage of units to be earned during the performance period. The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the February 2018 awards.
The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the six months ended June 30, 2018:
As of June 30, 2018, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $27.6 million. Such cost is expected to be recognized over a weighted-average period of 1.5 years. Phantom Units Under the Viper LTIP, the Board of Directors of the General Partner is authorized to issue phantom units to eligible employees. The Partnership estimates the fair value of phantom units as the closing price of the Partnership’s common units on the grant date of the award, which is expensed over the applicable vesting period. Upon vesting the phantom units entitle the recipient one common unit of the Partnership for each phantom unit. The following table presents the phantom unit activity under the Viper LTIP for the six months ended June 30, 2018.
The aggregate fair value of phantom units that vested during the six months ended June 30, 2018 was $1.0 million. As of June 30, 2018, the unrecognized compensation cost related to unvested phantom units was $1.9 million. Such cost is expected to be recognized over a weighted-average period of 1.1 years. |
Related Party Transactions |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Advisory Services Agreement - The Partnership In connection with the closing of the Viper Offering, the Partnership and the General Partner entered into an advisory services agreement (the “Viper Advisory Services Agreement”) with Wexford, dated as of June 23, 2014, under which Wexford provides the Partnership and the General Partner with general financial and strategic advisory services related to the business in return for an annual fee of $0.5 million, plus reasonable out-of-pocket expenses. The Viper Advisory Services Agreement had an initial term of two years commencing on June 23, 2014, and will continue for additional one-year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. The Partnership did not pay any amounts during the three months and six months ended June 30, 2018 or June 30, 2017 under the Viper Advisory Services Agreement. Lease Bonus - The Partnership During the three months and six months ended June 30, 2018, the Company did not pay the Partnership any lease bonus payments. During the three months ended June 30, 2017, the Company paid the Partnership $0.1 million in lease bonus payments to extend the term of one lease, reflecting an average bonus of $10,000 per acre. During the six months ended June 30, 2017, the Company paid the Partnership $0.1 million in lease bonus payments to extend the term of two leases, reflecting an average bonus of $7,459 per acre. |
Income Taxes |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The Company’s effective income tax rates were 7.8% and 1.1% for the six months ended June 30, 2018 and 2017, respectively. Total income tax expense for the six months ended June 30, 2018 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to (i) the impact of deferred taxes recognized by the Partnership as a result of its change in tax status, (ii) current and deferred state income taxes, (iii) net income attributable to the non-controlling interest, and (iv) the impact of permanent differences between book and taxable income. The Company recorded a discrete income tax benefit of approximately $0.3 million related to equity-based compensation for the six months ended June 30, 2018 and a discrete benefit of $72.7 million related to deferred taxes on the Partnership’s investment in the Operating Company arising from the change in the Partnership’s tax status. Total income tax expense for the six months ended June 30, 2018 differed from amounts computed by applying the federal statutory rate to pre-tax income primarily due to state income taxes and the change in the valuation allowance which offset the Company’s federal net deferred tax position in that period. The Tax Cuts and Jobs Act, a historic reform of the U.S. federal income tax statutes, was enacted on December 22, 2017. As of the completion of the Company’s financial statements for the year ended December 31, 2017, the Company had substantially completed its accounting for the effects of the enactment of the Tax Cuts and Jobs Act and, with respect to those items for which the Company’s accounting was not complete, the Company made reasonable estimates of the effects on its deferred tax balances. At June 30, 2018, the Company has not made an adjustment to the provisional estimates recorded for the year ended December 31, 2017. The Company has considered in its estimated annual effective tax rate for 2018 the impact of the statutory changes enacted by the Tax Cuts and Jobs Act, including reasonable estimates of those provisions effective for the 2018 tax year. As discussed further in Note 5, on March 29, 2018, the Partnership announced that the Board of Directors of its General Partner had unanimously approved a change of the Partnership’s federal income tax status from that of a pass-through partnership to that of a taxable entity, which change became effective on May 10, 2018. The transactions undertaken in connection with the change in the Partnership’s tax status were not taxable to the Company. Subsequent to the Partnership’s change in tax status, the Partnership’s provision for income taxes for the period ended June 30, 2018 is based on its estimated annual effective tax rate plus discrete items. As such, the Partnership’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. |
Derivatives |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | DERIVATIVES All derivative financial instruments are recorded at fair value. The Company has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the combined consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.” The Company has used fixed price swap contracts, fixed price basis swap contracts and three-way costless collars with corresponding put, short put and call options to reduce price volatility associated with certain of its oil and natural gas sales. With respect to the Company’s fixed price swap contracts and fixed price basis swap contracts, the counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the swap or basis price, and the Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the swap or basis price. The Company has fixed price basis swaps for the spread between the WTI Midland price and the WTI Cushing price. Under the Company’s costless collar contracts, a three-way collar is a combination of three options: a ceiling call, a floor put, and a short put. The counterparty is required to make a payment to the Company if the settlement price for any settlement period is less than the ceiling price to a maximum of the difference between the floor price and the short put price. The Company is required to make a payment to the counterparty if the settlement price for any settlement period is greater than the ceiling price. If the settlement price is between the floor and the ceiling price, there is no payment required. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing (Cushing and Magellan East Houston) and Crude Oil Brent, and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. By using derivative instruments to hedge exposure to changes in commodity prices, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Company, which creates credit risk. The Company’s counterparties are participants in the secured second amended and restated credit agreement, which is secured by substantially all of the assets of the guarantor subsidiaries; therefore, the Company is not required to post any collateral. The Company does not require collateral from its counterparties. The Company has entered into derivative instruments only with counterparties that are also lenders in our credit facility and have been deemed an acceptable credit risk. As of June 30, 2018, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
Balance sheet offsetting of derivative assets and liabilities The fair value of swaps is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions that are with the same counterparty and are subject to contractual terms which provide for net settlement. The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties and the resulting net amounts presented in the Company’s consolidated balance sheets as of June 30, 2018 and December 31, 2017.
The net amounts are classified as current or noncurrent based on their anticipated settlement dates. The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:
None of the Company’s derivatives have been designated as hedges. As such, all changes in fair value are immediately recognized in earnings. The following table summarizes the gains and losses on derivative instruments included in the consolidated statements of operations:
|
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis, including the Company’s derivative instruments and cost method investment. The fair values of the Company’s fixed price swaps, fixed price basis swaps and costless collars are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs. The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017.
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated balance sheets:
The fair value of the revolving credit facility and the Partnership’s revolving credit facility approximates their carrying value based on borrowing rates available to the Company for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Senior Notes was determined using the June 30, 2018 quoted market price, a Level 1 classification in the fair value hierarchy. |
Commitments and Contingencies |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations. |
Subsequent Events |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Recent Acquisition On July 22, 2018, the Company entered into a definitive purchase agreement to acquire all leasehold interests and related assets of Ajax Resources, LLC which includes approximately 25,493 net leasehold acres in the Northern Midland Basin for $900.0 million in cash and approximately 2.6 million shares of the Company’s common stock, subject to certain adjustments. This transaction is expected to close at the end of October 2018, effective as of July 1, 2018. The cash portion of this transaction is expected to be funded through a combination of cash on hand, proceeds from the sale of assets to the Partnership (described below), borrowing under the Company's revolving credit facility and/or proceeds from one more capital markets transactions, which may include a debt offering. Pending Drop-down Transaction On July 27, 2018, the Company entered into a definitive agreement with the Partnership to sell to the Partnership mineral interests underlying 34,349 gross (1,696 net royalty) acres primarily in the Pecos County in the Permian Basin, approximately 80% of which are operated by the Company for $175.0 million, subject to post-closing adjustments (the “Drop-down Transaction”). The Company anticipates that the closing of the Drop-down Transaction will occur in August 2018. Second Quarter Dividend Declaration On August 2, 2018, the Board of Directors of the Company declared a cash dividend for the second quarter of 2018 of $0.125 per share of common stock, payable on August 27, 2018 to its stockholders of record at the close of business on August 20, 2018. Commodity Contracts Subsequent to June 30, 2018, the Company entered into new fixed price basis swaps and three-way costless collars. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing (Cushing and Magellan East Houston) and Crude Oil Brent. The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2018. When aggregating multiple contracts, the weighted average contract price is disclosed.
The Partnership’s Amended and Restated Senior Secured Revolving Credit Agreement On July 20, 2018, the Operating Company, as borrower, and the Partnership, as guarantor, entered into an Amended and Restated Senior Secured Revolving Credit Agreement among Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto, which amended and restated the Senior Secured Revolving Credit Agreement, dated as of July 8, 2014, as amended, to incorporate the terms of an assignment and assumption dated May 8, 2018 by and between the Partnership and the Operating Company, whereby the Partnership assigned its liabilities and rights as borrower under the Senior Secured Revolving Credit Agreement to the Operating Company, with the Operating Company becoming the borrower and assuming all liabilities of the borrower thereunder and the Partnership becoming a guarantor under the Senior Secured Revolving Credit Agreement. All other material terms of the Senior Secured Revolving Credit Agreement remained unchanged and are in effect as of the date of the Amended and Restated Senior Secured Revolving Credit Agreement. The Partnership’s July 2018 Equity Offering In July 2018, the Partnership completed an underwritten public offering of 10,080,000 common units, which included 1,080,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. The Partnership received net proceeds from this offering of approximately $305.3 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Partnership used the net proceeds to purchase units of the Operating Company. The Operating Company in turn used the net proceeds to repay a portion of the $361.5 million then outstanding borrowings under the revolving credit facility. Lease Bonus Payments Subsequent to June 30, 2018, the Company paid the Partnership $2.0 million related to two new leases, reflecting an average bonus of $10,000 per acre. |
Guarantor Financial Statements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Statements | GUARANTOR FINANCIAL STATEMENTS As of June 30, 2018, Diamondback E&P LLC and Diamondback O&G LLC (the “Guarantor Subsidiaries”) are guarantors under the indentures relating to the 2024 Senior Notes and the 2025 Senior Notes, as supplemented. In connection with the issuance of the 2024 Senior Notes and the 2025 Senior Notes (including the New 2025 Senior Notes), the Partnership, the General Partner, Viper Energy Partners LLC and Rattler Midstream LLC were designated as Non-Guarantor Subsidiaries. The following presents condensed consolidated financial information for the Company (which for purposes of this Note 18 is referred to as the “Parent”), the Guarantor Subsidiaries and the Non–Guarantor Subsidiaries on a consolidated basis. Elimination entries presented are necessary to combine the entities. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantor Subsidiaries because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantor Subsidiaries.
|
Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates Certain amounts included in or affecting the Company’s consolidated financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the consolidated financial statements are prepared. These estimates and assumptions affect the amounts the Company reports for assets and liabilities and the Company’s disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Actual results could differ from those estimates. The Company evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Company considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties, asset retirement obligations, the fair value determination of acquired assets and liabilities assumed, equity-based compensation, fair value estimates of commodity derivatives and estimates of income taxes. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This standard included a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminated industry-specific revenue guidance, required enhanced disclosures about revenue, provided guidance for transactions that were not previously addressed comprehensively and improved guidance for multiple-element arrangements. The Company adopted this Accounting Standards Update effective January 1, 2018 using the modified retrospective approach. The Company utilized a bottom-up approach to analyze the impact of the new standard by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts and the impact of adopting this standards update on its total revenues, operating income and its consolidated balance sheet. The adoption of this standard did not result in a cumulative-effect adjustment. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Partnership adopted this standard effective January 1, 2018 by means of a negative cumulative-effect adjustment totaling $18.7 million. In August 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments”. This update apples to all entities that are required to present a statement of cash flows. This update provides guidance on eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The Company adopted this update effective January 1, 2018 using the retrospective transition method. Adoption of this standard did not have an effect on the presentation on the Statement of Cash Flows. In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-18, “Statement of Cash Flows - Restricted Cash”. This update affects entities that have restricted cash or restricted cash equivalents. The Company adopted this update effective January 1, 2018. The adoption of this update did not have an effect on the presentation on the Statement of Cash Flows. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Company adopted this update prospectively effective January 1, 2018. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company believes the primary impact of adopting this standard will be the recognition of assets and liabilities on the balance sheet for current operating leases. The Company is still evaluating the impact of this standard. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not believe the adoption of this standard will have a material impact on the Company’s consolidated financial statements since the Company does not have a history of credit losses. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact. |
Revenue Recognition, Policy [Policy Text Block] | Revenue from Contracts with Customers Sales of oil, natural gas and natural gas liquids are recognized at the point control of the product is transferred to the customer. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, the quality of the oil or natural gas and the prevailing supply and demand conditions. As a result, the price of the oil, natural gas and natural gas liquids fluctuates to remain competitive with other available oil, natural gas and natural gas liquids supplies. Oil sales The Company’s oil sales contracts are generally structured where it delivers oil to the purchaser at a contractually agreed-upon delivery point at which the purchaser takes custody, title and risk of loss of the product. Under this arrangement, the Company or a third party transports the product to the delivery point and receives a specified index price from the purchaser with no deduction. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the price received from the purchaser. Oil revenues are recorded net of any third-party transportation fees and other applicable differentials in the Company’s consolidated statements of operations. Natural gas and natural gas liquids sales Under the Company’s natural gas processing contracts, it delivers natural gas to a midstream processing entity at the wellhead, battery facilities or the inlet of the midstream processing entity’s system. The midstream processing entity gathers and processes the natural gas and remits proceeds to the Company for the resulting sales of natural gas liquids and residue gas. In these scenarios, the Company evaluates whether it is the principal or the agent in the transaction. For those contracts where the Company has concluded it is the principal and the ultimate third party is its customer, the Company recognizes revenue on a gross basis, with transportation, gathering, processing, treating and compression fees presented as an expense in its consolidated statements of operations. In certain natural gas processing agreements, the Company may elect to take its residue gas and/or natural gas liquids in-kind at the tailgate of the midstream entity’s processing plant and subsequently market the product. Through the marketing process, the Company delivers product to the ultimate third-party purchaser at a contractually agreed-upon delivery point and receives a specified index price from the purchaser. In this scenario, the Company recognizes revenue when control transfers to the purchaser at the delivery point based on the index price received from the purchaser. The gathering, processing, treating and compression fees attributable to the gas processing contract, as well as any transportation fees incurred to deliver the product to the purchaser, are presented as transportation, gathering, processing, treating and compression expense in its consolidated statements of operations. Midstream Revenue Substantially all revenues from gathering, compression, water handling, disposal and treatment operations are derived from intersegment transactions for services Rattler Midstream LLC (“Rattler”) provides to exploration and production operations. The portion of such fees shown in the Company’s consolidated financial statements represent amounts charged to interest owners in the Company’s operated wells, as well as fees charged to other third parties for water handling and treatment services provided by Rattler or usage of Rattler’s gathering and compression systems. For gathering and compression revenue, Rattler satisfies its performance obligations and recognizes revenue when low pressure volumes are delivered to a specified delivery point. Revenue is recognized based on the per MMbtu gathering fee or a per barrel gathering fee charged by Rattler in accordance with the gathering and compression agreement. For water handling and treatment revenue, Rattler satisfies its performance obligations and recognizes revenue when the fresh water volumes have been delivered to the fracwater meter for a specified well pad and the wastewater volumes have been metered downstream of the Company’s facilities. For services contracted through third party providers, Rattler’s performance obligation is satisfied when the service performed by the third party provider has been completed. Revenue is recognized based on the per barrel fresh water delivery or a wastewater gathering and disposal fee charged by Rattler in accordance with the water services agreement. Transaction price allocated to remaining performance obligations The Company’s product sales contracts do not originate until production occurs and, therefore, are not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligation under any of our product sales contracts. Contract balances Under the Company’s product sales contracts, it has the right to invoice its customers once the performance obligations have been satisfied, at which point payment is unconditional. Accordingly, the Company’s product sales contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months ended June 30, 2018, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded. |
Fair Value Measurement | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. |
Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information [Table Text Block] | The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three months and six months ended June 30, 2017 have been prepared to give effect to the February 28, 2017 acquisition as if it had occurred on January 1, 2016. The pro forma data are not necessarily indicative of financial results that would have been attained had the acquisitions occurred on January 1, 2016. The pro forma data also necessarily exclude various operation expenses related to the properties and the financial statements should not be viewed as indicative of operations in future periods.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following represents the fair value of the assets and liabilities assumed on the acquisition date. The aggregate consideration transferred was $2.5 billion, resulting in no goodwill or bargain purchase gain.
|
Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and equipment includes the following:
|
Asset Retirement Obligations (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligation [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Retirement Obligations | The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:
|
Debt (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenants |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Partnership Credit Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Line of Credit Facility [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Covenants |
|
Capital Stock and Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reconciliation of basic and diluted net income per share | A reconciliation of the components of basic and diluted earnings per common share is presented in the table below:
|
Equity-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The effects of stock-based compensation plans and related costs | The following table presents the effects of the equity compensation plans and related costs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of restricted stock units | The following table presents the Company’s restricted stock units activity under the Equity Plan during the six months ended June 30, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of grant-date fair values of performance restricted stock units granted and related assumptions | The following table presents a summary of the grant-date fair values of performance restricted stock units granted and the related assumptions for the February 2018 awards.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of performance restricted stock units activity | The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the six months ended June 30, 2018:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Viper Energy Partners LP Long Term Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Share Activity [Table Text Block] | The following table presents the phantom unit activity under the Viper LTIP for the six months ended June 30, 2018.
|
Derivatives (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | As of June 30, 2018, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2018. When aggregating multiple contracts, the weighted average contract price is disclosed.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of netting offsets of derivative assets and liabilities | The following tables present the gross amounts of recognized derivative assets and liabilities, the amounts offset under master netting arrangements with counterparties and the resulting net amounts presented in the Company’s consolidated balance sheets as of June 30, 2018 and December 31, 2017.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments included in the consolidated balance sheet | The net fair value of the Company’s derivative assets and liabilities and their locations on the consolidated balance sheet are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of derivative contract gains and losses included in the consolidated statements of operations | The following table summarizes the gains and losses on derivative instruments included in the consolidated statements of operations:
|
Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement information for financial instruments measured on a recurring basis | The following table provides fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurement information for financial instruments measured on a nonrecurring basis | The following table provides the fair value of financial instruments that are not recorded at fair value in the consolidated balance sheets:
|
Subsequent Events (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | As of June 30, 2018, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
The following tables present the derivative contracts entered into by the Company subsequent to June 30, 2018. When aggregating multiple contracts, the weighted average contract price is disclosed.
|
Guarantor Financial Statements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Operations |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statement of Cash Flows |
|
Description of the Business and Basis of Presentation (Details) |
Jun. 30, 2018 |
---|---|
Viper Energy Partners LP [Member] | |
Noncontrolling Interest [Line Items] | |
Interest in Viper Energy Partners LP (percentage) | 64.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Investment [Line Items] | ||||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 16,064 | $ 16,064 | ||
Gain on revaluation of investment | 4,465 | $ 0 | 5,364 | $ 0 |
Other Noncurrent Assets [Member] | ||||
Investment [Line Items] | ||||
Cost Method Investments | 20,438 | 20,438 | ||
Viper Energy Partners LP [Member] | ||||
Investment [Line Items] | ||||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 18,651 | $ 18,651 |
Asset Retirement Obligations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
Dec. 31, 2017 |
|
Changes in ARO liability | |||||
Asset retirement obligations, beginning of period | $ 21,285 | $ 17,422 | |||
Additional liabilities incurred | 1,535 | 990 | |||
Liabilities acquired | 39 | 2,180 | |||
Liabilities settled | (1,420) | (149) | |||
Accretion expense | $ 365 | $ 350 | 720 | 673 | |
Revisions in estimated liabilities | 15 | (2) | |||
Asset retirement obligations, end of period | 22,174 | 21,114 | 22,174 | 21,114 | |
Less current portion | 394 | 1,575 | 394 | 1,575 | |
Asset retirement obligations - long-term | $ 21,780 | $ 19,539 | $ 21,780 | $ 19,539 | $ 20,122 |
Equity Method Investments (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Oct. 31, 2014 |
|
Schedule of Equity Method Investments [Line Items] | |||
Amount invested in equity method investments | $ 125 | $ 188 | |
Income from equity method investments | $ 0 | 156 | |
HMW Fluid Management LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 25.00% | ||
Amount invested in equity method investments | 188 | ||
Income from equity method investments | 156 | ||
Equity Method Investments | $ 6,694 |
Debt - Long-term Debt (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Dec. 20, 2016 |
Oct. 28, 2016 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 1,967,074 | $ 1,477,347 | ||
Unamortized debt issuance costs | (15,736) | (13,153) | ||
Unamortized Premium Cost | 11,310 | 0 | ||
Senior Unsecured Notes due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | ||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |
Senior Unsecured Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 800,000 | $ 500,000 | ||
Stated interest rate (percentage) | 5.375% | 5.375% | 5.375% | |
Company Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 321,500 | $ 397,000 | ||
Partnership Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 350,000 | $ 93,500 |
Capital Stock and Earnings Per Share - Capital Stock (Details) - USD ($) $ in Thousands |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Jan. 31, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Class of Stock [Line Items] | |||
Repayments of Lines of Credit | $ 388,000 | $ 221,000 | |
Follow-on Public Offering [Member] | Viper Energy Partners LP [Member] | |||
Class of Stock [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 9,775,000 | ||
Sale of Stock, Consideration Received on Transaction | $ 147,500 | ||
Repayments of Lines of Credit | $ 120,500 | ||
Over-Allotment Option [Member] | Viper Energy Partners LP [Member] | |||
Class of Stock [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 1,275,000 |
Capital Stock and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Basic: | ||||
Net income attributable to common stock | $ 219,146 | $ 158,405 | $ 381,958 | $ 294,678 |
Basic weighted average common units outstanding | 98,614,000 | 98,142,000 | 98,584,000 | 95,665,000 |
Basic net income attributable to common stock | $ 2.22 | $ 1.61 | $ 3.87 | $ 3.08 |
Effect of Dilutive Securities: | ||||
Dilutive effect of potential common shares issuable (in shares) | 183,000 | 212,000 | 236,000 | 260,000 |
Diluted: | ||||
Diluted weighted average common shares outstanding | 98,797,000 | 98,354,000 | 98,820,000 | 95,925,000 |
Diluted net income attributable to common stock | $ 2.22 | $ 1.61 | $ 3.87 | $ 3.07 |
Antidilutive securities excluded from earnings per share (in shares) | 31,826 | 64,411 | 0 | 0 |
Equity-Based Compensation - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties | $ 2,349 | $ 1,901 | $ 4,990 | $ 4,244 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
General and administrative expenses | $ 5,650 | $ 6,168 | $ 13,101 | $ 13,231 |
Equity-Based Compensation - Restricted Stock Units (Details) - Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Awards & Units (in shares) | ||
Unvested at December 31, 2017 | 243,577 | |
Granted | 81,633 | |
Vested | (115,711) | |
Forfeited | (5,672) | |
Unvested at June 30, 2018 | 203,827 | |
Weighted Average Grant-Date Fair Value (in dollars per share) | ||
Unvested at December 31, 2017 | $ 90.88 | |
Granted | 113.81 | |
Vested | 86.75 | |
Forfeited | 92.78 | |
Unvested at June 30, 2018 | $ 102.86 | |
Aggregate fair value of share-based awards that vested | $ 10.0 | $ 11.4 |
Unrecognized compensation cost related to unvested awards | $ 15.0 | |
Unrecognized compensation cost, period of recognition (in years) | 1 year 7 months 6 days |
Equity-Based Compensation - Valuation Assumptions (Details) - Equity Plan [Member] - Performance Shares [Member] - $ / shares |
1 Months Ended | 6 Months Ended |
---|---|---|
Feb. 28, 2018 |
Jun. 30, 2018 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 130.96 | |
Three-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 170.45 | |
Risk-free rate (percentage) | 1.99% | |
Company volatility (percentage) | 35.90% |
Equity-Based Compensation - Phantom Units (Details) - Viper Energy Partners LP Long Term Incentive Plan [Member] - Phantom Share Units (PSUs) [Member] $ / shares in Units, $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
$ / shares
shares
| |
Awards & Units (in shares) | |
Unvested at December 31, 2017 | shares | 105,439 |
Granted | shares | 101,403 |
Vested | shares | (46,379) |
Unvested at June 30, 2018 | shares | 160,463 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Unvested at December 31, 2017 | $ / shares | $ 17.10 |
Granted | $ / shares | 23.18 |
Vested | $ / shares | 21.41 |
Unvested at June 30, 2018 | $ / shares | $ 19.70 |
Aggregate fair value of share-based awards that vested | $ | $ 1.0 |
Unrecognized compensation cost related to unvested awards | $ | $ 1.9 |
Unrecognized compensation cost, period of recognition (in years) | 1 year 1 month 6 days |
Related Party Transactions - Related Party Transactions (Details) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 23, 2014
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
|
Jun. 30, 2017
USD ($)
|
|
Viper Energy Partners LP [Member] | |||||
Related Party Transaction [Line Items] | |||||
Payments for Operating Activities | $ 0 | $ 104,000 | $ 0 | $ 100,000 | |
Number of leases extended | 1 | 2 | |||
Average price per acre | $ 10,000 | $ 7,459 | |||
Viper Energy Partners LP [Member] | Wexford [Member] | Advisory Services Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related Party Transaction, Annual Fee for Advisory Services with Related Party | $ 500,000 | ||||
Related Party Transaction, Original Term for Advisory Services with Related Party | 2 years | ||||
Related Party Transaction, Renewal Term for Advisory Services with Related Party | 1 year | ||||
Related Party Transaction, Minimum Period for Cancellation of Renewal Term | 10 days | ||||
Payments for Operating Activities | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Discrete income tax benefit related to deferred taxes recorded during the period | $ 72.7 | |
Effective income tax rate | 7.80% | 1.10% |
Discrete income tax benefit recorded during the period | $ 0.3 |
Derivatives - Open Derivative Positions (Details) |
6 Months Ended |
---|---|
Jun. 30, 2018
MMBTU
$ / bbl
$ / MMBTU
bbl
| |
WTI Cushing Oil Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 4,876,000 |
Fixed Swap Price (in dollars per bbl) | 51.27 |
WTI Cushing Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,638,000 |
Fixed Swap Price (in dollars per bbl) | 52.78 |
WTI Magellan East Houston Oil Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 460,000 |
Fixed Swap Price (in dollars per bbl) | 69.64 |
WTI Magellan East Houston Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 450,000 |
Fixed Swap Price (in dollars per bbl) | 68.17 |
BRENT Oil Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,472,000 |
Fixed Swap Price (in dollars per bbl) | 59.69 |
BRENT Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 725,000 |
Fixed Swap Price (in dollars per bbl) | 72.63 |
Oil Basis Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,760,000 |
Fixed Swap Price (in dollars per bbl) | (0.88) |
Oil Basis Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 0 |
Fixed Swap Price (in dollars per bbl) | 0.00 |
Natural Gas Swaps 2018 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 3,680,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.04 |
Natural Gas Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0.00 |
2018 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 276,000 |
Short put price (per Bbl) | 55.00 |
Floor price (per Bbl) | 65.00 |
Ceiling price (per Bbl) | 78.78 |
2019 Three-Way Collars - WTI Cushing [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,810,000 |
Short put price (per Bbl) | 45.00 |
Floor price (per Bbl) | 55.00 |
Ceiling price (per Bbl) | 70.23 |
2019 Three-Way Collars - BRENT [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,000,000 |
Short put price (per Bbl) | 55.00 |
Floor price (per Bbl) | 65.00 |
Ceiling price (per Bbl) | 82.47 |
2019 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 270,000 |
Short put price (per Bbl) | 55.00 |
Floor price (per Bbl) | 65.00 |
Ceiling price (per Bbl) | 76.83 |
Derivatives - Offsetting Derivative Instruments (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ 0 | $ 531 |
Net amounts of assets presented in the Consolidated Balance Sheet | 0 | 531 |
Gross amounts of liabilities presented in the Consolidated Balance Sheet | 119,844 | 106,670 |
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ 119,844 | $ 106,670 |
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current assets: derivative instruments | $ 0 | $ 531 |
Noncurrent assets: derivative instruments | 0 | 0 |
Total assets | 0 | 531 |
Current liabilities: derivative instruments | 111,330 | 100,367 |
Noncurrent liabilities: derivative instruments | 8,514 | 6,303 |
Total liabilities | $ 119,844 | $ 106,670 |
Derivatives - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Change in fair value of open non-hedge derivative instruments | $ (13,667) | $ 28,635 | $ (13,705) | $ 68,010 |
Gain (loss) on settlement of non-hedge derivative instruments | (44,920) | 4,685 | (77,227) | 3,011 |
Gain (loss) on derivative instruments | $ (58,587) | $ 33,320 | $ (90,932) | $ 71,021 |
Fair Value Measurements - Recurring Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Fixed price swaps | $ (99,406) | $ (106,139) |
Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Fixed price swaps | 20,438 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Fixed price swaps | (119,844) | (106,139) |
Significant Unobservable Inputs Level 3 [Member] | ||
Assets: | ||
Fixed price swaps | $ 0 | $ 0 |
Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Dec. 20, 2016 |
Oct. 28, 2016 |
---|---|---|---|---|
Senior Unsecured Notes due 2024 [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate (percentage) | 4.75% | 4.75% | 4.75% | |
Senior Unsecured Notes due 2025 [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Stated interest rate (percentage) | 5.375% | 5.375% | 5.375% | |
Reported Value Measurement [Member] | Company Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 321,500 | $ 397,000 | ||
Reported Value Measurement [Member] | Senior Unsecured Notes due 2024 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 500,000 | 500,000 | ||
Reported Value Measurement [Member] | Senior Unsecured Notes due 2025 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 800,000 | 500,000 | ||
Reported Value Measurement [Member] | Partnership Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 350,000 | 93,500 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Senior Unsecured Notes due 2024 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 488,750 | 501,855 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | Senior Unsecured Notes due 2025 [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Senior Notes | 800,000 | 515,000 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Company Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | 321,500 | 397,000 | ||
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Partnership Credit Facility [Member] | Nonrecurring [Member] | ||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||||
Revolving credit facility | $ 350,000 | $ 93,500 |
Subsequent Events (Details) |
1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 27, 2018
USD ($)
a
|
Jul. 22, 2018
USD ($)
a
shares
|
Aug. 06, 2018
$ / bbl
bbl
|
Jul. 31, 2018
USD ($)
shares
|
Sep. 30, 2018
USD ($)
|
Jun. 30, 2018
USD ($)
$ / shares
$ / bbl
|
Jun. 30, 2017
USD ($)
$ / shares
|
Jun. 30, 2018
USD ($)
$ / shares
$ / bbl
bbl
|
Jun. 30, 2017
USD ($)
$ / shares
|
Sep. 30, 2018
$ / shares
|
Dec. 31, 2017
USD ($)
|
|
Subsequent Event [Line Items] | |||||||||||
Dividends declared per share | $ / shares | $ 0.125 | $ 0.000 | $ 0.250 | $ 0.000 | |||||||
Viper Energy Partners LP [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments for Operating Activities | $ | $ 0 | $ 104,000 | $ 0 | $ 100,000 | |||||||
Average price per acre | $ | $ 10,000 | $ 7,459 | |||||||||
Partnership Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Long-term Debt, Gross | $ | $ 350,000,000 | $ 350,000,000 | $ 93,500,000 | ||||||||
2018 Three-Way Collars - WTI Magellan East Houston [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Volume (Bbls) | bbl | 276,000 | ||||||||||
Short put price (per Bbl) | 55.00 | 55.00 | |||||||||
Floor price (per Bbl) | 65.00 | 65.00 | |||||||||
Ceiling price (per Bbl) | 78.78 | 78.78 | |||||||||
2019 Three-Way Collars - WTI Magellan East Houston [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Volume (Bbls) | bbl | 270,000 | ||||||||||
Short put price (per Bbl) | 55.00 | 55.00 | |||||||||
Floor price (per Bbl) | 65.00 | 65.00 | |||||||||
Ceiling price (per Bbl) | 76.83 | 76.83 | |||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Net acres acquired | a | 25,493 | ||||||||||
Number of shares issued to acquire leasehold interests and related assets | shares | 2,600,000 | ||||||||||
Dividends Payable, Date Declared | Aug. 02, 2018 | ||||||||||
Dividends declared per share | $ / shares | $ 0.125 | ||||||||||
Dividends Payable, Date to be Paid | Aug. 27, 2018 | ||||||||||
Dividends Payable, Date of Record | Aug. 20, 2018 | ||||||||||
Subsequent Event [Member] | Diamondback Energy, Inc. [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Percentage of mineral acres operated by affiliate | 80.00% | ||||||||||
Subsequent Event [Member] | Viper Energy Partners LP [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments for Operating Activities | $ | $ 2,013,000 | ||||||||||
Number of new leases | 2 | ||||||||||
Average price per acre | $ | $ 10,000 | ||||||||||
Subsequent Event [Member] | Partnership Credit Facility [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Long-term Debt, Gross | $ | $ 361,500,000 | ||||||||||
Subsequent Event [Member] | Follow-on Public Offering [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 10,080,000 | ||||||||||
Sale of Stock, Consideration Received on Transaction | $ | $ 305,300,000 | ||||||||||
Subsequent Event [Member] | Over-Allotment Option [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 1,080,000 | ||||||||||
Subsequent Event [Member] | WTI Oil Swaps 2019 [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Volume (Bbls) | bbl | 180,000 | ||||||||||
Fixed Swap Price (in dollars per bbl) | (10.13) | ||||||||||
Subsequent Event [Member] | 2018 Three-Way Collars - WTI Magellan East Houston [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Volume (Bbls) | bbl | 184,000 | ||||||||||
Short put price (per Bbl) | 55.00 | ||||||||||
Floor price (per Bbl) | 65.00 | ||||||||||
Ceiling price (per Bbl) | 77.40 | ||||||||||
Subsequent Event [Member] | 2019 Three-Way Collars - WTI Magellan East Houston [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Volume (Bbls) | bbl | 362,000 | ||||||||||
Short put price (per Bbl) | 55.00 | ||||||||||
Floor price (per Bbl) | 65.00 | ||||||||||
Ceiling price (per Bbl) | 76.33 | ||||||||||
Subsequent Event [Member] | Midland Basin [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Payments to acquire leasehold interests and related assets | $ | $ 900,000,000 | ||||||||||
Subsequent Event [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Diamondback Energy, Inc. [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Mineral Properties Acquired, Gross Acres | a | 34,349 | ||||||||||
Mineral Properties Acquired, Net Royalty Acres | a | 1,696 | ||||||||||
Business Combination, Consideration Transferred | $ | $ 175,000,000 |
Guarantor Financial Statements - Balance Sheet (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 113,927 | $ 112,446 | $ 16,588 | $ 1,666,574 |
Accounts receivable | 258,890 | 231,613 | ||
Accounts receivable - related party | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 13,264 | 9,108 | ||
Other current assets | 7,266 | 5,434 | ||
Total current assets | 393,347 | 358,601 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 10,315,425 | 9,232,694 | ||
Midstream assets | 343,387 | 191,519 | ||
Other property, equipment and land | 85,472 | 80,776 | ||
Accumulated depletion, depreciation, amortization and impairment | (2,401,240) | (2,161,372) | ||
Net property and equipment | 8,343,044 | 7,343,617 | ||
Funds held in escrow | 0 | 6,304 | ||
Derivative instruments | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred tax asset | 72,049 | 0 | ||
Investment in real estate | 108,564 | 0 | ||
Other assets | 37,391 | 62,463 | ||
Total assets | 8,954,395 | 7,770,985 | ||
Current liabilities: | ||||
Accounts payable-trade | 73,974 | 94,590 | ||
Intercompany payable | 0 | 0 | ||
Other current liabilities | 653,103 | 482,838 | ||
Total current liabilities | 727,077 | 577,428 | ||
Long-term debt | 1,967,074 | 1,477,347 | ||
Derivative instruments | 8,514 | 6,303 | ||
Asset retirement obligations | 21,780 | 20,122 | 19,539 | |
Deferred income taxes | 217,476 | 108,048 | ||
Other long term liabilities | 7 | 0 | ||
Total liabilities | 2,941,928 | 2,189,248 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 5,631,449 | 5,254,860 | ||
Non-controlling interest | 381,018 | 326,877 | ||
Total equity | 6,012,467 | 5,581,737 | 5,286,934 | 4,018,292 |
Total liabilities and equity | 8,954,395 | 7,770,985 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable | 0 | 0 | ||
Accounts receivable - related party | (8,137) | (5,142) | ||
Intercompany receivable | (3,649,117) | (4,892,118) | ||
Inventories | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (3,657,254) | (4,897,260) | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | (414) | (414) | ||
Midstream assets | 0 | 0 | ||
Other property, equipment and land | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | (3,760) | 4,342 | ||
Net property and equipment | (4,174) | 3,928 | ||
Funds held in escrow | 0 | |||
Investment in subsidiaries | (4,265,163) | (3,809,557) | ||
Deferred tax asset | 0 | |||
Investment in real estate | 0 | |||
Other assets | 0 | 0 | ||
Total assets | (7,926,591) | (8,702,889) | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 0 | ||
Intercompany payable | (3,657,254) | (4,897,260) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (3,657,254) | (4,897,260) | ||
Long-term debt | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long term liabilities | 0 | |||
Total liabilities | (3,657,254) | (4,897,260) | ||
Commitments and contingencies | ||||
Stockholders’ equity | (4,075,854) | (4,132,506) | ||
Non-controlling interest | (193,483) | 326,877 | ||
Total equity | (4,269,337) | (3,805,629) | ||
Total liabilities and equity | (7,926,591) | (8,702,889) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 65,218 | 54,074 | 896 | 1,643,226 |
Accounts receivable | 0 | 0 | ||
Accounts receivable - related party | 0 | 0 | ||
Intercompany receivable | 2,862,029 | 2,624,810 | ||
Inventories | 0 | 0 | ||
Other current assets | 441 | 618 | ||
Total current assets | 2,927,688 | 2,679,502 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 0 | 0 | ||
Midstream assets | 0 | 0 | ||
Other property, equipment and land | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Funds held in escrow | 0 | |||
Investment in subsidiaries | 4,262,879 | 3,809,557 | ||
Deferred tax asset | 0 | |||
Investment in real estate | 0 | |||
Other assets | 0 | 0 | ||
Total assets | 7,190,567 | 6,489,059 | ||
Current liabilities: | ||||
Accounts payable-trade | 11 | 1 | ||
Intercompany payable | 37,962 | 132,067 | ||
Other current liabilities | 8,095 | 7,236 | ||
Total current liabilities | 46,068 | 139,304 | ||
Long-term debt | 1,295,574 | 986,847 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 217,476 | 108,048 | ||
Other long term liabilities | 0 | |||
Total liabilities | 1,559,118 | 1,234,199 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 5,631,449 | 5,254,860 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 5,631,449 | 5,254,860 | ||
Total liabilities and equity | 7,190,567 | 6,489,059 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 15,823 | 34,175 | 14,078 | 14,135 |
Accounts receivable | 227,807 | 205,859 | ||
Accounts receivable - related party | 0 | 0 | ||
Intercompany receivable | 787,088 | 2,267,308 | ||
Inventories | 13,264 | 9,108 | ||
Other current assets | 6,530 | 4,461 | ||
Total current assets | 1,050,512 | 2,520,911 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 8,956,243 | 8,129,211 | ||
Midstream assets | 343,387 | 191,519 | ||
Other property, equipment and land | 84,471 | 80,776 | ||
Accumulated depletion, depreciation, amortization and impairment | (2,183,228) | (1,976,248) | ||
Net property and equipment | 7,200,873 | 6,425,258 | ||
Funds held in escrow | 0 | |||
Investment in subsidiaries | 1,284 | 0 | ||
Deferred tax asset | 0 | |||
Investment in real estate | 108,564 | |||
Other assets | 11,831 | 25,609 | ||
Total assets | 8,373,064 | 8,971,778 | ||
Current liabilities: | ||||
Accounts payable-trade | 73,954 | 91,629 | ||
Intercompany payable | 3,619,292 | 4,765,193 | ||
Other current liabilities | 641,960 | 472,933 | ||
Total current liabilities | 4,335,206 | 5,329,755 | ||
Long-term debt | 321,500 | 397,000 | ||
Derivative instruments | 8,514 | 6,303 | ||
Asset retirement obligations | 21,780 | 20,122 | ||
Deferred income taxes | 0 | 0 | ||
Other long term liabilities | 7 | |||
Total liabilities | 4,687,007 | 5,753,180 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 3,686,057 | 3,218,598 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 3,686,057 | 3,218,598 | ||
Total liabilities and equity | 8,373,064 | 8,971,778 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 32,886 | 24,197 | $ 1,614 | $ 9,213 |
Accounts receivable | 31,083 | 25,754 | ||
Accounts receivable - related party | 8,137 | 5,142 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Other current assets | 295 | 355 | ||
Total current assets | 72,401 | 55,448 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 1,359,596 | 1,103,897 | ||
Midstream assets | 0 | 0 | ||
Other property, equipment and land | 1,001 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | (214,252) | (189,466) | ||
Net property and equipment | 1,146,345 | 914,431 | ||
Funds held in escrow | 6,304 | |||
Investment in subsidiaries | 1,000 | 0 | ||
Deferred tax asset | 72,049 | |||
Investment in real estate | 0 | |||
Other assets | 25,560 | 36,854 | ||
Total assets | 1,317,355 | 1,013,037 | ||
Current liabilities: | ||||
Accounts payable-trade | 9 | 2,960 | ||
Intercompany payable | 0 | 0 | ||
Other current liabilities | 3,048 | 2,669 | ||
Total current liabilities | 3,057 | 5,629 | ||
Long-term debt | 350,000 | 93,500 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long term liabilities | 0 | |||
Total liabilities | 353,057 | 99,129 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 389,797 | 913,908 | ||
Non-controlling interest | 574,501 | 0 | ||
Total equity | 964,298 | 913,908 | ||
Total liabilities and equity | $ 1,317,355 | $ 1,013,037 |
Guarantor Financial Statements - Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jun. 30, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Revenues: | ||||
Revenue | $ 526,273 | $ 269,434 | $ 1,006,468 | $ 504,664 |
Lease bonus income | 928 | 583 | 928 | 2,185 |
Other operating income | 2,425 | 0 | 4,466 | 0 |
Costs and expenses: | ||||
Lease operating expenses | 42,647 | 28,989 | 79,992 | 55,615 |
Production and ad valorem taxes | 32,202 | 15,879 | 59,506 | 31,604 |
Depreciation, depletion and amortization | 129,867 | 75,173 | 245,083 | 134,102 |
General and administrative expenses | 14,529 | 11,892 | 30,854 | 25,636 |
Asset retirement obligation accretion | 365 | 350 | 720 | 673 |
Other operating expense | 946 | 0 | 1,476 | 0 |
Total costs and expenses | 244,970 | 137,126 | 457,519 | 255,946 |
Operating Income (Loss) | 281,303 | 132,308 | 548,949 | 248,718 |
Other income (expense): | ||||
Interest expense, net | (17,096) | (8,245) | (30,797) | (20,470) |
Other income, net | 84,472 | 8,324 | 87,208 | 9,469 |
Gain (loss) on derivative instruments, net | (58,587) | 33,320 | (90,932) | 71,021 |
Gain on revaluation of investment | 4,465 | 0 | 5,364 | 0 |
Total other income (expense), net | 13,254 | 33,399 | (29,157) | 60,020 |
Income (loss) before income taxes | 294,557 | 165,707 | 519,792 | 308,738 |
Provision for income taxes | (6,607) | 1,579 | 40,474 | 3,536 |
Net income | 301,164 | 164,128 | 479,318 | 305,202 |
Net income attributable to non-controlling interest | 82,018 | 5,723 | 97,360 | 10,524 |
Net income (loss) attributable to Diamondback Energy, Inc. | 219,146 | 158,405 | 381,958 | 294,678 |
Eliminations [Member] | ||||
Revenues: | ||||
Revenue | 0 | (106) | 0 | (106) |
Lease bonus income | 0 | (106) | 0 | (106) |
Other operating income | 0 | 0 | ||
Costs and expenses: | ||||
Lease operating expenses | 0 | 0 | 0 | 0 |
Production and ad valorem taxes | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 4,627 | 410 | 8,102 | 601 |
General and administrative expenses | (615) | (615) | (1,230) | (1,230) |
Asset retirement obligation accretion | 0 | 0 | 0 | 0 |
Other operating expense | 0 | 0 | ||
Total costs and expenses | 4,012 | (205) | 6,872 | (629) |
Operating Income (Loss) | (4,012) | 99 | (6,872) | 523 |
Other income (expense): | ||||
Interest expense, net | 0 | 0 | 0 | 0 |
Other income, net | (615) | (615) | (1,230) | (1,230) |
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 |
Gain on revaluation of investment | 0 | 0 | ||
Total other income (expense), net | (615) | (615) | (1,230) | (1,230) |
Income (loss) before income taxes | (4,627) | (516) | (8,102) | (707) |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | (4,627) | (516) | (8,102) | (707) |
Net income attributable to non-controlling interest | 52,958 | 5,723 | 68,300 | 10,524 |
Net income (loss) attributable to Diamondback Energy, Inc. | (57,585) | (6,239) | (76,402) | (11,231) |
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Lease bonus income | 0 | 0 | 0 | 0 |
Other operating income | 0 | 0 | ||
Costs and expenses: | ||||
Lease operating expenses | 0 | 0 | 0 | 0 |
Production and ad valorem taxes | 0 | 0 | 0 | 0 |
Depreciation, depletion and amortization | 0 | 0 | 0 | 0 |
General and administrative expenses | 6,539 | 6,432 | 14,029 | 13,540 |
Asset retirement obligation accretion | 0 | 0 | 0 | 0 |
Other operating expense | 0 | 0 | ||
Total costs and expenses | 6,539 | 6,432 | 14,029 | 13,540 |
Operating Income (Loss) | (6,539) | (6,432) | (14,029) | (13,540) |
Other income (expense): | ||||
Interest expense, net | (10,145) | (6,325) | (19,077) | (17,133) |
Other income, net | 211 | 0 | 334 | 1,092 |
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 |
Gain on revaluation of investment | 0 | 0 | ||
Total other income (expense), net | (9,934) | (6,325) | (18,743) | (16,041) |
Income (loss) before income taxes | (16,473) | (12,757) | (32,772) | (29,581) |
Provision for income taxes | 65,271 | 1,579 | 112,352 | 3,536 |
Net income | (81,744) | (14,336) | (145,124) | (33,117) |
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | (81,744) | (14,336) | (145,124) | (33,117) |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 450,867 | 232,918 | 868,619 | 434,496 |
Lease bonus income | 0 | 0 | 0 | 0 |
Other operating income | 2,367 | 4,358 | ||
Costs and expenses: | ||||
Lease operating expenses | 42,647 | 28,989 | 79,992 | 55,615 |
Production and ad valorem taxes | 27,335 | 13,106 | 50,400 | 26,761 |
Depreciation, depletion and amortization | 111,980 | 65,091 | 212,196 | 115,982 |
General and administrative expenses | 6,395 | 4,521 | 13,134 | 9,630 |
Asset retirement obligation accretion | 365 | 350 | 720 | 673 |
Other operating expense | 946 | 1,476 | ||
Total costs and expenses | 213,939 | 116,756 | 397,398 | 216,690 |
Operating Income (Loss) | 236,928 | 116,162 | 471,221 | 217,806 |
Other income (expense): | ||||
Interest expense, net | (3,699) | (1,277) | (6,370) | (2,082) |
Other income, net | 84,429 | 8,626 | 87,265 | 9,480 |
Gain (loss) on derivative instruments, net | (58,587) | 33,320 | (90,932) | 71,021 |
Gain on revaluation of investment | 0 | 0 | ||
Total other income (expense), net | 22,143 | 40,669 | (10,037) | 78,419 |
Income (loss) before income taxes | 259,071 | 156,831 | 461,184 | 296,225 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net income | 259,071 | 156,831 | 461,184 | 296,225 |
Net income attributable to non-controlling interest | 0 | 0 | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 259,071 | 156,831 | 461,184 | 296,225 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 75,406 | 36,622 | 137,849 | 70,274 |
Lease bonus income | 928 | 689 | 928 | 2,291 |
Other operating income | 58 | 108 | ||
Costs and expenses: | ||||
Lease operating expenses | 0 | 0 | 0 | 0 |
Production and ad valorem taxes | 4,867 | 2,773 | 9,106 | 4,843 |
Depreciation, depletion and amortization | 13,260 | 9,672 | 24,785 | 17,519 |
General and administrative expenses | 2,210 | 1,554 | 4,921 | 3,696 |
Asset retirement obligation accretion | 0 | 0 | 0 | 0 |
Other operating expense | 0 | 0 | ||
Total costs and expenses | 20,480 | 14,143 | 39,220 | 26,345 |
Operating Income (Loss) | 54,926 | 22,479 | 98,629 | 43,929 |
Other income (expense): | ||||
Interest expense, net | (3,252) | (643) | (5,350) | (1,255) |
Other income, net | 447 | 313 | 839 | 127 |
Gain (loss) on derivative instruments, net | 0 | 0 | 0 | 0 |
Gain on revaluation of investment | 4,465 | 5,364 | ||
Total other income (expense), net | 1,660 | (330) | 853 | (1,128) |
Income (loss) before income taxes | 56,586 | 22,149 | 99,482 | 42,801 |
Provision for income taxes | (71,878) | 0 | (71,878) | 0 |
Net income | 128,464 | 22,149 | 171,360 | 42,801 |
Net income attributable to non-controlling interest | 29,060 | 0 | 29,060 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 99,404 | 22,149 | 142,300 | 42,801 |
Oil sales | ||||
Revenues: | ||||
Revenue | 460,437 | 237,884 | 879,705 | 444,958 |
Oil sales | Eliminations [Member] | ||||
Revenues: | ||||
Revenue | 65,885 | 31,771 | 121,572 | 60,615 |
Oil sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Oil sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 394,552 | 206,113 | 758,133 | 384,343 |
Oil sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Natural gas sales | ||||
Revenues: | ||||
Revenue | 11,365 | 12,693 | 25,743 | 22,615 |
Natural gas sales | Eliminations [Member] | ||||
Revenues: | ||||
Revenue | 2,651 | 1,954 | 5,229 | 3,301 |
Natural gas sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Natural gas sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 8,714 | 10,739 | 20,514 | 19,314 |
Natural gas sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Natural gas liquid sales | ||||
Revenues: | ||||
Revenue | 43,135 | 16,857 | 76,248 | 32,359 |
Natural gas liquid sales | Eliminations [Member] | ||||
Revenues: | ||||
Revenue | 5,884 | 2,208 | 10,012 | 4,067 |
Natural gas liquid sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Natural gas liquid sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 37,251 | 14,649 | 66,236 | 28,292 |
Natural gas liquid sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Royalty [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Royalty [Member] | Eliminations [Member] | ||||
Revenues: | ||||
Revenue | (74,420) | (35,933) | (136,813) | (67,983) |
Royalty [Member] | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Royalty [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Royalty [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 74,420 | 35,933 | 136,813 | 67,983 |
Midstream services | ||||
Revenues: | ||||
Revenue | 7,983 | 1,417 | 19,378 | 2,547 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 17,601 | 1,828 | 28,790 | 2,682 |
Midstream services | Eliminations [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Midstream services | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Midstream services | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 7,983 | 1,417 | 19,378 | 2,547 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 17,601 | 1,828 | 28,790 | 2,682 |
Midstream services | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Revenues: | ||||
Revenue | 0 | 0 | 0 | 0 |
Costs and expenses: | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Gathering and Transportation [Member] | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | 6,813 | 3,015 | 11,098 | 5,634 |
Gathering and Transportation [Member] | Eliminations [Member] | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Gathering and Transportation [Member] | Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | 0 | 0 | 0 | 0 |
Gathering and Transportation [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | 6,670 | 2,871 | 10,690 | 5,347 |
Gathering and Transportation [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Costs and expenses: | ||||
Cost of Goods and Services Sold | $ 143 | $ 144 | $ 408 | $ 287 |
Guarantor Financial Statements - Cash Flow Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2018 |
Mar. 31, 2017 |
Jun. 30, 2018 |
Jun. 30, 2017 |
|
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | $ 764,353 | $ 394,431 | ||
Cash flows from investing activities: | ||||
Additions to oil and natural gas properties | (650,058) | (291,767) | ||
Additions to midstream assets | (94,503) | (4,444) | ||
Purchase of other property, equipment and land | (3,978) | (13,825) | ||
Acquisition of leasehold interests | (101,216) | (1,860,980) | ||
Acquisition of mineral interests | (253,102) | (122,679) | ||
Acquisition of midstream assets | 0 | (50,279) | ||
Proceeds from sale of assets | 3,879 | 1,295 | ||
Funds held in escrow | 10,989 | 121,391 | ||
Equity investments | (125) | (188) | ||
Intercompany transfers | 0 | 0 | ||
Investment in real estate | $ (109,700) | (110,480) | 0 | |
Net cash used in investing activities | (1,198,594) | (2,221,476) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowing under credit facility | 569,000 | 266,000 | ||
Repayment on credit facility | (388,000) | (221,000) | ||
Proceeds from senior notes | 312,000 | 0 | ||
Debt issuance costs | (4,375) | (1,605) | ||
Public offering costs | (2,288) | (296) | ||
Proceeds from public offerings | 0 | 147,725 | ||
Contributions to subsidiaries | 0 | |||
Contributions by members | 0 | |||
Distributions from subsidiary | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 358 | ||
Dividends to stockholders | (12,327) | 0 | ||
Distributions to non-controlling interest | (38,288) | (14,123) | ||
Intercompany transfers | 0 | |||
Net cash provided by financing activities | 435,722 | 177,059 | ||
Net increase (decrease) in cash and cash equivalents | $ (1,649,986) | 1,481 | (1,649,986) | |
Cash and cash equivalents at beginning of period | 112,446 | 1,666,574 | 112,446 | 1,666,574 |
Cash and cash equivalents at end of period | 113,927 | 16,588 | ||
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
Cash flows from investing activities: | ||||
Additions to oil and natural gas properties | 0 | 0 | ||
Additions to midstream assets | 0 | 0 | ||
Purchase of other property, equipment and land | 0 | 0 | ||
Acquisition of leasehold interests | 0 | 0 | ||
Acquisition of mineral interests | 0 | 0 | ||
Acquisition of midstream assets | 0 | |||
Proceeds from sale of assets | 0 | 0 | ||
Funds held in escrow | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Intercompany transfers | 0 | 0 | ||
Investment in real estate | 0 | |||
Net cash used in investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Proceeds from borrowing under credit facility | 0 | 0 | ||
Repayment on credit facility | 0 | 0 | ||
Proceeds from senior notes | 0 | |||
Debt issuance costs | 0 | 0 | ||
Public offering costs | 0 | 0 | ||
Proceeds from public offerings | 0 | |||
Contributions to subsidiaries | (2,000) | |||
Contributions by members | (2,000) | |||
Distributions from subsidiary | (68,771) | (40,572) | ||
Proceeds from exercise of stock options | 0 | |||
Dividends to stockholders | 0 | |||
Distributions to non-controlling interest | 68,771 | 40,572 | ||
Intercompany transfers | 0 | |||
Net cash provided by financing activities | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | (21,030) | (25,139) | ||
Cash flows from investing activities: | ||||
Additions to oil and natural gas properties | 0 | 0 | ||
Additions to midstream assets | 0 | 0 | ||
Purchase of other property, equipment and land | 0 | 0 | ||
Acquisition of leasehold interests | 0 | 0 | ||
Acquisition of mineral interests | 0 | 0 | ||
Acquisition of midstream assets | 0 | |||
Proceeds from sale of assets | 0 | 0 | ||
Funds held in escrow | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Intercompany transfers | (22,310) | (1,657,407) | ||
Investment in real estate | 0 | |||
Net cash used in investing activities | (22,310) | (1,657,407) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowing under credit facility | 0 | 0 | ||
Repayment on credit facility | 0 | 0 | ||
Proceeds from senior notes | 312,000 | |||
Debt issuance costs | (3,706) | (635) | ||
Public offering costs | (254) | (79) | ||
Proceeds from public offerings | 0 | |||
Contributions to subsidiaries | 1,000 | |||
Contributions by members | 0 | |||
Distributions from subsidiary | 68,771 | 40,572 | ||
Proceeds from exercise of stock options | 358 | |||
Dividends to stockholders | (12,327) | |||
Distributions to non-controlling interest | 0 | 0 | ||
Intercompany transfers | (309,000) | |||
Net cash provided by financing activities | 54,484 | 40,216 | ||
Net increase (decrease) in cash and cash equivalents | 11,144 | (1,642,330) | ||
Cash and cash equivalents at beginning of period | 54,074 | 1,643,226 | 54,074 | 1,643,226 |
Cash and cash equivalents at end of period | 65,218 | 896 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 673,171 | 358,123 | ||
Cash flows from investing activities: | ||||
Additions to oil and natural gas properties | (650,058) | (291,767) | ||
Additions to midstream assets | (94,503) | (4,444) | ||
Purchase of other property, equipment and land | (3,978) | (13,825) | ||
Acquisition of leasehold interests | (101,216) | (1,860,980) | ||
Acquisition of mineral interests | (46) | 0 | ||
Acquisition of midstream assets | (50,279) | |||
Proceeds from sale of assets | 3,313 | 1,295 | ||
Funds held in escrow | 10,989 | 121,391 | ||
Equity investments | (125) | (188) | ||
Intercompany transfers | 22,310 | 1,657,407 | ||
Investment in real estate | (110,480) | |||
Net cash used in investing activities | (923,794) | (441,390) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowing under credit facility | 312,500 | 162,000 | ||
Repayment on credit facility | (388,000) | (78,000) | ||
Proceeds from senior notes | 0 | |||
Debt issuance costs | (229) | (790) | ||
Public offering costs | 0 | 0 | ||
Proceeds from public offerings | 0 | |||
Contributions to subsidiaries | 0 | |||
Contributions by members | 0 | |||
Distributions from subsidiary | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | |||
Dividends to stockholders | 0 | |||
Distributions to non-controlling interest | 0 | 0 | ||
Intercompany transfers | 308,000 | |||
Net cash provided by financing activities | 232,271 | 83,210 | ||
Net increase (decrease) in cash and cash equivalents | (18,352) | (57) | ||
Cash and cash equivalents at beginning of period | 34,175 | 14,135 | 34,175 | 14,135 |
Cash and cash equivalents at end of period | 15,823 | 14,078 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash provided by (used in) operating activities | 112,212 | 61,447 | ||
Cash flows from investing activities: | ||||
Additions to oil and natural gas properties | 0 | 0 | ||
Additions to midstream assets | 0 | 0 | ||
Purchase of other property, equipment and land | 0 | 0 | ||
Acquisition of leasehold interests | 0 | 0 | ||
Acquisition of mineral interests | (253,056) | (122,679) | ||
Acquisition of midstream assets | 0 | |||
Proceeds from sale of assets | 566 | 0 | ||
Funds held in escrow | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Intercompany transfers | 0 | 0 | ||
Investment in real estate | 0 | |||
Net cash used in investing activities | (252,490) | (122,679) | ||
Cash flows from financing activities: | ||||
Proceeds from borrowing under credit facility | 256,500 | 104,000 | ||
Repayment on credit facility | 0 | (143,000) | ||
Proceeds from senior notes | 0 | |||
Debt issuance costs | (440) | (180) | ||
Public offering costs | (2,034) | (217) | ||
Proceeds from public offerings | 147,725 | |||
Contributions to subsidiaries | 1,000 | |||
Contributions by members | 2,000 | |||
Distributions from subsidiary | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | |||
Dividends to stockholders | 0 | |||
Distributions to non-controlling interest | (107,059) | (54,695) | ||
Intercompany transfers | 1,000 | |||
Net cash provided by financing activities | 148,967 | 53,633 | ||
Net increase (decrease) in cash and cash equivalents | 8,689 | (7,599) | ||
Cash and cash equivalents at beginning of period | $ 24,197 | $ 9,213 | 24,197 | 9,213 |
Cash and cash equivalents at end of period | $ 32,886 | $ 1,614 |
7S;VOS+& TK9W. (-?C! M9D-"Y3DFD7J=IDS;IU&G=9RYQ$E2(,R"7[M\/2)IE:]0O@(W?\[,QV8CFR;8 MCCQKU=F
.S]=%MYYB#Q$OD_^P<<)](VI
MNNUT<);&=IOOB8N4!FPJX9U]NL8.O=G@<#%NN[=[-;;^:!C93U.-SJ.U^ M0
M2P,$% @ @8L)3>G+3 _ 0 -P0 !D !X;"]W;W)K 8?$.H\=RE5[D[!B$)LQFQ/ 3#)\1#-7G%'PQ!8_T[%N*RV6!U:+ *@JL
MO@E<+0MDBP+9[PIX\J/))4SZ(PD[F6IXM/?"[F7GR,YXO* XQL88#ZB7G.%+
M:/&?S(Z"Q@?S FT[OI;1\::?/@*;?V/Y"5!+ P04 " "!BPE-;(Q0 S???W8)H_:WZ)IRL,S*]UMVB:CP_W;:OY(ZL/>=5X+T*J%L8T&GLA
M)%>9HXG*^:BZVWY0\+W4K[%ZK]L6KQU(<>K:UZ#OH1?_ %!+ P04 " "!
MBPE-_JD\ID<" #I!@ &0 'AL+W=O 9%=9+EC B9'OS576!S=QG2N4^$;D,^L_P)@G=)TQ_">X U%P
M[41I%(P(\W2*FY",CBS*"L6OP]BT9NQ'_D>9O< ?"_RI0&G_K2 8"X)% 1J<
MF:COL,1YQEGO\.%C=5C_$]M]H ZST)OF[,P[E5:HW7L>1G&&[IIHQ!P'C#_'
M;-,_,:96PW"KI?F[?H^DC#J6!
M0OQ.Z*5JO5LRE5?&WN3@^VYNNS(BFM(MERYB\3C3%4U3Z4G$\5<[M1M.:=A^
M__"^4
BW9>-#)Z%TLV&;0EV0BBN:XGO="T'
MW24.#Q7?*7.;ZONV:Y6Z!R6.?1L8#;WH\A]02P,$% @ @8L)3:>$ [O\
M 0 408 !D !X;"]W;W)K
:9X,\\8.E1SY<
M17P@4M@O(P HCN[$N5.M$! GZL>!0/A.'+A H&&%P%G