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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | Common Stock outstanding as of May 3, 2019 |
Common Stock | FANG | Nasdaq Global Select Market |
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. |
Operator | The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease. |
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. |
2024 Indenture | The indenture relating to the 2024 Senior Notes, dated as of October 28, 2016, among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented. |
2025 Indenture | The indenture relating to the 2025 Senior Notes, dated as of December 20, 2016, among the Company, the subsidiary guarantors party thereto and Wells Fargo, as the trustee, as supplemented. |
NYMEX | New York Mercantile Exchange. |
Partnership | Viper Energy Partners LP, a Delaware limited partnership. |
Partnership Agreement | The second amended and restated agreement of limited partnership, dated May 9, 2018, as amended as of May 10, 2018. |
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 $1,250 million. |
2025 Senior Notes | The Company’s 5.375% senior unsecured notes due 2025 in the aggregate principal amount of $800 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 recent acquisition of certain leasehold acres and other assets from Ajax Resources, LLC and our recent acquisition of Energen Corporation, or Energen, 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. |
March 31, | December 31, | |||||
2019 | 2018 | |||||
(In millions, except par values and share data) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | $ | ||||
Accounts receivable: | ||||||
Joint interest and other, net | ||||||
Oil and natural gas sales | ||||||
Inventories | ||||||
Derivative instruments | ||||||
Prepaid expenses and other | ||||||
Total current assets | ||||||
Property and equipment: | ||||||
Oil and natural gas properties, full cost method of accounting ($9,646 million and $9,670 million excluded from amortization at March 31, 2019 and December 31, 2018, respectively) | ||||||
Midstream assets | ||||||
Other property, equipment and land | ||||||
Accumulated depletion, depreciation, amortization and impairment | ( | ) | ( | ) | ||
Net property and equipment | ||||||
Equity method investments | ||||||
Deferred tax asset | ||||||
Investment in real estate, net | ||||||
Other assets | ||||||
Total assets | $ | $ | ||||
Liabilities and Stockholders’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable-trade | $ | $ | ||||
Accrued capital expenditures | ||||||
Other accrued liabilities | ||||||
Revenues and royalties payable | ||||||
Derivative instruments | ||||||
Total current liabilities | ||||||
Long-term debt | ||||||
Derivative instruments | ||||||
Asset retirement obligations | ||||||
Deferred income taxes | ||||||
Other long-term liabilities | ||||||
Total liabilities | ||||||
Commitments and contingencies (Note 18) | ||||||
Stockholders’ equity: | ||||||
Common stock, $0.01 par value, 200,000,000 shares authorized, 164,615,642 issued and outstanding at March 31, 2019; 200,000,000 shares authorized, 164,273,447 issued and outstanding at December 31, 2018 | ||||||
Additional paid-in capital | ||||||
Retained earnings | ||||||
Total Diamondback Energy, Inc. stockholders’ equity | ||||||
Non-controlling interest | ||||||
Total equity | ||||||
Total liabilities and equity | $ | $ |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(In millions, except per share amounts, shares in thousands) | ||||||
Revenues: | ||||||
Oil sales | $ | $ | ||||
Natural gas sales | ||||||
Natural gas liquid sales | ||||||
Lease bonus | ||||||
Midstream services | ||||||
Other operating income | ||||||
Total revenues | ||||||
Costs and expenses: | ||||||
Lease operating expenses | ||||||
Production and ad valorem taxes | ||||||
Gathering and transportation | ||||||
Midstream services | ||||||
Depreciation, depletion and amortization | ||||||
General and administrative expenses | ||||||
Asset retirement obligation accretion | ||||||
Other operating expense | ||||||
Total costs and expenses | ||||||
Income from operations | ||||||
Other income (expense): | ||||||
Interest expense, net | ( | ) | ( | ) | ||
Other income, net | ||||||
Loss on derivative instruments, net | ( | ) | ( | ) | ||
Gain on revaluation of investment | ||||||
Total other expense, net | ( | ) | ( | ) | ||
Income before income taxes | ||||||
Provision for (benefit from) income taxes | ( | ) | ||||
Net income | ||||||
Net income attributable to non-controlling interest | ||||||
Net income attributable to Diamondback Energy, Inc. | $ | $ | ||||
Earnings per common share: | ||||||
Basic | $ | $ | ||||
Diluted | $ | $ | ||||
Weighted average common shares outstanding: | ||||||
Basic | ||||||
Diluted | ||||||
Dividends declared per share | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Non-Controlling Interest | Total | |||||||||||||
Shares | Amount | ||||||||||||||||
($ in millions, shares in thousands) | |||||||||||||||||
Balance December 31, 2017 | $ | $ | $ | ( | ) | $ | $ | ||||||||||
Impact of adoption of ASU 2016-01, net of tax | ( | ) | ( | ) | ( | ) | |||||||||||
Unit-based compensation | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
Distribution to non-controlling interest | ( | ) | ( | ) | |||||||||||||
Exercise of stock options and vesting of restricted stock units | |||||||||||||||||
Net income | |||||||||||||||||
Balance March 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||
Balance December 31, 2018 | $ | $ | $ | $ | $ | ||||||||||||
Net proceeds from issuance of common units - Viper Energy Partners LP | |||||||||||||||||
Stock-based compensation | |||||||||||||||||
Repurchased shares for tax withholding | ( | ) | ( | ) | ( | ) | |||||||||||
Distribution to non-controlling interest | ( | ) | ( | ) | |||||||||||||
Dividend paid | ( | ) | ( | ) | |||||||||||||
Exercise of stock and unit options and awards of restricted stock | |||||||||||||||||
Change in ownership of consolidated subsidiaries, net | ( | ) | |||||||||||||||
Net income | |||||||||||||||||
Balance March 31, 2019 | $ | $ | $ | $ | $ |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(In millions) | ||||||
Cash flows from operating activities: | ||||||
Net income | $ | $ | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for (benefit from) deferred income taxes | ( | ) | ||||
Asset retirement obligation accretion | ||||||
Depreciation, depletion and amortization | ||||||
Amortization of debt issuance costs | ||||||
Change in fair value of derivative instruments | ||||||
Income from equity investment | ( | ) | ||||
Gain on revaluation of investment | ( | ) | ( | ) | ||
Equity-based compensation expense | ||||||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | ( | ) | ||||
Inventories | ( | ) | ( | ) | ||
Prepaid expenses and other | ( | ) | ( | ) | ||
Accounts payable and accrued liabilities | ( | ) | ( | ) | ||
Accrued interest | ||||||
Revenues and royalties payable | ||||||
Net cash provided by operating activities | ||||||
Cash flows from investing activities: | ||||||
Additions to oil and natural gas properties | ( | ) | ( | ) | ||
Additions to midstream assets | ( | ) | ( | ) | ||
Purchase of other property, equipment and land | ( | ) | ( | ) | ||
Acquisition of leasehold interests | ( | ) | ( | ) | ||
Acquisition of mineral interests | ( | ) | ( | ) | ||
Investment in real estate | ( | ) | ||||
Funds held in escrow | ||||||
Equity investments | ( | ) | ||||
Net cash used in investing activities | ( | ) | ( | ) | ||
Cash flows from financing activities: | ||||||
Proceeds from borrowings under credit facility | ||||||
Repayment under credit facility | ( | ) | ( | ) | ||
Proceeds from senior notes | ||||||
Proceeds from joint venture | ||||||
Debt issuance costs | ( | ) | ( | ) | ||
Proceeds from public offerings | ||||||
Repurchased shares for tax withholdings | ( | ) | ||||
Dividends to stockholders | ( | ) | ||||
Distributions to non-controlling interest | ( | ) | ( | ) | ||
Net cash provided by financing activities | ||||||
Net decrease in cash and cash equivalents | ( | ) | ( | ) | ||
Cash and cash equivalents at beginning of period | ||||||
Cash and cash equivalents at end of period | $ | $ | ||||
Supplemental disclosure of cash flow information: | ||||||
Interest paid, net of capitalized interest | $ | $ |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
Supplemental disclosure of non-cash transactions: | ||||||
Change in accrued capital expenditures | $ | ( | ) | $ | ||
Capitalized stock-based compensation | $ | $ | ||||
Asset retirement obligations acquired | $ | $ |
(In millions) | |||
Consideration: | |||
Fair value of the Company's common stock issued | $ | ||
Total consideration | $ | ||
Fair value of liabilities assumed: | |||
Current liabilities | $ | ||
Asset retirement obligation | |||
Long-term debt | |||
Noncurrent derivative instruments | |||
Deferred income taxes | |||
Other long-term liabilities | |||
Amount attributable to liabilities assumed | $ | ||
Fair value of assets acquired: | |||
Total current assets | $ | ||
Oil and natural gas properties | |||
Midstream assets | |||
Investment in real estate | |||
Other property, equipment and land | |||
Asset retirement obligation | |||
Other postretirement assets | |||
Noncurrent income tax receivable, net | |||
Other long term assets | |||
Amount attributable to assets acquired | $ |
Three Months Ended March 31, 2018 | |||
(in millions, except per share amounts) | |||
Revenues | $ | ||
Income from operations | $ | ||
Net income | $ | ||
Basic earnings per common share | $ | ||
Diluted earnings per common share | $ |
Estimated Useful Lives | March 31, 2019 | December 31, 2018 | |||||||
(Years) | (in millions) | ||||||||
Buildings | $ | $ | |||||||
Tenant improvements | |||||||||
Land | N/A | ||||||||
Land improvements | |||||||||
Total real estate assets | |||||||||
Less: accumulated depreciation | ( | ) | ( | ) | |||||
Total investment in land and buildings, net | $ | $ |
Weighted Average Useful Lives | March 31, 2019 | December 31, 2018 | |||||||
(Months) | (in millions) | ||||||||
In-place lease intangibles | $ | $ | |||||||
Less: accumulated amortization | ( | ) | ( | ) | |||||
In-place lease intangibles, net | |||||||||
Above-market lease intangibles | |||||||||
Less: accumulated amortization | ( | ) | ( | ) | |||||
Above-market lease intangibles, net | |||||||||
Total intangible lease assets, net | $ | $ |
March 31, | December 31, | |||||
2019 | 2018 | |||||
(in millions) | ||||||
Oil and natural gas properties: | ||||||
Subject to depletion | $ | $ | ||||
Not subject to depletion | ||||||
Gross oil and natural gas properties | ||||||
Accumulated depletion | ( | ) | ( | ) | ||
Accumulated impairment | ( | ) | ( | ) | ||
Oil and natural gas properties, net | ||||||
Midstream assets | ||||||
Other property, equipment and land | ||||||
Accumulated depreciation | ( | ) | ( | ) | ||
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment | $ | $ | ||||
Balance of costs not subject to depletion: | ||||||
Incurred in 2019 | $ | |||||
Incurred in 2018 | ||||||
Incurred in 2017 | ||||||
Incurred in 2016 | ||||||
Incurred in 2015 | ||||||
Total not subject to depletion | $ |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
Asset retirement obligations, beginning of period | $ | $ | ||||
Additional liabilities incurred | ||||||
Liabilities acquired | ||||||
Liabilities settled | ( | ) | ( | ) | ||
Accretion expense | ||||||
Asset retirement obligations, end of period | ||||||
Less current portion | ||||||
Asset retirement obligations - long-term | $ | $ |
March 31, | December 31, | |||||
2019 | 2018 | |||||
(in millions) | ||||||
4.625% Notes due 2021(1) | $ | $ | ||||
7.320% Medium-term Notes, Series A, due 2022(1) | ||||||
4.750 % Senior Notes due 2024 | ||||||
5.375 % Senior Notes due 2025 | ||||||
7.350% Medium-term Notes, Series A, due 2027(1) | ||||||
7.125% Medium-term Notes, Series B, due 2028(1) | ||||||
DrillCo Agreement | ||||||
Unamortized debt issuance costs | ( | ) | ( | ) | ||
Unamortized premium costs | ||||||
Revolving credit facility | ||||||
Partnership revolving credit facility | ||||||
Total long-term debt | $ | $ |
(1) |
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 March 31, | ||||||
2019 | 2018 | |||||
($ in millions, except per share amounts, shares in thousands) | ||||||
Net income attributable to common stock | $ | $ | ||||
Weighted average common shares outstanding | ||||||
Basic weighted average common units outstanding | ||||||
Effect of dilutive securities: | ||||||
Potential common shares issuable | ||||||
Diluted weighted average common shares outstanding | ||||||
Basic net income attributable to common stock | $ | $ | ||||
Diluted net income attributable to common stock | $ | $ |
Three Months Ended March 31, | ||||
2019 | 2018 | |||
(in thousands) | ||||
Restricted stock units |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
General and administrative expenses | $ | $ | ||||
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties |
Restricted Stock Awards & Units | Weighted Average Grant-Date Fair Value | ||||
Unvested at December 31, 2018 | $ | ||||
Granted | $ | ||||
Vested | ( | ) | $ | ||
Forfeited | ( | ) | $ | ||
Unvested at March 31, 2019 | $ |
2019 | |||
Grant-date fair value (3-year vesting) | $ | ||
Grant-date fair value (5-year vesting) | $ | ||
Risk-free rate | % | ||
Company volatility | % |
Performance Restricted Stock Units | Weighted Average Grant-Date Fair Value | ||||
Unvested at December 31, 2018 | $ | ||||
Granted | $ | ||||
Vested | ( | ) | $ | ||
Unvested at March 31, 2019(1) | $ |
(1) |
Shares | Weighted Average Exercise Price | |||||
Outstanding at December 31, 2018 | $ | |||||
Exercised | ( | ) | $ | |||
Expired | ( | ) | $ | |||
Outstanding at March 31, 2019 | $ |
Weighted Average | ||||||||||||
Exercise | Remaining | Intrinsic | ||||||||||
Options | Price | Term | Value | |||||||||
(in years) | (in millions) | |||||||||||
Outstanding at December 31, 2018 | $ | |||||||||||
Granted | $ | |||||||||||
Outstanding at March 31, 2019 | $ | $ | ||||||||||
Vested and Expected to vest at March 31, 2019 | $ | $ | ||||||||||
Exercisable at March 31, 2019 | $ | $ |
Phantom Units | Weighted Average Grant-Date Fair Value | |||||
Unvested at December 31, 2018 | $ | |||||
Granted | $ | |||||
Vested | ( | ) | $ | |||
Unvested at March 31, 2019 | $ |
2019 | 2020 | ||||||||||||
Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | ||||||||||
Oil Swaps - WTI Cushing | $ | $ | |||||||||||
Oil Swaps - WTI Magellan East Houston | $ | $ | |||||||||||
Oil Swaps - BRENT | $ | $ | |||||||||||
Oil Basis Swaps - WTI Cushing | $ | ( | ) | $ | ( | ) | |||||||
Natural Gas Swaps - Henry Hub | $ | $ | |||||||||||
Natural Gas Basis Swaps - Waha Hub | $ | ( | ) | $ | |||||||||
Natural Gas Liquid Swaps - Mont Belvieu | $ | $ |
2019 | 2020 | ||||||||||||||||||
Oil Three-Way Collars | WTI Cushing | Brent | WTI Magellan East Houston | Brent | WTI Magellan East Houston | ||||||||||||||
Volume (Bbls) | |||||||||||||||||||
Short put price (per Bbl) | $ | $ | $ | $ | $ | ||||||||||||||
Floor price (per Bbl) | $ | $ | $ | $ | $ | ||||||||||||||
Ceiling price (per Bbl) | $ | $ | $ | $ | $ |
March 31, 2019 | December 31, 2018 | |||||
(in millions) | ||||||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ | $ | ||||
Net amounts of assets presented in the Consolidated Balance Sheet | ||||||
Gross amounts of liabilities presented in the Consolidated Balance Sheet | ||||||
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ | $ |
March 31, 2019 | December 31, 2018 | |||||
(in millions) | ||||||
Current assets: derivative instruments | $ | $ | ||||
Noncurrent assets: derivative instruments | ||||||
Total assets | $ | $ | ||||
Current liabilities: derivative instruments | $ | $ | ||||
Noncurrent liabilities: derivative instruments | ||||||
Total liabilities | $ | $ |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
Change in fair value of open non-hedge derivative instruments | $ | ( | ) | $ | ||
Gain (loss) on settlement of non-hedge derivative instruments | ( | ) | ||||
Loss on derivative instruments | $ | ( | ) | $ | ( | ) |
March 31, 2019 | December 31, 2018 | ||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||
(in millions) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Investment | $ | $ | $ | $ | $ | $ | |||||||||||||
Fixed price swaps | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Fixed price swaps | $ | $ | $ | $ | $ | $ |
(in millions) | |||
Value at December 31, 2017 | $ | ||
Impact of adoption of Accounting Standards Update 2016-01 | ( | ) | |
Gain on investment | |||
Value at March 31, 2018 | $ | ||
Value at December 31, 2018 | $ | ||
Gain on investment | |||
Value at March 31, 2019 | $ |
March 31, 2019 | December 31, 2018 | |||||||||||
Carrying | Carrying | |||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||
(in millions) | ||||||||||||
Debt: | ||||||||||||
Revolving credit facility | $ | $ | $ | $ | ||||||||
4.625% Notes due 2021(1) | $ | $ | $ | $ | ||||||||
7.320% Medium-term Notes, Series A, due 2022(1) | $ | $ | $ | $ | ||||||||
4.750% Senior Notes due 2024 | $ | $ | $ | $ | ||||||||
5.375% Senior Notes due 2025 | $ | $ | $ | $ | ||||||||
7.350% Medium-term Notes, Series A, due 2027(1) | $ | $ | $ | $ | ||||||||
7.125% Medium-term Notes, Series B, due 2028(1) | $ | $ | $ | $ | ||||||||
Partnership revolving credit facility | $ | $ | $ | $ | ||||||||
DrillCo Agreement | $ | $ | $ | $ |
(1) |
Three Months Ended March 31, 2019 | |||
(in millions) | |||
Operating lease costs | $ |
As of March 31, 2019 | |||
(in millions) | |||
2019 (April - December) | $ | ||
2020 | |||
2021 | |||
2022 | |||
2023 | |||
Thereafter | |||
Total lease payments | |||
Less: interest | |||
Present value of lease liabilities | $ |
Volume (Bbls/MMBtu) | Fixed Price Swap (per Bbl/MMBtu) | ||||
July 2019 - December 2019 | |||||
Oil Swaps - WTI | $ | ||||
Oil Swaps - WTI Magellan East Houston | $ | ||||
Oil Swaps - BRENT | $ | ||||
January 2020 - December 2020 | |||||
Oil Swaps - WTI | $ | ||||
Oil Swaps - WTI Magellan East Houston | $ | ||||
Oil Swaps - BRENT | $ |
July 2019 - December 2019 | January 2020 - December 2020 | ||||||||||||||
Oil Three-Way Collars | Brent | WTI | Brent | WTI - Magellan East Houston | |||||||||||
Volume (Bbls) | |||||||||||||||
Short put price (per Bbl) | $ | $ | $ | $ | |||||||||||
Floor price (per Bbl) | $ | $ | $ | $ | |||||||||||
Ceiling price (per Bbl) | $ | $ | $ | $ |
Condensed Consolidated Balance Sheet | |||||||||||||||||||
March 31, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | $ | ( | ) | $ | $ | $ | ||||||||||||
Accounts receivable, net | |||||||||||||||||||
Accounts receivable - related party | ( | ) | |||||||||||||||||
Intercompany receivable | ( | ) | |||||||||||||||||
Inventories | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||
Prepaid expenses and other | |||||||||||||||||||
Total current assets | ( | ) | |||||||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, at cost, full cost method of accounting | ( | ) | |||||||||||||||||
Midstream assets | |||||||||||||||||||
Other property, equipment and land | |||||||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Net property and equipment | ( | ) | |||||||||||||||||
Equity method investments | |||||||||||||||||||
Investment in subsidiaries | ( | ) | |||||||||||||||||
Deferred tax asset | |||||||||||||||||||
Investment in real estate, net | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable-trade | $ | $ | $ | $ | $ | ||||||||||||||
Intercompany payable | ( | ) | |||||||||||||||||
Accrued capital expenditures | |||||||||||||||||||
Other accrued liabilities | |||||||||||||||||||
Revenues and royalties payable | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||
Total current liabilities | ( | ) | |||||||||||||||||
Long-term debt | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||
Asset retirement obligations | |||||||||||||||||||
Deferred income taxes | |||||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Total liabilities | ( | ) | |||||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders’ equity | ( | ) | |||||||||||||||||
Non-controlling interest | ( | ) | |||||||||||||||||
Total equity | ( | ) | |||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ |
Condensed Consolidated Balance Sheet | |||||||||||||||||||
December 31, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||||
Accounts receivable | |||||||||||||||||||
Accounts receivable - related party | ( | ) | |||||||||||||||||
Intercompany receivable | ( | ) | |||||||||||||||||
Inventories | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||
Prepaid expenses and other | |||||||||||||||||||
Total current assets | ( | ) | |||||||||||||||||
Property and equipment: | |||||||||||||||||||
Oil and natural gas properties, at cost, full cost method of accounting | ( | ) | |||||||||||||||||
Midstream assets | |||||||||||||||||||
Other property, equipment and land | |||||||||||||||||||
Accumulated depletion, depreciation, amortization and impairment | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Net property and equipment | ( | ) | |||||||||||||||||
Equity method investments | |||||||||||||||||||
Investment in subsidiaries | ( | ) | |||||||||||||||||
Investment in real estate, net | |||||||||||||||||||
Deferred tax asset | |||||||||||||||||||
Other assets | |||||||||||||||||||
Total assets | $ | $ | $ | $ | ( | ) | $ | ||||||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Accounts payable-trade | $ | $ | $ | $ | $ | ||||||||||||||
Intercompany payable | ( | ) | |||||||||||||||||
Accrued capital expenditures | |||||||||||||||||||
Other accrued liabilities | |||||||||||||||||||
Revenues and royalties payable | |||||||||||||||||||
Total current liabilities | ( | ) | |||||||||||||||||
Long-term debt | |||||||||||||||||||
Derivative instruments | |||||||||||||||||||
Asset retirement obligations | |||||||||||||||||||
Deferred income taxes | |||||||||||||||||||
Other long-term liabilities | |||||||||||||||||||
Total liabilities | ( | ) | |||||||||||||||||
Commitments and contingencies | |||||||||||||||||||
Stockholders’ equity | ( | ) | |||||||||||||||||
Non-controlling interest | ( | ) | |||||||||||||||||
Total equity | ( | ) | |||||||||||||||||
Total liabilities and equity | $ | $ | $ | $ | ( | ) | $ |
Condensed Consolidated Statement of Operations | |||||||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Oil sales | $ | $ | $ | $ | $ | ||||||||||||||
Natural gas sales | |||||||||||||||||||
Natural gas liquid sales | |||||||||||||||||||
Royalty income | ( | ) | |||||||||||||||||
Lease bonus | |||||||||||||||||||
Midstream services | |||||||||||||||||||
Other operating income | |||||||||||||||||||
Total revenues | |||||||||||||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | |||||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||||
Gathering and transportation | |||||||||||||||||||
Midstream services | |||||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||||
General and administrative expenses | |||||||||||||||||||
Asset retirement obligation accretion | |||||||||||||||||||
Other operating expense | |||||||||||||||||||
Total costs and expenses | |||||||||||||||||||
Income (loss) from operations | ( | ) | ( | ) | |||||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Other income (expense), net | |||||||||||||||||||
Loss on derivative instruments, net | ( | ) | ( | ) | |||||||||||||||
Gain on revaluation of investment | |||||||||||||||||||
Total other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Income (loss) before income taxes | ( | ) | ( | ) | |||||||||||||||
Provision for income taxes | ( | ) | ( | ) | |||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Net income attributable to non-controlling interest | ( | ) | |||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | ( | ) | $ | $ | $ | $ |
Condensed Consolidated Statement of Operations | |||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Revenues: | |||||||||||||||||||
Oil sales | $ | $ | $ | $ | $ | ||||||||||||||
Natural gas sales | |||||||||||||||||||
Natural gas liquid sales | |||||||||||||||||||
Royalty income | ( | ) | |||||||||||||||||
Midstream services | |||||||||||||||||||
Other operating income | |||||||||||||||||||
Total revenues | ( | ) | |||||||||||||||||
Costs and expenses: | |||||||||||||||||||
Lease operating expenses | |||||||||||||||||||
Production and ad valorem taxes | |||||||||||||||||||
Gathering and transportation | |||||||||||||||||||
Midstream services | |||||||||||||||||||
Depreciation, depletion and amortization | |||||||||||||||||||
General and administrative expenses | |||||||||||||||||||
Asset retirement obligation accretion | |||||||||||||||||||
Other operating expense | |||||||||||||||||||
Total costs and expenses | |||||||||||||||||||
Income (loss) from operations | ( | ) | ( | ) | |||||||||||||||
Other income (expense) | |||||||||||||||||||
Interest expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Other income (expense), net | |||||||||||||||||||
Loss on derivative instruments, net | ( | ) | ( | ) | |||||||||||||||
Gain on revaluation of investment | |||||||||||||||||||
Total other expense, net | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Income (loss) before income taxes | ( | ) | ( | ) | |||||||||||||||
Provision for income taxes | |||||||||||||||||||
Net income (loss) | ( | ) | ( | ) | |||||||||||||||
Net income attributable to non-controlling interest | |||||||||||||||||||
Net income (loss) attributable to Diamondback Energy, Inc. | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||
Three Months Ended March 31, 2019 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net cash provided by operating activities | $ | $ | $ | $ | $ | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Additions to oil and natural gas properties | ( | ) | ( | ) | |||||||||||||||
Additions to midstream assets | ( | ) | ( | ) | |||||||||||||||
Purchase of other property, equipment and land | ( | ) | ( | ) | |||||||||||||||
Acquisition of leasehold interests | ( | ) | ( | ) | |||||||||||||||
Acquisition of mineral interests | ( | ) | ( | ) | |||||||||||||||
Equity investments | ( | ) | ( | ) | |||||||||||||||
Net cash used in investing activities | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from borrowing under credit facility | |||||||||||||||||||
Repayment under credit facility | ( | ) | ( | ) | |||||||||||||||
Proceeds from joint venture | |||||||||||||||||||
Debt issuance costs | ( | ) | ( | ) | |||||||||||||||
Proceeds from public offerings | |||||||||||||||||||
Distributions from subsidiary | ( | ) | |||||||||||||||||
Dividends to stockholders | ( | ) | ( | ) | |||||||||||||||
Repurchased for tax withholdings | ( | ) | ( | ) | |||||||||||||||
Distributions to non-controlling interest | ( | ) | ( | ) | |||||||||||||||
Intercompany transfers | ( | ) | |||||||||||||||||
Net cash provided by financing activities | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ) | ( | ) | ( | ) | |||||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ( | ) | $ | $ | $ |
Condensed Consolidated Statement of Cash Flows | |||||||||||||||||||
Three Months Ended March 31, 2018 | |||||||||||||||||||
(in millions) | |||||||||||||||||||
Non– | |||||||||||||||||||
Guarantor | Guarantor | ||||||||||||||||||
Parent | Subsidiaries | Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net cash provided by operating activities | $ | $ | $ | $ | $ | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Additions to oil and natural gas properties | ( | ) | ( | ) | |||||||||||||||
Additions to midstream assets | ( | ) | ( | ) | |||||||||||||||
Purchase of other property, equipment and land | ( | ) | ( | ) | |||||||||||||||
Acquisition of leasehold interests | ( | ) | ( | ) | |||||||||||||||
Acquisition of mineral interests | ( | ) | ( | ) | |||||||||||||||
Funds held in escrow | |||||||||||||||||||
Intercompany transfers | ( | ) | |||||||||||||||||
Investment in real estate | ( | ) | ( | ) | |||||||||||||||
Net cash used in investing activities | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Proceeds from borrowing under credit facility | |||||||||||||||||||
Repayment under credit facility | ( | ) | ( | ) | |||||||||||||||
Proceeds from senior notes | |||||||||||||||||||
Debt issuance costs | ( | ) | ( | ) | |||||||||||||||
Distributions from subsidiary | ( | ) | |||||||||||||||||
Distributions to non-controlling interest | ( | ) | ( | ) | |||||||||||||||
Intercompany transfers | ( | ) | |||||||||||||||||
Net cash provided by financing activities | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Cash and cash equivalents at beginning of period | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | $ | $ | $ | $ |
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Oil (MBbls) | 68 | % | 74 | % |
Natural gas (MMcf) | 15 | % | 12 | % |
Natural gas liquids (MBbls) | 17 | % | 14 | % |
100 | % | 100 | % |
Drilled | Completed | ||||||||
Area | Gross | Net | Gross | Net | |||||
Midland Basin | 43 | 37 | 54 | 50 | |||||
Delaware Basin | 40 | 36 | 28 | 24 | |||||
Total | 83 | 73 | 82 | 74 |
Three Months Ended March 31, | ||
2019 | 2018 | |
Oil (Bbls)/d | 179,056 | 75,557 |
Natural gas (Mcf)/d | 240,932 | 72,728 |
Natural gas liquids (Bbls)/d | 43,421 | 14,929 |
Total average production per day (BOE) | 262,633 | 102,607 |
Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | ||||||||||||||||
Midland Basin | Delaware Basin | Other(1) | Total | Midland Basin | Delaware Basin | Other(2) | Total | ||||||||||
(in thousands) | |||||||||||||||||
Production Data: | |||||||||||||||||
Oil (MBbls) | 9,984 | 5,026 | 1,105 | 16,115 | 5,329 | 1,440 | 31 | 6,800 | |||||||||
Natural gas (MMcf) | 10,172 | 11,137 | 375 | 21,684 | 4,461 | 2,006 | 79 | 6,546 | |||||||||
Natural gas liquids (MBbls) | 2,176 | 1,671 | 61 | 3,908 | 1,094 | 236 | 14 | 1,344 | |||||||||
Total (MBoe) | 13,855 | 8,553 | 1,229 | 23,637 | 7,167 | 2,010 | 58 | 9,235 |
(1) | Includes the Central Basin Platform, the Eagle Ford Shale and the Rockies. |
(2) | Includes the Eagle Ford Shale. |
Three Months Ended March 31, | ||||
2019 | 2018 | |||
Revenues | ||||
Oil sales | 88 | % | 90 | % |
Natural gas sales | 3 | % | 3 | % |
Natural gas liquid sales | 9 | % | 7 | % |
100 | % | 100 | % |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions, except Bbl, Mcf and BOE amounts) | ||||||
Revenues: | ||||||
Oil, natural gas and natural gas liquids | $ | 842 | $ | 466 | ||
Lease bonus | 1 | — | ||||
Midstream services | 19 | 11 | ||||
Other operating income | 2 | 2 | ||||
Total revenues | 864 | 479 | ||||
Operating expenses: | ||||||
Lease operating expenses | 109 | 37 | ||||
Production and ad valorem taxes | 55 | 27 | ||||
Gathering and transportation | 12 | 4 | ||||
Midstream services | 17 | 11 | ||||
Depreciation, depletion and amortization | 322 | 115 | ||||
General and administrative expenses | 27 | 16 | ||||
Asset retirement obligation accretion | 2 | 1 | ||||
Other operating expense | 1 | 1 | ||||
Total expenses | 545 | 212 | ||||
Income from operations | 319 | 267 | ||||
Interest expense, net | (46 | ) | (14 | ) | ||
Other income, net | 1 | 3 | ||||
Loss on derivative instruments, net | (268 | ) | (32 | ) | ||
Gain on revaluation of investment | 4 | 1 | ||||
Total other expense, net | (309 | ) | (42 | ) | ||
Income before income taxes | 10 | 225 | ||||
Provision for (benefit from) income taxes | (33 | ) | 47 | |||
Net income | 43 | 178 | ||||
Net income attributable to non-controlling interest | 33 | 15 | ||||
Net income attributable to Diamondback Energy, Inc. | $ | 10 | $ | 163 |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in thousands) | ||||||
Production Data: | ||||||
Oil (MBbls) | 16,115 | 6,800 | ||||
Natural gas (MMcf) | 21,684 | 6,546 | ||||
Natural gas liquids (MBbls) | 3,908 | 1,344 | ||||
Combined volumes (MBOE) | 23,637 | 9,235 | ||||
Daily combined volumes (BOE/d) | 262,633 | 102,607 | ||||
Average Prices: | ||||||
Oil (per Bbl) | $ | 46.12 | $ | 61.64 | ||
Natural gas (per Mcf) | $ | 1.32 | $ | 2.18 | ||
Natural gas liquids (per Bbl) | $ | 18.00 | $ | 24.57 | ||
Combined (per BOE) | $ | 35.63 | $ | 50.52 | ||
Oil, hedged ($ per Bbl)(1) | $ | 46.92 | $ | 56.80 | ||
Natural gas, hedged ($ per MMbtu)(1) | $ | 1.49 | $ | 2.27 | ||
Natural gas liquids, hedged ($ per Bbl)(1) | $ | 18.19 | $ | 24.57 | ||
Average price, hedged ($ per BOE)(1) | $ | 36.38 | $ | 47.02 | ||
Average Costs per BOE: | ||||||
Lease operating expense | $ | 4.61 | $ | 4.04 | ||
Production and ad valorem taxes | 2.33 | 2.96 | ||||
Gathering and transportation expense | 0.51 | 0.42 | ||||
General and administrative - cash component | 0.55 | 0.96 | ||||
Total operating expense - cash | $ | 8.00 | $ | 8.38 | ||
General and administrative - non-cash component | $ | 0.59 | $ | 0.81 | ||
Depreciation, depletion and amortization | 13.62 | 12.48 | ||||
Interest expense, net | 1.95 | 1.48 | ||||
Total expenses | $ | 16.16 | $ | 14.77 | ||
Average realized oil price ($/Bbl) | $ | 46.12 | $ | 61.64 | ||
Average NYMEX ($/Bbl) | $ | 54.82 | $ | 62.91 | ||
Differential to NYMEX | (8.70 | ) | (1.27 | ) | ||
Average realized oil price to NYMEX | 84 | % | 98 | % | ||
Average realized natural gas price ($/Mcf) | $ | 1.32 | $ | 2.18 | ||
Average NYMEX ($/Mcf) | $ | 2.92 | $ | 3.08 | ||
Differential to NYMEX | (1.60 | ) | (0.90 | ) | ||
Average realized natural gas price to NYMEX | 45 | % | 71 | % | ||
Average realized natural gas liquids price ($/Bbl) | $ | 18.00 | $ | 24.57 | ||
Average NYMEX oil price ($/Bbl) | $ | 54.82 | $ | 62.91 | ||
Average realized natural gas liquids price to NYMEX oil price | 33 | % | 39 | % |
(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 millions) | |||||||||
Effect of changes in price: | |||||||||
Oil | $ | (15.52 | ) | 16,115 | $ | (250 | ) | ||
Natural gas | $ | (0.87 | ) | 21,684 | (19 | ) | |||
Natural gas liquids | $ | (6.57 | ) | 3,908 | (26 | ) | |||
Total revenues due to change in price | $ | (295 | ) | ||||||
Change in production volumes(1) | Prior period Average Prices | Total net dollar effect of change | |||||||
(in millions) | |||||||||
Effect of changes in production volumes: | |||||||||
Oil | 9,315 | $ | 61.64 | $ | 575 | ||||
Natural gas | 15,138 | $ | 2.18 | 33 | |||||
Natural gas liquids | 2,564 | $ | 24.57 | 63 | |||||
Total revenues due to change in production volumes | 671 | ||||||||
Total change in revenues | $ | 376 |
(1) | Production volumes are presented in MBbls for oil and natural gas liquids and MMcf for natural gas. |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions, except BOE amounts) | ||||||
Depletion of proved oil and natural gas properties | $ | 311 | $ | 109 | ||
Depreciation of midstream assets | 8 | 5 | ||||
Depreciation of other property and equipment | 3 | 1 | ||||
Depreciation, depletion and amortization expense | $ | 322 | $ | 115 | ||
Oil and natural gas properties depreciation, depletion and amortization per BOE | $ | 13.17 | $ | 11.80 |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
Net cash provided by operating activities | $ | 377 | $ | 339 | ||
Net cash used in investing activities | (937 | ) | (585 | ) | ||
Net cash provided by financing activities | 471 | 206 | ||||
Net decrease in cash | $ | (89 | ) | $ | (40 | ) |
Three Months Ended March 31, | ||||||
2019 | 2018 | |||||
(in millions) | ||||||
Drilling, completion and infrastructure | $ | (569 | ) | $ | (280 | ) |
Additions to midstream assets | (58 | ) | (38 | ) | ||
Acquisition of leasehold interests | (75 | ) | (16 | ) | ||
Acquisition of mineral interests | (82 | ) | (150 | ) | ||
Purchase of other property, equipment and land | (4 | ) | (2 | ) | ||
Investment in real estate | — | (110 | ) | |||
Funds held in escrow | — | 11 | ||||
Equity investments | (149 | ) | — | |||
Net cash used in investing activities | $ | (937 | ) | $ | (585 | ) |
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 |
• | $2.3 billion to $2.55 billion will be spent on drilling and completing 290 to 320 gross (255 to 280 net) horizontal wells across our operated leasehold acreage in the Northern Midland and Southern Delaware Basins, with an average lateral length of approximately 9,500 feet; |
• | $225 million to $250 million will be spent on midstream infrastructure excluding the cost of long-haul pipeline equity investments; and |
• | $175 million to $200 million will be spent on infrastructure and other expenditures, excluding the cost of any leasehold and mineral interest acquisitions. |
Exhibit Number | Description |
2.1# | |
3.1 | |
3.2 | |
3.3 | |
3.4 | |
4.1 | |
4.2 | |
4.3 | |
4.4 | |
4.5 | |
4.6 | |
4.7 | |
4.8 | |
4.9 | |
4.10 | |
4.11 |
Exhibit Number | Description |
4.12 | |
4.13 | |
10.1 | |
31.1* | |
31.2* | |
32.1** | |
32.2** | |
101.INS* | XBRL Instance Document. The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL 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. |
# | Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby undertakes to furnish supplementally copies of any of the omitted schedules upon request by the SEC. |
DIAMONDBACK ENERGY, INC. | ||
Date: | May 9, 2019 | /s/ Travis D. Stice |
Travis D. Stice | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: | May 9, 2019 | /s/ Kaes Van’t Hof |
Kaes Van’t Hof | ||
Chief Financial Officer | ||
(Principal Financial 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: | May 9, 2019 | /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: | May 9, 2019 | /s/ Kaes Van't Hof | |
Kaes Van't Hof | |||
Chief Financial Officer |
Date: | May 9, 2019 | /s/ Travis D. Stice | |
Travis D. Stice | |||
Chief Executive Officer |
Date: | May 9, 2019 | /s/ Kaes Van't Hof | |
Kaes Van't Hof | |||
Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2019 |
May 03, 2019 |
|
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
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 Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 164,672,205 |
Consolidated Balance Sheets Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Oil and natural gas properties, amortization excluded | $ 9,646 | $ 9,670 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized | 200,000,000 | 200,000,000 |
Shares Issued | 164,615,642 | 164,273,447 |
Shares Outstanding | 164,615,642 | 164,273,447 |
Description of the Business and Basis of Presentation |
3 Months Ended |
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Mar. 31, 2019 | |
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 March 31, 2019, 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 GP LLC, a Delaware limited liability company, and Energen Corporation, an Alabama corporation. The consolidated subsidiaries include these wholly-owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (the “Partnership”), the Partnership’s wholly-owned subsidiary Viper Energy Partners LLC, a Delaware limited liability company (the “Operating Company”), Rattler Midstream LP (formerly known as Rattler Midstream Partners LP), a Delaware limited liability company, Rattler Midstream Operating LLC (formerly known as Rattler Midstream LLC), a Delaware limited liability company, and Rattler Midstream Operating LLC’s wholly-owned subsidiary Tall City Towers LLC, a Delaware limited liability company (“Tall City”). 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 March 31, 2019, the Company owned approximately 54% 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. |
Summary of Significant Accounting Policies |
3 Months Ended |
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Mar. 31, 2019 | |
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 Equity investments in which the Company exercises significant influence but does not control are accounted for using the equity method. Under the equity method, generally the Company’s share of investees’ earnings or loss is recognized in the statement of operations. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision. 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 was accounted for under the cost method. Effective January 1, 2018, the Partnership adopted Accounting Standards Update 2016-01 which requires the Partnership to measure its investment at fair value which resulted in a downward adjustment of $19 million to record the impact of this adoption. See Note 16—Fair Value Measurements. New Accounting Pronouncements Recently Adopted Pronouncements 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. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles and compressors. The Company has completed the process of reviewing and determining the agreements to which this new guidance applies. Upon adoption effective January 1, 2019, the Company recognized approximately $13 million of right-of-use assets, of which the total amount relates to the Company’s operating leases. 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 adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-10, “Codification Improvements to Topic 842, Leases”. This update provides clarification and corrects unintended application of certain sections in the new lease guidance. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-11, “Lease (Topic 842): Targeted Improvements”. This update provides another transition method of allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In December 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors”. This update provides a practical expedient for lessors to elect not to evaluate whether sales taxes and other similar taxes are lessor costs. The update also requires a lessor to exclude from variable payments those costs paid directly by the lessee to third parties and include lessor costs paid by the lessor and reimbursed by the lessee. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. See Note 17—Leases for more information on the adoption of these standards. 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. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity because the Company currently accounts for nonemployee share-based transactions in the same manner as employee share-based transactions. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-09, “Codification Improvements”. This update provides clarification and corrects unintended application of the guidance in various sections. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted 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 its consolidated financial statements since it does not have a history of credit losses. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. 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 prospectively. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. 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 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. |
Revenue from Contracts with Customers |
3 Months Ended |
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Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 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 Operating 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 upstream 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 obligations under any of our product sales contracts. The majority of the Company’s midstream revenue agreements have a term greater than one year, and as such the Company has utilized the practical expedient in ASC 606, which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Company’s midstream revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Company has utilized an additional practical expedient in ASC 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. 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 |
Acquisitions |
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Mergers, Acquisitions and Dispositions Disclosures | ACQUISITIONS Tall City Towers LLC On January 31, 2018, Tall City, 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 $110 million. Energen Corporation Merger On November 29, 2018, the Company completed its acquisition of Energen Corporation (“Energen”) in an all-stock transaction (the “Merger”), which was accounted for as a business combination. Upon completion of this acquisition, the addition of Energen’s assets increased the Company’s assets to: (i) over 273,000 net Tier One acres in the Permian Basin, (ii) approximately 7,200 estimated total net horizontal Permian locations, and (iii) approximately 394,000 net acres across the Midland and Delaware Basins. Under the terms of the Merger, each share of Energen common stock was converted into 0.6442 of a share of the Company’s common stock. The Company issued approximately 62.8 million shares of its common stock valued at a price of $112.00 per share on the closing date, resulting in total consideration paid by the Company to the former Energen shareholders of approximately $7 billion. In connection with the closing of the Merger, the Company repaid outstanding principal under Energen’s revolving credit facility and assumed all of Energen’s other long-term debt. See Note 10—Debt for additional information. Purchase Price Allocation The Merger has been accounted for as a business combination, using the acquisition method. The following table represents the preliminary allocation of the total purchase price of Energen to the identifiable assets acquired and the liabilities assumed based on the fair values on the acquisition date, with any excess of the purchase price over the estimated fair value of the identifiable net assets acquired. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, valuation of pre-acquisition contingencies, final tax returns that provide the underlying tax basis of Energen’s assets and liabilities and final appraisals of assets acquired and liabilities assumed. The Company expects to complete the purchase price allocation during the 12-month period following the acquisition date, during which time the value of the assets and liabilities may be revised as appropriate. The following table sets forth the Company’s preliminary purchase price allocation as of March 31, 2019:
Pro Forma Financial Information The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three months ended March 31, 2018 have been prepared to give effect to the Merger as if it had occurred on January 1, 2018. The below information reflects pro forma adjustments for the issuance of the Company’s common stock in exchange for Energen’s outstanding shares of common stock, as well as pro forma adjustments based on available information and certain assumptions that the Company believes are reasonable, including (i) the Company’s common stock issued to convert Energen’s outstanding shares of common stock and equity awards as of the closing date of the Merger, (ii) the depletion of Energen’s fair-valued proved oil and natural gas properties and (iii) the estimated tax impacts of the pro forma adjustments. The pro forma results of operations do not include any cost savings or other synergies that may result from the Merger or any estimated costs that have been or will be incurred by the Company to integrate the Energen assets. The pro forma financial data does not include the results of operations for any other acquisitions made during the periods presented, as they were primarily acreage acquisitions and their results were not deemed material. The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results.
|
Viper Energy Partners LP |
3 Months Ended |
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Mar. 31, 2019 | |
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 Select 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 March 31, 2019, the Company owned approximately 54% of the Partnership’s total units outstanding. Equity Offerings On March 1, 2019, the Partnership completed an underwritten public offering of 10,925,000 common units, which included 1,425,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, the Company owned approximately 54% of the total Partnership units then outstanding. The Partnership received net proceeds from this offering of approximately $341 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 outstanding borrowings under the revolving credit facility and finance acquisitions during the period. As a result of this public offering and the Partnership’s issuance of unit-based compensation, the Company’s ownership percentage in the Partnership was reduced. During the three months ended March 31, 2019, the Company recorded a $74 million decrease to non-controlling interest in the Partnership with an increase to additional paid-in capital, which represents the difference between the Company’s share of the underlying net book value in the Partnership before and after the respective Partnership common unit transactions, on the Company’s consolidated balance sheet. 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. Upon completion of the Partnership’s July 2018 offering of units, it owned approximately 41% of the outstanding units issued by the Operating Company and the Company owned the remaining approximately 59%. 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 million to the Partnership in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1 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 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 each of the three months ended March 31, 2019 and 2018, the General Partner allocated $1 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 ended March 31, 2019, the Partnership accrued a minimal amount of state income tax expense 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 |
Real Estate Assets |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate Disclosure | REAL ESTATE ASSETS The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Company’s real estate assets including intangible lease assets:
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Property and Equipment |
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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 $13 million and $7 million for the three months ended March 31, 2019 and 2018, 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 years 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 the full cost 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 revenue including estimated expenditures (based on current costs) to be incurred in developing and producing the proved reserves, 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. |
Asset Retirement Obligations |
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Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:
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Equity Method Investments |
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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. As a result of the amendment, the Company no longer recognizes an equity investment in HMW LLC but instead consolidates its undivided interest in the salt water disposal assets owned by HMW LLC. In exchange for the Company’s 25% investment, the Company received a 50% undivided ownership interest in two of the four SWD 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. For the three months ended March 31, 2019 and the year ended December 31, 2018, the Company did not invest in HMW LLC. For the three months ended March 31, 2019, the Company did not record any income from HMW LLC. For the three months ended March 31, 2018, the Company recorded, in other income, $2 million in income from HMW LLC. On February 1, 2019, the Company obtained a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which is building a pipeline (the “EPIC project”) that, once operational, will transport crude and NGL across Texas for delivery into the Corpus Christi market. As of March 31, 2019, the Company has invested $35 million in the EPIC project and recorded no income. The EPIC project is anticipated to be operational in the second half of 2019. On February 15, 2019, the Company obtained a 10% equity interest in Gray Oak Pipeline, LLC (“Gray Oak”), which is building a pipeline (the “Gray Oak project”) that, once operational, will transport crude from the Permian to Corpus Christi on the Texas Gulf Coast. As of March 31, 2019, the Company has invested $115 million in the Gray Oak project and recorded, in other income, $50,000 in income related to interest. The Gray Oak project is anticipated to be operational in the second half of 2019. On March 29, 2019, the Company executed a short-term promissory note to Gray Oak. The note allows for borrowing by Gray Oak of up to $123 million at 2.52% interest rate with a maturity date of March 31, 2022. There were no borrowings by Gray Oak under the note in the first quarter of 2019. |
Debt |
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Debt | DEBT Long-term debt consisted of the following as of the dates indicated:
Diamondback Notes 2024 Senior Notes On October 28, 2016, the Company issued $500 million in aggregate principal amount of 4.750% Senior Notes due 2024 (the “existing 2024 Senior Notes”). The existing 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 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 existing 2024 Senior Notes; provided, however, that the existing 2024 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream Operating LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. On September 25, 2018, the Company issued $750 million aggregate principal amount of new 4.750% Senior Notes due 2024 (the “New 2024 Notes”), which together with the existing Senior Notes are referred to as the 2024 Senior Notes, as additional notes under, and subject to the terms of, the 2024 Indenture. The New 2024 Notes were issued in a transaction exempt from the registration requirements under the Securities Act. The Company received approximately $741 million in net proceeds, after deducting the initial purchasers’ discount and its estimated offering expenses, but disregarding accrued interest, from the issuance of the New 2024 Notes. The Company used a portion of the net proceeds from the issuance of the New 2024 Notes to repay the outstanding borrowings under its revolving credit facility and used the balance for general corporate purposes, including funding a portion of the cash consideration for the acquisition of assets from Ajax Resources, LLC. 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. As required under the terms of the registration rights agreement relating to the New 2024 Notes, on March 22, 2019, the Company filed with the SEC its registration Statement on Form S-4 relating to the exchange offer of the New 2024 Notes for substantially identical notes registered under the Securities Act of 1933, as amended. 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 “existing 2025 Senior Notes”). The existing 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 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 existing 2025 Senior Notes, provided, however, that the existing 2025 Senior Notes are not guaranteed by the Partnership, the General Partner, Viper Energy Partners LLC or Rattler Midstream Operating LLC, and will not be guaranteed by any of the Company’s future unrestricted subsidiaries. On January 29, 2018, the Company issued $300 million aggregate principal amount of new 5.375% Senior Notes due 2025 (the “New 2025 Notes”), which together with the existing 2025 Senior Notes are referred to as the 2025 Senior 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 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 Senior Notes were issued under an indenture, dated as of December 20, 2016, among the Company, the guarantors party thereto and Wells Fargo Bank, as the trustee (the “2025 Indenture”). 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 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 2025 Senior 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 at a price equal to 100% of the principal amount of the 2025 Senior 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 in an aggregate principal amount not to exceed 35% of the aggregate principal amount of the 2025 Senior 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. Energen Notes At the effective time of the Merger, Energen became the Company’s wholly owned subsidiary and remained the issuer of $530 million aggregate principal amount of the Energen Notes, issued under an indenture dated September 1, 1996 with The Bank of New York as Trustee (the “Energen Indenture”). The Energen Notes consist of: (1) $400 million aggregate principal amount of 4.625% senior notes due on September 1, 2021, (2) $100 million of 7.125% notes due on February 15, 2028, (3) $20 million of 7.32% notes due on July 28, 2022, and (4) $10 million of 7.35% notes due on July 28, 2027. The Energen Notes are the senior unsecured obligations of Energen and, post-merger, Energen, as a wholly owned subsidiary of the Company, continues to be the sole issuer and obligor under the Energen Notes. The Energen Notes rank equally in right of payment with all other senior unsecured indebtedness of Energen, including any unsecured guaranties by Energen of the Company’s indebtedness and are effectively subordinated to Energen’s senior secured indebtedness, including Energen’s secured guaranty of all borrowings and other obligations under the Company’s revolving credit facility, to the extent of the value of the collateral securing such indebtedness. The Energen Indenture contains certain covenants that, subject to certain exceptions and qualifications, limit Energen’s ability to incur or suffer to exist liens, to enter into sale and leaseback transactions, to consolidate with or merge into any other entity, and to convey, transfer or lease its properties and assets substantially as an entirety to any person or entity. The Energen Indenture does not include a restriction on the payment of dividends. On November 29, 2018, Energen guaranteed the Company’s indebtedness under its credit facility and granted a lien on certain of its assets to secure such indebtedness and, on December 21, 2018, Energen’s subsidiaries guaranteed the Company’s indebtedness under its credit agreement and granted liens on certain of their assets to secure such indebtedness. As a result of such guarantees, under the terms of the 2024 Indenture and the 2025 Indenture, Energen also guaranteed the 2024 Senior Notes and the 2025 Senior Notes. 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, 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 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 each may request up to two interim redeterminations of the borrowing base during any 12-month period. Effective March 25, 2019, the Company increased its elected commitment amount from $2 billion to $3 billion. As of March 31, 2019, the borrowing base was set at $3 billion, the Company had elected a commitment amount of $3 billion and the Company had $2 billion of outstanding borrowings under the revolving credit facility and $1 billion available for future borrowings under its revolving credit facility. Diamondback O&G LLC is the borrower under the credit agreement. As of March 31, 2019, the credit agreement is guaranteed by the Company, Diamondback E&P LLC, Rattler Midstream Operating LLC (formerly known as Rattler Midstream LLC) and Energen and its subsidiaries 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 March 31, 2019 and December 31, 2018, 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 billion and a borrowing base based on the Partnership’s oil and natural gas reserves and other factors (the “borrowing base”) of $555 million, subject to scheduled semi-annual and other elective 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 March 31, 2019, the borrowing base was set at $555 million, and the Partnership had $157 million of outstanding borrowings and $398 million available for future borrowings under its 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 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. As of March 31, 2019 and December 31, 2018, the Partnership 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 Partnership’s 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. Alliance with Obsidian Resources, L.L.C. The Company entered into a participation and development agreement (the “DrillCo Agreement”), dated September 10, 2018, with Obsidian Resources, L.L.C. (“CEMOF”) to fund oil and natural gas development. Funds managed by CEMOF and its affiliates have agreed to commit to funding certain costs out of CEMOF’s net production revenue and, for a period of time, to the extent not funded by such revenue, up to an additional $300 million, to fund drilling programs on locations provided by the Company. Subject to adjustments depending on asset characteristics and return expectations of the selected drilling plan, CEMOF will fund up to 85% of the costs associated with new wells drilled under the DrillCo Agreement and is expected to receive an 80% working interest in these wells until it reaches certain payout thresholds equal to a cumulative 9% and then 13% internal rate of return. Upon reaching the final internal rate of return target, CEMOF’s interest will be reduced to 15%, while the Company’s interest will increase to 85%. As of March 31, 2019, CEMOF had funded approximately $18 million. As of March 31, 2019, six joint wells have been drilled and completed.
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Capital Stock and Earnings Per Share |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock and Earnings Per Share | CAPITAL STOCK AND EARNINGS PER SHARE Diamondback did not complete any equity offerings during the three months ended March 31, 2019 and March 31, 2018. Partnership Equity Offerings On March 1, 2019, the Partnership completed an underwritten public offering of 10,925,000 common units, which included 1,425,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, the Company owned approximately 54% of the Partnership’s total units then outstanding. The Partnership received net proceeds from this offering of approximately $341 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 outstanding borrowings under its revolving credit facility and finance acquisitions during the period. 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:
The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods:
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Equity-Based Compensation |
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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 three months ended March 31, 2019:
The aggregate fair value of restricted stock units that vested during the three months ended March 31, 2019 and 2018 was $13 million and $9 million, respectively. As of March 31, 2019, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $55 million. Such cost is expected to be recognized over a weighted-average period of 1.3 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 three-year performance period. In March 2019, eligible employees received performance restricted stock unit awards totaling 199,723 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, 2019 to December 31, 2021 and cliff vest at December 31, 2021. In March 2019, eligible employees received performance restricted stock unit awards totaling 32,958 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, 2019 to December 31, 2021 and vest in five equal installments beginning on March 1, 2025. 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 March 2019 awards.
The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the three months ended March 31, 2019:
As of March 31, 2019, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $47 million. Such cost is expected to be recognized over a weighted-average period of 1.4 years. Stock Appreciation Rights In connection with the Energen merger, each outstanding stock appreciation right in respect of Energen common stock that was outstanding immediately prior to the effective time of the Merger was converted into a fully vested stock appreciation right in respect of such number of whole shares of Diamondback common stock (rounded down to the nearest whole share) equal to the product of (A) the total number of shares of Energen common stock subject to such stock appreciation right immediately prior to the effective time of the Merger multiplied by (B) the exchange ratio, at an exercise price per share of Diamondback common stock (rounded up to the nearest whole cent) equal to the quotient of (A) the exercise price per share of Energen common stock of such stock appreciation right immediately prior to the effective time of the Merger divided by (B) the exchange ratio. These awards have a three-year requisite service period. The following table presents a summary of stock appreciation rights activity during the three months ended March 31, 2019:
Stock Options In connection with the Energen Merger, each option to purchase shares of Energen common stock that was outstanding immediately prior to the effective time of the Merger was converted into a fully vested option to purchase such number of whole shares of Diamondback common stock (rounded down to the nearest whole share) equal to the product of (A) the total number of shares of Energen common stock subject to such option immediately prior to the effective time of the Merger multiplied by (B) the exchange ratio, at an exercise price per share of Diamondback common stock (rounded up to the nearest whole cent) equal to the quotient of (A) the exercise price per share of Energen common stock of such option immediately prior to the effective time of the Merger divided by (B) the exchange ratio. The exercise price of stock options granted may not be less than the market value of the stock at the date of grant. The Company estimates the fair values of stock options granted using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the contractual term of the awards at effective time of the merger. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant. All such amounts represent the weighted-average amounts for each year.
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 three months ended March 31, 2019.
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2019 | |
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 $500,000, plus reasonable out-of-pocket expenses. For the three months ended March 31, 2019 and 2018, the Partnership did not pay any amounts under the Advisory Services Agreement. The Advisory Services Agreement was terminated on November 12, 2018; however, the Partnership’s payment obligation thereunder continues through the end of the current term in June 2019. Lease Bonus - The Partnership During the three months ended March 31, 2019, the Company paid the Partnership $198 in lease bonus payments to extend the term of one lease, reflecting an average bonus of $125 per acre and $3,101 in lease bonus payments for two new leases, reflecting an average bonus of $14,766 per acre. During the three months ended March 31, 2018, the Company did not pay the Partnership any lease bonus payments.
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Income Taxes |
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Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | INCOME TAXES The Company’s effective income tax rates were (301.7)% and 20.9% for the three months ended March 31, 2019 and 2018, respectively. Total income tax expense for the three months ended March 31, 2019 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to (i) the revision of estimated deferred taxes recognized by the Partnership as a result of its change in tax status, (ii) current and deferred state income taxes, and (iii) the impact of permanent differences between book and taxable income. The Company recorded a discrete income tax benefit of less than $1 million related to equity-based compensation for the three months ended March 31, 2019 and a discrete benefit of approximately $35 million related to the revision of estimated deferred taxes on the Partnership’s investment in the Operating Company arising from the change in the Partnership’s tax status. The Partnership revised its estimate of deferred taxes on the Partnership’s investment in the Operating Company based on information regarding unitholders’ tax basis which, under IRS reporting rules, was not available until the current period. Total income tax expense for the three months ended March 31, 2018 differed from amounts computed by applying the federal statutory rate to pre-tax income primarily due to state income taxes, net income attributable to the noncontrolling interest, and the impact of permanent differences between book and taxable income. |
Derivatives |
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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 Magellan East Houston oil price and the WTI Cushing price and for the spread between the Henry Hub natural gas price and the Waha Hub natural gas 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 ICE Brent pricing, and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing and liquids derivative settlements based on Mt. Belvieu pricing. By using derivative instruments to economically 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 March 31, 2019, 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 March 31, 2019 and December 31, 2018.
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:
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Fair Value Measurements |
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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. The Company estimates the fair values of proved oil and natural gas properties assumed in business combinations using discounted cash flow techniques and based on market assumptions as to the future commodity prices, internal estimates of future quantities of oil and natural gas reserves, future estimated rates of production, expected recovery rates and risk-adjustment discounts. The estimated fair values of unevaluated oil and natural gas properties were based on the location, engineering and geological studies, historical well performance, and applicable mineral lease terms. Given the unobservable nature of the inputs, the estimated fair values of oil and natural gas properties assumed is deemed to use Level 3 inputs. The asset retirement obligations assumed as part of business combinations are estimated using the same assumptions and methodology as described below. The Company estimates asset retirement obligations pursuant to the provisions of the Financial Accounting Standards Board issued Accounting Standards Codification Topic 410, “Asset Retirement and Environmental Obligations”. The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with the future plugging and abandonment of wells and related facilities. Given the unobservable nature of the inputs, including plugging costs and useful lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs. See Note 8—Asset Retirement Obligations for further discussion of the Company’s asset retirement obligations. 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 the Partnership’s cost method investment. The fair value of the Partnership’s investment is determined using quoted market prices. These valuations are Level 1 inputs. 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 March 31, 2019 and December 31, 2018.
The following table summarizes the changes in fair value of the Partnership’s cost method investment during the periods presented:
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:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee, Operating Leases [Text Block] | LEASES The Company leases certain drilling rigs, facilities, compression and other equipment. As discussed in Note 2—Summary of Significant Accounting Policies, the Company adopted ASU 2016-02, ASU 2018-11 and ASU 2019-01 on January 1, 2019 using the optional transition method of adoption. The Company elected a package of practical expedients that together allows an entity to not reassess (i) whether a contract is or contains a lease, (ii) lease classification and (iii) initial direct costs. In addition, the Company elected the following practical expedients: (i) to not reassess certain land easements; (ii) to not apply the recognition requirements under the standard to short-term leases; (iii) to not reassess lease terms for lease terms on leases entered into prior to the effective date of adoption; and (iv) lessor accounting policy election to exclude lessor costs paid directly by the lessee. For leases where the Company is the lessee, the Company recorded a total of $13 million in right-of-use assets and corresponding new lease liabilities in other on its Condensed Consolidated Balance Sheet representing the present value of its future operating lease payments. Adoption of the standards did not require an adjustment to the opening balance of retained earnings. The discount rate used to determine present value was based on the rate of interest that the Company estimated it would have to pay to borrow (on a collateralized-basis over a similar term) an amount equal to the lease payments in a similar economic environment as of January 1, 2019. The Company is required to reassess the discount rate for any new and modified lease contracts as of the lease effective date. The right-of-use assets and lease liabilities recognized upon adoption of ASU 2016-02 were based on the lease classifications, lease commitment amounts and terms recognized under the prior lease accounting guidance. Leases with an initial term of twelve months or less are considered short-term leases and are not recorded on the balance sheet. The following table summarizes operating lease costs for the three months ended March 31, 2019:
For the three months ended March 31, 2019, cash paid for operating lease liabilities, and reported in cash flows provided by operating activities on the Company's Statement of Condensed Consolidated Cash Flows, was $5 million. During the three months ended March 31, 2019, the Company recorded an additional $8 million of right-of-use assets in exchange for new lease liabilities. The operating lease right-of-use assets were reported in other assets and the current and noncurrent portions of the operating lease liabilities were reported in other current liabilities and other liabilities, respectively, on the Condensed Consolidated Balance Sheet. As of March 31, 2019, the operating right-of-use assets were $26 million and operating lease liabilities were $26 million, of which $21 million was classified as current. As of March 31, 2019, the weighted average remaining lease term was 1.4 years and the weighted average discount rate was 8.4%. Schedule of Operating Lease Liability Maturities. The following table summarizes undiscounted cash flows owed by the Company to lessors pursuant to contractual agreements in effect as of March 31, 2019:
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
Subsequent Events |
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Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Events | SUBSEQUENT EVENTS First Quarter 2019 Dividend Declaration On May 3, 2019, the Board of Directors of the Company declared a cash dividend for the first quarter of 2019 of $0.1875 per share of common stock, payable on June 4, 2019 to its stockholders of record at the close of business on May 28, 2019. Commodity Contracts Subsequent to March 31, 2019, the Company entered into new fixed price basis swaps. 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 March 31, 2019. When aggregating multiple contracts, the weighted average contract price is disclosed.
Gray Oak Promissory Note As of May 2, 2019, borrowings due the Company totaled $23 million. The note is expected to be repaid in full before the end of the second quarter 2019 when Gray Oak expects to secure bank financing for construction. Stock Repurchase Program In May 2019, the Company’s board of directors approved a stock repurchase program to acquire up to $2 billion of the Company’s outstanding common stock through December 31, 2020. This repurchase program is another component of the Company’s capital return program that includes the increased quarterly dividend. Purchases under the repurchase program may be made from time to time in open market or privately negotiated transactions, and are subject to market conditions, applicable legal requirements, contractual obligations and other factors. The repurchase program does not require the Company to acquire any specific number of shares. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors at any time. Pending Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Financial Statements | GUARANTOR FINANCIAL STATEMENTS
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Summary of Significant Accounting Policies (Policies) |
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Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Use of Estimates | 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.
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New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Pronouncements 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. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company enters into lease agreements to support its operations. These agreements are for leases on assets such as office space, vehicles and compressors. The Company has completed the process of reviewing and determining the agreements to which this new guidance applies. Upon adoption effective January 1, 2019, the Company recognized approximately $13 million of right-of-use assets, of which the total amount relates to the Company’s operating leases. 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 adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-10, “Codification Improvements to Topic 842, Leases”. This update provides clarification and corrects unintended application of certain sections in the new lease guidance. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-11, “Lease (Topic 842): Targeted Improvements”. This update provides another transition method of allowing entities to initially apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. In December 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors”. This update provides a practical expedient for lessors to elect not to evaluate whether sales taxes and other similar taxes are lessor costs. The update also requires a lessor to exclude from variable payments those costs paid directly by the lessee to third parties and include lessor costs paid by the lessor and reimbursed by the lessee. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. See Note 17—Leases for more information on the adoption of these standards. 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. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have an impact on its financial position, results of operations or liquidity because the Company currently accounts for nonemployee share-based transactions in the same manner as employee share-based transactions. In July 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-09, “Codification Improvements”. This update provides clarification and corrects unintended application of the guidance in various sections. The Company adopted this standard effective January 1, 2019. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted 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 its consolidated financial statements since it does not have a history of credit losses. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement”. This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. 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 prospectively. The Company is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact on its financial position, results of operations or liquidity. In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract”. This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. 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 should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. |
Equity Method Investments | Equity investments in which the Company exercises significant influence but does not control are accounted for using the equity method. Under the equity method, generally the Company’s share of investees’ earnings or loss is recognized in the statement of operations. The Company reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such loss has occurred, the Company would recognize an impairment provision. |
Revenue Recognition | 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 Operating 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 upstream 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 obligations under any of our product sales contracts. The majority of the Company’s midstream revenue agreements have a term greater than one year, and as such the Company has utilized the practical expedient in ASC 606, which states that the Company is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Company’s midstream revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Company has utilized an additional practical expedient in ASC 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. 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 |
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. |
Acquisitions (Tables) |
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Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table sets forth the Company’s preliminary purchase price allocation as of March 31, 2019:
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Business Acquisition, Pro Forma Information | The pro forma consolidated statement of operations data has been included for comparative purposes only and is not necessarily indicative of the results that might have occurred had the Merger taken place on January 1, 2018 and is not intended to be a projection of future results.
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Real Estate Assets (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate Assets | The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Company’s real estate assets including intangible lease assets:
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and equipment includes the following:
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Asset Retirement Obligations (Tables) |
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Asset Retirement Obligations | The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:
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Debt (Tables) |
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Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated:
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Financial Covenants |
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Financial Covenants |
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Capital Stock and Earnings Per Share (Tables) |
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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:
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Schedule of antidilutive securities excluded from computation of earnings per share | The Company had the following shares that were excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per share in future periods:
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Equity-Based Compensation (Tables) |
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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:
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Summary of restricted stock units | The following table presents the Company’s restricted stock units activity under the Equity Plan during the three months ended March 31, 2019:
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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 March 2019 awards.
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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 three months ended March 31, 2019:
(1) A maximum of 857,768 units could be awarded based upon the Company’s final TSR ranking.
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Schedule of share-based compensation, stock appreciation rights award activity | The following table presents a summary of stock appreciation rights activity during the three months ended March 31, 2019:
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Schedule of stock options activity | The Company estimates the fair values of stock options granted using a Black-Scholes option valuation model, which requires the Company to make several assumptions. The expected term of options granted was determined based on the contractual term of the awards at effective time of the merger. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the option at the date of grant. All such amounts represent the weighted-average amounts for each year.
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Viper Energy Partners LP Long Term Incentive Plan [Member] | Phantom Share Units (PSUs) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Phantom units activity | The following table presents the phantom unit activity under the Viper LTIP for the three months ended March 31, 2019.
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Derivatives (Tables) |
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Schedule of derivative instruments | As of March 31, 2019, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
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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 March 31, 2019 and December 31, 2018.
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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:
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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) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 March 31, 2019 and December 31, 2018.
The following table summarizes the changes in fair value of the Partnership’s cost method investment during the periods presented:
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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:
|
Leases (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The following table summarizes operating lease costs for the three months ended March 31, 2019:
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Lessee, Operating Lease, Liability, Maturity | Schedule of Operating Lease Liability Maturities. The following table summarizes undiscounted cash flows owed by the Company to lessors pursuant to contractual agreements in effect as of March 31, 2019:
|
Subsequent Events (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of derivative instruments | As of March 31, 2019, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.
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Guarantor Financial Statements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Balance Sheet |
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Condensed Consolidated Statement of Operations |
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Condensed Consolidated Statement of Cash Flows |
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Description of the Business and Basis of Presentation (Details) |
Mar. 31, 2019 |
---|---|
Viper Energy Partners LP [Member] | |
Noncontrolling Interest [Line Items] | |
Interest in Viper Energy Partners LP (percentage) | 54.00% |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
---|---|---|---|
Investment [Line Items] | |||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 16.0 | ||
Operating Lease, Right-of-Use Asset | $ 26.0 | $ 13.0 | |
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Investment [Line Items] | |||
Cumulative effect due to the impact of adoption of ASU 2016.01 | $ 19.0 |
Asset Retirement Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Changes in ARO liability | |||
Asset retirement obligations, beginning of period | $ 136 | $ 21 | |
Additional liabilities incurred | 1 | 1 | |
Liabilities acquired | 3 | 0 | |
Liabilities settled | (2) | (1) | |
Asset retirement obligation accretion | 2 | 1 | |
Asset retirement obligations, end of period | 140 | 22 | |
Less current portion | 0 | 1 | |
Asset retirement obligations - long-term | $ 140 | $ 21 | $ 136 |
Debt - Senior Notes (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 18, 2018 |
Jan. 29, 2018 |
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 20, 2016 |
Oct. 28, 2016 |
|
Debt Instrument [Line Items] | |||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 0 | $ 312 | |||||||
Senior Unsecured Notes due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Long-term Debt, Gross | $ 1,250 | $ 1,250 | |||||||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 103.563% | ||||||||
Debt Instrument, Redemption Period, Start Date | Nov. 01, 2019 | ||||||||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2020 | ||||||||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 102.375% | ||||||||
Debt Instrument, Redemption Period, Start Date | Nov. 01, 2020 | ||||||||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2021 | ||||||||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.188% | ||||||||
Debt Instrument, Redemption Period, Start Date | Nov. 01, 2021 | ||||||||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2022 | ||||||||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument, Redemption Period, Start Date | Nov. 01, 2022 | ||||||||
Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 104.75% | ||||||||
Debt Instrument, Redemption Period, Start Date | Oct. 28, 2016 | ||||||||
Debt Instrument, Redemption Period, End Date | Oct. 31, 2019 | ||||||||
Senior Unsecured Additional Notes due 2024 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 750 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 741 | ||||||||
Senior Unsecured Notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 500 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | ||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Long-term Debt, Gross | $ 800 | $ 800 | |||||||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period One [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 104.031% | ||||||||
Debt Instrument, Redemption Period, Start Date | May 31, 2020 | ||||||||
Debt Instrument, Redemption Period, End Date | May 30, 2021 | ||||||||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Two [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 102.688% | ||||||||
Debt Instrument, Redemption Period, Start Date | May 31, 2021 | ||||||||
Debt Instrument, Redemption Period, End Date | May 30, 2022 | ||||||||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Three [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 101.344% | ||||||||
Debt Instrument, Redemption Period, Start Date | May 31, 2022 | ||||||||
Debt Instrument, Redemption Period, End Date | May 30, 2023 | ||||||||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Four [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||
Debt Instrument, Redemption Period, Start Date | May 31, 2023 | ||||||||
Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Five [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument, Redemption Price, Percentage | 105.375% | ||||||||
Debt Instrument, Redemption Period, Start Date | Dec. 20, 2016 | ||||||||
Debt Instrument, Redemption Period, End Date | May 30, 2020 | ||||||||
Senior Unsecured Additional Notes due 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 300 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | ||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 308 | ||||||||
Maximum [Member] | Senior Unsecured Notes due 2024 [Member] | Debt Instrument, Redemption, Period Five [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Percentage Eligible for Redemption | 35.00% | ||||||||
Maximum [Member] | Senior Unsecured Notes due 2025 [Member] | Debt Instrument, Redemption, Period Five [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Percentage Eligible for Redemption | 35.00% |
Debt Energen Notes (Details) - Energen [Member] $ in Millions |
Nov. 29, 2018
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 530 |
Senior Subordinated Notes [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 400 |
Debt Instrument, Interest Rate, Stated Percentage | 4.625% |
Medium-term Notes, Series B [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 100 |
Debt Instrument, Interest Rate, Stated Percentage | 7.125% |
Medium-term Notes, Series A, Due July 28, 2022 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 20 |
Debt Instrument, Interest Rate, Stated Percentage | 7.32% |
Medium-term Notes, Series A, Due July 28, 2027 [Member] | |
Debt Instrument [Line Items] | |
Long-term Debt, Gross | $ 10 |
Debt Instrument, Interest Rate, Stated Percentage | 7.35% |
Debt - Credit Facility - Wells Fargo Bank (Details) - Company Credit Facility [Member] $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019
USD ($)
redetermindation
|
Mar. 25, 2019
USD ($)
|
Dec. 31, 2018
USD ($)
|
|
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 5,000 | ||
Number of interim redeterminations that may be requested | redetermindation | 2 | ||
Period of redeterminations (in months) | 12 months | ||
Current borrowing base | $ 3,000 | ||
Line of Credit Facility, Elected Borrowing Base | 3,000 | $ 2,000 | |
Long-term Debt, Gross | 1,914 | $ 1,490 | |
Remaining Borrowing Capacity | $ 1,000 | ||
Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | ||
Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | ||
Federal Funds Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 0.50% | ||
LIBOR [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.00% | ||
LIBOR [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.25% | ||
LIBOR [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 2.25% | ||
Base Rate [Member] | Minimum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 0.25% | ||
Base Rate [Member] | Maximum [Member] | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate (percentage) | 1.25% |
Debt - Partnership Credit Facility - Wells Fargo Bank (Details) - Partnership Credit Facility [Member] $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
redetermindation
|
Dec. 31, 2018
USD ($)
|
|
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 2,000 | |
Number of interim redeterminations that may be requested | redetermindation | 3 | |
Period of redeterminations (in months) | 12 months | |
Current borrowing base | $ 555 | |
Long-term Debt, Gross | 157 | $ 411 |
Remaining Borrowing Capacity | $ 398 | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.375% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Quarterly commitment fee percentage based on unused portion of borrowing base | 0.50% | |
Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.50% | |
LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.00% | |
LIBOR [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.75% | |
LIBOR [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 2.75% | |
Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 0.75% | |
Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (percentage) | 1.75% |
Debt - Financial Covenant Table (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Company Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial covenant, reduction of borrowing base (percentage) | 25.00% |
Company Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX | 4.0 |
Company Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1.0 |
Partnership Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Financial covenant, maximum issuance of unsecured debt | $ 400 |
Financial covenant, reduction of borrowing base (percentage) | 25.00% |
Partnership Credit Facility [Member] | Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX | 4.0 |
Partnership Credit Facility [Member] | Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, as defined in the credit agreement | 1.0 |
Debt - Alliance with Obsidian Resources, L.L.C. (Details) - DrillCo Agreement [Member] $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Alliance with Obsidian Resources, L.L.C. [Line Items] | |
Maximum Funding Amount Through Joint Venture | $ 300 |
Amounts received from joint venture | $ 18 |
Wells drilled and completed under joint venture agreement | 6 |
Capital Stock and Earnings Per Share - Capital Stock (Details) - Viper Energy Partners LP [Member] - USD ($) $ in Millions |
Mar. 01, 2019 |
Mar. 31, 2019 |
---|---|---|
Class of Stock [Line Items] | ||
Interest in Viper Energy Partners LP (percentage) | 54.00% | |
Follow-on Public Offering [Member] | ||
Class of Stock [Line Items] | ||
Sale of Stock, Number of Shares Issued in Transaction | 10,925,000 | |
Interest in Viper Energy Partners LP (percentage) | 54.00% | |
Sale of Stock, Consideration Received on Transaction | $ 341 | |
Over-Allotment Option [Member] | ||
Class of Stock [Line Items] | ||
Sale of Stock, Number of Shares Issued in Transaction | 1,425,000 |
Capital Stock and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Basic: | ||
Net income attributable to common stock | $ 10 | $ 163 |
Basic weighted average common units outstanding | 164,852 | 98,555 |
Basic net income attributable to common stock | $ 0.06 | $ 1.65 |
Effect of Dilutive Securities: | ||
Dilutive effect of potential common shares issuable (in shares) | 209 | 214 |
Diluted: | ||
Diluted weighted average common shares outstanding | 165,061 | 98,769 |
Diluted net income attributable to common stock | $ 0.06 | $ 1.65 |
Antidilutive securities excluded from earnings per share (in shares) | 31 | 0 |
Equity-Based Compensation - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
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 | $ 6 | $ 3 |
General and Administrative Expense [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
General and administrative expenses | $ 14 | $ 8 |
Equity-Based Compensation - Restricted Stock Units (Details) - Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Mar. 31, 2018
USD ($)
|
|
Awards & Units (in shares) | ||
Unvested at December 31, 2018 | shares | 324,224 | |
Granted | shares | 435,049 | |
Vested | shares | (119,477) | |
Forfeited | shares | (9,652) | |
Unvested at March 31, 2019 | shares | 630,144 | |
Weighted Average Grant-Date Fair Value (in dollars per share) | ||
Unvested at December 31, 2018 | $ / shares | $ 116.01 | |
Granted | $ / shares | 107.30 | |
Vested | $ / shares | 109.05 | |
Forfeited | $ / shares | 112.27 | |
Unvested at March 31, 2019 | $ / shares | $ 111.37 | |
Aggregate fair value of share-based awards that vested | $ | $ 13.0 | $ 9.0 |
Unrecognized compensation cost related to unvested awards | $ | $ 55.0 | |
Unrecognized compensation cost, period of recognition (in years) | 1 year 3 months 18 days |
Equity-Based Compensation - Performance Restricted Stock Activity (Details) - Equity Plan [Member] - Performance Shares [Member] $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
Mar. 31, 2019
USD ($)
$ / shares
shares
|
|||||
Awards & Units (in shares) | ||||||
Unvested at December 31, 2018 | 196,203 | |||||
Granted | 356,227 | |||||
Vested | (123,546) | |||||
Unvested at March 31, 2019 | 428,884 | [1] | 428,884 | [1] | ||
Weighted Average Grant-Date Fair Value (in dollars per share) | ||||||
Unvested at December 31, 2018 | $ / shares | $ 169.76 | |||||
Granted | $ / shares | 131.30 | |||||
Vested | $ / shares | 121.41 | |||||
Unvested at March 31, 2019 | $ / shares | $ 151.74 | $ 151.74 | ||||
Share Based Compensation Arrangement by Share Based Payment Maximum Award Potential | 857,768 | 857,768 | ||||
Unrecognized compensation cost related to unvested awards | $ | $ 47 | $ 47 | ||||
Unrecognized compensation cost, period of recognition (in years) | 1 year 4 months 24 days | |||||
Three-Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares, performance period | 3 years | |||||
Awards & Units (in shares) | ||||||
Granted | 199,723 | |||||
Weighted Average Grant-Date Fair Value (in dollars per share) | ||||||
Granted | $ / shares | $ 137.22 | |||||
Three-Year [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be awarded, percent of initial awards received | 0.00% | |||||
Three-Year [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be awarded, percent of initial awards received | 200.00% | |||||
Five-Year [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance shares, performance period | 5 years | |||||
Awards & Units (in shares) | ||||||
Granted | 32,958 | |||||
Weighted Average Grant-Date Fair Value (in dollars per share) | ||||||
Granted | $ / shares | $ 132.48 | |||||
Five-Year [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be awarded, percent of initial awards received | 0.00% | |||||
Five-Year [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be awarded, percent of initial awards received | 200.00% | |||||
|
Equity-Based Compensation - Valuation Assumptions (Details) - Equity Plan [Member] - Performance Shares [Member] - $ / shares |
1 Months Ended | 3 Months Ended |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2019 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 131.30 | |
Risk-free rate (percentage) | 2.55% | |
Company volatility (percentage) | 35.00% | |
Five-Year [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | $ 132.48 |
Equity-Based Compensation - Stock Appreciation Rights (Details) - Equity Plan [Member] - Stock Appreciation Rights (SARs) [Member] |
3 Months Ended |
---|---|
Mar. 31, 2019
$ / shares
shares
| |
Awards & Units (in shares) | |
Unvested at December 31, 2018 | shares | 57,721 |
Granted | shares | (7,111) |
Forfeited | shares | (8,691) |
Unvested at March 31, 2019 | shares | 41,919 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Unvested at December 31, 2018 | $ / shares | $ 22.12 |
Granted | $ / shares | 20.18 |
Forfeited | $ / shares | 23.29 |
Unvested at March 31, 2019 | $ / shares | $ 24.74 |
Equity-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Options (in shares) | ||
Outstanding at December 31, 2018 | 332,387 | |
Granted | 0 | |
Outstanding at March 31, 2019 | 332,387 | |
\Weighted Average Exercise Price (in dollars per share) | ||
Accounts receivable - related party | $ 0 | $ 0 |
Outstanding at December 31, 2018 | $ 95.04 | |
Granted | 0 | |
Outstanding at March 31, 2019 | $ 95.04 | |
Weighted average remaining contractual term | 2 years 5 months 26 days | |
Intrinsic value of options outstanding | $ 14 | |
Vested and Expected to vest at March 31, 2019 | 332,387 | |
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 95.04 | |
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 5 months 26 days | |
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | $ 14 | |
Options, Vested and Expected to Vest, Exercisable, Number | 332,387 | |
Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price | $ 95.04 | |
Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 2 years 5 months 26 days | |
Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $ 14 |
Equity-Based Compensation - Phantom Units (Details) - Viper Energy Partners LP Long Term Incentive Plan [Member] - Phantom Share Units (PSUs) [Member] - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Awards & Units (in shares) | |
Unvested at December 31, 2018 | 125,053 |
Granted | 11,001 |
Vested | (60,133) |
Unvested at March 31, 2019 | 75,921 |
Weighted Average Grant-Date Fair Value (in dollars per share) | |
Unvested at December 31, 2018 | $ 23.44 |
Granted | 33.30 |
Vested | 21.38 |
Unvested at March 31, 2019 | $ 26.51 |
Aggregate fair value of share-based awards that vested | $ 1 |
Unrecognized compensation cost related to unvested awards | $ 2 |
Unrecognized compensation cost, period of recognition (in years) | 11 months 26 days |
Related Party Transactions - Related Party Transactions (Details) |
3 Months Ended | ||
---|---|---|---|
Jun. 23, 2014
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
|
Parent Company [Member] | |||
Related Party Transaction [Line Items] | |||
Payments for Operating Activities | $ 198 | $ 0 | |
Number of leases extended | 1 | ||
Average price per acre | $ 125 | ||
Revenue from related parties on new leases | $ 3,101 | ||
Number of new leases | 2 | ||
Average price per acre on new leases | $ 14,766 | ||
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 | ||
Payments for Operating Activities | $ 0 | $ 0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Effective income tax rate | (301.70%) | 20.90% |
Discrete income tax benefit recorded during the period related to equity-based compensation | $ 1 | |
Discrete income tax benefit related to deferred taxes recorded during the period | $ 35 |
Derivatives - Open Derivative Positions (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
MMBTU
$ / bbl
$ / MMBTU
bbl
| |
WTI Cushing Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 7,758,000 |
Fixed Swap Price (in dollars per bbl) | 61.10 |
WTI Cushing Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 0 |
Fixed Swap Price (in dollars per bbl) | 0 |
WTI Magellan East Houston Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,008,000 |
Fixed Swap Price (in dollars per bbl) | 69.27 |
WTI Magellan East Houston Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 0 |
Fixed Swap Price (in dollars per bbl) | 0 |
BRENT Oil Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,375,000 |
Fixed Swap Price (in dollars per bbl) | 67.22 |
BRENT Oil Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 0 |
Fixed Swap Price (in dollars per bbl) | 0 |
WTI Cushing Oil Basis Swaps 2019 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 12,966,000 |
Fixed Swap Price (in dollars per bbl) | (5.42) |
WTI Cushing Oil Basis Swaps 2020 [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 15,120,000 |
Fixed Swap Price (in dollars per bbl) | (1.21) |
Natural Gas Swaps 2019 - Henry Hub [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 19,250,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 3.06 |
Natural Gas Swaps 2020 - Henry Hub [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0 |
Natural Gas Basis swaps - Waha Hub 2019 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 19,250,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | (1.56) |
Natural Gas Basis Swaps - Waha Hub 2020 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0 |
Natural Gas Liquid Swaps - Mont Belvieu 2019 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 2,070,000 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 27.30 |
Natural Gas Liquid Swaps - Mont Belvieu 2020 [Member] | |
Derivative [Line Items] | |
Volume (MMBtu) | MMBTU | 0 |
Fixed Swap Price (in dollars per bbl) | $ / MMBTU | 0 |
2019 Three-Way Collars - WTI Cushing [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 5,230,000 |
Short put price (per Bbl) | 37.51 |
Floor price (per Bbl) | 47.51 |
Ceiling price (per Bbl) | 63.05 |
2019 Three-Way Collars - BRENT [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,648,000 |
Short put price (per Bbl) | 53.88 |
Floor price (per Bbl) | 63.88 |
Ceiling price (per Bbl) | 80.09 |
2019 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 1,284,000 |
Short put price (per Bbl) | 52.13 |
Floor price (per Bbl) | 62.13 |
Ceiling price (per Bbl) | 69.38 |
2020 Three-Way Collars - BRENT [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 3,660,000 |
Short put price (per Bbl) | 50.00 |
Floor price (per Bbl) | 60.00 |
Ceiling price (per Bbl) | 74.63 |
2020 Three-Way Collars - WTI Magellan East Houston [Member] | |
Derivative [Line Items] | |
Volume (Bbls) | bbl | 2,190,000 |
Short put price (per Bbl) | 50.00 |
Floor price (per Bbl) | 60.00 |
Ceiling price (per Bbl) | 66.90 |
Derivatives - Offsetting Derivative Instruments (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts of assets presented in the Consolidated Balance Sheet | $ 5 | $ 231 |
Net amounts of assets presented in the Consolidated Balance Sheet | 5 | 231 |
Gross amounts of liabilities presented in the Consolidated Balance Sheet | 74 | 15 |
Net amounts of liabilities presented in the Consolidated Balance Sheet | $ 74 | $ 15 |
Derivatives - Balance Sheet Location (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Current assets: derivative instruments | $ 5 | $ 231 |
Noncurrent assets: derivative instruments | 0 | 0 |
Total assets | 5 | 231 |
Current liabilities: derivative instruments | 58 | 0 |
Noncurrent liabilities: derivative instruments | 16 | 15 |
Total liabilities | $ 74 | $ 15 |
Derivatives - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Change in fair value of open non-hedge derivative instruments | $ (285) | $ 0 |
Gain (loss) on settlement of non-hedge derivative instruments | 17 | (32) |
Loss on derivative instruments | $ (268) | $ (32) |
Fair Value Measurements - Recurring Measurements (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Assets: | ||||
Impact of adoption of ASU 2016-01, net of tax | $ (16) | |||
Gain on revaluation of investment | $ 4 | 1 | ||
Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Fixed price swaps | 0 | $ 0 | ||
Equity Method Investments, Fair Value Disclosure | 18 | 14 | ||
Impact of adoption of ASU 2016-01, net of tax | (19) | |||
Gain on revaluation of investment | 4 | 1 | ||
Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Fixed price swaps | 0 | 0 | ||
Fair Value, Net Asset (Liability) | 69 | 216 | ||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | ||
Recurring [Member] | Significant Unobservable Inputs Level 3 [Member] | ||||
Assets: | ||||
Fixed price swaps | 0 | 0 | ||
Equity Method Investments, Fair Value Disclosure | 0 | 0 | ||
Other Noncurrent Assets [Member] | Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Assets: | ||||
Equity Method Investments, Fair Value Disclosure | $ 18 | $ 16 | $ 14 | $ 34 |
Fair Value Measurements - Nonrecurring Measurements (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Dec. 20, 2016 |
Oct. 28, 2016 |
|||
---|---|---|---|---|---|---|---|---|---|
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Long-term Debt | $ 4,670 | $ 4,464 | |||||||
4.625% Notes due 2021 [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.625% | 4.625% | |||||||
7.32% Medium Term Series A due 2022 [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.32% | 7.32% | |||||||
Senior Unsecured Notes due 2024 [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 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 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | 5.375% | 5.375% | 5.375% | 5.375% | ||||
7.35% Medium Term Notes Series A [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.35% | 7.35% | |||||||
7.125% Medium Term Notes Series B [Member] [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.125% | 7.125% | |||||||
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 | $ 1,914 | $ 1,490 | |||||||
Reported Value Measurement [Member] | 4.625% Notes due 2021 [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 399 | 400 | ||||||
Reported Value Measurement [Member] | 7.32% Medium Term Series A due 2022 [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 21 | 20 | ||||||
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 | 1,250 | 1,250 | |||||||
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 | 800 | |||||||
Reported Value Measurement [Member] | 7.35% Medium Term Notes Series A [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 11 | 10 | ||||||
Reported Value Measurement [Member] | 7.125% Medium Term Notes Series B [Member] [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 109 | 100 | ||||||
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 | 157 | 411 | |||||||
Reported Value Measurement [Member] | DrillCo Agreement [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Long-term Debt | 23 | 0 | |||||||
Estimate of Fair Value Measurement [Member] | 4.625% Notes due 2021 [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 404 | 393 | ||||||
Estimate of Fair Value Measurement [Member] | 7.32% Medium Term Series A due 2022 [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 22 | 21 | ||||||
Estimate of Fair Value Measurement [Member] | 7.35% Medium Term Notes Series A [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 11 | 11 | ||||||
Estimate of Fair Value Measurement [Member] | 7.125% Medium Term Notes Series B [Member] [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Senior Notes | [1] | 110 | 102 | ||||||
Estimate of Fair Value Measurement [Member] | DrillCo Agreement [Member] | Nonrecurring [Member] | |||||||||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | |||||||||
Long-term Debt, Fair Value | 23 | 0 | |||||||
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 | 1,283 | 1,204 | |||||||
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 | 838 | 782 | |||||||
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 | 1,914 | 1,490 | |||||||
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 | $ 157 | $ 411 | |||||||
|
Leases (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 26.0 | $ 13.0 |
Operating Lease, Cost | 4.0 | |
Additional amount of operating lease right of use asset recorded | 8.0 | |
Operating Lease, Payments | 5.0 | |
Operating Lease, Liability | 26.0 | |
Operating Lease, Liability, Current | $ 21.0 | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 4 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 8.40% | |
2019 (April - December) | $ 22.0 | |
2020 | 4.0 | |
2021 | 1.0 | |
2022 | 0.0 | |
2023 | 0.0 | |
Thereafter | 0.0 | |
Total lease payments | 27.0 | |
Less: interest | $ 1.0 |
Subsequent Events (Details) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
May 07, 2019
USD ($)
a
$ / bbl
|
May 07, 2019
USD ($)
$ / bbl
bbl
|
Jun. 30, 2019
$ / shares
|
Mar. 31, 2019
$ / shares
$ / bbl
bbl
|
Mar. 31, 2018
$ / shares
|
May 02, 2019
USD ($)
|
|
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ / shares | $ 0.1875 | $ 0.125 | ||||
2019 Three-Way Collars - BRENT [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,648,000 | |||||
Short put price (per Bbl) | 53.88 | |||||
Floor price (per Bbl) | 63.88 | |||||
Ceiling price (per Bbl) | 80.09 | |||||
WTI Cushing Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 7,758,000 | |||||
Fixed Swap Price (in dollars per bbl) | 61.10 | |||||
WTI Magellan East Houston Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,008,000 | |||||
Fixed Swap Price (in dollars per bbl) | 69.27 | |||||
BRENT Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,375,000 | |||||
Fixed Swap Price (in dollars per bbl) | 67.22 | |||||
WTI Cushing Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 0 | |||||
Fixed Swap Price (in dollars per bbl) | 0 | |||||
2019 Three-Way Collars - WTI Magellan East Houston [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,284,000 | |||||
Short put price (per Bbl) | 52.13 | |||||
Floor price (per Bbl) | 62.13 | |||||
Ceiling price (per Bbl) | 69.38 | |||||
WTI Magellan East Houston Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 0 | |||||
Fixed Swap Price (in dollars per bbl) | 0 | |||||
BRENT Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 0 | |||||
Fixed Swap Price (in dollars per bbl) | 0 | |||||
2020 Three-Way Collars - BRENT [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 3,660,000 | |||||
Short put price (per Bbl) | 50.00 | |||||
Floor price (per Bbl) | 60.00 | |||||
Ceiling price (per Bbl) | 74.63 | |||||
2020 Three-Way Collars - WTI Magellan East Houston [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,190,000 | |||||
Short put price (per Bbl) | 50.00 | |||||
Floor price (per Bbl) | 60.00 | |||||
Ceiling price (per Bbl) | 66.90 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared per share | $ / shares | $ 0.1875 | |||||
Stock Repurchase Program, Authorized Amount | $ | $ 2,000 | $ 2,000 | ||||
Pending divested net acres | a | 103,423 | |||||
Sales price of pending divestitures | $ | $ 322 | |||||
Subsequent Event [Member] | 2019 Three-Way Collars - BRENT [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 368,000 | |||||
Short put price (per Bbl) | 50.00 | 50.00 | ||||
Floor price (per Bbl) | 60.00 | 60.00 | ||||
Ceiling price (per Bbl) | 77.50 | 77.50 | ||||
Subsequent Event [Member] | 2020 Three-Way Collars - WTI [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,928,000 | |||||
Short put price (per Bbl) | 45.00 | 45.00 | ||||
Floor price (per Bbl) | 55.00 | 55.00 | ||||
Ceiling price (per Bbl) | 67.00 | 67.00 | ||||
Subsequent Event [Member] | WTI Cushing Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 368,000 | |||||
Fixed Swap Price (in dollars per bbl) | 61.72 | 61.72 | ||||
Subsequent Event [Member] | WTI Magellan East Houston Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 828,000 | |||||
Fixed Swap Price (in dollars per bbl) | 65.61 | 65.61 | ||||
Subsequent Event [Member] | BRENT Oil Swaps 2019 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 368,000 | |||||
Fixed Swap Price (in dollars per bbl) | 69.45 | 69.45 | ||||
Subsequent Event [Member] | WTI Cushing Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,562,000 | |||||
Fixed Swap Price (in dollars per bbl) | 60.63 | 60.63 | ||||
Subsequent Event [Member] | WTI Magellan East Houston Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,464,000 | |||||
Fixed Swap Price (in dollars per bbl) | 64.25 | 64.25 | ||||
Subsequent Event [Member] | BRENT Oil Swaps 2020 [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 1,464,000 | |||||
Fixed Swap Price (in dollars per bbl) | 66.24 | 66.24 | ||||
Subsequent Event [Member] | 2020 Three-Way Collars - BRENT [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,196,000 | |||||
Short put price (per Bbl) | 51.67 | 51.67 | ||||
Floor price (per Bbl) | 61.67 | 61.67 | ||||
Ceiling price (per Bbl) | 74.92 | 74.92 | ||||
Subsequent Event [Member] | 2020 Three-Way Collars - WTI Magellan East Houston [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Volume (Bbls) | bbl | 2,928,000 | |||||
Short put price (per Bbl) | 50.00 | 50.00 | ||||
Floor price (per Bbl) | 60.00 | 60.00 | ||||
Ceiling price (per Bbl) | 69.90 | 69.90 | ||||
Gray Oak Pipeline [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Amount outstanding under equity method investment promissory note | $ | $ 23 |
Guarantor Financial Statements - Balance Sheet (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 126 | $ 215 | $ 72 | $ 112 |
Accounts receivable, net | 463 | 392 | ||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 39 | 37 | ||
Derivative instruments | 5 | 231 | ||
Other current assets | 60 | 50 | ||
Total current assets | 693 | 925 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 23,229 | 22,299 | ||
Midstream assets | 762 | 700 | ||
Other property, equipment and land | 151 | 147 | ||
Accumulated depletion, depreciation, amortization and impairment | (3,095) | (2,774) | ||
Net property and equipment | 21,047 | 20,372 | ||
Equity method investments | 150 | 1 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred tax asset | 150 | 97 | ||
Investment in real estate, net | 114 | 116 | ||
Other assets | 114 | 85 | ||
Total assets | 22,268 | 21,596 | ||
Current liabilities: | ||||
Accounts payable-trade | 180 | 128 | ||
Intercompany payable | 0 | 0 | ||
Accrued capital expenditures | 485 | 495 | ||
Other accrued liabilities | 238 | 253 | ||
Revenues and royalties payable | 151 | 143 | ||
Derivative instruments | 58 | 0 | ||
Total current liabilities | 1,112 | 1,019 | ||
Long-term debt | 4,670 | 4,464 | ||
Derivative instruments | 16 | 15 | ||
Asset retirement obligations | 140 | 136 | 21 | |
Deferred income taxes | 1,802 | 1,785 | ||
Other long-term liabilities | 14 | 10 | ||
Total liabilities | 7,754 | 7,429 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 13,773 | 13,700 | ||
Non-controlling interest | 741 | 467 | ||
Total equity | 14,514 | 14,167 | 5,735 | 5,582 |
Total liabilities and equity | 22,268 | 21,596 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Accounts Receivable, Related Parties, Current | (7) | (3) | ||
Intercompany receivable | (5,341) | (4,670) | ||
Inventories | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | (5,348) | (4,673) | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | (3) | (4) | ||
Midstream assets | 0 | 0 | ||
Other property, equipment and land | 0 | 0 | ||
Accumulated depletion, depreciation, amortization and impairment | (19) | (12) | ||
Net property and equipment | (22) | (16) | ||
Equity method investments | 0 | 0 | ||
Investment in subsidiaries | (12,344) | (11,688) | ||
Deferred tax asset | 0 | 0 | ||
Investment in real estate, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (17,714) | (16,377) | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 0 | ||
Intercompany payable | (5,348) | (4,673) | ||
Accrued capital expenditures | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Revenues and royalties payable | 0 | 0 | ||
Derivative instruments | 0 | |||
Total current liabilities | (5,348) | (4,673) | ||
Long-term debt | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (5,348) | (4,673) | ||
Commitments and contingencies | ||||
Stockholders’ equity | (12,319) | (11,476) | ||
Non-controlling interest | (47) | (228) | ||
Total equity | (12,366) | (11,704) | ||
Total liabilities and equity | (17,714) | (16,377) | ||
Parent Company [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 121 | 84 | 28 | 54 |
Accounts receivable, net | 0 | 0 | ||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||
Intercompany receivable | 3,985 | 4,469 | ||
Inventories | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Other current assets | 1 | 3 | ||
Total current assets | 4,107 | 4,556 | ||
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 | ||
Equity method investments | 0 | 0 | ||
Investment in subsidiaries | 12,221 | 11,576 | ||
Deferred tax asset | 0 | 0 | ||
Investment in real estate, net | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | 16,328 | 16,132 | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 0 | ||
Intercompany payable | 81 | 0 | ||
Accrued capital expenditures | 0 | 0 | ||
Other accrued liabilities | 39 | 14 | ||
Revenues and royalties payable | 0 | 0 | ||
Derivative instruments | 0 | |||
Total current liabilities | 120 | 14 | ||
Long-term debt | 2,036 | 2,036 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 399 | 382 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 2,555 | 2,432 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 13,773 | 13,700 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 13,773 | 13,700 | ||
Total liabilities and equity | 16,328 | 16,132 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | (5) | 108 | 26 | 34 |
Accounts receivable, net | 425 | 354 | ||
Accounts Receivable, Related Parties, Current | 0 | 0 | ||
Intercompany receivable | 1,356 | 201 | ||
Inventories | 39 | 37 | ||
Derivative instruments | 5 | 231 | ||
Other current assets | 59 | 47 | ||
Total current assets | 1,879 | 978 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 21,434 | 20,586 | ||
Midstream assets | 762 | 700 | ||
Other property, equipment and land | 145 | 141 | ||
Accumulated depletion, depreciation, amortization and impairment | (2,812) | (2,514) | ||
Net property and equipment | 19,529 | 18,913 | ||
Equity method investments | 150 | 1 | ||
Investment in subsidiaries | 123 | 112 | ||
Deferred tax asset | 0 | 0 | ||
Investment in real estate, net | 114 | 116 | ||
Other assets | 92 | 67 | ||
Total assets | 21,887 | 20,187 | ||
Current liabilities: | ||||
Accounts payable-trade | 180 | 128 | ||
Intercompany payable | 5,267 | 4,673 | ||
Accrued capital expenditures | 485 | 495 | ||
Other accrued liabilities | 196 | 233 | ||
Revenues and royalties payable | 151 | 143 | ||
Derivative instruments | 58 | |||
Total current liabilities | 6,337 | 5,672 | ||
Long-term debt | 2,477 | 2,017 | ||
Derivative instruments | 16 | 15 | ||
Asset retirement obligations | 140 | 136 | ||
Deferred income taxes | 1,403 | 1,403 | ||
Other long-term liabilities | 14 | 10 | ||
Total liabilities | 10,387 | 9,253 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 11,500 | 10,934 | ||
Non-controlling interest | 0 | 0 | ||
Total equity | 11,500 | 10,934 | ||
Total liabilities and equity | 21,887 | 20,187 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 10 | 23 | $ 18 | $ 24 |
Accounts receivable, net | 38 | 38 | ||
Accounts Receivable, Related Parties, Current | 7 | 3 | ||
Intercompany receivable | 0 | 0 | ||
Inventories | 0 | 0 | ||
Derivative instruments | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 55 | 64 | ||
Property and equipment: | ||||
Oil and natural gas properties, at cost, based on the full cost method of accounting | 1,798 | 1,717 | ||
Midstream assets | 0 | 0 | ||
Other property, equipment and land | 6 | 6 | ||
Accumulated depletion, depreciation, amortization and impairment | (264) | (248) | ||
Net property and equipment | 1,540 | 1,475 | ||
Equity method investments | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Deferred tax asset | 150 | 97 | ||
Investment in real estate, net | 0 | 0 | ||
Other assets | 22 | 18 | ||
Total assets | 1,767 | 1,654 | ||
Current liabilities: | ||||
Accounts payable-trade | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Accrued capital expenditures | 0 | 0 | ||
Other accrued liabilities | 3 | 6 | ||
Revenues and royalties payable | 0 | 0 | ||
Derivative instruments | 0 | |||
Total current liabilities | 3 | 6 | ||
Long-term debt | 157 | 411 | ||
Derivative instruments | 0 | 0 | ||
Asset retirement obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 160 | 417 | ||
Commitments and contingencies | ||||
Stockholders’ equity | 819 | 542 | ||
Non-controlling interest | 788 | 695 | ||
Total equity | 1,607 | 1,237 | ||
Total liabilities and equity | $ 1,767 | $ 1,654 |
Guarantor Financial Statements - Income Statement (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenues: | ||
Lease bonus | $ 1 | $ 0 |
Other operating income | 2 | 2 |
Revenue | 864 | 479 |
Costs and expenses: | ||
Lease operating expenses | 109 | 37 |
Production and ad valorem taxes | 55 | 27 |
Depreciation, depletion and amortization | 322 | 115 |
General and administrative expenses | 27 | 16 |
Asset retirement obligation accretion | 2 | 1 |
Other operating expense | 1 | 1 |
Total costs and expenses | 545 | 212 |
Income (loss) from operations | 319 | 267 |
Other income (expense): | ||
Interest expense, net | (46) | (14) |
Other income (expense), net | 1 | 3 |
Loss on derivative instruments, net | (268) | (32) |
Gain on revaluation of investment | 4 | 1 |
Total other income (expense), net | (309) | (42) |
Income (loss) before income taxes | 10 | 225 |
Provision for (benefit from) income taxes | (33) | 47 |
Net income | 43 | 178 |
Net income attributable to non-controlling interest | 33 | 15 |
Net income (loss) attributable to Diamondback Energy, Inc. | 10 | 163 |
Eliminations [Member] | ||
Revenues: | ||
Lease bonus | 0 | |
Other operating income | 0 | 0 |
Revenue | 0 | (1) |
Costs and expenses: | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 0 | 0 |
Depreciation, depletion and amortization | 6 | 3 |
General and administrative expenses | 0 | 0 |
Asset retirement obligation accretion | 0 | 0 |
Other operating expense | 0 | 0 |
Total costs and expenses | 6 | 3 |
Income (loss) from operations | (6) | (4) |
Other income (expense): | ||
Interest expense, net | 0 | 0 |
Other income (expense), net | 0 | 0 |
Loss on derivative instruments, net | 0 | 0 |
Gain on revaluation of investment | 0 | 0 |
Total other income (expense), net | 0 | 0 |
Income (loss) before income taxes | (6) | (4) |
Provision for (benefit from) income taxes | 0 | 0 |
Net income | (6) | (4) |
Net income attributable to non-controlling interest | (7) | 15 |
Net income (loss) attributable to Diamondback Energy, Inc. | 1 | (19) |
Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Lease bonus | 0 | |
Other operating income | 0 | 0 |
Revenue | 0 | 0 |
Costs and expenses: | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 0 | 0 |
Depreciation, depletion and amortization | 0 | 0 |
General and administrative expenses | 15 | 7 |
Asset retirement obligation accretion | 0 | 0 |
Other operating expense | 0 | 0 |
Total costs and expenses | 15 | 7 |
Income (loss) from operations | (15) | (7) |
Other income (expense): | ||
Interest expense, net | (10) | (9) |
Other income (expense), net | 0 | 0 |
Loss on derivative instruments, net | 0 | 0 |
Gain on revaluation of investment | 0 | 0 |
Total other income (expense), net | (10) | (9) |
Income (loss) before income taxes | (25) | (16) |
Provision for (benefit from) income taxes | 2 | 47 |
Net income | (27) | (63) |
Net income attributable to non-controlling interest | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | (27) | (63) |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Lease bonus | 0 | |
Other operating income | 2 | 2 |
Revenue | 803 | 418 |
Costs and expenses: | ||
Lease operating expenses | 109 | 37 |
Production and ad valorem taxes | 51 | 23 |
Depreciation, depletion and amortization | 300 | 100 |
General and administrative expenses | 11 | 7 |
Asset retirement obligation accretion | 2 | 1 |
Other operating expense | 1 | 1 |
Total costs and expenses | 503 | 184 |
Income (loss) from operations | 300 | 234 |
Other income (expense): | ||
Interest expense, net | (30) | (3) |
Other income (expense), net | 1 | 3 |
Loss on derivative instruments, net | (268) | (32) |
Gain on revaluation of investment | 0 | 0 |
Total other income (expense), net | (297) | (32) |
Income (loss) before income taxes | 3 | 202 |
Provision for (benefit from) income taxes | 0 | 0 |
Net income | 3 | 202 |
Net income attributable to non-controlling interest | 0 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 3 | 202 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Lease bonus | 1 | |
Other operating income | 0 | 0 |
Revenue | 61 | 62 |
Costs and expenses: | ||
Lease operating expenses | 0 | 0 |
Production and ad valorem taxes | 4 | 4 |
Depreciation, depletion and amortization | 16 | 12 |
General and administrative expenses | 1 | 2 |
Asset retirement obligation accretion | 0 | 0 |
Other operating expense | 0 | 0 |
Total costs and expenses | 21 | 18 |
Income (loss) from operations | 40 | 44 |
Other income (expense): | ||
Interest expense, net | (6) | (2) |
Other income (expense), net | 0 | 0 |
Loss on derivative instruments, net | 0 | 0 |
Gain on revaluation of investment | 4 | 1 |
Total other income (expense), net | (2) | (1) |
Income (loss) before income taxes | 38 | 43 |
Provision for (benefit from) income taxes | (35) | 0 |
Net income | 73 | 43 |
Net income attributable to non-controlling interest | 40 | 0 |
Net income (loss) attributable to Diamondback Energy, Inc. | 33 | 43 |
Oil sales | ||
Revenues: | ||
Revenue | 743 | 419 |
Oil sales | Eliminations [Member] | ||
Revenues: | ||
Revenue | 52 | 55 |
Oil sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Oil sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 691 | 364 |
Oil sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Natural gas sales | ||
Revenues: | ||
Revenue | 29 | 14 |
Natural gas sales | Eliminations [Member] | ||
Revenues: | ||
Revenue | 4 | 2 |
Natural gas sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Natural gas sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 25 | 12 |
Natural gas sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Natural gas liquid sales | ||
Revenues: | ||
Revenue | 70 | 33 |
Natural gas liquid sales | Eliminations [Member] | ||
Revenues: | ||
Revenue | 4 | 4 |
Natural gas liquid sales | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Natural gas liquid sales | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 66 | 29 |
Natural gas liquid sales | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Royalty [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Royalty [Member] | Eliminations [Member] | ||
Revenues: | ||
Revenue | (60) | (62) |
Royalty [Member] | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Royalty [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Royalty [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 60 | 62 |
Midstream services | ||
Revenues: | ||
Revenue | 19 | 11 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 17 | 11 |
Midstream services | Eliminations [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 0 | 0 |
Midstream services | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 0 | 0 |
Midstream services | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 19 | 11 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 17 | 11 |
Midstream services | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Revenues: | ||
Revenue | 0 | 0 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 0 | 0 |
Gathering and Transportation [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | 12 | 4 |
Gathering and Transportation [Member] | Eliminations [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | 0 | 0 |
Gathering and Transportation [Member] | Parent Company [Member] | Reportable Legal Entities [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | 0 | 0 |
Gathering and Transportation [Member] | Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | 12 | 4 |
Gathering and Transportation [Member] | Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Costs and expenses: | ||
Cost of Goods and Services Sold | $ 0 | $ 0 |
Guarantor Financial Statements - Cash Flow Statement (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | $ 377 | $ 339 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (569) | (280) |
Additions to midstream assets | (58) | (38) |
Purchase of other property, equipment and land | (4) | (2) |
Acquisition of leasehold interests | (75) | (16) |
Acquisition of mineral interests | (82) | (150) |
Funds held in escrow | 0 | 11 |
Equity investments | (149) | 0 |
Intercompany transfers | 0 | |
Investment in real estate | 0 | (110) |
Net cash used in investing activities | (937) | (585) |
Cash flows from financing activities: | ||
Proceeds from borrowing under credit facility | 484 | 224 |
Repayment under credit facility | (314) | (308) |
Proceeds from senior notes | 0 | 312 |
Proceeds from joint venture | 23 | 0 |
Debt issuance costs | (3) | (3) |
Proceeds from public offerings | 341 | 0 |
Distributions from subsidiary | 0 | 0 |
Dividends to stockholders | (21) | 0 |
Repurchased shares for tax withholding | (13) | 0 |
Distributions to non-controlling interest | (26) | (19) |
Intercompany transfers | 0 | 0 |
Net cash provided by financing activities | 471 | 206 |
Net increase (decrease) in cash and cash equivalents | (89) | (40) |
Cash and cash equivalents at beginning of period | 215 | 112 |
Cash and cash equivalents at end of period | 126 | 72 |
Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by 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 |
Funds held in escrow | 0 | |
Equity investments | 0 | |
Intercompany transfers | 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 under credit facility | 0 | 0 |
Proceeds from senior notes | 0 | |
Proceeds from joint venture | 0 | |
Debt issuance costs | 0 | 0 |
Proceeds from public offerings | 0 | |
Distributions from subsidiary | (37) | (33) |
Dividends to stockholders | 0 | |
Repurchased shares for tax withholding | 0 | |
Distributions to non-controlling interest | 37 | 33 |
Intercompany transfers | 0 | 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 |
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 operating activities | 16 | 27 |
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 |
Funds held in escrow | 0 | |
Equity investments | 0 | |
Intercompany transfers | (87) | |
Investment in real estate | 0 | |
Net cash used in investing activities | 0 | (87) |
Cash flows from financing activities: | ||
Proceeds from borrowing under credit facility | 0 | 0 |
Repayment under credit facility | 0 | 0 |
Proceeds from senior notes | 312 | |
Proceeds from joint venture | 0 | |
Debt issuance costs | 0 | (3) |
Proceeds from public offerings | 0 | |
Distributions from subsidiary | 37 | 33 |
Dividends to stockholders | (21) | |
Repurchased shares for tax withholding | (13) | |
Distributions to non-controlling interest | 0 | 0 |
Intercompany transfers | 18 | (308) |
Net cash provided by financing activities | 21 | 34 |
Net increase (decrease) in cash and cash equivalents | 37 | (26) |
Cash and cash equivalents at beginning of period | 84 | 54 |
Cash and cash equivalents at end of period | 121 | 28 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 316 | 263 |
Cash flows from investing activities: | ||
Additions to oil and natural gas properties | (569) | (280) |
Additions to midstream assets | (58) | (38) |
Purchase of other property, equipment and land | (4) | (2) |
Acquisition of leasehold interests | (75) | (16) |
Acquisition of mineral interests | 0 | 0 |
Funds held in escrow | 11 | |
Equity investments | (149) | |
Intercompany transfers | 87 | |
Investment in real estate | (110) | |
Net cash used in investing activities | (855) | (348) |
Cash flows from financing activities: | ||
Proceeds from borrowing under credit facility | 424 | 77 |
Repayment under credit facility | 0 | (308) |
Proceeds from senior notes | 0 | |
Proceeds from joint venture | 23 | |
Debt issuance costs | (3) | 0 |
Proceeds from public offerings | 0 | |
Distributions from subsidiary | 0 | 0 |
Dividends to stockholders | 0 | |
Repurchased shares for tax withholding | 0 | |
Distributions to non-controlling interest | 0 | 0 |
Intercompany transfers | (18) | 308 |
Net cash provided by financing activities | 426 | 77 |
Net increase (decrease) in cash and cash equivalents | (113) | (8) |
Cash and cash equivalents at beginning of period | 108 | 34 |
Cash and cash equivalents at end of period | (5) | 26 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by operating activities | 45 | 49 |
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 | (82) | (150) |
Funds held in escrow | 0 | |
Equity investments | 0 | |
Intercompany transfers | 0 | |
Investment in real estate | 0 | |
Net cash used in investing activities | (82) | (150) |
Cash flows from financing activities: | ||
Proceeds from borrowing under credit facility | 60 | 147 |
Repayment under credit facility | (314) | 0 |
Proceeds from senior notes | 0 | |
Proceeds from joint venture | 0 | |
Debt issuance costs | 0 | 0 |
Proceeds from public offerings | 341 | |
Distributions from subsidiary | 0 | 0 |
Dividends to stockholders | 0 | |
Repurchased shares for tax withholding | 0 | |
Distributions to non-controlling interest | (63) | (52) |
Intercompany transfers | 0 | 0 |
Net cash provided by financing activities | 24 | 95 |
Net increase (decrease) in cash and cash equivalents | (13) | (6) |
Cash and cash equivalents at beginning of period | 23 | 24 |
Cash and cash equivalents at end of period | $ 10 | $ 18 |
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