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Diamondback Energy, Inc. (FANG)

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78.75+2.55 (+3.35%)
As of 3:19PM EDT. Market open.
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Previous Close76.20
Open77.69
Bid78.33 x 800
Ask78.42 x 900
Day's Range76.70 - 79.28
52 Week Range23.63 - 88.75
Volume1,945,276
Avg. Volume2,869,767
Market Cap14.254B
Beta (5Y Monthly)2.74
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & Yield1.60 (2.01%)
Ex-Dividend DateMay 12, 2021
1y Target EstN/A
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  • Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Reports First Quarter 2021 Financial and Operating Results
    GlobeNewswire

    Rattler Midstream LP, a Subsidiary of Diamondback Energy, Inc., Reports First Quarter 2021 Financial and Operating Results

    MIDLAND, Texas, May 04, 2021 (GLOBE NEWSWIRE) -- Rattler Midstream LP (NASDAQ: RTLR) (“Rattler” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced financial and operating results for the first quarter ended March 31, 2021. FIRST QUARTER 2021 HIGHLIGHTS Q1 2021 consolidated net income (including non-controlling interest) of $25.9 millionQ1 2021 consolidated Adjusted EBITDA (as defined and reconciled below) of $65.3 millionQ1 2021 cash flow provided by operating activities of $52.7 million; Q1 2021 Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $47.9 millionQ1 2021 cash operated capital expenditures of $5.9 millionQ1 2021 consolidated Free Cash Flow (as defined and reconciled below) of $47.4 millionBoard of Directors of Rattler's general partner approved a cash distribution for the first quarter of 2021 of $0.20 per common unit ($0.80 annualized); implies a 7.1% annualized yield based on the May 3, 2021 closing unit price of $11.24Repurchased approximately 1.08 million common units at an average unit price of $10.27 for a total cost of $11.1 million during the quarterQ1 2021 average produced water gathering and disposal volumes of 766 MBbl/dQ1 2021 average sourced water volumes of 268 MBbl/d; 22% of total sourced water volumes in Q1 2021 sourced from recycled produced waterQ1 2021 average crude oil gathering volumes of 85 MBbl/dQ1 2021 average gas gathering volumes of 130 BBtu/dSubsequent to the quarter end, Rattler and Amarillo Midstream sold their 50/50 Amarillo Rattler joint venture to EnLink Midstream for total gross potential consideration of $75 million, consisting of $50 million at closing, $10 million upon the first anniversary of closing and up to $15 million in contingent earn-out paymentsSubsequent to the quarter end, Rattler signed a definitive agreement to sell non-core real estate for $10 million, subject to certain closing adjustments “Despite the impact of Winter Storm Uri on operations, the first quarter of 2021 saw strong free cash flow generation from Rattler that exhibits the resiliency of our business model. We'd like to thank our field personnel and industry partners that enabled this accomplishment by working around the clock to get our operations back online despite the conditions. While volumes on our operated business as well as our equity method joint ventures were affected, capital discipline and line of sight into Diamondback's development enabled Rattler to keep capital expenditures to a minimum. The resulting free cash flow was used to fund a combination of unitholder distributions, common unit repurchases and debt repayment in accordance with our stated priority of returning capital to investors,” stated Travis Stice, Chief Executive Officer of Rattler’s general partner. Mr. Stice continued, "For the first time since Rattler's initial public offering, distributions from Rattler's equity method investments exceeded our contributions to these projects. This trend is expected to continue and expand as our equity method joint venture build cycle comes to an end, accelerated by the announced sale of our Amarillo Rattler joint venture. This joint venture highlights the advantages of the mutually beneficial relationship between Diamondback and Rattler: Rattler was able to participate in an ultimately profitable venture underpinned by Diamondback volumes, and Diamondback was able to secure the midstream investment and capacity needed to develop one of its core operating areas.” Mr. Stice further stated, “Looking forward to the remainder of 2021, the guidance and operating plan is unchanged from our initial guidance provided. There were no lasting effects of the first quarter's winter events on our equipment or operations, and Rattler expects to continue executing on its business plan, which is to provide the highest level of reliability and service to our customers in the most environmentally responsible manner." OPERATIONS AND FINANCIAL UPDATE During the first quarter of 2021, the Company recorded total operating income of $37.7 million, a decrease of 22% compared to the fourth quarter of 2020. During the first quarter of 2021, the Company recorded consolidated net income (loss) (including non-controlling interest) of $25.9 million, a decrease of 33% from the fourth quarter of 2020. First quarter 2021 Adjusted EBITDA (as defined and reconciled below) was $65.3 million, a decrease of 16% from the fourth quarter of 2020. First quarter operated capital expenditures totaled $5.9 million, and aggregate contributions to equity method joint ventures were $3.7 million. Rattler also received proceeds of $9.1 million in distributions from equity method investments during the quarter. The following table summarizes the Company's throughput on its operated assets. Three Months Ended March 31, 2021 2020Crude oil gathering (Bbl/d)85,210 97,293 Natural gas gathering (MMBtu/d)130,437 117,761 Produced water gathering and disposal (Bbl/d)765,588 941,628 Sourced water gathering (Bbl/d)267,834 446,713 CASH DISTRIBUTION On April 28, 2021, the Board of Directors of Rattler's general partner approved a cash distribution for the first quarter of 2021 of $0.20 per common unit, payable on May 21, 2021 to unitholders of record at the close of business on May 14, 2021. COMMON UNIT REPURCHASE PROGRAM On October 29, 2020, the Board of Directors of Rattler's general partner approved a common unit repurchase program to acquire up to $100.0 million of Rattler's outstanding common units through December 31, 2021. Pursuant to this program, during the first quarter of 2021, the Company repurchased 1,081,855 common units at an average unit price of $10.27 per unit for a total cost of $11.1 million. From the end of the first quarter of 2021 through April 30, 2021, Rattler repurchased an additional 315,000 common units for a total cost of $3.5 million. In total from the program's inception through April 30, 2021, Rattler repurchased 3,046,855 common units for a total cost of $29.3 million, utilizing 29% of the $100.0 million approved by the Board for the repurchase program. SUBSEQUENT EVENTS On April 22, 2021, the Company signed a definitive agreement to sell one of its real estate properties located in Midland, Texas for estimated proceeds of $10 million, subject to certain closing adjustments. The transaction is expected to close in the second quarter of 2021. On April 30, 2021, each of Rattler and its joint venture partner, Amarillo Midstream, LLC, sold its 50% interest in Amarillo Rattler LLC to EnLink Midstream for aggregate total gross potential consideration of $75 million, consisting of $50 million at closing, $10 million upon the first anniversary of closing and $15 million in contingent earn-out payments over a three-year span based upon Diamondback's development activity. Net of transaction expenses and working capital adjustments, Rattler received $23.5 million at closing, with an incremental $5 million due in April 2022, and could receive up to $7.5 million in contingent payments from 2023 to 2025. GUIDANCE Below is Rattler's guidance for the full year 2021. Rattler Midstream LP Guidance 2021 Rattler Operated Volumes (a) Produced Water Gathering and Disposal (MBbl/d)800 - 900Sourced Water (MBbl/d)200 - 300Crude Oil Gathering (MBbl/d)75 - 85Gas Gathering (BBtu/d)120 - 140 Financial Metrics ($ millions except per unit metrics) Net Income$140 - $180Adjusted EBITDA$280 - $320Operated Midstream Capex$60 - $80Equity Method Investment Contributions(b)$10 - $20Equity Method Investment Distributions(b)$35 - $45Depreciation, Amortization & Accretion$50 - $70 (a) Does not include any volumes from the EPIC, Gray Oak, Wink to Webster, OMOG and Amarillo Rattler joint ventures(b) Includes the EPIC, Gray Oak, Wink to Webster, OMOG and Amarillo Rattler joint ventures CONFERENCE CALL Rattler will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2021 on Wednesday, May 5, 2021 at 9:00 a.m. CT. Participants should call (877) 288-2756 (United States/Canada) or (470) 495-9481 (International) and use the confirmation code 9268528. A telephonic replay will be available from 12:00 p.m. CT on Wednesday, May 5, 2021 through Wednesday, May 12, 2021 at 12:00 p.m. CT. To access the replay, call (855) 859-2056 (United States/Canada) or (404) 537-3406 (International) and enter confirmation code 9268528. A live broadcast of the earnings conference call will also be available via the internet at www.rattlermidstream.com under the “Investors” section of the site. A replay will also be available on the website following the call. About Rattler Midstream LP Rattler Midstream LP is a Delaware limited partnership formed by Diamondback Energy to own, operate, develop and acquire midstream and energy-related infrastructure assets. Rattler owns crude oil, natural gas and water-related midstream assets in the Permian Basin that provide services to Diamondback Energy and third party customers under primarily long-term, fixed-fee contracts. For more information, please visit www.rattlermidstream.com. About Diamondback Energy, Inc. Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the federal securities laws. All statements, other than historical facts, that address activities that Rattler assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including specifically the statements regarding expectations of plans, strategies, objectives and anticipated financial and operating results of Rattler, including Rattler's capital expenditure levels, asset sales and other guidance discussed above. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Rattler. Information concerning these risks and other factors can be found in Rattler’s filings with the Securities and Exchange Commission (“SEC”), including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov. Rattler undertakes no obligation to update or revise any forward-looking statement. Rattler Midstream LPConsolidated Balance Sheets(unaudited, in thousands) March 31, December 31, 2021 2020Assets Current assets: Cash$9,760 $23,927 Accounts receivable—related party46,238 57,447 Accounts receivable—third party, net7,060 5,658 Sourced water inventory9,738 10,108 Other current assets948 1,127 Total current assets73,744 98,267 Property, plant and equipment: Land85,826 85,826 Property, plant and equipment1,017,574 1,012,777 Accumulated depreciation, amortization and accretion(110,491) (100,728)Property, plant and equipment, net992,909 997,875 Right of use assets406 574 Equity method investments525,078 532,927 Real estate assets, net96,751 96,687 Intangible lease assets, net4,050 4,262 Deferred tax asset71,397 73,264 Other assets4,463 4,732 Total assets$1,768,798 $1,808,588 Liabilities and Unitholders’ Equity Current liabilities: Accounts payable$524 $139 Accrued liabilities39,428 42,508 Taxes payable217 192 Short-term lease liability406 574 Asset retirement obligations35 35 Total current liabilities40,610 43,448 Long-term debt545,450 569,947 Asset retirement obligations15,621 15,093 Total liabilities601,681 628,488 Commitment and contingencies Unitholders’ equity: General partner—Diamondback879 899 Common units—public (41,277,589 units issued and outstanding as of March 31, 2021 and 42,356,637 units issued and outstanding as of December 31, 2020)374,432 385,189 Class B units—Diamondback (107,815,152 units issued and outstanding as of March 31, 2021 and as of December 31, 2020)879 899 Accumulated other comprehensive income (loss)(30) (123)Total Rattler Midstream LP unitholders’ equity376,160 386,864 Non-controlling interest791,060 793,638 Non-controlling interest in accumulated other comprehensive income (loss)(103) (402)Total equity1,167,117 1,180,100 Total liabilities and unitholders’ equity$1,768,798 $1,808,588 Rattler Midstream LPConsolidated Statements of Operations(unaudited, in thousands, except per unit data) Three Months Ended March 31, 2021 2020Revenues: Revenues—related party$87,078 $116,583 Revenues—third party8,121 9,100 Other income—related party2,540 1,518 Other income—third party1,069 2,194 Total revenues98,808 129,395 Costs and expenses: Direct operating expenses32,511 32,874 Cost of goods sold (exclusive of depreciation and amortization)8,811 15,961 Real estate operating expenses517 728 Depreciation, amortization and accretion11,246 12,506 Impairment and abandonments3,371 — General and administrative expenses4,634 4,514 (Gain) loss on disposal of property, plant and equipment6 1,538 Total costs and expenses61,096 68,121 Income (loss) from operations37,712 61,274 Other income (expense): Interest income (expense), net(7,310) (2,621)Income (loss) from equity method investments(2,823) (245)Total other income (expense), net(10,133) (2,866)Net income (loss) before income taxes27,579 58,408 Provision for (benefit from) income taxes1,671 3,820 Net income (loss)25,908 54,588 Less: Net income (loss) attributable to non-controlling interest19,893 41,557 Net income (loss) attributable to Rattler Midstream LP$6,015 $13,031 Net income (loss) attributable to limited partners per common unit: Basic$0.13 $0.28 Diluted$0.13 $0.28 Weighted average number of limited partner common units outstanding: Basic41,742 43,700 Diluted41,742 43,700 Rattler Midstream LPConsolidated Statements of Cash Flows(unaudited, in thousands) Three Months Ended March 31, 2021 2020Cash flows from operating activities: Net income (loss)$25,908 $54,588 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for deferred income taxes1,671 3,820 Depreciation, amortization and accretion11,246 12,506 (Gain) loss on disposal of property, plant and equipment6 1,538 Impairment and abandonments3,371 — Unit-based compensation expense2,332 2,219 (Income) loss from equity method investments2,823 245 Other503 — Changes in operating assets and liabilities: Accounts receivable—related party11,209 31,674 Accounts payable, accrued liabilities and taxes payable(6,092) (8,540)Other(309) (63)Net cash provided by (used in) operating activities52,668 97,987 Cash flows from investing activities: Additions to property, plant and equipment(5,860) (52,046)Contributions to equity method investments(3,663) (32,563)Distributions from equity method investments9,107 9,761 Proceeds from the sale of fixed assets— 42 Net cash provided by (used in) investing activities(416) (74,806)Cash flows from financing activities: Proceeds from borrowings from credit facility12,000 27,000 Payments on credit facility(37,000) — Repurchased units as part of unit buyback(11,114) — Distribution to public(8,263) (12,673)Distribution to Diamondback(21,583) (31,286)Other(459) (672)Net cash provided by (used in) financing activities(66,419) (17,631)Net increase (decrease) in cash(14,167) 5,550 Cash at beginning of period23,927 10,633 Cash at end of period$9,760 $16,183 Rattler Midstream LPPipeline Infrastructure Assets(unaudited) As of March 31, 2021(miles)(a)Delaware Basin Midland Basin Permian TotalCrude oil108 46 154 Natural gas157 — 157 Produced water274 250 524 Sourced water27 74 101 Total566 370 936 (a) Does not include any assets of the EPIC, Gray Oak, Wink to Webster, Amarillo Rattler or OMOG joint ventures. Rattler Midstream LPCapacity/Capability(unaudited) As of March 31, 2021(capacity/capability)(a)Delaware Basin Midland Basin Permian Total Utilization Crude oil gathering (Bbl/d)210,000 65,000 275,000 31%Natural gas compression (Mcf/d)151,000 — 151,000 62%Natural gas gathering (Mcf/d)180,000 — 180,000 53%Produced water gathering and disposal (Bbl/d)1,330,000 1,805,000 3,135,000 24%Sourced water gathering (Bbl/d)120,000 455,000 575,000 47% (a) Does not include any assets of the EPIC, Gray Oak, Wink to Webster, Amarillo Rattler or OMOG joint ventures. Rattler Midstream LPThroughput(unaudited) Three Months Ended March 31,(throughput)(a)2021 2020Crude oil gathering (Bbl/d)85,210 97,293 Natural gas gathering (MMBtu/d)130,437 117,761 Produced water gathering and disposal (Bbl/d)765,588 941,628 Sourced water gathering (Bbl/d)267,834 446,713 (a) Does not include any volumes of the EPIC, Gray Oak, Wink to Webster, Amarillo Rattler or OMOG joint ventures. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a supplemental non-GAAP financial measure used by management and external users of its financial statements, such as industry analysts, investors, lenders and rating agencies. Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company's operating performance and compare the results of its operations period to period without regard to its financing methods or capital structure. The Company defines Adjusted EBITDA as net income (loss) attributable to Rattler Midstream LP plus net income (loss) attributable to non-controlling interest ("net income (loss)") before income taxes, interest expense (net of amount capitalized), depreciation, amortization and accretion on assets and liabilities of Rattler Midstream Operating LLC, its proportional depreciation and interest expense related to equity method investments, its proportional impairments and abandonments related to equity method investments, non-cash unit-based compensation expense, impairment and abandonments, (gain) loss on disposal of property, plant and equipment, provision for income taxes and other. The GAAP measure most directly comparable to Adjusted EBITDA is net income (loss). However, Adjusted EBITDA should not be considered an alternative to net income (loss) or any other measure of financial performance or liquidity presented in accordance with generally accepted accounting principles in the United States ("GAAP"). Adjusted EBITDA excludes some, but not all, items that affect net income (loss), and these measures may vary from those of other companies. As a result, Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies. The Company does not provide guidance on the reconciling items between forecasted net income (loss) and forecasted Adjusted EBITDA due to the uncertainty regarding timing and estimates of these items. Rattler provides a range for the forecasts of net income (loss) and Adjusted EBITDA to allow for the variability in timing and uncertainty of estimates of reconciling items between forecasted net income (loss) and forecasted Adjusted EBITDA. Therefore, the Company cannot reconcile forecasted net income (loss) to forecasted Adjusted EBITDA without unreasonable effort. The following table presents a reconciliation of net income (loss), the most directly comparable GAAP financial measure, to Adjusted EBITDA for each of the periods indicated: Rattler Midstream LPAdjusted EBITDA(unaudited, in thousands) Three Months Ended March 31, 2021 2020Reconciliation of Net Income (Loss) to Adjusted EBITDA: Net income (loss) attributable to Rattler Midstream LP$6,015 $13,031 Net income (loss) attributable to non-controlling interest19,893 41,557 Net income (loss)25,908 54,588 Interest expense, net of amount capitalized7,310 2,621 Depreciation, amortization and accretion11,246 12,506 Depreciation and interest expense related to equity method investments10,525 3,766 Impairments and abandonments related to equity method investments2,933 — Non-cash unit-based compensation expense2,332 2,219 Impairment and abandonments3,371 — (Gain) loss on disposal of property, plant and equipment6 1,538 Provision for income taxes1,671 3,820 Other12 (78)Adjusted EBITDA65,314 80,980 Less: Adjusted EBITDA attributable to non-controlling interest47,135 57,624 Adjusted EBITDA attributable to Rattler Midstream LP$18,179 $23,356 Adjusted net income (loss) is a supplemental non-GAAP financial measure equal to net income (loss) adjusted for impairments and abandonments related to equity method investments and related income tax adjustments. Management believes adjusted net income (loss) is useful because the measure provides useful information to analysts and investors for analysis of its operating results on a consistent, comparable basis from period to period. The Company's computation of adjusted net income (loss) may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. The following table presents a reconciliation of net income (loss) attributable to Rattler Midstream LP to adjusted net income (loss) for each of the periods indicated: Rattler Midstream LPAdjusted Net Income (Loss)(unaudited, in thousands, except per unit data) Three Months Ended March 31, 2021 Amounts Amounts PerDilutive ShareReconciliation of Net Income (Loss) to Adjusted Net Income: Net income (loss) attributable to Rattler Midstream LP$6,015 $0.13 Net income (loss) attributable to non-controlling interest19,893 0.48 Net income (loss)25,908 0.61 Impairments and abandonments related to equity method investments2,933 0.07 Impairments and abandonments3,371 0.08 Adjusted income (loss) excluding above items32,212 0.76 Income tax adjustment for above items(414) (0.01)Adjusted Net Income (Loss)31,798 0.75 Less: Adjusted net income (loss) attributable to non-controlling interest24,443 0.59 Adjusted net income (loss) attributable to Rattler Midstream LP$7,355 $0.16 Weighted average common units outstanding:Basic 41,742 Diluted 41,742 Operating cash flow before working capital changes, which is a supplemental non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The GAAP financial measure most directly comparable to operating cash flow before working capital changes is net cash provided by operating activities. Management believes operating cash flow before working capital changes is an accepted measure which reflects cash flow from operating activities, additions to property, plant and equipment and net investments in its equity method investments across periods on a consistent basis. The Company also uses this measure because adjusted operating cash flow relates to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure. Free Cash Flow, which is a supplemental non-GAAP financial measure, is operating cash flow before working capital changes less net cash provided by (used in) investing activities. The GAAP financial measure most directly comparable to Free Cash Flow is net cash provided by operating activities. Management believes that Free Cash Flow is useful to investors as it provides the amount of cash available for reducing debt, investing in additional capital projects or paying dividends. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company's computation of operating cash flow before working capital changes and Free Cash Flow may not be comparable to other similarly titled measures of other companies. The following tables present a reconciliation of net cash provided by operating activities to operating cash flow before working capital changes and to Free Cash Flow: Rattler Midstream LPOperating Cash Flow(unaudited, in thousands) Three Months Ended March 31, 2021 2020Net cash provided by operating activities$52,668 $97,987 Less: Changes in cash due to changes in operating assets and liabilities: Accounts receivable—related party11,209 31,674 Accounts payable, accrued liabilities and taxes payable(6,092) (8,540)Other(309) (63)Total working capital changes4,808 23,071 Operating cash flow before working capital changes$47,860 $74,916 Rattler Midstream LPFree Cash Flow(unaudited, in thousands) Three Months Ended March 31, 2021 2020Operating cash flow before working capital changes$47,860 $74,916 Additions to property, plant and equipment(5,860) (52,046)Contributions to equity method investments(3,663) (32,563)Distributions from equity method investments9,107 9,761 Other— 42 Net cash provided by (used in) investing activities(416) (74,806)Free Cash Flow$47,444 $110 Investor Contact:Adam Lawlis+1 432.221.7467IR@rattlermidstream.com Source: Rattler Midstream LP; Diamondback Energy, Inc.

  • ACCESSWIRE

    Diamondback Energy, Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / May 4, 2021 / Diamondback Energy, Inc. (NASDAQ:FANG) will be discussing their earnings results in their 2021 First Quarter Earnings call to be held on May 4, 2021 at 9:00 AM Eastern Time.

  • Diamondback Energy, Inc. Announces First Quarter 2021 Financial and Operating Results
    GlobeNewswire

    Diamondback Energy, Inc. Announces First Quarter 2021 Financial and Operating Results

    MIDLAND, Texas, May 03, 2021 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the first quarter ended March 31, 2021. FIRST QUARTER 2021 HIGHLIGHTS Previously announced Q1 2021 average production of 184.2 MBO/d (307.4 MBOE/d)Generated Q1 2021 cash flow from operating activities of $624 million. Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $627 millionQ1 2021 cash capital expenditures of $296 million; Q1 2021 activity-based capital expenditures incurred of approximately $267 millionGenerated Q1 2021 Free Cash Flow (as defined and reconciled below) of $331 millionQ1 2021 cash operating costs of $8.06 per BOE; including cash general and administrative ("G&A") expenses of $0.54 per BOE and lease operating expenses ("LOE") of $3.69 per BOEClosed the previously announced acquisition of assets from Guidon Operating LLC ("Guidon") and the acquisition of QEP Resources, Inc. ("QEP") in an all stock merger, adding an aggregate of over 80,000 net acres to our asset base in the Permian Basin and generating significant synergiesSigned definitive agreements in the second quarter of 2021 to divest Williston Basin assets acquired in the merger with QEP and non-core Permian Basin assets for total consideration of $832 million, subject to certain closing adjustments; assets being sold have estimated full year 2021 net production of approximately 16 MBO/d (28 MBOE/d)Flared 0.75% (1.0% including QEP) of gross natural gas production in the first quarter of 2021Received $103 million federal net operating loss carryback and alternative minimum tax credit refund in January 2021, which included $3 million of interest incomeInitiating Q2 2021 production guidance of 232.0 - 236.0 MBO/d (387.0 - 394.0 MBOE/d) and cash capex guidance of $350 - $400 million “Diamondback started 2021 with a successful first quarter, effectively overcoming the production obstacles presented by Winter Storm Uri while keeping our capital and operating costs near all-time lows. As a result, we generated over $330 million of Free Cash Flow in the first quarter. At current strip pricing, and pro forma for our asset sales announced today, we expect to continue generating significant Free Cash Flow in 2021. This Free Cash Flow, coupled with the cash proceeds from the successful execution of our three non-core asset sales announced today, will allow us to accelerate our debt reduction program, further strengthening our balance sheet," stated Travis Stice, Chief Executive Officer of Diamondback. Mr. Stice continued, “We continue to be pleased with the seamless integration of both the Guidon and QEP assets, and we are achieving our synergy targets ahead of schedule and in excess of those highlighted during the acquisition announcement. This progress only adds to our 'exploit and return' strategy of spending maintenance capital to hold oil production flat, while using Free Cash Flow to reduce debt and return cash to stockholders." PENDING WILLISTON BASIN ASSET DIVESTITURE Divesting approximately 95,000 net acres in the Williston Basin; a complete Williston exit for DiamondbackGross purchase price of $745 million, subject to certain closing adjustments; net proceeds expected to be applied towards debt reductionAssets being sold have estimated net production of approximately 15 MBO/d (25 MBOE/d) for the full year 2021, including approximately 12 MBO/d (19 MBOE/d) of estimated net production attributable to the Williston Basin assets acquired in the merger with QEP from the March 17, 2021 closing date through year end 2021Transaction expected to close in the third quarter of 2021, subject to continued diligence and closing conditions Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Diamondback for the Williston Basin sale, with Latham & Watkins LLP serving as legal advisor to Diamondback. PENDING PERMIAN BASIN NON-CORE ASSET DIVESTITURES Divesting approximately 7,000 net acres of non-core Southern Midland Basin acreage in Upton county and approximately 1,300 net acres of non-core, non-operated Delaware Basin assets in Lea county, New MexicoCombined gross purchase price of $87 million, subject to certain closing adjustments; net proceeds expected to be applied towards debt reductionAssets being sold have estimated net production of approximately 900 BO/d (2,650 BOE/d) for the full year 2021 from 140 producing wellsBoth transactions expected to close in the second quarter of 2021, subject to continued diligence and closing conditions Tudor, Pickering, & Holt Co. is acting as exclusive financial advisor to Diamondback for the Permian Basin asset sales. OPERATIONS UPDATE The tables below provide a summary of operating activity for the first quarter of 2021. All activity detail assumes wells are counted only if they completed drilling or completion activities after the closing date of the Guidon or QEP transaction, as applicable. Total Activity (Gross Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin41 42 Delaware Basin8 25 Total49 67 Total Activity (Net Operated): Number of Wells Drilled Number of Wells CompletedMidland Basin40 37 Delaware Basin7 23 Total47 60 During the first quarter of 2021, Diamondback drilled 41 gross horizontal wells in the Midland Basin and eight gross horizontal wells in the Delaware Basin. The Company turned 42 operated horizontal wells to production in the Midland Basin and 25 operated horizontal wells to production in the Delaware Basin. The average lateral length for the wells completed during the first quarter was 10,331 feet. Operated completions during the first quarter consisted of 27 Wolfcamp A wells, 10 Lower Spraberry wells, eight Wolfcamp B wells, seven Middle Spraberry wells, six Second Bone Spring wells, four Jo Mill wells, three Third Bone Spring wells, one Barnett well and one Dean well. FINANCIAL UPDATE Diamondback's first quarter 2021 net income was $220 million, or $1.33 per diluted share. Adjusted net income (a non-GAAP financial measure as defined and reconciled below) was $379 million, or $2.30 per diluted share. First quarter 2021 Consolidated Adjusted EBITDA (as defined and reconciled below) was $845 million. Adjusted EBITDA net of non-controlling interest was $836 million. As previously announced, first quarter 2021 average unhedged realized prices were $56.94 per barrel of oil, $3.05 per Mcf of natural gas and $22.94 per barrel of natural gas liquids, resulting in a total equivalent unhedged price of $42.36 per BOE. Diamondback's cash operating costs for the first quarter of 2021 were $8.06 per BOE, including LOE of $3.69 per BOE, cash G&A expenses of $0.54 per BOE, production and ad valorem taxes of $2.71 per BOE and gathering and transportation expenses of $1.12 per BOE. As of March 31, 2021, Diamondback had $100 million in standalone cash and $52 million of borrowings outstanding under its revolving credit facility, with approximately $1.9 billion available for future borrowing under the facility and $2 billion of total liquidity. During the first quarter of 2021, Diamondback spent $273 million on drilling and completion, $7 million on midstream, $8 million on infrastructure and $8 million on non-operated properties, for total capital cash expenditures of $296 million. DIVIDEND DECLARATION Diamondback announced today that the Company's Board of Directors declared a cash dividend of $0.40 per common share for the first quarter of 2021 payable on May 20, 2021, to stockholders of record at the close of business on May 13, 2021. Future dividends remain subject to review and approval at the discretion of the Company's Board of Directors. FULL YEAR 2021 GUIDANCE Below is Diamondback's guidance for the full year 2021, which includes the initiation of second quarter production and capital guidance, and is pro forma for the pending asset divestitures announced today. 2021 Guidance2021 Guidance Diamondback Energy, Inc.Viper Energy Partners LP Total net production – MBOE/d(a)350.0 - 360.025.00 - 27.00Oil production – MBO/d(a)212.0 - 216.015.00 - 16.25Q2 2021 oil production - MBO/d (total - MBOE/d)(a)232.0 - 236.0 (387.0 - 394.0) Unit costs ($/BOE) Lease operating expenses, including workovers$3.90 - $4.30 G&A Cash G&A$0.45 - $0.55$0.60 - $0.80Non-cash equity-based compensation$0.30 - $0.40$0.10 - $0.25DD&A$8.75 - $10.75$9.50 - $10.50Interest expense (net of interest income)$1.50 - $1.70$3.00 - $3.50Gathering and transportation$1.25 - $1.35 Production and ad valorem taxes (% of revenue)(b)7%7%Corporate tax rate (% of pre-tax income)23% Gross horizontal wells drilled (net)200 - 215 (178 - 192) Gross horizontal wells completed (net)275 - 285 (250 - 259) Average lateral length (Ft.)~10,300' Midland Basin well costs per lateral foot$520 - $580 Delaware Basin well costs per lateral foot$720 - $800 Midland Basin net lateral feet (%)~75% Delaware Basin net lateral feet (%)~25% Capital Budget ($ - million) Operated horizontal drilling and completion$1,300 - $1,400 Non-operated capital and capital workovers$160 - $180 Midstream (ex. long-haul pipeline investments)$60 - $80 Infrastructure and Environmental$80 - $90 2021 Capital Spend $1,600 - $1,750 Q2 2021 cash capex$350 - $400 (a) Second quarter 2021 Williston Basin production is estimated to be approximately 16 MBO/d (26 MBOE/d).(b) Includes production taxes of 4.6% for crude oil and 7.5% for natural gas and NGLs and ad valorem taxes. CONFERENCE CALL Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the first quarter of 2021 on Tuesday, May 4, 2021 at 8:00 a.m. CT. Participants should call (877) 440-7573 (United States/Canada) or (253) 237-1144 (International) and use the confirmation code 3841709. A telephonic replay will be available from 11:00 a.m. CT on Tuesday, May 4, 2021 through Tuesday, May 11, 2021 at 11:00 a.m. CT. To access the replay, call (855) 859-2056 (United States/Canada) or (404) 537-3406 (International) and enter confirmation code 3841709. A live broadcast of the earnings conference call will also be available via the internet at www.diamondbackenergy.com under the “Investor Relations” section of the site. A replay will also be available on the website following the call. About Diamondback Energy, Inc. Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com. Forward-Looking Statements This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, that address activities that Diamondback assumes, plans, expects, believes, intends or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. The forward-looking statements are based on management’s current beliefs, based on currently available information, as to the outcome and timing of future events, including the current adverse industry and macroeconomic conditions, commodity price volatility, production levels, the impact of the recent presidential and congressional elections on energy and environmental policies and regulations, any other potential regulatory actions (including those that may impose production limits in the Permian Basin), the impact and duration of the ongoing COVID-19 pandemic, acquisitions and sales of assets, including the recently completed Guidon and QEP acquisitions, and the anticipated synergies and costs savings from those transactions, as well as the pending sale of assets, in each case as discussed in this news release, future dividends, production, drilling and capital expenditure plans, severe weather conditions (including the impact of the recent severe winter storms on production volumes), impact of impairment charges and effects of hedging arrangements. These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Information concerning these risks and other factors can be found in Diamondback’s filings with the Securities and Exchange Commission ("SEC"), including its reports on Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov. Diamondback undertakes no obligation to update or revise any forward-looking statement. Diamondback Energy, Inc.Consolidated Balance Sheets(unaudited, in millions, except share amounts) March 31, December 31, 2021 2020Assets Current assets: Cash and cash equivalents$121 $104 Restricted cash19 4 Accounts receivable: Joint interest and other, net68 56 Oil and natural gas sales, net531 281 Inventories52 33 Derivative instruments— 1 Income tax receivable33 100 Prepaid expenses and other current assets27 23 Total current assets851 602 Property and equipment: Oil and natural gas properties, full cost method of accounting ($8,430 million and $7,493 million excluded from amortization at March 31, 2021 and December 31, 2020, respectively)31,765 27,377 Midstream assets1,018 1,013 Other property, equipment and land152 138 Accumulated depletion, depreciation, amortization and impairment(12,583) (12,314) Property and equipment, net20,352 16,214 Funds held in escrow34 51 Equity method investments525 533 Derivative instruments4 — Deferred income taxes, net32 73 Investment in real estate, net101 101 Other assets97 45 Total assets$21,996 $17,619 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable - trade$71 $71 Accrued capital expenditures233 186 Current maturities of long-term debt191 191 Other accrued liabilities416 302 Revenues and royalties payable353 237 Derivative instruments604 249 Total current liabilities1,868 1,236 Long-term debt7,465 5,624 Derivative instruments8 57 Asset retirement obligations190 108 Deferred income taxes790 783 Other long-term liabilities23 7 Total liabilities10,344 7,815 Commitments and contingencies Stockholders’ equity: Common stock, $0.01 par value; 200,000,000 shares authorized; 180,984,014 and 158,088,182 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively2 2 Additional paid-in capital14,384 12,656 Retained earnings (accumulated deficit)(3,713) (3,864) Total Diamondback Energy, Inc. stockholders’ equity10,673 8,794 Non-controlling interest979 1,010 Total equity11,652 9,804 Total liabilities and equity$21,996 $17,619 Diamondback Energy, Inc.Consolidated Statements of Operations(unaudited, $ in millions except per share data, shares in thousands) Three Months Ended March 31, 2021 2020Revenues: Oil, natural gas and natural gas liquid sales$1,172 $883 Midstream services11 14 Other operating income1 2 Total revenues1,184 899 Costs and expenses: Lease operating expenses102 127 Production and ad valorem taxes75 71 Gathering and transportation31 36 Midstream services expense28 23 Depreciation, depletion, amortization and accretion273 409 Impairment of oil and natural gas properties— 1,009 Impairment of midstream assets3 — General and administrative expenses25 24 Merger and integration expense75 — Other operating expense1 2 Total costs and expenses613 1,701 Income (loss) from operations571 (802) Other income (expense): Interest expense, net(56) (48) Other income (expense), net1 1 Gain (loss) on derivative instruments, net(164) 542 Gain (loss) on revaluation of investment— (10) Loss on extinguishment of debt(61) — Income (loss) from equity investments(3) — Total other income (expense), net(283) 485 Income (loss) before income taxes288 (317) Provision for (benefit from) income taxes65 83 Net income (loss) 223 (400) Net income (loss) attributable to non-controlling interest3 (128) Net income (loss) attributable to Diamondback Energy, Inc.$220 $(272) Earnings (loss) per common share: Basic$1.34 $(1.72) Diluted$1.33 $(1.72) Weighted average common shares outstanding: Basic 164,169 158,291 Diluted 164,926 158,494 Dividends declared per share$0.40 $0.375 Diamondback Energy, Inc.Consolidated Statements of Cash Flows(unaudited, in millions) Three Months Ended March 31, 2021 2020 Cash flows from operating activities: Net income (loss)$223 $(400) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Provision for (benefit from) deferred income taxes64 145 Impairment of oil and natural gas properties— 1,009 Impairment of midstream assets3 — Depreciation, depletion, amortization and accretion273 409 Loss on extinguishment of debt61 — (Gain) loss on derivative instruments, net164 (542) Cash received (paid) on settlement of derivative instruments(178) 87 Equity-based compensation expense10 9 Other7 12 Changes in operating assets and liabilities: Accounts receivable(137) 175 Income tax receivable100 (62) Prepaid expenses and other22 (4) Accounts payable and accrued liabilities(26) (35) Revenues and royalties payable50 14 Other(12) 32 Net cash provided by (used in) operating activities624 849 Cash flows from investing activities: Drilling, completions and non-operated additions to oil and natural gas properties(281) (690) Infrastructure additions to oil and natural gas properties(8) (56) Additions to midstream assets(7) (44) Purchase of business and assets, net(342) (40) Acquisitions of mineral interests— (65) Funds held in escrow50 — Contributions to equity method investments(4) (33) Other5 5 Net cash provided by (used in) investing activities(587) (923) Cash flows from financing activities: Proceeds from borrowings under credit facilities432 430 Repayments under credit facilities(455) (140) Proceeds from senior notes2,200 — Repayment of senior notes(1,916) — Premium on extinguishment of debt(166) — Proceeds from joint venture(4) 16 Debt issuance costs(24) — Repurchased shares under buyback program— (98) Repurchased units under buyback program(24) — Dividends to stockholders(68) (59) Distributions to non-controlling interest(17) (43) Financing portion of net cash received (paid) for derivative instruments76 — Other(5) (5) Net cash provided by (used in) financing activities29 101 Net increase (decrease) in cash and cash equivalents66 27 Cash, cash equivalents and restricted cash at beginning of period108 128 Cash, cash equivalents and restricted cash at end of period$174 $155 Supplemental disclosure of non-cash transactions: Common stock issued for business combinations$1,727 $— Diamondback Energy, Inc.Selected Operating Data(unaudited) Three Months Ended March 31, 2021 2020Production Data: Oil (MBbls)16,578 18,325 Natural gas (MMcf)34,109 32,120 Natural gas liquids (MBbls)5,405 5,538 Combined volumes (MBOE)(1)27,668 29,216 Daily oil volumes (BO/d)(2)184,200 201,369 Daily combined volumes (BOE/d)(2) 307,422 321,057 Average Prices: Oil ($ per Bbl)$56.94 $45.10 Natural gas ($ per Mcf)$3.05 $0.14 Natural gas liquids ($ per Bbl)$22.94 $9.45 Combined ($ per BOE)$42.36 $30.23 Oil, hedged ($ per Bbl)(3) $46.81 $49.32 Natural gas, hedged ($ per Mcf)(3)$2.64 $0.42 Natural gas liquids, hedged ($ per Bbl)(3)$22.76 $9.45 Average price, hedged ($ per BOE)(3) $35.75 $33.19 Average Costs per BOE: Lease operating expenses$3.69 $4.35 Production and ad valorem taxes2.71 2.43 Gathering and transportation expense1.12 1.23 General and administrative - cash component0.54 0.51 Total operating expense - cash$8.06 $8.52 General and administrative - non-cash component$0.36 $0.31 Depletion$9.29 $13.42 Interest expense, net$2.02 $1.64 (1) Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.(2) The volumes presented are based on actual results and are not calculated using the rounded numbers in the table above.(3) Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices. Our calculation of such effects includes realized gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. NON-GAAP FINANCIAL MEASURES Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest ("net income (loss)") before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, impairment and abandonments related to equity method investments, (gain) loss on revaluation of investment, loss on extinguishment of debt, impairment of oil and natural gas properties, impairment of midstream assets, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expense, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States’ generally accepted accounting principles ("GAAP"). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) in arriving at Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA: Diamondback Energy, Inc.Reconciliation of Net Income (Loss) to Adjusted EBITDA(unaudited, in millions) Three Months Ended March 31, 2021 2020Net income (loss) attributable to Diamondback Energy, Inc.$220 $(272) Net income (loss) attributable to non-controlling interest3 (128) Net income (loss)223 (400) Non-cash (gain) loss on derivative instruments, net62 (455) Interest expense, net56 48 Depreciation, depletion, amortization and accretion273 405 Depreciation and interest expense related to equity method investments11 4 Impairment and abandonments related to equity method investments3 — (Gain) loss on revaluation of investment— 10 Loss on extinguishment of debt61 — Impairment of oil and natural gas properties— 1,009 Impairment of midstream assets3 — Non-cash equity-based compensation expense14 13 Capitalized equity-based compensation expense(4) (4) Merger and integration expense75 — Other non-cash transactions3 — Provision for (benefit from) income taxes65 83 Consolidated Adjusted EBITDA845 713 Less: Adjustment for non-controlling interest9 43 Adjusted EBITDA attributable to Diamondback Energy, Inc.$836 $670 Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest ("net income (loss)") adjusted for non-cash (gain) loss on derivative instruments, net, impairment and abandonments related to equity method investments, loss on extinguishment of debt, impairment of midstream assets, merger and integration expense and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. The following table presents a reconciliation of adjusted net income to net income (loss) attributable to Diamondback Energy, Inc.: Diamondback Energy, Inc.Adjusted Net Income(unaudited, in millions, except per share data) Three Months Ended March 31, 2021 Amounts Amounts Per Diluted ShareNet income (loss) attributable to Diamondback Energy, Inc.$220 $1.33 Net income (loss) attributable to non-controlling interest3 0.02 Net income (loss) 223 1.35 Non-cash (gain) loss on derivative instruments, net62 0.38 Impairment and abandonments related to equity method investments3 0.02 Loss on extinguishment of debt61 0.37 Impairment of midstream assets3 0.02 Merger and integration expense75 0.45 Adjusted net income excluding above items427 2.59 Income tax adjustment for above items(46) (0.28) Adjusted net income(1)381 2.31 Less: Adjusted net income attributable to non-controlling interest(1)2 0.01 Adjusted net income attributable to Diamondback Energy, Inc.(1)$379 $2.30 Weighted average common shares outstanding: Basic 164,169 Diluted 164,926 (1) May be calculated using diluted shares considered anti-dilutive under GAAP. Operating cash flow before working capital changes, which is a non-GAAP financial measure representing net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is an accepted measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because adjusted operating cash flow relates to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure. Additionally, the Company provides Free Cash Flow, which is a non-GAAP financial measure. Free Cash Flow is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides a measure to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company's computation of operating cash flow before working capital changes and Free Cash Flow may not be comparable to other similarly titled measures of other companies. The following tables present a reconciliation of net cash provided by operating activities to operating cash flow before working capital changes and to Free Cash Flow: Diamondback Energy, Inc.Operating Cash Flow(unaudited, in millions) Three Months Ended March 31, 2021 2020Net cash provided by operating activities$624 $849 Less: Changes in cash due to changes in operating assets and liabilities: Accounts receivable(137) 175 Income tax receivable100 (62) Prepaid expenses and other22 (4) Accounts payable and accrued liabilities(26) (35) Revenues and royalties payable50 14 Other(12) 32 Total working capital changes(3) 120 Operating cash flow before working capital changes$627 $729 Diamondback Energy, Inc.Free Cash Flow(unaudited, in millions) Three Months Ended March 31, 2021 2020Operating cash flow before working capital changes$627 $729 Drilling, completions and non-operated additions to oil and natural gas properties(281) (690) Infrastructure additions to oil and natural gas properties(8) (56) Additions to midstream assets(7) (44) Total Cash CAPEX(296) (790) Free Cash Flow$331 $(61) RECONCILIATION OF TOTAL DEBT TO NET DEBT The Company defines net debt as total debt less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company's outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company's leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt. March 31, 2021 Net Q1 Borrowings/(Repayments) December 31, 2020 September 30, 2021 (in millions)Diamondback Energy, Inc.(a)(b)$6,623 $1,910 $4,713 $4,697 Viper Energy Partners LP(b)537 (27) 564 607 Rattler Midstream LP(b)554 (25) 579 585 Total debt7,714 $1,858 5,856 5,889 Cash and cash equivalents(121) (104) (92) Net debt$7,593 $5,752 $5,797 (a) Includes $191 million of debt which matures on September 1, 2021.(b) Excludes debt issuance costs, discounts and premiums. DERIVATIVES As of April 30, 2021 the Company has a total of 141.7 thousand barrels of crude oil per day protected for the remainder of 2021, with 100% of those hedges having unlimited downside protection as a swap, put or collar. These hedge positions are consolidated to include hedges in place at Viper Energy Partners LP (“Viper”). As of April 30, 2021, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper. 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 and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed. Crude Oil (Bbls/day, $/Bbl) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022Swaps - WTI (Cushing) 43,341 38,348 30,674 1,000 1,000 — —$44.60 $42.82 $42.36 $45.00 $45.00 — —Swaps - WTI (Magellan East Houston) 5,000 5,000 5,000 — — — —$37.78 $37.78 $37.78 — — — —Swaps - Crude Brent Oil(1) 5,000 5,000 5,000 — — — —$41.62 $41.62 $41.62 — — — —Costless Collars - WTI (Cushing) 20,670 17,685 26,663 12,000 6,000 — —Long Put Price ($/Bbl)$35.78 $35.27 $38.69 $45.00 $45.00 — —Ceiling Price ($/Bbl)$47.08 $46.50 $53.80 $68.00 $68.75 — —Costless Collars - WTI (Magellan East Houston) — 5,000 5,000 16,000 14,000 — —Long Put Price ($/Bbl) — $45.00 $45.00 $45.00 $45.00 — —Ceiling Price ($/Bbl) — $57.90 $78.75 $69.67 $69.98 — —Costless Collars - Crude Brent Oil 82,000 62,000 64,000 44,000 19,000 — —Long Put Price ($/Bbl)$39.40 $39.61 $39.78 $45.00 $45.00 — —Ceiling Price ($/Bbl)$48.84 $48.42 $48.90 $69.19 $74.94 — —Short Puts - Crude Brent Oil — — — 5,000 5,000 5,000 5,000 — — — $35.00 $35.00 $35.00 $35.00Basis Swaps - WTI (Midland) 39,000 34,000 34,000 10,000 10,000 10,000 10,000$0.83 $0.91 $0.91 $0.84 $0.84 $0.84 $0.84Roll Swaps - WTI 46,000 34,000 34,000 — — — —$0.16 $0.24 $0.24 — — — — Natural Gas (Mmbtu/day, $/Mmbtu) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022Natural Gas Swaps - Henry Hub 245,000 245,000 245,000 — — — —$2.65 $2.65 $2.65 — — — —Natural Gas Swaps - Waha Hub 50,000 50,000 50,000 — — — —$1.92 $1.92 $1.92 — — — —Natural Gas Basis Swaps - Waha Hub 250,000 250,000 250,000 210,000 210,000 210,000 210,000$-0.66 $-0.66 $-0.66 $-0.34 $-0.34 $-0.34 $-0.34 Natural Gas Liquids (Bbls/day, $/Bbl) Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022Natural Gas Liquids Swaps - Mont Belvieu Propane 2,000 2,000 2,000 — — — —$29.40 $29.40 $29.40 — — — — (1) Includes 5,000 BO/d of swaps in the first half of 2021 whereby the counterparty has the right to extend the hedge into the second half of 2021 at an average price of $51/Bbl. Investor Contact:Adam Lawlis+1 432.221.7467alawlis@diamondbackenergy.com