Diamondback Energy, Inc. (FANG) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Diamondback Energy, Inc. surfaced in its latest filing.

• WTI prices ranged from $55.27 to $93.68 per Bbl and Henry Hub natural gas prices ranged from $1.58 to $5.29 per MMBtu from the beginning of 2023 through the end of 2025.2023-2025
• Following the closing of the Endeavor Acquisition, Endeavor equityholders have significant influence over the business.
• Total cash capital expenditures in 2025 were approximately $3.5 billion.2025
• The 2026 cash capital budget is estimated to be approximately $3.60 billion to $3.90 billion, representing an increase at the midpoint of 6% from 2025 capital expenditures.2026
• Approximately 30% of total estimated proved reserves as of December 31, 2025, were proved undeveloped reserves.2025-12-31
• As of December 31, 2025, there were approximately 8,854 gross (6,541 net) identified economic potential horizontal drilling locations at an assumed WTI price of $50.00 per Bbl.2025-12-31
• Only 1,351 of gross identified economic potential horizontal drilling locations were attributed to proved reserves as of December 31, 2025.2025-12-31
• Through December 31, 2025, 6,677 horizontal producing wells have been completed on the company's acreage.2025-12-31
• An impairment on proved oil and natural gas properties of approximately $3.7 billion was recorded for the year ended December 31, 2025.2025-12-31
• As of December 31, 2025, most proved reserves are concentrated in the Wolfberry play in the Midland Basin.2025-12-31
• On January 3, 2025, the Texas Railroad Commission published final amendments to its water protection rules to encourage waste recycling, effective July 1, 2025.2025-01-03
• Starting September 2021, the Texas Railroad Commission curtailed the amount of produced water companies were permitted to inject into some wells near Midland and Odessa in the Permian Basin.2021-09
• The Texas Railroad Commission has indefinitely suspended some permits and expanded restrictions to other areas in the Permian Basin.
• The Texas Railroad Commission adopted rules requiring seismic activity data in permit applications, more frequent monitoring and reporting for certain wells, and allowing modification, suspension or termination of permits if a well causes seismic activity.
• Proposed legislation would eliminate the immediate deduction for intangible drilling and development costs.
• Proposed legislation would repeal the percentage depletion allowance for oil and natural gas properties.
• Proposed legislation would extend the amortization period for certain geological and geophysical expenditures.
• The Inflation Reduction Act enacted a 15% corporate alternative minimum tax on adjusted financial statement income of certain large corporations.
• The OBBB provides for immediate expensing of research or experimental expenses, bonus depreciation for qualified tangible property, deductible intangible drilling costs for purposes of the CAMT, and enhancements to limits on business interest expense deductions.
• The OBBB imposes limits on deductibility of charitable contributions by corporations.
• In July 2025, the board of directors approved an increase in the common stock repurchase program to acquire up to $8.0 billion; through December 31, 2025, approximately $5.3 billion has been repurchased.2025-07
• As of December 31, 2025, the company had an NOL carryforward of approximately $436 million, capital loss carryforwards of approximately $26 million and tax credits of $4 million for U.S. federal income tax purposes, principally consisting of tax attributes acquired from QEP Resources, Inc., Sitio, and Rattler.2025-12-31
• NOLs and other carryforwards acquired from QEP and Rattler are subject to an annual limitation under Sections 382 and 383 due to ownership changes from the acquisition of QEP and the merger with Rattler in 2022.2022
• Carryforwards acquired from Sitio are subject to an annual limitation under Sections 382 and 383 due to an ownership change from Viper’s Sitio Acquisition.