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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2019	Nov. 01, 2019
Cover page.
Document type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-35700
Entity Registrant Name	Diamondback Energy, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	45-4502447
Entity Address, Address Line One	500 West Texas
Entity Address, Address Line Two	Suite 1200
Entity Address, City or Town	Midland,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	432
Local Phone Number	221-7400
Title of 12(b) Security	Common Stock
Trading Symbol	FANG
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		160,444,608
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001539838
Current Fiscal Year End Date	--12-31

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 100	$ 215
Accounts receivable:
Joint interest and other, net	171	96
Oil and natural gas sales	367	296
Inventories	45	37
Derivative instruments	140	231
Prepaid expenses and other	22	50
Total current assets	845	925
Property and equipment:
Oil and natural gas properties, full cost method of accounting ($9,464 million and $9,670 million excluded from amortization at September 30, 2019 and December 31, 2018, respectively)	24,822	22,299
Midstream assets	884	700
Other property, equipment and land	152	147
Accumulated depletion, depreciation, amortization and impairment	(3,815)	(2,774)
Net property and equipment	22,043	20,372
Funds held in escrow	7	0
Equity method investments	225	1
Derivative instruments	58	0
Deferred tax asset	158	97
Investment in real estate, net	111	116
Other assets	106	85
Total assets	23,553	21,596
Current liabilities:
Accounts payable-trade	233	128
Accrued capital expenditures	427	495
Other accrued liabilities	304	253
Revenues and royalties payable	207	143
Derivative instruments	10	0
Total current liabilities	1,181	1,019
Long-term debt	4,761	4,464
Derivative instruments	2	15
Asset retirement obligations	90	136
Deferred income taxes	2,019	1,785
Other long-term liabilities	11	10
Total liabilities	8,064	7,429
Commitments and contingencies (Note 19)
Stockholders’ equity:
Common stock, $0.01 par value, 200,000,000 shares authorized, 161,142,305 issued and outstanding at September 30, 2019; 200,000,000 shares authorized, 164,273,447 issued and outstanding at December 31, 2018	2	2
Additional paid-in capital	12,641	12,936
Retained earnings	1,407	762
Total Diamondback Energy, Inc. stockholders’ equity	14,050	13,700
Non-controlling interest	1,439	467
Total equity	15,489	14,167
Total liabilities and equity	$ 23,553	$ 21,596

Consolidated Balance Sheets (Unaudited) Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Oil and natural gas properties, amortization excluded	$ 9,464	$ 9,670
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Shares authorized (in Shares)	200,000,000	200,000,000
Shares Issued (in Shares)	161,142,305	164,273,447
Shares Outstanding (in Shares)	161,142,305	164,273,447

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Lease bonus	$ 1	$ 1	$ 4	$ 2
Other operating income	2	3	7	7
Total revenues	975	537	2,860	1,543
Costs and expenses:
Lease operating expenses	128	49	364	129
Production and ad valorem taxes	61	33	180	93
Depreciation, depletion and amortization	365	146	1,046	391
General and administrative expenses	19	14	68	45
Asset retirement obligation accretion	1	0	6	1
Other operating expense	1	1	3	2
Total costs and expenses	626	269	1,781	727
Income (loss) from operations	349	268	1,079	816
Other income (expense):
Interest expense, net	(38)	(19)	(133)	(49)
Other income, net	2	2	5	89
Gain (loss) on derivative instruments, net	177	(48)	3	(139)
Gain on revaluation of investment	0	0	4	5
Total other income (expense), net	141	(65)	(121)	(94)
Income (loss) before income taxes	490	203	958	722
Provision for income taxes	102	43	171	83
Net income	388	160	787	639
Net income attributable to non-controlling interest	20	3	60	100
Net income attributable to Diamondback Energy, Inc.	$ 368	$ 157	$ 727	$ 539
Earnings per common share:
Basic (in USD per share)	$ 2.27	$ 1.59	$ 4.44	$ 5.47
Diluted (in USD per share)	$ 2.26	$ 1.59	$ 4.42	$ 5.45
Weighted average common shares outstanding:
Basic (in shares)	162,543	98,638	164,070	98,603
Diluted (in shares)	162,780	98,818	164,466	98,820
Dividends declared per share (in USD per share)	$ 0.1875	$ 0.125	$ 0.5625	$ 0.375
Oil sales
Revenues:
Revenue	$ 882	$ 454	$ 2,572	$ 1,334
Natural gas sales
Revenues:
Revenue	16	14	36	40
Natural gas liquid sales
Revenues:
Revenue	58	57	190	133
Midstream services
Revenues:
Revenue	16	8	51	27
Costs and expenses:
Cost of goods and services sold	26	20	60	49
Gathering and transportation
Costs and expenses:
Cost of goods and services sold	$ 25	$ 6	$ 54	$ 17

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Non-Controlling Interest
Balance at beginning of period at Dec. 31, 2017	$ 5,582	$ 1	$ 5,291	$ (37)	$ 327
Balance at beginning of period (in Shares) at Dec. 31, 2017		98,167,000
Increase (Decrease) in Stockholders' Equity
Unit-based compensation	1				1
Stock-based compensation	9		9
Distribution to non-controlling interest	(19)				(19)
Exercise of stock and unit options and awards of restricted stock	0
Exercise of stock and unit options and awards of restricted stock (in Shares)		443,000
Net income	178			163	15
Balance at end of period at Mar. 31, 2018	5,735	$ 1	5,300	117	317
Balance at end of period (in Shares) at Mar. 31, 2018		98,610,000
Balance at beginning of period at Dec. 31, 2017	5,582	$ 1	5,291	(37)	327
Balance at beginning of period (in Shares) at Dec. 31, 2017		98,167,000
Increase (Decrease) in Stockholders' Equity
Net income	639
Balance at end of period at Sep. 30, 2018	6,430	$ 1	5,465	468	496
Balance at end of period (in Shares) at Sep. 30, 2018		98,674,000
Balance at beginning of period at Mar. 31, 2018	5,735	$ 1	5,300	117	317
Balance at beginning of period (in Shares) at Mar. 31, 2018		98,610,000
Increase (Decrease) in Stockholders' Equity
Unit-based compensation	1				1
Stock-based compensation	7		7
Distribution to non-controlling interest	(19)				(19)
Dividend paid	(13)			(13)
Exercise of stock and unit options and awards of restricted stock	0
Exercise of stock and unit options and awards of restricted stock (in Shares)		10,000
Net income	301			219	82
Balance at end of period at Jun. 30, 2018	6,012	$ 1	5,307	323	381
Balance at end of period (in Shares) at Jun. 30, 2018		98,620,000
Increase (Decrease) in Stockholders' Equity
Net proceeds from issuance of common units - Viper Energy Partners LP	303				303
Stock-based compensation	8		8
Distribution to non-controlling interest	(31)				(31)
Dividend paid	(12)			(12)
Exercise of stock and unit options and awards of restricted stock	0
Exercise of stock and unit options and awards of restricted stock (in Shares)		54,000
Change in ownership of consolidated subsidiaries, net	(10)		150		(160)
Net income	160			157	3
Balance at end of period at Sep. 30, 2018	6,430	$ 1	5,465	468	496
Balance at end of period (in Shares) at Sep. 30, 2018		98,674,000
Balance at beginning of period at Dec. 31, 2018	$ 14,167	$ 2	12,936	762	467
Balance at beginning of period (in Shares) at Dec. 31, 2018	164,273,447	164,273,000
Increase (Decrease) in Stockholders' Equity
Net proceeds from issuance of common units - Viper Energy Partners LP	$ 341				341
Stock-based compensation	19		19
Repurchased shares for tax withholding	(13)		(13)
Repurchased shares for tax withholding (in Shares)		(125,000)
Distribution to non-controlling interest	(26)				(26)
Dividend paid	(20)			(20)
Exercise of stock and unit options and awards of restricted stock	0
Exercise of stock and unit options and awards of restricted stock (in Shares)		468,000
Change in ownership of consolidated subsidiaries, net	3		77		(74)
Net income	43			10	33
Balance at end of period at Mar. 31, 2019	14,514	$ 2	13,019	752	741
Balance at end of period (in Shares) at Mar. 31, 2019		164,616,000
Balance at beginning of period at Dec. 31, 2018	$ 14,167	$ 2	12,936	762	467
Balance at beginning of period (in Shares) at Dec. 31, 2018	164,273,447	164,273,000
Increase (Decrease) in Stockholders' Equity
Repurchased shares for share buyback program	$ (400)
Net income	787
Balance at end of period at Sep. 30, 2019	$ 15,489	$ 2	12,641	1,407	1,439
Balance at end of period (in Shares) at Sep. 30, 2019	161,142,305	161,142,000
Balance at beginning of period at Mar. 31, 2019	$ 14,514	$ 2	13,019	752	741
Balance at beginning of period (in Shares) at Mar. 31, 2019		164,616,000
Increase (Decrease) in Stockholders' Equity
Net proceeds from issuance of common units - Viper Energy Partners LP	720				720
Unit-based compensation	2				2
Stock-based compensation	12		12
Distribution to non-controlling interest	(24)				(24)
Dividend paid	(32)			(32)
Repurchased shares for share buyback program	(104)		(104)
Repurchased shares for share buyback program (in Shares)		(1,016,000)
Exercise of stock and unit options and awards of restricted stock	6		6
Exercise of stock and unit options and awards of restricted stock (in Shares)		349,000
Net income	356			349	7
Balance at end of period at Jun. 30, 2019	15,450	$ 2	12,933	1,069	1,446
Balance at end of period (in Shares) at Jun. 30, 2019		163,949,000
Increase (Decrease) in Stockholders' Equity
Unit-based compensation	2				2
Stock-based compensation	1		1
Distribution to non-controlling interest	(29)				(29)
Dividend paid	(30)			(30)
Repurchased shares for share buyback program	(296)		(296)
Repurchased shares for share buyback program (in Shares)		(2,954,000)
Exercise of stock and unit options and awards of restricted stock	3		3
Exercise of stock and unit options and awards of restricted stock (in Shares)		147,000
Net income	388			368	20
Balance at end of period at Sep. 30, 2019	$ 15,489	$ 2	$ 12,641	$ 1,407	$ 1,439
Balance at end of period (in Shares) at Sep. 30, 2019	161,142,305	161,142,000

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income	$ 787	$ 639
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for deferred income taxes	171	83
Asset retirement obligation accretion	6	1
Depreciation, depletion and amortization	1,046	391
Amortization of debt issuance costs	4	2
Change in fair value of derivative instruments	30	24
Income from equity investment	1	0
Gain on revaluation of investment	(4)	(5)
Equity-based compensation expense	27	18
Loss on sale of assets, net	0	3
Changes in operating assets and liabilities:
Accounts receivable	(116)	(21)
Inventories	(8)	(14)
Prepaid expenses and other	8	(6)
Accounts payable and accrued liabilities	(136)	18
Accrued interest	(29)	13
Income tax payable	1	0
Revenues and royalties payable	64	7
Net cash provided by operating activities	1,852	1,153
Cash flows from investing activities:
Drilling, completions and non-operated additions to oil and natural gas properties	(1,883)	(900)
Infrastructure additions to oil and natural gas properties	(104)	(110)
Additions to midstream assets	(186)	(130)
Purchase of other property, equipment and land	(8)	(2)
Acquisition of leasehold interests	(311)	(186)
Acquisition of mineral interests	(320)	(336)
Proceeds from sale of assets	301	7
Investment in real estate	(1)	(111)
Funds held in escrow	(7)	(51)
Equity investments	(225)	0
Net cash used in investing activities	(2,744)	(1,819)
Cash flows from financing activities:
Proceeds from borrowings under credit facility	1,409	1,028
Repayment under credit facility	(1,168)	(1,222)
Proceeds from senior notes	0	1,062
Proceeds from joint venture	42	0
Debt issuance costs	(7)	(14)
Public offering costs	(40)	(3)
Proceeds from public offerings	1,106	306
Proceeds from exercise of stock options	9	0
Repurchased shares for tax withholdings	(13)	0
Repurchased as part of share buyback	(400)	0
Dividends to stockholders	(82)	(25)
Distributions to non-controlling interest	(79)	(69)
Net cash (used in) provided by financing activities	777	1,063
Net (decrease) increase in cash and cash equivalents	(115)	397
Cash and cash equivalents at beginning of period	215	112
Cash and cash equivalents at end of period	100	509
Supplemental disclosure of cash flow information:
Interest paid, net of capitalized interest	115	52
Supplemental disclosure of non-cash transactions:
Change in accrued capital expenditures	(68)	71
Capitalized stock-based compensation	9	7
Asset retirement obligations acquired	$ 3	$ 0

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	Sep. 30, 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., together with its subsidiaries (collectively referred to as “Diamondback” or the “Company” unless the context otherwise requires), 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 September 30, 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 (“Energen”). The consolidated subsidiaries include these wholly-owned subsidiaries as well as Viper Energy Partners LP, a Delaware limited partnership (“Viper”), Viper’s subsidiary Viper Energy Partners LLC, a Delaware limited liability company (“Viper LLC”), Rattler Midstream LP (formerly known as Rattler Midstream Partners LP), a Delaware limited partnership (“Rattler”), Rattler Midstream Operating LLC (formerly known as Rattler Midstream LLC), a Delaware limited liability company (“Rattler LLC”), Rattler LLC’s wholly-owned subsidiary Tall City Towers LLC, a Delaware limited liability company (“Tall City”), and Energen’s wholly-owned subsidiaries Energen Resources Corporation, an Alabama corporation, and EGN Services, Inc., an Alabama corporation. 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. Viper is consolidated in the financial statements of the Company. As of September 30, 2019, the Company owned approximately 54% of Viper’s total units outstanding. The Company’s wholly-owned subsidiary, Viper Energy Partners GP LLC, is the general partner of Viper. Immediately following the completion of the Drop-Down on October 1, 2019, the Company owned 731,500 common units and 90,709,946 Class B units, representing approximately 60% of Viper’s total units outstanding. See Note 4—Acquisitions and Divestitures and Note 20—Subsequent Events for additional information regarding this transaction. Rattler is consolidated in the financial statements of the Company. As of September 30, 2019, the Company owned approximately 71% of Rattler’s total units outstanding. The Company’s wholly-owned subsidiary, Rattler Midstream GP LLC, is the general partner of Rattler. These financial statements have been prepared by the Company without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations, although the Company believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Company’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2018, which contains a summary of the Company’s significant accounting policies and other disclosures.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 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. Reclassifications Certain prior period amounts have been reclassified to conform to the 2019 presentation. These reclassifications had no impact on net income, total assets, liabilities and stockholders’ equity or total cash flows. 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. Viper has an equity interest in a limited partnership that is so minor that Viper 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, Viper adopted Accounting Standards Update (“ASU”) 2016-01 which requires Viper 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 17—Fair Value Measurements. New Accounting Pronouncements Recently Adopted Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 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 FASB issued ASU 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 FASB issued ASU 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 FASB issued ASU 2018-11, “Leases (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 FASB issued ASU 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 18—Leases for more information on the adoption of these standards. In June 2018, the FASB issued ASU 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 FASB issued ASU 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. In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections”. This update simplifies the guidance in various sections that was duplicative, redundant or outdated. The Company adopted this update effective July 2019. It did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. In August 2018, the FASB issued ASU 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In August 2018, the FASB issued ASU 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. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. This update clarifies that receivables arising from operating leases are not within the scope of this topic, but rather Topic 842, Leases. 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”. This update clarifies guidance previously issued in ASU 2016-01, ASU 2016-13 and ASU 2017-12. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the updates to the referenced standards will have an impact on its financial position, results of operations or liquidity. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326)”. This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity.

REVENUE FROM CONTRACTS WITH CUSTOMERS	9 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE FROM CONTRACTS WITH CUSTOMERS	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 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 ASC 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months and nine months ended September 30, 2019, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded.

ACQUISITIONS AND DIVESTITURES

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

ACQUISITIONS AND DIVESTITURES

2019 Activity

Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen

On May 23, 2019, the Company completed its divestiture of 6,589 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in its merger with Energen (as described below), for an aggregate sale price of $37 million. This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate.

On July 1, 2019, the Company completed its divestiture of 103,750 net acres of certain conventional and non-core Permian assets, which were acquired by the Company in the merger with Energen (as described below), for an aggregate sale price of $285 million. This divestiture did not result in a gain or loss because it did not have a significant effect on the Company’s reserve base or depreciation, depletion and amortization rate.

2019 Drop-Down Transaction

On July 29, 2019, the Company entered into a definitive purchase agreement to divest certain mineral and royalty interests to Viper for approximately 18.3 million of Viper’s newly-issued Class B units, approximately 18.3 million newly-issued units of Viper LLC and $190 million in cash, after giving effect to closing adjustments for net title benefits (the “Drop-Down”). Based on the volume weighted average sales price of Viper’s common units for the ten trading-day period ended July 26, 2019 of $30.07, the transaction is valued at $740 million. The mineral and royalty interests being divested in the Drop-Down represent approximately 5,490 net royalty acres across the Midland and Delaware Basins, of which over 95% are operated by the Company, and have an average net royalty interest of approximately 3.2% (the “Drop-Down Assets”). The Drop-Down closed on October 1, 2019 and was effective as of July 1, 2019. Viper funded the cash portion of the purchase price of the Drop-Down Assets through a combination of cash on hand and borrowings under Viper LLC’s revolving credit facility.

2018 Activity

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.

Ajax Resources, LLC

On October 31, 2018, the Company completed its acquisition of leasehold interests and related assets of Ajax Resources, LLC, which included approximately 25,493 net leasehold acres in the Northern Midland Basin, for $900 million in cash and approximately 2.6 million shares of the Company’s common stock (the “Ajax acquisition”). This transaction was effective as of July 1, 2018. The cash portion of this transaction was funded through a combination of cash on hand, proceeds from the sale of mineral interests to Viper (described below under the caption “2018 Drop-

Down Transaction”), borrowing under the Company’s revolving credit facility and a portion of the proceeds from the Company’s September 2018 senior note offering. See Note 11—Debt for information relating to this offering.

2018 Drop-Down Transaction

On August 15, 2018, the Company completed a transaction to sell to Viper mineral interests underlying 32,424 gross (1,696 net royalty) acres primarily in Pecos County, Texas, in the Permian Basin, approximately 80% of which are operated by the Company, for $175 million.

ExL Petroleum Management, LLC and EnergyQuest II LLC

On October 31, 2018, the Company completed its acquisitions of leasehold interests and related assets, one with ExL Petroleum Management, LLC and ExL Petroleum Operating, Inc. and one with EnergyQuest II LLC, for an aggregate of approximately 3,646 net leasehold acres in the Northern Midland Basin for a total of $313 million in cash. These transactions were effective as of August 1, 2018 and were funded through a combination of cash on hand, proceeds from the sale of assets to Viper (described immediately above) and borrowing under the Company’s revolving credit facility.

Energen Corporation Merger

On November 29, 2018, the Company completed its acquisition of Energen in an all-stock transaction, which was accounted for as a business combination (the “Merger”). Upon completion of the Merger, 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 11—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 will complete the purchase price allocation during the fourth quarter of 2019.

The following table sets forth the Company’s preliminary purchase price allocation as of September 30, 2019:



	(In millions)
Consideration:
Fair value of the Company's common stock issued	$	7,136
Total consideration	$	7,136

Fair value of liabilities assumed:
Current liabilities	$	377
Asset retirement obligation	105
Long-term debt	1,099
Noncurrent derivative instruments	17
Deferred income taxes	1,408
Other long-term liabilities	7
Amount attributable to liabilities assumed	$	3,013

Fair value of assets acquired:
Total current assets	$	311
Oil and natural gas properties	9,313
Midstream assets	263
Investment in real estate	11
Other property, equipment and land	55
Asset retirement obligation	105
Other postretirement assets	3
Noncurrent income tax receivable, net	76
Other long term assets	12
Amount attributable to assets acquired	$	10,149

Pro Forma Financial Information

The following unaudited summary pro forma consolidated statement of operations data of Diamondback for the three and nine months ended September 30, 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.



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
	(in millions, except per share amounts)
Revenues	$	919	$	2,655
Income from operations	$	431	$	1,280
Net income	$	156	$	727
Basic earnings per common share	$	0.97	$	4.50
Diluted earnings per common share	$	0.96	$	4.49

VIPER ENERGY PARTNERS LP	9 Months Ended
VIPER ENERGY PARTNERS LP	Sep. 30, 2019
Noncontrolling Interest [Abstract]
VIPER ENERGY PARTNERS LP	VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. Viper 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 Viper. As of September 30, 2019, the Company owned approximately 54% of Viper’s total units outstanding. Immediately following the completion of the Drop-Down on October 1, 2019, the Company owned 731,500 common units and 90,709,946 Class B units, representing approximately 60% of Viper’s total units outstanding. See Note 4—Acquisitions and Note 20—Subsequent Events for additional information regarding this transaction. Equity Offering On March 1, 2019, Viper 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 Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million, after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC 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 Viper’s issuance of unit-based compensation, the Company’s ownership percentage in Viper was reduced. During the nine months ended September 30, 2019, the Company recorded a $74 million decrease to non-controlling interest in Viper with an increase to additional paid-in capital, which represents the difference between the Company’s share of the underlying net book value in Viper 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, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’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 Viper (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 Viper LLC, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, Viper’s General Partner and Viper LLC. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper the 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of Viper LLC 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, Viper continued to be the managing member of Viper LLC, with sole control of its operations, and owned approximately 36% of the outstanding units issued by Viper LLC, and the Company owned the remaining approximately 64% of the outstanding units issued by Viper LLC. Upon completion of Viper’s July 2018 offering of units, it owned approximately 41% of the outstanding units issued by Viper LLC and the Company owned the remaining approximately 59%. Viper LLC units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Viper LLC unit and one Viper Class B unit, together, will be exchangeable for one Viper common unit). On May 10, 2018, the change in Viper’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) Viper’s General Partner made a cash capital contribution of $1 million to Viper in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1 million to Viper in respect of the Class B units. The Company, as the holder of the Class B units, and Viper’s 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 Viper LLC for 731,500 common units of Viper and a cash amount of $10,000 representing a proportionate return of the $1 million invested capital in respect of the Class B units. Viper’s General Partner continues to serve as Viper’s general partner and the Company continues to control Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through Viper LLC, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to Viper’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 Viper’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and Viper’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 “Viper Partnership Agreement”), requires Viper to reimburse Viper’s General Partner for all direct and indirect expenses incurred or paid on Viper’s behalf and all other expenses allocable to Viper or otherwise incurred by Viper’s General Partner in connection with operating Viper’s business. The Viper Partnership Agreement does not set a limit on the amount of expenses for which Viper’s 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 Viper or on its behalf and expenses allocated to Viper’s General Partner by its affiliates. Viper’s General Partner is entitled to determine the expenses that are allocable to Viper. For each of the three months ended September 30, 2019 and 2018, Viper’s General Partner allocated $1 million to Viper. For each of the nine months ended September 30, 2019 and 2018, Viper’s General Partner allocated $2 million to Viper. Tax Sharing In connection with the closing of the Viper Offering, Viper entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which Viper agreed to reimburse Diamondback for its share of state and local income and other taxes for which Viper’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 Viper 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 Viper may be a member for this purpose, to owe less or no tax. In such a situation, Viper agreed to reimburse Diamondback for the tax Viper would have owed had the tax attributes not been available or used for Viper’s benefit, even though Diamondback had no cash tax expense for that period. For the three months and nine months ended September 30, 2019 and the three months and nine months ended September 30, 2018, Viper accrued a minimal amount of state income tax expense for its share of Texas margin tax for which Viper’s results are included in a combined tax return filed by Diamondback. Viper LLC’s Revolving Credit Facility Viper LLC has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility. RATTLER MIDSTREAM LP Rattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly-owned subsidiary of Diamondback, serves as the general partner of Rattler. As of September 30, 2019, Diamondback owned approximately 71% of Rattler’s total units outstanding. Prior to the completion of the Rattler Offering in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit, which included 5,700,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters on the same terms which closed on May 30, 2019. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of Rattler’s initial public offering (the “Rattler Offering”), Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner, and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. Diamondback, as the holder of the Class B units, and Rattler’s General Partner, as the holder of the general partner interest, are entitled to receive cash preferred distributions equal to 8% per annum on the outstanding amount of their respective $1 million capital contributions, payable quarterly. Diamondback has also entered into the following agreements with Rattler: Rattler’s Partnership Agreement In connection with the closing of the Rattler Offering, Rattler’s General Partner and Energen Resources Corporation entered into the first amended and restated agreement of limited partnership of Rattler, dated May 28, 2019 (the “Rattler Partnership Agreement”). The Rattler Partnership Agreement requires Rattler to reimburse Rattler’s General Partner for all direct and indirect expenses incurred or paid on Rattler’s behalf and all other expenses allocable to Rattler or otherwise incurred by Rattler’s General Partner in connection with operating Rattler’s business. The Rattler Partnership Agreement does not set a limit on the amount of expenses for which its 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 Rattler or on its behalf and expenses allocated to Rattler’s General Partner by its affiliates. Rattler’s General Partner is entitled to determine the expenses that are allocable to Rattler. For the three months and nine months ended September 30, 2019, the General Partner allocated $225,030 and $262,937, respectively, of such expenses to Rattler. Rattler’s Services and Secondment Agreement In connection with the closing of the Rattler Offering, Rattler entered into a services and secondment agreement with Diamondback, Diamondback E&P LLC, Rattler’s General Partner and Rattler LLC, dated as of May 28, 2019 (the “Services and Secondment Agreement”). Pursuant to the Services and Secondment Agreement, Diamondback and its subsidiaries second certain operational, construction, design and management employees and contractors of Diamondback to Rattler’s General Partner, Rattler and its subsidiaries, providing management, maintenance and operational functions with respect to Rattler’s assets. The Services and Secondment Agreement requires Rattler’s General Partner and Rattler to reimburse Diamondback for the cost of the seconded employees and contractors, including their wages and benefits. For the three months and nine months ended September 30, 2019, Rattler’s General Partner and Rattler paid Diamondback $1 million and $3 million, respectively, under the Services and Secondment Agreement. Rattler’s Tax Sharing Agreement In connection with the closing of the Rattler Offering, Rattler LLC entered into a tax sharing agreement with Diamondback pursuant to which Rattler LLC will reimburse Diamondback for its share of state and local income and other taxes borne by Diamondback as a result of Rattler LLC’s results being included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on May 28, 2019. The amount of any such reimbursement is limited to the tax that Rattler LLC 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 Rattler LLC may be a member for this purpose, to owe less or no tax. In such a situation, Rattler LLC agreed to reimburse Diamondback for the tax Rattler LLC would have owed had the attributes not been available or used for Rattler LLC’s benefit, even though Diamondback had no cash expense for that period. For the three months and nine months ended September 30, 2019, Rattler accrued state income tax expense of $75,944 and $107,758, respectively, for its share of Texas margin tax for which Rattler’s share of Rattler LLC’s results are included in a combined tax return filed by Diamondback. Other Agreements Rattler has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility.

RATTLER MIDSTREAM LP	9 Months Ended
RATTLER MIDSTREAM LP	Sep. 30, 2019
Noncontrolling Interest [Abstract]
RATTLER MIDSTREAM LP	VIPER ENERGY PARTNERS LP Viper is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “VNOM”. Viper was formed by Diamondback on February 27, 2014, to, among other things, own, acquire and exploit oil and natural gas properties in North America. Viper 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 Viper. As of September 30, 2019, the Company owned approximately 54% of Viper’s total units outstanding. Immediately following the completion of the Drop-Down on October 1, 2019, the Company owned 731,500 common units and 90,709,946 Class B units, representing approximately 60% of Viper’s total units outstanding. See Note 4—Acquisitions and Note 20—Subsequent Events for additional information regarding this transaction. Equity Offering On March 1, 2019, Viper 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 Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million, after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC 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 Viper’s issuance of unit-based compensation, the Company’s ownership percentage in Viper was reduced. During the nine months ended September 30, 2019, the Company recorded a $74 million decrease to non-controlling interest in Viper with an increase to additional paid-in capital, which represents the difference between the Company’s share of the underlying net book value in Viper 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, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’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 Viper (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 Viper LLC, (iii) amended and restated its existing registration rights agreement with the Company and (iv) entered into an exchange agreement with the Company, Viper’s General Partner and Viper LLC. Simultaneously with the effectiveness of these agreements, the Company delivered and assigned to Viper the 73,150,000 common units the Company owned in exchange for (i) 73,150,000 of Viper’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of Viper LLC 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, Viper continued to be the managing member of Viper LLC, with sole control of its operations, and owned approximately 36% of the outstanding units issued by Viper LLC, and the Company owned the remaining approximately 64% of the outstanding units issued by Viper LLC. Upon completion of Viper’s July 2018 offering of units, it owned approximately 41% of the outstanding units issued by Viper LLC and the Company owned the remaining approximately 59%. Viper LLC units and Viper’s Class B units owned by the Company are exchangeable from time to time for Viper’s common units (that is, one Viper LLC unit and one Viper Class B unit, together, will be exchangeable for one Viper common unit). On May 10, 2018, the change in Viper’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) Viper’s General Partner made a cash capital contribution of $1 million to Viper in respect of its general partner interest and (ii) the Company made a cash capital contribution of $1 million to Viper in respect of the Class B units. The Company, as the holder of the Class B units, and Viper’s 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 Viper LLC for 731,500 common units of Viper and a cash amount of $10,000 representing a proportionate return of the $1 million invested capital in respect of the Class B units. Viper’s General Partner continues to serve as Viper’s general partner and the Company continues to control Viper. After the effectiveness of the tax status election and the completion of related transactions, Viper’s minerals business continues to be conducted through Viper LLC, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to Viper’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 Viper’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and Viper’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 “Viper Partnership Agreement”), requires Viper to reimburse Viper’s General Partner for all direct and indirect expenses incurred or paid on Viper’s behalf and all other expenses allocable to Viper or otherwise incurred by Viper’s General Partner in connection with operating Viper’s business. The Viper Partnership Agreement does not set a limit on the amount of expenses for which Viper’s 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 Viper or on its behalf and expenses allocated to Viper’s General Partner by its affiliates. Viper’s General Partner is entitled to determine the expenses that are allocable to Viper. For each of the three months ended September 30, 2019 and 2018, Viper’s General Partner allocated $1 million to Viper. For each of the nine months ended September 30, 2019 and 2018, Viper’s General Partner allocated $2 million to Viper. Tax Sharing In connection with the closing of the Viper Offering, Viper entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which Viper agreed to reimburse Diamondback for its share of state and local income and other taxes for which Viper’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 Viper 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 Viper may be a member for this purpose, to owe less or no tax. In such a situation, Viper agreed to reimburse Diamondback for the tax Viper would have owed had the tax attributes not been available or used for Viper’s benefit, even though Diamondback had no cash tax expense for that period. For the three months and nine months ended September 30, 2019 and the three months and nine months ended September 30, 2018, Viper accrued a minimal amount of state income tax expense for its share of Texas margin tax for which Viper’s results are included in a combined tax return filed by Diamondback. Viper LLC’s Revolving Credit Facility Viper LLC has entered into a secured revolving credit facility with Wells Fargo, as administrative agent sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility. RATTLER MIDSTREAM LP Rattler is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. Rattler was formed by Diamondback in July 2018 to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Rattler Midstream GP LLC (“Rattler’s General Partner”), a wholly-owned subsidiary of Diamondback, serves as the general partner of Rattler. As of September 30, 2019, Diamondback owned approximately 71% of Rattler’s total units outstanding. Prior to the completion of the Rattler Offering in May of 2019, Diamondback owned all of the general and limited partner interests in Rattler. The Rattler Offering consisted of 43,700,000 common units representing approximately 29% of the limited partner interests in Rattler at a price to the public of $17.50 per common unit, which included 5,700,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters on the same terms which closed on May 30, 2019. Rattler received net proceeds of approximately $720 million from the sale of these common units, after deducting offering expenses and underwriting discounts and commissions. In connection with the completion of Rattler’s initial public offering (the “Rattler Offering”), Rattler (i) issued 107,815,152 Class B Units representing an aggregate 71% voting limited partner interest in Rattler in exchange for a $1 million cash contribution from Diamondback, (ii) issued a general partner interest in Rattler to Rattler’s General Partner, in exchange for a $1 million cash contribution from Rattler’s General Partner, and (iii) caused Rattler LLC to make a distribution of approximately $727 million to Diamondback. Diamondback, as the holder of the Class B units, and Rattler’s General Partner, as the holder of the general partner interest, are entitled to receive cash preferred distributions equal to 8% per annum on the outstanding amount of their respective $1 million capital contributions, payable quarterly. Diamondback has also entered into the following agreements with Rattler: Rattler’s Partnership Agreement In connection with the closing of the Rattler Offering, Rattler’s General Partner and Energen Resources Corporation entered into the first amended and restated agreement of limited partnership of Rattler, dated May 28, 2019 (the “Rattler Partnership Agreement”). The Rattler Partnership Agreement requires Rattler to reimburse Rattler’s General Partner for all direct and indirect expenses incurred or paid on Rattler’s behalf and all other expenses allocable to Rattler or otherwise incurred by Rattler’s General Partner in connection with operating Rattler’s business. The Rattler Partnership Agreement does not set a limit on the amount of expenses for which its 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 Rattler or on its behalf and expenses allocated to Rattler’s General Partner by its affiliates. Rattler’s General Partner is entitled to determine the expenses that are allocable to Rattler. For the three months and nine months ended September 30, 2019, the General Partner allocated $225,030 and $262,937, respectively, of such expenses to Rattler. Rattler’s Services and Secondment Agreement In connection with the closing of the Rattler Offering, Rattler entered into a services and secondment agreement with Diamondback, Diamondback E&P LLC, Rattler’s General Partner and Rattler LLC, dated as of May 28, 2019 (the “Services and Secondment Agreement”). Pursuant to the Services and Secondment Agreement, Diamondback and its subsidiaries second certain operational, construction, design and management employees and contractors of Diamondback to Rattler’s General Partner, Rattler and its subsidiaries, providing management, maintenance and operational functions with respect to Rattler’s assets. The Services and Secondment Agreement requires Rattler’s General Partner and Rattler to reimburse Diamondback for the cost of the seconded employees and contractors, including their wages and benefits. For the three months and nine months ended September 30, 2019, Rattler’s General Partner and Rattler paid Diamondback $1 million and $3 million, respectively, under the Services and Secondment Agreement. Rattler’s Tax Sharing Agreement In connection with the closing of the Rattler Offering, Rattler LLC entered into a tax sharing agreement with Diamondback pursuant to which Rattler LLC will reimburse Diamondback for its share of state and local income and other taxes borne by Diamondback as a result of Rattler LLC’s results being included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on May 28, 2019. The amount of any such reimbursement is limited to the tax that Rattler LLC 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 Rattler LLC may be a member for this purpose, to owe less or no tax. In such a situation, Rattler LLC agreed to reimburse Diamondback for the tax Rattler LLC would have owed had the attributes not been available or used for Rattler LLC’s benefit, even though Diamondback had no cash expense for that period. For the three months and nine months ended September 30, 2019, Rattler accrued state income tax expense of $75,944 and $107,758, respectively, for its share of Texas margin tax for which Rattler’s share of Rattler LLC’s results are included in a combined tax return filed by Diamondback. Other Agreements Rattler has entered into a secured revolving credit facility with Wells Fargo Bank, National Association, as administrative agent, sole book runner and lead arranger. See Note 11—Debt for a description of this credit facility.

REAL ESTATE ASSETS

9 Months Ended

Sep. 30, 2019

Real Estate [Abstract]

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:



	Estimated Useful Lives	September 30, 2019			December 31, 2018
	(Years)	(in millions)
Buildings	30	$	102		$	103
Tenant improvements	15	5			4
Land	N/A	2			1
Land improvements	15	1			1
Total real estate assets		110			109
Less: accumulated depreciation		(8		)	(4		)
Total investment in land and buildings, net		$	102		$	105



	Weighted Average Useful Lives	September 30, 2019			December 31, 2018
	(Months)	(in millions)
In-place lease intangibles	45	$	11		$	11
Less: accumulated amortization		(5		)	(3		)
In-place lease intangibles, net		6			8

Above-market lease intangibles	45	4			4
Less: accumulated amortization		(1		)	(1		)
Above-market lease intangibles, net		3			3
Total intangible lease assets, net		$	9		$	11

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment includes the following:



	September 30,			December 31,
	2019			2018

	(in millions)
Oil and natural gas properties:
Subject to depletion	$	15,358		$	12,629
Not subject to depletion	9,464			9,670
Gross oil and natural gas properties	24,822			22,299
Accumulated depletion	(2,605		)	(1,599		)
Accumulated impairment	(1,144		)	(1,144		)
Oil and natural gas properties, net	21,073			19,556
Midstream assets	884			700
Other property, equipment and land	152			147
Accumulated depreciation	(66		)	(31		)
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	$	22,043		$	20,372

Balance of costs not subject to depletion:
Incurred in 2019	$	513
Incurred in 2018	5,844
Incurred in 2017	2,438
Incurred in 2016	669
Total not subject to depletion	$	9,464

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 $8 million and $6 million for the three months ended September 30, 2019 and 2018, respectively, and $32 million and $20 million for the nine months ended September 30, 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.

At September 30, 2019, there was $82 million in exploration costs and development costs and $102 million in capitalized interest that was not subject to depletion. At December 31, 2018, there were $68 million in exploration costs and development costs and $55 million in capitalized interest that was not subject to depletion.

ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2019

Asset Retirement Obligation [Abstract]

ASSET RETIREMENT OBLIGATIONS

The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:



	Nine Months Ended September 30,
	2019			2018

	(in millions)
Asset retirement obligations, beginning of period	$	136		$	21
Additional liabilities incurred	6			2
Liabilities acquired	3			—
Liabilities settled	(61		)	(1		)
Accretion expense	6			1
Revisions in estimated liabilities	—			1
Asset retirement obligations, end of period	90			24
Less current portion	—			—
Asset retirement obligations - long-term	$	90		$	24

The Company’s asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. The Company estimates the future plugging and abandonment costs of wells, the ultimate productive life of the properties, a risk-adjusted discount rate and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing asset retirement obligation liability, a corresponding adjustment is made to the oil and natural gas property balance. The current portion of the asset retirement obligation liability is included in other accrued liabilities in the Company’s consolidated balance sheets.

EQUITY METHOD INVESTMENTS	9 Months Ended
EQUITY METHOD INVESTMENTS	Sep. 30, 2019
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, Rattler 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 Rattler’s 25% investment, Rattler received a 50% undivided ownership interest in two of the four SWD wells and associated assets previously owned by HMW LLC. Rattler’s basis in the assets is equivalent to its basis in the equity investment in HMW LLC. On February 1, 2019, Rattler LLC obtained a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which is building a pipeline (the “EPIC project”) that, once fully operational, will transport crude and NGL across Texas for delivery into the Corpus Christi market. As of September 30, 2019, Rattler’s total investment in the EPIC project was $89 million. During the nine months ended September 30, 2019, Rattler recorded net expenses of $532,800 related to the EPIC project. The EPIC project began initial operations during the third quarter of 2019. On February 15, 2019, Rattler LLC 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 September 30, 2019, Rattler’s total investment in the Gray Oak project was $114 million. During the nine months ended September 30, 2019, Rattler recorded net expenses of $189,374 related to the Gray Oak project. The Gray Oak project is anticipated to be operational in the fourth quarter of 2019. On March 29, 2019, Rattler LLC 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. During the three months ended September 30, 2019, there were no borrowings or repayments under this note. There were no outstanding loans at September 30, 2019. On July 30, 2019, Rattler LLC joined Wink to Webster Pipeline LLC as a 4% member, together with affiliates of ExxonMobil, Plains All American Pipeline, Delek US, MPLX LP and Lotus Midstream. The joint venture is developing a crude oil pipeline with origin points at Wink and Midland in the Permian Basin for delivery to multiple Houston area locations (the “Wink to Webster project”). As of September 30, 2019, Rattler's total investment in the Wink to Webster project was $21 million. During the nine months ended September 30, 2019, Rattler recorded net income of $26,280 related to interest. The Wink to Webster project is expected to begin service in the first half of 2021. No impairments were recorded for Rattler’s equity method investments for the nine months ended September 30, 2019 or 2018. At September 30, 2019, there was $124,301 of capitalized interest that was related to equity method investments that have not yet begun operations.

DEBT

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

DEBT

Long-term debt consisted of the following as of the dates indicated:



	September 30,			December 31,
	2019			2018

	(in millions)
4.625% Notes due 2021⁽¹⁾	$	400		$	400
7.320% Medium-term Notes, Series A, due 2022⁽¹⁾	21			20
4.750 % Senior Notes due 2024	1,250			1,250
5.375 % Senior Notes due 2025	800			800
7.350% Medium-term Notes, Series A, due 2027⁽¹⁾	11			10
7.125% Medium-term Notes, Series B, due 2028⁽¹⁾	108			100
DrillCo Agreement	42			—
Unamortized debt issuance costs	(22		)	(27		)
Unamortized premium costs	9			10
Revolving credit facility	1,629			1,490
Viper revolving credit facility	410			411
Rattler revolving credit facility	103			—
Total long-term debt	$	4,761		$	4,464


(1)	At the effective time of the Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of these notes (the “Energen Notes”).

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 Viper, Viper’s General Partner, Viper LLC, Rattler, Rattler’s General Partner or Rattler 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, as amended on July 3, 2019 (the “Exchange Offer 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. The Exchange Offer S-4 was declared effective by the SEC on July 11, 2019 and the Company closed the Exchange Offer on August 12, 2019.

2025 Senior Notes

On December 20, 2016, the Company issued $500 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 Viper, Viper’s General Partner, Viper LLC, Rattler, Rattler’s General Partner or Rattler 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. On June 28, 2019, the credit agreement was amended pursuant to an eleventh amendment, which implemented certain changes to the credit facility for the period on and after the date on which the Company’s unsecured debt achieves an investment grade rating from two rating agencies and certain other conditions in the credit agreement are satisfied (the “investment grade changeover date”). The maximum credit amount available under the credit agreement is $5 billion, subject, prior to the investment grade changeover date, to a borrowing base based on the Company’s oil and natural gas reserves and other factors (the “borrowing base”) and the elected commitment amount. Prior to the investment grade changeover date, 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. On and after the investment grade changeover date, the maximum credit amount available under the credit agreement will be based solely on the commitments of the lenders, and will no longer be limited by the borrowing base. On the investment grade changeover date, the aggregate commitments of the lenders will be set at an amount equal to the aggregate elected commitment amount in effect on such date. As of September 30, 2019, the borrowing base was set at $3.4 billion, the Company had elected a commitment amount of $2.5 billion and the Company had approximately $1.6 billion of outstanding borrowings under its revolving credit facility and $0.9 billion available for future borrowings under its revolving credit facility.

Diamondback O&G LLC is the borrower under the credit agreement. As of September 30, 2019, the credit agreement is guaranteed by the Company, Diamondback E&P 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. On and after the investment grade changeover date, the Company and Diamondback O&G LLC will no longer be required to cause all restricted subsidiaries to guarantee the credit agreement, and, in certain circumstances, may cause guaranties made by subsidiary guarantors to be released. Prior to the investment grade changeover date, the credit agreement is also secured by substantially all of the assets of the Company, Diamondback O&G LLC and the guarantors. On and after the investment grade changeover date, the credit agreement will be unsecured and all liens securing the credit facility will be released.

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. Prior to the investment grade changeover date, 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. On and after the investment grade changeover date, the applicable margin will range from 0.125% to 1.0% per annum in the case of the alternate base rate and from 1.125% to 2.0% per annum in the case of LIBOR, in each case, depending on the pricing level, which in turn depends on the rating agencies’ rating of the Company’s unsecured debt. Prior to the investment grade changeover date, 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. On and after the investment grade changeover date, the commitment fee will range from 0.125% to 0.350% per year on the unused portion of the commitment, based on the pricing level, which in turn depends on the rating agencies’ rating of the Company’s unsecured debt.

Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage). Prior to the investment grade changeover date, loan principal 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. On and after the investment grade changeover date, loan principal is required to be repaid (a) to the extent the loan amount exceeds the commitment due to any termination or reduction of the aggregate maximum credit amount and (b) 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.



Financial Covenant (prior to the investment grade changeover date)		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

The covenant prohibiting additional indebtedness, applicable prior to the investment grade changeover date, 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.

On and after the investment grade changeover date, the financial covenants listed above will be replaced by a financial covenant that will require the Company to not permit the total net debt to capitalization ratio, as defined in the credit agreement, to exceed 65%. Additionally, on and after the investment grade changeover date, many of the negative covenants set forth in the credit agreement will no longer restrict the Company, Diamondback O&G LLC and their restricted subsidiaries (the “Restricted Group”), including the covenants that limit (i) equity repurchases, dividends and other restricted payments, (ii) redemptions of the senior or senior subordinated notes, (iii) making investments, (iv) dispositions of property, (v) transactions with affiliates, and (vi) entering into swap agreements. In addition, on and after the investment grade changeover date, (i) the debt covenant will no longer restrict incurrences of debt by Diamondback O&G LLC and guarantors, and will allow non-guarantor restricted subsidiaries to incur debt for borrowed money in an aggregate principal amount up to 15% of consolidated net tangible assets (as defined in the credit agreement) and (ii) the liens covenant will be modified to allow the Restricted Group to create liens if the aggregate amount of debt secured by such liens does not exceed 15% of consolidated net tangible assets.

On August 28, 2019, the Company, the borrower and certain of the Company’s subsidiaries (the “Loan Parties”) entered into a Consent Letter with Wells Fargo allowing the Loan Parties to enter into certain swap agreements in respect of interest rates for United States Treasury securities for an aggregate notional principal amount of up to $3 billion, subject to certain conditions set forth in the consent, which otherwise would be in excess of the notional principal amount of interest rate swap agreements permitted under the revolving credit facility immediately prior to the effectiveness of the consent. As of September 30, 2019, the borrower was party to interest rate swap agreements with an aggregate notional principal amount of $2 billion, interest rates ranging from 1.3565% to 2.1509% and maturity dates ranging from August 24, 2020 to December 31, 2050.

As of September 30, 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.

Viper’s Credit Agreement

On July 20, 2018, Viper, as guarantor, entered into an amended and restated credit agreement with Viper LLC, as borrower, Wells Fargo, as administrative agent, and the other lenders. The credit agreement, as amended to the date hereof, provides for a revolving credit facility in the maximum credit amount of $2 billion and a borrowing base based on Viper LLC’s oil and natural gas reserves and other factors (the “borrowing base”) of $725 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, Viper LLC and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12-month period. Upon closing of the Drop-Down on October 1, 2019, the borrowing base under Viper LLC’s revolving credit facility was increased by $125 million to $725 million from $600 million. In connection with the commencement of the Viper Notes Offering described in Note 20—Subsequent Events below, Viper entered into a third amendment to Viper LLC’s revolving credit facility with Wells Fargo, as administrative agent, and certain required lenders party thereto, which provides for the waiver of the automatic reduction of the borrowing base that would otherwise occur upon the consummation of the Viper Notes Offering. In addition, the third amendment increased the maximum amount of unsecured senior or senior subordinated notes that may be issued by Viper LLC or Viper from $400 million to $1.0 billion. The amendment was approved by the requisite percentage of lenders under the revolving credit facility and became effective on October 8, 2019. If the amendment had not been approved, the borrowing base under the revolving credit facility would have decreased by $125 million upon consummation of the Viper Notes Offering.

As of September 30, 2019, the borrowing base was set at $600 million, and Viper LLC had $410 million of outstanding borrowings and $190 million available for future borrowings under its revolving credit facility. Viper funded the cash portion of the purchase price for the Drop-Down through a combination of cash on hand and borrowings under Viper LLC’s revolving credit facility. Viper LLC used the proceeds from the Viper Notes Offering to pay down borrowings under its revolving credit facility. Following these transactions, as of October 16, 2019, the closing date of the Viper Notes Offering, there was $95 million in outstanding borrowings under Viper LLC’s revolving credit facility, the borrowing base under Viper LLC’s revolving credit facility was $725 million and Viper LLC had $630 million of available borrowing capacity under its revolving credit facility. Additionally, in connection with Viper’s fall redetermination expected to occur in November 2019, the lead bank under the Viper LLC’s revolving credit facility has recommended a borrowing base increase to $775 million from the current borrowing base of $725 million. The anticipated increase in the borrowing base is subject to approval by the requisite lenders under Viper LLC’s revolving credit facility.

The outstanding borrowings under the credit agreement bear interest at a per annum rate elected by Viper LLC 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. Viper LLC 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 Viper and Viper LLC.

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:



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

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 September 30, 2019 and December 31, 2018, Viper 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 Viper’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.

Rattler’s Credit Agreement

In connection with the Rattler Offering, Rattler, as parent, and Rattler LLC, as borrower, entered into a credit agreement, dated May 28, 2019, with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of banks, including Wells Fargo Bank, National Association, as lenders party thereto (the “Rattler credit agreement”).

The Rattler credit agreement provides for a revolving credit facility in the maximum credit amount of $600 million. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid at the maturity date of May 28, 2024. The loan is guaranteed by Rattler and Tall City, and is secured by substantially all of the assets of Rattler LLC, Rattler and Tall City. As of September 30, 2019, Rattler LLC had $103 million of outstanding borrowings and $497 million available for future borrowings under the Rattler credit agreement.

The outstanding borrowings under the Rattler credit agreement bear interest at a per annum rate elected by Rattler LLC that is based on the prime rate or LIBOR, in each case plus an applicable margin. The applicable margin ranges from 0.250% to 1.250% per annum for prime-based loans and 1.250% to 2.250% per annum for LIBOR loans, in each case depending on the Consolidated Total Leverage Ratio (as defined in the Rattler credit agreement). Rattler LLC is obligated to pay a quarterly commitment fee ranging from 0.250% to 0.375% per annum on the unused portion of the commitment, which fee is also dependent on the Consolidated Total Leverage Ratio.

The Rattler credit agreement contains various affirmative and negative covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, distributions and other restricted payments, transactions with affiliates, and entering into certain swap agreements, in each case of Rattler, Rattler LLC and their restricted subsidiaries. The covenants are subject to exceptions set forth in the Rattler credit agreement, including an exception allowing Rattler LLC or Rattler to issue unsecured debt securities and an exception allowing payment of distributions if no default exists. The Rattler credit agreement may be used to fund capital expenditures, to finance working capital, for general company purposes, to pay fees and expenses related to the Rattler credit agreement, and to make distributions permitted under the Rattler credit agreement.

The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below:



Financial Covenant		Required Ratio
Consolidated Total Leverage Ratio commencing with the fiscal quarter ending September 30, 2019		Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Rattler credit agreement) is applicable, then not greater than 5.25 to 1.00)
Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Rattler credit agreement) is made		Not greater than 3.50 to 1.00
Consolidated Interest Coverage Ratio (as defined in the Rattler credit agreement) commencing with the fiscal quarter ending September 30, 2019		Not less than 2.50 to 1.00

For purposes of calculating the financial maintenance covenants prior to the fiscal quarter ending June 30, 2020, EBITDA (as defined in the Rattler credit agreement) will be annualized based on the actual EBITDA for the preceding fiscal quarters starting with the fiscal quarter ending September 30, 2019.

As of September 30, 2019, each of Rattler and Rattler LLC were in compliance with all financial covenants under the Rattler credit agreement. The lenders may accelerate all of the indebtedness under the Rattler credit agreement upon the occurrence and during the continuance of any event of default. The Rattler credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change in control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial maintenance covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. With certain specified exceptions, the terms and provisions of the Rattler credit agreement generally may be amended with the consent of the lenders holding a majority of the outstanding loans or commitments to lend.

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 September 30, 2019, CEMOF had funded approximately $33 million. As of September 30, 2019, eight joint wells have been drilled and completed.

CAPITAL STOCK AND EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

CAPITAL STOCK AND EARNINGS PER SHARE

Diamondback did not complete any equity offerings during the nine months ended September 30, 2019 and September 30, 2018.

Viper’s Equity Offering

On March 1, 2019, Viper 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 Viper’s total units then outstanding. Viper received net proceeds from this offering of approximately $341 million, after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC 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.

In July 2018, Viper completed an underwritten public offering of 10,080,000 common units, which included 1,080,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. Following this offering, Diamondback owned approximately 59% of the total Viper units then outstanding. Viper received net proceeds from this offering of approximately $303 million, after deducting underwriting discounts and commissions and estimated offering expenses. Viper used the net proceeds to purchase units of Viper LLC. Viper LLC in turn used the net proceeds to repay a portion of the $362 million then outstanding borrowings under its revolving credit facility.

Rattler’s Initial Public Offering

Please see Note 6—Rattler Midstream LP for information regarding Rattler’s IPO.

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. 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. During the three months and nine months ended September 30, 2019, the Company repurchased approximately $296 million and $400 million, respectively, of common stock under this repurchase program. As of September 30, 2019, $1.6 billion remained available for use to repurchase shares under the Company's common stock repurchase program.

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 Viper 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:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	($ in millions, except per share amounts, shares in thousands)
Net income attributable to common stock	$	368	$	157	$	727	$	539
Weighted average common shares outstanding
Basic weighted average common units outstanding	162,543		98,638		164,070		98,603
Effect of dilutive securities:
Potential common shares issuable	237		180		396		217
Diluted weighted average common shares outstanding	162,780		98,818		164,466		98,820
Basic net income attributable to common stock	$	2.27	$	1.59	$	4.44	$	5.47
Diluted net income attributable to common stock	$	2.26	$	1.59	$	4.42	$	5.45

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:



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
	(in thousands)
Restricted stock units	51	13	40	2

EQUITY-BASED COMPENSATION

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

EQUITY-BASED COMPENSATION

The following table presents the effects of the equity compensation plans and related costs:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018
	(in millions)
General and administrative expenses	$	4		$	5	$	27	$	18
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties	(1		)	2		9		7

Restricted Stock Units

The following table presents the Company’s restricted stock units activity under the Equity Plan during the nine months ended September 30, 2019:



	Restricted Stock Awards & Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	324,224		$	116.01
Granted	468,778		$	106.85
Vested	(217,300	)	$	100.47
Forfeited	(81,962	)	$	107.35
Unvested at September 30, 2019	493,740		$	107.54

The aggregate fair value of restricted stock units that vested during the nine months ended September 30, 2019 and 2018 was $4 million and $15 million, respectively. As of September 30, 2019, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $28 million. Such cost is expected to be recognized over a weighted-average period of 1.4 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.



	2019
Grant-date fair value (3-year vesting)	$	137.22
Grant-date fair value (5-year vesting)	$	132.48
Risk-free rate	2.55		%
Company volatility	35.00		%

The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the nine months ended September 30, 2019:



	Performance Restricted Stock Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	196,203		$	169.76
Granted	356,227		$	131.30
Vested	(123,546	)	$	60.70
Forfeited	(103,635	)	$	155.23
Unvested at September 30, 2019⁽¹⁾	325,249		$	150.63


(1)	A maximum of 650,498 units could be awarded based upon the Company’s final TSR ranking.

As of September 30, 2019, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $28 million. Such cost is expected to be recognized over a weighted-average period of 2.4 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 nine months ended September 30, 2019:



	Shares		Weighted Average Exercise Price
Outstanding at December 31, 2018	57,721		$	22.12
Exercised	(11,265	)	$	70.64
Expired	(3,775	)	$	96.91
Outstanding at September 30, 2019	42,681		$	90.84

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.



			Weighted Average
			Exercise		Remaining	Intrinsic
	Options		Price		Term	Value
					(in years)	(in millions)
Outstanding at December 31, 2018	332,387		$	95.04
Exercised	(116,044	)	$	82.29
Outstanding at September 30, 2019	216,343		$	89.90	1.92	$	—

Vested and Expected to vest at September 30, 2019	216,343		$	89.90	1.92	$	—
Exercisable at September 30, 2019	216,343		$	89.90	1.92	$	—

Viper Phantom Units

Under the Viper Energy Partners LP Long Term Incentive Plan (“Viper LTIP”), the Board of Directors of the General Partner is authorized to issue phantom units to eligible employees. Viper estimates the fair value of phantom units as the closing price of Viper’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 Viper for each phantom unit.

The following table presents the phantom unit activity under the Viper LTIP for the nine months ended September 30, 2019:



	Phantom Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	125,053		$	23.44
Granted	33,886		$	32.78
Vested	(81,124	)	$	23.34
Forfeited	(1,028	)	$	42.50
Unvested at September 30, 2019	76,787		$	27.42

The aggregate fair value of phantom units that vested during the nine months ended September 30, 2019 was $2 million. As of September 30, 2019, the unrecognized compensation cost related to unvested phantom units was $1 million. Such cost is expected to be recognized over a weighted-average period of 0.81 years.

Rattler Long-Term Incentive Plan

On May 22, 2019, the board of directors of Rattler’s General Partner adopted the Rattler Midstream LP Long Term Incentive Plan (“Rattler LTIP”), for employees, consultants and directors of Rattler’s General Partner and any of its affiliates, including Diamondback, who perform services for Rattler. The Rattler LTIP provides for the grant of unit options, unit appreciation rights, restricted units, unit awards, phantom units, distribution equivalent rights, cash awards, performance awards, other unit-based awards and substitute awards.

Under the Rattler LTIP, the board of directors of Rattler’s General Partner is authorized to issue phantom units to eligible employees and non-employee directors. Rattler estimates the fair value of phantom units as the closing price of Rattler’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 to one common unit of Rattler for each phantom unit. The recipients are also entitled to distribution equivalent rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one phantom unit between the grant date and the vesting date.

The following table presents the phantom unit activity under the Rattler LTIP for the nine months ended September 30, 2019:



	Phantom Units		Weighted Average Grant-Date Fair Value
Unvested at May 28, 2019	—		$	—
Granted	2,248,572		$	19.20
Forfeited	(57,143	)	$	19.21
Unvested at September 30, 2019	2,191,429		$	19.20

As of September 30, 2019, the unrecognized compensation cost related to unvested phantom units was $39 million. Such cost is expected to be recognized over a weighted-average period of 2.6 years.

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Advisory Services Agreement - Viper In connection with the closing of the Viper Offering, Viper and Viper’s General Partner entered into an advisory services agreement (the “Viper Advisory Services Agreement”) with Wexford, dated as of June 23, 2014, under which Wexford provided Viper and Viper’s 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. The Advisory Services Agreement was terminated on November 12, 2018 and Viper’s payment obligation ended in June 2019. During 2019, Viper did not pay any amounts under the Advisory Services Agreement. For the three months and nine months ended September 30, 2018, Viper did not pay any amounts under the Advisory Services Agreement. Lease Bonus - Viper During the three months ended September 30, 2019, the Company did not pay Viper any lease bonus payments. During the nine months ended September 30, 2019, the Company paid Viper $39,198 in lease bonus payments to extend the term of two leases and $3,101 in lease bonus payments for two new leases. During the three months and nine months ended September 30, 2018, the Company paid Viper $3 million in lease bonus payments to extend the term of 12 leases. Rattler Offering Please see Note 6—Rattler Midstream LP for information regarding relationships between the Company and Rattler.

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective income tax rates were 20.8% and 21.2% for the three months ended September 30, 2019 and 2018, respectively, and 17.9% and 11.5% for the nine months ended September 30, 2019 and 2018, respectively. Total income tax expense for the three and nine months ended September 30, 2019 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income primarily due to current and deferred state income taxes, the impact of permanent differences between book and taxable income, and the revision of estimated deferred taxes recognized by Viper as a result of its change in tax status. For the nine months ended September 30, 2019, the Company recorded a discrete income tax expense of less than $1 million related to equity-based compensation and a discrete benefit of approximately $42 million related to the revision of estimated deferred taxes on Viper’s investment in Viper LLC arising from the change in Viper’s tax status. Based on information regarding unitholders’ tax basis which, under IRS reporting rules, was not available until the current period, Viper revised its estimate of deferred taxes on Viper’s investment in Viper LLC, and further revisions are not expected. Total income tax expense for the three and nine months ended September 30, 2018 differed from amounts computed by applying the federal statutory rate to pre-tax income primarily due to (i) state income taxes, (ii) net income attributable to the noncontrolling interest, (iii) the impact of permanent differences between book and taxable income, and (iv) for the nine months ended September 30, 2018, deferred taxes recognized by Viper as a result of its change in tax status. As discussed further in Note 6, on May 28, 2019, Rattler completed its initial public offering. Even though Rattler is organized as a limited partnership under state law, Rattler is subject to U.S. federal and state income tax at corporate rates, subsequent to the effective date of Rattler’s election to be treated as a corporation for U.S. federal income tax purposes. As such, Rattler’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest. As discussed further in Note 5, on March 29, 2018, Viper announced that the Board of Directors of Viper’s General Partner had unanimously approved a change of Viper’s federal income tax status from that of a pass-through partnership to that of a taxable entity, which change became effective on May 10, 2018. The transactions undertaken in connection with the change in Viper’s tax status were not taxable to the Company. Subsequent to Viper’s change in tax status, Viper’s provision for income taxes is based on its estimated annual effective tax rate plus discrete items. As such, Viper’s provision for income taxes is included in the Company’s consolidated financial statements and to the extent applicable, in net income attributable to the non-controlling interest.

DERIVATIVES

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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.”

Commodity Contracts

The Company has used fixed price swap contracts, fixed price basis swap contracts, double-up 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. The Company also utilizes double-up swap contracts for a portion of its natural gas sales. These contracts include a traditional fixed price swap in addition to a call option at the same quantity and price, providing the counterparty the option to double the volume in the swap contract should the monthly settlement price exceed the fixed price contracted upon.

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 and Waha 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 September 30, 2019, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.



	2019				2020				2021
	Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)
Oil Swaps - WTI Cushing	2,710,000	$	61.21		4,388,000	$	57.87		—	$	—
Oil Swaps - WTI Magellan East Houston	920,000	$	63.47		2,196,000	$	62.80		—	$	—
Oil Swaps - BRENT	644,000	$	67.71		4,205,000	$	62.72		—	$	—
Oil Basis Swaps - WTI Cushing	4,140,000	$	(5.52	)	15,120,000	$	(1.21	)	—	$	—
Natural Gas Swaps - Henry Hub	6,440,000	$	3.06		10,980,000	$	2.55		—	$	—
Natural Gas Swaps - Waha Hub	—	$	—		18,300,000	$	1.67		—	$	—
Natural Gas Basis Swaps - Waha Hub	6,440,000	$	(1.56	)	14,640,000	$	(1.10	)	36,500,000	$	(0.68	)
Natural Gas Liquid Swaps - Mont Belvieu	690,000	$	27.30		—	$	—		—	$	—



	2019						2020
Oil Three-Way Collars	WTI Cushing		Brent		WTI Magellan East Houston		WTI Cushing		Brent		WTI Magellan East Houston
Volume (Bbls)	1,440,000		552,000		460,000		6,842,200		9,278,100		5,124,000
Short put price (per Bbl)	$	35.94	$	51.67	$	50.00	$	44.20	$	50.00	$	50.00
Floor price (per Bbl)	$	45.94	$	61.67	$	60.00	$	54.20	$	60.00	$	60.00
Ceiling price (per Bbl)	$	61.65	$	78.47	$	66.10	$	65.42	$	72.18	$	68.61



Gas Swap Double-Up - Waha Hub	2020
Volume (Mcf)	10,980,000
Swap price (per Mcf)	$	1.70
Option price	$	1.70

Interest Rate Swaps and Treasury Locks

The Company has used interest rate swaps and treasury locks to reduce the Company’s exposure to variable rate interest payments associated with the Company’s revolving credit facility. The interest rate swaps and treasury locks have not been designated as hedging instruments and as a result, the Company recognizes all changes in fair value immediately in earnings.

The following table summarizes the Company’s interest rate swaps and treasury locks as of September 30, 2019:



Type	Effective Date	Termination Date	Notional Amount (in millions)		Interest Rate
Treasury Lock	August 23, 2019	August 24, 2020	$	250	2.1509	%
Treasury Lock	August 23, 2019	August 24, 2020	$	250	1.6563	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.59675	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.615	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	500	1.567	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.555	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.3565	%

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 September 30, 2019 and December 31, 2018.



	September 30, 2019		December 31, 2018
	(in millions)
Gross amounts of assets presented in the Consolidated Balance Sheet	$	198	$	231
Net amounts of assets presented in the Consolidated Balance Sheet	198		231

Gross amounts of liabilities presented in the Consolidated Balance Sheet	12		15
Net amounts of liabilities presented in the Consolidated Balance Sheet	$	12	$	15

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:



	September 30, 2019		December 31, 2018
	(in millions)
Current assets: derivative instruments
Commodity contracts	$	140	$	231
Interest rate swaps	—		—
Total	$	140	$	231

Noncurrent assets: derivative instruments
Commodity contracts	$	38	$	—
Interest rate swaps	20		—
Total	$	58	$	—

Total assets	$	198	$	231

Current liabilities: derivative instruments
Commodity contracts	$	10	$	—
Interest rate swaps	—		—
Total	$	10	$	—

Noncurrent liabilities: derivative instruments
Commodity contracts	$	2	$	15
Interest rate swaps	—		—
Total	$	2	$	15

Total liabilities	$	12	$	15

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:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
	(in millions)
Change in fair value of open non-hedge derivative instruments:
Commodity contracts	$	146	$	(10	)	$	(50	)	$	(24	)
Interest rate swaps	20		—			20			—
Total	$	166	$	(10	)	$	(30	)	$	(24	)

Gain (loss) on settlement of non-hedge derivative instruments:
Commodity contracts	$	11	$	(38	)	$	33		$	(115	)
Interest rate swaps	—		—			—			—
Total	$	11	$	(38	)	$	33		$	(115	)

Gain (loss) on derivative instruments	$	177	$	(48	)	$	3		$	(139	)

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

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 FASB issued ASC 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 9—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 Viper’s cost method investment. The fair value of Viper’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 September 30, 2019 and December 31, 2018.:



	September 30, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in millions)
Assets:
Investment	$	18	$	—	$	—	$	14	$	—	$	—
Fixed price swaps	—		186		—		—		216		—
Liabilities:
Fixed price swaps	$	—	$	—	$	—	$	—	$	—	$	—

The following table summarizes the changes in fair value of Viper’s cost method investment during the periods presented:



	(in millions)
Value at December 31, 2018	$	14
Gain on investment	4
Value at September 30, 2019	$	18

Value at December 31, 2017	$	34
Impact of adoption of Accounting Standards Update 2016-01	(19		)
Gain on investment	5
Value at September 30, 2018	$	20

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:



	September 30, 2019				December 31, 2018
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(in millions)
Debt:
Revolving credit facility	$	1,629	$	1,629	$	1,490	$	1,490
4.625% Notes due 2021⁽¹⁾	$	400	$	411	$	400	$	393
7.320% Medium-term Notes, Series A, due 2022⁽¹⁾	$	21	$	22	$	20	$	21
4.750% Senior Notes due 2024	$	1,250	$	1,283	$	1,250	$	1,204
5.375% Senior Notes due 2025	$	800	$	837	$	800	$	782
7.350% Medium-term Notes, Series A, due 2027⁽¹⁾	$	11	$	11	$	10	$	11
7.125% Medium-term Notes, Series B, due 2028⁽¹⁾	$	108	$	111	$	100	$	102
Viper revolving credit facility	$	410	$	410	$	411	$	411
Rattler revolving credit facility	$	103	$	103	$	—	$	—
DrillCo Agreement	$	42	$	42	$	—	$	—


(1)	At the effective time of the Energen Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of the Energen Notes. These notes were marked to fair value with the excess being amortized.

The fair value of the revolving credit facility, Viper’s revolving credit facility and Rattler’s revolving credit facility approximates their carrying value based on borrowing rates available to the Company for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Senior Notes and the Energen Notes was determined using the September 30, 2019 quoted market price, a Level 1 classification in the fair value hierarchy.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LEASES

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

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 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 and nine months ended September 30, 2019:



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
	(in millions)
Operating lease costs	$	7	$	19

For the nine months ended September 30, 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 $19 million. During the nine months ended September 30, 2019, the Company recorded an additional $15 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 accrued liabilities and other long-term liabilities, respectively, on the Condensed Consolidated Balance Sheet. As of September 30, 2019, the operating right-of-use assets were $19 million and operating lease liabilities were $19 million, of which $13 million was classified as current. As of September 30, 2019, the weighted average remaining lease term was 1.6 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 September 30, 2019:



	As of September 30, 2019
	(in millions)
2019 (October - December)	$	7
2020	8
2021	4
2022	1
2023	—
Thereafter	—
Total lease payments	20
Less: interest	1
Present value of lease liabilities	$	19

For leases in which the Company is the lessor, the Company (i) retained classification of our historical leases as we are not required to reassess classification upon adoption of the new standard, (ii) expensed indirect leasing costs in connection with new or extended tenant leases, the recognition of which would have been deferred under prior accounting guidance and (iii) aggregated revenue from our lease components and non-lease components (comprised of tenant expense reimbursements) into revenue from rental properties.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is a party to various legal proceedings, disputes and claims arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Company, cannot be predicted with certainty, the Company believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Company’s financial condition, cash flows or results of operations. The Company’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Company’s assessment. The Company records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated.

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Third Quarter 2019 Dividend Declaration

On November 1, 2019, the Board of Directors of the Company declared a cash dividend for the third quarter of 2019 of $0.1875 per share of common stock, payable on November 22, 2019 to its stockholders of record at the close of business on November 15, 2019.

Commodity Contracts

Subsequent to September 30, 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 Crude Oil Brent.

The following tables present the derivative contracts entered into by the Company subsequent to September 30, 2019. When aggregating multiple contracts, the weighted average contract price is disclosed.



	January 2020 - December 2020
Oil Three-Way Collars	Brent
Volume (Bbls)	2,525,400
Short put price (per Bbl)	$	50.00
Floor price (per Bbl)	$	60.00
Ceiling price (per Bbl)	$	66.00

Drop-Down and Increase in the Borrowing Base under Viper LLC’s Revolving Credit Facility

On October 1, 2019, the Company completed a transaction to divest certain mineral and royalty interests to Viper for approximately 18.3 million of Viper’s newly-issued Class B units, approximately 18.3 million newly-issued units of Viper LLC and $190 million in cash, after giving effect to closing adjustments for net title benefits. Based on the volume weighted average sales price of Viper’s common units for the ten trading-day period ended July 26, 2019 of approximately $30.07, the transaction is valued at $740 million. See Note 4—Acquisitions for additional information regarding this divestiture.

Viper’s Notes Offering

On October 16, 2019, Viper completed an offering (the “Viper Notes Offering”) of $500 million in aggregate principal amount of its 5.375% Senior Notes due 2027 (the “Viper Notes”). Viper received net proceeds of approximately $492 million from the Viper Notes Offering. Viper loaned the gross proceeds to Viper LLC as described below. Viper LLC used the proceeds from the Viper Notes Offering to pay down borrowings under its revolving credit facility.

The Viper Notes are senior unsecured obligations of Viper, initially are guaranteed on a senior unsecured basis by Viper LLC, and will pay interest semi-annually. Neither the Company nor Viper’s General Partner guarantee the Viper Notes. In the future, each of Viper’s restricted subsidiaries that either (1) guarantees any of its or a guarantor’s other indebtedness or (2) is a domestic restricted subsidiary and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Viper Notes.

Amendment to Rattler Credit Agreement

On October 23, 2019, Rattler entered into a first amendment (the “First Amendment”) to the Rattler credit agreement with Rattler LLC, Wells Fargo Bank, National Association, as the administrative agent, and certain lenders from time to time party thereto. The First Amendment, among other things, provides Rattler LLC with additional flexibility to make investments in joint ventures and other third parties, including investments in the Wink to Webster project and the Joint Venture. Pursuant to the First Amendment, the Joint Venture is designated as an unrestricted subsidiary under the Credit Agreement.

REPORT OF BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

REPORT OF BUSINESS SEGMENTS

The Company reports its operations in two business segments: (i) the exploration and production segment, which is engaged in the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas and (ii) the midstream operations segment.

The following tables summarize the results of the Company's business segments during the periods presented:



	Exploration and Production		Midstream Services			Eliminations			Total
Three Months Ended September 30, 2019:	(in millions)
Third-party revenues	$	957	$	18		$	—		$	975
Intersegment revenues	—		97			(97		)	—
Total revenues	957		115			(97		)	975
Income from operations	321		52			(24		)	349
Other income (expense)	143		(1		)	(1		)	141
Provision for income taxes	99		3			—			102
Net income attributable to non-controlling interest	20		37			(37		)	20
Net income attributable to Diamondback Energy	$	345	$	11		$	12		$	368
Total assets	$	22,452	$	1,307		$	(206	)	$	23,553



	Exploration and Production			Midstream Services		Eliminations			Total
Three Months Ended September 30, 2018:	(in millions)
Third-party revenues	$	527		$	10	$	—		$	537
Intersegment revenues	—			39		(39		)	—
Total revenues	527			49		(39		)	537
Income from operations	268			23		(23		)	268
Other income (expense)	(65		)	—		—			(65		)
Provision for income taxes	43			—		—			43
Net income attributable to non-controlling interest	3			—		—			3
Net income attributable to Diamondback Energy	$	157		$	23	$	(23	)	$	157
Total assets	$	9,365		$	525	$	(83	)	$	9,807



	Exploration and Production			Midstream Services			Eliminations			Total
Nine Months Ended September 30, 2019:	(in millions)
Third-party revenues	$	2,802		$	58		$	—		$	2,860
Intersegment revenues	—			264			(264		)	—
Total revenues	2,802			322			(264		)	2,860
Income from operations	1,004			159			(84		)	1,079
Other income (expense)	(116		)	(2		)	(3		)	(121		)
Provision for income taxes	167			4			—			171
Net income attributable to non-controlling interest	60			52			(52		)	60
Net income attributable to Diamondback Energy	$	661		$	101		$	(35	)	$	727
Total assets	$	22,452		$	1,307		$	(206	)	$	23,553



	Exploration and Production			Midstream Services			Eliminations			Total
Nine Months Ended September 30, 2018:	(in millions)
Third-party revenues	$	1,509		$	34		$	—		$	1,543
Intersegment revenues	—			99			(99		)	—
Total revenues	1,509			133			(99		)	1,543
Income from operations	808			63			(55		)	816
Other income (expense)	(92		)	(2		)	—			(94		)
Provision for income taxes	83			—			—			83
Net income attributable to non-controlling interest	100			—			—			100
Net income attributable to Diamondback Energy	$	533		$	61		$	(55	)	$	539
Total assets	$	9,365		$	525		$	(83	)	$	9,807

GUARANTOR FINANCIAL STATEMENTS

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GUARANTOR FINANCIAL STATEMENTS

As of September 30, 2019, Diamondback E&P LLC, Diamondback O&G LLC and Energen Corporation and its subsidiaries (the “Guarantor Subsidiaries”) are guarantors under the 2024 Indenture and the 2025 Indenture. In connection with the issuance of the 2024 Senior Notes and the 2025 Senior Notes, Viper, Viper’s General Partner, Viper LLC and Rattler LLC were designated as Non-Guarantor Subsidiaries. The following presents condensed consolidated financial information for the Company (which for purposes of this Note 22 is referred to as the “Parent”), the Guarantor Subsidiaries and the Non–Guarantor Subsidiaries on a consolidated basis. Elimination entries presented are necessary to combine the entities. The information is presented in accordance with the requirements of Rule 3-10 under the SEC’s Regulation S-X. The financial information may not necessarily be indicative of results of operations, cash flows or financial position had the Guarantor Subsidiaries operated as independent entities. The Company has not presented separate financial and narrative information for each of the Guarantor Subsidiaries because it believes such financial and narrative information would not provide any additional information that would be material in evaluating the sufficiency of the Guarantor Subsidiaries.

The Rattler entities were not guarantors under the 2024 Senior Notes or the 2025 Senior Notes for the previous periods presented; therefore, the schedules that follow have been adjusted to reflect this correction of an immaterial change.



Condensed Consolidated Balance Sheet
September 30, 2019
(in millions)
						Non–
			Guarantor			Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	48	$	29		$	23		$	—		$	100
Accounts receivable, net	—		493			45			—			538
Accounts receivable - related party	—		—			44			(44		)	—
Intercompany receivable	4,223		—			—			(4,223		)	—
Inventories	—		32			13			—			45
Derivative instruments	—		140			—			—			140
Prepaid expenses and other	1		20			1			—			22
Total current assets	4,272		714			126			(4,267		)	845
Property and equipment:
Oil and natural gas properties, full cost method of accounting	—		22,964			2,037			(179		)	24,822
Midstream assets	—		—			884			—			884
Other property, equipment and land	—		61			91			—			152
Accumulated depletion, depreciation, amortization and impairment	—		(3,425		)	(353		)	(37		)	(3,815		)
Net property and equipment	—		19,600			2,659			(216		)	22,043
Funds held in escrow	—		—			7			—			7
Equity method investments	—		—			225			—			225
Derivative instruments	—		58			—			—			58
Investment in subsidiaries	12,460		—			—			(12,460		)	—
Deferred tax asset	—		—			158			—			158
Investment in real estate, net	—		—			111			—			111
Other assets	—		79			27			—			106
Total assets	$	16,732	$	20,451		$	3,313		$	(16,943	)	$	23,553
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—	$	233		$	—		$	—		$	233
Intercompany payable	—		4,267			—			(4,267		)	—
Accrued capital expenditures	—		385			42			—			427
Other accrued liabilities	39		228			37			—			304
Revenues and royalties payable	—		207			—			—			207
Derivative instruments	—		10			—			—			10
Total current liabilities	39		5,330			79			(4,267		)	1,181
Long-term debt	2,037		2,211			513			—			4,761
Derivative instruments	—		2			—			—			2
Asset retirement obligations	—		81			9			—			90
Deferred income taxes	606		1,408			5			—			2,019
Other long-term liabilities	—		11			—			—			11
Total liabilities	2,682		9,043			606			(4,267		)	8,064
Commitments and contingencies
Stockholders’ equity	14,050		11,408			1,518			(12,926		)	14,050
Non-controlling interest	—		—			1,189			250			1,439
Total equity	14,050		11,408			2,707			(12,676		)	15,489
Total liabilities and equity	$	16,732	$	20,451		$	3,313		$	(16,943	)	$	23,553



Condensed Consolidated Balance Sheet
December 31, 2018
(in millions)
						Non–
			Guarantor			Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	84	$	100		$	31		$	—		$	215
Accounts receivable, net	—		351			41			—			392
Accounts receivable - related party	—		—			9			(9		)	—
Intercompany receivable	4,469		195			—			(4,664		)	—
Inventories	—		28			9			—			37
Derivative instruments	—		231			—			—			231
Prepaid expenses and other	3		43			4			—			50
Total current assets	4,556		948			94			(4,673		)	925
Property and equipment:
Oil and natural gas properties, full cost method of accounting	—		20,675			1,717			(93		)	22,299
Midstream assets	—		284			416			—			700
Other property, equipment and land	—		71			76			—			147
Accumulated depletion, depreciation, amortization and impairment	—		(2,486		)	(276		)	(12		)	(2,774		)
Net property and equipment	—		18,544			1,933			(105		)	20,372
Equity method investments	—		1			—			—			1
Investment in subsidiaries	11,576		112			—			(11,688		)	—
Deferred tax asset	—		—			97			—			97
Investment in real estate, net	—		12			104			—			116
Other assets	—		68			17			—			85
Total assets	$	16,132	$	19,685		$	2,245		$	(16,466	)	$	21,596
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—	$	128		$	—		$	—		$	128
Intercompany payable	—		4,673			—			(4,673		)	—
Accrued capital expenditures	—		495			—			—			495
Other accrued liabilities	14		170			69			—			253
Revenues and royalties payable	—		143			—			—			143
Total current liabilities	14		5,609			69			(4,673		)	1,019
Long-term debt	2,036		2,017			411			—			4,464
Derivative instruments	—		15			—			—			15
Asset retirement obligations	—		136			—			—			136
Deferred income taxes	382		1,403			—			—			1,785
Other long-term liabilities	—		10			—			—			10
Total liabilities	2,432		9,190			480			(4,673		)	7,429
Commitments and contingencies
Stockholders’ equity	13,700		10,495			1,070			(11,565		)	13,700
Non-controlling interest	—		—			695			(228		)	467
Total equity	13,700		10,495			1,765			(11,793		)	14,167
Total liabilities and equity	$	16,132	$	19,685		$	2,245		$	(16,466	)	$	21,596



Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2019
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	817		$	—		$	65		$	882
Natural gas sales	—			14			—			2			16
Natural gas liquid sales	—			54			—			4			58
Royalty income	—			—			71			(71		)	—
Lease bonus	—			—			1			—			1
Midstream services	—			—			112			(96		)	16
Other operating income	—			—			3			(1		)	2
Total revenues	—			885			187			(97		)	975
Costs and expenses:
Lease operating expenses	—			174			—			(46		)	128
Production and ad valorem taxes	—			56			5			—			61
Gathering and transportation	—			29			—			(4		)	25
Midstream services	—			—			47			(21		)	26
Depreciation, depletion and amortization	—			329			29			7			365
General and administrative expenses	3			17			3			(4		)	19
Asset retirement obligation accretion	—			—			1			—			1
Other operating expense	—			(1		)	2			—			1
Total costs and expenses	3			604			87			(68		)	626
Income (loss) from operations	(3		)	281			100			(29		)	349
Other income (expense)
Interest expense, net	(11		)	(22		)	(5		)	—			(38		)
Other income (expense), net	1			3			—			(2		)	2
Gain on derivative instruments, net	—			177			—			—			177
Total other income (expense), net	(10		)	158			(5		)	(2		)	141
Income (loss) before income taxes	(13		)	439			95			(31		)	490
Provision for income taxes	107			—			(5		)	—			102
Net income (loss)	(120		)	439			100			(31		)	388
Net income (loss) attributable to non-controlling interest	—			—			80			(60		)	20
Net income (loss) attributable to Diamondback Energy, Inc.	$	(120	)	$	439		$	20		$	29		$	368



Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2018
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	391		$	—		$	63		$	454
Natural gas sales	—			10			—			4			14
Natural gas liquid sales	—			50			—			7			57
Royalty income	—			—			74			(74		)	—
Lease bonus	—			—			4			(3		)	1
Midstream services	—			—			46			(38		)	8
Other operating income	—			—			4			(1		)	3
Total revenues	—			451			128			(42		)	537
Costs and expenses:
Lease operating expenses	—			59			—			(10		)	49
Production and ad valorem taxes	—			28			5			—			33
Gathering and transportation	—			10			1			(5		)	6
Midstream services	—			1			19			—			20
Depreciation, depletion and amortization	—			119			23			4			146
General and administrative expenses	7			9			1			(3		)	14
Other operating expense	—			(1		)	2			—			1
Total costs and expenses	7			225			51			(14		)	269
Income (loss) from operations	(7		)	226			77			(28		)	268
Other income (expense)
Interest expense, net	(11		)	(4		)	(4		)	—			(19		)
Other income (expense), net	1			1			1			(1		)	2
Loss on derivative instruments, net	—			(48		)	—			—			(48		)
Total other expense, net	(10		)	(51		)	(3		)	(1		)	(65		)
Income (loss) before income taxes	(17		)	175			74			(29		)	203
Provision for income taxes	42			—			1			—			43
Net income (loss)	(59		)	175			73			(29		)	160
Net income (loss) attributable to non-controlling interest	—			—			49			(46		)	3
Net income (loss) attributable to Diamondback Energy, Inc.	$	(59	)	$	175		$	24		$	17		$	157



Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2019
(In millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	2,389		$	—		$	183		$	2,572
Natural gas sales	—			31			—			5			36
Natural gas liquid sales	—			176			—			14			190
Royalty income	—			—			202			(202		)	—
Lease bonus	—			—			4			—			4
Midstream services	—			—			312			(261		)	51
Other operating income	—			—			10			(3		)	7
Total revenues	—			2,596			528			(264		)	2,860
Costs and expenses:
Lease operating expenses	—			465			—			(101		)	364
Production and ad valorem taxes	—			167			13			—			180
Gathering and transportation	—			65			—			(11		)	54
Midstream services	—			—			122			(62		)	60
Depreciation, depletion and amortization	—			943			82			21			1,046
General and administrative expenses	27			39			11			(9		)	68
Asset retirement obligation accretion	—			5			1			—			6
Other operating expense	—			—			3			—			3
Total costs and expenses	27			1,684			232			(162		)	1,781
Income (loss) from operations	(27		)	912			296			(102		)	1,079
Other income (expense)
Interest expense, net	(32		)	(89		)	(12		)	—			(133		)
Other income (expense), net	2			7			1			(5		)	5
Gain on derivative instruments, net	—			3			—			—			3
Gain on revaluation of investment	—			—			4			—			4
Total other income (expense), net	(30		)	(79		)	(7		)	(5		)	(121		)
Income (loss) before income taxes	(57		)	833			289			(107		)	958
Provision for (benefit from) income taxes	209			—			(38		)	—			171
Net income (loss)	(266		)	833			327			(107		)	787
Net income (loss) attributable to non-controlling interest	—			—			181			(121		)	60
Net income (loss) attributable to Diamondback Energy, Inc.	$	(266	)	$	833		$	146		$	14		$	727



Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2018
(In millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	1,149		$	—		$	185		$	1,334
Natural gas sales	—			31			—			9			40
Natural gas liquid sales	—			116			—			17			133
Royalty income	—			—			211			(211		)	—
Lease bonus	—			—			5			(3		)	2
Midstream services	—			—			124			(97		)	27
Other operating income	—			—			9			(2		)	7
Total revenues	—			1,296			349			(102		)	1,543
Costs and expenses:
Lease operating expenses	—			159			—			(30		)	129
Production and ad valorem taxes	—			79			14			—			93
Gathering and transportation	—			28			1			(12		)	17
Midstream services	—			—			49			—			49
Depreciation, depletion and amortization	—			319			60			12			391
General and administrative expenses	21			22			6			(4		)	45
Asset retirement obligation accretion	—			1			—			—			1
Other operating expenses	—			—			2			—			2
Total costs and expenses	21			608			132			(34		)	727
Income (loss) from operations	(21		)	688			217			(68		)	816
Other income (expense)
Interest expense, net	(30		)	(10		)	(9		)	—			(49		)
Other income (expense), net	1			91			(1		)	(2		)	89
Loss on derivative instruments, net	—			(139		)	—			—			(139		)
Gain on revaluation of investment	—			—			5			—			5
Total other expense, net	(29		)	(58		)	(5		)	(2		)	(94		)
Income (loss) before income taxes	(50		)	630			212			(70		)	722
Provision for (benefit from) income taxes	154			—			(71		)	—			83
Net income (loss)	(204		)	630			283			(70		)	639
Net income attributable to non-controlling interest	—			—			78			22			100
Net income (loss) attributable to Diamondback Energy, Inc.	$	(204	)	$	630		$	205		$	(92	)	$	539



Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2019
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(3	)	$	1,529		$	326		$	—		$	1,852
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(1,987		)	—			—			(1,987		)
Additions to midstream assets	—			—			(186		)	—			(186		)
Purchase of other property, equipment and land	—			(8		)	—			—			(8		)
Acquisition of leasehold interests	—			(311		)	—			—			(311		)
Acquisition of mineral interests	—			—			(320		)	—			(320		)
Proceeds from sale of assets	—			301			—			—			301
Investment in real estate	—			—			(1		)	—			(1		)
Funds held in escrow	—			—			(7		)	—			(7		)
Equity investments	—			(149		)	(76		)	—			(225		)
Net cash used in investing activities	—			(2,154		)	(590		)	—			(2,744		)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	—			930			479			—			1,409
Repayment under credit facility	—			(789		)	(379		)	—			(1,168		)
Proceeds from joint venture	—			42			—			—			42
Debt issuance costs	(116		)	114			(5		)	—			(7		)
Public offering costs	—			—			(40		)	—			(40		)
Proceeds from public offerings	—			—			1,106			—			1,106
Distribution to parent	—			—			(727		)	727			—
Contributions from subsidiaries	—			727			—			(727		)	—
Distributions from subsidiary	99			—			—			(99		)	—
Proceeds from exercise of stock options	9			—			—			—			9
Repurchased for tax withholdings	(13		)	—			—			—			(13		)
Repurchased as part of share buyback	(400		)	—			—			—			(400		)
Dividends to stockholders	(82		)	—			—			—			(82		)
Distributions to non-controlling interest	—			—			(178		)	99			(79		)
Intercompany transfers	470			(470		)	—			—			—
Net cash (used in) provided by financing activities	(33		)	554			256			—			777
Net increase (decrease) in cash and cash equivalents	(36		)	(71		)	(8		)	—			(115		)
Cash and cash equivalents at beginning of period	84			100			31			—			215
Cash and cash equivalents at end of period	$	48		$	29		$	23		$	—		$	100



Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2018
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	—		$	861		$	292		$	—		$	1,153
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(1,010		)	—			—			(1,010		)
Additions to midstream assets	—			(21		)	(109		)	—			(130		)
Purchase of other property, equipment and land	—			3			(5		)	—			(2		)
Acquisition of leasehold interests	—			(186		)	—			—			(186		)
Acquisition of mineral interests	—			170			(506		)	—			(336		)
Proceeds from sale of assets	—			6			1			—			7
Investment in real estate	—			(111		)	—			—			(111		)
Funds held in escrow	—			(51		)	—			—			(51		)
Intercompany transfers	(22		)	22			—			—			—
Net cash used in investing activities	(22		)	(1,178		)	(619		)	—			(1,819		)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	—			471			557			—			1,028
Repayment under credit facility	—			(868		)	(354		)	—			(1,222		)
Proceeds from senior notes	1,062			—			—			—			1,062
Debt issuance costs	(14		)	—			—			—			(14		)
Public offering costs	—			—			(3		)	—			(3		)
Proceeds from public offerings	—			—			306			—			306
Contributions to subsidiaries	(1		)	—			(1		)	2			—
Contributions by members	—			—			2			(2		)	—
Distributions from subsidiary	113			—			—			(113		)	—
Dividends to stockholders	(25		)	—			—			—			(25		)
Distributions to non-controlling interest	—			—			(182		)	113			(69		)
Intercompany transfers	(696		)	695			1			—			—
Net cash provided by financing activities	439			298			326			—			1,063
Net increase (decrease) in cash and cash equivalents	417			(19		)	(1		)	—			397
Cash and cash equivalents at beginning of period	54			34			24			—			112
Cash and cash equivalents at end of period	$	471		$	15		$	23		$	—		$	509

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation.
Use of Estimates	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.
New Accounting Pronouncements	New Accounting Pronouncements Recently Adopted Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 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 FASB issued ASU 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 FASB issued ASU 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 FASB issued ASU 2018-11, “Leases (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 FASB issued ASU 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 18—Leases for more information on the adoption of these standards. In June 2018, the FASB issued ASU 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 FASB issued ASU 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. In July 2019, the FASB issued ASU 2019-07, “Codification Updates to SEC Sections”. This update simplifies the guidance in various sections that was duplicative, redundant or outdated. The Company adopted this update effective July 2019. It did not have a material impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. In August 2018, the FASB issued ASU 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In August 2018, the FASB issued ASU 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. In November 2018, the FASB issued ASU 2018-19, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses”. This update clarifies that receivables arising from operating leases are not within the scope of this topic, but rather Topic 842, Leases. 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 believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. In April 2019, the FASB issued ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”. This update clarifies guidance previously issued in ASU 2016-01, ASU 2016-13 and ASU 2017-12. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the updates to the referenced standards will have an impact on its financial position, results of operations or liquidity. In May 2019, the FASB issued ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326)”. This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity.
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 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 ASC 606. Prior-period performance obligations The Company records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The Company records the differences between its estimates and the actual amounts received for product sales in the month that payment is received from the purchaser. The Company has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months and nine months ended September 30, 2019, revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Company believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the revenue related to expected sales volumes and prices for those properties are estimated and recorded.
Fair Value Measurement	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Company uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement.

ACQUISITIONS AND DIVESTITURES (Tables)

9 Months Ended

Sep. 30, 2019

Business Combinations [Abstract]

Schedule of preliminary purchase price allocation

The following table sets forth the Company’s preliminary purchase price allocation as of September 30, 2019:



	(In millions)
Consideration:
Fair value of the Company's common stock issued	$	7,136
Total consideration	$	7,136

Fair value of liabilities assumed:
Current liabilities	$	377
Asset retirement obligation	105
Long-term debt	1,099
Noncurrent derivative instruments	17
Deferred income taxes	1,408
Other long-term liabilities	7
Amount attributable to liabilities assumed	$	3,013

Fair value of assets acquired:
Total current assets	$	311
Oil and natural gas properties	9,313
Midstream assets	263
Investment in real estate	11
Other property, equipment and land	55
Asset retirement obligation	105
Other postretirement assets	3
Noncurrent income tax receivable, net	76
Other long term assets	12
Amount attributable to assets acquired	$	10,149

Acquisition pro forma information



	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
	(in millions, except per share amounts)
Revenues	$	919	$	2,655
Income from operations	$	431	$	1,280
Net income	$	156	$	727
Basic earnings per common share	$	0.97	$	4.50
Diluted earnings per common share	$	0.96	$	4.49

REAL ESTATE ASSETS (Tables)

9 Months Ended

Sep. 30, 2019

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:



	Estimated Useful Lives	September 30, 2019			December 31, 2018
	(Years)	(in millions)
Buildings	30	$	102		$	103
Tenant improvements	15	5			4
Land	N/A	2			1
Land improvements	15	1			1
Total real estate assets		110			109
Less: accumulated depreciation		(8		)	(4		)
Total investment in land and buildings, net		$	102		$	105



	Weighted Average Useful Lives	September 30, 2019			December 31, 2018
	(Months)	(in millions)
In-place lease intangibles	45	$	11		$	11
Less: accumulated amortization		(5		)	(3		)
In-place lease intangibles, net		6			8

Above-market lease intangibles	45	4			4
Less: accumulated amortization		(1		)	(1		)
Above-market lease intangibles, net		3			3
Total intangible lease assets, net		$	9		$	11

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment includes the following:



	September 30,			December 31,
	2019			2018

	(in millions)
Oil and natural gas properties:
Subject to depletion	$	15,358		$	12,629
Not subject to depletion	9,464			9,670
Gross oil and natural gas properties	24,822			22,299
Accumulated depletion	(2,605		)	(1,599		)
Accumulated impairment	(1,144		)	(1,144		)
Oil and natural gas properties, net	21,073			19,556
Midstream assets	884			700
Other property, equipment and land	152			147
Accumulated depreciation	(66		)	(31		)
Property and equipment, net of accumulated depreciation, depletion, amortization and impairment	$	22,043		$	20,372

Balance of costs not subject to depletion:
Incurred in 2019	$	513
Incurred in 2018	5,844
Incurred in 2017	2,438
Incurred in 2016	669
Total not subject to depletion	$	9,464

Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2019

Asset Retirement Obligation [Abstract]

Asset retirement obligations

The following table describes the changes to the Company’s asset retirement obligation liability for the following periods:



	Nine Months Ended September 30,
	2019			2018

	(in millions)
Asset retirement obligations, beginning of period	$	136		$	21
Additional liabilities incurred	6			2
Liabilities acquired	3			—
Liabilities settled	(61		)	(1		)
Accretion expense	6			1
Revisions in estimated liabilities	—			1
Asset retirement obligations, end of period	90			24
Less current portion	—			—
Asset retirement obligations - long-term	$	90		$	24

Debt (Tables)

9 Months Ended

Sep. 30, 2019

Debt Disclosure [Abstract]

Schedule of long-term debt

Long-term debt consisted of the following as of the dates indicated:



	September 30,			December 31,
	2019			2018

	(in millions)
4.625% Notes due 2021⁽¹⁾	$	400		$	400
7.320% Medium-term Notes, Series A, due 2022⁽¹⁾	21			20
4.750 % Senior Notes due 2024	1,250			1,250
5.375 % Senior Notes due 2025	800			800
7.350% Medium-term Notes, Series A, due 2027⁽¹⁾	11			10
7.125% Medium-term Notes, Series B, due 2028⁽¹⁾	108			100
DrillCo Agreement	42			—
Unamortized debt issuance costs	(22		)	(27		)
Unamortized premium costs	9			10
Revolving credit facility	1,629			1,490
Viper revolving credit facility	410			411
Rattler revolving credit facility	103			—
Total long-term debt	$	4,761		$	4,464


(1)	At the effective time of the Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of these notes (the “Energen Notes”).

Financial covenants

The Rattler credit agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below:



Financial Covenant		Required Ratio
Consolidated Total Leverage Ratio commencing with the fiscal quarter ending September 30, 2019		Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Rattler credit agreement) is applicable, then not greater than 5.25 to 1.00)
Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Rattler credit agreement) is made		Not greater than 3.50 to 1.00
Consolidated Interest Coverage Ratio (as defined in the Rattler credit agreement) commencing with the fiscal quarter ending September 30, 2019		Not less than 2.50 to 1.00

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.



Financial Covenant (prior to the investment grade changeover date)		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

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:



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

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 210
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-Paragraph 1
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Capital Stock and Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2019

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:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
	($ in millions, except per share amounts, shares in thousands)
Net income attributable to common stock	$	368	$	157	$	727	$	539
Weighted average common shares outstanding
Basic weighted average common units outstanding	162,543		98,638		164,070		98,603
Effect of dilutive securities:
Potential common shares issuable	237		180		396		217
Diluted weighted average common shares outstanding	162,780		98,818		164,466		98,820
Basic net income attributable to common stock	$	2.27	$	1.59	$	4.44	$	5.47
Diluted net income attributable to common stock	$	2.26	$	1.59	$	4.42	$	5.45

Schedule of antidilutive securities excluded from computation of earnings per share



	Three Months Ended September 30,		Nine Months Ended September 30,
	2019	2018	2019	2018
	(in thousands)
Restricted stock units	51	13	40	2

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

The effects of stock-based compensation plans and related costs

The following table presents the effects of the equity compensation plans and related costs:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019		2018
	(in millions)
General and administrative expenses	$	4		$	5	$	27	$	18
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties	(1		)	2		9		7

Summary of restricted stock units

The following table presents the Company’s restricted stock units activity under the Equity Plan during the nine months ended September 30, 2019:



	Restricted Stock Awards & Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	324,224		$	116.01
Granted	468,778		$	106.85
Vested	(217,300	)	$	100.47
Forfeited	(81,962	)	$	107.35
Unvested at September 30, 2019	493,740		$	107.54

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.



	2019
Grant-date fair value (3-year vesting)	$	137.22
Grant-date fair value (5-year vesting)	$	132.48
Risk-free rate	2.55		%
Company volatility	35.00		%

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 nine months ended September 30, 2019:



	Performance Restricted Stock Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	196,203		$	169.76
Granted	356,227		$	131.30
Vested	(123,546	)	$	60.70
Forfeited	(103,635	)	$	155.23
Unvested at September 30, 2019⁽¹⁾	325,249		$	150.63

(1)

A maximum of 650,498 units could be awarded based upon the Company’s final TSR ranking.

Schedule of share-based compensation, stock appreciation rights award activity

The following table presents a summary of stock appreciation rights activity during the nine months ended September 30, 2019:



	Shares		Weighted Average Exercise Price
Outstanding at December 31, 2018	57,721		$	22.12
Exercised	(11,265	)	$	70.64
Expired	(3,775	)	$	96.91
Outstanding at September 30, 2019	42,681		$	90.84

Schedule of stock options activity

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.



			Weighted Average
			Exercise		Remaining	Intrinsic
	Options		Price		Term	Value
					(in years)	(in millions)
Outstanding at December 31, 2018	332,387		$	95.04
Exercised	(116,044	)	$	82.29
Outstanding at September 30, 2019	216,343		$	89.90	1.92	$	—

Vested and Expected to vest at September 30, 2019	216,343		$	89.90	1.92	$	—
Exercisable at September 30, 2019	216,343		$	89.90	1.92	$	—

Phantom units activity

The following table presents the phantom unit activity under the Viper LTIP for the nine months ended September 30, 2019:



	Phantom Units		Weighted Average Grant-Date Fair Value
Unvested at December 31, 2018	125,053		$	23.44
Granted	33,886		$	32.78
Vested	(81,124	)	$	23.34
Forfeited	(1,028	)	$	42.50
Unvested at September 30, 2019	76,787		$	27.42

The following table presents the phantom unit activity under the Rattler LTIP for the nine months ended September 30, 2019:



	Phantom Units		Weighted Average Grant-Date Fair Value
Unvested at May 28, 2019	—		$	—
Granted	2,248,572		$	19.20
Forfeited	(57,143	)	$	19.21
Unvested at September 30, 2019	2,191,429		$	19.20

Derivatives (Tables)

9 Months Ended

Sep. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative contracts

As of September 30, 2019, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.



	2019				2020				2021
	Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)
Oil Swaps - WTI Cushing	2,710,000	$	61.21		4,388,000	$	57.87		—	$	—
Oil Swaps - WTI Magellan East Houston	920,000	$	63.47		2,196,000	$	62.80		—	$	—
Oil Swaps - BRENT	644,000	$	67.71		4,205,000	$	62.72		—	$	—
Oil Basis Swaps - WTI Cushing	4,140,000	$	(5.52	)	15,120,000	$	(1.21	)	—	$	—
Natural Gas Swaps - Henry Hub	6,440,000	$	3.06		10,980,000	$	2.55		—	$	—
Natural Gas Swaps - Waha Hub	—	$	—		18,300,000	$	1.67		—	$	—
Natural Gas Basis Swaps - Waha Hub	6,440,000	$	(1.56	)	14,640,000	$	(1.10	)	36,500,000	$	(0.68	)
Natural Gas Liquid Swaps - Mont Belvieu	690,000	$	27.30		—	$	—		—	$	—



	2019						2020
Oil Three-Way Collars	WTI Cushing		Brent		WTI Magellan East Houston		WTI Cushing		Brent		WTI Magellan East Houston
Volume (Bbls)	1,440,000		552,000		460,000		6,842,200		9,278,100		5,124,000
Short put price (per Bbl)	$	35.94	$	51.67	$	50.00	$	44.20	$	50.00	$	50.00
Floor price (per Bbl)	$	45.94	$	61.67	$	60.00	$	54.20	$	60.00	$	60.00
Ceiling price (per Bbl)	$	61.65	$	78.47	$	66.10	$	65.42	$	72.18	$	68.61



Gas Swap Double-Up - Waha Hub	2020
Volume (Mcf)	10,980,000
Swap price (per Mcf)	$	1.70
Option price	$	1.70

The following table summarizes the Company’s interest rate swaps and treasury locks as of September 30, 2019:



Type	Effective Date	Termination Date	Notional Amount (in millions)		Interest Rate
Treasury Lock	August 23, 2019	August 24, 2020	$	250	2.1509	%
Treasury Lock	August 23, 2019	August 24, 2020	$	250	1.6563	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.59675	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.615	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	500	1.567	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.555	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.3565	%



	January 2020 - December 2020
Oil Three-Way Collars	Brent
Volume (Bbls)	2,525,400
Short put price (per Bbl)	$	50.00
Floor price (per Bbl)	$	60.00
Ceiling price (per Bbl)	$	66.00

Schedule of netting offsets of derivative assets and liabilities



	September 30, 2019		December 31, 2018
	(in millions)
Gross amounts of assets presented in the Consolidated Balance Sheet	$	198	$	231
Net amounts of assets presented in the Consolidated Balance Sheet	198		231

Gross amounts of liabilities presented in the Consolidated Balance Sheet	12		15
Net amounts of liabilities presented in the Consolidated Balance Sheet	$	12	$	15

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:



	September 30, 2019		December 31, 2018
	(in millions)
Current assets: derivative instruments
Commodity contracts	$	140	$	231
Interest rate swaps	—		—
Total	$	140	$	231

Noncurrent assets: derivative instruments
Commodity contracts	$	38	$	—
Interest rate swaps	20		—
Total	$	58	$	—

Total assets	$	198	$	231

Current liabilities: derivative instruments
Commodity contracts	$	10	$	—
Interest rate swaps	—		—
Total	$	10	$	—

Noncurrent liabilities: derivative instruments
Commodity contracts	$	2	$	15
Interest rate swaps	—		—
Total	$	2	$	15

Total liabilities	$	12	$	15

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:



	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2018			2019			2018
	(in millions)
Change in fair value of open non-hedge derivative instruments:
Commodity contracts	$	146	$	(10	)	$	(50	)	$	(24	)
Interest rate swaps	20		—			20			—
Total	$	166	$	(10	)	$	(30	)	$	(24	)

Gain (loss) on settlement of non-hedge derivative instruments:
Commodity contracts	$	11	$	(38	)	$	33		$	(115	)
Interest rate swaps	—		—			—			—
Total	$	11	$	(38	)	$	33		$	(115	)

Gain (loss) on derivative instruments	$	177	$	(48	)	$	3		$	(139	)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Topic 815
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2019 and December 31, 2018.:



	September 30, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
	(in millions)
Assets:
Investment	$	18	$	—	$	—	$	14	$	—	$	—
Fixed price swaps	—		186		—		—		216		—
Liabilities:
Fixed price swaps	$	—	$	—	$	—	$	—	$	—	$	—

The following table summarizes the changes in fair value of Viper’s cost method investment during the periods presented:



	(in millions)
Value at December 31, 2018	$	14
Gain on investment	4
Value at September 30, 2019	$	18

Value at December 31, 2017	$	34
Impact of adoption of Accounting Standards Update 2016-01	(19		)
Gain on investment	5
Value at September 30, 2018	$	20

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:



	September 30, 2019				December 31, 2018
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
	(in millions)
Debt:
Revolving credit facility	$	1,629	$	1,629	$	1,490	$	1,490
4.625% Notes due 2021⁽¹⁾	$	400	$	411	$	400	$	393
7.320% Medium-term Notes, Series A, due 2022⁽¹⁾	$	21	$	22	$	20	$	21
4.750% Senior Notes due 2024	$	1,250	$	1,283	$	1,250	$	1,204
5.375% Senior Notes due 2025	$	800	$	837	$	800	$	782
7.350% Medium-term Notes, Series A, due 2027⁽¹⁾	$	11	$	11	$	10	$	11
7.125% Medium-term Notes, Series B, due 2028⁽¹⁾	$	108	$	111	$	100	$	102
Viper revolving credit facility	$	410	$	410	$	411	$	411
Rattler revolving credit facility	$	103	$	103	$	—	$	—
DrillCo Agreement	$	42	$	42	$	—	$	—


(1)	At the effective time of the Energen Merger, Energen became a wholly owned subsidiary of the Company and remained the issuer of the Energen Notes. These notes were marked to fair value with the excess being amortized.

LEASES (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of operating lease costs

The following table summarizes operating lease costs for the three months and nine months ended September 30, 2019:



	Three Months Ended September 30, 2019		Nine Months Ended September 30, 2019
	(in millions)
Operating lease costs	$	7	$	19

Schedule of undiscounted cash flows owned by company to lessors pursuant to contractual agreements



	As of September 30, 2019
	(in millions)
2019 (October - December)	$	7
2020	8
2021	4
2022	1
2023	—
Thereafter	—
Total lease payments	20
Less: interest	1
Present value of lease liabilities	$	19

SUBSEQUENT EVENTS (Tables)

9 Months Ended

Sep. 30, 2019

Subsequent Events [Abstract]

Schedule of derivative contracts by Company subsequent aggregating weighted average contract

As of September 30, 2019, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.



	2019				2020				2021
	Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)			Volume (Bbls/MMBtu)	Fixed Price Swap (per Bbl/MMBtu)
Oil Swaps - WTI Cushing	2,710,000	$	61.21		4,388,000	$	57.87		—	$	—
Oil Swaps - WTI Magellan East Houston	920,000	$	63.47		2,196,000	$	62.80		—	$	—
Oil Swaps - BRENT	644,000	$	67.71		4,205,000	$	62.72		—	$	—
Oil Basis Swaps - WTI Cushing	4,140,000	$	(5.52	)	15,120,000	$	(1.21	)	—	$	—
Natural Gas Swaps - Henry Hub	6,440,000	$	3.06		10,980,000	$	2.55		—	$	—
Natural Gas Swaps - Waha Hub	—	$	—		18,300,000	$	1.67		—	$	—
Natural Gas Basis Swaps - Waha Hub	6,440,000	$	(1.56	)	14,640,000	$	(1.10	)	36,500,000	$	(0.68	)
Natural Gas Liquid Swaps - Mont Belvieu	690,000	$	27.30		—	$	—		—	$	—



	2019						2020
Oil Three-Way Collars	WTI Cushing		Brent		WTI Magellan East Houston		WTI Cushing		Brent		WTI Magellan East Houston
Volume (Bbls)	1,440,000		552,000		460,000		6,842,200		9,278,100		5,124,000
Short put price (per Bbl)	$	35.94	$	51.67	$	50.00	$	44.20	$	50.00	$	50.00
Floor price (per Bbl)	$	45.94	$	61.67	$	60.00	$	54.20	$	60.00	$	60.00
Ceiling price (per Bbl)	$	61.65	$	78.47	$	66.10	$	65.42	$	72.18	$	68.61



Gas Swap Double-Up - Waha Hub	2020
Volume (Mcf)	10,980,000
Swap price (per Mcf)	$	1.70
Option price	$	1.70

The following table summarizes the Company’s interest rate swaps and treasury locks as of September 30, 2019:



Type	Effective Date	Termination Date	Notional Amount (in millions)		Interest Rate
Treasury Lock	August 23, 2019	August 24, 2020	$	250	2.1509	%
Treasury Lock	August 23, 2019	August 24, 2020	$	250	1.6563	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.59675	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.615	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	500	1.567	%
Interest Rate Swap	December 31, 2020	December 31, 2050	$	250	1.555	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.3565	%



	January 2020 - December 2020
Oil Three-Way Collars	Brent
Volume (Bbls)	2,525,400
Short put price (per Bbl)	$	50.00
Floor price (per Bbl)	$	60.00
Ceiling price (per Bbl)	$	66.00

- Definition

+ References

+ Details

REPORT OF BUSINESS SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting [Abstract]

Results of the company business segments

The following tables summarize the results of the Company's business segments during the periods presented:



	Exploration and Production		Midstream Services			Eliminations			Total
Three Months Ended September 30, 2019:	(in millions)
Third-party revenues	$	957	$	18		$	—		$	975
Intersegment revenues	—		97			(97		)	—
Total revenues	957		115			(97		)	975
Income from operations	321		52			(24		)	349
Other income (expense)	143		(1		)	(1		)	141
Provision for income taxes	99		3			—			102
Net income attributable to non-controlling interest	20		37			(37		)	20
Net income attributable to Diamondback Energy	$	345	$	11		$	12		$	368
Total assets	$	22,452	$	1,307		$	(206	)	$	23,553



	Exploration and Production			Midstream Services		Eliminations			Total
Three Months Ended September 30, 2018:	(in millions)
Third-party revenues	$	527		$	10	$	—		$	537
Intersegment revenues	—			39		(39		)	—
Total revenues	527			49		(39		)	537
Income from operations	268			23		(23		)	268
Other income (expense)	(65		)	—		—			(65		)
Provision for income taxes	43			—		—			43
Net income attributable to non-controlling interest	3			—		—			3
Net income attributable to Diamondback Energy	$	157		$	23	$	(23	)	$	157
Total assets	$	9,365		$	525	$	(83	)	$	9,807



	Exploration and Production			Midstream Services			Eliminations			Total
Nine Months Ended September 30, 2019:	(in millions)
Third-party revenues	$	2,802		$	58		$	—		$	2,860
Intersegment revenues	—			264			(264		)	—
Total revenues	2,802			322			(264		)	2,860
Income from operations	1,004			159			(84		)	1,079
Other income (expense)	(116		)	(2		)	(3		)	(121		)
Provision for income taxes	167			4			—			171
Net income attributable to non-controlling interest	60			52			(52		)	60
Net income attributable to Diamondback Energy	$	661		$	101		$	(35	)	$	727
Total assets	$	22,452		$	1,307		$	(206	)	$	23,553



	Exploration and Production			Midstream Services			Eliminations			Total
Nine Months Ended September 30, 2018:	(in millions)
Third-party revenues	$	1,509		$	34		$	—		$	1,543
Intersegment revenues	—			99			(99		)	—
Total revenues	1,509			133			(99		)	1,543
Income from operations	808			63			(55		)	816
Other income (expense)	(92		)	(2		)	—			(94		)
Provision for income taxes	83			—			—			83
Net income attributable to non-controlling interest	100			—			—			100
Net income attributable to Diamondback Energy	$	533		$	61		$	(55	)	$	539
Total assets	$	9,365		$	525		$	(83	)	$	9,807

Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed consolidated balance sheet



Condensed Consolidated Balance Sheet
September 30, 2019
(in millions)
						Non–
			Guarantor			Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	48	$	29		$	23		$	—		$	100
Accounts receivable, net	—		493			45			—			538
Accounts receivable - related party	—		—			44			(44		)	—
Intercompany receivable	4,223		—			—			(4,223		)	—
Inventories	—		32			13			—			45
Derivative instruments	—		140			—			—			140
Prepaid expenses and other	1		20			1			—			22
Total current assets	4,272		714			126			(4,267		)	845
Property and equipment:
Oil and natural gas properties, full cost method of accounting	—		22,964			2,037			(179		)	24,822
Midstream assets	—		—			884			—			884
Other property, equipment and land	—		61			91			—			152
Accumulated depletion, depreciation, amortization and impairment	—		(3,425		)	(353		)	(37		)	(3,815		)
Net property and equipment	—		19,600			2,659			(216		)	22,043
Funds held in escrow	—		—			7			—			7
Equity method investments	—		—			225			—			225
Derivative instruments	—		58			—			—			58
Investment in subsidiaries	12,460		—			—			(12,460		)	—
Deferred tax asset	—		—			158			—			158
Investment in real estate, net	—		—			111			—			111
Other assets	—		79			27			—			106
Total assets	$	16,732	$	20,451		$	3,313		$	(16,943	)	$	23,553
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—	$	233		$	—		$	—		$	233
Intercompany payable	—		4,267			—			(4,267		)	—
Accrued capital expenditures	—		385			42			—			427
Other accrued liabilities	39		228			37			—			304
Revenues and royalties payable	—		207			—			—			207
Derivative instruments	—		10			—			—			10
Total current liabilities	39		5,330			79			(4,267		)	1,181
Long-term debt	2,037		2,211			513			—			4,761
Derivative instruments	—		2			—			—			2
Asset retirement obligations	—		81			9			—			90
Deferred income taxes	606		1,408			5			—			2,019
Other long-term liabilities	—		11			—			—			11
Total liabilities	2,682		9,043			606			(4,267		)	8,064
Commitments and contingencies
Stockholders’ equity	14,050		11,408			1,518			(12,926		)	14,050
Non-controlling interest	—		—			1,189			250			1,439
Total equity	14,050		11,408			2,707			(12,676		)	15,489
Total liabilities and equity	$	16,732	$	20,451		$	3,313		$	(16,943	)	$	23,553



Condensed Consolidated Balance Sheet
December 31, 2018
(in millions)
						Non–
			Guarantor			Guarantor
	Parent		Subsidiaries			Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	84	$	100		$	31		$	—		$	215
Accounts receivable, net	—		351			41			—			392
Accounts receivable - related party	—		—			9			(9		)	—
Intercompany receivable	4,469		195			—			(4,664		)	—
Inventories	—		28			9			—			37
Derivative instruments	—		231			—			—			231
Prepaid expenses and other	3		43			4			—			50
Total current assets	4,556		948			94			(4,673		)	925
Property and equipment:
Oil and natural gas properties, full cost method of accounting	—		20,675			1,717			(93		)	22,299
Midstream assets	—		284			416			—			700
Other property, equipment and land	—		71			76			—			147
Accumulated depletion, depreciation, amortization and impairment	—		(2,486		)	(276		)	(12		)	(2,774		)
Net property and equipment	—		18,544			1,933			(105		)	20,372
Equity method investments	—		1			—			—			1
Investment in subsidiaries	11,576		112			—			(11,688		)	—
Deferred tax asset	—		—			97			—			97
Investment in real estate, net	—		12			104			—			116
Other assets	—		68			17			—			85
Total assets	$	16,132	$	19,685		$	2,245		$	(16,466	)	$	21,596
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable-trade	$	—	$	128		$	—		$	—		$	128
Intercompany payable	—		4,673			—			(4,673		)	—
Accrued capital expenditures	—		495			—			—			495
Other accrued liabilities	14		170			69			—			253
Revenues and royalties payable	—		143			—			—			143
Total current liabilities	14		5,609			69			(4,673		)	1,019
Long-term debt	2,036		2,017			411			—			4,464
Derivative instruments	—		15			—			—			15
Asset retirement obligations	—		136			—			—			136
Deferred income taxes	382		1,403			—			—			1,785
Other long-term liabilities	—		10			—			—			10
Total liabilities	2,432		9,190			480			(4,673		)	7,429
Commitments and contingencies
Stockholders’ equity	13,700		10,495			1,070			(11,565		)	13,700
Non-controlling interest	—		—			695			(228		)	467
Total equity	13,700		10,495			1,765			(11,793		)	14,167
Total liabilities and equity	$	16,132	$	19,685		$	2,245		$	(16,466	)	$	21,596

Condensed consolidated statement of operations



Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2019
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	817		$	—		$	65		$	882
Natural gas sales	—			14			—			2			16
Natural gas liquid sales	—			54			—			4			58
Royalty income	—			—			71			(71		)	—
Lease bonus	—			—			1			—			1
Midstream services	—			—			112			(96		)	16
Other operating income	—			—			3			(1		)	2
Total revenues	—			885			187			(97		)	975
Costs and expenses:
Lease operating expenses	—			174			—			(46		)	128
Production and ad valorem taxes	—			56			5			—			61
Gathering and transportation	—			29			—			(4		)	25
Midstream services	—			—			47			(21		)	26
Depreciation, depletion and amortization	—			329			29			7			365
General and administrative expenses	3			17			3			(4		)	19
Asset retirement obligation accretion	—			—			1			—			1
Other operating expense	—			(1		)	2			—			1
Total costs and expenses	3			604			87			(68		)	626
Income (loss) from operations	(3		)	281			100			(29		)	349
Other income (expense)
Interest expense, net	(11		)	(22		)	(5		)	—			(38		)
Other income (expense), net	1			3			—			(2		)	2
Gain on derivative instruments, net	—			177			—			—			177
Total other income (expense), net	(10		)	158			(5		)	(2		)	141
Income (loss) before income taxes	(13		)	439			95			(31		)	490
Provision for income taxes	107			—			(5		)	—			102
Net income (loss)	(120		)	439			100			(31		)	388
Net income (loss) attributable to non-controlling interest	—			—			80			(60		)	20
Net income (loss) attributable to Diamondback Energy, Inc.	$	(120	)	$	439		$	20		$	29		$	368



Condensed Consolidated Statement of Operations
Three Months Ended September 30, 2018
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	391		$	—		$	63		$	454
Natural gas sales	—			10			—			4			14
Natural gas liquid sales	—			50			—			7			57
Royalty income	—			—			74			(74		)	—
Lease bonus	—			—			4			(3		)	1
Midstream services	—			—			46			(38		)	8
Other operating income	—			—			4			(1		)	3
Total revenues	—			451			128			(42		)	537
Costs and expenses:
Lease operating expenses	—			59			—			(10		)	49
Production and ad valorem taxes	—			28			5			—			33
Gathering and transportation	—			10			1			(5		)	6
Midstream services	—			1			19			—			20
Depreciation, depletion and amortization	—			119			23			4			146
General and administrative expenses	7			9			1			(3		)	14
Other operating expense	—			(1		)	2			—			1
Total costs and expenses	7			225			51			(14		)	269
Income (loss) from operations	(7		)	226			77			(28		)	268
Other income (expense)
Interest expense, net	(11		)	(4		)	(4		)	—			(19		)
Other income (expense), net	1			1			1			(1		)	2
Loss on derivative instruments, net	—			(48		)	—			—			(48		)
Total other expense, net	(10		)	(51		)	(3		)	(1		)	(65		)
Income (loss) before income taxes	(17		)	175			74			(29		)	203
Provision for income taxes	42			—			1			—			43
Net income (loss)	(59		)	175			73			(29		)	160
Net income (loss) attributable to non-controlling interest	—			—			49			(46		)	3
Net income (loss) attributable to Diamondback Energy, Inc.	$	(59	)	$	175		$	24		$	17		$	157



Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2019
(In millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	2,389		$	—		$	183		$	2,572
Natural gas sales	—			31			—			5			36
Natural gas liquid sales	—			176			—			14			190
Royalty income	—			—			202			(202		)	—
Lease bonus	—			—			4			—			4
Midstream services	—			—			312			(261		)	51
Other operating income	—			—			10			(3		)	7
Total revenues	—			2,596			528			(264		)	2,860
Costs and expenses:
Lease operating expenses	—			465			—			(101		)	364
Production and ad valorem taxes	—			167			13			—			180
Gathering and transportation	—			65			—			(11		)	54
Midstream services	—			—			122			(62		)	60
Depreciation, depletion and amortization	—			943			82			21			1,046
General and administrative expenses	27			39			11			(9		)	68
Asset retirement obligation accretion	—			5			1			—			6
Other operating expense	—			—			3			—			3
Total costs and expenses	27			1,684			232			(162		)	1,781
Income (loss) from operations	(27		)	912			296			(102		)	1,079
Other income (expense)
Interest expense, net	(32		)	(89		)	(12		)	—			(133		)
Other income (expense), net	2			7			1			(5		)	5
Gain on derivative instruments, net	—			3			—			—			3
Gain on revaluation of investment	—			—			4			—			4
Total other income (expense), net	(30		)	(79		)	(7		)	(5		)	(121		)
Income (loss) before income taxes	(57		)	833			289			(107		)	958
Provision for (benefit from) income taxes	209			—			(38		)	—			171
Net income (loss)	(266		)	833			327			(107		)	787
Net income (loss) attributable to non-controlling interest	—			—			181			(121		)	60
Net income (loss) attributable to Diamondback Energy, Inc.	$	(266	)	$	833		$	146		$	14		$	727



Condensed Consolidated Statement of Operations
Nine Months Ended September 30, 2018
(In millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Revenues:
Oil sales	$	—		$	1,149		$	—		$	185		$	1,334
Natural gas sales	—			31			—			9			40
Natural gas liquid sales	—			116			—			17			133
Royalty income	—			—			211			(211		)	—
Lease bonus	—			—			5			(3		)	2
Midstream services	—			—			124			(97		)	27
Other operating income	—			—			9			(2		)	7
Total revenues	—			1,296			349			(102		)	1,543
Costs and expenses:
Lease operating expenses	—			159			—			(30		)	129
Production and ad valorem taxes	—			79			14			—			93
Gathering and transportation	—			28			1			(12		)	17
Midstream services	—			—			49			—			49
Depreciation, depletion and amortization	—			319			60			12			391
General and administrative expenses	21			22			6			(4		)	45
Asset retirement obligation accretion	—			1			—			—			1
Other operating expenses	—			—			2			—			2
Total costs and expenses	21			608			132			(34		)	727
Income (loss) from operations	(21		)	688			217			(68		)	816
Other income (expense)
Interest expense, net	(30		)	(10		)	(9		)	—			(49		)
Other income (expense), net	1			91			(1		)	(2		)	89
Loss on derivative instruments, net	—			(139		)	—			—			(139		)
Gain on revaluation of investment	—			—			5			—			5
Total other expense, net	(29		)	(58		)	(5		)	(2		)	(94		)
Income (loss) before income taxes	(50		)	630			212			(70		)	722
Provision for (benefit from) income taxes	154			—			(71		)	—			83
Net income (loss)	(204		)	630			283			(70		)	639
Net income attributable to non-controlling interest	—			—			78			22			100
Net income (loss) attributable to Diamondback Energy, Inc.	$	(204	)	$	630		$	205		$	(92	)	$	539

Condensed consolidated statement of cash flows



Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2019
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(3	)	$	1,529		$	326		$	—		$	1,852
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(1,987		)	—			—			(1,987		)
Additions to midstream assets	—			—			(186		)	—			(186		)
Purchase of other property, equipment and land	—			(8		)	—			—			(8		)
Acquisition of leasehold interests	—			(311		)	—			—			(311		)
Acquisition of mineral interests	—			—			(320		)	—			(320		)
Proceeds from sale of assets	—			301			—			—			301
Investment in real estate	—			—			(1		)	—			(1		)
Funds held in escrow	—			—			(7		)	—			(7		)
Equity investments	—			(149		)	(76		)	—			(225		)
Net cash used in investing activities	—			(2,154		)	(590		)	—			(2,744		)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	—			930			479			—			1,409
Repayment under credit facility	—			(789		)	(379		)	—			(1,168		)
Proceeds from joint venture	—			42			—			—			42
Debt issuance costs	(116		)	114			(5		)	—			(7		)
Public offering costs	—			—			(40		)	—			(40		)
Proceeds from public offerings	—			—			1,106			—			1,106
Distribution to parent	—			—			(727		)	727			—
Contributions from subsidiaries	—			727			—			(727		)	—
Distributions from subsidiary	99			—			—			(99		)	—
Proceeds from exercise of stock options	9			—			—			—			9
Repurchased for tax withholdings	(13		)	—			—			—			(13		)
Repurchased as part of share buyback	(400		)	—			—			—			(400		)
Dividends to stockholders	(82		)	—			—			—			(82		)
Distributions to non-controlling interest	—			—			(178		)	99			(79		)
Intercompany transfers	470			(470		)	—			—			—
Net cash (used in) provided by financing activities	(33		)	554			256			—			777
Net increase (decrease) in cash and cash equivalents	(36		)	(71		)	(8		)	—			(115		)
Cash and cash equivalents at beginning of period	84			100			31			—			215
Cash and cash equivalents at end of period	$	48		$	29		$	23		$	—		$	100



Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2018
(in millions)
							Non–
				Guarantor			Guarantor
	Parent			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	—		$	861		$	292		$	—		$	1,153
Cash flows from investing activities:
Additions to oil and natural gas properties	—			(1,010		)	—			—			(1,010		)
Additions to midstream assets	—			(21		)	(109		)	—			(130		)
Purchase of other property, equipment and land	—			3			(5		)	—			(2		)
Acquisition of leasehold interests	—			(186		)	—			—			(186		)
Acquisition of mineral interests	—			170			(506		)	—			(336		)
Proceeds from sale of assets	—			6			1			—			7
Investment in real estate	—			(111		)	—			—			(111		)
Funds held in escrow	—			(51		)	—			—			(51		)
Intercompany transfers	(22		)	22			—			—			—
Net cash used in investing activities	(22		)	(1,178		)	(619		)	—			(1,819		)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	—			471			557			—			1,028
Repayment under credit facility	—			(868		)	(354		)	—			(1,222		)
Proceeds from senior notes	1,062			—			—			—			1,062
Debt issuance costs	(14		)	—			—			—			(14		)
Public offering costs	—			—			(3		)	—			(3		)
Proceeds from public offerings	—			—			306			—			306
Contributions to subsidiaries	(1		)	—			(1		)	2			—
Contributions by members	—			—			2			(2		)	—
Distributions from subsidiary	113			—			—			(113		)	—
Dividends to stockholders	(25		)	—			—			—			(25		)
Distributions to non-controlling interest	—			—			(182		)	113			(69		)
Intercompany transfers	(696		)	695			1			—			—
Net cash provided by financing activities	439			298			326			—			1,063
Net increase (decrease) in cash and cash equivalents	417			(19		)	(1		)	—			397
Cash and cash equivalents at beginning of period	54			34			24			—			112
Cash and cash equivalents at end of period	$	471		$	15		$	23		$	—		$	509

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - shares	Oct. 01, 2019	Sep. 30, 2019	Mar. 01, 2019	Jul. 31, 2018
Subsequent Event \| Common Units
Noncontrolling Interest [Line Items]
Limited partners' capital account, units owned (in Shares)	731,500
Subsequent Event \| Class B Units
Noncontrolling Interest [Line Items]
Limited partners' capital account, units owned (in Shares)	90,709,946
Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Ownership percentage		54.00%	54.00%	59.00%
Viper Energy Partners LP \| Subsequent Event
Noncontrolling Interest [Line Items]
Ownership percentage	60.00%
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
Ownership percentage		71.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jan. 01, 2019	Jan. 01, 2018
Investment [Line Items]
Impact of adoption of Accounting Standards Update 2016-01			$ 16
Right of use asset	$ 19
Accounting Standards Update 2016-02
Investment [Line Items]
Right of use asset		$ 13
Viper Energy Partners LP \| Accounting Standards Update 2016-01
Investment [Line Items]
Impact of adoption of Accounting Standards Update 2016-01			$ (19)

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details)	9 Months Ended
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details)	Sep. 30, 2019
Minimum
Disaggregation of Revenue [Line Items]
Revenue settlement period after production delivery	30 days
Maximum
Disaggregation of Revenue [Line Items]
Revenue settlement period after production delivery	90 days

ACQUISITIONS AND DIVESTITURES - Narrative (Details) $ / shares in Units, shares in Millions	Jul. 29, 2019 USD ($) a $ / shares shares	Jul. 01, 2019 USD ($) a	May 23, 2019 USD ($) a	Nov. 29, 2018 USD ($) a fraction_per_share location $ / shares shares	Oct. 31, 2018 USD ($) a shares	Aug. 15, 2018 USD ($) a	Jan. 31, 2018 USD ($)
Business Acquisition [Line Items]
Conventional and non-core Permian assets divested, area (in acre) \| a		103,750	6,589
Proceeds from divestiture of certain conventional and non-core assets		$ 285,000,000	$ 37,000,000
Gain (loss) from divestiture of certain conventional and non-core assets		$ 0	$ 0
Area of land (in acre) \| a				394,000
Estimated total net horizontal permian locations \| location				7,200
Midland, TX \| Office Building
Business Acquisition [Line Items]
Purchase price to acquire property, plant and equipment							$ 110,000,000
2019 Drop-Down Transaction
Business Acquisition [Line Items]
Number of shares to be issued in acquisition (in Shares) \| shares	18.3
Payment to acquire businesses	$ 190,000,000
Business acquisition, shares issued, number of trading-day period	10 days
Business acquisition, shares issued, weighted average price (in USD per share) \| $ / shares	$ 30.07
Mineral properties acquired net royalty acres \| a	5,490
Percentage of mineral acres operated	95.00%
Percentage of average net royalty interest in acquired mineral and royalty interests	3.20%
Business combination, total consideration	$ 740,000,000
Ajax Acquisition
Business Acquisition [Line Items]
Number of shares to be issued in acquisition (in Shares) \| shares					2.6
Payment to acquire businesses					$ 900,000,000
Area of land (in acre) \| a					25,493
2018 Drop-Down Transaction
Business Acquisition [Line Items]
Mineral properties acquired net royalty acres \| a						1,696
Percentage of mineral acres operated						80.00%
Mineral properties acquired gross acres \| a						32,424
Business combination, total consideration						$ 175,000,000
ExL Acquisition
Business Acquisition [Line Items]
Payment to acquire businesses					$ 313,000,000
Area of land (in acre) \| a					3,646
Energen Corporation Merger
Business Acquisition [Line Items]
Number of shares to be issued in acquisition (in Shares) \| shares				62.8
Business combination, total consideration				$ 7,000,000,000
Common stock, conversion basis \| fraction_per_share				0.6442
Business acquisition, share price (in USD per share) \| $ / shares				$ 112.00
Minimum
Business Acquisition [Line Items]
Total Tier One acres (in acre) \| a				273,000

ACQUISITIONS AND DIVESTITURES - Schedule of Preliminary Purchase Price Allocation (Details) - Energen Corporation Merger $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Consideration:
Total consideration	$ 7,136
Fair value of liabilities assumed:
Current liabilities	377
Asset retirement obligation	105
Long-term debt	1,099
Noncurrent derivative instruments	17
Deferred income taxes	1,408
Other long-term liabilities	7
Amount attributable to liabilities assumed	3,013
Fair value of assets acquired:
Total current assets	311
Oil and natural gas properties	9,313
Midstream assets	263
Investment in real estate	11
Other property, equipment and land	55
Asset retirement obligation	105
Other postretirement assets	3
Noncurrent income tax receivable, net	76
Other long term assets	12
Amount attributable to assets acquired	$ 10,149

ACQUISITIONS AND DIVESTITURES - Business Acquisition, Pro Forma Information (Details) - Energen Corporation Merger - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2018
Business Acquisition [Line Items]
Revenues	$ 919	$ 2,655
Income from operations	431	1,280
Net income	$ 156	$ 727
Basic earnings per common share (in USD per share)	$ 0.97	$ 4.50
Diluted earnings per common share (in USD per share)	$ 0.96	$ 4.49

VIPER ENERGY PARTNERS LP (Details) - USD ($) $ in Thousands				1 Months Ended	3 Months Ended		9 Months Ended
VIPER ENERGY PARTNERS LP (Details) - USD ($) $ in Thousands	Mar. 01, 2019	May 10, 2018	May 09, 2018	Jul. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Oct. 01, 2019	May 28, 2019
Noncontrolling Interest [Line Items]
Decrease of non-controlling interest							$ 74,000
Limited partners capital contribution										$ 1,000
Viper LLC
Noncontrolling Interest [Line Items]
Members ownership percentage		64.00%		59.00%
Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Ownership percentage	54.00%			59.00%	54.00%		54.00%
Viper LLC
Noncontrolling Interest [Line Items]
Conversion of Stock, Shares Converted							1
Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Number of common stock exchanged (in shares)			73,150,000
Number of stock issued (in shares)			73,150,000
General partners cash contribution		$ 1,000
Limited partners capital contribution		$ 1,000
Limited partners capital account, percentage of distribution		8.00%
Proportionate return amount		$ 10
Amount allocated by general partners per Partnership Agreement					$ 1,000	$ 1,000	$ 2,000	$ 2,000
Viper Energy Partners LP \| Follow-on Public Offering
Noncontrolling Interest [Line Items]
Stock issuance of public (in Shares)	10,925,000			10,080,000
Consideration received from offering	$ 341,000			$ 303,000
Viper Energy Partners LP \| Over-Allotment Option Common Units
Noncontrolling Interest [Line Items]
Stock issuance of public (in Shares)	1,425,000			1,080,000
Viper Energy Partners LP \| Viper LLC
Noncontrolling Interest [Line Items]
Managing member ownership percentage		36.00%		41.00%
Subsequent Event \| Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Ownership percentage									60.00%
Common Units \| Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Conversion of Stock, Shares Issued							1
Number of common units converted (in shares)		731,500
Class B Units \| Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Units of partnership interest (in shares)			73,150,000
Conversion of Stock, Shares Converted							1
Class B units converted (in Shares)		731,500

RATTLER MIDSTREAM LP (Details) - USD ($)		3 Months Ended	9 Months Ended
RATTLER MIDSTREAM LP (Details) - USD ($)	May 28, 2019	Sep. 30, 2019	Sep. 30, 2019
Noncontrolling Interest [Line Items]
Limited partners capital contribution	$ 1,000,000
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
Ownership percentage		71.00%	71.00%
Limited partners ownership percentage	71.00%
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
Ownership percentage	29.00%
General partners cash contribution	$ 1,000,000
Percentage of preferred cash distribution received	8.00%
Rattler MIdstream LP \| IPO
Noncontrolling Interest [Line Items]
Offer and issuance of stock (in Shares)	43,700,000
Shares issued (in USD per share)	$ 17.50
Consideration received from offering	$ 720,000,000
Rattler MIdstream LP \| Over-Allotment Option
Noncontrolling Interest [Line Items]
Offer and issuance of stock (in Shares)	5,700,000
Rattler MIdstream LP \| Rattler Partnership Agreement
Noncontrolling Interest [Line Items]
Amount allocated by general partners per Partnership Agreement		$ 225,030	$ 262,937
Rattler MIdstream LP \| Rattler's Services and Secondment Agreement
Noncontrolling Interest [Line Items]
Amount allocated by general partners per Partnership Agreement		1,000,000	3,000,000
Rattler MIdstream LP \| Rattler Tax Sharing Agreement
Noncontrolling Interest [Line Items]
Accrued state income tax expense		$ 75,944	$ 107,758
Rattler MIdstream LP \| Class B Units
Noncontrolling Interest [Line Items]
Limited partners' capital account, units issued (in Shares)	107,815,152
Rattler LLC
Noncontrolling Interest [Line Items]
Distribution to affiliates	$ 727,000,000

REAL ESTATE ASSETS (Details) - USD ($) $ in Millions	9 Months Ended
REAL ESTATE ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Real Estate [Line Items]
Buildings	$ 102	$ 103
Tenant improvements	5	4
Land	2	1
Land improvements	1	1
Total real estate assets	110	109
Less: accumulated depreciation	(8)	(4)
Total investment in land and buildings, net	102	105
Finite-lived intangible assets, net	$ 9	11
In-place lease intangibles
Real Estate [Line Items]
Lease intangible assets, useful life	45 months
Finite-lived intangible assets, gross	$ 11	11
Less: accumulated amortization	(5)	(3)
Finite-lived intangible assets, net	$ 6	8
Above-market lease intangibles
Real Estate [Line Items]
Lease intangible assets, useful life	45 months
Finite-lived intangible assets, gross	$ 4	4
Less: accumulated amortization	(1)	(1)
Finite-lived intangible assets, net	$ 3	$ 3
Buildings
Real Estate [Line Items]
Real estate assets, estimated useful lives	30 years
Tenant improvements
Real Estate [Line Items]
Real estate assets, estimated useful lives	15 years
Land improvements
Real Estate [Line Items]
Real estate assets, estimated useful lives	15 years

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Oil and natural gas properties:
Not subject to depletion	$ 9,464		$ 9,464		$ 9,670
Gross oil and natural gas properties	24,822		24,822		22,299
Accumulated depletion and depreciation	(3,815)		(3,815)		(2,774)
Midstream assets	884		884		700
Other property, equipment and land	152		152		147
Net property and equipment	22,043		22,043		20,372
Capitalized internal costs	8	$ 6	$ 32	$ 20
Estimated future net revenue discounted rate per annum			10.00%
Exploration costs or development costs not subject to depletion	82		$ 82		68
Capitalized interest not subject to depletion	102		$ 102		55
Minimum
Oil and natural gas properties:
Timing of inclusion of costs in amortization calculation			3 years
Maximum
Oil and natural gas properties:
Timing of inclusion of costs in amortization calculation			5 years
Oil and Natural Gas
Oil and natural gas properties:
Subject to depletion	15,358		$ 15,358		12,629
Not subject to depletion	9,464		9,464		9,670
Gross oil and natural gas properties	24,822		24,822		22,299
Accumulated depletion and depreciation	(2,605)		(2,605)		(1,599)
Accumulated impairment	(1,144)		(1,144)		(1,144)
Oil and natural gas properties, net	21,073		21,073		19,556
Balance of costs not subject to depletion:			513		5,844	$ 2,438	$ 669
Other Property and Equipment, Net
Oil and natural gas properties:
Accumulated depletion and depreciation	(66)		(66)		(31)
Other property, equipment and land	$ 152		$ 152		$ 147

Asset Retirement Obligations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations, beginning of period			$ 136	$ 21
Additional liabilities incurred			6	2
Liabilities acquired			3	0
Liabilities settled			(61)	(1)
Accretion expense	$ 1	$ 0	6	1
Revisions in estimated liabilities			0	1
Asset retirement obligations, end of period	90	24	90	24
Less current portion	0	0	0	0
Asset retirement obligations - long-term	$ 90	$ 24	$ 90	$ 24	$ 136

Equity Method Investments (Details)		3 Months Ended	9 Months Ended
Equity Method Investments (Details)	Jun. 30, 2018 SWD	Sep. 30, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jul. 30, 2019	Mar. 29, 2019 USD ($)	Feb. 15, 2019	Feb. 01, 2019	Dec. 31, 2018 USD ($)	Oct. 31, 2014
Schedule of Equity Method Investments [Line Items]
Equity method investments		$ 225,000,000	$ 225,000,000						$ 1,000,000
Equity method investments income (expense) related to interest			(1,000,000)	$ 0
Impairments in equity method investments			0	$ 0
Capitalized interest related equity method investment		124,301	124,301
HMW Fluid Management LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage										25.00%
Wink to Webster Project
Schedule of Equity Method Investments [Line Items]
Equity method investments		21,000,000	21,000,000
2.52% Short-Term Promissory Note
Schedule of Equity Method Investments [Line Items]
Outstanding loans		0	0
Rattler MIdstream LP \| SWD Wells \| HMW Fluid Management LLC
Schedule of Equity Method Investments [Line Items]
Ownership percentage of oil and gas property	50.00%
Oil and gas properties, number of units \| SWD	2
Rattler LLC \| EPIC Crude Holdings, LP
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage								10.00%
Equity method investments		89,000,000	89,000,000
Equity method investments income (expense) related to interest			(532,800)
Rattler LLC \| Gray Oak Pipeline
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage							10.00%
Equity method investments		114,000,000	114,000,000
Equity method investments income (expense) related to interest			(189,374)
Rattler LLC \| Wink to Webster Project
Schedule of Equity Method Investments [Line Items]
Equity method investments income (expense) related to interest			$ 26,280
Rattler LLC \| 2.52% Short-Term Promissory Note \| Gray Oak Pipeline
Schedule of Equity Method Investments [Line Items]
Equity method investment promissory note						$ 123,000,000
Debt instrument stated interest rate						2.52%
Repayment of the Note		$ 0
Rattler LLC \| Joint Venture of Wink to Webster Project
Schedule of Equity Method Investments [Line Items]
Ownership percentage					4.00%
HMW Fluid Management LLC \| SWD Wells
Schedule of Equity Method Investments [Line Items]
Oil and gas properties, number of units \| SWD	4

DEBT - Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Nov. 29, 2018	Jul. 31, 2018
Debt Instrument [Line Items]
Unamortized debt issuance costs	$ (22)	$ (27)
Unamortized premium costs	9	10
Total long-term debt	4,761	4,464
4.625% Notes due 2021
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 400	$ 400	$ 400
Debt instrument stated interest rate	4.625%	4.625%	4.625%
7.320% Medium-term Notes, Series A, due 2022
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 21	$ 20	$ 20
Debt instrument stated interest rate	7.32%	7.32%	7.32%
4.750 % Senior Notes due 2024
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 1,250	$ 1,250
Debt instrument stated interest rate	4.75%	4.75%
5.375 % Senior Notes due 2025
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 800	$ 800
Debt instrument stated interest rate	5.375%	5.375%
7.350% Medium-term Notes, Series A, due 2027
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 11	$ 10	$ 10
Debt instrument stated interest rate	7.35%	7.35%	7.35%
7.125% Medium-term Notes, Series B, due 2028
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 108	$ 100	$ 100
Debt instrument stated interest rate	7.125%	7.125%	7.125%
DrillCo Agreement
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 42	$ 0
Company revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	1,629	1,490
Viper revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	410	411
Total long-term debt				$ 362
Rattler revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 103	$ 0

DEBT - Senior Notes (Details) - USD ($)			9 Months Ended
DEBT - Senior Notes (Details) - USD ($)	Sep. 25, 2018	Jan. 29, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Dec. 20, 2016	Oct. 28, 2016
Debt Instrument [Line Items]
Net proceeds from issuance of senior notes			$ 0	$ 1,062,000,000
Existing 2024 Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount							$ 500,000,000
Debt instrument stated interest rate							4.75%
New 2024 Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 750,000,000
Debt instrument stated interest rate	4.75%
Net proceeds from issuance of senior notes	$ 741,000,000
4.750 % Senior Notes due 2024
Debt Instrument [Line Items]
Debt instrument stated interest rate			4.75%		4.75%
Debt, redemption price, percentage			100.00%
4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period One
Debt Instrument [Line Items]
Debt, redemption price, percentage			103.563%
4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period Two
Debt Instrument [Line Items]
Debt, redemption price, percentage			102.375%
4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period Three
Debt Instrument [Line Items]
Debt, redemption price, percentage			101.188%
4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period Four
Debt Instrument [Line Items]
Debt, redemption price, percentage			100.00%
4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period Five
Debt Instrument [Line Items]
Debt, redemption price, percentage			104.75%
Existing 2025 Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount						$ 500,000,000
Debt instrument stated interest rate						5.375%
New 2025 Senior Notes
Debt Instrument [Line Items]
Aggregate principal amount		$ 300,000,000
Debt instrument stated interest rate		5.375%
Net proceeds from issuance of senior notes		$ 308,000,000
5.375 % Senior Notes due 2025
Debt Instrument [Line Items]
Debt instrument stated interest rate			5.375%		5.375%
Debt, redemption price, percentage			100.00%
5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period One
Debt Instrument [Line Items]
Debt, redemption price, percentage			104.031%
5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period Two
Debt Instrument [Line Items]
Debt, redemption price, percentage			102.688%
5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period Three
Debt Instrument [Line Items]
Debt, redemption price, percentage			101.344%
5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period Four
Debt Instrument [Line Items]
Debt, redemption price, percentage			100.00%
5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period Five
Debt Instrument [Line Items]
Debt, redemption price, percentage			105.375%
Maximum \| 4.750 % Senior Notes due 2024 \| Senior Debt Redemption Period Five
Debt Instrument [Line Items]
Debt instrument percentage eligible for redemption			35.00%
Maximum \| 5.375 % Senior Notes due 2025 \| Senior Debt Redemption Period Five
Debt Instrument [Line Items]
Debt instrument percentage eligible for redemption			35.00%

DEBT - Energen Notes (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Nov. 29, 2018
Energen Notes
Debt Instrument [Line Items]
Longterm debt			$ 530
4.625% Notes due 2021
Debt Instrument [Line Items]
Longterm debt	$ 400	$ 400	$ 400
Debt instrument stated interest rate	4.625%	4.625%	4.625%
7.125% Medium-term Notes, Series B, due 2028
Debt Instrument [Line Items]
Longterm debt	$ 108	$ 100	$ 100
Debt instrument stated interest rate	7.125%	7.125%	7.125%
7.320% Medium-term Notes, Series A, due 2022
Debt Instrument [Line Items]
Longterm debt	$ 21	$ 20	$ 20
Debt instrument stated interest rate	7.32%	7.32%	7.32%
7.350% Medium-term Notes, Series A, due 2027
Debt Instrument [Line Items]
Longterm debt	$ 11	$ 10	$ 10
Debt instrument stated interest rate	7.35%	7.35%	7.35%

DEBT - The Company's Credit Facility - Wells Fargo Bank (Details) - Company revolving credit facility	9 Months Ended
	Sep. 30, 2019 USD ($) redetermindation	Aug. 28, 2019 USD ($)	Dec. 31, 2018 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 5,000,000,000
Number of interim redeterminations that may be requested \| redetermindation	2
Period of redeterminations (in months)	12 months
Current borrowing base	$ 3,400,000,000
Line of credit facility elected borrowing base	2,500,000,000
Longterm debt	1,629,000,000		$ 1,490,000,000
Remaining borrowing capacity	$ 900,000,000
Financial covenant, reduction of borrowing base (percentage)	25.00%
Derivative notional amount	$ 2,000,000,000
Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.375%
Derivative fixed interest rate	1.3565%
Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.50%
Debt covenant, total net debt to capitalization ratio	65.00%
Debt covenant, debt principal amount as percentage of net tangible assets	15.00%
Derivative notional amount		$ 3,000,000,000
Derivative fixed interest rate	2.1509%
Federal Funds Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.25%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Investment Grade Annually \| Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.125%
Investment Grade Annually \| Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.35%
Investment Grade Annually \| LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.125%
Investment Grade Annually \| LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Investment Grade Annually \| Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.125%
Investment Grade Annually \| Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%

DEBT - Viper's Credit Agreement - Wells Fargo Bank (Details) - Viper revolving credit facility		9 Months Ended
	Jul. 20, 2018 USD ($) redetermindation	Sep. 30, 2019 USD ($)	Nov. 06, 2019 USD ($)	Oct. 16, 2019 USD ($)	Oct. 08, 2019 USD ($)	Oct. 01, 2019 USD ($)	Dec. 31, 2018 USD ($)
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 2,000,000,000
Current borrowing base		$ 600,000,000
Number of interim redeterminations that may be requested \| redetermindation	3
Period of redeterminations (in months)	12 months
Financial covenant, maximum issuance of unsecured debt		400,000,000
Outstanding borrowings		410,000,000					$ 411,000,000
Remaining borrowing capacity		$ 190,000,000
Financial covenant, reduction of borrowing base (percentage)		25.00%
Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base		0.375%
Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base		0.50%
Federal Funds Rate
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.50%
LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.75%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.75%
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.75%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.75%
Subsequent Event
Line of Credit Facility [Line Items]
Current borrowing base			$ 775,000,000			$ 725,000,000
Financial covenant, maximum issuance of unsecured debt					$ 1,000,000,000.0
Decrease of borrowing base provided amendment not been approved					$ 125,000,000
Outstanding borrowings				$ 95,000,000
Drop-Down Acquisition \| Subsequent Event
Line of Credit Facility [Line Items]
Current borrowing base						725,000,000
Credit facility, increase (decrease) of borrowing base						$ 125,000,000
Remaining borrowing capacity				$ 630,000,000

DEBT - Rattler's Credit Agreement (Details) - Rattler revolving credit facility - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 600,000,000
Longterm debt	103,000,000	$ 0
Remaining borrowing capacity	$ 497,000,000
Minimum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.25%
Maximum
Line of Credit Facility [Line Items]
Quarterly commitment fee percentage based on unused portion of borrowing base	0.375%
Prime Rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.25%
Prime Rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.25%

DEBT - Financial Covenant Table (Details)	9 Months Ended
DEBT - Financial Covenant Table (Details)	Sep. 30, 2019
Company revolving credit facility \| Maximum
Line of Credit Facility [Line Items]
Ratio of total net debt to EBITDAX, as defined in the credit agreement	4.0
Company revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Ratio of current assets to liabilities, as defined in the credit agreement	1.0
Viper revolving credit facility \| Maximum
Line of Credit Facility [Line Items]
Ratio of total net debt to EBITDAX, as defined in the credit agreement	4.0
Viper revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Ratio of current assets to liabilities, as defined in the credit agreement	1.0
Rattler revolving credit facility \| Maximum
Line of Credit Facility [Line Items]
Line of credit, covenant terms, consolidated total leverage ratio	5.0
Line of credit, covenant terms, consolidated total leverage ratio, for three fiscal quarters following certain acquisitions	5.50
Line of credit, covenant terms, consolidated total leverage ratio when consolidated senior secured leverage ration is applicable	5.25
Line of credit facility, covenant terms, ratio of consolidated senior secured leverage ratio	3.5
Rattler revolving credit facility \| Minimum
Line of Credit Facility [Line Items]
Line of credit facility, covenant terms ratio of consolidated interest coverage	2.5

DEBT - Alliance with Obsidian Resources, L.L.C. (Details) - DrillCo Agreement $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 10, 2018 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Maximum funding amount through joint venture		$ 300
Percentage of funded costs associated with wells drilled		85.00%
Percentage of working interest on wells expected to receive		80.00%
Cumulative percentage of certain payout thresholds		9.00%
Internal rate of return		13.00%
Interest rate upon reaching final internal rate of return		85.00%
Amounts received from joint venture	$ 33
Wells drilled and completed under joint venture agreement	8
CEMOF
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest rate upon reaching final internal rate of return		15.00%

CAPITAL STOCK AND EARNINGS PER SHARE - Capital Stock (Details) - USD ($)		1 Months Ended	3 Months Ended		9 Months Ended
	Mar. 01, 2019	Jul. 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2019	May 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Debt outstanding			$ 4,761,000,000		$ 4,761,000,000		$ 4,464,000,000
Stock repurchase program authorized amount						$ 2,000,000,000
Stock repurchase program amount repurchased			296,000,000	$ 104,000,000	400,000,000
Stock repurchase remaining authorized amount			$ 1,600,000,000		$ 1,600,000,000
Viper revolving credit facility
Class of Stock [Line Items]
Debt outstanding		$ 362,000,000
Viper Energy Partners LP \| Follow-on Public Offering
Class of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in Shares)	10,925,000	10,080,000
Consideration received from offering	$ 341,000,000	$ 303,000,000
Viper Energy Partners LP \| Over-Allotment Option
Class of Stock [Line Items]
Sale of stock, number of shares issued in transaction (in Shares)	1,425,000	1,080,000
Viper Energy Partners LP
Class of Stock [Line Items]
Ownership percentage	54.00%	59.00%	54.00%		54.00%

CAPITAL STOCK AND EARNINGS PER SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Basic:
Net income attributable to common stock	$ 368	$ 157	$ 727	$ 539
Basic weighted average common units outstanding (in shares)	162,543	98,638	164,070	98,603
Effect of dilutive securities:
Dilutive effect of potential common shares issuable (in shares)	237	180	396	217
Diluted:
Diluted weighted average common shares outstanding (in shares)	162,780	98,818	164,466	98,820
Basic net income attributable to common stock (in USD per share)	$ 2.27	$ 1.59	$ 4.44	$ 5.47
Diluted net income attributable to common stock (in USD per share)	$ 2.26	$ 1.59	$ 4.42	$ 5.45
Restricted stock units (in shares)	51	13	40	2

EQUITY-BASED COMPENSATION - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties	$ (1)	$ 2	$ 9	$ 7
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
General and administrative expenses	$ 4	$ 5	$ 27	$ 18

EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Restricted Stock Awards & Units (in Shares)
Unvested, beginning balance (in shares) \| shares	324,224
Granted (in shares) \| shares	468,778
Vested (in shares) \| shares	(217,300)
Forfeited (in shares) \| shares	(81,962)
Unvested, ending balance (in shares) \| shares	493,740
Weighted Average Grant-Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 116.01
Granted (in USD per share) \| $ / shares	106.85
Vested (in USD per share) \| $ / shares	100.47
Forfeited (in USD per share) \| $ / shares	107.35
Unvested, ending balance (in USD per share) \| $ / shares	$ 107.54

EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregated fair value of restricted stock	$ 4	$ 15
Share based award not recognized	$ 28
Share based payment not recognized	1 year 4 months 24 days

EQUITY-BASED COMPENSATION - Performance Restricted Stock Activity (Details) - Equity Plan - Performance Shares
$ / shares in Units, $ in Millions

1 Months Ended

9 Months Ended

Mar. 31, 2019

$ / shares

Sep. 30, 2019

USD ($)

$ / shares

Awards & Units (in shares)

Unvested, beginning balance (in shares)

196,203

Granted (in shares)

356,227

Vested (in shares)

(123,546)

Forfeited (in shares)

(103,635)

Unvested, ending balance (in shares)

325,249

^[1]

Weighted Average Exercise Price (in USD per share)

Unvested, beginning balance (in USD per share) | $ / shares

$ 169.76

Granted (in USD per share) | $ / shares

131.30

Vested (in USD per share) | $ / shares

60.70

Forfeited (in USD per share) | $ / shares

155.23

Unvested, ending balance (in USD per share) | $ / shares

$ 150.63

Share based compensation arrangement by share based payment maximum award potential

650,498

Unrecognized compensation cost related to unvested awards | $

$ 28

Unrecognized compensation cost, period of recognition (in years)

2 years 4 months 24 days

Three-Year

Restricted Stock Awards & Units

Performance shares, performance period

3 years

Awards & Units (in shares)

Granted (in shares)

199,723

Weighted Average Exercise Price (in USD per share)

Granted (in USD per share) | $ / shares

$ 137.22

Three-Year | Minimum

Restricted Stock Awards & Units

Number of shares authorized to be awarded and percent of award received

0.00%

Three-Year | Maximum

Restricted Stock Awards & Units

Number of shares authorized to be awarded and percent of award received

200.00%

Five-Year

Restricted Stock Awards & Units

Performance shares, performance period

5 years

Awards & Units (in shares)

Granted (in shares)

32,958

Weighted Average Exercise Price (in USD per share)

Granted (in USD per share) | $ / shares

$ 132.48

Five-Year | Minimum

Restricted Stock Awards & Units

Number of shares authorized to be awarded and percent of award received

0.00%

Five-Year | Maximum

Restricted Stock Awards & Units

Number of shares authorized to be awarded and percent of award received

200.00%

[1]	A maximum of 650,498 units could be awarded based upon the Company’s final TSR ranking.

EQUITY-BASED COMPENSATION - Performance Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan $ in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2019 shares	Sep. 30, 2019 USD ($) installment shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share based payment maximum award potential		650,498
Granted (in shares)		356,227
Share based award not recognized \| $		$ 28
Share based payment not recognized		2 years 4 months 24 days
Number of vesting installments \| installment		5
Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	199,723
Share-based Payment Arrangement, Tranche One \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted	0.00%
Share-based Payment Arrangement, Tranche One \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted	200.00%
Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	32,958
Share-based Payment Arrangement, Tranche Two \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted	0.00%
Share-based Payment Arrangement, Tranche Two \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted	200.00%

EQUITY-BASED COMPENSATION - Valuation Assumptions (Details) - Equity Plan - Performance Shares - $ / shares	1 Months Ended	9 Months Ended
	Mar. 31, 2019	Sep. 30, 2019
Restricted Stock Awards & Units
Granted (in USD per share)		$ 131.30
Risk-free rate	2.55%
Company volatility	35.00%
Three-Year
Restricted Stock Awards & Units
Granted (in USD per share)	$ 137.22
Five-Year
Restricted Stock Awards & Units
Granted (in USD per share)	$ 132.48

EQUITY-BASED COMPENSATION - Stock Appreciation Rights (Details)	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Restricted Stock Awards & Units (in Shares)
Outstanding at December 31, 2018 \| shares	332,387
Exercised \| shares	(116,044)
Outstanding at September 30, 2019 \| shares	216,343
Weighted Average Exercise Price (in USD per share)
Outstanding at December 31, 2018 \| $ / shares	$ 95.04
Exercised \| $ / shares	82.29
Outstanding at September 30, 2019 \| $ / shares	$ 89.90
Equity Plan \| Stock Appreciation Rights (SARs)
Restricted Stock Awards & Units
Award requisite service period	3 years
Restricted Stock Awards & Units (in Shares)
Outstanding at December 31, 2018 \| shares	57,721
Exercised \| shares	(11,265)
Expired \| shares	(3,775)
Outstanding at September 30, 2019 \| shares	42,681
Weighted Average Exercise Price (in USD per share)
Outstanding at December 31, 2018 \| $ / shares	$ 22.12
Exercised \| $ / shares	70.64
Expired \| $ / shares	96.91
Outstanding at September 30, 2019 \| $ / shares	$ 90.84

EQUITY-BASED COMPENSATION - Stock Options (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($) $ / shares shares
Options (in shares)
Outstanding at December 31, 2018 \| shares	332,387
Exercised \| shares	(116,044)
Outstanding at September 30, 2019 \| shares	216,343
Weighted Average Exercise Price (in USD per share)
Outstanding at December 31, 2018 \| $ / shares	$ 95.04
Exercised \| $ / shares	82.29
Outstanding at September 30, 2019 \| $ / shares	$ 89.90
Weighted average remaining contractual term	1 year 11 months 1 day
Intrinsic value of options outstanding \| $	$ 0
Vested and Expected to vest at September 30, 2019 (in Shares) \| shares	216,343
Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price (in Shares) \| $ / shares	$ 89.90
Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	1 year 11 months 1 day
Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value \| $	$ 0
Options, Vested and Expected to Vest, Exercisable, Number (in Shares) \| shares	216,343
Options, Vested and Expected to Vest, Exercisable, Weighted Average Exercise Price (in Shares) \| $ / shares	$ 89.90
Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term	1 year 11 months 1 day
Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value \| $	$ 0

EQUITY-BASED COMPENSATION - Viper Phantom Units (Details) - Viper Energy Partners LP Long Term Incentive Plan - Phantom Share Units (PSUs)	9 Months Ended
	Sep. 30, 2019 $ / shares shares
Phantom Units
Unvested, beginning balance (in shares) \| shares	125,053
Granted (in shares) \| shares	33,886
Vested (in shares) \| shares	(81,124)
Forfeited (in shares) \| shares	(1,028)
Unvested, ending balance (in shares) \| shares	76,787
Weighted Average Grant-Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 23.44
Granted (in USD per share) \| $ / shares	32.78
Vested (in USD per share) \| $ / shares	23.34
Forfeited (in USD per share) \| $ / shares	42.50
Unvested, ending balance (in USD per share) \| $ / shares	$ 27.42

EQUITY-BASED COMPENSATION - Viper Phantom Units (Narratives) (Details) - Phantom Share Units (PSUs) - Viper Energy Partners LP Long Term Incentive Plan $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregated fair value of restricted stock	$ 2
Share based award not recognized	$ 1
Share based payment not recognized	9 months 21 days

EQUITY-BASED COMPENSATION - Rattler Phantom Units (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan	4 Months Ended
	Sep. 30, 2019 $ / shares shares
Phantom Units
Unvested, beginning balance (in shares) \| shares	0
Granted (in shares) \| shares	2,248,572
Forfeited (in shares) \| shares	(57,143)
Unvested, ending balance (in shares) \| shares	2,191,429
Weighted Average Grant-Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 0
Granted (in USD per share) \| $ / shares	19.20
Forfeited (in USD per share) \| $ / shares	19.21
Unvested, ending balance (in USD per share) \| $ / shares	$ 19.20

EQUITY-BASED COMPENSATION - Rattler Phantom Units (Narratives) (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan [Member] $ in Millions	9 Months Ended
	Sep. 30, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based award not recognized	$ 39
Share based payment not recognized	2 years 7 months 6 days

RELATED PARTY TRANSACTIONS (Details) - Subsidiaries		3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Details) - Subsidiaries	Jun. 23, 2014 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($) lease	Sep. 30, 2019 USD ($) lease	Sep. 30, 2018 USD ($) lease
Wexford \| Advisory Services Agreement
Related Party Transaction [Line Items]
Related party transaction annual fee for advisory services with related party	$ 500,000
Related party transaction amounts			$ 0	$ 0	$ 0
Viper Energy Partners LP
Related Party Transaction [Line Items]
Related party transaction amounts		$ 0	$ 3,000,000	$ 39,198	$ 3,000,000
Number of leases extended \| lease				2
Revenue from related parties on new leases				$ 3,101
Number of new leases \| lease			12	2	12

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Investments, Owned, Federal Income Tax Note [Line Items]
Effective income tax rate	20.80%	21.20%	17.90%	11.50%
Discrete income tax benefit related to deferred taxes recorded during the period			$ 42
Maximum
Investments, Owned, Federal Income Tax Note [Line Items]
Discrete income tax benefit recorded during the period related to equity-based compensation			$ 1

DERIVATIVES - Open Derivative Positions (Details) Mcf in Thousands, MMBTU in Thousands	9 Months Ended
	Sep. 30, 2019 MMBTU $ / Mcf $ / bbl $ / MMBTU Mcf bbl
WTI Cushing Oil Swaps 2019
Derivative [Line Items]
Volume (Bbls) \| bbl	2,710,000
Fixed Price Swap (per Bbl/MMBtu)	61.21
WTI Cushing Oil Swaps 2020
Derivative [Line Items]
Volume (Bbls) \| bbl	4,388,000
Fixed Price Swap (per Bbl/MMBtu)	57.87
WTI Magellan East Houston Oil Swaps 2019
Derivative [Line Items]
Volume (Bbls) \| bbl	920,000
Fixed Price Swap (per Bbl/MMBtu)	63.47
WTI Magellan East Houston Oil Swaps 2020
Derivative [Line Items]
Volume (Bbls) \| bbl	2,196,000
Fixed Price Swap (per Bbl/MMBtu)	62.80
BRENT Oil Swaps 2019
Derivative [Line Items]
Volume (Bbls) \| bbl	644,000
Fixed Price Swap (per Bbl/MMBtu)	67.71
BRENT Oil Swaps 2020
Derivative [Line Items]
Volume (Bbls) \| bbl	4,205,000
Fixed Price Swap (per Bbl/MMBtu)	62.72
WTI Cushing Oil Basis Swaps 2019
Derivative [Line Items]
Volume (Bbls) \| bbl	4,140,000
Fixed Price Swap (per Bbl/MMBtu)	(5.52)
WTI Cushing Oil Basis Swaps 2020
Derivative [Line Items]
Volume (Bbls) \| bbl	15,120,000
Fixed Price Swap (per Bbl/MMBtu)	(1.21)
Natural Gas Swaps 2019 - Henry Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	6,440
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	3.06
Natural Gas Swaps 2020 - Henry Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	10,980
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	2.55
Natural Gas Swaps - Waha Hub 2020
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	18,300
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	1.67
Natural Gas Basis swaps - Waha Hub 2019
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	6,440
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	(1.56)
Natural Gas Basis Swaps - Waha Hub 2020
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	14,640
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	(1.10)
Natural Gas Basis Swaps - Waha Hub 2021
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	36,500
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	(0.68)
Natural Gas Liquid Swaps - Mont Belvieu 2019
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	690
Fixed Price Swap (per Bbl/MMBtu) \| $ / MMBTU	27.30
2019 Three-Way Collars - WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	1,440,000
Short put price (per Bbl)	35.94
Floor price (per Bbl)	45.94
Ceiling price (per Bbl)	61.65
2019 Three-Way Collars - BRENT
Derivative [Line Items]
Volume (Bbls) \| bbl	552,000
Short put price (per Bbl)	51.67
Floor price (per Bbl)	61.67
Ceiling price (per Bbl)	78.47
2019 Three-Way Collars - WTI Magellan East Houston
Derivative [Line Items]
Volume (Bbls) \| bbl	460,000
Short put price (per Bbl)	50.00
Floor price (per Bbl)	60.00
Ceiling price (per Bbl)	66.10
2020 Three-Way Collars - WTI
Derivative [Line Items]
Volume (Bbls) \| bbl	6,842,200
Short put price (per Bbl)	44.20
Floor price (per Bbl)	54.20
Ceiling price (per Bbl)	65.42
Oil Three-Way Collars
Derivative [Line Items]
Volume (Bbls) \| bbl	9,278,100
Short put price (per Bbl)	50.00
Floor price (per Bbl)	60.00
Ceiling price (per Bbl)	72.18
2020 Three-Way Collars - WTI Magellan East Houston
Derivative [Line Items]
Volume (Bbls) \| bbl	5,124,000
Short put price (per Bbl)	50.00
Floor price (per Bbl)	60.00
Ceiling price (per Bbl)	68.61
Gas Swap Double-Up - Waha Hub
Derivative [Line Items]
Volume (Bbls) \| Mcf	10,980
Fixed Price Swap (per Bbl/MMBtu) \| $ / Mcf	1.70
Option price \| $ / Mcf	1.70

DERIVATIVES - Interest rate swaps and treasury locks (Details) $ in Millions	Sep. 30, 2019 USD ($)
Treasury Lock 2.1509%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	2.1509%
Treasury Lock 1.6563%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.6563%
Interest Rate Swap 1.59675%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.59675%
Interest Rate Swap 1.615%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.615%
Interest Rate Swap 1.567%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 500
Interest Rate	1.567%
Interest Rate Swap 1.555%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.555%
Interest Rate Swap 1.3565%
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.3565%

DERIVATIVES - Offsetting Derivative Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gross amounts of assets presented in the Consolidated Balance Sheet	$ 198	$ 231
Net amounts of assets presented in the Consolidated Balance Sheet	198	231
Gross amounts of liabilities presented in the Consolidated Balance Sheet	12	15
Net amounts of liabilities presented in the Consolidated Balance Sheet	$ 12	$ 15

DERIVATIVES - Balance Sheet Location (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Current assets: derivative instruments	$ 140	$ 231
Noncurrent assets: derivative instruments	58	0
Total assets	198	231
Current liabilities: derivative instruments	10	0
Noncurrent liabilities: derivative instruments	2	15
Total liabilities	12	15
Commodity contracts
Derivatives, Fair Value [Line Items]
Current assets: derivative instruments	140	231
Noncurrent assets: derivative instruments	38	0
Current liabilities: derivative instruments	10	0
Noncurrent liabilities: derivative instruments	2	15
Interest rate swaps
Derivatives, Fair Value [Line Items]
Current assets: derivative instruments	0	0
Noncurrent assets: derivative instruments	20	0
Current liabilities: derivative instruments	0	0
Noncurrent liabilities: derivative instruments	$ 0	$ 0

DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of open non-hedge derivative instruments:	$ 166	$ (10)	$ (30)	$ (24)
Gain (loss) on settlement of non-hedge derivative instruments:	11	(38)	33	(115)
Gain (loss) on derivative instruments	177	(48)	3	(139)
Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of open non-hedge derivative instruments:	146	(10)	(50)	(24)
Gain (loss) on settlement of non-hedge derivative instruments:	11	(38)	33	(115)
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Change in fair value of open non-hedge derivative instruments:	20	0	20	0
Gain (loss) on settlement of non-hedge derivative instruments:	$ 0	$ 0	$ 0	$ 0

FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Dec. 31, 2018	Jan. 01, 2018
Assets:
Fixed price swaps					$ 198	$ 231
Liabilities:
Fixed price swaps					12	15
Summary Of Changes In Cost Method Investment [Roll Forward]
Impact of adoption of Accounting Standards Update 2016-01							$ (16)
Gain on investment	$ 0	$ 0	$ 4	$ 5
Recurring \| Level 1
Assets:
Investment	18	20	18	34	18	14
Fixed price swaps					0	0
Liabilities:
Fixed price swaps					0	0
Summary Of Changes In Cost Method Investment [Roll Forward]
Investment, beginning balance			14	34
Gain on investment			4	5
Investment, ending balance	18	$ 20	18	$ 20
Recurring \| Level 2
Assets:
Investment	0		0		0	0
Fixed price swaps					186	216
Liabilities:
Fixed price swaps					0	0
Summary Of Changes In Cost Method Investment [Roll Forward]
Investment, beginning balance			0
Investment, ending balance	0		0
Recurring \| Level 3
Assets:
Investment	0		0		0	0
Fixed price swaps					0	0
Liabilities:
Fixed price swaps					$ 0	$ 0
Summary Of Changes In Cost Method Investment [Roll Forward]
Investment, beginning balance			0
Investment, ending balance	$ 0		$ 0
Viper Energy Partners LP \| Accounting Standards Update 2016-01
Summary Of Changes In Cost Method Investment [Roll Forward]
Impact of adoption of Accounting Standards Update 2016-01							$ 19

FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2019	Dec. 31, 2018	Nov. 29, 2018
4.625% Notes due 2021
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	4.625%	4.625%	4.625%
7.320% Medium-term Notes, Series A, due 2022
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	7.32%	7.32%	7.32%
4.750 % Senior Notes due 2024
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	4.75%	4.75%
5.375 % Senior Notes due 2025
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	5.375%	5.375%
7.350% Medium-term Notes, Series A, due 2027
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	7.35%	7.35%	7.35%
7.125% Medium-term Notes, Series B, due 2028
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	7.125%	7.125%	7.125%
Reported Value Measurement \| Company revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	$ 1,629	$ 1,490
Reported Value Measurement \| 4.625% Notes due 2021 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	400	400
Reported Value Measurement \| 7.320% Medium-term Notes, Series A, due 2022 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	21	20
Reported Value Measurement \| 4.750 % Senior Notes due 2024 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	1,250	1,250
Reported Value Measurement \| 5.375 % Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	800	800
Reported Value Measurement \| 7.350% Medium-term Notes, Series A, due 2027 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	11	10
Reported Value Measurement \| 7.125% Medium-term Notes, Series B, due 2028 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	108	100
Reported Value Measurement \| Viper revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	410	411
Reported Value Measurement \| Rattler revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	103	0
Reported Value Measurement \| DrillCo Agreement \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt, fair value	42	0
Estimate of Fair Value Measurement \| 4.625% Notes due 2021 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	411	393
Estimate of Fair Value Measurement \| 7.320% Medium-term Notes, Series A, due 2022 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	22	21
Estimate of Fair Value Measurement \| 7.350% Medium-term Notes, Series A, due 2027 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	11	11
Estimate of Fair Value Measurement \| 7.125% Medium-term Notes, Series B, due 2028 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	111	102
Estimate of Fair Value Measurement \| DrillCo Agreement \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt, fair value	42	0
Level 1 \| Estimate of Fair Value Measurement \| 4.750 % Senior Notes due 2024 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	1,283	1,204
Level 1 \| Estimate of Fair Value Measurement \| 5.375 % Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	837	782
Level 2 \| Estimate of Fair Value Measurement \| Company revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	1,629	1,490
Level 2 \| Estimate of Fair Value Measurement \| Viper revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	410	411
Level 2 \| Estimate of Fair Value Measurement \| Rattler revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	$ 103	$ 0

LEASES - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Operating right of use asset	$ 19
Statement of consolidated cash flow	19
Additional amount of operating lease right of use asset recorded	15
Operating lease liabilities	19
Operating lease liability current	$ 13
Weighted average remaining lease term	1 year 7 months 6 days
Weighted average discount rate	8.40%
Accounting Standards Update 2016-02
Lessee, Lease, Description [Line Items]
Operating right of use asset		$ 13
New lease liabilities		$ 13

LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019
Leases [Abstract]
Operating lease costs	$ 7	$ 19

LEASES - Summary of Undiscounted Cash Flows Owed by the Company to Lessors Pursuant to Contractual Agreements (Details) $ in Millions	Sep. 30, 2019 USD ($)
Leases [Abstract]
2019 (October - December)	$ 7
2020	8
2021	4
2022	1
2023	0
Thereafter	0
Total lease payments	20
Less: interest	1
Present value of lease liabilities	$ 19

SUBSEQUENT EVENTS - Narratives (Details) - USD ($) $ / shares in Units, shares in Millions					3 Months Ended		9 Months Ended
	Nov. 01, 2019	Oct. 16, 2019	Oct. 01, 2019	Jul. 29, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)					$ 0.1875	$ 0.125	$ 0.5625	$ 0.375
Net proceeds from issuance of senior notes							$ 0	$ 1,062,000,000
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)	$ 0.1875
Viper Energy Partners LP \| Senior Notes \| 5.375% Senior Notes Due 2027 \| Subsequent Event
Subsequent Event [Line Items]
Aggregate principal amount		$ 500,000,000
Debt instrument stated interest rate		5.375%
Net proceeds from issuance of senior notes		$ 492,000,000
2019 Drop-Down Transaction
Subsequent Event [Line Items]
Number of shares issued in acquisition (in Shares)				18.3
Payment to acquire businesses				$ 190,000,000
Business acquisition, shares issued, weighted average price (in USD per share)				$ 30.07
Business combination, total consideration				$ 740,000,000
2019 Drop-Down Transaction \| Subsequent Event
Subsequent Event [Line Items]
Payment to acquire businesses			$ 190,000,000
Business acquisition, shares issued, weighted average price (in USD per share)			$ 30.07
Business combination, total consideration			$ 740,000,000
Class B Units \| 2019 Drop-Down Transaction \| Viper Energy Partners LP \| Subsequent Event
Subsequent Event [Line Items]
Number of shares issued in acquisition (in Shares)			18.3
Class B Units \| 2019 Drop-Down Transaction \| Viper LLC \| Subsequent Event
Subsequent Event [Line Items]
Number of shares issued in acquisition (in Shares)			18.3

SUBSEQUENT EVENTS - Schedule of Derivative Contracts (Details) - Oil Three-Way Collars	9 Months Ended	12 Months Ended
	Sep. 30, 2019 $ / bbl bbl	Dec. 31, 2020 $ / bbl bbl
Subsequent Event [Line Items]
Volume (Bbls) \| bbl	9,278,100
Short put price (per Bbl)	50.00
Floor price (per Bbl)	60.00
Ceiling price (per Bbl)	72.18
Forecast
Subsequent Event [Line Items]
Volume (Bbls) \| bbl		2,525,400
Short put price (per Bbl)		50.00
Floor price (per Bbl)		60.00
Ceiling price (per Bbl)		66.00

REPORT OF BUSINESS SEGMENTS - Additional Information (Details)	9 Months Ended
	Sep. 30, 2019 segment
Segment Reporting [Abstract]
Number of business segments	2

REPORT OF BUSINESS SEGMENTS - Summary of Business Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Segment Reporting Information [Line Items]
Total revenues	$ 975	$ 537	$ 2,860	$ 1,543
Income from operations	349	268	1,079	816
Other income (expense)	141	(65)	(121)	(94)
Provision for income taxes	102	43	171	83
Net income attributable to non-controlling interest	20	3	60	100
Net income attributable to Diamondback Energy, Inc.	368	157	727	539
Total assets	23,553	9,807	23,553	9,807	$ 21,596
Exploration and Production
Segment Reporting Information [Line Items]
Total revenues	957	527	2,802	1,509
Midstream Services
Segment Reporting Information [Line Items]
Total revenues	115	49	322	133
Operating Segments \| Exploration and Production
Segment Reporting Information [Line Items]
Total revenues	957	527	2,802	1,509
Income from operations	321	268	1,004	808
Other income (expense)	143	(65)	(116)	(92)
Provision for income taxes	99	43	167	83
Net income attributable to non-controlling interest	20	3	60	100
Net income attributable to Diamondback Energy, Inc.	345	157	661	533
Total assets	22,452	9,365	22,452	9,365
Operating Segments \| Midstream Services
Segment Reporting Information [Line Items]
Total revenues	18	10	58	34
Income from operations	52	23	159	63
Other income (expense)	(1)	0	(2)	(2)
Provision for income taxes	3	0	4	0
Net income attributable to non-controlling interest	37	0	52	0
Net income attributable to Diamondback Energy, Inc.	11	23	101	61
Total assets	1,307	525	1,307	525
Eliminations
Segment Reporting Information [Line Items]
Total revenues	(97)	(39)	(264)	(99)
Income from operations	(24)	(23)	(84)	(55)
Other income (expense)	(1)	0	(3)	0
Provision for income taxes	0	0	0	0
Net income attributable to non-controlling interest	(37)	0	(52)	0
Net income attributable to Diamondback Energy, Inc.	12	(23)	(35)	(55)
Total assets	$ (206)	$ (83)	$ (206)	$ (83)

GUARANTOR FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) $ in Millions	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 100			$ 215
Accounts receivable, net	538			392
Accounts receivable - related party	0			0
Intercompany receivable	0			0
Inventories	45			37
Derivative instruments	140			231
Prepaid expenses and other	22			50
Total current assets	845			925
Property and equipment:
Oil and natural gas properties, full cost method of accounting	24,822			22,299
Midstream assets	884			700
Other property, equipment and land	152			147
Accumulated depletion, depreciation, amortization and impairment	(3,815)			(2,774)
Net property and equipment	22,043			20,372
Funds held in escrow	7			0
Equity method investments	225			1
Derivative instruments	58			0
Investment in subsidiaries	0			0
Deferred tax asset	158			97
Investment in real estate, net	111			116
Other assets	106			85
Total assets	23,553			21,596	$ 9,807
Current liabilities:
Accounts payable-trade	233			128
Intercompany payable	0			0
Accrued capital expenditures	427			495
Other accrued liabilities	304			253
Revenues and royalties payable	207			143
Derivative instruments	10			0
Total current liabilities	1,181			1,019
Long-term debt	4,761			4,464
Derivative instruments	2			15
Asset retirement obligations	90			136	24
Deferred income taxes	2,019			1,785
Other long-term liabilities	11			10
Total liabilities	8,064			7,429
Commitments and contingencies
Stockholders’ equity	14,050			13,700
Non-controlling interest	1,439			467
Total equity	15,489	$ 15,450	$ 14,514	14,167	$ 6,430	$ 6,012	$ 5,735	$ 5,582
Total liabilities and equity	23,553			21,596
Eliminations
Current assets:
Cash and cash equivalents	0			0
Accounts receivable, net	0			0
Accounts receivable - related party	(44)			(9)
Intercompany receivable	(4,223)			(4,664)
Inventories	0			0
Derivative instruments	0			0
Prepaid expenses and other	0			0
Total current assets	(4,267)			(4,673)
Property and equipment:
Oil and natural gas properties, full cost method of accounting	(179)			(93)
Midstream assets	0			0
Other property, equipment and land	0			0
Accumulated depletion, depreciation, amortization and impairment	(37)			(12)
Net property and equipment	(216)			(105)
Funds held in escrow	0
Equity method investments	0			0
Derivative instruments	0
Investment in subsidiaries	(12,460)			(11,688)
Deferred tax asset	0			0
Investment in real estate, net	0			0
Other assets	0			0
Total assets	(16,943)			(16,466)
Current liabilities:
Accounts payable-trade	0			0
Intercompany payable	(4,267)			(4,673)
Accrued capital expenditures	0			0
Other accrued liabilities	0			0
Revenues and royalties payable	0			0
Derivative instruments	0
Total current liabilities	(4,267)			(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	(4,267)			(4,673)
Commitments and contingencies
Stockholders’ equity	(12,926)			(11,565)
Non-controlling interest	250			(228)
Total equity	(12,676)			(11,793)
Total liabilities and equity	(16,943)			(16,466)
Parent \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	48			84
Accounts receivable, net	0			0
Accounts receivable - related party	0			0
Intercompany receivable	4,223			4,469
Inventories	0			0
Derivative instruments	0			0
Prepaid expenses and other	1			3
Total current assets	4,272			4,556
Property and equipment:
Oil and natural gas properties, full cost method of accounting	0			0
Midstream assets	0			0
Other property, equipment and land	0			0
Accumulated depletion, depreciation, amortization and impairment	0			0
Net property and equipment	0			0
Funds held in escrow	0
Equity method investments	0			0
Derivative instruments	0
Investment in subsidiaries	12,460			11,576
Deferred tax asset	0			0
Investment in real estate, net	0			0
Other assets	0			0
Total assets	16,732			16,132
Current liabilities:
Accounts payable-trade	0			0
Intercompany payable	0			0
Accrued capital expenditures	0			0
Other accrued liabilities	39			14
Revenues and royalties payable	0			0
Derivative instruments	0
Total current liabilities	39			14
Long-term debt	2,037			2,036
Derivative instruments	0			0
Asset retirement obligations	0			0
Deferred income taxes	606			382
Other long-term liabilities	0			0
Total liabilities	2,682			2,432
Commitments and contingencies
Stockholders’ equity	14,050			13,700
Non-controlling interest	0			0
Total equity	14,050			13,700
Total liabilities and equity	16,732			16,132
Guarantor Subsidiaries \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	29			100
Accounts receivable, net	493			351
Accounts receivable - related party	0			0
Intercompany receivable	0			195
Inventories	32			28
Derivative instruments	140			231
Prepaid expenses and other	20			43
Total current assets	714			948
Property and equipment:
Oil and natural gas properties, full cost method of accounting	22,964			20,675
Midstream assets	0			284
Other property, equipment and land	61			71
Accumulated depletion, depreciation, amortization and impairment	(3,425)			(2,486)
Net property and equipment	19,600			18,544
Funds held in escrow	0
Equity method investments	0			1
Derivative instruments	58
Investment in subsidiaries	0			112
Deferred tax asset	0			0
Investment in real estate, net	0			12
Other assets	79			68
Total assets	20,451			19,685
Current liabilities:
Accounts payable-trade	233			128
Intercompany payable	4,267			4,673
Accrued capital expenditures	385			495
Other accrued liabilities	228			170
Revenues and royalties payable	207			143
Derivative instruments	10
Total current liabilities	5,330			5,609
Long-term debt	2,211			2,017
Derivative instruments	2			15
Asset retirement obligations	81			136
Deferred income taxes	1,408			1,403
Other long-term liabilities	11			10
Total liabilities	9,043			9,190
Commitments and contingencies
Stockholders’ equity	11,408			10,495
Non-controlling interest	0			0
Total equity	11,408			10,495
Total liabilities and equity	20,451			19,685
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Current assets:
Cash and cash equivalents	23			31
Accounts receivable, net	45			41
Accounts receivable - related party	44			9
Intercompany receivable	0			0
Inventories	13			9
Derivative instruments	0			0
Prepaid expenses and other	1			4
Total current assets	126			94
Property and equipment:
Oil and natural gas properties, full cost method of accounting	2,037			1,717
Midstream assets	884			416
Other property, equipment and land	91			76
Accumulated depletion, depreciation, amortization and impairment	(353)			(276)
Net property and equipment	2,659			1,933
Funds held in escrow	7
Equity method investments	225			0
Derivative instruments	0
Investment in subsidiaries	0			0
Deferred tax asset	158			97
Investment in real estate, net	111			104
Other assets	27			17
Total assets	3,313			2,245
Current liabilities:
Accounts payable-trade	0			0
Intercompany payable	0			0
Accrued capital expenditures	42			0
Other accrued liabilities	37			69
Revenues and royalties payable	0			0
Derivative instruments	0
Total current liabilities	79			69
Long-term debt	513			411
Derivative instruments	0			0
Asset retirement obligations	9			0
Deferred income taxes	5			0
Other long-term liabilities	0			0
Total liabilities	606			480
Commitments and contingencies
Stockholders’ equity	1,518			1,070
Non-controlling interest	1,189			695
Total equity	2,707			1,765
Total liabilities and equity	$ 3,313			$ 2,245

GUARANTOR FINANCIAL STATEMENTS - Income Statement (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues:
Lease bonus	$ 1			$ 1			$ 4	$ 2
Other operating income	2			3			7	7
Total revenues	975			537			2,860	1,543
Costs and expenses:
Lease operating expenses	128			49			364	129
Production and ad valorem taxes	61			33			180	93
Depreciation, depletion and amortization	365			146			1,046	391
General and administrative expenses	19			14			68	45
Asset retirement obligation accretion	1			0			6	1
Other operating expense	1			1			3	2
Total costs and expenses	626			269			1,781	727
Income (loss) from operations	349			268			1,079	816
Other income (expense):
Interest expense, net	(38)			(19)			(133)	(49)
Other income (expense), net	2			2			5	89
Gain (loss) on derivative instruments, net	177			(48)			3	(139)
Gain on revaluation of investment	0			0			4	5
Total other income (expense), net	141			(65)			(121)	(94)
Income (loss) before income taxes	490			203			958	722
Provision for income taxes	102			43			171	83
Net income	388	$ 356	$ 43	160	$ 301	$ 178	787	639
Net income attributable to non-controlling interest	20			3			60	100
Net income attributable to Diamondback Energy, Inc.	368			157			727	539
Oil sales
Revenues:
Revenue	882			454			2,572	1,334
Natural gas sales
Revenues:
Revenue	16			14			36	40
Natural gas liquid sales
Revenues:
Revenue	58			57			190	133
Royalty
Revenues:
Revenue	0			0			0	0
Midstream services
Revenues:
Revenue	16			8			51	27
Costs and expenses:
Cost of goods and services sold	26			20			60	49
Gathering and Transportation
Costs and expenses:
Cost of goods and services sold	25			6			54	17
Eliminations
Revenues:
Lease bonus	0			(3)			0	(3)
Other operating income	(1)			(1)			(3)	(2)
Total revenues	(97)			(42)			(264)	(102)
Costs and expenses:
Lease operating expenses	(46)			(10)			(101)	(30)
Production and ad valorem taxes	0			0			0	0
Depreciation, depletion and amortization	7			4			21	12
General and administrative expenses	(4)			(3)			(9)	(4)
Asset retirement obligation accretion	0						0	0
Other operating expense	0			0			0	0
Total costs and expenses	(68)			(14)			(162)	(34)
Income (loss) from operations	(29)			(28)			(102)	(68)
Other income (expense):
Interest expense, net	0			0			0	0
Other income (expense), net	(2)			(1)			(5)	(2)
Gain (loss) on derivative instruments, net	0			0			0	0
Gain on revaluation of investment							0	0
Total other income (expense), net	(2)			(1)			(5)	(2)
Income (loss) before income taxes	(31)			(29)			(107)	(70)
Provision for income taxes	0			0			0	0
Net income	(31)			(29)			(107)	(70)
Net income attributable to non-controlling interest	(60)			(46)			(121)	22
Net income attributable to Diamondback Energy, Inc.	29			17			14	(92)
Eliminations \| Oil sales
Revenues:
Revenue	65			63			183	185
Eliminations \| Natural gas sales
Revenues:
Revenue	2			4			5	9
Eliminations \| Natural gas liquid sales
Revenues:
Revenue	4			7			14	17
Eliminations \| Royalty
Revenues:
Revenue	(71)			(74)			(202)	(211)
Eliminations \| Midstream services
Revenues:
Revenue	(96)			(38)			(261)	(97)
Costs and expenses:
Cost of goods and services sold	(21)			0			(62)	0
Eliminations \| Gathering and Transportation
Costs and expenses:
Cost of goods and services sold	(4)			(5)			(11)	(12)
Parent \| Reportable Legal Entities
Revenues:
Lease bonus	0			0			0	0
Other operating income	0			0			0	0
Total revenues	0			0			0	0
Costs and expenses:
Lease operating expenses	0			0			0	0
Production and ad valorem taxes	0			0			0	0
Depreciation, depletion and amortization	0			0			0	0
General and administrative expenses	3			7			27	21
Asset retirement obligation accretion	0						0	0
Other operating expense	0			0			0	0
Total costs and expenses	3			7			27	21
Income (loss) from operations	(3)			(7)			(27)	(21)
Other income (expense):
Interest expense, net	(11)			(11)			(32)	(30)
Other income (expense), net	1			1			2	1
Gain (loss) on derivative instruments, net	0			0			0	0
Gain on revaluation of investment							0	0
Total other income (expense), net	(10)			(10)			(30)	(29)
Income (loss) before income taxes	(13)			(17)			(57)	(50)
Provision for income taxes	107			42			209	154
Net income	(120)			(59)			(266)	(204)
Net income attributable to non-controlling interest	0			0			0	0
Net income attributable to Diamondback Energy, Inc.	(120)			(59)			(266)	(204)
Parent \| Reportable Legal Entities \| Oil sales
Revenues:
Revenue	0			0			0	0
Parent \| Reportable Legal Entities \| Natural gas sales
Revenues:
Revenue	0			0			0	0
Parent \| Reportable Legal Entities \| Natural gas liquid sales
Revenues:
Revenue	0			0			0	0
Parent \| Reportable Legal Entities \| Royalty
Revenues:
Revenue	0			0			0	0
Parent \| Reportable Legal Entities \| Midstream services
Revenues:
Revenue	0			0			0	0
Costs and expenses:
Cost of goods and services sold	0			0			0	0
Parent \| Reportable Legal Entities \| Gathering and Transportation
Costs and expenses:
Cost of goods and services sold	0			0			0	0
Guarantor Subsidiaries \| Reportable Legal Entities
Revenues:
Lease bonus	0			0			0	0
Other operating income	0			0			0	0
Total revenues	885			451			2,596	1,296
Costs and expenses:
Lease operating expenses	174			59			465	159
Production and ad valorem taxes	56			28			167	79
Depreciation, depletion and amortization	329			119			943	319
General and administrative expenses	17			9			39	22
Asset retirement obligation accretion	0						5	1
Other operating expense	(1)			(1)			0	0
Total costs and expenses	604			225			1,684	608
Income (loss) from operations	281			226			912	688
Other income (expense):
Interest expense, net	(22)			(4)			(89)	(10)
Other income (expense), net	3			1			7	91
Gain (loss) on derivative instruments, net	177			(48)			3	(139)
Gain on revaluation of investment							0	0
Total other income (expense), net	158			(51)			(79)	(58)
Income (loss) before income taxes	439			175			833	630
Provision for income taxes	0			0			0	0
Net income	439			175			833	630
Net income attributable to non-controlling interest	0			0			0	0
Net income attributable to Diamondback Energy, Inc.	439			175			833	630
Guarantor Subsidiaries \| Reportable Legal Entities \| Oil sales
Revenues:
Revenue	817			391			2,389	1,149
Guarantor Subsidiaries \| Reportable Legal Entities \| Natural gas sales
Revenues:
Revenue	14			10			31	31
Guarantor Subsidiaries \| Reportable Legal Entities \| Natural gas liquid sales
Revenues:
Revenue	54			50			176	116
Guarantor Subsidiaries \| Reportable Legal Entities \| Royalty
Revenues:
Revenue	0			0			0	0
Guarantor Subsidiaries \| Reportable Legal Entities \| Midstream services
Revenues:
Revenue	0			0			0	0
Costs and expenses:
Cost of goods and services sold	0			1			0	0
Guarantor Subsidiaries \| Reportable Legal Entities \| Gathering and Transportation
Costs and expenses:
Cost of goods and services sold	29			10			65	28
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Revenues:
Lease bonus	1			4			4	5
Other operating income	3			4			10	9
Total revenues	187			128			528	349
Costs and expenses:
Lease operating expenses	0			0			0	0
Production and ad valorem taxes	5			5			13	14
Depreciation, depletion and amortization	29			23			82	60
General and administrative expenses	3			1			11	6
Asset retirement obligation accretion	1						1	0
Other operating expense	2			2			3	2
Total costs and expenses	87			51			232	132
Income (loss) from operations	100			77			296	217
Other income (expense):
Interest expense, net	(5)			(4)			(12)	(9)
Other income (expense), net	0			1			1	(1)
Gain (loss) on derivative instruments, net	0			0			0	0
Gain on revaluation of investment							4	5
Total other income (expense), net	(5)			(3)			(7)	(5)
Income (loss) before income taxes	95			74			289	212
Provision for income taxes	(5)			1			(38)	(71)
Net income	100			73			327	283
Net income attributable to non-controlling interest	80			49			181	78
Net income attributable to Diamondback Energy, Inc.	20			24			146	205
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Oil sales
Revenues:
Revenue	0			0			0	0
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Natural gas sales
Revenues:
Revenue	0			0			0	0
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Natural gas liquid sales
Revenues:
Revenue	0			0			0	0
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Royalty
Revenues:
Revenue	71			74			202	211
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Midstream services
Revenues:
Revenue	112			46			312	124
Costs and expenses:
Cost of goods and services sold	47			19			122	49
Non-Guarantor Subsidiaries \| Reportable Legal Entities \| Gathering and Transportation
Costs and expenses:
Cost of goods and services sold	$ 0			$ 1			$ 0	$ 1

GUARANTOR FINANCIAL STATEMENTS - Cash Flow Statement (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	$ 1,852	$ 1,153
Cash flows from investing activities:
Additions to oil and natural gas properties	(1,987)	(1,010)
Additions to midstream assets	(186)	(130)
Purchase of other property, equipment and land	(8)	(2)
Acquisition of leasehold interests	(311)	(186)
Acquisition of mineral interests	(320)	(336)
Proceeds from sale of assets	301	7
Investment in real estate	(1)	(111)
Funds held in escrow	(7)	(51)
Equity investments	(225)	0
Intercompany transfers		0
Net cash used in investing activities	(2,744)	(1,819)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	1,409	1,028
Repayment under credit facility	(1,168)	(1,222)
Proceeds from senior notes	0	1,062
Proceeds from joint venture	42	0
Debt issuance costs	(7)	(14)
Public offering costs	(40)	(3)
Contributions to subsidiaries		0
Contributions by members		0
Proceeds from public offerings	1,106	306
Distribution to parent	0
Contributions from subsidiaries	0
Distributions from subsidiary	0	0
Proceeds from exercise of stock options	9	0
Repurchased shares for tax withholdings	(13)	0
Repurchased as part of share buyback	(400)	0
Dividends to stockholders	(82)	(25)
Distributions to non-controlling interest	(79)	(69)
Intercompany transfers	0	0
Net cash (used in) provided by financing activities	777	1,063
Net (decrease) increase in cash and cash equivalents	(115)	397
Cash and cash equivalents at beginning of period	215	112
Cash and cash equivalents at end of period	100	509
Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) 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
Proceeds from sale of assets	0	0
Investment in real estate	0	0
Funds held in escrow	0	0
Equity investments	0
Intercompany transfers		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
Public offering costs	0	0
Contributions to subsidiaries		2
Contributions by members		(2)
Proceeds from public offerings	0	0
Distribution to parent	727
Contributions from subsidiaries	(727)
Distributions from subsidiary	(99)	(113)
Proceeds from exercise of stock options	0
Repurchased shares for tax withholdings	0
Repurchased as part of share buyback	0
Dividends to stockholders	0	0
Distributions to non-controlling interest	99	113
Intercompany transfers	0	0
Net cash (used in) provided by financing activities	0	0
Net (decrease) increase 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 \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(3)	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
Proceeds from sale of assets	0	0
Investment in real estate	0	0
Funds held in escrow	0	0
Equity investments	0
Intercompany transfers		(22)
Net cash used in investing activities	0	(22)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	0	0
Repayment under credit facility	0	0
Proceeds from senior notes		1,062
Proceeds from joint venture	0
Debt issuance costs	(116)	(14)
Public offering costs	0	0
Contributions to subsidiaries		(1)
Contributions by members		0
Proceeds from public offerings	0	0
Distribution to parent	0
Contributions from subsidiaries	0
Distributions from subsidiary	99	113
Proceeds from exercise of stock options	9
Repurchased shares for tax withholdings	(13)
Repurchased as part of share buyback	(400)
Dividends to stockholders	(82)	(25)
Distributions to non-controlling interest	0	0
Intercompany transfers	470	(696)
Net cash (used in) provided by financing activities	(33)	439
Net (decrease) increase in cash and cash equivalents	(36)	417
Cash and cash equivalents at beginning of period	84	54
Cash and cash equivalents at end of period	48	471
Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	1,529	861
Cash flows from investing activities:
Additions to oil and natural gas properties	(1,987)	(1,010)
Additions to midstream assets	0	(21)
Purchase of other property, equipment and land	(8)	3
Acquisition of leasehold interests	(311)	(186)
Acquisition of mineral interests	0	170
Proceeds from sale of assets	301	6
Investment in real estate	0	(111)
Funds held in escrow	0	(51)
Equity investments	(149)
Intercompany transfers		22
Net cash used in investing activities	(2,154)	(1,178)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	930	471
Repayment under credit facility	(789)	(868)
Proceeds from senior notes		0
Proceeds from joint venture	42
Debt issuance costs	114	0
Public offering costs	0	0
Contributions to subsidiaries		0
Contributions by members		0
Proceeds from public offerings	0	0
Distribution to parent	0
Contributions from subsidiaries	727
Distributions from subsidiary	0	0
Proceeds from exercise of stock options	0
Repurchased shares for tax withholdings	0
Repurchased as part of share buyback	0
Dividends to stockholders	0	0
Distributions to non-controlling interest	0	0
Intercompany transfers	(470)	695
Net cash (used in) provided by financing activities	554	298
Net (decrease) increase in cash and cash equivalents	(71)	(19)
Cash and cash equivalents at beginning of period	100	34
Cash and cash equivalents at end of period	29	15
Non-Guarantor Subsidiaries \| Reportable Legal Entities
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	326	292
Cash flows from investing activities:
Additions to oil and natural gas properties	0	0
Additions to midstream assets	(186)	(109)
Purchase of other property, equipment and land	0	(5)
Acquisition of leasehold interests	0	0
Acquisition of mineral interests	(320)	(506)
Proceeds from sale of assets	0	1
Investment in real estate	(1)	0
Funds held in escrow	(7)	0
Equity investments	(76)
Intercompany transfers		0
Net cash used in investing activities	(590)	(619)
Cash flows from financing activities:
Proceeds from borrowing under credit facility	479	557
Repayment under credit facility	(379)	(354)
Proceeds from senior notes		0
Proceeds from joint venture	0
Debt issuance costs	(5)	0
Public offering costs	(40)	(3)
Contributions to subsidiaries		(1)
Contributions by members		2
Proceeds from public offerings	1,106	306
Distribution to parent	(727)
Contributions from subsidiaries	0
Distributions from subsidiary	0	0
Proceeds from exercise of stock options	0
Repurchased shares for tax withholdings	0
Repurchased as part of share buyback	0
Dividends to stockholders	0	0
Distributions to non-controlling interest	(178)	(182)
Intercompany transfers	0	1
Net cash (used in) provided by financing activities	256	326
Net (decrease) increase in cash and cash equivalents	(8)	(1)
Cash and cash equivalents at beginning of period	31	24
Cash and cash equivalents at end of period	$ 23	$ 23

Label	Element	Value
Noncontrolling Interest [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (7,000,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (9,000,000)