0001539838-20-000111 | 10-Q | XBRL Viewer

Equity-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

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,
	2020		2019		2020		2019
	(in millions)
General and administrative expenses	$	9	$	4	$	27	$	27
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties	4		(1)		12		9

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, 2020:


	Restricted Stock Awards & Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	505,867	$	96.01
Granted	183,102	$	60.72
Vested	(139,355)	$	85.21
Forfeited	(19,228)	$	99.01
Unvested at September 30, 2020	530,386	$	86.55

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 2020 awards.


	2020			2019			2018
Grant-date fair value	$	70.17		$	137.22		$	170.45
Grant-date fair value (5-year vesting)				$	132.48
Risk-free rate	0.86		%	2.55		%	1.99		%
Company volatility	36.70		%	35.00		%	35.90		%

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, 2020:


	Performance Restricted Stock Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	271,819	$	147.07
Granted	272,601	$	85.73
Vested	(47,554)	$	89.27
Forfeited	(8,396)	$	170.45
Unvested at September 30, 2020(1)	488,470	$	110.33

(1)A maximum of 1,089,464 units could be awarded based upon the Company’s final TSR ranking.

Phantom units activity

The following table presents the phantom unit activity under the Rattler LTIP for the nine months ended September 30, 2020:


	Phantom Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	2,226,895	$	19.14
Granted	53,943	$	10.41
Vested	(449,633)	$	19.14
Forfeited	(23,442)	$	18.23
Unvested at September 30, 2020	1,807,763	$	18.89

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 92	$ 123
Restricted cash	7	5
Accounts receivable:
Joint interest and other, net	67	186
Oil and natural gas sales, net	224	429
Inventories	33	37
Derivative instruments	15	46
Income tax receivable	100	19
Prepaid expenses and other current assets	20	24
Total current assets	558	869
Property and equipment:
Oil and natural gas properties, full cost method of accounting ($7,879 million and $9,207 million excluded from amortization at September 30, 2020 and December 31, 2019, respectively)	27,305	25,782
Midstream assets	1,026	931
Other property, equipment and land	135	125
Accumulated depletion, depreciation, amortization and impairment	(11,031)	(5,003)
Property and equipment, net	17,435	21,835
Equity method investments	532	479
Derivative instruments	0	7
Deferred tax assets, net	75	142
Investment in real estate, net	104	109
Other assets	56	90
Total assets	18,760	23,531
Current liabilities:
Accounts payable - trade	95	179
Accrued capital expenditures	309	475
Current maturities of long-term debt	191	0
Other accrued liabilities	329	304
Revenues and royalties payable	219	278
Derivative instruments	86	27
Total current liabilities	1,229	1,263
Long-term debt	5,656	5,371
Derivative instruments	108	0
Asset retirement obligations	112	94
Deferred income taxes	978	1,886
Other long-term liabilities	8	11
Total liabilities	8,091	8,625
Commitments and contingencies (Note 17)
Stockholders’ equity:
Common stock, $0.01 par value; 200,000,000 shares authorized; 157,849,848 and 159,002,338 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	2	2
Additional paid-in capital	12,615	12,357
Retained earnings (accumulated deficit)	(3,065)	890
Total Diamondback Energy, Inc. stockholders’ equity	9,552	13,249
Non-controlling interest	1,117	1,657
Total equity	10,669	14,906
Total liabilities and equity	$ 18,760	$ 23,531

Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) - USD ($) $ in Millions	Total	Viper Energy Partners LP	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Non-Controlling Interest	Non-Controlling Interest Viper Energy Partners LP
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			164,273,000
Increase (Decrease) in Stockholders' Equity
Net proceeds from issuance of common units		$ 341					$ 341
Stock-based compensation	19			19
Repurchased shares for share buyback program	(13)			(13)
Repurchased shares for share buyback program (in Shares)			(125,000)
Distribution to non-controlling interest	(26)					(26)
Dividend paid	(20)				(20)
Exercise of stock options and vesting of restricted stock units	0			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 (loss)	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			164,273,000
Increase (Decrease) in Stockholders' Equity
Net income (loss)	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			161,142,000
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		$ 720					$ 720
Unit-based compensation	2					2
Stock-based compensation	12			12
Repurchased shares for share buyback program	(104)			(104)
Repurchased shares for share buyback program (in Shares)			(1,016,000)
Distribution to non-controlling interest	(24)					(24)
Dividend paid	(32)				(32)
Exercise of stock options and vesting of restricted stock units	6			6
Exercise of stock and unit options and awards of restricted stock (in Shares)			349,000
Net income (loss)	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
Repurchased shares for share buyback program	(296)			(296)
Repurchased shares for share buyback program (in Shares)			(2,954,000)
Distribution to non-controlling interest	(29)					(29)
Dividend paid	(30)				(30)
Exercise of stock options and vesting of restricted stock units	3			3
Exercise of stock and unit options and awards of restricted stock (in Shares)			147,000
Net income (loss)	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			161,142,000
Balance at beginning of period at Dec. 31, 2019	$ 14,906		$ 2	12,357	890	1,657
Balance at beginning of period (in Shares) at Dec. 31, 2019	159,002,338		159,002,000
Increase (Decrease) in Stockholders' Equity
Unit-based compensation	$ 5					5
Distribution equivalent rights payments	(1)					(1)
Stock-based compensation	10			10
Repurchased shares for tax withholding	(5)			(5)
Repurchased shares for tax withholding (in Shares)			(75,000)
Repurchased shares for share buyback program	(98)			(98)
Repurchased shares for share buyback program (in Shares)			(1,280,000)
Distribution to non-controlling interest	(43)					(43)
Dividend paid	(59)				(59)
Exercise of stock options and vesting of restricted stock units	1			1
Exercise of stock and unit options and awards of restricted stock (in Shares)			168,000
Net income (loss)	(400)				(272)	(128)
Balance at end of period at Mar. 31, 2020	14,316		$ 2	12,265	559	1,490
Balance at end of period (in Shares) at Mar. 31, 2020			157,815,000
Balance at beginning of period at Dec. 31, 2019	$ 14,906		$ 2	12,357	890	1,657
Balance at beginning of period (in Shares) at Dec. 31, 2019	159,002,338		159,002,000
Increase (Decrease) in Stockholders' Equity
Repurchased shares for share buyback program	$ (98)
Net income (loss)	(3,916)
Balance at end of period at Sep. 30, 2020	$ 10,669		$ 2	12,615	(3,065)	1,117
Balance at end of period (in Shares) at Sep. 30, 2020	157,849,848		157,850,000
Balance at beginning of period at Mar. 31, 2020	$ 14,316		$ 2	12,265	559	1,490
Balance at beginning of period (in Shares) at Mar. 31, 2020			157,815,000
Increase (Decrease) in Stockholders' Equity
Distribution equivalent rights payments	(1)					(1)
Stock-based compensation	11			11
Repurchased shares for tax withholding	(2)			0		(2)
Distribution to non-controlling interest	(19)					(19)
Dividend paid	(59)				(59)
Exercise of stock options and vesting of restricted stock units	0			0
Exercise of stock and unit options and awards of restricted stock (in Shares)			9,000
Change in ownership of consolidated subsidiaries, net	0			329		(329)
Net income (loss)	(2,411)				(2,393)	(18)
Balance at end of period at Jun. 30, 2020	11,835		$ 2	12,605	(1,893)	1,121
Balance at end of period (in Shares) at Jun. 30, 2020			157,824,000
Increase (Decrease) in Stockholders' Equity
Unit-based compensation	3					3
Stock-based compensation	10			10
Repurchased shares for tax withholding	$ 0			0
Repurchased shares for tax withholding (in Shares)			(1,000)
Repurchased shares for share buyback program (in Shares)	0
Distribution to non-controlling interest	$ (15)					(15)
Dividend paid	(59)				(59)
Exercise of stock options and vesting of restricted stock units	0			0
Exercise of stock and unit options and awards of restricted stock (in Shares)			27,000
Net income (loss)	(1,105)				(1,113)	8
Balance at end of period at Sep. 30, 2020	$ 10,669		$ 2	$ 12,615	$ (3,065)	$ 1,117
Balance at end of period (in Shares) at Sep. 30, 2020	157,849,848		157,850,000

EQUITY METHOD INVESTMENTS - Carrying Values of Rattler’s Equity Method Investments (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019	Dec. 20, 2019	Oct. 01, 2019	Jul. 30, 2019	Feb. 15, 2019	Feb. 01, 2019
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 532	$ 479
Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method investments	532	479
EPIC Crude Holdings, LP \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage							10.00%
Equity method investments	123	110
Gray Oak Pipeline, LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage						10.00%
Equity method investments	135	115
Wink to Webster Pipeline LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage					4.00%
Equity method investments	75	34
OMOG JV LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage				60.00%
Equity method investments	195	219
Amarillo Rattler, LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage			50.00%
Equity method investments	$ 4	$ 1

EQUITY-BASED COMPENSATION - Rattler Phantom Units (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Phantom Units
Unvested, beginning balance (in shares) \| shares	2,226,895
Granted (in shares) \| shares	53,943
Vested (in shares) \| shares	(449,633)
Forfeited (in shares) \| shares	(23,442)
Unvested, ending balance (in shares) \| shares	1,807,763
Weighted Average Grant-Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 19.14
Granted (in USD per share) \| $ / shares	10.41
Vested (in USD per share) \| $ / shares	19.14
Forfeited (in USD per share) \| $ / shares	18.23
Unvested, ending balance (in USD per share) \| $ / shares	$ 18.89

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

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.

Making accurate estimates and assumptions is particularly difficult as the oil and natural gas industry experiences challenges resulting from negative pricing pressure from the effects of COVID-19 and actions by OPEC members and other exporting nations on the supply and demand in global oil and gas markets. Companies in the oil and gas industry have changed near term business plans in response to changing market conditions. The aforementioned circumstances generally increase the uncertainty in the Company’s accounting estimates, particularly those involving financial forecasts.

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 derivative instruments and estimates of income taxes.

Accounts Receivable

Accounts receivable consist of receivables from joint interest owners on properties the Company operates and from sales of oil and natural gas production delivered to purchasers. The purchasers remit payment for production directly to the Company. Most payments for production are received within three months after the production date.

The Company adopted Accounting Standards Update (“ASU”) 2016-13 and the subsequent applicable modifications to the rule on January 1, 2020. Accounts receivable are stated at amounts due from joint interest owners or purchasers, net of an allowance for expected losses as estimated by the Company when collection is deemed doubtful. For receivables from joint interest owners, the Company typically has the ability to withhold future revenue disbursements to recover any non-payment of joint interest billings. Accounts receivable from joint interest owners or purchasers outstanding longer than the contractual payment terms are considered past due. The Company determines its allowance for each type of receivable by considering a number of factors, including the length of time accounts receivable are past due, the Company’s previous loss history, the debtor’s current ability to pay its obligation to the Company, the condition of the general economy and the industry as a whole. The Company writes off specific accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for expected losses. The adoption of ASU 2016-13 did not result in a material change to the Company’s allowance. At September 30, 2020 and December 31, 2019, the Company recorded an immaterial allowance for expected losses.

Non-controlling Interest

Non-controlling interest in the accompanying condensed consolidated financial statements represents minority interest ownership in Viper and Rattler. When the Company’s relative ownership interests in Viper and Rattler change, adjustments to non-controlling interest and additional paid-in-capital, tax effected, will occur. Because these changes in the ownership interests in Viper and Rattler do not result in a change of control, the transactions are accounted for as equity transactions under ASC Topic 810, Consolidation, which requires that any differences between the carrying value of the Company’s basis in Viper and Rattler and the fair value of the consideration received are recognized directly in equity and attributed to the controlling interest.

In the second quarter of 2020, the Company recorded an adjustment to non-controlling interest for Rattler of $(329) million and to additional paid-in-capital of $329 million to reflect the ownership structure that was effective at June 30, 2020. The adjustment had no impact on earnings. See Note 11—Capital Stock and Earnings Per Share for a presentation of the change in ownership.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. The following table provides a brief description of recent accounting pronouncements and the Company’s analysis of the effects on its financial statements:


Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Recently Adopted Pronouncements
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.	Q1 2020	The Company adopted this update effective January 1, 2020. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity since it does not have a history of credit losses.




Pronouncements Not Yet Adopted
ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes”	This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance.	Q1 2021	This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company does not believe that the adoption of this update will have an impact on its financial position, results of operations or liquidity.

EQUITY-BASED COMPENSATION - Schedule of Stock-Based Compensation Plans and Related Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
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	$ 4	$ (1)	$ 12	$ 9
General and administrative expenses
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
General and administrative expenses	$ 9	$ 4	$ 27	$ 27

DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net	$ (99)	$ 177	$ 82	$ 3
Net cash received (paid) on settlements	(9)	11	288	33
Commodity contracts
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net	(104)	157	147	(17)
Net cash received (paid) on settlements	(9)	11	288	33
Cash received on contract	6		17
Interest rate swaps
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on derivative instruments, net	$ 5	$ 20	$ (65)	$ 20

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Oil and natural gas properties:
Not subject to depletion	$ 7,879	$ 9,207
Gross oil and natural gas properties	27,305	25,782
Accumulated depletion and depreciation	(11,031)	(5,003)
Midstream assets	1,026	931
Other property, equipment and land	135	125
Property and equipment, net	17,435	21,835
Oil and Natural Gas
Oil and natural gas properties:
Subject to depletion	19,426	16,575
Not subject to depletion	7,879	9,207
Gross oil and natural gas properties	27,305	25,782
Accumulated depletion and depreciation	(3,988)	(2,995)
Accumulated impairment	(6,933)	(1,934)
Oil and natural gas properties, net	16,384	20,853
Other Property and Equipment, Net
Oil and natural gas properties:
Accumulated depletion and depreciation	(110)	(74)
Other property, equipment and land	$ 135	$ 125

EQUITY METHOD INVESTMENTS

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

EQUITY METHOD INVESTMENTS

The following table presents the carrying values of Rattler’s equity method investments as of the dates indicated:


	Ownership Interest		September 30, 2020		December 31, 2019
			(in millions)
EPIC Crude Holdings, LP	10	%	$	123	$	110
Gray Oak Pipeline, LLC	10	%	135		115
Wink to Webster Pipeline LLC	4	%	75		34
OMOG JV LLC	60	%	195		219
Amarillo Rattler, LLC	50	%	4		1
Total			$	532	$	479

The following table presents income (loss) from Rattler’s equity method investees reflected in the Condensed Consolidated Statement of Operations for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
EPIC Crude Holdings, LP	$	(2)	$	—	$	(5)	$	—
Gray Oak Pipeline, LLC	4		—		6		—

OMOG JV LLC	1		—		(11)		—


Total	$	3	$	—	$	(10)	$	—

On February 1, 2019, Rattler LLC acquired a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which owns and operates a pipeline (the “EPIC pipeline”) that transports crude and natural gas liquids across Texas for delivery into the Corpus Christi market. The EPIC pipeline became fully operational in April 2020.

On February 15, 2019, Rattler LLC acquired a 10% equity interest in Gray Oak Pipeline, LLC (“Gray Oak”), which owns and operates a pipeline (the “Gray Oak pipeline”) that transports crude from the Permian to Corpus Christi on the Texas Gulf Coast. The Gray Oak pipeline became fully operational in April 2020.

On March 29, 2019, Rattler LLC executed a short-term promissory note to Gray Oak. The note allowed for borrowing by Gray Oak of up to $123 million at 2.52% interest rate with a maturity date of March 31, 2022. The short-term promissory note was repaid on May 31, 2019.

On June 4, 2019, Rattler entered into an equity contribution agreement with respect to Gray Oak. The equity contribution agreement required Rattler to contribute equity or make loans to Gray Oak so that Gray Oak can, to the extent necessary, cure payment defaults under Gray Oak’s credit agreement and, in certain instances, repay Gray Oak’s credit agreement in full. Rattler’s obligations under the equity contribution agreement were limited to its proportionate ownership interest in Gray Oak, and such obligations were guaranteed by Rattler LLC, Tall City, Rattler OMOG LLC and Rattler Ajax Processing LLC. The equity contribution agreement and Rattler’s obligations under the agreement were terminated in September 2020.

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 pipeline”). The Wink to Webster pipeline is expected to begin service in the first half of 2021.

On October 1, 2019, Rattler LLC acquired a 60% equity interest in OMOG JV LLC (“OMOG”). On November 7, 2019, OMOG acquired 100% of Reliance Gathering, LLC which owns and operates a crude oil gathering system in the Permian Basin, and was renamed as Oryx Midland Oil Gathering LLC following the acquisition.

On December 20, 2019, Rattler LLC acquired a 50% equity interest in Amarillo Rattler, LLC (“Amarillo Rattler”), which currently owns and operates the Yellow Rose gas gathering and processing system with estimated total processing capacity of 40,000 Mcf/d and over 84 miles of gathering and regional transportation pipelines in Dawson, Martin and Andrews Counties, Texas. Amarillo Rattler also intends to construct and operate a new 60,000 Mcf/d cryogenic natural gas processing plant in Martin County, Texas, as well as incremental gas gathering and compression and regional transportation pipelines. However, development of the new processing plant has been postponed pending a recovery in commodity prices and activity levels. The Company has contracted for up to 30,000 Mcf/d of the capacity of the new processing plant pursuant to a gas gathering and processing agreement entered into with Amarillo Rattler in exchange for the Company’s dedication of certain leasehold interests to that agreement.

Rattler reviews its investments to determine if a loss in value which is other than temporary has occurred. If such a loss has occurred, Rattler recognizes an impairment provision. During the nine months ended September 30, 2020, Rattler’s loss from equity method investments includes a proportional charge of $16 million representing impairment recorded by the investee associated with its goodwill. During the three months and nine months ended September 30, 2020, Rattler’s loss from equity method investment includes an immaterial abandonment charge related to a project that is no longer expected to be completed. No other impairments were recorded for Rattler’s equity method investments for the three or nine months ended September 30, 2020 or 2019. Rattler’s investees all serve customers in the oil and gas industry, which has begun to experience economic challenges as described above. It is possible that prolonged industry challenges could result in circumstances requiring impairment testing, which could result in potentially material impairment charges in future interim periods.

CAPITAL STOCK AND EARNINGS PER SHARE - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic:
Net income (loss) attributable to common stock	$ (1,113)	$ 368	$ (3,778)	$ 727
Basic weighted average common units outstanding (in shares)	157,833,000	162,543,000	157,984,000	164,070,000
Effect of dilutive securities:
Potential common shares issuable (in shares)	0	237,000	0	396,000
Diluted:
Diluted weighted average common shares outstanding (in shares)	157,833,000	162,780,000	157,984,000	164,466,000
Basic net income attributable to common stock (in USD per share)	$ (7.05)	$ 2.27	$ (23.91)	$ 4.44
Diluted net income attributable to common stock (in USD per share)	$ (7.05)	$ 2.26	$ (23.91)	$ 4.42
Restricted stock units (in shares)		50,814		40,291

SUBSEQUENT EVENTS - Narratives (Details) - USD ($)		3 Months Ended		9 Months Ended
SUBSEQUENT EVENTS - Narratives (Details) - USD ($)	Oct. 29, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	May 31, 2019
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)		$ 0.375	$ 0.1875	$ 1.125	$ 0.5625
Stock repurchase program authorized amount						$ 2,000,000,000
Subsequent Event
Subsequent Event [Line Items]
Dividends declared per share (in USD per share)	$ 0.375
Subsequent Event \| Common Stock \| Rattler LLC
Subsequent Event [Line Items]
Stock repurchase program authorized amount	$ 100,000,000

LEASES - Summary of Operating Lease Costs (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease costs	$ 4	$ 7	$ 13	$ 19

EQUITY METHOD INVESTMENTS - Income (Loss) from Rattler’s Equity Method Investees (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Schedule of Equity Method Investments [Line Items]
(Income) loss from equity investment	$ 3	$ 0	$ (10)	$ 0
EPIC Crude Holdings, LP \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
(Income) loss from equity investment	(2)	0	(5)	0
Gray Oak Pipeline, LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
(Income) loss from equity investment	4	0	6	0
OMOG JV LLC \| Rattler LLC
Schedule of Equity Method Investments [Line Items]
(Income) loss from equity investment	$ 1	$ 0	$ (11)	$ 0

EQUITY-BASED COMPENSATION - Restricted Stock Units (Narratives) (Details) - Restricted Stock Units (RSUs) - Equity Plan - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregated fair value of restricted stock	$ 12,000,000	$ 4,000,000
Share based award not recognized	$ 27,000,000
Share based payment not recognized	1 year 8 months 12 days
Incremental compensation	$ 0

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Third Quarter 2020 Dividend Declaration

On October 29, 2020, the Board of Directors of the Company declared a cash dividend for the third quarter of 2020 of $0.375 per share of common stock, payable on November 19, 2020 to its stockholders of record at the close of business on November 12, 2020.

Amendment to the Rattler Credit Agreement in Connection with Initiation of Rattler’s Common Unit Repurchase Program

On November 2, 2020, Rattler and Rattler LLC entered into a second amendment (the “Second Amendment”) to the Rattler Credit Agreement with Wells Fargo, as the administrative agent, and the lenders party thereto. The Second Amendment permits Rattler to conduct common unit repurchases in connection with the common unit repurchase program approved by the board of directors of Rattler’s General Partner on October 29, 2020.

Under Rattler’s common unit repurchase program to be conducted under Rule 10b-18 of the Exchange Act, Rattler is authorized to acquire up to $100 million of Rattler’s outstanding common units in open market or privately negotiated transactions with cash on hand and free cash flow from operations. The common unit repurchase program is authorized to extend through December 31, 2021, may be suspended from time to time or modified, extended or discontinued by the board of directors of Rattler’s General Partner at any time, and will be subject to market conditions, applicable legal requirements, contractual obligations and other factors.

Commodity Contracts

Subsequent to September 30, 2020, the Company entered into new fixed price swaps and basis swaps. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges noted in the table below.

The following tables present the derivative contracts entered into by the Company between October 1, 2020 and November 2, 2020. When aggregating multiple contracts, the weighted average contract price is disclosed.


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Jan. - Mar.	2021	Costless Collar	3,000	WTI Cushing	$—	$—	$37.00	$44.19
Mar. - June	2021	Costless Collar	1,000	WTI Cushing	$—	$—	$37.00	$47.00
Jan. - June	2021	Costless Collar	6,000	Brent	$—	$—	$37.50	$45.50
NATURAL GAS
Jan. - Dec.	2021	Swaps	10,000	Henry Hub	$—	$3.05	$—	$—
Jan. - Dec.	2022	Basis Swap	20,000	Waha Hub	$(0.31)	$—	$—	$—

Interest Rate Swaps

Subsequent to September 30, 2020, the Company entered into new interest rate swaps and terminated existing interest rate swaps.

The following table presents the interest rate swaps entered into by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.692	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.8361	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.852	%

The following table presents the interest rate swap contracts terminated by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%

DIVESTITURE - Divestiture of Certain Conventional and Non-Core Assets Acquired from Energen (Details) - Energen Corporation Merger $ in Millions	Jul. 01, 2019 USD ($) a	May 23, 2019 USD ($) a
Business Acquisition [Line Items]
Area of land (in acre) \| a	103,750	6,589
Payment to acquire businesses \| $	$ 285	$ 37

CAPITAL STOCK AND EARNINGS PER SHARE - Change in Ownership of Consolidated Subsidiaries (Details) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to the Company	$ (1,113,000)		$ 368,000		$ (3,778,000)	$ 727,000
Change in ownership of consolidated subsidiaries, net		$ 0		$ 3,000
Limited Partner
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to the Company	(1,113,000)		368,000		(3,778,000)	727,000
Change in ownership of consolidated subsidiaries, net	0		0		329,000	77,000
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest	$ (1,113,000)		$ 368,000		$ (3,449,000)	$ 804,000

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESThe Company is a party to various routine legal proceedings, disputes and claims arising in the ordinary 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’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Company’s financial condition, results of operations or cash flows. 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.

PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Impairment of oil and natural gas properties	$ 1,451	$ 0	$ 4,999	$ 0
Capitalized internal costs	$ 14	$ 8	$ 42	$ 32
Timing of inclusion of costs in amortization calculation			5 years

DEBT - Long-term Debt (Details) - USD ($) $ in Millions	Sep. 30, 2020	May 26, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 5,847.0		$ 5,371.0
Unamortized debt issuance costs	(30.0)		(19.0)
Unamortized discount costs	(28.0)		(31.0)
Unamortized premium costs	16.0		9.0
Current maturities of long-term debt	(191.0)		0.0
Total debt, net	5,656.0		5,371.0
4.625% Notes due 2021
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 191.0	$ 209.0	399.0
Debt instrument stated interest rate	4.625%	4.625%
7.320% Medium-term Notes, Series A, due 2022
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 20.0		21.0
Debt instrument stated interest rate	7.32%
2.875% Senior Notes due 2024
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 1,000.0		1,000.0
Debt instrument stated interest rate	2.875%
4.750% Senior Notes due 2025
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 500.0		0.0
Debt instrument stated interest rate	4.75%
5.375% Senior Notes due 2025
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 800.0		800.0
Debt instrument stated interest rate	5.375%
3.250% Senior Notes due 2026
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 800.0		800.0
Debt instrument stated interest rate	3.25%
7.350% Medium-term Notes, Series A, due 2027
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 0.0		11.0
Debt instrument stated interest rate	7.35%
7.125% Medium-term Notes, Series B, due 2028
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 100.0		108.0
Debt instrument stated interest rate	7.125%
3.500% Senior Notes due 2029
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 1,200.0		1,200.0
Debt instrument stated interest rate	3.50%
DrillCo Agreement
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 86.0		39.0
Company revolving credit facility
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	0.0		13.0
Viper revolving credit facility \| Viper Energy Partners LP
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 127.0		97.0
Viper 5.375% Senior Notes due 2027
Debt Instrument [Line Items]
Debt instrument stated interest rate	5.375%
Viper 5.375% Senior Notes due 2027 \| Viper Energy Partners LP
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 480.0		500.0
Rattler revolving credit facility \| Rattler LLC
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 85.0		424.0
Rattler 5.625% Senior Notes due 2025
Debt Instrument [Line Items]
Debt instrument stated interest rate	5.625%
Rattler 5.625% Senior Notes due 2025 \| Rattler LLC
Debt Instrument [Line Items]
Outstanding borrowings on revolving credit facility	$ 500.0		$ 0.0

DEBT - May 2020 Senior Notes (Details) - USD ($)		9 Months Ended
DEBT - May 2020 Senior Notes (Details) - USD ($)	May 26, 2020	Sep. 30, 2020	Sep. 30, 2019
Debt Instrument [Line Items]
Proceeds from senior notes		$ 997,000,000	$ 0
Senior Notes \| May 2020 Notes
Debt Instrument [Line Items]
Aggregate principal amount	$ 500,000,000
Debt instrument stated interest rate	4.75%
Proceeds from senior notes	$ 496,000,000

RATTLER MIDSTREAM LP (Details) - USD ($) $ / shares in Units, $ in Millions	May 28, 2019	Sep. 30, 2020
Noncontrolling Interest [Line Items]
Limited partners capital contribution	$ 1
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
Ownership percentage	29.00%	71.00%
Limited partners ownership percentage	71.00%
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
General partners cash contribution	$ 1
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
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 equivalent rights	$ 727

DEBT - Rattler's Notes (Details) - Notes Offering - Rattler LLC	Jul. 14, 2020 USD ($)
Debt Instrument [Line Items]
Aggregate principal amount	$ 500,000,000
Debt instrument stated interest rate	5.625%
Proceeds from issuance of debt	$ 490,000,000

EQUITY-BASED COMPENSATION - Performance Restricted Stock Activity (Details) - Equity Plan - Performance Shares - $ / shares	1 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Feb. 28, 2018	Sep. 30, 2020
Awards & Units (in shares)
Unvested, beginning balance (in shares)				271,819
Granted (in shares)	225,047		117,423	272,601
Vested (in shares)				(47,554)
Forfeited (in shares)				(8,396)
Unvested, ending balance (in shares)				488,470
Weighted Average Exercise Price (in USD per share)
Unvested, beginning balance (in USD per share)				$ 147.07
Granted (in USD per share)	$ 70.17	$ 137.22	$ 170.45	85.73
Vested (in USD per share)				89.27
Forfeited (in USD per share)				170.45
Unvested, ending balance (in USD per share)				$ 110.33
Share based compensation arrangement by share based payment maximum award potential (in shares)				1,089,464

EQUITY-BASED COMPENSATION

9 Months Ended

Sep. 30, 2020

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,
	2020		2019		2020		2019
	(in millions)
General and administrative expenses	$	9	$	4	$	27	$	27
Equity-based compensation capitalized pursuant to full cost method of accounting for oil and natural gas properties	4		(1)		12		9

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, 2020:


	Restricted Stock Awards & Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	505,867	$	96.01
Granted	183,102	$	60.72
Vested	(139,355)	$	85.21
Forfeited	(19,228)	$	99.01
Unvested at September 30, 2020	530,386	$	86.55

The aggregate fair value of restricted stock units that vested during the nine months ended September 30, 2020 and 2019 was $12 million and $4 million, respectively. As of September 30, 2020, the Company’s unrecognized compensation cost related to unvested restricted stock awards and units was $27 million, which is expected to be recognized over a weighted-average period of 1.7 years.

During the nine months ended September 30, 2020, the Company modified an insignificant amount of restricted stock units to include dividend equivalent rights during the vesting period which resulted in no incremental compensation costs to be recognized.

Performance Based Restricted Stock Units

In February 2018, eligible employees received performance restricted stock unit awards totaling 117,423 units from which a minimum of 0% and a maximum of 200% units could be awarded based upon measurement of total stockholder return of the Company’s common stock (“TSR”) as compared to a designated peer group during the performance period of January 1, 2018 to December 31, 2020 and cliff vest at December 31, 2020 subject to continued employment.

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 based upon the TSR during the performance period of January 1, 2019 to December 31, 2021 and cliff vest at December 31, 2021 subject to continued employment. 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.

In March 2020, eligible employees received performance restricted stock unit awards totaling 225,047 units from which a minimum of 0% and a maximum of 200% units could be awarded based upon the TSR during the three-year performance period of January 1, 2020 to December 31, 2022 and cliff vest at December 31, 2022 subject to continued employment. The initial payout of the March 2020 awards will be further adjusted by a TSR modifier that may reduce the payout or increase the payout up to a maximum of 250%.

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 2020 awards.


	2020			2019			2018
Grant-date fair value	$	70.17		$	137.22		$	170.45
Grant-date fair value (5-year vesting)				$	132.48
Risk-free rate	0.86		%	2.55		%	1.99		%
Company volatility	36.70		%	35.00		%	35.90		%

The following table presents the Company’s performance restricted stock units activity under the Equity Plan for the nine months ended September 30, 2020:


	Performance Restricted Stock Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	271,819	$	147.07
Granted	272,601	$	85.73
Vested	(47,554)	$	89.27
Forfeited	(8,396)	$	170.45
Unvested at September 30, 2020(1)	488,470	$	110.33

(1)A maximum of 1,089,464 units could be awarded based upon the Company’s final TSR ranking.

As of September 30, 2020, the Company’s unrecognized compensation cost related to unvested performance based restricted stock awards and units was $26 million, which is expected to be recognized over a weighted-average period of 2.0 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, 2020:


	Phantom Units	Weighted Average Grant-Date Fair Value
Unvested at December 31, 2019	2,226,895	$	19.14
Granted	53,943	$	10.41
Vested	(449,633)	$	19.14
Forfeited	(23,442)	$	18.23
Unvested at September 30, 2020	1,807,763	$	18.89

The aggregate fair value of phantom units that vested during the nine months ended September 30, 2020 was $9 million. As of September 30, 2020, the unrecognized compensation cost related to unvested phantom units was $31 million. Such cost is expected to be recognized over a weighted-average period of 3.6 years.

LEASES - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Statement of consolidated cash flow	$ 13	$ 19
Additional amount of operating lease right of use asset recorded	10	$ 15
Operating right of use asset	13
Operating lease liability current	9
Operating lease liability noncurrent	$ 4
Weighted average remaining lease term	1 year 6 months
Weighted average discount rate	9.20%

REAL ESTATE ASSETS (Details) - USD ($) $ in Millions	9 Months Ended
REAL ESTATE ASSETS (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Real Estate [Line Items]
Buildings	$ 102	$ 102
Tenant improvements	5	5
Land	2	2
Land improvements	1	1
Total real estate assets	110	110
Less: accumulated depreciation	(12)	(9)
Total investment in land and buildings, net	$ 98	$ 101
Buildings \| Minimum
Real Estate [Line Items]
Real estate assets, estimated useful lives	20 years
Buildings \| Maximum
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

SEGMENT INFORMATION- Additional Information (Details)	9 Months Ended
SEGMENT INFORMATION- Additional Information (Details)	Sep. 30, 2020 segment
Segment Reporting [Abstract]
Number of business segments	2

PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

Property and equipment includes the following as of the dates indicated:


	September 30,		December 31,
	2020		2019

	(in millions)
Oil and natural gas properties:
Subject to depletion	$	19,426	$	16,575
Not subject to depletion	7,879		9,207
Gross oil and natural gas properties	27,305		25,782
Accumulated depletion	(3,988)		(2,995)
Accumulated impairment	(6,933)		(1,934)
Oil and natural gas properties, net	16,384		20,853
Midstream assets	1,026		931
Other property, equipment and land	135		125
Accumulated depreciation	(110)		(74)
Total property and equipment, net	$	17,435	$	21,835

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 proved oil and natural gas properties. As a result of the sharp decline in commodity prices which began during the first quarter of 2020 and continued for most of the second and third quarters of 2020, the Company recorded non-cash ceiling test impairments for the three months and nine months ended September 30, 2020 of $1.5 billion and $5.0 billion, respectively, which were included in accumulated depletion. The impairment charge affected the Company’s results of operations but did not reduce its cash flow. In addition to commodity prices, the Company’s production rates, levels of proved reserves, future development costs, transfers of unevaluated properties and other factors will determine its actual ceiling test calculation and impairment analysis in future periods. If the trailing 12-month commodity prices continue to fall as compared to the commodity prices used in prior quarters, the Company may have material write downs in subsequent quarters. No impairment on proved oil and natural gas properties was recorded for the three months or nine months ended September 30, 2019. Given the rate of change impacting the oil and gas industry described above, it is possible that circumstances requiring additional impairment testing will occur in future interim periods, which could result in potentially material impairment charges being recorded.

Capitalized internal costs were approximately $14 million and $8 million for the three months ended September 30, 2020 and 2019, respectively, and $42 million and $32 million for the nine months ended September 30, 2020 and 2019, 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 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 of the acreage, associated with acquisition costs not currently being amortized, expire based on current drilling plans.

SEGMENT INFORMATION - Summary of Business Segments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total revenues	$ 720	$ 975	$ 2,044	$ 2,860
Depreciation, depletion and amortization	286	365	1,036	1,046
Impairment of oil and natural gas properties	1,451	0	4,999	0
Income (loss) from operations	(1,256)	349	(4,730)	1,079
Interest expense, net	(53)	(38)	(147)	(133)
Other income (expense)	(100)	179	59	12
Provision for (benefit from) income taxes	(304)	102	(902)	171
Net income (loss) attributable to non-controlling interest	8	20	(138)	60
Net income (loss) attributable to Diamondback Energy, Inc.	(1,113)	368	(3,778)	727
Total assets	18,760		18,760		$ 23,531
Upstream
Segment Reporting Information [Line Items]
Total revenues	706	957	2,002	2,802
Midstream Services
Segment Reporting Information [Line Items]
Total revenues	97	115	315	322
Operating Segments \| Upstream
Segment Reporting Information [Line Items]
Total revenues	706	957	2,002	2,802
Depreciation, depletion and amortization	275	353	1,001	1,014
Impairment of oil and natural gas properties	1,451		4,999
Income (loss) from operations	(1,282)	321	(4,787)	1,004
Interest expense, net	(47)	(37)	(137)	(132)
Other income (expense)	(103)	181	73	16
Provision for (benefit from) income taxes	(307)	99	(910)	167
Net income (loss) attributable to non-controlling interest	(1)	20	(163)	60
Net income (loss) attributable to Diamondback Energy, Inc.	(1,124)	346	(3,778)	661
Total assets	17,245		17,245		22,125
Operating Segments \| Midstream Services
Segment Reporting Information [Line Items]
Total revenues	14	18	42	58
Depreciation, depletion and amortization	11	12	35	32
Impairment of oil and natural gas properties	0		0
Income (loss) from operations	44	52	134	159
Interest expense, net	(6)	(1)	(10)	(1)
Other income (expense)	4	(1)	(10)	(1)
Provision for (benefit from) income taxes	3	3	8	4
Net income (loss) attributable to non-controlling interest	9	37	25	52
Net income (loss) attributable to Diamondback Energy, Inc.	30	10	81	101
Total assets	1,812		1,812		1,636
Eliminations
Segment Reporting Information [Line Items]
Total revenues	(83)	(97)	(273)	(264)
Depreciation, depletion and amortization	0	0	0	0
Impairment of oil and natural gas properties	0		0
Income (loss) from operations	(18)	(24)	(77)	(84)
Interest expense, net	0	0	0	0
Other income (expense)	(1)	(1)	(4)	(3)
Provision for (benefit from) income taxes	0	0	0	0
Net income (loss) attributable to non-controlling interest	0	(37)	0	(52)
Net income (loss) attributable to Diamondback Energy, Inc.	(19)	$ 12	(81)	$ (35)
Total assets	$ (297)		$ (297)		$ (230)

FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2020

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 8—Asset Retirement Obligations for further discussion of the Company’s asset retirement obligations.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Certain assets and liabilities are reported at fair value on a recurring basis, including the Company’s derivative instruments and Viper’s investment. Viper measures its investment utilizing the fair value option, and as such the investment is classified as Level 1 in the fair value hierarchy. The fair values of the Company’s derivative contracts 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 (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Company’s condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019. The net amounts are classified as current or noncurrent based on their anticipated settlement dates.


	As of September 30, 2020
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	107	$	—	$	107	$	(92)	$	15

Non-current:
Investment	$	5	$	—	$	—	$	5	$	—	$	5
Derivative Instruments	$	—	$	65	$	—	$	65	$	(65)	$	—

Liabilities:
Current:
Derivative Instruments	$	—	$	178	$	—	$	178	$	(92)	$	86

Non-current:
Derivative Instruments	$	—	$	173	$	—	$	173	$	(65)	$	108


	As of December 31, 2019
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	64	$	—	$	64	$	(18)	$	46

Non-current:
Investment	$	19	$	—	$	—	$	19	$	—	$	19
Derivative Instruments	$	—	$	7	$	—	$	7	$	—	$	7

Liabilities:
Current:
Derivative Instruments	$	—	$	45	$	—	$	45	$	(18)	$	27

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 condensed consolidated balance sheets:


	September 30, 2020				December 31, 2019
	Carrying				Carrying
	Value(1)		Fair Value		Value(1)		Fair Value
	(in millions)
Debt:
Revolving credit facility	$	—	$	—	$	13	$	13
4.625% Notes due 2021	$	191	$	194	$	399	$	411
7.320% Medium-term Notes, Series A, due 2022	$	21	$	22	$	21	$	22
2.875% Senior Notes due 2024	$	993	$	1,014	$	992	$	1,012
4.750% Senior Notes due 2025	$	496	$	541	$	—	$	—
5.375% Senior Notes due 2025	$	800	$	830	$	799	$	840
3.250% Senior Notes due 2026	$	793	$	803	$	792	$	812
7.350% Medium-term Notes, Series A, due 2027	$	—	$	—	$	11	$	12
7.125% Medium-term Notes, Series B, due 2028	$	107	$	113	$	108	$	116
3.500% Senior Notes due 2029	$	1,187	$	1,158	$	1,186	$	1,226
Viper revolving credit facility	$	127	$	127	$	97	$	97
Viper's 5.375% Senior Notes due 2027	$	471	$	477	$	490	$	521
Rattler revolving credit facility	$	85	$	85	$	424	$	424
Rattler’s 5.625% Senior Notes due 2025	$	490	505		$	—	$	—
DrillCo Agreement	$	86	$	86	$	39	$	39

(1)The carrying value includes associated deferred loan costs and any remaining discount or premium, if any.

The fair values of the revolving credit facility, the Viper credit agreement and the Rattler credit agreement approximate their carrying values 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 values of the outstanding notes were determined using the September 30, 2020 quoted market price, a Level 1 classification in the fair value hierarchy.

Fair Value of Financial Assets

The carrying amount of cash and cash equivalents, receivables, prepaid expenses and other current assets, payables and other accrued liabilities approximate their fair value because of the short-term nature of the instruments.

- 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

ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2020

Asset Retirement Obligation [Abstract]

ASSET RETIREMENT OBLIGATIONS

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


	Nine Months Ended September 30,
	2020		2019

	(in millions)
Asset retirement obligations, beginning of period	$	94	$	136
Additional liabilities incurred	12		6
Liabilities acquired	3		3
Liabilities settled	(1)		(61)
Accretion expense	5		6

Asset retirement obligations, end of period	113		90
Less current portion(1)	1		—
Asset retirement obligations - long-term	$	112	$	90

(1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets.

DERIVATIVES - Open Derivative Positions (Details)	9 Months Ended
DERIVATIVES - Open Derivative Positions (Details)	Sep. 30, 2020 MMBTU $ / bbl $ / MMBTU bbl
OIL \| 2020 \| Swaps \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	11,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	43.47
OIL \| 2020 \| Swaps \| WTI Magellan
Derivative [Line Items]
Volume (Bbls) \| bbl	4,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	61.95
OIL \| 2020 \| Swaps \| Brent
Derivative [Line Items]
Volume (Bbls) \| bbl	24,200
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	47.62
OIL \| 2020 \| Basis Swaps \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	45,087
Weighted average differential (per Bbl)	(1.33)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
OIL \| 2020 \| Basis Swaps \| WTL Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	8,000
Weighted average differential (per Bbl)	(1.31)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
OIL \| 2020 \| Rolling Hedge \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	120,000
Weighted average differential (per Bbl)	(1.05)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
OIL \| 2020 \| Costless Collar \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	45,779
Weighted Average Floor Price (USD per Bbl)	35.92
Weighted Average Ceiling Price (USD per Bbl)	42.29
OIL \| 2020 \| Costless Collar \| WTI Magellan
Derivative [Line Items]
Volume (Bbls) \| bbl	4,000
Weighted Average Floor Price (USD per Bbl)	39.00
Weighted Average Ceiling Price (USD per Bbl)	49.00
OIL \| 2020 \| Costless Collar \| Brent
Derivative [Line Items]
Volume (Bbls) \| bbl	64,710
Weighted Average Floor Price (USD per Bbl)	37.59
Weighted Average Ceiling Price (USD per Bbl)	45.63
OIL \| 2020 \| Calls \| WTI Magellan
Derivative [Line Items]
Volume (Bbls) \| bbl	8,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
Weighted Average Put Price (USD per Bbl)	0
Strike Price (USD per Bbl)	45.00
Option price (per Mcf)	0
Premium (per Bbl)	1.89
OIL \| 2020 \| Calls \| WTI Magellan \| Long
Derivative [Line Items]
Weighted Average Put Price (USD per Bbl)	0
OIL \| 2020 \| Option \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	4,700
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
Weighted Average Put Price (USD per Bbl)	0
Strike Price (USD per Bbl)	0
Option price (per Mcf)	0
OIL \| 2020 \| Option \| WTI Cushing \| Long
Derivative [Line Items]
Weighted Average Put Price (USD per Bbl)	46.51
OIL \| 2020 \| Put Spread \| WTI Magellan
Derivative [Line Items]
Volume (Bbls) \| bbl	3,800
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
Weighted Average Put Price (USD per Bbl)	25.00
Strike Price (USD per Bbl)	0
Option price (per Mcf)	0
OIL \| 2020 \| Put Spread \| WTI Magellan \| Long
Derivative [Line Items]
Weighted Average Put Price (USD per Bbl)	50.00
OIL \| 2021 \| Swaps \| WTI Magellan
Derivative [Line Items]
Volume (Bbls) \| bbl	5,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	37.78
OIL \| 2021 \| Swaps \| Brent
Derivative [Line Items]
Volume (Bbls) \| bbl	7,500
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	41.58
OIL \| 2021 \| Costless Collar \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	10,000
Weighted Average Floor Price (USD per Bbl)	30.00
Weighted Average Ceiling Price (USD per Bbl)	43.05
OIL \| 2021 \| Costless Collar \| Brent
Derivative [Line Items]
Volume (Bbls) \| bbl	65,000
Weighted Average Floor Price (USD per Bbl)	39.25
Weighted Average Ceiling Price (USD per Bbl)	48.36
OIL \| 2021 \| Swaption \| Brent
Derivative [Line Items]
Volume (Bbls) \| bbl	5,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	51.00
OIL \| 2022 \| Option \| WTI Cushing
Derivative [Line Items]
Volume (Bbls) \| bbl	5,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	0
Weighted Average Put Price (USD per Bbl)	35.00
Strike Price (USD per Bbl)	0
Option price (per Mcf)	0
OIL \| 2022 \| Option \| WTI Cushing \| Long
Derivative [Line Items]
Weighted Average Put Price (USD per Bbl)	0
NATURAL GAS \| 2020 \| Swaps \| Henry Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	60,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	2.48
NATURAL GAS \| 2020 \| Swaps \| Waha Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	60,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	1.51
NATURAL GAS \| 2020 \| Basis Swaps \| Waha Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	145,000
Weighted average differential (per Bbl)	(1.57)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	0
NATURAL GAS \| 2020 \| Swap Double-Up \| Waha Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	30,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	1.70
Weighted Average Put Price (USD per Bbl)	0
Strike Price (USD per Bbl)	0
Option price (per Mcf)	1.70
NATURAL GAS \| 2020 \| Swap Double-Up \| Waha Hub \| Long
Derivative [Line Items]
Weighted Average Put Price (USD per Bbl)	0
NATURAL GAS \| 2021 \| Swaps \| Henry Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	190,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	2.62
NATURAL GAS \| 2021 \| Basis Swaps \| Henry Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	230,000
Weighted average differential (per Bbl)	(0.69)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	0
NATURAL GAS \| 2022 \| Basis Swaps \| Waha Hub
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	80,000
Weighted average differential (per Bbl)	(0.45)
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	0
NATURAL GAS LIQUIDS \| 2020 \| Swaps \| Mont Belvieu Ethane
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	7,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	8.43
NATURAL GAS LIQUIDS \| 2020 \| Swaps \| Mont Belvieu Propane
Derivative [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	5,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	21.76
DIESEL \| 2021 \| Swaps \| Gulf Cost Ultra Low Sulfur
Derivative [Line Items]
Volume (Bbls) \| bbl	1,000,000
Weighted average differential (per Bbl)	0
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)	1.60

EQUITY METHOD INVESTMENTS - Narrative (Details) - Rattler LLC Mcf in Thousands	9 Months Ended
	Sep. 30, 2020 USD ($) Mcf	Sep. 30, 2019 USD ($)	Dec. 20, 2019 Mcf mi	Nov. 07, 2019	Oct. 01, 2019	Jul. 30, 2019	Mar. 29, 2019 USD ($)	Feb. 15, 2019	Feb. 01, 2019
Schedule of Equity Method Investments [Line Items]
Impairments in equity method investments \| $	$ 0	$ 0
Joint Venture of Wink to Webster Project
Schedule of Equity Method Investments [Line Items]
Ownership percentage						4.00%
EPIC Crude Holdings, LP
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage									10.00%
Gray Oak Pipeline, LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage								10.00%
Gray Oak Pipeline, LLC \| 2.52% Short-Term Promissory Note
Schedule of Equity Method Investments [Line Items]
Equity method investment promissory note \| $							$ 123,000,000
Debt instrument stated interest rate							2.52%
OMOG JV LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage					60.00%
Goodwill impairment charge \| $	$ 16,000,000
OMOG JV LLC \| Reliance Gathering LLC
Schedule of Equity Method Investments [Line Items]
Percentage of voting interests acquired				100.00%
Amarillo Rattler, LLC
Schedule of Equity Method Investments [Line Items]
Equity method interest investment ownership percentage			50.00%
Gas gathering and cryogenic processing system capacity \| Mcf	30
Amarillo Rattler, LLC \| Dawson, Martin and Andrews Counties, Texas
Schedule of Equity Method Investments [Line Items]
Gas gathering and cryogenic processing system capacity \| Mcf			40
Distance of gathering and regional transportation pipelines \| mi			84
Amarillo Rattler, LLC \| Martin County, Texas
Schedule of Equity Method Investments [Line Items]
Gas gathering and cryogenic processing system capacity \| Mcf			60

SUBSEQUENT EVENTS (Tables)

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Schedule of derivative contracts by Company subsequent aggregating weighted average contract

As of September 30, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu/Gallons Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Oct. - Dec.	2020	Swaps	11,000	WTI Cushing	$—	$43.47	$—	$—
Oct. - Dec.	2020	Swaps	4,000	WTI Magellan	$—	$61.95	$—	$—
Oct. - Dec.	2020	Swaps	24,200	Brent	$—	$47.62	$—	$—
Oct. - Dec.	2020	Basis Swaps	45,087	WTI Cushing(1)	$(1.33)	$—	$—	$—
Oct. - Dec.	2020	Basis Swaps	8,000	WTL Cushing(1)	$(1.31)	$—	$—	$—
Oct. - Dec.	2020	Rolling Hedge(2)	120,000	WTI Cushing	$(1.05)	$—	$—	$—
Oct. - Dec.	2020	Costless Collar	45,779	WTI Cushing	$—	$—	$35.92	$42.29
Oct. - Dec.	2020	Costless Collar	4,000	WTI Magellan	$—	$—	$39.00	$49.00
Oct. - Dec.	2020	Costless Collar	64,710	Brent	$—	$—	$37.59	$45.63
Jan. - Dec.	2021	Swaps	5,000	WTI Magellan	$—	$37.78	$—	$—
Jan. - Dec.	2021	Swaps	7,500	Brent	$—	$41.58	$—	$—
Jan. - Dec.	2021	Costless Collar	65,000	Brent	$—	$—	$39.25	$48.36
July - Dec.	2021	Swaption	5,000	Brent	$—	$51.00	$—	$—
Jan. - Dec.	2021	Costless Collar	10,000	WTI Cushing	$—	$—	$30.00	$43.05
NATURAL GAS
Oct. - Dec.	2020	Swaps	60,000	Henry Hub	$—	$2.48	$—	$—
Oct. - Dec.	2020	Swaps	60,000	Waha Hub	$—	$1.51	$—	$—
Oct. - Dec.	2020	Basis Swaps	145,000	Waha Hub(1)	$(1.57)	$—	$—	$—
Jan. - Dec.	2021	Swaps	190,000	Henry Hub	$—	$2.62	$—	$—
Jan. - Dec.	2021	Basis Swaps	230,000	Waha Hub(1)	$(0.69)	$—	$—	$—
Jan. - Dec.	2022	Basis Swaps	80,000	Waha Hub(1)	$(0.45)	$—	$—	$—
NATURAL GAS LIQUIDS
Oct. - Dec.	2020	Swaps	7,000	Mont Belvieu Ethane	$—	$8.43	$—	$—
Oct. - Dec.	2020	Swaps	5,000	Mont Belvieu Propane	$—	$21.76	$—	$—
DIESEL
Oct. - Dec.	2021	Swaps	1,000,000	Gulf Cost Ultra Low Sulfur	$—	$1.60	$—	$—

(1) The Company has fixed price basis swaps for the spread between the Cushing crude oil price and the Midland WTI crude oil price or the Midland Argus WTL crude oil price as well as the spread between the Henry Hub natural gas price and the Waha Hub natural gas price. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts.

(2) The Company has rolling hedge basis swaps for the differential between the NYMEX prices between the calendar month average and the physical crude oil delivery month. The weighted average differential represents the amount of reduction to Cushing, Oklahoma, oil price for the notional volumes covered by the rolling hedge basis swap contracts.


Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Strike Price	Swap Price	Put Price	Long Put Price	Option Price
OIL
Oct. - Dec.	2020	Calls(1)	8,000	WTI Magellan	$45.00	$—	$—	$—	$—
Oct. - Dec.	2020	Option	4,700	WTI Cushing	$—	$—	$—	$46.51	$—
Oct. - Dec.	2020	Put Spread	3,800	WTI Magellan	$—	$—	$25.00	$50.00	$—
Oct. - Dec.	2022	Option	5,000	WTI Cushing	$—	$—	$35.00	$—	$—
NATURAL GAS
Oct. - Dec.	2020	Swap Double-Up	30,000	Waha Hub	$—	$1.70	$—	$—	$1.70

(1) Includes a deferred premium at a weighted-average price of $(1.89)/Bbl and a strike price of $45.00/Bbl

The following table summarizes the Company’s interest rate swaps and treasury locks as of September 30, 2020:


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.195	%


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Jan. - Mar.	2021	Costless Collar	3,000	WTI Cushing	$—	$—	$37.00	$44.19
Mar. - June	2021	Costless Collar	1,000	WTI Cushing	$—	$—	$37.00	$47.00
Jan. - June	2021	Costless Collar	6,000	Brent	$—	$—	$37.50	$45.50
NATURAL GAS
Jan. - Dec.	2021	Swaps	10,000	Henry Hub	$—	$3.05	$—	$—
Jan. - Dec.	2022	Basis Swap	20,000	Waha Hub	$(0.31)	$—	$—	$—

Interest Rate Swaps

Subsequent to September 30, 2020, the Company entered into new interest rate swaps and terminated existing interest rate swaps.

The following table presents the interest rate swaps entered into by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.692	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.8361	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.852	%

The following table presents the interest rate swap contracts terminated by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%

- 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

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+ Details

CAPITAL STOCK AND EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2020

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,
	2020		2019		2020		2019
	($ in millions, except per share amounts, shares in thousands)
Net income (loss) attributable to common stock	$	(1,113)	$	368	$	(3,778)	$	727
Weighted average common shares outstanding:
Basic weighted average common units outstanding	157,833		162,543		157,984		164,070
Effect of dilutive securities:
Potential common shares issuable(1)	—		237		—		396
Diluted weighted average common shares outstanding	157,833		162,780		157,984		164,466
Basic net income (loss) attributable to common stock	$	(7.05)	$	2.27	$	(23.91)	$	4.44
Diluted net income (loss) attributable to common stock	$	(7.05)	$	2.26	$	(23.91)	$	4.42

(1) For the three and nine months ended September 30, 2020, no potential common units were included in the computation of diluted earnings per share because their inclusion would have been anti-dilutive. For the three months and nine months ended September 30, 2019, there were 50,814 and 40,291 potential common units excluded from the computation of diluted earnings per share because their inclusion would have been anti-dilutive under the treasury stock method.

Schedule of change in ownership interest

The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Net income (loss) attributable to the Company	$	(1,113)	$	368	$	(3,778)	$	727
Change in ownership of consolidated subsidiaries	—		—		329		77
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest	$	(1,113)	$	368	$	(3,449)	$	804

LEASES - Summary of Undiscounted Cash Flows Owed by the Company to Lessors Pursuant to Contractual Agreements (Details) $ in Millions	Sep. 30, 2020 USD ($)
Leases [Abstract]
2020 (October - December)	$ 4
2021	7
2022	3
2023	0
2024	0
Thereafter	0
Total lease payments	14
Less: interest	1
Present value of lease liabilities	$ 13

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details)	Sep. 30, 2020	May 28, 2019
Viper Energy Partners LP
Noncontrolling Interest [Line Items]
Ownership percentage	58.00%
Rattler MIdstream LP
Noncontrolling Interest [Line Items]
Ownership percentage	71.00%	29.00%

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
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		157,972,650
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001539838
Current Fiscal Year End Date	--12-31

Asset Retirement Obligations (Tables)

9 Months Ended

Sep. 30, 2020

Asset Retirement Obligation [Abstract]

Asset retirement obligations

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


	Nine Months Ended September 30,
	2020		2019

	(in millions)
Asset retirement obligations, beginning of period	$	94	$	136
Additional liabilities incurred	12		6
Liabilities acquired	3		3
Liabilities settled	(1)		(61)
Accretion expense	5		6

Asset retirement obligations, end of period	113		90
Less current portion(1)	1		—
Asset retirement obligations - long-term	$	112	$	90

(1) The current portion of the asset retirement obligation is included in other accrued liabilities in the Company’s condensed consolidated balance sheets.

DERIVATIVES

9 Months Ended

Sep. 30, 2020

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 condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.”

Commodity Contracts

The Company has entered into multiple crude oil, natural gas, natural gas liquids and diesel fuel derivatives, indexed to the respective indices as noted in the table below, to reduce price volatility associated with certain of its oil and natural gas sales.

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 only entered into derivative instruments with counterparties that are also lenders under its credit facility and have been deemed an acceptable credit risk.

As of September 30, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu/Gallons Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Oct. - Dec.	2020	Swaps	11,000	WTI Cushing	$—	$43.47	$—	$—
Oct. - Dec.	2020	Swaps	4,000	WTI Magellan	$—	$61.95	$—	$—
Oct. - Dec.	2020	Swaps	24,200	Brent	$—	$47.62	$—	$—
Oct. - Dec.	2020	Basis Swaps	45,087	WTI Cushing(1)	$(1.33)	$—	$—	$—
Oct. - Dec.	2020	Basis Swaps	8,000	WTL Cushing(1)	$(1.31)	$—	$—	$—
Oct. - Dec.	2020	Rolling Hedge(2)	120,000	WTI Cushing	$(1.05)	$—	$—	$—
Oct. - Dec.	2020	Costless Collar	45,779	WTI Cushing	$—	$—	$35.92	$42.29
Oct. - Dec.	2020	Costless Collar	4,000	WTI Magellan	$—	$—	$39.00	$49.00
Oct. - Dec.	2020	Costless Collar	64,710	Brent	$—	$—	$37.59	$45.63
Jan. - Dec.	2021	Swaps	5,000	WTI Magellan	$—	$37.78	$—	$—
Jan. - Dec.	2021	Swaps	7,500	Brent	$—	$41.58	$—	$—
Jan. - Dec.	2021	Costless Collar	65,000	Brent	$—	$—	$39.25	$48.36
July - Dec.	2021	Swaption	5,000	Brent	$—	$51.00	$—	$—
Jan. - Dec.	2021	Costless Collar	10,000	WTI Cushing	$—	$—	$30.00	$43.05
NATURAL GAS
Oct. - Dec.	2020	Swaps	60,000	Henry Hub	$—	$2.48	$—	$—
Oct. - Dec.	2020	Swaps	60,000	Waha Hub	$—	$1.51	$—	$—
Oct. - Dec.	2020	Basis Swaps	145,000	Waha Hub(1)	$(1.57)	$—	$—	$—
Jan. - Dec.	2021	Swaps	190,000	Henry Hub	$—	$2.62	$—	$—
Jan. - Dec.	2021	Basis Swaps	230,000	Waha Hub(1)	$(0.69)	$—	$—	$—
Jan. - Dec.	2022	Basis Swaps	80,000	Waha Hub(1)	$(0.45)	$—	$—	$—
NATURAL GAS LIQUIDS
Oct. - Dec.	2020	Swaps	7,000	Mont Belvieu Ethane	$—	$8.43	$—	$—
Oct. - Dec.	2020	Swaps	5,000	Mont Belvieu Propane	$—	$21.76	$—	$—
DIESEL
Oct. - Dec.	2021	Swaps	1,000,000	Gulf Cost Ultra Low Sulfur	$—	$1.60	$—	$—


Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Strike Price	Swap Price	Put Price	Long Put Price	Option Price
OIL
Oct. - Dec.	2020	Calls(1)	8,000	WTI Magellan	$45.00	$—	$—	$—	$—
Oct. - Dec.	2020	Option	4,700	WTI Cushing	$—	$—	$—	$46.51	$—
Oct. - Dec.	2020	Put Spread	3,800	WTI Magellan	$—	$—	$25.00	$50.00	$—
Oct. - Dec.	2022	Option	5,000	WTI Cushing	$—	$—	$35.00	$—	$—
NATURAL GAS
Oct. - Dec.	2020	Swap Double-Up	30,000	Waha Hub	$—	$1.70	$—	$—	$1.70

(1) Includes a deferred premium at a weighted-average price of $(1.89)/Bbl and a strike price of $45.00/Bbl

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, 2020:


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.195	%

See Note 18—Subsequent Events for discussion of derivative transactions which occurred subsequent to September 30, 2020.

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, including any deferred premiums that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 15—Fair Value Measurements for further details.

Gains and Losses on Derivative Instruments

The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Gain (loss) on derivative instruments, net
Commodity contracts	$	(104)	$	157	$	147	$	(17)
Interest rate swaps	5		20		(65)		20
Total	$	(99)	$	177	$	82	$	3

Net cash received (paid) on settlements
Commodity contracts(1)	(9)		11		288		33

Total	$	(9)	$	11	$	288	$	33

(1)The three and nine months ended September 30, 2020 include cash received on contracts terminated prior to their contractual maturity of $6 million and $17 million, respectively.

DERIVATIVES - Interest rate swaps and treasury locks (Details) $ in Millions	Sep. 30, 2020 USD ($)
Interest Rate Swap One
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.551%
Interest Rate Swap Two
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.5575%
Interest Rate Swap Three
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.297%
Interest Rate Swap Four
Offsetting Assets [Line Items]
Notional Amount (in millions)	$ 250
Interest Rate	1.195%

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Oil and natural gas properties, amortization excluded	$ 7,879	$ 9,207
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)	157,849,848	159,002,338
Shares Outstanding (in Shares)	157,849,848	159,002,338

DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION	Sep. 30, 2020
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, 2020, 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’s subsidiary Viper Energy Partners LLC, a Delaware limited liability company, Rattler Midstream LP, a Delaware limited partnership, Rattler Midstream Operating LLC, a Delaware limited liability company, Rattler LLC’s wholly-owned subsidiaries Tall City Towers LLC, a Delaware limited liability company (“Tall City”), Rattler Ajax Processing LLC, a Delaware limited liability company, Rattler OMOG LLC, a Delaware limited liability company, and Energen’s wholly-owned subsidiaries Energen Resources Corporation, an Alabama corporation, and EGN Services, Inc., an Alabama corporation. Basis of Presentation The condensed 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 and Rattler are consolidated in the financial statements of the Company. As of September 30, 2020, the Company owned approximately 58% of Viper’s total units outstanding. The Company’s wholly-owned subsidiary, Viper Energy Partners GP LLC, is the general partner of Viper. As of September 30, 2020, 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. The results of operations attributable to the non-controlling interest in Viper and Rattler are presented within equity and net income and are shown separately from the Company’s equity and net income attributable to the Company. These condensed consolidated 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 SEC 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, 2019, which contains a summary of the Company’s significant accounting policies and other disclosures.

LEASES (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of operating lease costs

The following table summarizes operating lease costs for the three months and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Operating lease costs	$	4	$	7	$	13	$	19

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

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, 2020:


	As of September 30, 2020
	(in millions)
2020 (October - December)	$	4
2021	7
2022	3
2023	—
2024	—
Thereafter	—
Total lease payments	14
Less: interest	1
Present value of lease liabilities	$	13

SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company reports its operations in two operating segments: (i) the upstream 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 includes midstream services and real estate. All of Rattler’s equity method investments are included in the midstream segment.

The following tables summarize the results of the Company’s operating segments during the periods presented:


	Upstream		Midstream Services		Eliminations		Total
Three Months Ended September 30, 2020:	(in millions)
Third-party revenues	$	706	$	14	$	—	$	720
Intersegment revenues	—		83		(83)		—
Total revenues	706		97		(83)		720
Depreciation, depletion and amortization	275		11		—		286
Impairment of oil and natural gas properties	1,451		—		—		1,451
Income (loss) from operations	(1,282)		44		(18)		(1,256)
Interest expense, net	(47)		(6)		—		(53)
Other income (expense)	(103)		4		(1)		(100)
Provision for (benefit from) income taxes	(307)		3		—		(304)
Net income (loss) attributable to non-controlling interest	(1)		9		—		8
Net income (loss) attributable to Diamondback Energy, Inc.	(1,124)		30		(19)		(1,113)
As of September 30, 2020:
Total assets	$	17,245	$	1,812	$	(297)	$	18,760


	Upstream		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
Depreciation, depletion and amortization	353		12		—		365
Income (loss) from operations	321		52		(24)		349
Interest expense, net	(37)		(1)		—		(38)
Other income (expense)	181		(1)		(1)		179
Provision for (benefit from) income taxes	99		3		—		102
Net income (loss) attributable to non-controlling interest	20		37		(37)		20
Net income (loss) attributable to Diamondback Energy, Inc.	346		10		12		368
As of December 31, 2019:
Total assets	$	22,125	$	1,636	$	(230)	$	23,531


	Upstream		Midstream Services		Eliminations		Total
Nine Months Ended September 30, 2020:	(in millions)
Third-party revenues	$	2,002	$	42	$	—	$	2,044
Intersegment revenues	—		273		(273)		—
Total revenues	2,002		315		(273)		2,044
Depreciation, depletion and amortization	1,001		35		—		1,036
Impairment of oil and natural gas properties	4,999		—		—		4,999
Income (loss) from operations	(4,787)		134		(77)		(4,730)
Interest expense, net	(137)		(10)		—		(147)
Other income (expense)	73		(10)		(4)		59
Provision for (benefit from) income taxes	(910)		8		—		(902)
Net income (loss) attributable to non-controlling interest	(163)		25		—		(138)
Net income (loss) attributable to Diamondback Energy, Inc.	(3,778)		81		(81)		(3,778)
As of September 30, 2020:
Total assets	$	17,245	$	1,812	$	(297)	$	18,760


	Upstream		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
Depreciation, depletion and amortization	1,014		32		—		1,046
Income (loss) from operations	1,004		159		(84)		1,079
Interest expense, net	(132)		(1)		—		(133)
Other income (expense)	16		(1)		(3)		12
Provision for (benefit from) income taxes	167		4		—		171
Net income (loss) attributable to non-controlling interest	60		52		(52)		60
Net income (loss) attributable to Diamondback Energy, Inc.	$	661	$	101	$	(35)	727
As of December 31, 2019:
Total assets	$	22,125	$	1,636	$	(230)	$	23,531

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of long-term debt

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


	September 30,		December 31,
	2020		2019

	(in millions)
4.625% Notes due 2021	$	191	$	399
7.320% Medium-term Notes, Series A, due 2022	20		21
2.875% Senior Notes due 2024	1,000		1,000
4.750% Senior Notes due 2025	500		—
5.375% Senior Notes due 2025	800		800
3.250% Senior Notes due 2026	800		800
7.350% Medium-term Notes, Series A, due 2027	—		11
7.125% Medium-term Notes, Series B, due 2028	100		108
3.500% Senior Notes due 2029	1,200		1,200
DrillCo Agreement	86		39
Unamortized debt issuance costs	(30)		(19)
Unamortized discount costs	(28)		(31)
Unamortized premium costs	16		9
Revolving credit facility(1)	—		13
Viper revolving credit facility(1)	127		97
Viper 5.375% Senior Notes due 2027	480		500
Rattler revolving credit facility(2)	85		424
Rattler 5.625% Senior Notes due 2025	500		—
Total debt, net	5,847		5,371
Less: current maturities of long-term debt	(191)		—
Total long-term debt	$	5,656	$	5,371

(1) Each of these revolving credit facilities matures on November 1, 2022.

(2) The Rattler revolving credit facility matures on May 28, 2024.

- 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.

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+ Details

CAPITAL STOCK AND EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

CAPITAL STOCK AND EARNINGS PER SHARE

Diamondback did not complete any equity offerings during the nine months ended September 30, 2020 and September 30, 2019.

Rattler’s Initial Public Offering

Please see Note 5—Rattler Midstream LP for information regarding the Rattler Offering.

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 ended September 30, 2020, the Company repurchased no common stock under this repurchase program. During the nine months ended September 30, 2020, the Company repurchased approximately $98 million of common stock under this repurchase program. As of September 30, 2020, $1.3 billion remained available for use to repurchase shares under the Company's common stock repurchase program, although the Company has suspended this program to preserve liquidity.

Earnings (Loss) 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 and Rattler 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,
	2020		2019		2020		2019
	($ in millions, except per share amounts, shares in thousands)
Net income (loss) attributable to common stock	$	(1,113)	$	368	$	(3,778)	$	727
Weighted average common shares outstanding:
Basic weighted average common units outstanding	157,833		162,543		157,984		164,070
Effect of dilutive securities:
Potential common shares issuable(1)	—		237		—		396
Diluted weighted average common shares outstanding	157,833		162,780		157,984		164,466
Basic net income (loss) attributable to common stock	$	(7.05)	$	2.27	$	(23.91)	$	4.44
Diluted net income (loss) attributable to common stock	$	(7.05)	$	2.26	$	(23.91)	$	4.42

Change in Ownership of Consolidated Subsidiaries

The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Net income (loss) attributable to the Company	$	(1,113)	$	368	$	(3,778)	$	727
Change in ownership of consolidated subsidiaries	—		—		329		77
Change from net income (loss) attributable to the Company's stockholders and transfers to non-controlling interest	$	(1,113)	$	368	$	(3,449)	$	804

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe condensed 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

Accounts Receivable

Non-controlling Interest

New Accounting Pronouncements

Recent Accounting Pronouncements


Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Recently Adopted Pronouncements
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.	Q1 2020	The Company adopted this update effective January 1, 2020. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity since it does not have a history of credit losses.




Pronouncements Not Yet Adopted
ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes”	This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance.	Q1 2021	This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company does not believe that the adoption of this update will have an impact on its financial position, results of operations or liquidity.

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.

Fair Value Measurement

Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets 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.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

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+ Details

DEBT

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

DEBT

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


	September 30,		December 31,
	2020		2019

	(in millions)
4.625% Notes due 2021	$	191	$	399
7.320% Medium-term Notes, Series A, due 2022	20		21
2.875% Senior Notes due 2024	1,000		1,000
4.750% Senior Notes due 2025	500		—
5.375% Senior Notes due 2025	800		800
3.250% Senior Notes due 2026	800		800
7.350% Medium-term Notes, Series A, due 2027	—		11
7.125% Medium-term Notes, Series B, due 2028	100		108
3.500% Senior Notes due 2029	1,200		1,200
DrillCo Agreement	86		39
Unamortized debt issuance costs	(30)		(19)
Unamortized discount costs	(28)		(31)
Unamortized premium costs	16		9
Revolving credit facility(1)	—		13
Viper revolving credit facility(1)	127		97
Viper 5.375% Senior Notes due 2027	480		500
Rattler revolving credit facility(2)	85		424
Rattler 5.625% Senior Notes due 2025	500		—
Total debt, net	5,847		5,371
Less: current maturities of long-term debt	(191)		—
Total long-term debt	$	5,656	$	5,371

(1) Each of these revolving credit facilities matures on November 1, 2022.

(2) The Rattler revolving credit facility matures on May 28, 2024.

References in this section to the Company shall mean Diamondback Energy, Inc. and Diamondback O&G LLC, collectively, unless otherwise specified.

May 2020 Senior Notes

On May 26, 2020, the Company completed a notes offering of $500 million in aggregate principal amount of its 4.750% Senior Notes due 2025 (the “May 2020 Notes”). Interest on the May 2020 Notes accrues from May 26, 2020, and is payable in cash semi-annually on May 31 and November 30 of each year, beginning November 30, 2020. The May 2020 Notes mature on May 31, 2025. The Company received net proceeds of approximately $496 million from the offering of the May 2020 Notes. The May 2020 Notes are the Company’s senior unsecured obligations, and are guaranteed by Diamondback O&G LLC (the “Guarantor”), but are not guaranteed by any of the Company’s other subsidiaries. The May 2020 Notes are senior in right or payment to any of the Company’s and the Guarantor’s future subordinated indebtedness and rank equal in right of payment with all of the Company’s and the Guarantor’s existing and future senior indebtedness. The May 2020 Notes are effectively subordinated to the Company’s and the Guarantor’s existing and future secured indebtedness, if any, to the extent of the value of the collateral securing such indebtedness, and structurally subordinated to all of the existing and future indebtedness and other liabilities of the Company’s subsidiaries other than the Guarantor.

Second Amended and Restated Credit Facility

Diamondback O&G LLC, as borrower, and Diamondback Energy, Inc., as parent guarantor, 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, which changes became effective on November 20, 2019. As of September 30, 2020, the maximum credit amount available under the credit agreement was $2 billion. As of September 30, 2020, the Company had no outstanding borrowings under its revolving credit facility and $2.0 billion available for future borrowings under the revolving credit facility. As of September 30, 2020, there was an aggregate of $3 million in outstanding letters of credit, which reduce the amount available under the credit agreement on a dollar-for-dollar basis. The weighted average interest rate on the credit facility was 1.83% and 2.27% for the three months and nine months ended September 30, 2020, respectively.

As of September 30, 2020, the Company was in compliance with all financial maintenance covenants under the revolving credit facility.

Energen’s Notes

Energen became a wholly owned subsidiary of the Company at the effective time of the merger and remained the issuer of an aggregate principal amount of $530 million in notes (the “Energen Notes”). As of September 30, 2020, the Energen Notes consist of: (1) $191 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, and (3) $20 million of 7.32% notes due on July 28, 2022.

The Company used the net proceeds from the offering of May 2020 Notes, among other things, to make an equity contribution to Energen to purchase $209 million in previously outstanding aggregate principal amount of Energen’s 4.625% senior notes pursuant to a tender offer.

During the third quarter of 2020, the Company repurchased $10 million in principal amount of the outstanding Energen 7.350% medium-term notes due on July 28, 2027 at a price of 120% of the aggregate principal amount, which resulted in an immaterial loss on extinguishment of debt.

Viper’s Credit Agreement

On July 20, 2018, Viper LLC, as borrower, entered into an amended and restated credit agreement with Viper, as guarantor, Wells Fargo, as administrative agent, and the other lenders. The credit agreement, as amended (the “Viper credit agreement”), 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”). The borrowing base is scheduled to be redetermined semi-annually in May and November. In addition, Viper LLC and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12-month period. The borrowing base was reduced from $775 million to $580 million during the regularly scheduled (semi-annual) spring 2020 redetermination in the second quarter of 2020, and is expected to be reaffirmed at $580 million by the lenders during the regularly scheduled (semi-annual) fall 2020 redetermination in November 2020. As of September 30, 2020, Viper LLC had $127 million of outstanding borrowings and $453 million available for future borrowings under the Viper credit agreement. The weighted average interest rate on the credit facility was 2.14% and 2.66% for the three months and nine months ended September 30, 2020, respectively. The revolving credit facility will mature on November 1, 2022.

As of September 30, 2020, Viper LLC was in compliance with all financial maintenance covenants under the Viper credit agreement.

Viper’s Notes

On October 16, 2019, Viper completed an offering in which it issued its 5.375% Senior Notes due 2027 in aggregate principal amount of $500 million (the “Viper Notes”). Viper received net proceeds of approximately $490 million from the offering of the Viper Notes. Viper loaned the gross proceeds to Viper LLC. Viper LLC used the proceeds from the notes offering to pay down borrowings under its revolving credit facility. During the three months and nine months ended September 30, 2020, Viper repurchased $6 million and $20 million, respectively of the outstanding principal amount of Viper Notes in open market purchases at a cash price ranging from 97.5% to 98.5% of the aggregate principal amount, which resulted in an immaterial gain on extinguishment of debt. The repurchase brought the total outstanding principal amount of Viper Notes down to $480 million as of September 30, 2020.

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, as administrative agent, and a syndicate of banks, 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, which is expandable to $1 billion upon Rattler’s election, subject to obtaining additional lender commitments and satisfaction of customary conditions. As of September 30, 2020, Rattler LLC had $85 million of outstanding borrowings and $515 million available for future borrowings under the Rattler credit agreement. The weighted average interest rate on the credit facility was 1.46% and 2.18% for the three months and nine months ended September 30, 2020, respectively.

As of September 30, 2020, Rattler LLC was in compliance with all financial maintenance covenants under the Rattler credit agreement.

See Note 18—Subsequent Events for a description of the amendment to the Rattler credit agreement which occurred subsequent to September 30, 2020.

Rattler’s Notes

On July 14, 2020, Rattler completed an offering (the “Notes Offering”) of $500 million in aggregate principal amount of its 5.625% Senior Notes due 2025 (the “Rattler Notes”). Interest on the Rattler Notes is payable on January 15 and July 15 of each year, beginning on January 15, 2021. The Rattler Notes mature on July 15, 2025. Rattler received net proceeds of approximately $490 million from the Notes Offering. Rattler loaned the gross proceeds to Rattler LLC, which Rattler LLC used to repay then outstanding borrowings under the Rattler credit agreement. The Rattler Notes are senior unsecured obligations of Rattler, rank equally in right of payment with all of Rattler’s existing and future senior indebtedness it may incur and initially are guaranteed on a senior unsecured basis by Rattler LLC, Tall City, Rattler OMOG LLC and Rattler Ajax Processing LLC. Neither the Company nor Rattler’s General Partner guarantee the Rattler Notes. In the future, each of Rattler’s restricted

subsidiaries that either (1) guarantees any of its or a guarantor’s other indebtedness or (2) is classified as a domestic restricted subsidiary under the indenture governing the Rattler Notes and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Rattler Notes.

Alliance with Obsidian Resources, L.L.C.

Diamondback O&G LLC 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, 2020 and December 31, 2019, CEMOF’s return related to this alliance was $86 million and $39 million, respectively. As of September 30, 2020, 15 joint wells have been drilled and completed.

LEASES

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

LEASES

The Company leases certain drilling rigs, facilities, compression and other equipment.

The following table summarizes operating lease costs for the three months and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Operating lease costs	$	4	$	7	$	13	$	19

For the nine months ended September 30, 2020 and 2019, cash paid for operating lease liabilities, as reported in cash flows provided by operating activities on the Company’s condensed consolidated statements of cash flows, was $13 million and $19 million, respectively. During the nine months ended September 30, 2020 and 2019, the Company recorded an additional $10 million and $15 million of right-of-use assets in exchange for new lease liabilities, respectively. There were no significant right-of-use assets recorded during the three months ended September 30, 2020 and 2019.

As of September 30, 2020, the Condensed Consolidated Balance Sheet includes operating right-of-use assets of $13 million in other assets, current operating lease liabilities of $9 million in other accrued liabilities , and long-term operating lease liabilities of $4 million in other long-term liabilities. As of September 30, 2020, the weighted average remaining lease term was 1.5 years and the weighted average discount rate was 9.2%.


	As of September 30, 2020
	(in millions)
2020 (October - December)	$	4
2021	7
2022	3
2023	—
2024	—
Thereafter	—
Total lease payments	14
Less: interest	1
Present value of lease liabilities	$	13

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Revenue	$ 707	$ 956	$ 2,002	$ 2,798
Lease bonus	0	1	0	4
Other operating income	1	2	5	7
Total revenues	720	975	2,044	2,860
Costs and expenses:
Lease operating expenses	102	128	332	364
Production and ad valorem taxes	55	61	148	180
Depreciation, depletion and amortization	286	365	1,036	1,046
Impairment of oil and natural gas properties	1,451	0	4,999	0
General and administrative expenses	20	19	64	68
Asset retirement obligation accretion	2	1	5	6
Other operating expense	1	1	4	3
Total costs and expenses	1,976	626	6,774	1,781
Income (loss) from operations	(1,256)	349	(4,730)	1,079
Other income (expense):
Interest expense, net	(53)	(38)	(147)	(133)
Other income, net	0	2	1	5
Gain (loss) on derivative instruments, net	(99)	177	82	3
Gain (loss) on revaluation of investment	(2)	0	(9)	4
Loss on early extinguishment of debt	(2)	0	(5)	0
(Income) loss from equity investment	3	0	(10)	0
Total other income (expense), net	(153)	141	(88)	(121)
Income (loss) before income taxes	(1,409)	490	(4,818)	958
Provision for (benefit from) income taxes	(304)	102	(902)	171
Net income (loss)	(1,105)	388	(3,916)	787
Net income (loss) attributable to non-controlling interest	8	20	(138)	60
Net income (loss) attributable to Diamondback Energy, Inc.	$ (1,113)	$ 368	$ (3,778)	$ 727
Earnings (loss) per common share:
Basic (in USD per share)	$ (7.05)	$ 2.27	$ (23.91)	$ 4.44
Diluted (in USD per share)	$ (7.05)	$ 2.26	$ (23.91)	$ 4.42
Weighted average common shares outstanding:
Basic (in shares)	157,833	162,543	157,984	164,070
Diluted (in shares)	157,833	162,780	157,984	164,466
Dividends declared per share (in USD per share)	$ 0.375	$ 0.1875	$ 1.125	$ 0.5625
Oil sales
Revenues:
Revenue	$ 606	$ 882	$ 1,785	$ 2,572
Natural gas sales
Revenues:
Revenue	36	16	61	36
Natural gas liquid sales
Revenues:
Revenue	65	58	156	190
Midstream services
Revenues:
Revenue	12	16	37	51
Costs and expenses:
Cost of goods and services sold	26	26	81	60
Gathering and transportation
Costs and expenses:
Cost of goods and services sold	$ 33	$ 25	$ 105	$ 54

DEBT - Energen Notes (Details) - USD ($)	3 Months Ended
DEBT - Energen Notes (Details) - USD ($)	Sep. 30, 2020	May 26, 2020	Dec. 31, 2019	Nov. 29, 2018
Debt Instrument [Line Items]
Outstanding borrowings	$ 5,847,000,000		$ 5,371,000,000
Energen Notes
Debt Instrument [Line Items]
Outstanding borrowings				$ 530,000,000
4.625% Notes due 2021
Debt Instrument [Line Items]
Outstanding borrowings	$ 191,000,000	$ 209,000,000	399,000,000
Debt instrument stated interest rate	4.625%	4.625%
7.125% Medium-term Notes, Series B, due 2028
Debt Instrument [Line Items]
Outstanding borrowings	$ 100,000,000		108,000,000
Debt instrument stated interest rate	7.125%
7.320% Medium-term Notes, Series A, due 2022
Debt Instrument [Line Items]
Outstanding borrowings	$ 20,000,000		21,000,000
Debt instrument stated interest rate	7.32%
7.350% Medium-term Notes, Series A, due 2027
Debt Instrument [Line Items]
Outstanding borrowings	$ 0		$ 11,000,000
Debt instrument stated interest rate	7.35%
Repurchased principal amount	$ 10,000,000
Redemption price, percentage of principal amount redeemed	120.00%

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax rate	21.60%		20.80%	18.70%	17.90%
Discrete income tax expense (benefit) related to deferred taxes recorded during the period				$ 143	$ (42)
Discrete income tax benefit				25
Discrete income tax benefit, equity based compensation, less than					$ 1
Federal net losses		$ 179
Current federal taxes receivable	$ 100	$ 100		$ 100		$ 100

EQUITY-BASED COMPENSATION - Performance Based Restricted Stock Units (Narratives) (Details) - Performance Shares - Equity Plan $ in Millions	1 Months Ended			9 Months Ended
	Mar. 31, 2020 shares	Mar. 31, 2019 installment shares	Feb. 28, 2018 shares	Sep. 30, 2020 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	225,047		117,423	272,601
Performance shares, performance period				3 years
Share based award not recognized \| $				$ 26
Share based payment not recognized				2 years
Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		199,723
Share based compensation arrangement by share-based payment award number of shares authorized percent of shares granted	250.00%
Five-Year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)		32,958
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%		0.00%
Minimum \| Tranche One
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%
Minimum \| Five-Year
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%
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%		200.00%
Maximum \| Tranche One
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%
Maximum \| Five-Year
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%
Number of installments \| installment		5

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective income tax rates were 21.6% and 20.8% for the three months ended September 30, 2020 and 2019, respectively, and 18.7% and 17.9% for the nine months ended September 30, 2020 and 2019, respectively. Total income tax benefit from continuing operations for the three and nine months ended September 30, 2020 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax loss primarily due to (i) the impact of recording a valuation allowance on Viper’s deferred tax assets, (ii) state income taxes and (iii) the impact of permanent differences between book and taxable income, partially offset by tax benefit in the first quarter resulting from the carryback of federal net operating losses. For the nine months ended September 30, 2020, the Company recorded a discrete income tax expense of $143 million related to application in the first quarter of a valuation allowance on Viper’s beginning-of-year deferred tax assets, which consist primarily of its investment in Viper LLC and federal net operating loss carryforwards. A valuation allowance was also applied against the year-to-date tax benefit resulting from Viper’s pre-tax loss for 2020. The determination to record a valuation allowance was based on assessment of all available evidence, both positive and negative, supporting realizability of Viper’s deferred tax assets. In light of those criteria for recognizing the tax benefit of deferred tax assets, Viper’s assessment resulted in application of a valuation allowance against Viper’s deferred tax assets as of March 31, 2020, June 30, 2020, and September 30, 2020. In addition, for the nine months ended September 30, 2020, the Company recorded a discrete income tax benefit of $25 million related to the available carryback of certain federal net operating losses to tax year(s) in which the corporate income tax rate was 35%. Prior to the enactment of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) in the first quarter of 2020, there was no tax refund available to the Company with respect to its losses, resulting in deferred tax benefit associated with federal net operating loss carryforwards at the statutory 21% corporate income tax rate. Total income tax expense for the three and nine months ended September 30, 2019 differed from amounts computed by applying the federal statutory rate to pre-tax income primarily due to (i) state income taxes, (ii) the impact of permanent differences between book and taxable income and (iii) 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 available regarding unitholders’ tax basis, Viper revised its estimate of deferred taxes on Viper’s investment in Viper LLC on the date of the tax status change, resulting in discrete deferred tax benefit of $42 million for the nine months ended September 30, 2019. During the three months ended June 30, 2020, the Company recorded an increase through stockholders’ equity to the carrying value of its investment in Rattler LLC, resulting in an increase in the Company’s deferred tax liability related to its investment in Rattler LLC. A corresponding adjustment to the noncontrolling interest resulted in a decrease in Rattler’s deferred tax liability related to its investment in Rattler LLC and a total net deferred tax asset balance for Rattler. As a result of Rattler’s assessment each period, including consideration of all available positive and negative evidence, Rattler continued to determine that it is more likely than not that Rattler will realize its deferred tax assets as of September 30, 2020. The CARES Act was enacted on March 27, 2020. This legislation included a number of provisions applicable to U.S. income taxes for corporations, including providing for carryback of certain net operating losses, accelerated refund of minimum tax credits, and modifications to the rules limiting the deductibility of business interest expense. The Company has considered the impact of this legislation in the period of enactment, resulting in discrete income tax benefit for the three months ended March 31, 2020 related to the anticipated carryback of approximately $179 million of the Company’s federal net operating losses as noted above. As a result of the refund associated with such carryback as well as the accelerated refund available for minimum tax credits, the Company’s current federal taxes receivable total approximately $100 million as of March 31, 2020, June 30, 2020 and September 30, 2020. As discussed further in Note 5, 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.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

DEBT - Viper’s Notes (Details) - USD ($)		3 Months Ended	9 Months Ended
DEBT - Viper’s Notes (Details) - USD ($)	Oct. 16, 2019	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Debt Instrument [Line Items]
Proceeds from senior notes			$ 997,000,000	$ 0
Outstanding borrowings		$ 5,847,000,000	$ 5,847,000,000		$ 5,371,000,000
Viper 5.375% Senior Notes due 2027
Debt Instrument [Line Items]
Debt instrument stated interest rate		5.375%	5.375%
Viper Energy Partners LP \| Viper 5.375% Senior Notes due 2027
Debt Instrument [Line Items]
Outstanding borrowings		$ 480,000,000	$ 480,000,000		$ 500,000,000
Viper Energy Partners LP \| Senior Notes \| Viper 5.375% Senior Notes due 2027
Debt Instrument [Line Items]
Debt instrument stated interest rate	5.375%
Aggregate principal amount	$ 500,000,000
Proceeds from senior notes	$ 490,000,000
Repurchase of debt		$ 6,000,000	$ 20,000,000
Viper Energy Partners LP \| Senior Notes \| Viper 5.375% Senior Notes due 2027 \| Minimum
Debt Instrument [Line Items]
Discount percentage		97.50%	97.50%
Viper Energy Partners LP \| Senior Notes \| Viper 5.375% Senior Notes due 2027 \| Maximum
Debt Instrument [Line Items]
Discount percentage		98.50%	98.50%

REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present the Company’s revenue from contracts with customers disaggregated by product type and basin:


	Three Months Ended September 30, 2020								Three Months Ended September 30, 2019
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(in millions)
Oil sales	$	348	$	257	$	1	$	606	$	529	$	350	$	3	$	882
Natural gas sales	19		17		—		36		7		8		1		16
Natural gas liquid sales	36		28		1		65		33		25		—		58

Total	$	403	$	302	$	2	$	707	$	569	$	383	$	4	$	956


	Nine Months Ended September 30, 2020								Nine Months Ended September 30, 2019
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(in millions)
Oil sales	$	1,030	$	750	$	5	$	1,785	$	1,561	$	951	$	60	$	2,572
Natural gas sales	32		29		—		61		17		18		1		36
Natural gas liquid sales	88		67		1		156		110		78		2		190

Total	$	1,150	$	846	$	6	$	2,002	$	1,688	$	1,047	$	63	$	2,798

REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

Revenue from Contracts with Customers


	Three Months Ended September 30, 2020								Three Months Ended September 30, 2019
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(in millions)
Oil sales	$	348	$	257	$	1	$	606	$	529	$	350	$	3	$	882
Natural gas sales	19		17		—		36		7		8		1		16
Natural gas liquid sales	36		28		1		65		33		25		—		58

Total	$	403	$	302	$	2	$	707	$	569	$	383	$	4	$	956


	Nine Months Ended September 30, 2020								Nine Months Ended September 30, 2019
	Midland Basin		Delaware Basin		Other		Total		Midland Basin		Delaware Basin		Other		Total
	(in millions)
Oil sales	$	1,030	$	750	$	5	$	1,785	$	1,561	$	951	$	60	$	2,572
Natural gas sales	32		29		—		61		17		18		1		36
Natural gas liquid sales	88		67		1		156		110		78		2		190

Total	$	1,150	$	846	$	6	$	2,002	$	1,688	$	1,047	$	63	$	2,798

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

RATTLER MIDSTREAM LP	9 Months Ended
RATTLER MIDSTREAM LP	Sep. 30, 2020
Noncontrolling Interest [Abstract]
RATTLER MIDSTREAM LP	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, 2020, Diamondback owned approximately 71% of Rattler’s total units outstanding. Prior to the completion of Rattler’s initial public offering (the “Rattler Offering”) in May 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 of $17.50 per common unit. 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 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.

DEBT - Viper’s Credit Agreement (Details)		3 Months Ended	9 Months Ended
DEBT - Viper’s Credit Agreement (Details)	Jul. 20, 2018 USD ($) redeterminations	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Outstanding borrowings		$ 5,847,000,000	$ 5,847,000,000		$ 5,371,000,000
Viper revolving credit facility \| Viper Energy Partners LP
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 2,000,000,000
Number of redeterminations \| redeterminations	3
Period of redetermination	12 months
Current borrowing capacity	$ 775,000,000	580,000,000	580,000,000	$ 580,000,000
Outstanding borrowings		127,000,000	127,000,000		$ 97,000,000
Remaining borrowing capacity		$ 453,000,000	$ 453,000,000
Weighted average rate		2.14%	2.66%

DIVESTITURE - 2019 Drop-Down Transaction (Details) - 2019 Drop-Down Transaction - Viper Energy Partners LP shares in Millions, $ in Millions	Jul. 29, 2019 USD ($) a shares
Business Acquisition [Line Items]
Number of shares to be issued in acquisition (in shares) \| shares	18.3
Business combination, total consideration \| $	$ 497
Proceeds from divestiture \| $	$ 190
Net royalty area (in acre) \| a	5,490
Percentage of mineral acres operated	95.00%
Percentage of average net royalty interest in acquired mineral and royalty interests	3.20%
Class B Units
Business Acquisition [Line Items]
Number of shares to be issued in acquisition (in shares) \| shares	18.3

REAL ESTATE ASSETS (Tables)

9 Months Ended

Sep. 30, 2020

Real Estate [Abstract]

Schedule of real estate assets

The following schedule presents the cost and related accumulated depreciation of the Company’s real estate assets. The Company’s intangible lease assets and related accumulated amortization were immaterial as of September 30, 2020 and December 31, 2019.


	Estimated Useful Lives	September 30, 2020		December 31, 2019
	(Years)	(in millions)
Buildings	20-30	$	102	$	102
Tenant improvements	15	5		5
Land	N/A	2		2
Land improvements	15	1		1
Total real estate assets		110		110
Less: accumulated depreciation		(12)		(9)
Total investment in land and buildings, net		$	98	$	101

DEBT - Second Amended and Restated Credit Facility (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2020 USD ($) numberOfLetters	Sep. 30, 2020 USD ($) numberOfLetters	Dec. 31, 2019 USD ($)
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 5,847,000,000	$ 5,847,000,000	$ 5,371,000,000
Revolving credit facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity	2,000,000,000	2,000,000,000
Outstanding borrowings	0	0	$ 13,000,000
Remaining borrowing capacity	$ 2,000,000,000.0	$ 2,000,000,000.0
Number of letters of credit outstanding \| numberOfLetters	3,000,000	3,000,000
Weighted average rate	1.83%	2.27%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2020

Accounting Policies [Abstract]

Recent Accounting Pronouncements


Standard	Description	Date of Adoption	Effect on Financial Statements or Other Significant Matters
Recently Adopted Pronouncements
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.	Q1 2020	The Company adopted this update effective January 1, 2020. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity since it does not have a history of credit losses.




Pronouncements Not Yet Adopted
ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes”	This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance.	Q1 2021	This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Company does not believe that the adoption of this update will have an impact on its financial position, results of operations or liquidity.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities:
Net income (loss)	$ (3,916)	$ 787
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for (benefit from) deferred income taxes	(902)	171
Impairment of oil and natural gas properties	4,999	0
Depreciation, depletion and amortization	1,036	1,046
(Gain) loss on derivative instruments, net	(82)	(3)
Cash received on settlement of derivative instruments	288	33
Other	68	34
Changes in operating assets and liabilities:
Accounts receivable	265	(116)
Accounts payable and accrued liabilities	(18)	(136)
Accrued interest	34	(29)
Revenues and royalties payable	(59)	64
Other	2	1
Net cash provided by (used in) operating activities	1,715	1,852
Cash flows from investing activities:
Drilling, completions and non-operated additions to oil and natural gas properties	(1,404)	(1,883)
Infrastructure additions to oil and natural gas properties	(96)	(104)
Additions to midstream assets	(133)	(186)
Acquisitions of leasehold interests	(89)	(311)
Acquisitions of mineral interests	(65)	(320)
Proceeds from sale of assets	2	301
Contributions to equity method investments	(90)	(225)
Distributions from equity method investments	27	0
Other	(7)	(16)
Net cash provided by (used in) investing activities	(1,855)	(2,744)
Cash flows from financing activities:
Proceeds from borrowings under credit facility	917	1,409
Repayments under credit facility	(1,238)	(1,168)
Proceeds from senior notes	997	0
Repayment of senior notes	(239)	0
Proceeds from joint venture	47	42
Public offering costs	0	(40)
Proceeds from public offerings	0	1,106
Repurchased shares as part of share buyback	(98)	(400)
Dividends to stockholders	(177)	(82)
Distributions to non-controlling interest	(77)	(79)
Other	(21)	(11)
Net cash provided by (used in) financing activities	111	777
Net increase (decrease) in cash and cash equivalents	(29)	(115)
Cash, cash equivalents and restricted cash at beginning of period	128	215
Cash, cash equivalents and restricted cash at end of period	99	100
Supplemental disclosure of cash flow information:
Interest paid, net of capitalized interest	100	115
Accrued capital expenditures	$ 352	$ 560

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Results of the company business segments

The following tables summarize the results of the Company’s operating segments during the periods presented:


	Upstream		Midstream Services		Eliminations		Total
Three Months Ended September 30, 2020:	(in millions)
Third-party revenues	$	706	$	14	$	—	$	720
Intersegment revenues	—		83		(83)		—
Total revenues	706		97		(83)		720
Depreciation, depletion and amortization	275		11		—		286
Impairment of oil and natural gas properties	1,451		—		—		1,451
Income (loss) from operations	(1,282)		44		(18)		(1,256)
Interest expense, net	(47)		(6)		—		(53)
Other income (expense)	(103)		4		(1)		(100)
Provision for (benefit from) income taxes	(307)		3		—		(304)
Net income (loss) attributable to non-controlling interest	(1)		9		—		8
Net income (loss) attributable to Diamondback Energy, Inc.	(1,124)		30		(19)		(1,113)
As of September 30, 2020:
Total assets	$	17,245	$	1,812	$	(297)	$	18,760


	Upstream		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
Depreciation, depletion and amortization	353		12		—		365
Income (loss) from operations	321		52		(24)		349
Interest expense, net	(37)		(1)		—		(38)
Other income (expense)	181		(1)		(1)		179
Provision for (benefit from) income taxes	99		3		—		102
Net income (loss) attributable to non-controlling interest	20		37		(37)		20
Net income (loss) attributable to Diamondback Energy, Inc.	346		10		12		368
As of December 31, 2019:
Total assets	$	22,125	$	1,636	$	(230)	$	23,531


	Upstream		Midstream Services		Eliminations		Total
Nine Months Ended September 30, 2020:	(in millions)
Third-party revenues	$	2,002	$	42	$	—	$	2,044
Intersegment revenues	—		273		(273)		—
Total revenues	2,002		315		(273)		2,044
Depreciation, depletion and amortization	1,001		35		—		1,036
Impairment of oil and natural gas properties	4,999		—		—		4,999
Income (loss) from operations	(4,787)		134		(77)		(4,730)
Interest expense, net	(137)		(10)		—		(147)
Other income (expense)	73		(10)		(4)		59
Provision for (benefit from) income taxes	(910)		8		—		(902)
Net income (loss) attributable to non-controlling interest	(163)		25		—		(138)
Net income (loss) attributable to Diamondback Energy, Inc.	(3,778)		81		(81)		(3,778)
As of September 30, 2020:
Total assets	$	17,245	$	1,812	$	(297)	$	18,760


	Upstream		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
Depreciation, depletion and amortization	1,014		32		—		1,046
Income (loss) from operations	1,004		159		(84)		1,079
Interest expense, net	(132)		(1)		—		(133)
Other income (expense)	16		(1)		(3)		12
Provision for (benefit from) income taxes	167		4		—		171
Net income (loss) attributable to non-controlling interest	60		52		(52)		60
Net income (loss) attributable to Diamondback Energy, Inc.	$	661	$	101	$	(35)	727
As of December 31, 2019:
Total assets	$	22,125	$	1,636	$	(230)	$	23,531

EQUITY METHOD INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following table presents the carrying values of Rattler’s equity method investments as of the dates indicated:


	Ownership Interest		September 30, 2020		December 31, 2019
			(in millions)
EPIC Crude Holdings, LP	10	%	$	123	$	110
Gray Oak Pipeline, LLC	10	%	135		115
Wink to Webster Pipeline LLC	4	%	75		34
OMOG JV LLC	60	%	195		219
Amarillo Rattler, LLC	50	%	4		1
Total			$	532	$	479

The following table presents income (loss) from Rattler’s equity method investees reflected in the Condensed Consolidated Statement of Operations for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
EPIC Crude Holdings, LP	$	(2)	$	—	$	(5)	$	—
Gray Oak Pipeline, LLC	4		—		6		—

OMOG JV LLC	1		—		(11)		—


Total	$	3	$	—	$	(10)	$	—

SUBSEQUENT EVENTS - Schedule of Derivative Contracts (Details) $ in Millions	1 Months Ended	9 Months Ended
	Nov. 02, 2020 MMBTU $ / bbl $ / MMBTU bbl	Sep. 30, 2020 USD ($) MMBTU $ / bbl $ / MMBTU bbl	Nov. 05, 2020 USD ($)
WTI Cushing \| OIL \| Costless Collar \| 2021
Subsequent Event [Line Items]
Volume (Bbls) \| bbl		10,000
Weighted Average Floor Price (USD per Bbl)		30.00
Weighted Average Ceiling Price (USD per Bbl)		43.05
WTI Cushing \| OIL \| Costless Collar \| Subsequent Event \| Jan. - Mar.
Subsequent Event [Line Items]
Volume (Bbls) \| bbl	3,000
Weighted Average Floor Price (USD per Bbl)	37.00
Weighted Average Ceiling Price (USD per Bbl)	44.19
WTI Cushing \| OIL \| Costless Collar \| Subsequent Event \| Mar. - June
Subsequent Event [Line Items]
Volume (Bbls) \| bbl	1,000
Weighted Average Floor Price (USD per Bbl)	37.00
Weighted Average Ceiling Price (USD per Bbl)	47.00
Brent \| OIL \| Costless Collar \| 2021
Subsequent Event [Line Items]
Volume (Bbls) \| bbl		65,000
Weighted Average Floor Price (USD per Bbl)		39.25
Weighted Average Ceiling Price (USD per Bbl)		48.36
Brent \| OIL \| Costless Collar \| Subsequent Event \| 2021
Subsequent Event [Line Items]
Volume (Bbls) \| bbl	6,000
Weighted Average Floor Price (USD per Bbl)	37.50
Weighted Average Ceiling Price (USD per Bbl)	45.50
Brent \| OIL \| Swaps \| 2021
Subsequent Event [Line Items]
Volume (Bbls) \| bbl		7,500
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon)		41.58
Weighted average differential (per Bbl)		0
Henry Hub \| NATURAL GAS \| Swaps \| 2021
Subsequent Event [Line Items]
Volume, energy measure (MMBtu) \| MMBTU		190,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU		2.62
Weighted average differential (per Bbl)		0
Henry Hub \| NATURAL GAS \| Swaps \| Subsequent Event
Subsequent Event [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	10,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU	3.05
Henry Hub \| NATURAL GAS \| Basis Swaps \| 2021
Subsequent Event [Line Items]
Volume, energy measure (MMBtu) \| MMBTU		230,000
Weighted Average Fixed Price (per Bbl/MMBtu/Gallon) \| $ / MMBTU		0
Weighted average differential (per Bbl)		(0.69)
Waha Hub \| NATURAL GAS \| Basis Swaps \| Subsequent Event
Subsequent Event [Line Items]
Volume, energy measure (MMBtu) \| MMBTU	20,000
Weighted average differential (per Bbl) \| $ / MMBTU	(0.31)
Interest Rate Swap One
Subsequent Event [Line Items]
Notional Amount (in millions) \| $		$ 250
Interest Rate		1.551%
Interest Rate Swap One \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.692%
Interest Rate Swap Two
Subsequent Event [Line Items]
Notional Amount (in millions) \| $		$ 250
Interest Rate		1.5575%
Interest Rate Swap Two \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.8361%
Interest Rate Swap Three
Subsequent Event [Line Items]
Notional Amount (in millions) \| $		$ 250
Interest Rate		1.297%
Interest Rate Swap Three \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.852%
Interest Rate Swap One, Terminated \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.551%
Interest Rate Swap Two, Terminated \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.5575%
Interest Rate Swap Three, Terminated \| Subsequent Event
Subsequent Event [Line Items]
Notional Amount (in millions) \| $			$ 250
Interest Rate			1.297%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2020	Mar. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Change in ownership of consolidated subsidiaries, net	$ 0	$ 3
Non-Controlling Interest
Accounts, Notes, Loans and Financing Receivable [Line Items]
Change in ownership of consolidated subsidiaries, net	(329)	(74)
Non-Controlling Interest \| Rattler LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Change in ownership of consolidated subsidiaries, net	(329)
Additional Paid-in Capital
Accounts, Notes, Loans and Financing Receivable [Line Items]
Change in ownership of consolidated subsidiaries, net	329	$ 77
Additional Paid-in Capital \| Rattler LLC
Accounts, Notes, Loans and Financing Receivable [Line Items]
Change in ownership of consolidated subsidiaries, net	$ 329

FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2020	Dec. 31, 2019
Current:
Derivative instruments	$ 15	$ 46
Non-current:
Derivative instruments	0	7
Current:
Derivative instruments	86	27
Non-current:
Derivative instruments	108	0
Viper Energy Partners LP \| Recurring \| Investment
Non-current:
Total Gross Fair Value	5	19
Gross Amounts Offset in Balance Sheet	0	0
Derivative instruments	5	19
Viper Energy Partners LP \| Recurring \| Derivative Instruments
Current:
Total Gross Fair Value	107	64
Gross Amounts Offset in Balance Sheet	(92)	(18)
Derivative instruments	15	46
Non-current:
Total Gross Fair Value	65	7
Gross Amounts Offset in Balance Sheet	(65)	0
Derivative instruments	0	7
Current:
Total Gross Fair Value	178	45
Gross Amounts Offset in Balance Sheet	(92)	(18)
Derivative instruments	86	27
Non-current:
Total Gross Fair Value	173
Gross Amounts Offset in Balance Sheet	(65)
Derivative instruments	108
Viper Energy Partners LP \| Recurring \| Level 1 \| Investment
Non-current:
Total Gross Fair Value	5	19
Viper Energy Partners LP \| Recurring \| Level 1 \| Derivative Instruments
Current:
Total Gross Fair Value	0	0
Non-current:
Total Gross Fair Value	0	0
Current:
Total Gross Fair Value	0	0
Non-current:
Total Gross Fair Value	0
Viper Energy Partners LP \| Recurring \| Level 2 \| Investment
Non-current:
Total Gross Fair Value	0	0
Viper Energy Partners LP \| Recurring \| Level 2 \| Derivative Instruments
Current:
Total Gross Fair Value	107	64
Non-current:
Total Gross Fair Value	65	7
Current:
Total Gross Fair Value	178	45
Non-current:
Total Gross Fair Value	173
Viper Energy Partners LP \| Recurring \| Level 3 \| Investment
Non-current:
Total Gross Fair Value	0	0
Viper Energy Partners LP \| Recurring \| Level 3 \| Derivative Instruments
Current:
Total Gross Fair Value	0	0
Non-current:
Total Gross Fair Value	0	0
Current:
Total Gross Fair Value	0	$ 0
Non-current:
Total Gross Fair Value	$ 0

CAPITAL STOCK AND EARNINGS PER SHARE - Capital Stock (Details) - USD ($)	3 Months Ended					9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	May 31, 2019
Equity [Abstract]
Stock repurchase program authorized amount							$ 2,000,000,000
Repurchased shares for share buyback program (in Shares)	0
Stock repurchase program amount repurchased		$ 98,000,000	$ 296,000,000	$ 104,000,000	$ 13,000,000	$ 98,000,000
Stock repurchase remaining authorized amount	$ 1,300,000,000					$ 1,300,000,000

DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of derivative contracts

As of September 30, 2020, the Company had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu/Gallons Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Oct. - Dec.	2020	Swaps	11,000	WTI Cushing	$—	$43.47	$—	$—
Oct. - Dec.	2020	Swaps	4,000	WTI Magellan	$—	$61.95	$—	$—
Oct. - Dec.	2020	Swaps	24,200	Brent	$—	$47.62	$—	$—
Oct. - Dec.	2020	Basis Swaps	45,087	WTI Cushing(1)	$(1.33)	$—	$—	$—
Oct. - Dec.	2020	Basis Swaps	8,000	WTL Cushing(1)	$(1.31)	$—	$—	$—
Oct. - Dec.	2020	Rolling Hedge(2)	120,000	WTI Cushing	$(1.05)	$—	$—	$—
Oct. - Dec.	2020	Costless Collar	45,779	WTI Cushing	$—	$—	$35.92	$42.29
Oct. - Dec.	2020	Costless Collar	4,000	WTI Magellan	$—	$—	$39.00	$49.00
Oct. - Dec.	2020	Costless Collar	64,710	Brent	$—	$—	$37.59	$45.63
Jan. - Dec.	2021	Swaps	5,000	WTI Magellan	$—	$37.78	$—	$—
Jan. - Dec.	2021	Swaps	7,500	Brent	$—	$41.58	$—	$—
Jan. - Dec.	2021	Costless Collar	65,000	Brent	$—	$—	$39.25	$48.36
July - Dec.	2021	Swaption	5,000	Brent	$—	$51.00	$—	$—
Jan. - Dec.	2021	Costless Collar	10,000	WTI Cushing	$—	$—	$30.00	$43.05
NATURAL GAS
Oct. - Dec.	2020	Swaps	60,000	Henry Hub	$—	$2.48	$—	$—
Oct. - Dec.	2020	Swaps	60,000	Waha Hub	$—	$1.51	$—	$—
Oct. - Dec.	2020	Basis Swaps	145,000	Waha Hub(1)	$(1.57)	$—	$—	$—
Jan. - Dec.	2021	Swaps	190,000	Henry Hub	$—	$2.62	$—	$—
Jan. - Dec.	2021	Basis Swaps	230,000	Waha Hub(1)	$(0.69)	$—	$—	$—
Jan. - Dec.	2022	Basis Swaps	80,000	Waha Hub(1)	$(0.45)	$—	$—	$—
NATURAL GAS LIQUIDS
Oct. - Dec.	2020	Swaps	7,000	Mont Belvieu Ethane	$—	$8.43	$—	$—
Oct. - Dec.	2020	Swaps	5,000	Mont Belvieu Propane	$—	$21.76	$—	$—
DIESEL
Oct. - Dec.	2021	Swaps	1,000,000	Gulf Cost Ultra Low Sulfur	$—	$1.60	$—	$—


Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Strike Price	Swap Price	Put Price	Long Put Price	Option Price
OIL
Oct. - Dec.	2020	Calls(1)	8,000	WTI Magellan	$45.00	$—	$—	$—	$—
Oct. - Dec.	2020	Option	4,700	WTI Cushing	$—	$—	$—	$46.51	$—
Oct. - Dec.	2020	Put Spread	3,800	WTI Magellan	$—	$—	$25.00	$50.00	$—
Oct. - Dec.	2022	Option	5,000	WTI Cushing	$—	$—	$35.00	$—	$—
NATURAL GAS
Oct. - Dec.	2020	Swap Double-Up	30,000	Waha Hub	$—	$1.70	$—	$—	$1.70

(1) Includes a deferred premium at a weighted-average price of $(1.89)/Bbl and a strike price of $45.00/Bbl

The following table summarizes the Company’s interest rate swaps and treasury locks as of September 30, 2020:


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.195	%


					Swaps		Collars
Settlement Month	Settlement Year	Type of Contract	Bbls/Mmbtu Per Day	Index	Weighted Average Differential	Weighted Average Fixed Price	Weighted Average Floor Price	Weighted Average Ceiling Price
OIL
Jan. - Mar.	2021	Costless Collar	3,000	WTI Cushing	$—	$—	$37.00	$44.19
Mar. - June	2021	Costless Collar	1,000	WTI Cushing	$—	$—	$37.00	$47.00
Jan. - June	2021	Costless Collar	6,000	Brent	$—	$—	$37.50	$45.50
NATURAL GAS
Jan. - Dec.	2021	Swaps	10,000	Henry Hub	$—	$3.05	$—	$—
Jan. - Dec.	2022	Basis Swap	20,000	Waha Hub	$(0.31)	$—	$—	$—

Interest Rate Swaps

Subsequent to September 30, 2020, the Company entered into new interest rate swaps and terminated existing interest rate swaps.

The following table presents the interest rate swaps entered into by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.692	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.8361	%
Interest Rate Swap	December 31, 2024	December 31, 2054	$	250	1.852	%

The following table presents the interest rate swap contracts terminated by the Company subsequent to September 30, 2020.


Type	Effective Date	Contractual Termination Date	Notional Amount (in millions)		Interest Rate
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.551	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.5575	%
Interest Rate Swap	December 31, 2020	December 31, 2030	$	250	1.297	%

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 condensed consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Gain (loss) on derivative instruments, net
Commodity contracts	$	(104)	$	157	$	147	$	(17)
Interest rate swaps	5		20		(65)		20
Total	$	(99)	$	177	$	82	$	3

Net cash received (paid) on settlements
Commodity contracts(1)	(9)		11		288		33

Total	$	(9)	$	11	$	288	$	33

(1)The three and nine months ended September 30, 2020 include cash received on contracts terminated prior to their contractual maturity of $6 million and $17 million, respectively.

- Definition

+ References

+ Details

Asset Retirement Obligations (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Asset retirement obligations, beginning of period			$ 94	$ 136
Additional liabilities incurred			12	6
Liabilities acquired			3	3
Liabilities settled			(1)	(61)
Asset retirement obligation accretion	$ 2	$ 1	5	6
Asset retirement obligations, end of period	113	90	113	90
Less current portion	1	0	1	0
Asset retirement obligations - long-term	$ 112	$ 90	$ 112	$ 90	$ 94

DEBT - Rattler's Credit Agreement (Details) - USD ($)	3 Months Ended	9 Months Ended
DEBT - Rattler's Credit Agreement (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2020	Dec. 31, 2019	May 28, 2019
Line of Credit Facility [Line Items]
Outstanding borrowings	$ 5,847,000,000	$ 5,847,000,000	$ 5,371,000,000
Rattler revolving credit facility \| Rattler LLC
Line of Credit Facility [Line Items]
Maximum borrowing capacity	600,000,000	600,000,000
Expandable amount				$ 1,000,000,000
Outstanding borrowings	85,000,000	85,000,000	$ 424,000,000
Remaining borrowing capacity	$ 515,000,000	$ 515,000,000
Weighted average rate	1.46%	2.18%

DIVESTITURES	9 Months Ended
DIVESTITURES	Sep. 30, 2020
Business Combinations [Abstract]
DIVESTITURES	DIVESTITURES 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, 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, 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 with a fair value of $497 million and $190 million in cash, after giving effect to closing adjustments for net title benefits (the “Drop-Down”). The mineral and royalty interests 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.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair value measurement information for financial instruments measured on a recurring basis


	As of September 30, 2020
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	107	$	—	$	107	$	(92)	$	15

Non-current:
Investment	$	5	$	—	$	—	$	5	$	—	$	5
Derivative Instruments	$	—	$	65	$	—	$	65	$	(65)	$	—

Liabilities:
Current:
Derivative Instruments	$	—	$	178	$	—	$	178	$	(92)	$	86

Non-current:
Derivative Instruments	$	—	$	173	$	—	$	173	$	(65)	$	108


	As of December 31, 2019
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	64	$	—	$	64	$	(18)	$	46

Non-current:
Investment	$	19	$	—	$	—	$	19	$	—	$	19
Derivative Instruments	$	—	$	7	$	—	$	7	$	—	$	7

Liabilities:
Current:
Derivative Instruments	$	—	$	45	$	—	$	45	$	(18)	$	27

Offsetting Assets


	As of September 30, 2020
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	107	$	—	$	107	$	(92)	$	15

Non-current:
Investment	$	5	$	—	$	—	$	5	$	—	$	5
Derivative Instruments	$	—	$	65	$	—	$	65	$	(65)	$	—

Liabilities:
Current:
Derivative Instruments	$	—	$	178	$	—	$	178	$	(92)	$	86

Non-current:
Derivative Instruments	$	—	$	173	$	—	$	173	$	(65)	$	108


	As of December 31, 2019
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	64	$	—	$	64	$	(18)	$	46

Non-current:
Investment	$	19	$	—	$	—	$	19	$	—	$	19
Derivative Instruments	$	—	$	7	$	—	$	7	$	—	$	7

Liabilities:
Current:
Derivative Instruments	$	—	$	45	$	—	$	45	$	(18)	$	27

Offsetting Liabilities


	As of September 30, 2020
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	107	$	—	$	107	$	(92)	$	15

Non-current:
Investment	$	5	$	—	$	—	$	5	$	—	$	5
Derivative Instruments	$	—	$	65	$	—	$	65	$	(65)	$	—

Liabilities:
Current:
Derivative Instruments	$	—	$	178	$	—	$	178	$	(92)	$	86

Non-current:
Derivative Instruments	$	—	$	173	$	—	$	173	$	(65)	$	108


	As of December 31, 2019
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(in millions)
Assets:
Current:

Derivative Instruments	$	—	$	64	$	—	$	64	$	(18)	$	46

Non-current:
Investment	$	19	$	—	$	—	$	19	$	—	$	19
Derivative Instruments	$	—	$	7	$	—	$	7	$	—	$	7

Liabilities:
Current:
Derivative Instruments	$	—	$	45	$	—	$	45	$	(18)	$	27

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 condensed consolidated balance sheets:


	September 30, 2020				December 31, 2019
	Carrying				Carrying
	Value(1)		Fair Value		Value(1)		Fair Value
	(in millions)
Debt:
Revolving credit facility	$	—	$	—	$	13	$	13
4.625% Notes due 2021	$	191	$	194	$	399	$	411
7.320% Medium-term Notes, Series A, due 2022	$	21	$	22	$	21	$	22
2.875% Senior Notes due 2024	$	993	$	1,014	$	992	$	1,012
4.750% Senior Notes due 2025	$	496	$	541	$	—	$	—
5.375% Senior Notes due 2025	$	800	$	830	$	799	$	840
3.250% Senior Notes due 2026	$	793	$	803	$	792	$	812
7.350% Medium-term Notes, Series A, due 2027	$	—	$	—	$	11	$	12
7.125% Medium-term Notes, Series B, due 2028	$	107	$	113	$	108	$	116
3.500% Senior Notes due 2029	$	1,187	$	1,158	$	1,186	$	1,226
Viper revolving credit facility	$	127	$	127	$	97	$	97
Viper's 5.375% Senior Notes due 2027	$	471	$	477	$	490	$	521
Rattler revolving credit facility	$	85	$	85	$	424	$	424
Rattler’s 5.625% Senior Notes due 2025	$	490	505		$	—	$	—
DrillCo Agreement	$	86	$	86	$	39	$	39

(1)The carrying value includes associated deferred loan costs and any remaining discount or premium, if any.

EQUITY-BASED COMPENSATION - Restricted Stock Units (Details) - Equity Plan - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Restricted Stock Awards & Units (in Shares)
Unvested, beginning balance (in shares) \| shares	505,867
Granted (in shares) \| shares	183,102
Vested (in shares) \| shares	(139,355)
Forfeited (in shares) \| shares	(19,228)
Unvested, ending balance (in shares) \| shares	530,386
Weighted Average Grant-Date Fair Value
Unvested, beginning balance (in USD per share) \| $ / shares	$ 96.01
Granted (in USD per share) \| $ / shares	60.72
Vested (in USD per share) \| $ / shares	85.21
Forfeited (in USD per share) \| $ / shares	99.01
Unvested, ending balance (in USD per share) \| $ / shares	$ 86.55

DEBT - Alliance with Obsidian Resources, L.L.C. (Details) - DrillCo Agreement $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($) well	Dec. 31, 2019 USD ($)	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	$ 86	$ 39
Wells drilled and completed under joint venture agreement \| well	15
CEMOF
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Interest rate upon reaching final internal rate of return			15.00%

Property and Equipment (Tables)

9 Months Ended

Sep. 30, 2020

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment includes the following as of the dates indicated:


	September 30,		December 31,
	2020		2019

	(in millions)
Oil and natural gas properties:
Subject to depletion	$	19,426	$	16,575
Not subject to depletion	7,879		9,207
Gross oil and natural gas properties	27,305		25,782
Accumulated depletion	(3,988)		(2,995)
Accumulated impairment	(6,933)		(1,934)
Oil and natural gas properties, net	16,384		20,853
Midstream assets	1,026		931
Other property, equipment and land	135		125
Accumulated depreciation	(110)		(74)
Total property and equipment, net	$	17,435	$	21,835

REAL ESTATE ASSETS

9 Months Ended

Sep. 30, 2020

Real Estate [Abstract]

REAL ESTATE ASSETS


	Estimated Useful Lives	September 30, 2020		December 31, 2019
	(Years)	(in millions)
Buildings	20-30	$	102	$	102
Tenant improvements	15	5		5
Land	N/A	2		2
Land improvements	15	1		1
Total real estate assets		110		110
Less: accumulated depreciation		(12)		(9)
Total investment in land and buildings, net		$	98	$	101

REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 707	$ 956	$ 2,002	$ 2,798
Midland Basin
Disaggregation of Revenue [Line Items]
Revenue	403	569	1,150	1,688
Delaware Basin
Disaggregation of Revenue [Line Items]
Revenue	302	383	846	1,047
Other
Disaggregation of Revenue [Line Items]
Revenue	2	4	6	63
Oil sales
Disaggregation of Revenue [Line Items]
Revenue	606	882	1,785	2,572
Oil sales \| Midland Basin
Disaggregation of Revenue [Line Items]
Revenue	348	529	1,030	1,561
Oil sales \| Delaware Basin
Disaggregation of Revenue [Line Items]
Revenue	257	350	750	951
Oil sales \| Other
Disaggregation of Revenue [Line Items]
Revenue	1	3	5	60
Natural gas sales
Disaggregation of Revenue [Line Items]
Revenue	36	16	61	36
Natural gas sales \| Midland Basin
Disaggregation of Revenue [Line Items]
Revenue	19	7	32	17
Natural gas sales \| Delaware Basin
Disaggregation of Revenue [Line Items]
Revenue	17	8	29	18
Natural gas sales \| Other
Disaggregation of Revenue [Line Items]
Revenue	0	1	0	1
Natural gas liquid sales
Disaggregation of Revenue [Line Items]
Revenue	65	58	156	190
Natural gas liquid sales \| Midland Basin
Disaggregation of Revenue [Line Items]
Revenue	36	33	88	110
Natural gas liquid sales \| Delaware Basin
Disaggregation of Revenue [Line Items]
Revenue	28	25	67	78
Natural gas liquid sales \| Other
Disaggregation of Revenue [Line Items]
Revenue	$ 1	$ 0	$ 1	$ 2

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

EQUITY-BASED COMPENSATION - Rattler Phantom Units (Narratives) (Details) - Phantom Share Units (PSUs) - Rattler Midstream LP Long-Term Incentive Plan $ in Millions	9 Months Ended
	Sep. 30, 2020 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregated fair value of restricted stock	$ 9.0
Share based award not recognized	$ 31.0
Share based payment not recognized	3 years 7 months 6 days

EQUITY-BASED COMPENSATION - Valuation Assumptions (Details) - Equity Plan - Performance Shares - $ / shares	1 Months Ended			9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Feb. 28, 2018	Sep. 30, 2020
Restricted Stock Awards & Units
Granted (in USD per share)	$ 70.17	$ 137.22	$ 170.45	$ 85.73
Risk-free rate	0.86%	2.55%	1.99%
Company volatility	36.70%	35.00%	35.90%
Five-Year
Restricted Stock Awards & Units
Granted (in USD per share)		$ 132.48

FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Millions	Sep. 30, 2020	May 26, 2020	Dec. 31, 2019
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%
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%
2.875% Senior Notes due 2024
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	2.875%
4.750% Senior Notes due 2025
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	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%
3.250% Senior Notes due 2026
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	3.25%
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%
7.125% 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%
3.500% Senior Notes due 2029
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	3.50%
Viper 5.375% Senior Notes due 2027
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	5.375%
Rattler 5.625% Senior Notes due 2025
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt instrument stated interest rate	5.625%
Reported Value Measurement \| Company revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	$ 0		$ 13
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	191		399
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		21
Reported Value Measurement \| 2.875% Senior Notes due 2024 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	993		992
Reported Value Measurement \| 4.750% Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	496		0
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		799
Reported Value Measurement \| 3.250% Senior Notes due 2026 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	793		792
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	0		11
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	107		108
Reported Value Measurement \| 3.500% Senior Notes due 2029 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	1,187		1,186
Reported Value Measurement \| Viper revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	127		97
Reported Value Measurement \| Viper 5.375% Senior Notes due 2027 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	471		490
Reported Value Measurement \| Rattler revolving credit facility \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Revolving credit facility	85		424
Reported Value Measurement \| DrillCo Agreement \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt, fair value	86		39
Reported Value Measurement \| Rattler 5.625% Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	490		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	194		411
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		22
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	0		12
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	113		116
Estimate of Fair Value Measurement \| DrillCo Agreement \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Debt, fair value	86		39
Estimate of Fair Value Measurement \| Rattler 5.625% Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	505		0
Level 1 \| Estimate of Fair Value Measurement \| 2.875% Senior Notes due 2024 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	1,014		1,012
Level 1 \| Estimate of Fair Value Measurement \| 4.750% Senior Notes due 2025 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	541		0
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	830		840
Level 1 \| Estimate of Fair Value Measurement \| 3.250% Senior Notes due 2026 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	803		812
Level 1 \| Estimate of Fair Value Measurement \| 3.500% Senior Notes due 2029 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	1,158		1,226
Level 1 \| Estimate of Fair Value Measurement \| Viper 5.375% Senior Notes due 2027 \| Nonrecurring
Fair value of assets and liabilities measured on a recurring and nonrecurring basis
Senior notes due	477		521
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	0		13
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	127		97
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	$ 85		$ 424