PROSPECTUS SUPPLEMENT SUMMARY
This summary highlights selected information from this prospectus supplement, the accompanying prospectus, or documents incorporated by reference herein and therein, and is therefore qualified in its entirety by the more detailed information appearing elsewhere, or incorporated by reference, in this prospectus supplement or the accompanying prospectus. Because it is a summary, it does not contain all the information that you should consider before investing. Before investing in our common stock, you should read this entire prospectus supplement and the accompanying prospectus carefully, including the “Risk Factors,” and the financial statements and accompanying notes and other information incorporated by reference in this prospectus supplement and the accompanying prospectus.
Company Overview
We are an independent oil and natural gas company focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. We report operations in one reportable segment, the upstream segment.
Our principal executive offices are located at 500 West Texas Ave., Suite 100, Midland, TX 79701 and our telephone number is (432) 221-7400. Our common stock is listed on Nasdaq under the trading symbol “FANG.” Our website address is www.diamondbackenergy.com. Information contained on our website does not constitute part of this prospectus supplement or the accompanying prospectus.
Recent Developments
Share Repurchase
We regularly evaluate alternatives to deliver value to our stockholders and optimize our capital structure, including alternatives that utilize our existing stock repurchase program. On September 18, 2024, our board of directors approved increasing the total authorized repurchases under the our existing common stock repurchase program from $4 billion to $6 billion. As of September 18, 2024, we had repurchased 20,257,528 shares of common stock under the common stock repurchase program at an average share price of $127.00 for a total cost of approximately $2.57 billion. We intend to purchase from the underwriters 2,000,000 shares of our common stock offered in this offering, at a price per share equal to the price per share to be paid by the underwriters to the selling stockholders, as part of our existing stock repurchase program.
The terms and conditions of the Share Repurchase were reviewed and approved by the audit committee of our board of directors, comprised of independent and disinterested directors. The Share Repurchase will be made under our existing share repurchase program and will reduce the remaining amount available for purchase. The Share Repurchase will be funded from our existing cash on hand. The underwriters will not receive any compensation for the shares being repurchased by us. See “Share Repurchase”.
Endeavor Acquisition
On September 10, 2024, we completed our acquisition of Endeavor. Following the acquisition, we have approximately 831,000 net acres and 816 Mboe/d of net production. We expect to achieve significant operational synergies resulting from our lower existing capital cost structure. Further our enhanced free cash flow profile resulting from the acquisition will allow for rapid debt reduction which, together with the increased size and scale of operations, is expected to enhance our credit ratings and lower cost of capital.
For the three months ended June 30, 2024, our net cash provided by operating activities was $1,529 million and for the six months ended June 30, 2024, our net cash provided by operating activities was $2,863 million. As of June 30, 2024, our total debt (excluding debt issuance costs, discounts, premiums and fair value hedges) was $11,169 million, and our total debt (excluding debt issuance costs, discounts, premiums and fair value hedges) of our consolidated subsidiary, Viper Energy, Inc. (“Viper”), was $1,007 million.
For the three months ended June 30, 2024, our Free Cash Flow (as defined and reconciled below) was $816 million ($4.58 per share), and our Adjusted Free Cash Flow (as reconciled and defined below) was $841 million ($4.72 per share). For the six months ended June 30, 2024, our Free Cash Flow was $1,607 million, and our Adjusted Free Cash Flow was $1,632 million.