Diamondback Energy

“Approximately 61% of the royalty acreage is operated by Exxon, Diamondback and Occidental.”

Diamondback is a lead operator on the newly acquired Midland Basin royalty acreage, developing wells that generate royalty revenue for TPL.

“We sold the EDS system to Deep Blue in fourth quarter”

Diamondback divested its EDS water system to Deep Blue, a water-midstream counterparty, in Q4.

“the Endeavor deal was very well received and that deal was put on the books in September of 2024 at $80 oil”

Diamondback defends the well-received Endeavor acquisition despite a price-driven writedown, reaffirming the deal's strategic value.

“as we do deals like Double Eagle last year or Endeavor the year before”

Diamondback references its Double Eagle acquisition as a source of new PUD inventory, evidence of continued Midland Basin consolidation.

“While I realize that EOG is chasing a different Woodford concept than Pecos”

An analyst notes EOG is pursuing a different Woodford concept in the Delaware; Diamondback frames that interval as higher-cost than its Midland Barnett.

“I think the strategy at Deep Blue is playing out very nicely. I think they've done an incredible job building the third-party business.”

Diamondback holds a 30% stake in water-midstream venture Deep Blue and is pleased with its third-party business build-out and value creation.

“post Energy Transfer buying WTG, which we were an investor in, we've decided to work with them and commit some gas to that Hugh Brinson pipeline going east.”

After Energy Transfer acquired WTG (in which Diamondback was an investor), Diamondback is committing gas to Energy Transfer's Hugh Brinson pipeline to diversify egress away from Waha.

“we committed up to 50 million a day of our nat gas to competitive power ventures for their new 1.3 gigawatt Basin Ranch power plant in Ward County.”

Diamondback committed up to 50 MMcf/d of gas to Competitive Power Ventures' new 1.3 GW Basin Ranch power plant (operational 2029), an in-basin gas offtake customer under a long-term ERCOT-indexed supply agreement.

“you mentioned the benefits of the Sitio acquisition for Viper and the potential M&A market for minerals and royalties.”

Analyst references Viper's (Diamondback's minerals affiliate) acquisition of Sitio, a read-through on consolidation in the minerals and royalties market.

“WTG has been spending a lot of capital, adding plants and capacity to a very high-growth area, Martin County, of which we were the largest producer on the system. With that growth, there was some growing pains and some power issues that took both WTG and Energy Transfer some time to work through. But now we've started to see that those plants operate a lot more efficiently.”

Diamondback credits midstream partner Energy Transfer (via the WTG gas processing system) with resolving earlier bottlenecks in Martin County, driving a sharp increase in FANG's NGL yields this quarter.

“we've always been big fans of the Halliburton, Zeus E-fleets. We run four of those today.”

Halliburton is a core completions service provider for Diamondback, with the company running four Halliburton Zeus electric frac fleets and describing the relationship favorably.

“Outside of that, we obviously participated a little bit in the sale of Bangle, the NGL pipeline, to MPLX. That should close in July”

Diamondback is divesting its stake in the Bangle NGL pipeline to MPLX, expected to close in July 2025, as part of a broader non-core asset sale program.

“Deep Blue obviously is essentially a subsidiary of ours. We own 30% of it. We think the EDS, which is the Endeavor water system, logically belongs in Deep Blue. It makes that business the largest water handler in the Midland Basin, and it seems that water has started to get a lot more attention in the public market”

Diamondback holds a 30% stake in produced-water handler Deep Blue and plans to fold its Endeavor water system into it, aiming to build the largest water handler in the Midland Basin.