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SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited)
 12 Months Ended
Dec. 31, 2025
Extractive Industries [Abstract]  
SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited) SUPPLEMENTAL INFORMATION ON OIL AND NATURAL GAS OPERATIONS (Unaudited)
The Company’s oil and natural gas reserves are attributable solely to properties within the United States.

Capitalized Oil and Natural Gas Costs

Aggregate capitalized costs related to oil and natural gas production activities with applicable accumulated depreciation, depletion and amortization are as follows:

December 31,
20252024
(In millions)
Oil and natural gas interests:
Proved$9,746 $3,533 
Unproved4,910 2,180 
Total oil and natural gas interests14,656 5,713 
Accumulated depletion(1,567)(961)
Accumulated impairment(888)(120)
Net oil and natural gas interests capitalized$12,201 $4,632 
Costs Incurred in Oil and Natural Gas Activities

Costs incurred in oil and natural gas property acquisition activities are as follows:

Year Ended December 31,
202520242023
(In millions)
Acquisition costs:
Proved properties$4,976 $341 $403 
Unproved properties3,968 830 758 
Total$8,944 $1,171 $1,161 

Results of Operations from Oil and Natural Gas Producing Activities

Substantially all of the Company’s producing activities are from oil and natural gas activities and are included in the “—Consolidated Statements of Operations.”

Oil and Natural Gas Reserves

Proved oil and natural gas reserve estimates and their associated future net cash flows were prepared by the Company’s internal reservoir engineers and audited by Ryder Scott, independent petroleum engineers, as of December 31, 2025, 2024 and 2023. The reserve estimates represent the Company’s net revenue interest in the Company’s properties. Proved reserves were estimated in accordance with guidelines established by the SEC, which require that reserve estimates be prepared under existing economic and operating conditions based upon SEC Prices for the periods ended December 31, 2025, 2024 and 2023, respectively. Reserve estimates do not include any value for probable or possible reserves that may exist, nor do they include any value for undeveloped acreage. All of the Company’s proved reserves included in the reserve reports are located in the continental United States. Although the estimates are believed to be reasonable, actual future production, cash flows, taxes and quantities of recoverable oil and natural gas reserves may vary substantially from these estimates.

There are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves. Oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that cannot be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment. Results of drilling, testing and production subsequent to the date of the estimate may justify revision of such estimate. Accordingly, reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered.
The following table presents changes in estimated proved reserves, which were prepared in accordance with the rules and regulations of the SEC:

Oil
(MBbls)		Natural Gas
(MMcf)		Natural Gas Liquids
(MBbls)
Total (MBOE)(1)
Proved Developed and Undeveloped Reserves:
As of December 31, 202279,004 209,964 34,902 148,900 
Purchase of reserves in place10,469 27,011 4,006 18,977 
Extensions and discoveries13,636 34,632 6,150 25,558 
Revisions of previous estimates(5,178)11,101 3,466 138 
Production(8,028)(19,130)(3,108)(14,324)
As of December 31, 202389,903 263,578 45,416 179,249 
Purchase of reserves in place7,891 20,310 3,665 14,941 
Extensions and discoveries13,099 33,498 6,254 24,936 
Revisions of previous estimates(6,472)4,449 2,837 (2,894)
Divestitures(919)(4,605)(451)(2,138)
Production(9,939)(24,606)(4,181)(18,221)
As of December 31, 202493,563 292,624 53,540 195,873 
Purchase of reserves in place90,168 336,127 55,102 201,291 
Extensions and discoveries31,305 90,973 15,702 62,170 
Revisions of previous estimates(3,951)(31,751)(9,328)(18,570)
Divestitures(4)(12)(2)(8)
Production(17,875)(51,676)(8,233)(34,721)
As of December 31, 2025193,206 636,285 106,781 406,035 
Proved Developed Reserves:
December 31, 202369,043 221,462 37,417 143,371 
December 31, 202476,020 253,271 45,633 163,865 
December 31, 2025147,036 512,302 84,282 316,702 
Proved Undeveloped Reserves:
December 31, 202320,860 42,116 7,999 35,878 
December 31, 202417,543 39,353 7,907 32,009 
December 31, 202546,170 123,983 22,499 89,333 
(1)Includes total proved reserves of 219,259 MBOE, 94,019 MBOE, 91,417 MBOE and 81,895 MBOE as of December 31, 2025, 2024, 2023 and 2022, respectively, attributable to a non-controlling interest in the Operating Company.

Revisions represent changes in previous reserves estimates, either upward or downward, resulting from new information normally obtained from development drilling and production history or resulting from a change in economic factors, such as commodity prices, operating costs or development costs.

During the year ended December 31, 2025, the Company’s total extensions and discoveries of 62,170 MBOE resulted primarily from the drilling of 1,497 new wells and from 1,071 new proved undeveloped locations added. The Company’s total downward revisions of previous estimated quantities of 18,570 MBOE were primarily attributable to negative revisions of (i) 11,481 MBOE associated with lower commodity prices, (ii) 4,722 MBOE due to PUD downgrades, and (iii) 2,367 MBOE primarily attributable to performance revisions. Total purchases of reserves in place of 201,291 MBOE resulted primarily from the Sitio Acquisition, the 2025 Drop Down, the Morita Ranches Acquisition and other acquisitions of certain mineral and royalty interests.
During the year ended December 31, 2024, the Company’s total extensions and discoveries of 24,936 MBOE resulted primarily from the drilling of 1,170 new wells and from 447 new proved undeveloped locations added. The Company’s total downward revisions of previous estimated quantities of 2,894 MBOE were primarily attributable to negative revisions of (i) 6,539 MBOE associated with lower commodity prices, and (ii) 2,936 MBOE due primarily to PUD downgrades partially offset by positive revisions of 6,580 MBOE primarily attributable to performance revisions. Total purchases of reserves in place of 14,941 MBOE resulted primarily from the Tumbleweed Acquisitions and other acquisitions of certain mineral and royalty interests. Divestitures of 2,138 MBOE related primarily to non-core mineral and royalty interests.

During the year ended December 31, 2023, the Company’s total extensions and discoveries of 25,558 MBOE resulted primarily from the drilling of 904 new wells and from 179 new proved undeveloped locations added. The Company’s total positive revisions of previous estimated quantities of 138 MBOE consist of positive revisions of 5,688 MBOE primarily attributable to performance revisions which were largely offset by PUD downgrades of 5,548 MBOE. Total purchases of reserves in place of 18,977 MBOE resulted primarily from the GRP Acquisition and other acquisitions of certain mineral and royalty interests.

Proved Undeveloped Reserves

As of December 31, 2025, the Company’s PUD reserves totaled 46,170 MBbls of oil, 123,983 MMcf of natural gas and 22,499 MBbls of natural gas liquids, for a total of 89,333 MBOE. PUDs will be converted from undeveloped to developed as the applicable wells begin production. The Company’s PUD reserves were from 1,653 horizontal wells, 61% of which are operated by Diamondback. Of the horizontal locations, 424 are Wolfcamp A wells, 415 are Wolfcamp B wells, 298 are Middle Spraberry/Jo Mill wells, 257 are Lower Spraberry wells, 82 are Bone Spring wells, 61 are Wolfcamp D wells, 47 are Dean wells, 46 are Barnett wells, 12 are Wolfcamp XY wells, eight are Wolfcamp C wells and three are Upper Spraberry wells.

The following table includes the changes in PUD reserves for 2025:

MBOE
Beginning proved undeveloped reserves at December 31, 2024
32,009 
Undeveloped reserves transferred to developed(11,848)
Revisions(5,643)
Purchases28,395 
Extensions and discoveries46,420 
Ending proved undeveloped reserves at December 31, 2025
89,333 

The increase in PUD reserves was primarily attributable to positive additions of 46,420 MBOE, primarily from 1,071 new horizontal well locations attributable to extensions resulting from strategic drilling of wells to delineate the Company’s acreage position and acquisitions of 28,395 MBOE. These increases in PUD reserves were partially offset by the conversion of 11,848 MBOE of PUD reserves into proved developed reserves and downward revisions of 5,643 MBOE primarily attributable to PUD downgrades of 4,421 MBOE.

All of the Company’s PUD drilling locations are scheduled to be drilled within five years from the date they were initially recorded. As of December 31, 2025, none of the Company’s total proved reserves were classified as proved developed non-producing.

Standardized Measure of Discounted Future Net Cash Flows

The standardized measure of discounted future net cash flows is based on SEC Prices. The projections should not be viewed as realistic estimates of future cash flows, nor should the “standardized measure” be interpreted as representing current value to the Company. Material revisions to estimates of proved reserves may occur in the future due to development and production of the reserves not occurring in the periods assumed, as well as actual prices realized and actual costs incurred varying significantly from those used in the estimates of proved reserves.
The following table sets forth the standardized measure of discounted future net cash flows attributable to the Company’s proved oil and natural gas reserves as of December 31, 2025, 2024 and 2023:

December 31,
202520242023
(In millions)
Future cash inflows$15,377 $8,323 $8,494 
Future production taxes(1,080)(578)(594)
Future income tax expense(1,389)(749)(935)
Future net cash flows12,908 6,996 6,965 
10% discount to reflect timing of cash flows(6,261)(3,676)(3,778)
Standardized measure of discounted future net cash flows(1)
$6,647 $3,320 $3,187 
(1)Includes a 54%, 48% and 51% non-controlling interest in the Operating Company at December 31, 2025, 2024 and 2023, respectively.

The following table presents the SEC Prices as adjusted for differentials and contractual arrangements utilized in the computation of future cash inflows:

December 31,
202520242023
Oil (per Bbl)$64.80 $75.61 $77.93 
Natural gas (per Mcf)$1.31 $0.49 $1.54 
Natural gas liquids (per Bbl)$18.95 $20.62 $23.79 

Principal changes in the standardized measure of discounted future net cash flows attributable to the Company’s proved reserves are as follows:

Year Ended December 31,
202520242023
(In millions)
Standardized measure of discounted future net cash flows at the beginning of the period$3,320 $3,187 $3,454 
Purchase of minerals in place3,738 355 474 
Divestiture of reserves— (51)— 
Sales of oil and natural gas, net of production costs(1,252)(793)(667)
Extensions and discoveries1,401 640 627 
Net changes in prices and production costs(279)(438)(1,405)
Revisions of previous quantity estimates(374)(85)3 
Net changes in income taxes(370)70 212 
Accretion of discount368 374 428 
Net changes in timing of production and other95 61 61 
Standardized measure of discounted future net cash flows at the end of the period$6,647 $3,320 $3,187