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Core Viewpoint - Diamondback Energy, Inc. (FANG) has entered into an agreement to sell Environmental Disposal Systems, LLC (EDS) to Deep Blue Midland Basin LLC for approximately $750 million, which will significantly enhance Deep Blue's water management capacity in the Midland Basin [1][10]. Transaction Details - FANG is expected to receive about $675 million in upfront cash, with the potential for an additional $200 million based on performance through 2028 [2][10]. - FANG will retain a 30% equity stake in Deep Blue, ensuring ongoing strategic alignment and collaboration [2][7]. Infrastructure Expansion - The acquisition will allow Deep Blue to manage water services across 12 key counties, with the capacity to treat and recycle 1.2 million barrels of water per day, gather 1.6 million barrels per day, and dispose of 3.4 million barrels per day [3][4]. - The infrastructure includes 1,871 miles of pipeline and covers 783,000 dedicated acres, facilitating efficient water collection, treatment, recycling, and disposal [4][10]. Sustainability Focus - Deep Blue's strategy emphasizes sustainability by integrating treatment, recycling, and disposal processes to minimize environmental impact in oil and gas operations [5][15]. - The reuse of produced water for hydraulic fracturing is expected to reduce freshwater consumption and lower the carbon footprint of upstream development [5][15]. Leadership and Strategic Commitment - Scott Mitchell, CEO of Deep Blue, stated that the transaction will enhance its footprint and accelerate water management optimization in the Midland Basin [6]. - Kaes Van't Hof, CEO of Diamondback, highlighted that the deal will create value while maintaining a strong partnership with Deep Blue, allowing FANG to focus on core operations [8]. Growth Potential - Since its formation in 2023, Deep Blue has quickly become the largest independent water infrastructure platform in the Midland Basin, with the acquisition of EDS expected to further enhance operational reliability and integrated water services [13][14]. - The growing demand for reliable and sustainable water management solutions in the Permian Basin positions Deep Blue as a key enabler of upstream development while prioritizing environmental responsibility [14][15].

点击查看更多企业ESG评级。 来源：ESG评级中心 据新浪财经ESG评级中心，2025年09月03日，Diamondback Energy（FANG.US）MSCI（明晟）ESG评 级由AA调降至A。 ...

The company wasn't quite a gusher, as investors reevaluated its prospects after an analyst's move.Following along with an analyst's price target reduction, investors became slightly less bullish on Diamondback Energy's (FANG -5.05%) future on Hump Day. They traded out of the stock to leave it with a more than 5% loss that session. Other stocks did better, as the S&P 500 index closed with a 0.5% increase.A $4 haircutThat morning, prognosticator Tim Rezvan, with KeyCorp's KeyBanc Capital Markets, made the mov ...

Company Performance - Diamondback Energy reported Q2 2025 adjusted earnings per share of $2.67, beating the Zacks Consensus Estimate of $2.63, driven by higher production and lower cash operating costs, although down from $4.52 a year ago due to a 20% decrease in average realized oil price [3] - Revenues reached $3.7 billion, a 48.1% increase year-over-year, and exceeded the Zacks Consensus Estimate by 11.8% [4] - The company returned $691 million to shareholders, approximately 52% of its adjusted free cash flow, through share repurchases and dividends [4][5] Production and Pricing - Average production was 919,879 BOE/d, up 94% year-over-year, with oil comprising 54% of total production, surpassing estimates [6] - The average realized oil price was $63.23 per barrel, 20% lower than the previous year but above the estimate of $60.50 [7] - Average realized natural gas price increased significantly to $0.88 per thousand cubic feet from $0.10 a year ago, exceeding the estimate of $0.55 [7] Costs and Financial Position - Cash operating costs decreased to $10.10 per BOE from $11.67 a year ago, reflecting lower lease operating expenses [8] - Gathering, processing, and transportation expenses fell 9% year-over-year to $1.73 per BOE, while cash G&A expenses decreased to $0.55 from $0.63 [9] - Capital expenditures totaled $864 million, with $1.3 billion in adjusted free cash flow recorded for the quarter [10] Financial Health - As of June 30, the company had approximately $219 million in cash and cash equivalents and $15.1 billion in long-term debt, resulting in a debt-to-capitalization ratio of 26.1% [11] Market Sentiment and Outlook - Since the earnings release, there has been a downward trend in fresh estimates, with a consensus estimate shift of -10.17% [12] - Diamondback has a subpar Growth Score of D and a Momentum Score of F, but a Value Score of B, placing it in the top 40% for value investment strategy [13] - The overall outlook indicates a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [14] Industry Comparison - Diamondback operates within the Zacks Oil and Gas - Exploration and Production - United States industry, where competitor Matador Resources has gained 7.1% over the past month [15] - Matador reported revenues of $895.31 million, a year-over-year increase of 5.7%, with an EPS of $1.53 compared to $2.05 a year ago [16]

Viper Energy, Inc. (NASDAQ: VNOM ), a Delaware corporation, aggregates minerals and royalty interests from both Diamondback Energy, Inc. ( FANG ) and third parties. In January 2025, Viper acquired royalty and interests from Diamondback Energy (including some associated with Endeavor Energy Resources afterLaura Starks is the founder and CEO of Starks Energy Economics, LLC (since 2007). She has a degree in chemical engineering and an MBA with a concentration in finance which she has used for many years to inv ...

Key Takeaways Diamondback will divest its 27.5% EPIC Crude stake to Plains for over $596 million.The deal includes $500M upfront cash plus $96M contingent on capacity expansion approval.Diamondback remains an anchor shipper on EPIC Crude, preserving Permian logistics support.Diamondback Energy, Inc. (FANG) , a leading independent oil and natural gas company, recently announced the execution of a definitive agreement through its wholly owned subsidiaries to divest the 27.5% equity stake in EPIC Crude Holding ...

Diamondback and Five Point solidify Deep Blue’s leadership as the Midland Basin’s largest independent water infrastructure platform Acquisition doubles Deep Blue’s scale, unlocks compelling operational and commercial synergies across integrated platform MIDLAND, Texas, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Deep Blue Midland Basin LLC (“Deep Blue”), Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) and Five Point Infrastructure LLC (“Five Point”) today announced an agreement for Deep Blue to acquire Envir ...

MIDLAND, Texas, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”) today announced that its wholly owned subsidiaries have entered into a definitive agreement to sell their 27.5% equity interest in EPIC Crude Holdings, LP (“EPIC Crude”), an affiliate of EPIC Midstream Holdings LP, to a wholly owned subsidiary of Plains All American Pipeline, L.P. and Plains GP Holdings (collectively “Plains”) for approximately $500 million in net upfront cash and an additional $96 mil ...

Group 1 - The core viewpoint of the articles indicates that the U.S. oil and gas industry is entering a merger and acquisition (M&A) boom in 2024, with a projected total M&A value of $206.6 billion, representing a 331% year-on-year increase [1] - The number of leading publicly listed exploration and production (E&P) companies in the U.S. has decreased from 50 to 40, yet these 40 companies contribute approximately 41% of the nation's oil and gas production, highlighting a trend of "the strong getting stronger" [1] - In 2024, 42% of the M&A budget will be allocated to undeveloped reserves, a significant increase from 18% in 2023, indicating a strategic shift towards securing high-quality drilling locations for long-term production potential [1] Group 2 - The exploration and development costs have decreased by 7% year-on-year, despite the ongoing M&A activity, and the industry's reserve replacement rate remains above 100%, demonstrating the effectiveness of the new model of achieving reserve growth through M&A while reducing traditional exploration investments [2] - Following the M&A boom, U.S. oil and gas companies are focusing on addressing various uncertainties in the macro environment, with operational efficiency and capital discipline becoming critical for success [2] - The M&A activity is expected to slow significantly by the second quarter of 2025 due to the scarcity of quality targets, forcing buyers to diversify into non-core areas [2]