Diamondback Energy

New or substantially reworded (8)

• • The provision of our certificate of incorporation and bylaws requiring exclusive venue in the Court of Chancery in the State of Delaware for certain types of lawsuits may have the effect of discouraging lawsuits against us and our directors, officers and employees.

• Additionally, U.S. and non‑U.S. derivatives reforms (including the Dodd‑Frank Act) impose clearing, margin and other requirements. Read more

  While we do not expect material direct effects, our counterparties’ compliance could increase our hedging costs, limit instrument availability, and heighten counterparty credit exposure, leading to greater earnings and cash flow volatility. These regulations could also depress commodity prices, further reducing our revenues.

• Our business and results of operations may be adversely affected by uncertainty and changes in U.S. Read more

  trade policies, including tariffs, trade agreements or other trade restrictions imposed by the U.S. or other governments. The recent uncertainty over such policies has caused substantial volatility in commodity, capital and financial markets, increased concerns over domestic and global inflation and adversely impacted consumer confidence in the U.S. and worldwide.

• Tariffs or other trade restrictions may lead to continuing uncertainty and volatility in U.S. Read more

  and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation and diminished expectations for the economy, and ultimately reduced demand for oil and natural gas. Such conditions could have a material adverse impact on our business, results of operations and cash flows. Also, disruptions and volatility in the financial markets may lead to adverse changes in the availability, terms and cost of capital. Such adverse changes could increase our costs of capital and limit our access to external financing sources to fund acquisitions, repurchases of securities or other capital requirements.

• Changes in tariffs and trade restrictions can be announced with little or no advance notice. Read more

  The adoption and expansion of tariffs or other trade restrictions, increasing trade tensions, or other changes in governmental policies related to taxes and tariffs, are difficult to predict, which makes attendant risks difficult to anticipate and mitigate. If we are unable to navigate further changes in U.S. or international trade policy, it could have a material adverse impact on our business and results of operations.

• Our success depends on developing our existing leasehold acreage and finding, developing or acquiring additional reserves.

• On July 4, 2025, the One Big Beautiful Bill Act (the “OBBB”) was signed into law. Read more

  Among other provisions, the OBBB provides for immediate expensing of research or experimental expenses, bonus depreciation for qualified tangible property, deductible intangible drilling costs for purposes of the CAMT, and enhancements to limits on business interest expense deductions. The OBBB also imposes limits on deductibility of charitable contributions by corporations. For 2025, the net effect of the OBBB was to accelerate our tax deductions and thus favorably affect our cash flow, but to the extent that our tax deductions may be limited or deferred by the applicable provisions of the OBBB in future periods, the amount and timing of our cash tax obligations may be adversely affected.

• Additionally, the development, deployment and use of artificial intelligence (“AI”) and machine learning in our operations and those of our service providers and partners could introduce new risks, including increased exposure to cybersecurity threats and social engineering, inadvertent disclosure or misuse of confidential, proprietary or personal information, errors, bias or other unexpected outcomes in AI outputs used for operational decision‑making, and evolving and potentially divergent regulatory requirements that may restrict certain uses of AI or increase compliance costs. AI adoption may require significant investment, specialized talent and access to high‑quality data, and our competitors may adopt AI more effectively than we do. Failures or limitations in AI tools, misuse by employees or third parties, or disruptions or breaches involving AI‑enabled systems could adversely…

No longer in the text (4)

• • Drilling for and producing oil and natural gas are high-risk activities with many uncertainties that may result in a total loss of investment and adversely affect our business, financial condition or results of operations.

• • The significant additional indebtedness incurred in connection with the Endeavor Acquisition may limit our operating or financial flexibility relative to our current position and make it difficult to satisfy our obligations with respect to our other indebtedness.

• • Implementing our capital programs may require, under some circumstances, an increase in our total leverage through additional debt issuances, and any significant reduction in availability under our revolving credit facility or inability to otherwise obtain financing for our capital programs could require us to curtail our capital expenditures.

• Primarily as a result of our Endeavor Acquisition, the Viper Tumbleweed Acquisitions, and the pending Double Eagle Acquisition, if consummated, we expect to increase our fourth quarter 2024 production levels in 2025. Read more

  We cannot reasonably predict whether production levels will remain at current levels or the full extent of the impact of the events above and any subsequent recovery may have on our industry and our business.