Name: Diamondback Energy Inc. (NASDAQ:FANG) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Diamondback Energy Inc., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Oil sales	5,396)	2,410)	3,554)	1,879)	1,044)
Natural gas sales	569)	107)	66)	61)	52)
Natural gas liquid sales	782)	239)	267)	190)	90)
Revenue from contracts with customers	6,747)	2,756)	3,887)	2,130)	1,186)
Midstream services	45)	50)	64)	34)	7)
Other operating income	5)	7)	13)	12)	12)
Revenues	6,797)	2,813)	3,964)	2,176)	1,205)
Lease operating expenses	(565)	(425)	(490)	(205)	(127)
Production and ad valorem taxes	(425)	(195)	(248)	(133)	(74)
Gathering and transportation	(212)	(140)	(88)	(26)	(13)
Midstream services expense	(89)	(105)	(91)	(72)	(10)
Depreciation, depletion, amortization and accretion	(1,275)	(1,311)	(1,454)	(625)	(328)
Impairment of oil and natural gas properties	—)	(6,021)	(790)	—)	—)
General and administrative expenses	(146)	(88)	(104)	(65)	(49)
Merger and integration expense	(78)	—)	—)	(37)	—)
Other operating expense	(6)	(4)	(4)	(3)	—)
Costs and expenses	(2,796)	(8,289)	(3,269)	(1,165)	(600)
Income (loss) from operations	4,001)	(5,476)	695)	1,011)	605)
Interest expense, less capitalized interest	(189)	(195)	(169)	(77)	(39)
Other fees and expenses	(11)	(6)	(4)	(10)	(2)
Interest income	1)	4)	1)	1)	—)
Interest expense, net	(199)	(197)	(172)	(87)	(41)
Other income (expense), net	(10)	(7)	9)	88)	10)
Gain (loss) on derivative instruments, net	(848)	(81)	(108)	101)	(78)
Gain on sale of equity method investments	23)	—)	—)	—)	—)
Loss on extinguishment of debt	(75)	(5)	(56)	—)	—)
Income (loss) from equity investments	15)	(10)	(6)	—)	—)
Other income (expense), net	(1,094)	(300)	(333)	102)	(108)
Income (loss) before income taxes	2,907)	(5,776)	362)	1,113)	497)
(Provision for) benefit from income taxes	(631)	1,104)	(47)	(168)	20)
Net income (loss)	2,276)	(4,672)	315)	945)	517)
Net (income) loss attributable to non-controlling interest	(94)	155)	(75)	(99)	(34)
Net income (loss) attributable to Diamondback Energy, Inc.	2,182)	(4,517)	240)	846)	482)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

The financial performance from 2017 to 2021 is characterized by significant revenue expansion, a severe non-cash impairment event in 2020, and a robust recovery in 2021. Revenue growth was primarily driven by oil sales, which increased from 1,044 million USD in 2017 to 5,396 million USD by 2021, despite a contraction in 2020.

Revenue Dynamics: Total revenues exhibited a strong upward trajectory, rising from 1,205 million USD in 2017 to 6,797 million USD in 2021. While oil sales remained the dominant revenue stream, there was a notable surge in natural gas and natural gas liquid sales in 2021, reaching 569 million USD and 782 million USD, respectively. A temporary decline occurred in 2020, where revenues dropped to 2,813 million USD before rebounding sharply the following year.
Operating Expense Trends: Lease operating expenses and production taxes showed a consistent increase over the five-year period, reflecting expanded production capacity. Depreciation, depletion, amortization, and accretion expenses grew substantially from 328 million USD in 2017 to a peak of 1,454 million USD in 2019, stabilizing thereafter. The most significant impact on costs occurred in 2020, with a non-cash impairment of oil and natural gas properties totaling 6,021 million USD, which resulted in an operating loss of 5,476 million USD for that year.
Financial and Non-Operating Items: Interest expense, net, followed a steady upward trend, increasing from 41 million USD in 2017 to 199 million USD in 2021, indicating an increase in the company's debt obligations. Other income and expenses were highly volatile, largely due to derivative instruments. While 2018 saw a gain of 101 million USD from derivatives, 2021 recorded a substantial loss of 848 million USD, which significantly offset operating gains.
Profitability and Net Income: Net income attributable to the company was positive for four of the five years analyzed. Profitability grew from 482 million USD in 2017 to 846 million USD in 2018, before declining to 240 million USD in 2019. The 2020 impairment led to a substantial net loss of 4,517 million USD. However, a strong recovery was observed in 2021, with net income returning to 2,182 million USD, driven by the surge in commodity prices and revenues.

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