Name: Diamondback Energy Inc. (NASDAQ:FANG) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Diamondback Energy Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Accounts payable, trade	36)	71)	179)	128)	95)
Accrued capital expenditures	295)	186)	475)	495)	221)
Current maturities of long-term debt	45)	191)	—)	—)	—)
Derivative liability payable	101)	30)	3)	—)	—)
Lease operating expenses payable	86)	115)	119)	59)	28)
Ad valorem taxes payable	70)	57)	68)	49)	3)
Accrued compensation	48)	27)	—)	—)	—)
Interest payable	46)	37)	27)	26)	7)
Midstream operating expenses payable	13)	18)	22)	—)	—)
Liability for drilling costs prepaid by joint interest partners	10)	5)	12)	16)	30)
Other	62)	13)	53)	103)	24)
Other accrued liabilities	436)	302)	304)	253)	93)
Revenues and royalties payable	452)	237)	278)	143)	69)
Derivative instruments	174)	249)	27)	—)	100)
Current liabilities	1,438)	1,236)	1,263)	1,020)	577)
Long-term debt, excluding current maturities	6,642)	5,624)	5,371)	4,464)	1,477)
Derivative instruments	29)	57)	—)	15)	6)
Asset retirement obligations	166)	108)	94)	136)	20)
Deferred income taxes	1,338)	783)	1,886)	1,785)	108)
Other long-term liabilities	40)	7)	11)	10)	—)
Long-term liabilities	8,215)	6,579)	7,362)	6,410)	1,612)
Total liabilities	9,653)	7,815)	8,625)	7,429)	2,189)
Common stock, $0.01 par value	2)	2)	2)	2)	1)
Additional paid-in capital	14,084)	12,656)	12,357)	12,936)	5,291)
Retained earnings (accumulated deficit)	(1,998)	(3,864)	890)	762)	(37)
Accumulated other comprehensive income	—)	—)	—)	—)	—)
Total Diamondback Energy, Inc. stockholders’ equity	12,088)	8,794)	13,249)	13,699)	5,255)
Non-controlling interest	1,157)	1,010)	1,657)	467)	327)
Total equity	13,245)	9,804)	14,906)	14,166)	5,582)
Total liabilities and equity	22,898)	17,619)	23,531)	21,596)	7,771)

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 position of Diamondback Energy Inc. between 2017 and 2021 is characterized by a significant expansion of the balance sheet, driven primarily by increased long-term borrowing and fluctuations in stockholders' equity. Total liabilities grew from 2,189 million US dollars in 2017 to 9,653 million US dollars by 2021, representing a substantial increase in the company's total obligations over the five-year period.

Long-Term Debt and Liability Structure: A consistent upward trend is observed in long-term debt, excluding current maturities, which rose from 1,477 million US dollars in 2017 to 6,642 million US dollars in 2021. This indicates a strategic reliance on long-term debt financing to fund operations or acquisitions. Long-term liabilities overall increased from 1,612 million US dollars to 8,215 million US dollars, with long-term debt serving as the primary driver of this growth.
Current Liabilities and Operational Obligations: Current liabilities exhibited a general increase, rising from 577 million US dollars in 2017 to 1,438 million US dollars in 2021. Notable volatility is seen in revenues and royalties payable, which grew from 69 million US dollars in 2017 to a peak of 452 million US dollars in 2021. Accrued capital expenditures also showed fluctuation, peaking in 2018 at 495 million US dollars before settling at 295 million US dollars in 2021.
Equity Dynamics and Retained Earnings: Total equity experienced significant volatility, increasing from 5,582 million US dollars in 2017 to a peak of 14,906 million US dollars in 2019, followed by a sharp decline to 9,804 million US dollars in 2020, and a subsequent recovery to 13,245 million US dollars in 2021. This volatility is most evident in retained earnings, which shifted from a positive 890 million US dollars in 2019 to an accumulated deficit of 3,864 million US dollars in 2020, before improving to a deficit of 1,998 million US dollars in 2021. Additionally, additional paid-in capital grew steadily from 5,291 million US dollars to 14,084 million US dollars, suggesting significant equity infusions over the period.
Other Liability Trends: Asset retirement obligations showed a steady increase from 20 million US dollars in 2017 to 166 million US dollars in 2021, reflecting the growing long-term cost of decommissioning assets. Deferred income taxes were highly volatile, peaking at 1,886 million US dollars in 2019, dropping to 783 million US dollars in 2020, and rebounding to 1,338 million US dollars by 2021.

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