Analysis of Reportable Segments
Diamondback Energy Inc. operates in 2 segments: Upstream and Midstream operations.
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value (EV)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2012
- Operating Profit Margin since 2012
- Total Asset Turnover since 2012
- Price to Sales (P/S) since 2012
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Segment Profit Margin
Diamondback Energy Inc., profit margin by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations |
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 upstream segment profit margin of the company demonstrates significant volatility over the reviewed periods. Initially, the margin was relatively stable, declining slightly from 51.17% at the end of 2017 to 50.23% in 2018. However, there was a substantial decrease to 20.3% in 2019, followed by a drastic negative margin of -201.81% in 2020. This indicates a severe loss in profitability for the upstream segment during 2020. In 2021, the segment recovered strongly, with the profit margin rebounding to 57.49%, surpassing the levels observed in earlier years.
The midstream operations segment exhibits a more consistent and stable profit margin throughout the periods. Starting at 61.54% in 2017, the margin decreased to 43.48% in 2018 and showed minor fluctuations thereafter, remaining within a narrow range between approximately 42.76% and 48.88% from 2019 to 2021. This stability suggests relative resilience and steadier performance compared to the upstream segment, despite a minor downward trend.
- Upstream Segment Profit Margin
- Stable in 2017-2018 around 50%.
- Significant decline beginning in 2019, with dramatic negative margin in 2020.
- Strong recovery in 2021, surpassing initial values in 2017-2018.
- Midstream Operations Profit Margin
- High and steady profitability throughout the period.
- Initial peak in 2017 at over 61%, followed by a drop to about 43-49% in subsequent years.
- Relatively stable with minor fluctuations from 2018 to 2021.
Overall, the midstream segment displays a stable profit margin, indicating consistent operational efficiency or market conditions. In contrast, the upstream segment is marked by extreme volatility, reflecting significant challenges especially in 2020, but also a notable rebound thereafter. This divergence highlights differing risk profiles and operational dynamics between the two segments over the analyzed timeframe.
Segment Profit Margin: Upstream
Diamondback Energy Inc.; Upstream; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenues
= 100 × ÷ =
The analysis of the annual upstream segment data over the five-year period reveals several notable trends and fluctuations in the company's financial performance.
- Income (loss) from operations
- From 2017 to 2019, the income from operations exhibited an overall upward trend, increasing from $613 million in 2017 to a peak of $1,071 million in 2018, before slightly declining to $790 million in 2019. However, there was a significant downturn in 2020, with the segment recording a substantial loss of $5,562 million. This negative performance was reversed in 2021, with income rebounding to a positive $3,879 million, indicating a strong recovery from the prior year's losses.
- Revenues
- Revenues showed consistent growth from 2017 through 2019, more than tripling from $1,198 million in 2017 to $3,891 million in 2019. The year 2020 saw a decline to $2,756 million, representing a decrease of approximately 29% from the prior year. In 2021, revenues sharply increased to $6,747 million, nearly doubling the previous year's figure and surpassing the revenue levels seen in earlier years.
- Segment profit margin
- The profit margin followed a pattern generally consistent with income and revenue trends. It remained strong and relatively stable in 2017 and 2018 at around 50%, but dropped significantly in 2019 to 20.3%. The margin turned sharply negative in 2020 to -201.81%, reflecting the large operating loss during that year. The segment profit margin then rebounded strongly in 2021 to 57.49%, surpassing prior years and signaling improved operational efficiency and profitability.
Overall, the data indicate a period of growth and profitability through 2018, followed by a severe disruption in 2020 that adversely affected both revenues and profitability. The subsequent recovery in 2021 suggests a positive turnaround in the segment's financial health, driven by higher revenues and restored profit margins. This volatility may reflect external market conditions or operational challenges experienced during the downturn period.
Segment Profit Margin: Midstream operations
Diamondback Energy Inc.; Midstream operations; segment profit margin calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2021 Calculation
Segment profit margin = 100 × Income (loss) from operations ÷ Revenues
= 100 × ÷ =
- Income (loss) from operations
- The income from operations demonstrated a significant upward trend from 2017 to 2019, increasing from 24 million US dollars to 219 million US dollars, reflecting substantial operational growth. However, in 2020 and 2021, the income slightly declined to 182 million US dollars and 180 million US dollars respectively, indicating a stabilization with a modest reduction following the previous expansion.
- Revenues
- Revenues from midstream operations showed a consistent and pronounced increase from 39 million US dollars in 2017 to a peak of 448 million US dollars in 2019. After this peak, revenues decreased marginally but remained relatively high, with 424 million US dollars in 2020 and 421 million US dollars in 2021. This suggests a strong revenue base that experienced a minor contraction post-2019.
- Segment profit margin
- The segment profit margin experienced a decline overall during the period assessed. Starting at 61.54% in 2017, it dropped significantly to 43.48% in 2018. While there was a slight recovery to 48.88% in 2019, the margin decreased again in the following years, settling at roughly 42.9% in 2020 and 42.76% in 2021. This trend indicates increasing pressure on profitability relative to revenues despite the growth in absolute income and revenues.
- Overall analysis
- The segment displayed robust growth in both income from operations and revenues from 2017 through 2019, highlighting successful expansion. However, from 2020 onwards, both income and revenues slightly decreased, suggesting market or operational challenges. The declining segment profit margin throughout the period points to potential increases in costs or pricing pressures, impacting efficiency or profitability despite revenue strength. Continuous monitoring of cost management and pricing strategy may be advisable to sustain profitability.
Segment Return on Assets (Segment ROA)
Diamondback Energy Inc., ROA by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations |
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 Return on Assets (ROA) for the upstream segment exhibited significant variability over the analyzed period. Initially, the ROA started at a positive 8.2% at the end of 2017. This figure declined steadily over the next two years, falling to 5.08% in 2018 and further to 3.57% in 2019, indicating a diminishing efficiency in asset utilization within this segment. A pronounced negative ROA of -34.49% was observed in 2020, suggesting a substantial loss or impairment impacting asset returns during that year. However, a strong recovery took place in 2021, with ROA rebounding sharply to 18.19%, surpassing the levels seen at the start of the period.
In contrast, the midstream operations segment displayed a generally stable and positive ROA throughout the same timeframe. Beginning at 8.00% in 2017, the ROA increased to 13.25% in 2018 and slightly improved to 13.39% in 2019, reflecting enhanced asset performance. Although a mild decline was noted in 2020 to 10.06%, the segment maintained positive returns. In 2021, the ROA further decreased marginally to 9.27% but remained within a strong positive range compared to earlier years, indicating consistent operational efficiency within midstream activities despite some fluctuations.
Overall, the upstream segment experienced considerable volatility, culminating in a significant downturn in 2020 followed by a robust recovery in 2021. Conversely, the midstream segment showed relative resilience with sustained positive returns and moderate fluctuations. This divergence may reflect differing operational dynamics and risk exposures inherent to the two segments over the five-year period.
Segment ROA: Upstream
Diamondback Energy Inc.; Upstream; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2021 Calculation
Segment ROA = 100 × Income (loss) from operations ÷ Total assets
= 100 × ÷ =
The financial data reveals significant volatility and shifts in the "Upstream" segment performance over the five-year period ending December 31, 2021.
- Income (Loss) from Operations
- The segment showed an initial increase in operating income from $613 million in 2017 to $1,071 million in 2018, followed by a decrease to $790 million in 2019. A sharp and substantial loss occurred in 2020 with an operating loss of $5,562 million, indicating a severe downturn. However, the segment recovered in 2021, achieving an operating income of $3,879 million, indicating a strong rebound.
- Total Assets
- Total assets more than doubled from $7,475 million in 2017 to $21,096 million in 2018, and then showed a modest increase to $22,125 million in 2019. Assets decreased to $16,128 million in 2020, a notable contraction during the year of operating losses, before increasing again to $21,329 million in 2021. This pattern suggests significant asset revaluation or possible divestitures in 2020 followed by asset acquisition or valuation recovery in 2021.
- Segment Return on Assets (ROA)
- The segment ROA declined from 8.2% in 2017 to 5.08% in 2018 and further to 3.57% in 2019, reflecting declining operational efficiency or profitability relative to assets. In 2020, the ROA dropped sharply to -34.49%, consistent with the significant operating loss and reduced asset base. The ROA dramatically improved in 2021 to 18.19%, indicating enhanced profitability and asset utilization during the recovery phase.
Overall, the data points to a period of growth and expansion from 2017 through 2019, followed by a marked downturn in 2020 likely driven by adverse market or operational conditions. The significant losses and asset base reduction in 2020 were largely reversed by 2021, as reflected in the restoration of positive operating income and robust return on assets. This pattern underscores a high level of volatility in this segment, possibly influenced by external market factors and internal management of assets and operations.
Segment ROA: Midstream operations
Diamondback Energy Inc.; Midstream operations; segment ROA calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Total assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
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).
1 2021 Calculation
Segment ROA = 100 × Income (loss) from operations ÷ Total assets
= 100 × ÷ =
- Income (loss) from operations
- The income from operations exhibited a substantial increase from 24 million USD in 2017 to 219 million USD in 2019, indicating significant operational growth within the midstream segment during this period. However, there was a decline following 2019, with income decreasing to 182 million USD in 2020 and slightly further to 180 million USD in 2021, suggesting a reduction in profitability or operational efficiency in the latter years.
- Total assets
- Total assets showed a consistent upward trajectory over the five-year span. From 300 million USD at the end of 2017, assets more than doubled to 604 million USD in 2018, then nearly tripled again to 1,636 million USD in 2019. Growth continued but at a slower rate, reaching 1,809 million USD in 2020 and 1,942 million USD in 2021. This indicates sustained investment or asset accumulation within the segment, potentially supporting operational capacity expansion.
- Segment Return on Assets (ROA)
- The segment ROA improved notably from 8% in 2017 to approximately 13.4% in 2019, demonstrating increased efficiency in generating returns from assets during this period. Following this peak, ROA declined to around 10.1% in 2020 and further to 9.3% in 2021, reflecting a decrease in asset profitability despite continued growth in total assets.
- Summary of trends
- Overall, the midstream segment showed robust operational growth and asset expansion from 2017 through 2019, accompanied by improving profitability metrics. Post-2019, income from operations and ROA declined, suggesting challenges in maintaining previous levels of efficiency and profitability despite increased asset base. This may indicate external market pressures, operational challenges, or the impact of strategic investments not yet yielding proportional returns.
Segment Asset Turnover
Diamondback Energy Inc., asset turnover by reportable segment
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations |
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).
- Upstream Asset Turnover
- The upstream segment exhibited a fluctuating trend over the five-year period. The ratio began at 0.16 in 2017, declined to a low of 0.10 in 2018, and then increased again to 0.18 in 2019. In 2020, it slightly decreased to 0.17, followed by a notable jump to 0.32 in 2021. This indicates a general recovery and growth in asset utilization efficiency in the upstream segment, especially significant in the final year measured.
- Midstream Operations Asset Turnover
- The midstream segment displayed an initial strong increase from 0.13 in 2017 to 0.30 in 2018, more than doubling in one year. However, after reaching this peak, a gradual decline occurred, with ratios dropping to 0.27 in 2019, 0.23 in 2020, and further to 0.22 in 2021. Although asset turnover remains above the starting point from 2017, this downward trend suggests a reduction in the efficiency of asset use in midstream operations following the initial spike.
- Overall Observations
- While the upstream segment saw an overall upward trajectory in asset turnover with volatility in the middle years, the midstream operations experienced a sharp peak followed by a consistent decline. The divergence in these two segments’ asset turnover ratios may point to differing operational challenges or capital allocation strategies affecting asset efficiency differently over time.
Segment Asset Turnover: Upstream
Diamondback Energy Inc.; Upstream; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2021 Calculation
Segment asset turnover = Revenues ÷ Total assets
= ÷ =
The analysis of the annual upstream segment data reveals distinct trends across the observed periods from 2017 to 2021. Revenues exhibit substantial growth overall, with an initial increase from 1,198 million US dollars in 2017 to 3,891 million US dollars in 2019. Despite a decline in 2020 to 2,756 million US dollars, revenues sharply rebound in 2021, reaching 6,747 million US dollars, the highest value in the series.
Total assets display considerable fluctuations within the timeframe. Starting at 7,475 million US dollars in 2017, total assets expand dramatically in 2018 and 2019, reaching approximately 21,096 million and 22,125 million US dollars, respectively. However, in 2020, total assets decrease to 16,128 million US dollars before increasing again to 21,329 million US dollars in 2021, suggesting possible asset disposals or impairments followed by subsequent asset accumulation or revaluation.
The segment asset turnover ratio, which is an indicator of efficiency in utilizing assets to generate revenue, shows variabilities aligning with changes in both revenues and total assets. The ratio declines from 0.16 in 2017 to a low of 0.1 in 2018, despite increases in revenue, reflecting a disproportionate growth in assets relative to revenues. It then improves moderately to 0.18 in 2019 and remains relatively stable at 0.17 in 2020, before increasing significantly to 0.32 in 2021. The substantial improvement in 2021 suggests more effective asset utilization, coinciding with the highest revenue level recorded in the period.
In summary, the segment has undergone a phase of aggressive asset expansion in the early years, with revenues initially following but then dipping in 2020 likely due to external factors impacting demand or operations. Asset efficiency, as captured by asset turnover, has varied but shows marked improvement in 2021 along with revenue recovery, indicating enhanced operational performance and asset management in the most recent period.
Segment Asset Turnover: Midstream operations
Diamondback Energy Inc.; Midstream operations; segment asset turnover calculation
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Total assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
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).
1 2021 Calculation
Segment asset turnover = Revenues ÷ Total assets
= ÷ =
The analysis of the annual data for the Midstream operations reveals several notable trends in the financial performance and asset utilization over the five-year period.
- Revenues
- The revenues exhibited significant growth from US$39 million in 2017 to US$448 million in 2019, demonstrating a rapid expansion phase in the first three years. Following this peak, revenues slightly declined to US$424 million in 2020 and remained relatively stable at US$421 million in 2021. This pattern suggests that while the segment achieved substantial revenue growth initially, it faced challenges in maintaining this momentum beyond 2019.
- Total Assets
- The total assets almost consistently increased throughout the period, beginning at US$300 million in 2017 and rising sharply to US$1,636 million by 2019. This upward trend continued more moderately to US$1,809 million in 2020 and US$1,942 million in 2021. The steady growth in asset base indicates ongoing investments or acquisitions in the midstream segment, likely aimed at supporting operational capacity and future revenue opportunities.
- Segment Asset Turnover
- The segment asset turnover ratio, which measures efficiency in using assets to generate revenues, showed a rising trend from 0.13 in 2017 to a peak of 0.30 in 2018, reflecting improved asset utilization during the early growth phase. However, the ratio then declined over the subsequent years to 0.27 in 2019, 0.23 in 2020, and 0.22 in 2021. This declining trend corresponds with the stabilization and slight decrease in revenues despite increasing assets, suggesting a reduced efficiency in asset deployment or potentially the impact of underused or newly acquired assets not yet fully contributing to revenue.
In summary, the Midstream operations experienced rapid revenue and asset growth initially, coupled with enhanced asset utilization efficiency. However, as asset expansion continued beyond 2018, revenue growth plateaued and asset turnover declined, indicating challenges in maintaining revenue growth proportionate to asset increases and a decrease in operational efficiency over the latter part of the period.
Revenues
Diamondback Energy Inc., revenues by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations | |||||
| Eliminations | |||||
| Total |
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).
- Upstream Segment Revenues
- The upstream segment revenues demonstrate a generally increasing trend from 2017 through 2021. Starting at 1,198 million US dollars in 2017, the revenues rose significantly to 2,132 million US dollars in 2018 and continued their upward trajectory to reach 3,891 million US dollars in 2019. A decline is observed in 2020, with revenues falling to 2,756 million US dollars. However, the segment rebounded strongly in 2021, achieving its highest reported revenue of 6,747 million US dollars over the five-year period.
- Midstream Operations Revenues
- Revenues from midstream operations exhibit substantial growth from 2017 to 2019, increasing from 39 million US dollars in 2017 to 184 million in 2018 and further to 448 million in 2019. The revenue slightly declined in 2020 to 424 million US dollars and remained relatively stable in 2021, reporting 421 million US dollars. This indicates a rapid expansion phase followed by stabilization.
- Eliminations
- Eliminations, recorded as negative values, reflect intersegment adjustments that reduce total reported revenue. These deductions increased in magnitude from -32 million US dollars in 2017 to -375 million US dollars in 2019, indicating larger intra-company transactions or reconciliations during this period. Following 2019, eliminations decreased slightly in absolute terms to -367 million in 2020 and -371 million in 2021, suggesting some moderation in these adjustments.
- Total Revenues
- Total revenues closely mirror the trends observed in the upstream segment, as expected due to its dominant contribution to overall revenue. Total revenues increased substantially from 1,205 million US dollars in 2017 to 3,964 million in 2019. A decline occurred in 2020, bringing total revenue down to 2,813 million US dollars, followed by a robust recovery in 2021 with total revenues reaching 6,797 million US dollars, the highest level reported in this timeframe.
Income (loss) from operations
Diamondback Energy Inc., income (loss) from operations by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations | |||||
| Eliminations | |||||
| Total |
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).
- Upstream Segment Income (Loss) Analysis
- From 2017 to 2018, there was a significant increase in income from $613 million to $1,071 million, indicating strong operational performance or favorable market conditions. In 2019, income declined to $790 million, suggesting some challenges or decreased profitability. The trend reversed drastically in 2020, with the segment experiencing a substantial loss of $5,562 million, likely due to adverse market events or operational disruptions. In 2021, the segment returned to profitability with an income of $3,879 million, reflecting a strong recovery.
- Midstream Operations Income Analysis
- The midstream segment shows a consistent upward trend from 2017 to 2019, increasing from $24 million to $219 million. This growth suggests expanding operations or increased demand for midstream services. Although there was a decrease in 2020 to $182 million, the income remained relatively high compared to earlier years. In 2021, the income was $180 million, essentially stable compared to 2020, indicating a stabilization of midstream segment performance amid challenging conditions.
- Eliminations
- The elimination values are negative throughout the period, reflecting inter-segment transactions being removed in consolidation. The magnitude of eliminations increased from -$32 million in 2017 to -$314 million in 2019, then decreased to -$96 million in 2020 and further to -$58 million in 2021. These variations may indicate changing inter-segment activity levels or adjustments related to internal transfers.
- Total Income (Loss) from Operations
- Total income increased from $605 million in 2017 to $1,011 million in 2018, followed by a decline to $695 million in 2019. The total then shifted dramatically to a loss of $5,476 million in 2020, driven primarily by the upstream segment's significant downturn. In 2021, the total income recovered to $4,001 million, reflecting the upstream segment's rebound and stable midstream performance. This pattern suggests overall volatility with a significant operational setback in 2020, followed by a strong recovery the subsequent year.
Total assets
Diamondback Energy Inc., total assets by reportable segment
US$ in millions
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | |
|---|---|---|---|---|---|
| Upstream | |||||
| Midstream operations | |||||
| Eliminations | |||||
| Total |
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 analysis of the annual reportable segment total assets reveals several notable trends over the five-year period from 2017 to 2021.
- Upstream Segment
- The total assets in the Upstream segment demonstrated a significant increase from 2017 to 2019, rising from 7,475 million US dollars to 22,125 million US dollars. This growth represents nearly a threefold increase within two years. However, this was followed by a noticeable decline in 2020, with assets decreasing to 16,128 million US dollars, before rebounding to 21,329 million US dollars in 2021. The pattern suggests a period of strong investment or acquisition activity up to 2019, followed by a contraction possibly related to external factors in 2020, and then a recovery phase in 2021.
- Midstream Operations Segment
- The Midstream operations segment exhibited steady growth throughout the entire period. Starting from 300 million US dollars in 2017, assets more than doubled by 2018, and continued increasing to 1,636 million US dollars in 2019. The upward trend persisted with more moderate gains in 2020 and 2021, reaching 1,942 million US dollars. This consistent growth suggests ongoing investment or asset additions in midstream activities, reflecting a possible strategic emphasis on this segment.
- Eliminations
- The eliminations category, representing inter-segment eliminations, showed increasing negative values over time, from -4 million US dollars in 2017 to -373 million US dollars in 2021. The growing negative elimination values imply an expansion in intersegment transactions or internal adjustments, which could correspond with the rising asset bases in the upstream and midstream segments.
- Total Assets
- Total consolidated assets mirrored the general trends of the segments, increasing from 7,771 million US dollars in 2017 to a peak of 23,531 million US dollars in 2019. A decline followed in 2020 to 17,619 million US dollars, then a recovery to 22,898 million US dollars in 2021. The aggregate data corroborate the observed segmental patterns of rapid growth followed by a temporary contraction and subsequent recovery.
Overall, the data indicate that the company experienced a phase of significant asset growth from 2017 through 2019 across both upstream and midstream segments. The downturn in 2020 appears to reflect either strategic asset reduction or external economic impacts. Subsequently, asset levels showed a recovery trend in 2021, particularly pronounced in the upstream segment. The persistent growth in midstream assets suggests a sustained strategic focus, while the increasing magnitude of eliminations aligns with the expansion in segment assets.