FANG · 10-Q · 2026Q2 · Full report

Interest Rate Environment

Diamondback Energy, Inc. · 2026-08-05 · Importance 73 · Surprise 66

On June 12, 2026, Diamondback amended its Credit Agreement to extend maturity by one year to June 12, 2031, increase revolving commitments from $2.5 billion to $3.0 billion, and decrease applicable borrowing rates and fees. Borrowings bear interest based on term SOFR or an alternate base rate plus margins of 1.000% to 1.625% for term SOFR loans and 0.000% to 0.625% for alternate-base-rate loans. The Company had no borrowings and approximately $3.0 billion of availability under the facility at June 30, 2026; average borrowing rates declined to 4.90% from 5.65% year over year for the quarter and to 4.94% from 5.70% for the six-month period.

Key facts

• Interest expense, net for the six months ended June 30, 2026: $(119) million (compared to $(96) million for the six months ended June 30, 2025); interest expense increased by $23 million primarily due to $32 million decrease in capitalized interest, $18 million net increase related to Viper note issuances and redemptions, and $15 million increase attributable to 2035 Notes issued in April 2025, partially offset by $50 million reduction from debt retirements. source
• Interest expense, net for the three months ended June 30, 2026: $(56) million (compared to $(63) million for the three months ended March 31, 2026). source
• The weighted average interest rates on borrowings under the Revolving Credit Facility during the three months ended June 30, 2026 and 2025 were 4.90% and 5.65%, respectively, and were 4.94% and 5.70% during the six months ended June 30, 2026 and 2025, respectively. source
• The weighted average interest rates on the Viper Revolving Credit Facility were 5.12% and 6.33% during the three months ended June 30, 2026 and 2025, respectively, and were 5.16% and 6.42% during the six months ended June 30, 2026 and 2025, respectively. source