FANG · 10-Q · 2026Q2 · Full report
Operating Expense Trends
Diamondback Energy, Inc. · 2026-08-05 · Importance 54 · Surprise 40 · No source text
Six-month lease operating expense increased to $1.1 billion, or $6.08 per BOE, from $5.29 per BOE in 2025. The increase included $54 million of additional water disposal costs after the Environmental Disposal Systems divestiture, $43 million of prior-period water-cost reductions recorded in 2025, $36 million for wells acquired in the Double Eagle Acquisition, $35 million of higher workover and maintenance costs, and $34 million from higher production. Depreciation, depletion, amortization and accretion increased $202 million to $2.565 billion, although the per-BOE rate declined to $14.19 from $14.74. Other operating expenses decreased primarily because merger and transaction costs fell $72 million and midstream service expense fell $45 million after the Environmental Disposal Systems divestiture.
Key facts
- Lease operating expenses increased in six months ended June 30, 2026 primarily due to a $54 million increase in water disposal costs following the divestiture of Environmental Disposal Systems, LLC in Q4 2025, a $43 million reduction recorded in six months ended June 30, 2025, a $36 million increase to operate wells acquired in the Double Eagle Acquisition, a $35 million increase in workover and maintenance costs, and a $34 million increase attributable to higher production volumes. source
- Lease operating expenses (costs and expenses): $1,099 million (period shown) source
- Purchased oil expense: $1,123 million (period shown) source
- Depreciation, depletion, amortization and accretion: $1,272 million (period shown) source
- Lease operating expenses for the six months ended June 30, 2026: $1,099 million and $6.08 per BOE (compared to $5.29 per BOE in prior year). source
- Lease operating expense per BOE for the three months ended June 30, 2026: $5.96 per BOE (compared to $6.21 per BOE in prior quarter). source
- Gathering, processing and transportation expense per BOE for the three months ended June 30, 2026: $1.22 per BOE (compared to $1.36 per BOE in prior quarter). source
- Gathering, processing and transportation expense per BOE for the six months ended June 30, 2026: $1.29 per BOE (compared to $1.60 per BOE in the same period in 2025). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -22.9% | Depreciation, depletion, amortization and accretion: $1,272 million (period shown) |
| operating_income | negative | realized | -3.6% | Lease operating expenses increased in six months ended June 30, 2026 primarily due to a $54 million increase in water disposal costs… |