FANG · 10-Q · 2026Q3 · Full report

Operating Expense Trends

Diamondback Energy, Inc. · 2026-11-04 · Importance 53 · Surprise 48

Lease operating expenses rose $329 million to $1.667 billion for the first nine months of 2026, while expense per BOE increased from $5.42 to $6.04.

Key facts

• Diamondback lease operating expenses increased year over year due in part to $97 million higher water disposal costs after the Q4 2025 divestiture of Environmental Disposal Systems, LLC, $81 million higher workover and maintenance activity, and $55 million from higher production volumes. source
• Diamondback's nine-month depletion increase of $256 million year over year reflected $414 million from production growth, partly offset by a $158 million reduction from a lower depletion rate. source
• Diamondback's nine-month other operating expenses decreased year over year, primarily including an $86 million reduction in merger and transaction costs and a $71 million decrease in midstream service expense after the Q4 2025 divestiture of Environmental Disposal Systems, LLC. source
• Diamondback’s third-quarter 2026 cash operating costs were $10.91 per BOE, including lease operating expenses of $5.97 per BOE, cash general and administrative expenses of $0.60 per BOE, production and ad valorem taxes of $3.02 per BOE, and gathering, processing and transportation expenses of $1.32 per BOE. source
• Diamondback's nine-month lease operating expenses also included a $34 million increase to operate Double Eagle-acquired wells. source
• Diamondback's depletion of proved oil and natural gas properties rose $50 million in Q3 2026 versus Q2, consisting of $34 million from higher production and $16 million from a slight increase in depletion rate. source
• Diamondback's Q3 2026 lease operating expenses increased versus Q2 2026 primarily due to higher production volumes and more well workovers. source
• Diamondback's Q3 2026 gathering, processing, and transportation expense increased versus Q2 2026 primarily because of greater utilization of arrangements requiring gross presentation as expense. source