FANG · 10-Q · 2026Q3 · Full report

Oil and Gas Property Impairment

Diamondback Energy, Inc. · 2026-11-04 · Importance 46 · Surprise 42 · Matches filing data

Diamondback recorded approximately $1.4 billion of oil and natural gas property impairment during the nine months ended September 30, 2026, although no ceiling-test impairment was recorded in the third quarter. The company says future ceiling-test calculations depend partly on commodity prices, production rates, proved reserves and future development costs. It warns that declines in trailing-month commodity prices compared with prices used in prior quarters could result in material write-downs in subsequent quarters.

Key facts

• Diamondback recorded $1,400 million of impairment of oil and natural gas properties for the nine months ended September 30, 2026, compared with none in the same period in 2025. source
• Diamondback recorded approximately $1.4 billion of property impairment during the nine months ended September 30, 2026, and no ceiling-test impairment for the three months ended September 30, 2026. source
• Diamondback recorded a non-cash ceiling test impairment charge of $1.4 billion for the nine months ended September 30, 2026, during Q1 2026, primarily due to declining SEC Prices in the preceding twelve-month period ended March 31, 2026. source
• Diamondback warned that lower trailing 12-month commodity prices versus current-quarter prices could cause material write-downs in subsequent quarters, but it did not expect additional asset impairment in Q4 2026. source
• Diamondback recorded no impairment expense for the three or nine months ended September 30, 2025. source
• Future declines in trailing-month commodity prices compared with prices used in prior quarters could result in material property write-downs in subsequent quarters. source
• Diamondback's lower depletion rate reflected a reduced depletable asset base following ceiling test impairments in Q4 2025 and Q1 2026. source

Impact estimates