FANG · 10-Q · 2026Q3 · Full report

Power Generation Joint Venture

Diamondback Energy, Inc. · 2026-11-04 · Importance 34 · Surprise 42 · In source text

On September 8, 2026, a wholly owned subsidiary formed the Power JV with a third party to pursue power-generation development opportunities; Diamondback contributed pre-funded capital and 1,433 net surface acres for a membership interest. Diamondback’s maximum exposure to potential Power JV losses was limited to its investment at September 30, while additional commitments could be required if independent financing is unavailable. On August 16, 2026, Diamondback formed the Solitude JV with third parties to develop and operate two intrastate natural-gas pipelines from the Permian Basin to Katy, Texas, receiving a 7.5% membership interest.

Key facts

• Diamondback expected to fund future Power JV and Solitude JV capital commitments estimated at approximately $494 million to $944 million in aggregate as of September 30, 2026. source
• Diamondback’s subsidiary entered into a joint venture agreement on September 8, 2026, to form the Power JV for power generation development opportunities, contributing 1,433 acres of net surface acreage for a membership interest whose percentage is omitted in the text. source
• If independent financing is not obtained and utilized by the Power JV, Diamondback has agreed to fund additional capital commitments estimated at approximately $[amount omitted] to $[amount omitted]. source
• Deep Blue has a 15-year dedication for Diamondback’s produced water and supply water within a county area of mutual interest in the Midland Basin. source
• At September 30, 2026, Diamondback’s maximum exposure to potential losses associated with the Power JV was limited to its investment of approximately $[amount omitted]. source

Impact estimates