Diamondback Energy, Inc. current report, 30 August 2013

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Business Context and Reporting Period

This Form 8-K Current Report was filed by Diamondback Energy, Inc. on August 30, 2013. The filing discloses the entry into a material definitive agreement regarding the company's credit facilities.

Key Financial Metrics

The filing text does not provide specific values for revenue, profit, cash flow, margins, debt balances, or liquidity ratios. The report focuses exclusively on the amendment of credit agreement terms rather than financial performance results.

Material Changes

On August 30, 2013, the company entered into a Third Amendment to its Amended and Restated Credit Agreement (originally dated July 24, 2012). The primary material change is the modification of provisions that restrict the company's ability to enter into commodities and interest rate swap agreements.

Outlook, Risks, and Management Commentary

  • Agreement Details: The amendment involves Diamondback Energy, Inc. as parent guarantor, Diamondback O&G LLC (formerly Windsor Permian LLC) as borrower, various guarantors and lenders, and Wells Fargo Bank, National Association as administrative agent.
  • Related Party Transactions: Wells Fargo Bank, N.A. and certain other lenders may provide financial advisory, investment banking, and commercial banking services to the company for customary fees. Additionally, Wells Fargo is the counterparty to price swap derivatives used by the company to reduce oil price volatility.
  • Reference: The summary is qualified by reference to the full text of the Third Amendment attached as Exhibit 10.1.

Investor Verification Checklist

  • Review Exhibit 10.1 to understand the specific new restrictions or permissions regarding commodities and interest rate swaps.
  • Verify the total outstanding debt and liquidity position in the most recent 10-Q or 10-K, as this 8-K does not contain those figures.
  • Assess the exposure to Wells Fargo Bank, N.A. as both a lender and a counterparty to hedging derivatives.
  • Confirm the impact of the amendment on the company's ability to hedge against future oil price volatility.