v3.26.1
REVENUE FROM CONTRACTS WITH CUSTOMERS
6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained from third-party purchasers by the operator of the wells in which the Company owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser at the wellhead or at the gas processing facility based on the Company’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Company’s contracts are tied to a market index.
The following tables disaggregate the Company’s revenue from oil, natural gas and natural gas liquids by revenue generated from production on properties operated by Diamondback and revenue generated from production on properties operated by third parties:

Three Months Ended June 30,
20262025
Revenue Generated from Diamondback Operated Properties
Revenue Generated from Third-Party Operated Properties
Total
Revenue Generated from Diamondback Operated Properties
Revenue Generated from Third-Party Operated Properties
Total
(In millions)
Oil income$279 $303 $582 $144 $97 $241 
Natural gas income(3)10 
Natural gas liquids income41 34 75 25 11 36 
Total royalty income$324 $334 $658 $177 $110 $287 
Six Months Ended June 30,
20262025
Revenue Generated from Diamondback Operated Properties
Revenue Generated from Third-Party Operated Properties
Total
Revenue Generated from Diamondback Operated Properties
Revenue Generated from Third-Party Operated Properties
Total
(In millions)
Oil income$487 $523 $1,010 $264 $178 $442 
Natural gas income14 17 17 25 
Natural gas liquids income68 59 127 41 23 64 
Total royalty income$569 $585 $1,154 $322 $209 $531