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# Diamondback Owes Up To $944 Million More For A Power Venture And A Gas Pipeline Stake
- URL: https://www.bullished.co/diamondback-owes-up-to-944-million-more-for-a-power-venture-and-a-gas-pipeline-stake-5d9d77c9/
- Published: 2026-11-04T21:16:19.000Z
- Updated: 2026-11-04T21:16:19.000Z
- Description: Up to $700 million of the $494 million to $944 million tied to the new ventures hinges on whether the power project finds outside financing.
- Author: Matteo Parrino
- Tags: SEC Filings, FANG, Industry: Energy

[Diamondback Energy](https://www.bullished.co/tag/fang/), which explores for and produces oil and natural gas in the Permian Basin, expects to fund [$494 million to $944 million](https://www.sec.gov/Archives/edgar/data/0001539838/000153983826000183/fang-20260930.htm?ref=bullished.co) of future commitments tied to two new joint ventures, a power-generation project and a natural gas pipeline, its quarterly report filed Wednesday says. The power venture alone could call for up to $700 million if it cannot raise independent financing.

## A power venture with a financing trigger

A Diamondback subsidiary partnered with an outside company on September 8, 2026, to develop power generation. For a 35% membership interest, the company contributed about $78 million in pre-funded capital and 1,433 acres of surface land valued at about $22 million.

Its maximum loss exposure at September 30 was its investment of about $100 million. If the venture does not obtain and use independent financing, Diamondback has agreed to fund additional capital it estimates at roughly $250 million to $700 million.

Separately, the company signed a fixed-price contract to buy electrical power from 2028 through 2034\. It expects about $519 million of power costs through 2034 under it: about $28 million in 2028, $132 million cumulatively across 2029 and 2030, and $359 million cumulatively across 2031 through 2034.

## A stake in a Permian-to-Katy pipeline

The second venture, formed August 16, 2026, is meant to build and operate a pair of large intrastate gas lines linking the Permian Basin with Katy, Texas. Diamondback received a [7.5% interest](https://oilprice.com/Company-News/Diamondback-Energy-Raises-Dividend-and-2026-Oil-Production-Outlook.html?ref=bullished.co) and funded $25 million during the third quarter. Its maximum loss exposure, counting unfunded commitments, is about $269 million.

Both ventures are booked under the equity method, meaning the company does not control them and carries its stake in Other assets. That line stood at $951 million at September 30, against $523 million at year-end.

## Cash calls meet near-term maturities

The company reported about $1.5 billion of senior notes maturing within the next 12 months. It held about $3.5 billion of liquidity at September 30, made up of $548 million in standalone cash and $3.0 billion available under its credit facility.

On its subsidiary Viper, which owns mineral and royalty interests, revolver borrowings stood at $810 million, against [$95 million](https://www.sec.gov/Archives/edgar/data/0001539838/000153983826000142/fang-20260630.htm?ref=bullished.co) at the end of June. Viper's McElroy Ranch purchase of about $529 million, in September, was funded partly with those borrowings.

The company's board also approved raising 2026 capital spending guidance to about [$3.95 billion to $4.00 billion](https://oilprice.com/Company-News/Diamondback-Energy-Raises-Dividend-and-2026-Oil-Production-Outlook.html?ref=bullished.co), 6% above the midpoint of initial guidance. In October the company retired about $893 million of senior notes for about $889 million in cash, and on October 29 it raised its annual base dividend to $4.72 a share.

Whether the power venture secures outside financing determines if the $250 million to $700 million is called; the fiscal-year annual report will update the figures.

### Sources

- [10-Q Filing — Diamondback Energy (FANG)](https://www.sec.gov/Archives/edgar/data/0001539838/000153983826000183/fang-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Diamondback Energy (FANG), Q2 FY2026 filed 2026-08-05 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001539838/000153983826000142/fang-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, diamondbackex991-11x2x26.htm) — Diamondback Energy, filed 2026-11-02](https://www.sec.gov/Archives/edgar/data/0001539838/000153983826000180/diamondbackex991-11x2x26.htm?ref=bullished.co) — SEC EDGAR
- [Diamondback Q3 Earnings Beat on Higher Oil Prices and Production](https://finance.yahoo.com/energy/articles/diamondback-q3-earnings-beat-higher-134700228.html?ref=bullished.co) — Yahoo Finance
- [Diamondback Bets on Permian Becoming Biggest US Gas Play | Rigzone](https://www.rigzone.com/news/diamondback%5Fbets%5Fon%5Fpermian%5Fbecoming%5Fbiggest%5Fus%5Fgas%5Fplay-03-nov-2026-184999-article/?ref=bullished.co) — rigzone.com
- [Diamondback Energy Raises Dividend and 2026 Oil Production Outlook | OilPrice.com](https://oilprice.com/Company-News/Diamondback-Energy-Raises-Dividend-and-2026-Oil-Production-Outlook.html?ref=bullished.co) — oilprice.com
- [Diamondback: Q3 Earnings Snapshot](https://finance.yahoo.com/markets/stocks/articles/diamondback-q3-earnings-snapshot-043144476.html?ref=bullished.co) — Associated Press
- [Diamondback Energy (FANG) Beats Q3 Earnings and Revenue Estimates](https://finance.yahoo.com/energy/articles/diamondback-energy-fang-beats-q3-212502558.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance

### More on Diamondback Energy

- [Diamondback CEO Says Its Chemical Oil Recovery Push Is At The 'First Pitch'](https://www.bullished.co/diamondback-ceo-says-its-chemical-oil-recovery-push-is-at-the-first-pitch-e054a39f/)
- [Diamondback Lifts Annual Base Dividend 7.3% To $4.72 As Quarterly Profit Hits $1.603 Billion](https://www.bullished.co/diamondback-lifts-annual-base-dividend-7-3-to-4-72-as-quarterly-profit-hits-1-603-billion-e00696e8/)
- [Diamondback's Hedges Cost It $1.41 A Barrel On Third-Quarter Oil, 8-K Shows](https://www.bullished.co/diamondbacks-hedges-cost-it-1-41-a-barrel-on-third-quarter-oil-8-k-shows-abdee8ad/)

[All Diamondback Energy (FANG) coverage →](https://www.bullished.co/tag/fang/)