Diamondback Energy - 1792 Exchange

Rating Overview

Diamondback Energy is Medium Risk.

Diamondback Energy, Inc. is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company elevates merit, excellence, and integrity ahead of race and identity-based policies. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	Medium Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	Lower Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Diamondback Energy integrates ESG into all of its business practices, “t[ying] executive compensation to performance on [its] environmental, social and governance (ESG) targets” (1). However, the company has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Diamondback Energy does not discriminate against charitable organizations based on views or beliefs. It “match[es] [its] employees’ donations to registered nonprofit organizations” (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

Medium

Rationale:

Diamondback Energy appears to prioritize diversity over merit in its leadership composition. From its Nominating and Corporate Governance Committee Charter: “The Committee shall: seek to include diverse candidates in all director searches, taking into account diversity, inclusive of gender, race, ethnicity, background, age, thought and tenure on the Board (in connection with the consideration of the renomination of an existing director), including by affirmatively instructing any search firm retained to assist the Committee in identifying candidates for the Board to seek to include diverse candidates from traditional and nontraditional candidate groups” (1). Diamondback Energy protects its employees against viewpoint discrimination (2).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Diamondback Energy’s CEO Kaes Van’t Hof is a member of the Business Roundtable, which supports stakeholder capitalism over traditional shareholder obligations (1). Diamondback Energy is committed to achieving net zero emissions by 2050 (2). The company supports ESG within its business practices. From its Sustainability webpage: “We embrace our role in providing the safest, cleanest barrels of oil possible and continue to adapt our work processes to succeed in the new energy economy. We have taken a number of significant steps on our path to being an industry leader on ESG matters. We have included specific, measurable environmental and safety performance metrics in our short-term incentive compensation program that incentivize performance on key metrics, including flaring, GHG emissions, recycled water usage, fluid spill control and safety” (3). Diamondback Energy also supports DEI within its business practices. From its 2026 Annual Report: “We believe our ability to retain talent is supported by our corporate culture, which emphasizes diversity and inclusion, teamwork and a strong commitment to employee development and career advancement” (4). Otherwise, there are no publicly known cases of the company using its reputation to advance ideological causes or policies (5).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

Lower

Rationale:

Diamondback Energy has not used corporate funds to advance ideological causes, organizations, or policies (1)(2).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

Diamondback Energy has not used its PAC donations for ideological purposes and has not reported on its lobbying (1)(2)(3).