NewzIntel.com

Category: Justice

  • MIL-OSI Security: PEI RCMP Headquarters  — RCMP analyze fatal crashes and find 3 leading contributors

    Source: Royal Canadian Mounted Police

    November 4, 2024, RCMP HQ -PEI RCMP recently conducted an analysis of the leading contributing factor of fatal collisions on PEI in RCMP Jurisdiction. Between January 1st 2019 and October 31st, 2024 there have been 68 fatal collisions resulting in 80 lives lost.

    The leading contributing factors of the PEI fatal collision are:

    1. Not wearing a seatbelt (35% of fatal collisions)
    2. Impaired driving (34% of fatal collisions)
    3. Speed (26% of fatal collisions)

    Note that these are cases when causation could be determined. It is possible that the actual percentages could be higher.

    Impaired driving is attributed to 23 of the 80 lives lost.

    The PEI RCMP work closely with the PEI Justice and Public Safety who have recognized that impaired driving, speeding and lack of seatbelt use has continued to be a problem on the Island. In the last 4 years, Justice and Public Safety has funded 4 additional Traffic Services positions for the RCMP, bringing our team up to 6 Traffic officers.

    RCMP stopped 16 impaired drivers in October; this includes impaired drivers by alcohol (9), drug (5), and those who refuse a police test demand (2). Note that many of these cases are awaiting blood sample results prior to charges being laid. The total arrests by RCMP so far in 2024 now stands at 212, last year RCMP in PEI made over 230 impaired driving arrests.

    “Recent data on fatal collisions in PEI underscores the reality that many of these fatalities are preventable. This report highlights the importance of slowing down, reporting impaired drivers and wearing your seatbelt. Through education and enforcement, we hope to reduce these tragedies,” says Chief Superintendent Kevin Lewis, Commanding Officer of the Prince Edward Island RCMP.

    Note to Media:

    • The RCMP Report on Road Fatalities is available upon request.
    • There has been one additional road fatality since this report was authored.
    • All data is for PEI RCMP Jurisdiction ONLY.

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  • MIL-OSI Security: Winston County Man Sentenced to More Than 15 Years for Possessing Methamphetamine with Intent to Distribute

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    GREENVILLE, Miss. – Dennis Vernandale Phillips, 42, was sentenced today to over 15 years in prison for his possession of methamphetamine with the intent to distribute the controlled substance.

    The investigation began when law enforcement purchased over 30 grams of methamphetamine from Phillips using a confidential informant. During a subsequent search of Phillips’ residence in Preston, Mississippi, officers located methamphetamine, two firearms, and other narcotics. In total, Phillips’ conduct involved over a kilogram of methamphetamine that impacted the Choctaw Indian Reservation in Winston, Kemper, and Neshoba counties.

    On October 30, Chief U.S. District Court Judge Debra M. Brown sentenced Phillips to 188 months imprisonment followed by a 48-month term of supervised release for possessing the methamphetamine with intent to distribute.

    “Meth indiscriminately kills children, men and women and it ravages our communities, including the Choctaw Indian Reservation,” said U.S. Attorney Clay Joyner. “This prosecution and sentence are the result of outstanding cooperation between our federal law enforcement partners and the tribal police to achieve a straightforward goal – to reduce the supply of illicit drugs while seeing to it that those who poison communities with narcotics are held to account.”

    Phillips’ drug distribution was a threat to the community,” said Whitney Woodruff, Regional Agent in Charge of the Southeast Region for the Division of Drug Enforcement with the Bureau of Indian Affairs. “He was poisoning Indian Country for his personal gain and now he will pay the price.  I am proud of our partnerships with the other law enforcement agencies involved.” 

    The Bureau of Indian Affairs investigated the case in partnership with the Choctaw Police Criminal Investigations Division, the Mississippi Bureau of Narcotics, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

    Assistant U.S. Attorney Julie Howell Addison prosecuted the case.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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  • MIL-OSI Security: FBI Prioritizes Election Security in Preparation for November 5 Voting

    Source: Federal Bureau of Investigation (FBI) State Crime News

    In keeping with our standard Election Day protocol, the FBI in Tennessee will have an Election Command Post in preparation for the November 5 election. The command post will be staffed 24 hours a day to provide a centralized location for assessing election-related threats in our area of responsibility. The FBI has a duty to plan for a host of potential scenarios related to election fraud, voter suppression, foreign malign influence, malicious cyber activity against election infrastructure, and threats to election workers. We are committed to protecting the American public’s right to a fair and safe election.

    For decades, the FBI has served as the primary agency responsible for investigating allegations of federal election crimes, including campaign finance violations, ballot/voter fraud, and civil rights violations. In close partnership with the Department of Justice (DOJ), the FBI established the Election Threats Task Force to identify and address reported threats targeting election workers.

    The FBI takes our responsibility very seriously and works closely with our federal, state, and local partners to identify and stop any potential threats to public safety. We gather and analyze intelligence to determine whether individuals might be motivated to take violent action for any reason, including due to concerns about the election.

    It is vital the FBI, our law enforcement partners, and the public work together to protect our communities as Americans exercise their right to vote. We encourage the public to remain vigilant and immediately report any suspicious activity to law enforcement. The FBI takes all threats of violence seriously, including threats targeting those who do the critical work of administering free and fair elections throughout the U.S.

    The Justice Department has long recognized that the states—not the federal government—are responsible for administering elections, determining the validity of votes, and tabulating the results, with challenges handled by the appropriate election administrators, officials, legislatures, and courts. The Department’s role is limited to investigating and prosecuting violations of federal election laws and deterring criminal conduct.

    The FBI in Tennessee encourages citizens to report allegations of election fraud and other election abuses directly at 615-232-7500.

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  • MIL-OSI Security: Harbour Grace — RCMP Traffic Services East arrests prohibited driver for impaired operation in Carbonear

    Source: Royal Canadian Mounted Police

    A 58-year-old man, who has a lifetime driving prohibition, was arrested by RCMP Traffic Services East for impaired driving on November 1, 2024, in Carbonear.

    Shortly after 10:00 a.m. on Friday, police attempted to stop a vehicle on Adelaide Street. The driver fled from police and was located a short time later after he got his vehicle stuck in a field on Mahaney’s Lane.

    The driver showed signs of impairment and was arrested. At the detachment, he refused to provide breath samples.

    He will appear in court at a later date to answer to charges of prohibited driving, impaired operation and refusing a breath demand. The driver was also ticketed for having no registration or insurance. The vehicle was seized and impounded.

    RCMP NL continues to fulfill its mandate to protect public safety, enforce the law, and ensure the delivery of priority policing services in Newfoundland and Labrador.

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  • MIL-OSI Security: Lower Sackville — RCMP charge a man involved in home invasion

    Source: Royal Canadian Mounted Police

    RCMP Halifax Regional Detachment has charged a man involved in a home invasion that occurred in Lower Sackville.

    On November 3, at approximately 5:45 p.m., RCMP officers responded to a report of a disturbance at a residence on Balsam Circle.

    Investigators learned that a man armed with a knife had gained entry into the home through the front door and proceeded to assault a male resident located in a bedroom. The victim, a 73-year-old Lower Sackville man, suffered serious injuries and was transported to hospital by EHS.

    No other injuries were reported by the three other adult occupants of the home.

    At the scene, RCMP officers located and safely arrested an 18-year-old man involved in the incident.

    The two men are known to one another and investigators believe the incident was targeted in nature.

    Devon Rafuse, of Halifax, has been charged with Possession of a Weapon for a Dangerous Purpose, Breaking and Entering with Intent and Aggravated Assault. He was held in custody and will appear in Dartmouth Provincial Court today.

    File #: 24-151248

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  • MIL-OSI Security: Bellair Man Indicted For Covid Loan Fraud Using Deceased Former Business Partner’s Identity

    Source: United States Department of Justice (National Center for Disaster Fraud)

    Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Stephen L. Gurba (68, Belleair) with wire fraud, making a false statement to a financial institution, and aggravated identity theft. If convicted, Gurba faces a maximum penalty of 20 years in prison on each count of wire fraud (2 counts), 30 years in prison on the false statement count, and a 2-year mandatory term of imprisonment on the aggravated identity theft counts (2 counts). The indictment also notifies Gurba that the United States intends to forfeit approximately $1.2 million, which is alleged to be traceable to proceeds of the offenses.

    According to court documents, between March and June 2020, Gurba submitted false and fraudulent Economic Injury Disaster Loan (EIDL) applications and supporting documentation on behalf of Big Red Express Trucking, LLC and Zenith Express, LLC. To obtain approval and funding for the Big Red and Zenith EIDL loans, Gurba fraudulently assumed the identity of his former business partner who passed away in 2019, listed his former business partner’s name, signature, and other means of identification on the EIDL loan applications certifying under criminal penalty that the applications were true and correct. Gurba also used his deceased business partner’s name and forged his signature on the EIDL loan authorization agreements and loan notes he submitted to the Small Business Administration (SBA). During post-loan related communications with the SBA, Gurba continued to impersonate his deceased business partner. As a result of his fraudulent scheme, Gurba induced the SBA to approve and fund the Big Red and Zenith EIDL loans.

    Additionally, Gurba applied for a Paycheck Protection Program (PPP) loan on behalf a Big Red from an SBA authorized financial institution. Gurba certified and signed under criminal penalty that all the PPP loan proceeds would be spent on payroll, mortgages, rent, or other SBA authorized expenses. In reality, Gurba used the majority of the PPP proceeds to enrich himself, family members, payoff unrelated business debts, and other impermissible expenses. As a result of Gurba’s false statement, the financial institution approved and funded a $955,448.75 PPP loan to Big Red.

    An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

    This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Small Business Association – Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Chris Poor.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/CombatingFraud.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

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  • MIL-OSI Security: Mason City Woman Sentenced to Over Three Years in Federal Prison for Being a Drug User in Possession of Firearms

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    A drug user who possessed firearms was sentenced November 1, 2024, to 37 months in federal prison.

    Brittany Graham, age 37, of Mason City, Iowa, received the sentence after a June 3, 2024, guilty plea to one count of being a prohibited person in possession of firearms.  At the plea hearing, Graham admitted that, in August 2022, she possessed four handguns while she was an unlawful user of marijuana.  The evidence at sentencing showed that Graham had possessed seven handguns since 2018.  Other prohibited persons later possessed some of these guns, including a .357 magnum revolver that was seized from a felon in Chicago less than seven months after Graham purchased it.

    Graham was sentenced in Sioux City by United States District Court Judge Leonard T. Strand.  Graham was sentenced to 37 months’ imprisonment.  She must also serve a two-year term of supervised release after the prison term.  There is no parole in the federal system.   

    This case was brought as part of Project Safe Neighborhoods (PSN).  PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

    This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason City Police Department, the Cerro Gordo County Sheriff’s Office, and the Iowa Division of Criminal Investigation.

    Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.  The case file number is CR 23-3014.

    Follow us on Twitter @USAO_NDIA.

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  • MIL-OSI Security: Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related Sanctions

    Source: United States Attorneys General 1

    Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.

    “As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”

    “This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.  We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”

    Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.

    According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.

    Homeland Security Investigations Washington D.C. is investigating the case.

    Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Clarenville — Clarenville RCMP investigates fatal collision on TCH west of Clarenville

    Source: Royal Canadian Mounted Police

    A 53-year-old man is deceased following a collision that occurred on the Trans-Canada Highway (TCH) near Clarenville on November 1, 2024.

    Shortly before 1:45 p.m. on Friday, Clarenville RCMP received and responded to the report of a head-on collision involving a car and a commercial gravel truck that occurred on the TCH approximately six kilometers west of Clarenville. Upon arrival, officers located the lone occupant of the car, who had been ejected from the vehicle and died at the scene. The driver of the gravel truck was transported to Dr. G.B Cross Memorial Hospital in Clarenville for treatment of minor injuries.

    A Collision Analyst with RCMP Traffic Services attended the scene, along with RCMP officers from Clarenville detachment, Traffic Services and Police Dog Services.

    The TCH was impassable for a number of hours. The Office of the Chief Medical Examiner is engaged and the investigation is continuing.

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  • MIL-OSI New Zealand: New information revealed relating to 1980 homicide Cold Case

    Source: New Zealand Police (National News)

    Auckland Police investigating the 1980 homicide of Simon Buis are encouraging people to come forward with information, after revealing new details on last night’s Cold Case TV episode.

    In the early hours of Friday 4 April 1980, 54-year-old Simon Buis was found dead in Auckland’s Gribllehirst Park outside the rugby club. He suffered horrific injuries to his face and head after being violently assaulted.

    Later that morning, two 15-year-olds were arrested for being in a stolen car, and indicated they were involved in a fight at a park. The pair were charged with Simon’s murder, however due to further review of evidence, they were released six days later.

    Over 40 years later, the investigation into Simon’s murder, named Operation Intrigue, remains open. And Police are determined to find the person or persons responsible for killing the 54-year-old father.

    Detective Inspector Scott Beard of Auckland City CIB has been in charge of Operation Intrigue since 2006 and believes the key to this case relies on knowing Simon’s movements in the last hour of his life.

    “We know Simon started his evening at the Leopard Tavern in Freeman’s Bay, where he then made his way to La Cava Lounge on Customs Street East. Here, he interacted with at least three different groups of people.

    “Simon then called a taxi from La Cava and was dropped off on Symonds Street around 2.25am on the Friday morning.”

    Around 30 minutes later, a couple heard screaming followed by the sound of a noisy car coming from Gribblehirst Park in Sandringham and called 111.

    “The key pieces of information we are missing is why Simon went to Gribblehirst Park, how he got there, and who he was with. We believe it is unlikely that Simon walked the distance in the timeframe between the taxi dropping him off on Symonds Street and Police arriving to find his body in the park.”

    Police have spoken to a number of witnesses who were in Gribblehirst Park earlier in the evening, including the couple who called 111.

    The husband described seeing a light coloured Mark 1 Ford Zephyr, or possibly a large 1950’s American car, with a noisy exhaust and rounded body leave the park at speed.

    Two to three minutes later, a second vehicle, possibly a yellow FJ Holden, left the park in the same direction.

    “These cars remain critical to our investigation, and we know there are people who have not yet spoken to Police who may have seen what happened or have information about the events around Simon’s death. These details and fresh information will help us get the answers we need to provide some closure for Simon’s family.

    “This was a serious and horrific assault which led to a man’s death, and Simon’s family continue to grieve for their loving father and friend.”

    If you have any information that could help Police’s investigation into Simon Buis’ death, please contact Police.

    “Now is the time to come forward, it is not too late to provide Simon’s family with answers.”

    Information can be provided to the Operation Intrigue Investigation team on 0800 COLD CASE or 0800 2653 2273.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News –

  • MIL-OSI Security: Narcotics and Loaded Glock .40 Used in Shooting Get Wilmington Career Offender 16 Years in Federal Prison

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    WILMINGTON, N.C. – Desmond Antonio Hines, also known as “Head,” has been sentenced to 196 months after the 35-year-old was found guilty by a federal jury for illegal possession of a firearm, which ballistics showed was used in a shooting two months earlier.  Hines was sentenced for gun and drug charges and considered a career offender based on prior convictions for drug trafficking and assault, including a prior federal drug conviction.

    “Neighbors called 911 when they saw Hines ditch his loaded Glock .40 in a patch of the azaleas as he tried to dodge police.  Ballistics traced the gun to a recent shootout that left a popular area rapper dead,” said U.S. Attorney Michael F. Easley, Jr.  “A celebration of life for the rapper was shot up weeks later, leaving two men, a teen, and a 6-year-old boy shot.  Hines was just a small part the escalating patterns of crime and violence claiming far too many lives.  But neighbors have had enough.  And when neighbors start talking, the shooting starts stopping.”

    According to court records and evidence presented in court, on November 7, 2020, Wilmington Police stopped Hines for traffic violations. Upon approaching the car, the officer noticed an odor of marijuana and asked Hines to step out of the vehicle to conduct a search. A blunt and marijuana were found in the car and, during the search of Hines, the officer felt what he believed to be a metal object between the defendant’s legs. While the officer attempted to secure Hines in handcuffs, he tried to flee but was tackled by the officer. A subsequent search of Hines conducted at the police station uncovered a bag containing ten oxycodone pills and about 17 grams of crack cocaine. 

    On March 31, 2022, detectives attempted to arrest Hines on federal charges related to the November 7 incident. Officers surveilled him driving a new Chrysler minivan. During surveillance, officers lost sight of Hines after he made a series of evasive maneuvers. After officers located Hines and placed him into custody, 911 dispatch reported a call from area residents who saw a man matching Hines’ description and driving a minivan stop the vehicle, walk to a patch of azalea bushes, and toss something into the bushes before driving off. Upon pulling back the bushes, witnesses saw a firearm. When police responded to the scene, which was approximately half a mile from where Hines was arrested, they recovered a semi-automatic Glock 27 Gen 4 .40 caliber handgun with an extended magazine containing 20 live rounds of ammunition. Ten of those rounds were a distinctive, red-tipped round known as Hornady Critical Defense.  When executing a search warrant at the defendant’s residence, detectives found a box of the same ammunition, with ten rounds missing. Later, testing of the firearm confirmed that Hines’ DNA was present.  Ballistics traced the gun to the scene of a shootout two months earlier that left a man dead.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and U.S. Attorney Michael Easley and Assistant U.S. Attorney Erin Blondel prosecuted the case.

    The conviction is a result of the ongoing Violent Crime Action Plan (VCAP), a collaborative effort of local, state, and federal law enforcement agencies working with the community to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, interagency coordination, and intelligence-led policing.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:22-cr-36-M.

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  • MIL-OSI Security: PDS Gang Member Pleads Guilty to Drug Distribution

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

                WASHINGTON – Dartanyan Ricardo Hawkins, 29, of Washington D.C., pleaded guilty today in connection with a drug trafficking conspiracy that distributed large quantities of marijuana in the District of Columbia.

                The plea was announced by U.S. Attorney Matthew M. Graves; FBI Special Agent David Geist of the Washington Field Office’s Criminal and Cyber Division; Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Division; and Chief Pamela Smith of the Metropolitan Police Department (MPD).

                Hawkins, aka “Shitty,” was a member of the Push Dat Shit (PDS) and Jugg Gang (JG) street crews. He pleaded guilty today before U.S. District Judge Amy Berman Jackson to distribution and possession with intent to distribute more than 100 kilograms (220 pounds) of marijuana. Hawkins faces a mandatory minimum sentence of five years in prison. A sentencing hearing is set for March 7, 2025.

                As part of his plea, Hawkins admitted to possessing a firearm as part of the offense and further admitted to using Instagram to sell marijuana. According to court documents, PDS maintained gang territory in the 3300 – 3500 blocks of Wheeler Road, Southeast and operated an open-air drug market outside a market at 3509 Wheeler Road, Southeast. In August 2018, PDS allied with a neighboring street gang known as Jugg Gang, or “JG,” that included Hawkins. The combined gang also conspired to use, carry, and possess firearms – including machine guns – to protect themselves, their drugs, their cash, and their territory from rival crews with whom PDS had “beefs.”

                This plea is part of an ongoing joint investigation which has now resulted in 23 convictions and the seizure of two vehicles, 35 firearms, four machine guns, more than 1,000 rounds of ammunition, approximately 60 pounds of marijuana, 41 grams of cocaine base, dozens of oxycodone pills, and approximately $500,000 in cash.

                The case was investigated by the FBI’s Washington Field Office, the ATF’s Washington Field Division, and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorneys James B. Nelson and Justin F. Song and Paralegal Specialist Melissa Macechko.

    Hawkins after his arrest on March 11, 2023, on the 2700 block of Shipleley Terrace, Southeast. 

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  • MIL-OSI Security: U.S. Attorney Announces District Election Officer for 2024 General Election

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    LAS VEGAS – United States Attorney Jason M. Frierson announced today that Assistant United States Attorney (AUSA) Daniel R. Schiess will lead the efforts for the District of Nevada in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Schiess has been appointed to serve as the District Election Officer (DEO) for the District of Nevada, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    United States Attorney Frierson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

    The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    United States Attorney Frierson stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Schiess will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 702-388-6336.”

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 702-385-1281.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

    United States Attorney Frierson said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

    Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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  • MIL-OSI Security: Sarasota Man Sentenced To Nine Years For Possessing A Firearm And Ammunition As A Convicted Felon

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced John Lewis (34, Sarasota) to nine years in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Lewis to forfeit a HS Produkt (a/k/a “IM Metal”) 9mm model XDS pistol and assorted ammunition, which are traceable to proceeds of the offense. Lewis entered a guilty plea on August 6, 2024.

    According to court documents, at approximately 2 a.m. on November 30, 2023, a deputy with the Sarasota County Sheriff’s Office observed an SUV being driven by Lewis run a red light while traveling more than 100 mph. Despite running over stop sticks deployed by law enforcement, Lewis continued driving recklessly at a high rate of speed. Lewis then lost control of the SUV while going over the south bridge near the Isle of Venice and crashed, coming to a stop in the middle of the bridge. Lewis then fled from the SUV and jumped off the bridge, losing a sandal in the process. Lewis landed on the Venetian Waterway Trail instead of in the Venetian Waterway and continued to flee from law enforcement despite sustaining injuries from the impact. A matching sandal and a black semi-automatic firearm containing four rounds of live ammunition were located on the Venetian Waterway Trail and Lewis was located nearby in a shed. Forensic testing further corroborated Lewis’s possession of the firearm.

    Lewis has previously been convicted of multiple felonies, including aggravated assault with a deadly weapon, possession of a weapon or ammunition by a juvenile delinquent, aggravated battery with a deadly weapon, false imprisonment, grand theft of a firearm, possession of cocaine, interference with child custody, and fleeing or attempting to elude. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, the Venice Police Department, and the North Port Police Department. It was prosecuted by Assistant United States Attorney Brooke M. Padgett.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI: Volta Finance Limited – Director/PDMR Shareholding

    Source: GlobeNewswire (MIL-OSI)

    Volta Finance Limited (VTA/VTAS)

    Notification of transactions by directors, persons discharging managerial
    responsibilities and persons closely associated with them

    NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES

    *****
    Guernsey, 4 November 2024

    Pursuant to the announcements made on 5 April 2019 and 26 June 2020 relating to changes to the payment of directors fees, Volta Finance Limited (the “Company” or “Volta”) has purchased 3,403 ordinary shares of no par value in the Company (“Ordinary Shares”) at an average price of €5.5 per share.

    Each director receives 30% of their Director’s fees for any year in the form of shares, which they are required to retain for a period of no less than one year from their respective date of issue.

    The shares will be issued to the Directors, who for the purposes of Regulation (EU) No 596/2014 on Market Abuse (“MAR“) are “persons discharging managerial responsibilities” (a “PDMR“).

    • Dagmar Kershaw, Chairman and a PDMR for the purposes of MAR, acquired 1,047 additional Ordinary Shares in the Company. Following the settlement of this transaction, Ms Kershaw will have an interest in 13,885 Ordinary Shares, representing 0.04% of the issued shares of the Company;
    • Stephen Le Page, Director and a PDMR for the purposes of MAR, acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mr Le Page will have an interest in 51,295 Ordinary Shares, representing 0.14% of the issued shares of the Company;
    • Yedau Ogoundele, Director and a PDMR for the purposes of MAR acquired 733 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Ogoundele will have an interest in 7,595 Ordinary Shares, representing 0.02% of the issued shares of the Company; and
    • Joanne Peacegood, Director and a PDMR for the purposes of MAR acquired 890 additional Ordinary Shares in the Company. Following the settlement of this transaction, Mrs Peacegood will have an interest in 4,395 Ordinary Shares, representing 0.01% of the issued shares of the Company;

    The notifications below, made in accordance with the requirements of MAR, provide further detail in relation to the above transactions:

    1. Details of the person discharging managerial responsibilities / person closely associated
    a)   Dagmar Kershaw
    CHAIRMAN & DIRECTOR      		 b) Stephen Le Page
    DIRECTOR    		   c) Yedau Ogoundele
    DIRECTOR    		 d) Joanne Peacegood
    DIRECTOR
    1. Reason for the notification
    a. Position/status Director
    b. Initial notification/Amendment Initial notification
    1. Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor
    a. Name Volta Finance Limited
    b. LEI 2138004N6QDNAZ2V3W80
    1. Details of the transaction(s): section to be repeated for (i) each type of instrument; (ii) each type of transaction; (iii) each date; and (iv) each place where transactions have been conducted
    a. Description of financial instrument, type of instrument Ordinary Shares
    b. Identification code GG00B1GHHH78
    c. Nature of the transaction Purchase and allocation of Ordinary Shares relation to the part-payment of Directors’ fees for the quarter ended 31 October 2024
    d. Price(s) €5.5 per share
    e. Volume(s) Total: 3,403
    f. Date of transaction 1 November 2024
    g. Place of transaction On-market – London
    1. Aggregate Purchase Information
    a)
    Dagmar Kershaw
    Chairman and Director    		 b)
    Stephen Le Page
    Director    		   c)
    Yedau Ogoundele
    Director    		 d)
    Joanne Peacegood
    Director
    Aggr. Volume:
    1,047

    Price:
    €5.5per share

    		 Aggr. Volume:
    733

    Price:
    €5.5 per share

    		   Aggr. Volume:
    733

    Price:
    €5.5 per share

    		 Aggr. Volume:
    890

    Price:
    €5.5 per share

    CONTACTS

    For the Investment Manager
    AXA Investment Managers Paris
    François Touati
    francois.touati@axa-im.com
    +33 (0) 1 44 45 80 22

    Olivier Pons
    Olivier.pons@axa-im.com
    +33 (0) 1 44 45 87 30

    Company Secretary and Administrator
    BNP Paribas S.A, Guernsey Branch
    guernsey.bp2s.volta.cosec@bnpparibas.com 
    +44 (0) 1481 750 853

    Corporate Broker
    Cavendish Securities plc
    Andrew Worne
    Daniel Balabanoff
    +44 (0) 20 7397 8900

    *****
    ABOUT VOLTA FINANCE LIMITED

    Volta Finance Limited is incorporated in Guernsey under the Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the London Stock Exchange’s Main Market for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to regulation and supervision by the AFM, being the regulator for financial markets in the Netherlands.

    Volta’s Investment objectives are to preserve its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. The Company currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. The Company has appointed AXA Investment Managers Paris an investment management company with a division specialised in structured credit, for the investment management of all its assets.

    *****

    ABOUT AXA INVESTMENT MANAGERS
    AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management as of the end of December 2023.  

    *****

    This press release is published by AXA Investment Managers Paris (“AXA IM”), in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (the “Volta Finance”) whose portfolio is managed by AXA IM.

    This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in breach of such limitations or restrictions. This document is not an offer for sale of the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such offer would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration from the Securities Act. Volta Finance does not intend to register any portion of the offer of such securities in the United States or to conduct a public offering of such securities in the United States.

    *****

    This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Past performance cannot be relied on as a guide to future performance.

    *****
    This press release contains statements that are, or may deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “anticipated”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finance’s actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. AXA IM does not undertake any obligation to publicly update or revise forward-looking statements.

    Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.

    The figures provided that relate to past months or years and past performance cannot be relied on as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of the investment methodologies and philosophies of Volta Finance, as implemented by AXA IM. The historical success or AXA IM’s belief in the future success, of any of these trades or strategies is not indicative of, and has no bearing on, future results.

    The valuation of financial assets can vary significantly from the prices that the AXA IM could obtain if it sought to liquidate the positions on behalf of the Volta Finance due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such.

    Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by the Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.

    *****

    The MIL Network –

  • MIL-OSI Canada: Employment and Social Development Canada launches a new life event hub to better support Canadians experiencing loss

    Source: Government of Canada News (2)

    News release

    November 4, 2024              Ottawa, Ontario              Employment and Social Development Canada

    It is a priority for the Government of Canada to help Canadians deal with major life events. Navigating a death and knowing what to do when someone dies can be one of the hardest things we’ll ever experience.  Today, Employment and Social Development Canada introduced a new portal to help Canadians deal with the difficult circumstances surrounding death.

    Instead of having to navigate countless web pages, Canadians will now have all the information they need in one place. The “What to do when someone dies” Hub is designed to provide Canadians with a simple and improved experience that will help them better understand their next steps, available services, benefits, and programs.

    The Hub will direct Canadians to the services they need, whether they are a family member, a funeral home representative or an executor or liquidator. A key feature of the Hub is its personalized questionnaire. After Canadians answer a few simple questions, the tool will provide them with a personalized checklist and information on the benefits and services that apply to their situation.

    This new life event hub builds on the previous success of the Retirement Hub launched in October 2023, which has served more than 450,000 visitors in understanding their retirement options.

    Quotes

    “Experiencing the loss of a loved one is undoubtedly one of life’s most challenging moments. That’s why our government is dedicated to enhancing your access to essential benefits and services during significant life events such as death, birth, retirement, and marriage. This new life event hub is an innovative online tool designed to guide Canadians through the process after a loved one’s passing. It offers a straightforward, compassionate, and comprehensive experience to support you during this time. This initiative is a meaningful step toward simplifying government services, ensuring they are easier to navigate for those facing the heartache of losing someone special. We’re here for you every step of the way.”

    – Minister of Citizens’ Services, Terry Beech

    Quick facts

    • Survivors may be entitled to the following benefits:

      • Canada Pension Plan (CPP) survivor’s pension
      • CPP Allowance for the Survivor
      • CPP death benefit
      • Canadian Benefit for Parents of Young Victims of Crime
      • Canada student loan forgiveness

    • Benefit amounts will vary according to the survivor’s unique situation. Please note, there may be additional benefits available if the deceased was member of a specific group such as the Canadian Armed Forces, RCMP, Public Service, First Nations, Métis, Inuit, or Students.

    Associated links

    Contacts

    For media inquiries, please contact:

    Teodor Gaspar
    Acting Director of Communications
    Office of the Minister of Citizens’ Services
    teodor.gaspar@hrsdc-rhdcc.gc.ca

    Media Relations Office
    Employment and Social Development Canada
    819-994-5559
    media@hrsdc-rhdcc.gc.ca
    Follow us on X (Twitter)
    Follow us on Facebook

    MIL OSI Canada News –

  • MIL-OSI USA: Attorney General James Reminds New Yorkers of Election Protection Hotline Ahead of Election Day

    Source: US State of New York

    NEW YORK – New York Attorney General Letitia James today reminded New Yorkers that the Office of the Attorney General’s (OAG) Election Protection Hotline is available for the November 5, 2024 general election. Hotline staffers can help voters troubleshoot and resolve a range of issues they may encounter when they go to cast their ballot. Last week, Attorney General James issued guidance for voters ahead of the election, and a guide addressing frequently asked questions is also available to assist voters.

    “All New Yorkers have the right to feel safe when casting their votes,” said Attorney General James. “Our Election Protection Hotline will help ensure that every voice is heard – whether you’re voting by mail, or in-person on Election Day. My office is committed to protecting free and fair elections and we will continue to do everything in our power to ensure a safe, smooth voting process for all. I urge every New Yorker to contact our hotline to resolve election-related questions or concerns.”

    New Yorkers are protected from voter intimidation, deception, and obstruction under state and federal law. Attorney General James urges voters experiencing problems voting to call the OAG hotline at (866) 390-2992, or submit a complaint online to request assistance.

    The telephone hotline will be open on Election Day, Tuesday, November 5, between 6:00 AM and 9:00 PM. It will also be available the following day, Wednesday, November 6, between 9:00 AM and 6:00 PM to help voters who need assistance after Election Day. Written requests for assistance may be submitted at any time through the online form. Hotline calls and written requests for assistance are processed by OAG attorneys and staff.

    The OAG has operated its Election Protection Hotline since November 2012. During previous elections, OAG fielded hundreds — and sometimes thousands — of complaints from voters across the state and worked with local election officials and others to address issues. The OAG has also taken legal action to protect against voter registration purges and to ensure that voters have adequate and equitable access to vote early as required by law.

    All registered voters have the right to accessible elections. On Election Day, polls are required to be open from 6:00 AM to 9:00 PM, and if voters are in line before closing, they must be allowed to vote. In addition, all registered voters have the right to vote free from coercion or intimidation, whether by election officials or any other person.

    The OAG will receive and respond to election complaints relating to any of the statutes that OAG enforces, including the newly operative New York Voting Rights Act.

    The OAG Election Protection Hotline is being coordinated by the Voting Rights Section, headed by Section Chief Lindsay McKenzie, with Assistant Attorneys General Bethany Perskie, Edward Fenster, Derek Borchardt, Vivian Michael, and Rebecca Culley; Senior Voting Rights Analysts Turquoise Baker and Jake Moore; and Administrative Assistant ss2 Lyric Landon. The Voting Rights Section is part of the Civil Rights Bureau, overseen by Bureau Chief Sandra Park and Deputy Bureau Chief Travis England. The Civil Rights Bureau is a part of the Division for Social Justice, which is led by Chief Deputy Attorney General Meghan Faux and overseen by First Deputy Attorney General Jennifer Levy.   

    MIL OSI USA News –

  • MIL-OSI USA: Gov. Justice issues proclamation banning outdoor burning statewide

    Source: US State of West Virginia

    The ban, which is necessary due to the continuation of dry weather conditions and low water levels, will be in effect until circumstances improve and the Governor rescinds the order by further proclamation.

    The Governor’s order makes it unlawful for any person in the state to engage in outdoor burning, including fires built for camping, the burning of debris, or warming. 

    The following items are excluded from the restrictions:

    • Fires for the purpose of chemical production, where fire is essential to operation.
    • Fires for commercial land-clearing, such as mining, highway construction, and development: Provided, that a permit is obtained from the Division of Forestry prior to burning.
    • Training fires conducted under the direct control and supervision of qualified instructors at a training facility operated by a fire department or government entity: Provided, that a permit for such training fires is obtained from the Division of Forestry prior to burning.
    • Fires for outdoor cooking conducted for fund-raising events and charitable organizations: Provided, that a water source capable of extinguishing the fire must be present and a permit is obtained from the Division of Forestry prior to the operation.
    • Liquid fueled gas grills, lanterns or liquid-fueled gas fire stoves.

    The Governor has instructed the Division of Forestry to enact a forest fire readiness plan and to enforce the ban on burning as outlined in W.Va. Code §20-1-1​, et seq.

    The proclamation orders the Division of Forestry and the Division of Homeland Security and Emergency Management to provide continuous information to the Governor and the public regarding forest conditions.

    Additionally, the proclamation orders the Division of Natural Resources, the Office of the State Fire Marshal, the Department of Homeland Security, and the State Police to cooperate in the enforcement of this ban.​

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta, Newsom Administration File Lawsuit Against Norwalk Over Unlawful Housing Ban

    Source: US State of California

    Lawsuit seeks court order compelling Norwalk to repeal housing ban

    LOS ANGELES — California Attorney General Rob Bonta, Governor Gavin Newsom, and California Department of Housing and Community Development (HCD) Director Gustavo Velasquez today announced filing a lawsuit against the City of Norwalk over its unlawful ban on new housing for California’s most vulnerable residents, including emergency shelters, single-room occupancy housing, transitional housing, and supportive housing. Filed in the Los Angeles County Superior Court, the lawsuit alleges that Norwalk’s ban violates numerous state laws and seeks an order compelling the city to repeal its ban. In addition, the lawsuit asks the court to impose other remedies afforded under state law such as temporarily suspending the city’s nonresidential permitting authority and prohibiting the city from denying qualifying affordable housing projects. 

    “Today’s lawsuit should come as no surprise. Despite receiving several warnings, the City of Norwalk has refused to repeal its unlawful ban on new supportive housing for our most vulnerable residents. Enough is enough,” said Attorney General Rob Bonta. “Every city and county in California has a legal obligation to help solve our homelessness crisis. We have not, and will not hesitate, to ensure that everyone with the power to approve or disapprove housing takes their duties seriously.”

    “The Norwalk City Council’s failure to reverse this ban, despite knowing it is unlawful, is inexcusable,” said Governor Gavin Newsom. “No community should turn its back on its residents in need.”

    “Norwalk’s moratorium on housing for its most vulnerable residents is not only unlawful — it is a rejection of people’s basic health, safety, and humanity,” said HCD Director Gustavo Velasquez. “We’re grateful for the Attorney General’s partnership to ensure all cities and counties are held accountable when they fail to comply with state housing law. I am disappointed the city did not reverse course on its own accord, choosing instead to waste time and public resources and be forced by the court to do the right thing.”

    Today’s lawsuit alleges that Norwalk has violated (1) California’s urgency ordinance statute; (2) the Housing Crisis Act; (3) the Housing Element Law; (4) the Anti-Discrimination in Land Use Law; (5) the Affirmatively Furthering Fair Housing Law; and (6) the by-right laws for supportive housing and emergency shelters.

    On July 13, 2023, Attorney General Bonta issued legal guidance to local governments, reminding them of the strict requirements under state law for enacting so-called “urgency zoning ordinances.” The California Department of Justice observed that some local jurisdictions were responding to state housing laws passed in recent years by enacting such ordinances in an apparent attempt to limit or circumvent state housing mandates. Under California Government Code Section 65858, urgency zoning ordinances require written “legislative findings that there is a current and immediate threat to the public health, safety, or welfare” demanding immediate action.

    Without the required legislative findings or any deliberation, the five-member Norwalk City Council unanimously passed on August 6, 2024 an urgency zoning ordinance imposing a 45-day ban, or moratorium, on new supportive housing. On September 16, 2024, HCD issued a Notice of Violation to the city, warning of impending legal action if the city did not repeal the ban. Despite the warning, the Norwalk City Council unanimously extended the ban on September 17, 2024 for an additional 10 months and 15 days, once again without the required legislative findings or any deliberation. On October 3, 2024, Governor Gavin Newsom announced that HCD had decertified Norwalk’s housing element. Without a compliant housing element, Norwalk can no longer deny certain affordable housing projects and is no longer eligible to receive key state housing and homelessness funds. To date, Norwalk has not repealed the ban. 

    A copy of the lawsuit can be found here.

    MIL OSI USA News –

  • MIL-OSI USA: In Memoriam: UConn Law Professor Joseph Harbaugh

    Source: US State of Connecticut

    Joseph Harbaugh, groundbreaking inaugural director of the first clinic at the UConn School of Law and Connecticut’s former chief public defender, died on October 11, 2024.

    His 50-year career in legal education began in 1968, when he joined the UConn Law faculty after three years as chief public defender. He opened the school’s Legal Clinic the next year and immediately found success and controversy defending Vietnam War protesters in significant First Amendment cases. Harbaugh’s efforts laid the groundwork for a robust clinical program that now comprises eight in-house and seven partnership clinics.

    In 1971, Harbaugh received the Connecticut Law Review Award for his work with the clinic. He told The Legal Realist, a student newspaper, that “the hallmark of the profession’s public responsibility is the representation of unpopular causes. It would be difficult to teach high professional standards in a Legal Profession class and permit the clinic to avoid controversial issues because of their political implications.”

    “Joe planted the seeds for all that followed with respect to our clinical programs,” said Professor Emeritus Lewis Kurlantzick. “He was one of the Founding Fathers and a terrific guy as well.”

    “The UConn Law community is forever indebted to Professor Harbaugh for his pioneering work on our clinical programs,” Dean Eboni S. Nelson said. “He was a courageous leader whose influence has persisted over decades and continues to be felt today.”

    After leaving UConn Law in 1971, Harbaugh taught law at seven universities and became dean of the University of Richmond Law School from 1987 to 1995 and of Nova Southeastern University College of Law from 1995 to 2008. He also served as chief counsel of the Pennsylvania Senate Judiciary Committee and as special assistant chief prosecuting attorney for organized crime for the Connecticut Circuit Court. He served in several leadership roles with the Association of American Law Schools and the American Bar Association.

    Harbaugh received his BS from St. Joseph’s University, LLB from the University of Pittsburgh and LLM from Georgetown University, where he was a fellow of the prestigious E. Barrett Prettyman Fellowship Program. He also held an honorary JD degree from Concord Law School.

    He leaves his wife of 42 years, Barbara Britzke; seven children; nine grandchildren; and one great-grandchild. A celebration of life will be announced in the coming weeks. In lieu of flowers, the family requests charitable donations to the Joseph Harbaugh Scholarship at the Shepard Broad College of Law.

    MIL OSI USA News –

  • MIL-OSI USA: Following Casey’s Push for Injunction, Court Temporarily Halts Charleroi Plant Closure

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey
    Earlier this month, Casey released a report exposing how private equity machinations have culminated in decision to close Charleroi Pyrex plant
    Casey called for federal investigation into the shady business dealings and injunction to protect PA workers
    Washington, D.C. – Today, U.S. Senator Bob Casey released the following statement after a federal district court issued a temporary restraining order against Anchor Hocking at the request of Pennsylvania Attorney General Michelle Henry, temporarily blocking the closure of the Charleroi Pyrex plant pending a formal hearing. Last month, Casey released a report exposing how questionable financial engineering and shady business deals by a private equity firm had culminated in the decision to close the plant, and urged officials to block the plant closure pending a full investigation into the matter.
    “Charleroi has a generational legacy of glass manufacturing, and the plant’s closure would be a slap in the face to the workers, their community, and the people of Pennsylvania,” said Senator Casey. “It’s clear that enforcement agencies must continue to investigate the shady business dealings and private equity machinations that have culminated in this attempted closure. This is a temporary measure, but it is an important first step and I’m thankful to the Attorney General’s office for taking this action. I will continue working every day to protect union jobs and hold Wall Street executives accountable for the havoc they are wreaking in our Commonwealth.”
    Immediately upon learning of Anchor Hocking’s plans to close the plant on September 5th, Senator Casey’s office reached out to the plant’s union leadership and Charleroi Borough officials, connecting them with federal and state authorities. Casey’s office also helped convene a task force of county commissioners, borough officials, and local economic development leaders. Casey’s staff also alerted the White House Interagency Working Group on Coal and Power Plant Communities and Economic Revitalization to the situation, leading to several federal officials visiting Charleroi on September 11th. On September 19th, Senator Casey sent a letter to Anchor Hocking demanding an explanation for the closure and imploring the company to reconsider its actions. On September 20th, Senator Casey and Senate Finance Committee Chair Senator Ron Wyden successfully requested a joint confidential briefing with the Federal Trade Commission (FTC) on questions concerning Anchor Hocking’s assumption of control of the Pyrex manufacturing operation in Charleroi.
    On October 18, Casey released a report, Charleroi, PA: An Example of How Private Equity is Shattering the Glass Industry and Leaving Workers Behind, which exposed the questionable financial engineering and shady business deals that culminated in Centre Lane’s recent decision to close the plant, leaving its workers as collateral damage. In the report and a follow up letter to FTC Chair Lina Khan, Casey called on the Federal Trade Commission (FTC) and Department of Justice (DOJ) to take action to block the plant closure pending the outcome of a full investigation into the private equity firm for its efforts to potentially evade regulatory rules, strip the plant bare, and lay off Pennsylvania workers. In addition to his efforts at the federal level, Senator Casey has also been in touch with state officials in Pennsylvania to advocate for state action that could prevent the plant closure pending a full investigation into these concerns.

    MIL OSI USA News –

  • MIL-OSI USA: New England Doctor Pleads Guilty to Drug Distribution Conspiracy

    Source: US State of North Dakota

    A New England doctor pleaded guilty today to conspiring to illegally distribute controlled substances. This is the first joint prosecution of a doctor by the Justice Department’s New England Strike Force and U.S. Attorney’s Office for the District of Vermont.

    “The defendant, a medical doctor based in New England, prescribed drugs to vulnerable patients in exchange for cash, knowing the patients were diverting the drugs,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases brought by the New England Strike Force, including today’s conviction, demonstrate the Criminal Division’s commitment to holding accountable medical professionals who endanger local communities by putting profits above their patients’ wellbeing.”

    “When we announced the creation of the New England Strike Force, we said we would be focusing on medical professionals who put profits over their patients,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Khan is an example of that — a bad apple in a profession that takes an oath to uphold ethical standards and treat patients as you would want to be treated. Putting profits over patients is a severe violation of that oath, and, in this case, a violation of federal criminal law. Today’s guilty plea is another step in holding Khan liable for his illegal conduct.”

    According to court documents, Adnan S. Khan, M.D., 48, of Grantham, New Hampshire, conspired with others to illegally distribute controlled substances through his business, New England Medicine and Counseling Associates (NEMCA), which operated a network of clinics in New England that purportedly provided clinical treatment services for persons suffering from substance use disorder. Khan and a co-conspirator prescribed controlled substances to NEMCA patients despite knowing that their patients were diverting the prescriptions. Khan admitted that he and others required cash for purported office visits to received controlled substance prescriptions and falsified medical records to justify his illegal prescribing practices.

    During the conspiracy, Khan emailed a co-conspirator a Justice Department press release  announcing the creation of the New England Strike Force, a law enforcement partnership whose purpose is to identify and prosecute health care fraud and other criminal schemes impacting the New England region. In response, the co-conspirator stated that it is “clear that [references in the release to] ‘making profit off of patients’ is geared towards folks like us. Curious where this will lead.” Khan then emailed NEMCA staff and stated that “there is a new task force…[for the New England states] on the lookout for medical professionals who are prescribing scheduled meds irresponsib[ly], etc.” Khan warned his staff that “[i]t is not a matter of if someone from such a task force will visit NEMCA but rather a matter of time.” Khan then ordered his staff “NOT to engage or discuss anything [with the  New England Strike Force] about NEMCA, what we do, what we offer, fees, etc.”

    “Rather than providing responsible addiction treatment to his patients, Khan ran his medical practice with the corruption and recklessness of a common drug dealer,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “His actions put patients and the community at risk. Today’s guilty plea is the result of a coordinated effort with our law enforcement partners as we continue our fight against addiction and the opioid epidemic.”

    “Khan and his co-conspirator exploited vulnerable patients and cashed in on the very dependencies he was entrusted to treat,” said Special Agent in Charge Craig Tremaroli of the FBI Albany Field Office. “Today’s plea proves he is no better than a street level drug dealer motivated by pure greed as opposed to the oath he took to ‘first, do no harm’ to his patients. The FBI will continue to work with our partners on the New England Strike Force and U.S. Attorney’s Office to identify and bring to justice any practitioner looking to line their pockets in complete disregard for patient welfare and viability of our healthcare framework.”

    “Our communities deserve honest and trustworthy medical practitioners,” said Acting Diversion Program Manager George J. Lutz Jr. of the Drug Enforcement Administration (DEA)’s New England Field Division. “Individuals betraying this trust through the illegal prescribing of controlled substances will be fully investigated by the DEA. Today’s guilty plea reinforces the value of the coordinated efforts with our law enforcement partners working alongside prosecutors to hold corrupt and reckless practitioners accountable for their actions.”

    “So many Vermonters have been impacted by the opioid epidemic, which is why we must hold bad actors accountable, particularly physicians who use their prescribing power and their positions of authority to profit from their patients’ pain and suffering,” said Vermont Attorney General Charity R. Clark on behalf of the office’s Medicaid Fraud & Residential Abuse Unit. “I am proud to partner with the U.S. Attorney’s Office and Department of Justice in this effort.”

    Khan and a co-conspirator required patients — many of whom were economically disadvantaged — to pay $250 cash in exchange for drug prescriptions, despite many of these patients’ having health care benefit coverage. If a patient could not afford the full cash payment, Khan would lower the dosage of that patient’s prescription. Khan then used funds that he earned from these patients to, among other things, purchase an airplane and multiple properties in New England. Khan would also personally deposit the cash that he received from patients, including deposits in excess of $10,000, at his bank.

    Khan also admitted that he and a co-conspirator discussed their concern that, because pharmacies were no longer willing to fill the prescriptions, NEMCA might lose “dishonest” patients who were “selling their meds.” Khan said that their “honest patients” were “the smaller part of [NEMCA’s] clientele” and advised a co-conspirator that “it’s the diverters [of the drugs that] we need to try to figure out a way to retain.” A co-conspirator emailed Khan, suggesting that they give $100 “scholarships” to patients who owed them money. Khan responded he was “[s]tuck on ‘who’ should get them. S[******] patients owe me so much that $100 won’t even put a dent on their account and they probably won’t appreciate it. Maybe the borderline ones who are just over the $250 threshold? They would probably get on their knees in gratitude.”

    Khan pleaded guilty to one count of conspiring to illegally distribute controlled substances. A sentencing hearing will be scheduled on a later date. Khan faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    As a condition of Khan’s release, he is prohibited from writing prescriptions for controlled substances.

    The HHS-OIG, FBI, DEA, and Vermont Attorney General’s Office’s Medicaid Fraud and Residential Abuse Unit investigated the case.

    Trial Attorneys Thomas D. Campbell and Danielle H. Sakowski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Gilman for the District of Vermont are prosecuting the case.

    The Fraud Section partners with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout the country to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.

    The Vermont Attorney General’s Office Medicaid Fraud and Residential Abuse Unit receives 75% of its funding from HHS-OIG under a grant award totaling $1,229,616 for federal fiscal year 2024. The remaining 25%, totaling $409,870 for federal fiscal year 2024, is funded by the State of Vermont.

    Anyone needing access to opioid treatment services can contact HHS-OIG’s Substance Abuse and Mental Health Services Administration 24/7 National Helpline for referrals to treatment services at 1-800-662-4359.

    MIL OSI USA News –

  • MIL-OSI USA: Florida Man Indicted for Posting Threats on the Internet

    Source: US State of North Dakota

    An indictment was unsealed charging Nathaniel James Holmes, 51, of Jacksonville, Florida, with four counts of transmitting interstate threats to injury other persons. If convicted on all counts, Holmes faces a maximum penalty of 20 years in federal prison.

    According to the indictment, on four dates in October, Holmes transmitted threats to injure others, including threats to kill three particular victims, the children of one victim, and Jewish and African American individuals generally. A federal grand jury charged Holmes in a sealed indictment on Oct. 24. He was arrested on Nov. 1, made his initial appearance in court, and ordered detained pending a competency evaluation.

    The FBI; U.S. Customs and Border Protection; Naval Criminal Investigative Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; and U.S. Secret Service are investigating the case.

    Assistant U.S. Attorneys Kelly S. Milliron and Michael J. Coolican for the Middle District of Florida and Trial Attorney Jacob Warren of the Justice Department’s National Security Division are prosecuting the case.

    An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.

    MIL OSI USA News –

  • MIL-OSI USA: Turkish National Arrested for Allegedly Conspiring to Violate Venezuela-Related Sanctions

    Source: US State of Vermont

    Taskin Torlak, 37, of Turkey, was arrested in Miami, on Nov. 2 for allegedly conspiring to violate U.S. sanctions as part of a scheme to transport oil from Venezuela for the benefit of Petróleos de Venezuela, S.A. (PdVSA), Venezuela’s state-owned oil and natural gas company.

    “As alleged, the defendant conspired to evade U.S. sanctions imposed on PdVSA, deploying deception to smuggle black-market oil from Venezuela,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will continue to hold accountable those involved in criminal efforts to circumvent sanctions imposed on the Maduro regime.”

    “This defendant allegedly conspired to illegally sell Venezuelan oil, using deceit and trickery to hide the fact that this oil originated from Venezuela,” said U.S. Attorney Matthew Graves for the District of Columbia. “Venezuela’s state-owned oil company, PdVSA, was sanctioned by the U.S. government to prevent the current regime from further depleting the nation’s resources while it unlawfully remains in power.  We remain dedicated to prosecuting violations of these sanctions until the government of Venezuela takes the necessary steps for these sanctions to be lifted.”

    Torlak was arrested as he attempted to depart the United States to return to Turkey. He is charged by complaint with one count of conspiring to violate the International Emergency Economic Powers Act (IEEPA). According to the complaint, Torlak conspired with others to cause U.S. financial institutions to process transactions connected to the transport of Venezuelan oil for the benefit of PdVSA, which the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated as a Specially Designated National (SDN) in January 2019.

    According to the complaint, beginning at least in or around November 2020, Torlak and others devised and implemented a complex scheme to violate and evade U.S. sanctions related to petroleum products from Venezuela and Iran. The scheme included obfuscating the identities of tankers moving the oil by re-naming and re-flagging vessels, covering vessel names with paint or blankets, and turning off the electronics that track vessels’ locations for the safety of ships and their crews. Torlak and his co-conspirators allegedly received tens of millions of dollars from PdVSA in payment for transporting Venezuelan oil, and hid the ultimate beneficiaries of the related transactions from U.S. financial institutions, who then unwittingly processed payments in furtherance of the scheme. The complaint further alleges that Torlak and his co-conspirators explicitly discussed the need to hide their conduct from the U.S. Government and its agencies, including OFAC, as well as commercial maritime entities.

    Homeland Security Investigations Washington D.C. is investigating the case.

    Assistant U.S. Attorney Maeghan Mikorski for the District of Columbia and Trial Attorneys Sean Heiden and Chantelle Dial of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of Florida.

    A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL OSI USA News –

  • MIL-OSI USA: Reed Denounces Trump’s Dark Suggestion That Political Rival Should Have “Guns Trained on Her Face”

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed
    PROVIDENCE, RI — After former President Donald Trump suggested last night that former U.S. Representative Liz Cheney (R-WY) should have guns “trained on her face,” U.S. Senator Jack Reed (D-RI) condemned Trump’s increasingly violent and unhinged rhetoric and warned that Trump could try to purge the U.S. military, U.S Intelligence, and U.S. Department of Justice of professionals and stock them with extremists who swear an oath to Trump instead of the Constitution.  Today, Senator Reed stated:
    “Unlike Liz Cheney or Donald Trump, I actually opposed the war in Iraq and voted against it.  But there is no excuse for Trump’s vile, violent, and unhinged suggestion that a former member of Congress should be targeted like this and have guns trained on her face. 
    “People, including myself, may not agree with Liz Cheney on policy, but she respects the Constitution and the rule of law.  Donald Trump has shown through word and deed that he puts himself above the law.  
    “Trump has made it clear that he wants to get rid of dedicated, career public servants who have sworn an oath to the Constitution in order to replace them with extremists who will not hesitate to act, without question, on his strange and disturbing statements.  His attitude and rhetoric point to him firing competent officers and replacing them with people who swear allegiance to him, not the Constitution.
    “That is very disturbing, completely unprecedented, and should be widely condemned.”

    MIL OSI USA News –

  • MIL-OSI USA: Former U.S. Capitol Police Officer Sentenced for Federal Civil Rights Violation Related to Vehicular Crash Involving a Motorcyclist

    Source: US State of Vermont

    A former U.S. Capitol Police (USCP) Officer was sentenced today to 21 months in prison, followed by two years of supervised release, related to a vehicular crash involving a motorist in Washington, D.C.

    Thomas Smith, 47, pleaded guilty on Oct. 18, 2023, to deprivation of rights under color of law.

    “This defendant recklessly pursued two motorcyclists, struck one of them with his car, left the victim unconscious on the asphalt, fled the scene and then switched out his cruiser and filed no report in an attempt to cover up his violent misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Endangering community members in this manner and disregarding the law violates the victims’ civil rights and erodes trust by those the police are sworn to protect and serve. The Justice Department will aggressively prosecute officials who engage in abuses of their authority, including federal law enforcement officers.”

    “Thomas Smith abused his position of trust by engaging in a dangerous pursuit that could have been deadly – and made matters worse by obstructing the investigation into the collision he caused,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Most police officers uphold the oath they took upon becoming officers, but when police officers break that oath and violate the public trust they must be held accountable.”

    According to court documents, on the evening of June 20, 2020, Smith was on duty conducting security checks at the homes of members of Congress in the Georgetown neighborhood of Washington, D.C., when he began pursuing two individuals riding motorized cycles. While following the motorcyclists closely, but without his emergency lights on, Smith’s USCP cruiser struck one of the motorcyclists at the intersection of Wisconsin Avenue and M Street, Northwest. The crash knocked the cyclist into the air before he hit the asphalt roadway.

    As the victim lay in the intersection unconscious, Smith drove his cruiser around the victim and left the scene of the collision. Smith did not notify anyone of the collision, take any action to seek medical assistance for the victim or ensure that no further harm came to the victim as he lay on the road. Hours after the collision, Smith falsified several USCP records related to the incident and lied to his superior officers about being involved in the crash.

    The FBI and USCP investigated the case, with assistance from the Metropolitan Police Department.

    Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Timothy Visser for the District of Columbia prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI: Serstech Secures 9.7 MSEK Orders from Chilean Partner Aerotech

    Source: GlobeNewswire (MIL-OSI)

    Serstech has today received two orders totaling 9.7 MSEK from its Chilean partner, Aerotech. The orders include the Serstech Arx mkII and ChemDash software, with delivery and invoicing scheduled for the fourth quarter of 2024.

    The final recipients of these orders are the Carabineros and the Investigations Police of Chile (PDI). PDI is the nation’s primary civilian police force specializing in criminal investigations, intelligence operations, and counterterrorism, with a particular focus on areas such as drug trafficking and organized crime.

    These orders represent the fourth and fifth in 2024 from Chilean law enforcement through Aerotech, underscoring the growing demand for Serstech’s solutions in the region.

    For further information, please contact:

    Stefan Sandor,                                                                              

    CEO, Serstech AB Phone: +46 739 606 067

    Email: ss@serstech.com

    or

    Thomas Pileby,

    Chairman of the Board, Serstech AB Phone: +46 702 072 643

    Email: tp@serstech.com

    or visit: www.serstech.com

    This is information that Serstech AB (publ.) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above at 18:50 CET on November 4, 2024.

    Certified advisor to Serstech is Svensk Kapitalmarknadsgranskning AB (SKMG).

    About Serstech

    Serstech delivers solutions for chemical identification and has customers around the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organizations and first responders. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech’s solution. Serstech’s head office is in Sweden and all production is done in Sweden.

    Serstech is traded at Nasdaq First North Growth Market and more information about the company can be found at www.serstech.com

    The MIL Network –

  • MIL-OSI: Diamondback Energy, Inc. Announces Third Quarter 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) — Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced financial and operating results for the third quarter ended September 30, 2024.

    THIRD QUARTER 2024 HIGHLIGHTS

    • As previously announced, closed merger with Endeavor Energy Resources, L.P. (“Endeavor”) on September 10, 2024
    • Average production of 321.1 MBO/d (571.1 MBOE/d)
    • Net cash provided by operating activities of $1.2 billion; Operating Cash Flow Before Working Capital Changes (as defined and reconciled below) of $1.4 billion
    • Cash capital expenditures of $688 million
    • Free Cash Flow (as defined and reconciled below) of $708 million; Adjusted Free Cash Flow (as defined and reconciled below) of $1.0 billion
    • Declared Q3 2024 base cash dividend of $0.90 per share payable on November 21, 2024; implies a 2.0% annualized yield based on November 1, 2024 closing share price of $175.81
    • Repurchased 2,919,763 shares of common stock in Q3 2024 for $515 million, excluding excise tax (at a weighted average price of $176.40 per share); repurchased 1,029,191 shares of common stock to date in Q4 2024 for $185 million, excluding excise tax (at a weighted average price of $180.13 per share)
    • Total Q3 2024 return of capital of $780 million; represents ~78% of Adjusted Free Cash Flow (as defined and reconciled below) from stock repurchases and the declared Q3 2024 base dividend
    • As previously announced, Board approved a $2.0 billion increase to share repurchase authorization to $6.0 billion from $4.0 billion previously

    TRP ENERGY (“TRP”) TRADE

    • On November 3rd, Diamondback and TRP entered into a definitive agreement under which Diamondback will trade certain Delaware Basin assets and pay approximately $238 million in cash to TRP in exchange for TRP’s Midland Basin assets
    • TRP’s Midland Basin assets are made up of ~15,000 net acres across Upton and Reagan counties and consist of 55 remaining undeveloped operated locations, the majority of which immediately compete for capital
    • The asset also includes 18 Drilled Uncompleted Wells (“DUCs”) which provide for additional capital allocation flexibility
    • The trade is expected to be accretive to both Cash Flow and Free Cash Flow per share and enhances Diamondback’s near-term oil production profile
    • Expected to close in December 2024, subject to customary regulatory approvals and closing conditions
    • Jefferies LLC is serving as financial advisor to Diamondback. Kirkland & Ellis LLP is serving as legal advisor to Diamondback. J.P. Morgan Securities LLC, Moelis & Company and RBC Capital Markets are acting as financial advisors to TRP. Clifford Chance US LLP is serving as legal advisor to TRP.

    OPERATIONS UPDATE

    The tables below provide a summary of operating activity for the third quarter of 2024.

      Total Activity (Gross Operated):        
        Number of Wells
    Drilled    		   Number of Wells
    Completed    		  
      Midland Basin 71   87  
      Delaware Basin 5   8  
      Total 76   95  
      Total Activity (Net Operated):        
        Number of Wells
    Drilled    (1)    		   Number of Wells
    Completed    (1)    		  
      Midland Basin 67   95  
      Delaware Basin 4   7  
      Total 71   102  
      (1) Includes two additional net wells drilled and nine additional net wells completed, respectively, from interests acquired in the Endeavor Acquisition during the first six months of 2024.  
               

    During the third quarter of 2024, Diamondback drilled 71 gross wells in the Midland Basin and five gross wells in the Delaware Basin. The Company turned 87 operated wells to production in the Midland Basin and eight gross wells in the Delaware Basin, with an average lateral length of 12,238 feet. Operated completions during the third quarter consisted of 22 Wolfcamp A wells, 21 Lower Spraberry wells, 15 Jo Mill wells, 14 Wolfcamp B wells, 12 Middle Spraberry wells, four Dean wells, four Third Bone Spring wells and three Upper Spraberry wells.

    For the first nine months of 2024, Diamondback drilled 211 gross wells in the Midland Basin and 24 gross wells in the Delaware Basin. The Company turned 267 operated wells to production in the Midland Basin and 15 operated wells to production in the Delaware Basin. The average lateral length for wells completed during the first nine months of 2024 was 11,645 feet, and consisted of 72 Lower Spraberry wells, 61 Wolfcamp A wells, 45 Wolfcamp B wells, 40 Jo Mill wells, 34 Middle Spraberry wells, nine Wolfcamp D wells, nine Dean wells, six Upper Spraberry wells, four Third Bone Spring wells, one Second Bone Spring well and one Barnett well.

    FINANCIAL UPDATE

    Diamondback’s third quarter 2024 net income was $659 million, or $3.19 per diluted share. Adjusted net income (as defined and reconciled below) for the third quarter was $698 million, or $3.38 per diluted share.

    Third quarter 2024 net cash provided by operating activities was $1.2 billion. Through the first nine months of 2024, Diamondback’s net cash provided by operating activities was $4.1 billion.

    During the third quarter of 2024, Diamondback spent $633 million on operated and non-operated drilling and completions, $52 million on infrastructure and environmental and $3 million on midstream, for total cash capital expenditures of $688 million. Through the first nine months of 2024, Diamondback spent $1.8 billion on operated and non-operated drilling and completions, $128 million on infrastructure and environmental and $8 million on midstream, for total cash capital expenditures of $1.9 billion.

    Third quarter 2024 Consolidated Adjusted EBITDA (as defined and reconciled below) was $1.8 billion. Adjusted EBITDA net of non-controlling interest (as defined and reconciled below) for the third quarter was $1.7 billion.

    Diamondback’s third quarter 2024 Free Cash Flow (as defined and reconciled below) was $708 million. Adjusted Free Cash Flow (as reconciled and defined below) for the third quarter was $1.0 billion. Through September 30, 2024, Diamondback’s Free Cash Flow was $2.3 billion, with $2.7 billion of Adjusted Free Cash Flow over the same period.

    Third quarter 2024 average unhedged realized prices were $73.13 per barrel of oil, $(0.26) per Mcf of natural gas and $17.70 per barrel of natural gas liquids (“NGLs”), resulting in a total equivalent unhedged realized price of $44.80 per BOE.

    Diamondback’s cash operating costs for the third quarter of 2024 were $11.49 per BOE, including lease operating expenses (“LOE”) of $6.01 per BOE, cash general and administrative (“G&A”) expenses of $0.63 per BOE, production and ad valorem taxes of $2.91 per BOE and gathering, processing and transportation expenses of $1.94 per BOE.

    As of September 30, 2024, Diamondback had $201 million in standalone cash and $115 million in borrowings outstanding under its revolving credit facility, with approximately $2.4 billion available for future borrowings under the facility and approximately $2.6 billion of total liquidity. As of September 30, 2024, the Company had consolidated total debt of $13.1 billion and consolidated net debt (as defined and reconciled below) of $12.7 billion, up from consolidated total debt of $12.2 billion and up from consolidated net debt of $5.3 billion as of June 30, 2024. Effective in September 2024, the Company’s borrowing base and elected commitment was increased to $2.5 billion from $1.6 billion previously.

    DIVIDEND DECLARATIONS

    Diamondback announced today that the Company’s Board of Directors declared a base cash dividend of $0.90 per common share for the third quarter of 2024 payable on November 21, 2024 to stockholders of record at the close of business on November 14, 2024.

    Future base and variable dividends remain subject to review and approval at the discretion of the Company’s Board of Directors.

    COMMON STOCK REPURCHASE PROGRAM

    During the third quarter of 2024, Diamondback repurchased ~2.9 million shares of common stock at an average share price of $176.40 for a total cost of approximately $515 million, excluding excise tax. To date, Diamondback has repurchased ~23.3 million shares of common stock at an average share price of $133.48 for a total cost of approximately $3.1 billion and has approximately $2.9 billion remaining on its current share buyback authorization. Subject to factors discussed below, Diamondback intends to continue to purchase common stock under the common stock repurchase program opportunistically with cash on hand, free cash flow from operations and proceeds from potential liquidity events such as the sale of assets. This repurchase program has no time limit and may be suspended from time to time, modified, extended or discontinued by the Board at any time. Purchases under the repurchase program may be made from time to time in privately negotiated transactions, or in open market transactions in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended, and will be subject to market conditions, applicable regulatory and legal requirements and other factors. Any common stock purchased as part of this program will be retired.

    UPDATED 2024 GUIDANCE

    Below is Diamondback’s guidance for the full year 2024, which includes fourth quarter production, unit costs and capital guidance. The Company’s production and capital guidance for the full year 2024 has been updated to give effect to the Endeavor merger, which was completed on September 10, 2024.

      2024 Guidance 2024 Guidance
      Diamondback Energy, Inc. Viper Energy, Inc.
         
    2024 Net production – MBOE/d 587 – 590 (from 462 – 470) 48.75 – 49.25
    2024 Oil production – MBO/d 335 – 337 (from 273 – 276) 27.00 – 27.25
    Q4 2024 Oil production – MBO/d (total – MBOE/d) 470 – 475 (840 – 850) 29.25 – 29.75 (52.50 – 53.00)
         
    Q4 2024 Unit costs ($/BOE)    
    Lease operating expenses, including workovers $5.90 – $6.20  
    G&A    
    Cash G&A $0.55 – $0.65  
    Non-cash equity-based compensation $0.25 – $0.40  
    DD&A $14.00 – $15.00  
    Interest expense (net of interest income) $0.25 – $0.50  
    Gathering, processing and transportation $1.60 – $1.80  
         
    Production and ad valorem taxes (% of revenue) ~7%  
    Corporate tax rate (% of pre-tax income) 23%  
    Cash tax rate (% of pre-tax income) 15% – 18%  
    Cash taxes ($ – million) $240 – $300 $13 – $18
         
    Capital Budget ($ – million)    
    2024 Total capital expenditures $2,875 – $3,000 (from $2,350 – $2,450)  
    Q4 2024 Capital expenditures $950 – $1,050  
         
    Q4 2024 Gross horizontal wells drilled (net) 105 – 125 (100 – 118)  
    Q4 2024 Gross horizontal wells completed (net) 110 – 130 (102 – 120)  
         

    CONFERENCE CALL

    Diamondback will host a conference call and webcast for investors and analysts to discuss its results for the third quarter of 2024 on Tuesday, November 5, 2024 at 8:00 a.m. CT. Access to the webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Diamondback’s website at www.diamondbackenergy.com under the “Investor Relations” section of the site.

    About Diamondback Energy, Inc.

    Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

    Forward-Looking Statements

    This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Diamondback’s: future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger and other acquisitions or divestitures); and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this news release, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to Diamondback are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and Diamondback’s actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

    In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

     
    Diamondback Energy, Inc.
    Condensed Consolidated Balance Sheets
    (unaudited, in millions, except share amounts)
           
      September 30,   December 31,
        2024       2023  
    Assets      
    Current assets:      
    Cash and cash equivalents ($169 million and $26 million related to Viper) $ 370     $ 582  
    Restricted cash   3       3  
    Accounts receivable:      
    Joint interest and other, net   233       192  
    Oil and natural gas sales, net ($109 million and $109 million related to Viper)   1,197       654  
    Inventories   126       63  
    Derivative instruments   42       17  
    Prepaid expenses and other current assets   51       110  
    Total current assets   2,022       1,621  
    Property and equipment:      
    Oil and natural gas properties, full cost method of accounting ($21,971 million and $8,659 million excluded from amortization at September 30, 2024 and December 31, 2023, respectively) ($4,771 million and $4,629 million related to Viper and $1,623 million and $1,769 million excluded from amortization related to Viper)   79,718       42,430  
    Other property, equipment and land   1,417       673  
    Accumulated depletion, depreciation, amortization and impairment ($1,016 million and $866 million related to Viper)   (18,082 )     (16,429 )
    Property and equipment, net   63,053       26,674  
    Funds held in escrow   43       —  
    Equity method investments   377       529  
    Derivative instruments   38       1  
    Deferred income taxes, net   62       45  
    Investment in real estate, net   81       84  
    Other assets   71       47  
    Total assets $ 65,747     $ 29,001  
    Liabilities and Stockholders’ Equity      
    Current liabilities:      
    Accounts payable – trade $ 198     $ 261  
    Accrued capital expenditures   641       493  
    Current maturities of long-term debt   1,000       —  
    Other accrued liabilities   857       475  
    Revenues and royalties payable   1,444       764  
    Derivative instruments   34       86  
    Income taxes payable   289       29  
    Total current liabilities   4,463       2,108  
    Long-term debt ($822 million and $1,083 million related to Viper)   11,923       6,641  
    Derivative instruments   79       122  
    Asset retirement obligations   493       239  
    Deferred income taxes   9,952       2,449  
    Other long-term liabilities   18       12  
    Total liabilities   26,928       11,571  
    Stockholders’ equity:      
    Common stock, $0.01 par value; 800,000,000 shares authorized; 292,742,664 and 178,723,871 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively   3       2  
    Additional paid-in capital   34,007       14,142  
    Retained earnings (accumulated deficit)   3,427       2,489  
    Accumulated other comprehensive income (loss)   (8 )     (8 )
    Total Diamondback Energy, Inc. stockholders’ equity   37,429       16,625  
    Non-controlling interest   1,390       805  
    Total equity   38,819       17,430  
    Total liabilities and stockholders’ equity $ 65,747     $ 29,001  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Operations
    (unaudited, $ in millions except per share data, shares in thousands)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Revenues:              
    Oil, natural gas and natural gas liquid sales $ 2,354     $ 2,265     $ 6,629     $ 6,063  
    Sales of purchased oil   282       59       698       59  
    Other operating income   9       16       28       62  
    Total revenues   2,645       2,340       7,355       6,184  
    Costs and expenses:              
    Lease operating expenses   316       226       825       618  
    Production and ad valorem taxes   153       118       413       421  
    Gathering, processing and transportation   102       73       261       209  
    Purchased oil expense   280       59       696       59  
    Depreciation, depletion, amortization and accretion   742       442       1,694       1,277  
    General and administrative expenses   49       34       141       111  
    Merger and integration expense   258       1       273       11  
    Other operating expenses   35       47       68       113  
    Total costs and expenses   1,935       1,000       4,371       2,819  
    Income (loss) from operations   710       1,340       2,984       3,365  
    Other income (expense):              
    Interest expense, net   (18 )     (37 )     (101 )     (130 )
    Other income (expense), net   89       33       87       61  
    Gain (loss) on derivative instruments, net   131       (76 )     101       (358 )
    Gain (loss) on extinguishment of debt   —       —       2       (4 )
    Income (loss) from equity investments, net   6       9       23       39  
    Total other income (expense), net   208       (71 )     112       (392 )
    Income (loss) before income taxes   918       1,269       3,096       2,973  
    Provision for (benefit from) income taxes   210       276       685       648  
    Net income (loss)   708       993       2,411       2,325  
    Net income (loss) attributable to non-controlling interest   49       78       147       142  
    Net income (loss) attributable to Diamondback Energy, Inc. $ 659     $ 915     $ 2,264     $ 2,183  
                   
    Earnings (loss) per common share:              
    Basic $ 3.19     $ 5.07     $ 12.00     $ 12.01  
    Diluted $ 3.19     $ 5.07     $ 12.00     $ 12.01  
    Weighted average common shares outstanding:              
    Basic   204,730       178,872       187,253       180,400  
    Diluted   204,730       178,872       187,253       180,400  
     
    Diamondback Energy, Inc.
    Condensed Consolidated Statements of Cash Flows
    (unaudited, in millions)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Cash flows from operating activities:              
    Net income (loss) $ 708     $ 993     $ 2,411     $ 2,325  
    Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:              
    Provision for (benefit from) deferred income taxes   51       10       180       185  
    Depreciation, depletion, amortization and accretion   742       442       1,694       1,277  
    (Gain) loss on extinguishment of debt   —       —       (2 )     4  
    (Gain) loss on derivative instruments, net   (131 )     76       (101 )     358  
    Cash received (paid) on settlement of derivative instruments   (4 )     (24 )     (36 )     (62 )
    (Income) loss from equity investment, net   (6 )     (9 )     (23 )     (39 )
    Equity-based compensation expense   16       13       49       40  
    Other   20       3       77       (23 )
    Changes in operating assets and liabilities:              
    Accounts receivable   106       (256 )     61       (218 )
    Income tax receivable   —       103       12       267  
    Prepaid expenses and other current assets   (11 )     (8 )     78       5  
    Accounts payable and accrued liabilities   (395 )     (28 )     (490 )     46  
    Income taxes payable   (36 )     23       (51 )     4  
    Revenues and royalties payable   95       53       109       139  
    Other   54       (33 )     104       (12 )
       Net cash provided by (used in) operating activities   1,209       1,358       4,072       4,296  
    Cash flows from investing activities:              
    Drilling, completions, infrastructure and midstream additions to oil and natural gas properties   (688 )     (684 )     (1,934 )     (2,052 )
    Property acquisitions   (7,791 )     (168 )     (7,994 )     (1,193 )
    Proceeds from sale of assets   207       868       459       1,400  
    Other   106       (1 )     103       (14 )
       Net cash provided by (used in) investing activities   (8,166 )     15       (9,366 )     (1,859 )
    Cash flows from financing activities:              
    Proceeds under term loan agreement   1,000       —       1,000       —  
    Proceeds from borrowings under credit facilities   1,011       1,015       1,185       4,466  
    Repayments under credit facilities   (1,073 )     (1,332 )     (1,333 )     (4,368 )
    Proceeds from senior notes   —       —       5,500       —  
    Repayment of senior notes   —       —       (25 )     (134 )
    Repurchased shares under buyback program   (515 )     (56 )     (557 )     (709 )
    Repurchased shares/units under Viper’s buyback program   —       (10 )     —       (67 )
    Proceeds from partial sale of investment in Viper Energy, Inc.   —       —       451       —  
    Net proceeds from Viper’s issuance of common stock   476       —       476       —  
    Dividends paid to stockholders   (416 )     (149 )     (1,316 )     (841 )
    Dividends/distributions to non-controlling interest   (59 )     (25 )     (157 )     (84 )
    Other   (5 )     (7 )     (142 )     (34 )
       Net cash provided by (used in) financing activities   419       (564 )     5,082       (1,771 )
    Net increase (decrease) in cash and cash equivalents   (6,538 )     809       (212 )     666  
    Cash, cash equivalents and restricted cash at beginning of period   6,911       21       585       164  
    Cash, cash equivalents and restricted cash at end of period $ 373     $ 830     $ 373     $ 830  
     
    Diamondback Energy, Inc.
    Selected Operating Data
    (unaudited)
               
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Production Data:          
    Oil (MBbls)   29,537       25,129       24,482  
    Natural gas (MMcf)   66,519       51,310       49,423  
    Natural gas liquids (MBbls)   11,918       9,514       8,943  
    Combined volumes (MBOE)(1)   52,541       43,195       41,662  
               
    Daily oil volumes (BO/d)   321,054       276,143       266,109  
    Daily combined volumes (BOE/d)   571,098       474,670       452,848  
               
    Average Prices:          
    Oil ($ per Bbl) $ 73.13     $ 79.51     $ 81.57  
    Natural gas ($ per Mcf) $ (0.26 )   $ 0.10     $ 1.62  
    Natural gas liquids ($ per Bbl) $ 17.70     $ 17.97     $ 21.02  
    Combined ($ per BOE) $ 44.80     $ 50.33     $ 54.37  
               
    Oil, hedged ($ per Bbl)(2) $ 72.32     $ 78.55     $ 80.51  
    Natural gas, hedged ($ per Mcf)(2) $ 0.60     $ 1.03     $ 1.62  
    Natural gas liquids, hedged ($ per Bbl)(2) $ 17.70     $ 17.97     $ 21.02  
    Average price, hedged ($ per BOE)(2) $ 45.43     $ 50.89     $ 53.74  
               
    Average Costs per BOE:          
    Lease operating expenses $ 6.01     $ 5.88     $ 5.42  
    Production and ad valorem taxes   2.91       3.26       2.83  
    Gathering, processing and transportation expense   1.94       1.90       1.75  
    General and administrative – cash component   0.63       0.63       0.51  
    Total operating expense – cash $ 11.49     $ 11.67     $ 10.51  
               
    General and administrative – non-cash component $ 0.30     $ 0.44     $ 0.31  
    Depreciation, depletion, amortization and accretion per BOE $ 14.12     $ 11.18     $ 10.61  
    Interest expense, net $ 0.34     $ 1.02     $ 0.89  

    (1)   Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.
    (2)   Hedged prices reflect the effect of our commodity derivative transactions on our average sales prices and include gains and losses on cash settlements for matured commodity derivatives, which we do not designate for hedge accounting. Hedged prices exclude gains or losses resulting from the early settlement of commodity derivative contracts.


    NON-GAAP FINANCIAL MEASURES

    ADJUSTED EBITDA

    Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA as net income (loss) attributable to Diamondback Energy, Inc., plus net income (loss) attributable to non-controlling interest (“net income (loss)”) before non-cash (gain) loss on derivative instruments, net, interest expense, net, depreciation, depletion, amortization and accretion, depreciation and interest expense related to equity method investments, (gain) loss on extinguishment of debt, if any, non-cash equity-based compensation expense, capitalized equity-based compensation expense, merger and integration expenses, other non-cash transactions and provision for (benefit from) income taxes, if any. Adjusted EBITDA is not a measure of net income as determined by United States generally accepted accounting principles (“GAAP”). Management believes Adjusted EBITDA is useful because the measure allows it to more effectively evaluate the Company’s operating performance and compare the results of its operations from period to period without regard to its financing methods or capital structure. The Company adds the items listed above to net income (loss) to determine Adjusted EBITDA because these amounts can vary substantially from company to company within its industry depending upon accounting methods and book values of assets, capital structures and the method by which the assets were acquired. Further, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as determined in accordance with GAAP or as an indicator of the Company’s operating performance or liquidity. Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historic costs of depreciable assets. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts.

    The following tables present a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP financial measure of Adjusted EBITDA:

    Diamondback Energy, Inc.
    Reconciliation of Net Income (Loss) to Adjusted EBITDA
    (unaudited, in millions)
               
      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023
    Net income (loss) attributable to Diamondback Energy, Inc. $ 659     $ 837     $ 915  
    Net income (loss) attributable to non-controlling interest   49       57       78  
    Net income (loss)   708       894       993  
    Non-cash (gain) loss on derivative instruments, net   (135 )     (46 )     52  
    Interest expense, net   18       44       37  
    Depreciation, depletion, amortization and accretion   742       483       442  
    Depreciation and interest expense related to equity method investments   15       23       18  
    Non-cash equity-based compensation expense   24       26       21  
    Capitalized equity-based compensation expense   (8 )     (7 )     (8 )
    Merger and integration expenses   258       3       1  
    Other non-cash transactions   (72 )     6       (12 )
    Provision for (benefit from) income taxes   210       252       276  
    Consolidated Adjusted EBITDA   1,760       1,678       1,820  
    Less: Adjustment for non-controlling interest   104       103       78  
    Adjusted EBITDA attributable to Diamondback Energy, Inc. $ 1,656     $ 1,575     $ 1,742  


    ADJUSTED NET INCOME

    Adjusted net income is a non-GAAP financial measure equal to net income (loss) attributable to Diamondback Energy, Inc. plus net income (loss) attributable to non-controlling interest (“net income (loss)”) adjusted for non-cash (gain) loss on derivative instruments, net, (gain) loss on extinguishment of debt, if any, merger and integration expense, other non-cash transactions and related income tax adjustments, if any. The Company’s computation of adjusted net income may not be comparable to other similarly titled measures of other companies or to such measure in our credit facility or any of our other contracts. Management believes adjusted net income helps investors in the oil and natural gas industry to measure and compare the Company’s performance to other oil and natural gas companies by excluding from the calculation items that can vary significantly from company to company depending upon accounting methods, the book value of assets and other non-operational factors. Further, in order to allow investors to compare the Company’s performance across periods, the Company excludes the effects of significant transactions that may affect earnings but are unpredictable in nature, timing and amount, although they may recur in different reporting periods.

    The following table presents a reconciliation of the GAAP financial measure of net income (loss) attributable to Diamondback Energy, Inc. to the non-GAAP measure of adjusted net income:

    Diamondback Energy, Inc.
    Adjusted Net Income
    (unaudited, $ in millions except per share data, shares in thousands)
       
      Three Months Ended September 30, 2024
      Amounts   Amounts Per
    Diluted Share
    Net income (loss) attributable to Diamondback Energy, Inc.(1) $ 659     $ 3.19  
    Net income (loss) attributable to non-controlling interest   49       0.24  
    Net income (loss)(1)   708       3.43  
    Non-cash (gain) loss on derivative instruments, net   (135 )     (0.66 )
    Merger and integration expense   258       1.26  
    Other non-cash transactions   (72 )     (0.35 )
    Adjusted net income excluding above items(1)   759       3.68  
    Income tax adjustment for above items   (12 )     (0.06 )
    Adjusted net income(1)   747       3.62  
    Less: Adjusted net income attributable to non-controlling interest   49       0.24  
    Adjusted net income attributable to Diamondback Energy, Inc.(1) $ 698     $ 3.38  
           
    Weighted average common shares outstanding:      
    Basic     204,730  
    Diluted     204,730  

    (1) The Company’s earnings (loss) per diluted share amount has been computed using the two-class method in accordance with GAAP. The two-class method is an earnings allocation which reflects the respective ownership among holders of common stock and participating securities. Diluted earnings per share using the two-class method is calculated as (i) net income attributable to Diamondback Energy, Inc, (ii) less the reallocation of $6 million in earnings attributable to participating securities, (iii) divided by diluted weighted average common shares outstanding.


    OPERATING CASH FLOW BEFORE WORKING CAPITAL CHANGES AND FREE CASH FLOW

    Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to changes in operating assets and liabilities. The Company believes operating cash flow before working capital changes is a useful measure of an oil and natural gas company’s ability to generate cash used to fund exploration, development and acquisition activities and service debt or pay dividends. The Company also uses this measure because changes in operating assets and liabilities relate to the timing of cash receipts and disbursements that the Company may not control and may not relate to the period in which the operating activities occurred. This allows the Company to compare its operating performance with that of other companies without regard to financing methods and capital structure.

    Free Cash Flow, which is a non-GAAP financial measure, is cash flow from operating activities before changes in working capital in excess of cash capital expenditures. The Company believes that Free Cash Flow is useful to investors as it provides measures to compare both cash flow from operating activities and additions to oil and natural gas properties across periods on a consistent basis as adjusted for non-recurring tax impacts from divestitures, merger and integration expenses, the early termination of derivative contracts and settlements of treasury locks. These measures should not be considered as an alternative to, or more meaningful than, net cash provided by operating activities as an indicator of operating performance. The Company’s computation of Free Cash Flow may not be comparable to other similarly titled measures of other companies. The Company uses Free Cash Flow to reduce debt, as well as return capital to stockholders as determined by the Board of Directors.

    The following tables present a reconciliation of the GAAP financial measure of net cash provided by operating activities to the non-GAAP measure of operating cash flow before working capital changes and to the non-GAAP measure of Free Cash Flow:

    Diamondback Energy, Inc.
    Operating Cash Flow Before Working Capital Changes and Free Cash Flow
    (unaudited, in millions)
                   
      Three Months Ended September 30,   Nine Months Ended September 30,
        2024       2023       2024       2023  
    Net cash provided by operating activities $ 1,209     $ 1,358     $ 4,072     $ 4,296  
    Less: Changes in cash due to changes in operating assets and liabilities:              
    Accounts receivable   106       (256 )     61       (218 )
    Income tax receivable   —       103       12       267  
    Prepaid expenses and other current assets   (11 )     (8 )     78       5  
    Accounts payable and accrued liabilities   (395 )     (28 )     (490 )     46  
    Income taxes payable   (36 )     23       (51 )     4  
    Revenues and royalties payable   95       53       109       139  
    Other   54       (33 )     104       (12 )
    Total working capital changes   (187 )     (146 )     (177 )     231  
    Operating cash flow before working capital changes   1,396       1,504       4,249       4,065  
    Drilling, completions, infrastructure and midstream additions to oil and natural gas properties   (688 )     (684 )     (1,934 )     (2,052 )
    Total Cash CAPEX   (688 )     (684 )     (1,934 )     (2,052 )
    Free Cash Flow   708       820       2,315       2,013  
    Tax impact from divestitures(1)   —       64       —       64  
    Merger and integration expenses   258       —       273       —  
    Early termination of derivatives   37       —       37       —  
    Treasury locks   —       —       25       —  
    Adjusted Free Cash Flow $ 1,003     $ 884     $ 2,650     $ 2,077  

    (1) Includes the tax impact for the disposal of certain Midland Basin water assets and Delaware Basin oil gathering assets.


    NET DEBT

    The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and unamortized basis adjustments) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful than, total debt, the most directly comparable GAAP measure. Management uses net debt to determine the Company’s outstanding debt obligations that would not be readily satisfied by its cash and cash equivalents on hand. The Company believes this metric is useful to analysts and investors in determining the Company’s leverage position because the Company has the ability to, and may decide to, use a portion of its cash and cash equivalents to reduce debt.

    Diamondback Energy, Inc.
    Net Debt
    (unaudited, in millions)
                           
      September 30,
    2024    		   Net Q3
    Principal
    Borrowings/
    (Repayments)    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023    		   September 30,
    2023
      (in millions)
    Diamondback Energy, Inc.(1) $ 12,284     $ 1,115     $ 11,169     $ 5,669     $ 5,697     $ 5,697  
    Viper Energy, Inc.(1)   830       (177 )     1,007       1,103       1,093       680  
    Total debt   13,114     $ 938       12,176       6,772       6,790       6,377  
    Cash and cash equivalents   (370 )         (6,908 )     (896 )     (582 )     (827 )
    Net debt $ 12,744         $ 5,268     $ 5,876     $ 6,208     $ 5,550  

    (1)  Excludes debt issuance costs, discounts, premiums and unamortized basis adjustments.


    DERIVATIVES

    As of November 1, 2024, the Company had the following outstanding consolidated derivative contracts, including derivative contracts at Viper Energy, Inc. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing and Crude Oil Brent pricing and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.

      Crude Oil (Bbls/day, $/Bbl)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025   FY2026
    Long Puts – Crude Brent Oil 82,000   52,000   33,000   10,000   —   —
    Long Put Price ($/Bbl) $57.44   $60.00   $60.00   $60.00   —   —
    Deferred Premium ($/Bbl) $-1.52   $-1.48   $-1.50   $-1.63   —   —
    Long Puts – WTI (Magellan East Houston) 35,000   58,000   46,000   22,000   —   —
    Long Put Price ($/Bbl) $57.57   $56.21   $55.22   $55.00   —   —
    Deferred Premium ($/Bbl) $-1.61   $-1.58   $-1.56   $-1.64   —   —
    Long Puts – WTI (Cushing) 125,000   138,000   109,000   38,000   —   —
    Long Put Price ($/Bbl) $57.28   $56.63   $55.73   $55.00   —   —
    Deferred Premium ($/Bbl) $-1.61   $-1.58   $-1.56   $-1.50   —   —
    Costless Collars – WTI (Cushing) 46,000   13,000   —   —   —   —
    Long Put Price ($/Bbl) $60.87   $60.00   —   —   —   —
    Short Call Price ($/Bbl) $89.91   $89.55   —   —   —   —
    Basis Swaps – WTI (Midland) 43,000   58,000   45,000   45,000   45,000   —
    $1.18   $1.10   $1.08   $1.08   $1.08   —
    Roll Swaps – WTI 40,000   —   —   —   —   —
    $0.82   —   —   —   —   —
      Natural Gas (Mmbtu/day, $/Mmbtu)
      Q4 2024   Q1 2025   Q2 2025   Q3 2025   Q4 2025   FY 2026
    Costless Collars – Henry Hub 398,261   690,000   630,000   630,000   630,000   80,000
    Long Put Price ($/Mmbtu) $2.78   $2.53   $2.49   $2.49   $2.49   $2.50
    Ceiling Price ($/Mmbtu) $6.53   $5.41   $5.46   $5.46   $5.46   $5.95
    Natural Gas Swaps – Henry Hub 13,370   —   —   —   —   —
    $3.23   —   —   —   —   —
    Natural Gas Basis Swaps – Waha Hub 471,630   650,000   590,000   590,000   590,000   10,000
    $-1.11   $-0.80   $-0.83   $-0.83   $-0.83   $-1.25

    Investor Contact:
    Adam Lawlis
    +1 432.221.7467
    alawlis@diamondbackenergy.com

    The MIL Network –

  • MIL-OSI: Letter to Stockholders Issued By Diamondback Energy, Inc.

    Source: GlobeNewswire (MIL-OSI)

    MIDLAND, Texas, Nov. 04, 2024 (GLOBE NEWSWIRE) —

    Diamondback Stockholders,

    This letter is meant to be a supplement to our earnings release and is being furnished to the Securities and Exchange Commission (SEC) and released to our stockholders simultaneously with our earnings release. Please see the information regarding forward-looking statements and non-GAAP financial information included at the end of this letter.

    Endeavor Closing:
    Diamondback closed the Endeavor transaction on September 10th, which began the next chapter of the Company’s short history. In just under two months, the Diamondback and Endeavor teams have worked quickly towards a seamless integration. We onboarded more than 1,000 employees, moved over 650 combined offices and began working as one functional organization in the first week post-close.

    The teams have already begun sharing best practices, which we witnessed in our first pro forma quarterly operations reviews a few weeks ago. At a high level, we have essentially merged two teams of basin experts. While we were once competitors, we can now share best practices and learnings from years of drilling and completing wells in the Midland Basin with what we believe is more combined data and basin experience than any competitor. This is a synergy that could not be modeled in our spreadsheet when the deal was announced, but I am confident this will accrue to the benefit of our stockholders in short order.

    We are ahead of schedule in delivering the operational synergies we promised in conjunction with the merger. Our drilling and completions teams have already implemented the two most significant operational synergies: clear fluids for drilling and SimulFrac for completions. All our development in the fourth quarter will be executed with SimulFrac completions crews, with spot crews to be used for single-well tests like the Barnett Shale in the Midland Basin. On the drilling side, as of today, all of our rigs are operating with clear fluid drilling systems, and we have already seen wells on legacy Endeavor acreage drilled below post-synergy-expected cost per lateral foot.

    At time of deal announcement, we promised to drill and complete wells for $625 per lateral foot in 2025 on Endeavor’s acreage. I can say that today, in real time and two months post-announcement, we are averaging $600 per lateral foot across the combined Company – above expectations and ahead of schedule.

    We are also actively learning from the Endeavor teams. On the execution front, we are optimistic about application and integration of some early learnings around the post-completion, drill-out process and believe there to be significant best practices to be shared across the combined production operations groups. We are also closely studying the various completion designs from the two companies and are confident the combination of the best completion design with the lowest cost execution will be a winning formula.

    As a result, I could not be more excited about the early progress from integration and remain confident in the team’s ability to meet or exceed the synergies promised at deal announcement.

    TRP Energy (“TRP”) Asset Trade:
    Our new combined acreage footprint has given us the flexibility to look at different opportunities across the Permian Basin. This is exemplified by a trade we just executed, where we signed an exchange agreement with TRP that allows us to play offense in our backyard by swapping a PDP-heavy asset in the Delaware Basin for a Midland Basin asset with more near-term development potential. In exchange for our Vermejo asset and ~$238 million in cash, we will receive TRP’s Midland Basin asset, which consists of approximately 15,000 net acres located in Upton and Reagan counties. The asset we will acquire in this trade has 55 remaining undeveloped operated locations, the majority of which compete for capital right away. The trade is expected to be accretive to our 2025 Cash Flow and Free Cash Flow per share and will high grade our inventory. We expect this trade to close by year-end, subject to customary regulatory approvals and closing conditions.

    We will also continue to look for ways to improve our asset base, whether it be through traditional trades to be able to drill longer laterals and increase operated working interests or “out of the box” ideas such as TRP.

    Third Quarter Operational Performance:
    I am proud of our team’s ability to execute regardless of the circumstances and the third quarter was no exception. Our team put operations first even as many moved offices, integrated new team members and began to understand a large new asset. We are currently running 20 drilling rigs and expect to be down to 18 operated rigs by year-end. What we originally expected to drill with 22 – 24 rigs in 2025, we now expect we can drill with closer to 18 rigs. This is purely based on continued efficiency gains, a testament to the prowess of our drilling organization.

    On the completions side of the business, we are currently running four SimulFrac crews, three of which are electric. We continue to exceed our original key performance indicators for 2024. We are completing on average nearly 4,000 lateral feet per day per crew, 30% more than we originally planned heading into the year. This increase is driven by higher pumping hours per day, higher average pump rates, lower swap times per stage and faster move times between pads.

    Production:
    For the quarter, Diamondback produced 321.1 MBO/d (571.1 MBOE/d), above the high end of the guidance range of 319 – 321 MBO/d (565 – 569 MBOE/d) that we released in October. As a reminder, this third quarter production incorporates twenty-one days of legacy Endeavor production. Well performance continues to meet or exceed expectations in our core Midland Basin position, setting us up well to continue to execute and achieve additional capital efficiency gains.

    For the fourth quarter of 2024, we expect to produce 470 – 475 MBO/d (840 – 850 MBOE/d). This includes a minor contribution from Viper’s closed acquisition of Tumbleweed. It also shows we expect to hit pro forma production expectations sooner than originally expected.

    Capital Expenditures:
    In the third quarter, we spent $688 million on capital expenditures, which is in the middle of our updated guidance range of $675 – $700 million. For the fourth quarter, we expect to spend $950 – $1,050 million of capex.

    The macro environment for oil prices and near-term global oil supply and demand dynamics remains volatile at best and tenuous at worst. Diamondback’s base case 2025 plan is still what was laid out with the Endeavor merger announcement in February (“generate oil production of 470 – 480 MBO/d (800 – 825 MBOE/d) with a capital budget of approximately $4.1 – $4.4 billion”), with oil production expected to increase by approximately 5 MBO/d due to contribution from the Viper Tumbleweed acquisition.

    On the other hand, we are actively working all our options for 2025, including continuing to refine this base case plan. Should oil prices weaken from current levels, we will make the correct capital allocation decision and focus on Free Cash Flow generation and capital efficiency over oil volumes. Our size, scale, cost structure and inventory quality position us well for whatever direction the macro decides to take. Our return of capital program, combined with a strong balance sheet, allows us to increase stockholder returns when volatility increases.

    Operating Costs:
    Total cash operating costs decreased slightly quarter over quarter to $11.49 per BOE. Lease operating expense (“LOE”) in the third quarter was $6.01 per BOE, within our annual guidance range of $5.90 – $6.40 per BOE. Cash G&A was $0.63 within our annual guidance range of $0.55 – $0.65 per BOE. We have announced a preliminary look at run rate pro forma operating expenses and expect to solidify these numbers when we update the market for 2025 unit cost guidance. DD&A increased quarter over quarter to $14.12 as a result of the Endeavor assets being added to our balance sheet.

    Financial Performance and Return of Capital:
    Diamondback generated $1.2 billion of net cash provided by operating activities and operating cash flow before working capital changes of $1.4 billion. Adjusted Free Cash Flow was $1.0 billion. Unique to this quarter, we adjusted Free Cash Flow upwards to account for two one-time items: $258 million of merger and integration expense and $37 million of costs associated with unwinding a portion of our outstanding swap to floating interest rate hedges.

    We will return ~78% of that Adjusted Free Cash Flow to stockholders through our base dividend and share repurchases. Our willingness to go above our base 50% return threshold was driven by our opportunistic share repurchase program, as we bought back ~$515 million worth of common stock at an average price of $176.40 / share in the third quarter. This includes 2 million shares repurchased for ~$350 million at a price of $175.11 per share in conjunction with the September secondary offering, where legacy Endeavor stockholders sold approximately 14.4 million shares. Diamondback’s participation in the offering is consistent with our opportunistic repurchase methodology, leaning into our repurchase program when we view our stock to be attractively valued at mid-cycle oil pricing.

    We have continued to be active repurchasing shares in the fourth quarter, and quarter to date have bought back over $185 million worth of shares at an average share price of approximately $180.13.

    As previously announced, our Board recently increased our share repurchase authorization to $6.0 billion from $4.0 billion previously. This gives us the flexibility to allocate capital appropriately and buy back shares in times of market stress.

    Balance Sheet:
    At quarter-end, we had approximately $13.1 billion of gross debt and $12.7 billion of net debt. We ended the quarter with $2.6 billion of liquidity at Diamondback, as we increased our borrowing base and elected commitments on our revolving credit facility to $2.5 billion from $1.6 billion previously.

    In September, we also received upgrades from two of the three rating agencies, as S&P upgraded us to BBB from BBB- and Fitch moved us to BBB+ from BBB. Moody’s remained at Baa2.

    As we have stated previously, our near-term goal is to lower consolidated net debt below $10 billion, which we expect to achieve through Free Cash Flow generation and proceeds from non-core asset sales. Our long-term priority is to maintain a leverage ratio of approximately 0.5x at mid-cycle oil pricing, or approximately $6 to $8 billion of net debt. We feel we can achieve this goal within the next couple of years solely by dedicating 50% of Free Cash Flow to debt paydown, while reserving the ability to flex up stockholder returns through opportunistic stock repurchases at times of excessive market volatility or one-time events such as secondary equity sell-downs.

    Other Business:
    We continue to use our equity method investments as valuable tools to improve our core operating business while also generating impressive returns, adding significant cash to our balance sheet. As we previously announced in July, Energy Transfer LP completed its acquisition of WTG Midstream Holdings LLC (“WTG”). Additionally, during the third quarter we completed the sale of our 4% interest in the Wink to Webster Pipeline.

    With the sales of WTG and Wink to Webster complete, we now have three equity method investments remaining in our portfolio: the EPIC crude pipeline (“EPIC”), the BANGL Y-grade NGL pipeline and the Deep Blue sustainable water management company. We recently increased our ownership in EPIC from 10.0% to 27.5% and are excited about the growth potential of this long-haul crude pipe as well as our other investments. As such, we do not feel now is the right time to monetize these assets.

    We continue to believe we can add significant value to our minerals company Viper (NASDAQ: VNOM) and Deep Blue through the potential drop down of Endeavor overrides and minerals to Viper and the sale of Endeavor’s extensive water infrastructure to Deep Blue, potentially accelerating our de-leveraging efforts in early 2025.

    We are also excited about what we see as the next wave of equity method investments for Diamondback: power generation and potentially data center development. By leveraging our 65,000 surface acres in West Texas, cheap natural gas and abundant supply of produced water, we believe we can be a premier partner in this new wave of development. By generating our own in-basin power, we can solve two long-term issues that have plagued the Permian Basin: the need for natural gas egress and cheap, reliable electricity. We look forward to updating our stockholders on our progress on these initiatives in the coming quarters.

    Closing:
    2024 has been a transformative year for Diamondback. We are intensely focused on delivering on the promises we made to the market around synergies and believe, eight weeks in, we have a significant head start relative to original expectations.

    Thank you for your ongoing support and interest in Diamondback Energy.

    Travis D. Stice
    Chairman of the Board and Chief Executive Officer

    Investor Contact:
    Adam Lawlis
    +1 432.221.7467
    alawlis@diamondbackenergy.com

    Forward-Looking Statements:

    This letter contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding future performance; business strategy; future operations (including drilling plans and capital plans); estimates and projections of revenues, losses, costs, expenses, returns, cash flow, and financial position; reserve estimates and its ability to replace or increase reserves; anticipated benefits or other effects of strategic transactions (including the recently completed Endeavor merger and other acquisitions or divestitures); the expected amount and timing of synergies from the Endeavor merger; and plans and objectives of management (including plans for future cash flow from operations and for executing environmental strategies) are forward-looking statements. When used in this letter, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Diamondback believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond Diamondback’s control. Accordingly, forward-looking statements are not guarantees of future performance and actual outcomes could differ materially from what Diamondback has expressed in its forward-looking statements.

    Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine and the Israel-Hamas war on the global energy markets and geopolitical stability; instability in the financial markets; concerns over a potential economic slowdown or recession; inflationary pressures; higher interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production, or governmental orders, rules or regulations that impose production limits; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change; those risks described in Item 1A of Diamondback’s Annual Report on Form 10-K, filed with the SEC on February 22, 2024, and those risks disclosed in its subsequent filings on Forms 10-Q and 8-K, which can be obtained free of charge on the SEC’s website at http://www.sec.gov and Diamondback’s website at www.diamondbackenergy.com/investors.

    In light of these factors, the events anticipated by Diamondback’s forward-looking statements may not occur at the time anticipated or at all. Moreover, Diamondback operates in a very competitive and rapidly changing environment and new risks emerge from time to time. Diamondback cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements. All forward-looking statements speak only as of the date of this letter or, if earlier, as of the date they were made. Diamondback does not intend to, and disclaims any obligation to, update or revise any forward-looking statements unless required by applicable law.

    Non-GAAP Financial Measures

    This letter includes financial information not prepared in conformity with generally accepted accounting principles (GAAP), including free cash flow. The non-GAAP information should be considered by the reader in addition to, but not instead of, financial information prepared in accordance with GAAP. A reconciliation of the differences between these non-GAAP financial measures and the most directly comparable GAAP financial measures can be found in Diamondback’s quarterly results posted on Diamondback’s website at www.diamondbackenergy.com/investors/. Furthermore, this letter includes or references certain forward-looking, non-GAAP financial measures. Because Diamondback provides these measures on a forward-looking basis, it cannot reliably or reasonably predict certain of the necessary components of the most directly comparable forward-looking GAAP financial measures, such as future impairments and future changes in working capital. Accordingly, Diamondback is unable to present a quantitative reconciliation of such forward-looking, non-GAAP financial measures to the respective most directly comparable forward-looking GAAP financial measures. Diamondback believes that these forward-looking, non-GAAP measures may be a useful tool for the investment community in comparing Diamondback’s forecasted financial performance to the forecasted financial performance of other companies in the industry.

    The MIL Network –

  • MIL-OSI Australia: We assist and assure the tax compliance of large corporate groups

    Source: Australian Department of Revenue

    How we engage with large corporate groups

    One of our strategic aims is to sustainably reduce the tax gap. We know old approaches centred on active compliance programs of reviews and audits will not achieve that aim. Instead, our first focus is on active prevention.

    We believe the majority of taxpayers prefer to avoid tax risk where possible. To do so, they need to know where our concerns lie and our compliance stance on various aspects of the law or areas of the economy. Our goal is to only have taxpayers entering into disputes with us where they know what our position is and have made a conscious decision to operate contrary to it.

    To achieve this goal, we’re more explicit about where we have concerns. We communicate our thinking across all aspects of our compliance activities. We’re more creative and flexible in the type and form of guidance we produce. This means we now have tailored guidance products for specific purposes as well as our traditional public rulings.

    Public guidance also supports community confidence in the system by letting the public know we are identifying and dealing with matters of concern.

    Through early engagement and private advice, we also work directly with large corporate groups. This helps to identify higher risk transactions and reduce disputes. It allows us to work with the taxpayer to agree on the appropriate tax treatment before they lodge their tax return.

    Sometimes we can’t avoid disputes, and we’ll pursue matters through audit and to litigation where necessary. The community expects us to take strong action against deliberate non-compliance where we find it. A credible compliance presence also deters others from pushing the bounds of acceptable behaviour.

    Population-wide approaches to preventing non-compliance

    Large corporate groups have multiple tax obligations. The complexity in fulfilling these obligations can be costly. We’re improving the system to give more certainty and reduce corporate administrative costs. This includes continuing our focus on public guidance.

    We’ll continue to monitor the environment to understand what’s happening in the economy, tax system and business. This will ensure we provide relevant and timely guidance.

    We’ll also consult with stakeholders on their needs, so our advice is practical and contemporary. This consultation has already resulted in us developing new guidance products.

    Law companion rulings

    Law companion rulings (LCRs) provide practical certainty, in the form of a public ruling, on how we will apply significant new law. LCRs cover income tax, super and GST measures.

    Recent LCRs include:

    • LCR 2021/1 OECD hybrid mismatch rules – targeted integrity rule
    • LCR 2021/3 Temporary full expensing.

    Practical compliance guidelines

    Practical compliance guidelines (PCGs) are designed to provide a practical compliance solution where there is uncertainty, impracticality or discord between the law and current commercial practices. They may also provide our view of what constitutes a low or high-risk activity or arrangement in relation to a specific area of the law. PCGs issued cover income tax, excise and GST matters.

    Recent PCGs include:

    • PCG 2021/1 Application of market value substitution rules when there is a buy-back or redemption of hybrid securities – methodologies for determining market value for investors holding their securities on capital account
    • PCG 2021/5 Imported hybrid mismatch rule – ATO’s compliance approach
    • PCG 2024/1 Intangibles migration arrangements.

    Taxpayer alerts

    We use taxpayer alerts to flag arrangements of concern with the community, taxpayers and advisers.

    Each taxpayer alert describes an arrangement and our concerns about it. Taxpayer alerts don’t provide our interpretation of the law but outline where we currently have concerns and what we’re doing to address them. They also invite taxpayers to seek advice from independent advisers or us. We encourage this if they have or are considering entering into a similar arrangement as described in an alert.

    Taxpayer alerts help taxpayers and their advisers make more informed decisions. They stop the proliferation of tax schemes. They also support community confidence in the tax system.

    Recent taxpayer alerts include:

    • TA 2020/1 Non-arm’s length arrangements and schemes connected with the development, enhancement, maintenance, protection and exploitation of intangible assets
    • TA 2020/2 Mischaracterised arrangements and schemes connected with foreign investment into Australian entities
    • TA 2020/3 Arrangements involving interposed offshore entities to avoid interest withholding tax
    • TA 2020/4 Multiple entry consolidated groups avoiding capital gains tax through the transfer of assets to an eligible tier-1 company prior to divestment
    • TA 2020/5 Structured arrangements that provide imputation benefits on shares acquired where economic exposure is offset through use of derivative instruments
    • TA 2022/2 Treaty shopping arrangements to obtain reduced withholding tax rates.

    Working with the tax profession

    Advisers play an important role helping taxpayers meet their tax and super obligations. Because the laws are complex, we encourage taxpayers to seek high quality tax advice.

    Most tax professionals provide support for the integrity of the tax system. We work with the tax profession and explain our concerns to them at the earliest opportunity. In this way, we support them to provide appropriate advice to their clients. We also use our strong relationships with tax professionals and their representative bodies to develop our approaches.

    The Large Market Tax Advisor Principles (published August 2022) are a voluntary framework developed by the 4 largest tax advisory firms with input from the ATO and Tax Practitioners BoardExternal Link (TPB). All firms offering tax advisory services may choose to adopt the principles.

    The 4 firms have each published the principles and explanatory information on their websites, see:

    Firms that adopt and follow the principles provide added confidence to their clients, the community and the ATO about the quality of their tax advice. Adopting the framework provides confidence the firm has processes in place aimed at preventing it from being involved in proscribed engagements and particular governance arrangements for when it is advising on higher risk engagements.

    We do not regulate the framework, but we will work closely with the firms to understand how the principles are operating in practice.

    The design and publication of the framework is a positive innovation for the Australian tax profession. Increasing transparency of the role of advisers further strengthens the integrity of the tax system.

    We also seek to positively influence ethical and professional standards in a range of areas relevant to tax advisers.

    We’ll act quickly with advisers who undermine the integrity of the tax system or facilitate non-compliance. In addition to the regulatory work of the TPB, we collaborate with professional associations to uphold the reputation of the tax profession. In serious cases, promoter penalty laws may apply to promoters of tax avoidance schemes.

    The types of behaviour that cause us concern include:

    • engaging in conduct designed to frustrate and prevent the collection of facts and information and the proper administration of tax laws
    • the promotion of tax avoidance schemes.

    On 6 August 2023, the Government announced a range of reform measures to strengthen the regulatory framework to combat advisor misconduct, focused on deterring the promotion of tax exploitation schemes to large market taxpayers. We will act quickly and decisively to ensure the tax system is protected from abuse.

    Using our formal information gathering powers

    We issue formal notices to advisers and their firms known to be associated with arrangements covered by our taxpayer alerts. The notices ask for information and documents for taxpayers to whom they provided advice.

    We issue the notices to identify:

    • information about the involvement of certain known taxpayers in the schemes
    • any other taxpayers who may have been involved in the schemes
    • who designed the schemes, why they were designed and the processes involved in their design
    • what promotion of these schemes has taken place.

    We pursue a range of cases to obtain documents, including testing claims for legal professional privilege, and for the consequences of breaching information notices, which include criminal sanctions.

    Legal professional privilege

    Legal professional privilege (LPP) protects confidential communications between a lawyer and their client for the dominant purpose of providing or seeking legal advice. LPP also protects confidential communications prepared for the dominant purpose of actual or reasonably anticipated legal proceedings.

    LPP is an important common law right, as it:

    • protects a client’s privacy
    • encourages full disclosure between the client and their lawyer when obtaining and providing legal advice or services.

    We want taxpayers to get high quality advice, as this underpins the self-assessment system. Most advisers, whether at accounting or law firms, provide this and support the tax system.

    We had been concerned that in some instances, taxpayers and their advisers were incorrectly claiming LPP in an attempt to withhold material facts and evidence from us.

    In some cases, it appeared that non-legal services or services provided by non-lawyers had been artificially packaged under a purported legal services engagement to support a subsequent LPP claim.  In other cases, we saw:

    • blanket claims of privilege being made over thousands or tens of thousands of documents
    • the over-claiming of privilege
    • a lack of transparency in claims.

    This risked constraining the application of the law for the provision of information to us and hindering our audit function.

    These issues largely arose in large business privilege claims where we had issued a notice requiring them to produce information as part of an audit. In most of our engagements with large businesses, they provide us with information we need and we do not experience difficulties with managing LPP claims.

    In recognition of the need for greater coverage in education and better practices to improve its use and understanding, we developed the Compliance with formal notices – claiming legal professional privilege in response to formal notices – Legal professional privilege protocol (LPP Protocol).

    This protocol:

    • helps taxpayers and advisers making LPP claims in response to requests for information and documents we make under our formal information gathering powers
    • contains our recommended approach for identifying communications covered by LPP and making LPP claims to us
    • will result in a more efficient resolution of LPP claims for taxpayers and the ATO if steps are followed and properly embedded in a firm’s engagement and legal services practices.

    Businesses that choose not to follow the protocol and do not provide sufficient information to support their LPP claims can expect further enquiries from us.

    One-to-one engagement with large corporate groups

    We engage one-to-one with large corporate groups. This gives us assurance over approximately two-thirds of all corporate income tax.

    Differentiated engagement

    We assess the risk of each corporate group in the entire population based on our professional judgment of the:

    • transparency of their engagement with us
    • choices and behaviours evidenced in their tax affairs
    • level of risk they exhibit.

    We use the outcomes of our assessment to tailor our engagement with each large corporate group.

    Given Australia’s highly concentrated corporate tax base and the significant impact the Top 100 public and multination businesses can have on the health of our tax system, we engage with them on an ongoing basis to manage their compliance and assure their tax performance.

    We seek to clarify issues and risks as they arise. Being transparent about issues that concern us provides a catalyst to resolve them early.

    For more information about our differentiated engagement, see:

    How we gain confidence the right amount of tax is being paid

    We’re focusing on whole-of-taxpayer profiling and risk assessment using our justified trust methodology. This helps us understand the taxpayer’s business model and any tax planning motivation and opportunities they may have.

    The profile and risks involved tell us what we need to do to gain confidence each taxpayer is paying the right amount of tax.

    We’re taking a structured approach to gain this confidence by considering:

    • the taxpayer’s tax risk management and governance framework
    • whether the taxpayer is involved in any arrangements we’ve indicated we’re concerned about or consider high risk
    • understanding the tax impacts of current business activities, particularly any significant and new transactions the taxpayer has entered into
    • if the taxpayer’s accounting and tax or GST results vary, understanding why this is the case.

    Our effective tax borne (ETB) methodology provides an approach to analyse the income tax and economic performance of corporate groups. It identifies an economic group’s worldwide profit from Australian-linked business activities and the Australian and offshore tax paid on that profit.

    Essentially, the ETB determines the weighted average of the cash tax paid ratios (cash tax paid over Australian-linked profits) for each jurisdiction. Analysing and understanding a taxpayer’s ETB provides evidence of the absence of risk and assists in identifying risk.

    For more information see Appendix 3External Link – Senate Economics References Committee report on corporate tax avoidance.

    Helping corporates strengthen their tax governance

    We developed the Tax risk management and governance review guide primarily for large public businesses. It articulates better practices that boards and management can adopt to enhance governance and manage tax risk.

    The guide is designed to help businesses self-evaluate their governance framework and manage their strategic and operational tax risks. It sets out what we believe to be better tax corporate governance practices. We also provide guidance for privately owned groups to help them develop or improve the effectiveness of their tax governance framework.

    Both guides are what we recommend, rather than mandate.

    Where we are satisfied that companies have strong and lived governance, we can have increased confidence in their financial and tax reporting.

    For more information, see Tax governance for privately owned groups.

    Active prevention: one-to-one

    We recognise that willing participation supports a healthy and strong tax system. Approaches that prevent tax risks support willing participation better than corrective approaches. Our one-to-one active prevention approach seeks to influence taxpayer behaviour. We get involved before the taxpayer reports the tax outcomes of their business transactions to us.

    We apply active prevention approaches to the largest corporate taxpayers. This is important because their compliance influences not only the revenue base but also the willing participation of other taxpayers. Our one-to-one prevention includes our:

    • pre-lodgment compliance reviews
    • private rulings
    • advance pricing arrangements.

    It may also include informal guidance and interactions.

    The key is that taxpayers have openly and transparently discussed their plans and their view of the tax implications. Active prevention succeeds when clients modify their behaviour based on the concerns we raise.

    We estimate the wider revenue effects of these strategies wherever possible. Most techniques are evidence-based. We use information supplied by clients to estimate the difference in tax paid due to engaging early. This allows us to understand their proposed tax position and the impact of shifting that position, where necessary.

    Private rulings

    Early engagement discussions are a key tool we use to assist large corporate groups seeking advice on complex transactions they are considering or have already implemented. These discussions allow for timely identification and management of tax risks. It enables businesses to enter into transactions with confidence.

    Taxpayers also have the option to provide a draft ruling for review and endorsement by us. We’ll still review the arrangement proposed and ensure the appropriate application of the law before any ruling is issued. This will deliver a more streamlined process and improve the client experience.

    We recognise taxpayers are not obliged to follow our advice under our self-assessment system. Where our risk identification processes have identified a concern, we may engage in compliance activities to test if the transaction is implemented in materially the same manner as described in the private ruling request.

    As part of our assurance reviews of the largest taxpayers, we seek confirmation of facts where we provided advice to ensure it has been followed.

    Pre-lodgment compliance reviews

    Pre-lodgment compliance reviews (PCRs) are a key approach to ensuring prevention before correction. Through early engagement and a transparent relationship, we are able to work with large corporate groups to identify and resolve potential compliance concerns as they arise and before tax returns are lodged.

    Advance pricing arrangements

    Advance pricing arrangements (APAs) lock in compliant outcomes by agreeing on the criteria for transfer prices in advance of transactions occurring. They can eliminate the need for costly post-lodgment reviews and audits. They also give the community more confidence in the compliance of multinational enterprises.

    Before we agree to an APA, we need to understand the entire value chain and allocation of profits globally. We apply the same structured approach we use to gain confidence in the tax paid by large corporate groups to our analysis to determine the basis for any APA we enter into. We don’t simply look at the immediate transaction between the Australian entity and the related party.

    Under an APA, taxpayers provide us with an annual compliance report. This demonstrates how they have complied with the terms of their APA.

    The APA and our review of the annual compliance reports assure us the taxpayer is reporting the appropriate revenue on these related party transactions in their tax returns.

    MIL OSI News –