Item 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Listing and Holders of Record

Our common stock is listed on the Nasdaq Global Select Market under the symbol “FANG”. There were 2,564 holders of record of our common stock on February 19, 2021.

Dividend Policy

On February 13, 2018, we announced the initiation of an annual cash dividend in the amount of $0.50 per share of our common stock payable quarterly which began with the first quarter of 2018. Beginning with the first quarter of 2019, the annual cash dividend was set at $0.75 per share of our common stock. Then, beginning with the fourth quarter of 2019, the annual cash dividend was increased to $1.50 per share for our common stock and, beginning with the fourth quarter of 2020, the annual cash dividend was further increased to $1.60 per share of our common stock. The decision to pay any future dividends is solely within the discretion of, and subject to approval by, our board of directors. Our board of directors’ determination with respect to any such dividends, including the record date, the payment date and the actual amount of the dividend, will depend upon our profitability and financial condition, contractual restrictions, restrictions imposed by applicable law and other factors that the board deems relevant at the time of such determination.

Unregistered Sales of Equity Securities

As previously disclosed in our Current Report on Form 8-K filed with the SEC on December 21, 2020, we entered into a definitive purchase and sale agreement, dated as of December 18, 2020, with Guidon and certain of Guidon’s affiliates to acquire approximately 32,500 net acres in the Northern Midland Basin and certain related oil and gas assets. Consideration for the Pending Guidon Acquisition consists of $375 million in cash and 10.6 million shares of our common stock, subject to adjustment. The shares to be issued in the Pending Guidon Acquisition will be issued in reliance upon the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) of the Securities Act as sales by an issuer not involving any public offering. We have agreed to file with the SEC, and use our reasonable best efforts to cause to be declared effective, a shelf registration statement registering for resale these shares within 60 days following the closing of the Pending Guidon Acquisition, which is expected to occur on February 26, 2021.

Repurchases of Equity Securities

Our common stock repurchase activity for the three months ended December 31, 2020 was as follows:

(1)The average price paid per share is net of any commissions paid to repurchase stock.

(2)In May 2019, our board of directors approved a stock repurchase program to acquire up to $2 billion of our outstanding common stock through December 31, 2020. This repurchase program was suspended beginning in the first quarter of 2020 and expired on December 31, 2020.