Economics : Break-Even

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Focus on the Most Economic Plays Reduces Commodity Risk Oil Breakevens by Basin (15% BTAX IRR)(1) Diamondback Core Permian 47.80 45.13 Development Areas 44.04 43.49 41.95 60 40.73 40.63 38.04 37.22 36.61 35.87 35.59 34.76 34.66 34.60 34.14 34.07 33.36 33.36 33.33 32.14 31.32 29.89 29.09 28.94 28.62 28.27 28.19 28.19 27.71 27.69 27.53 27.16 45 30 15 0 FANG has extensive inventory in 6 of the top Lower 48 oil plays US Total Hz Rig Count Top Oil Counties(2) Midland Delaware Cana / Woodford Williston Niobrara Eagle Ford Top 5 Oil Basins Hz Rigs Delaware 153 Midland 134 Eagle Ford 76 Cana 53 44 Williston 44 36 28 27 23 22 22 22 22 20 19 16 15 14 13 13 Karnes Weld Lea Loving Pecos Kingfisher Reagan Reeves Midland Eddy McKenzie Blaine Upton Grady Martin Howard FANG has a development portfolio significantly weighted to the most active counties in the US Source: Wall Street Research, Baker Hughes. 23 (1) (2) Per Wall Street research. Assumes NYMEX strip oil and gas prices as of 3/17/2017. Rig count data per Baker Hughes as of 4/28/2017.
Diamondback Energy, Inc.
May 2017

Delaware Basin Well Economics Summary Type Curve Wolfcamp A Total Well Cost 7.0 MM 700 350 Frac Stages 31 600 300 Lateral Length 7,000 ft. Cumulative Oil - MBO, Gas - MBOE Gross 1,862 Mboe 500 250 Oil - BOPD, Gas - BOEPD EUR Oil 712 Mbo Net 1,396 Mboe 400 200 F&D Cost 5.01 / Boe 300 150 IRR 200% 75 Oil NPV10 18.3 MM 200 100 IRR 150% IRR 65 Oil NPV10 14.7 MM 100 50 & IRR 92% NPV (1) 55 Oil 0 0 NPV10 11.1 MM 0 2 4 6 8 10 12 14 16 18 20 22 24 Producing Months IRR 57% 45 Oil Daily Oil Daily Wet Gas NPV10 7.6 MM Cumulative Oil Cumulative Wet Gas NYMEX NPV10 Breakeven 23.75 (1) Economics based on NYMEX prices and include 3.00/Mcf gas price, 4.00/Bbl deduct for oil, 0.97/Mcf deduct for gas, NGL pricing 30% of oil price. (2) Water disposal is assumed to be 0.75/bbl. (3) Total well cost includes 500K for allocated infrastructure. 16 16 CRZO
Carrizo Oil & Gas Inc.
May 2017

Updated Type Well Economics Drilling locations with <40/Bbl break-even prices Wolfcamp Eagle Ford Altamont Average lateral length 8,500 8,500 5,700 N/A Well spacing (acres) 150 150 40 60 80 -160 Distance between wells (feet) 770 770 330 500 IP 30 (Boe/d) 722 639 1,068 408 IP 30 (Bo/d) 534 475 772 335 Gross EUR (MBoe) 750 550 505 500 % Liquids 80% 72% 78% 75% Gross well costs (MM) 4.5 4.4 4.0 4.2 Break-even pricing (/Bbl)1 25.75 38.00 34.75 35.00 Average WI % 100% 97% 85% 70% Average NRI2 75% 73% 63% 59% Gross drilling locations 1,096 1,586 650 918 Assuming 55 (WTI) / 3.00 (HH) Pre-Tax IRR 57% 22% 58% 30% Pre-tax NPV (MM) 4.9 1.5 2.3 2.0 Assuming 65 (WTI) / 3.50 (HH) Pre-Tax IRR 72% 29% 99% 44% Pre-tax NPV (MM) 5.9 2.2 3.6 3.1 1 Break-even oil price (WTI) required to generate a 10 percent pre-tax IRR using latest well costs and 3.00 per MMBtu (HH). 2 Wolfcamp NRI does not include royalty relief according to sliding scale agreement; whereas economics do include royalty relief. 21
EP Energy Corp
May 2017

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