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November 2014 Investor Presentation Update – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Nov 5, 2014 · 26 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 1
    Investor Presentation November 2014
  2. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 2
    Diamondback Energy Acreage Diamondback Energy Overview Top Performing Developer of Horizontal Inventory Currently running 5 horizontal and 1 vertical rig Execution focus drives peer-leading performance Volume and Reserve Growth…
  3. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 3
    A Growth Story Average Daily Net Production (Mboe/d)1 Total Reserves Growth1 (MMboe) Proved Developed 75.7 Oil Gas/NGLs 2 Closed Acquisitions of Proved Developed 20.6 VNOM Proved Undeveloped 17.8 IPO 28.7 IPO 13.6 40.2 10.3 10.4 26.6…
  4. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 4
    Diamondback Energy - Financial Summary Revenue Growth1 ( in MMs) Hedging2 139.1 Oil Swaps 2014/2015 Average Bbls Per Day Average Price Per Bbl 127.0 IPO Fourth Quarter 14 LLS 8,989 95.16 98.0 First Quarter 15 LLS 6,344 95.57 75.9 57.8…
  5. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 5
    Peer Leading in Cash Margins Cash Margins Exceed Peers by Nearly 40%1,2,5 FANG Operating Expenses vs. Peers1,3,6 (/boe) FANG Peer Average FANG Realized Price (/boe) General and Administrative Peer Average Production & Ad Valorem Taxes…
  6. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 6
    Plans in Place to Continue LOE Reduction LOE Over Time (/boe) 1 15.00 7.92 6.49 6.47 6.19 FY2012 FY2013 1Q'14 2Q'14 3Q'14 (ex acquired) 2 Excluding our February 2014 and July 2014 acquisitions, LOE/boe would be 6.19 Recent acquisitions…
  7. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 7
    Widespread Lower Spraberry Success Well(s) County Achievement IP30/1,000 Gaines 6 Dawson Believed to be industrys first hz Lower Spraberry well in Upton Neal F Unit 8 1 Upton County; peak 30-day avg. 2-stream rate of 743 boe/d (83%…
  8. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 8
    Lower Spraberry Tests Significantly Outperforming Type Curve1 (1) Daily production normalized for operational shut-ins 8
  9. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 9
    Lower Spraberry Shale Regional Comparison Estes B Unit 1602LS 1 2 3 4 5 6 1-2 UL Mason Unit 2LS 3 UL Tawny 8-12 1LS Offset to Mabee Breedlove 23-1LS L. Spraberry Shale Eastern Shelf 100 4-5 Offset to ST NW 25-7LS Dean Central Midland…
  10. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 10
    3Q14 Operational Update FANG Continues to Deliver on Execution Average 3Q14 daily production of 20,636 boe/d, a 16% increase q/q and 178% increase y/y Gaines Dawson Completed 20 gross horizontal wells in 3Q14 3 During 4Q14, expect to…
  11. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 11
    Horizontal Execution Peer Leading Performance FANGs Best Performing Wells1 Lateral Length Fewest Days to TD Lowest Cost MM ERU 5803 3H Crystal A Unit 1H 5,000 9 days (5,068) 5.1 (5,232) Neal F Unit 806LS Neal C Unit 8 3H 7,500 11 days…
  12. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 12
    Viper Energy Partners Landmark IPO of Mineral Interests September 2013 - acquired 14,804 gross acres of minerals in the core of the Northern Midland Basin Non-traditional investment for an E&P company, unique opportunity with…
  13. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 13
    Development of Viper Energys Spanish Trail is Well Underway Operators Incentivized to Drill Two Dedicated Hz Drillers3 Mineral interest in 14,804 gross acres in Midland County known as Spanish Trail1 Viper does not pay direct LOE or…
  14. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 14
    Viper Expected to Realize Higher Operating Margin Given the same revenue per boe, a mineral barrel realizes a significantly higher operating margin No direct operating or capital expenses Less volatility due to changes in commodity…
  15. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 15
    Diamondback Energy - 2014 Standalone Capital Program Drilling Program1 2014E Capital Expenditures 65-75 gross horizontal and 20-25 gross Vertical Infrastructure Non-Op Drilling and 5% 2% vertical wells planned for 2014 Completion 8%…
  16. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 16
    Capital Discipline Ready to Respond to Market Conditions Closely watching oil prices and service costs Could reach positive cash flow in the second half of 2015 Strengthen an already strong balance sheet, positioning Diamondback for…
  17. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 17
    In Conclusion Complementary acreage additions Midland Basin focused Maintain operations excellence Efficient capital allocation Target Debt/EBITDA < 2X Additional testing in other shale benches Stacked laterals in multiple benches…
  18. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 18
    Multi-year Inventory Continues to Grow Identified Net Potential Drilling Locations 1,022 3,454 1,252 389 642 149 40-Acre Additional Wolfcamp B Additional 20-Acre Total PUDs 40-Acre Horizontal Horizontal Spacing Drilling Locations…
  19. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 19
    Midland County Wolfcamp B- Type Curve Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 638 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 807 600 638 700 750 Oil %, 2 stream basis 73% 6.2 66% 74% 95% 118% D & C Cost, MM 7.2 7.2 44%…
  20. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 20
    Midland County Lower Spraberry- Type Curve Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 650 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 771 500 650 800 1,000 Oil %, 2 stream basis 81% 6.2 44% 84% 145% 248% D & C Cost, MM 7.2…
  21. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 21
    Superior Geosteering & Hydraulic Fracturing Offset Well Control Wolfcamp B Seismic Surface Hz Target Window (30) Well Path Frac Gradient - Blue Breakdown Pressure - Red Prop Weight - Red Fluid Volume - Blue Total Gas - Red ROP - green…
  22. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 22
    Permian Basin Refineries & Pipelines McKee Cushing Borger Gallup Navajo Wichita Falls Colorado City Midland Big Spring Longview Crane Wink Wortham McCamey Houston Nederland PAA/EPD Eagle Ford JV Refineries Corpus Christi Existing…
  23. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 23
    Permian Basin Long Haul Pipeline Infrastructure Existing Pipelines Owner Origin Destination Capacity (kb/d) Comments Basin PAA/EPD Jal, NM Cushing, OK 450 Centurion OXY NM, TX Cushing, OK 100 West Texas Gulf SXL Colorado City, TX…
  24. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 24
    Permian Basin Refining Capacity Company Refinery Capacity (kb/d) 90% Capacity (kb/d) Midland Crude Use (kb/d) ALJ Big Spring, TX 75 68 68 HFC Artesia, NM 100 90 90 PSX Borger, TX 145 131 131 VLO McKee, TX 168 151 40 WNR El Paso, TX 128…
  25. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 25
    WTI-Midland Differentials 30.00 25.00 20.00 /bbl 15.00 10.00 5.00 0.00 Q1'15 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Q2'15 Q3'15 Q4'15 WTI Cushing -Midland Diff Qtr. Avg Historical LLS-WTI Midland Diff…
  26. November 2014 Investor Presentation Update – Diamondback Energy, Inc. – slide 26
    Diamondback Energy 2014 Production Guidance Diamondback Viper Energy Diamondback Excluding Viper Partners Energy Revised Increased Net Production 14.5 16.0 2.5 3.0 17.0 19.0 Mboe/d1 - million Gross Horizontal Well Costs2 6.9 7.4 n/a…

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