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August 2015 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Aug 4, 2015 · 31 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. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation August 2015
  2. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy Overview Diamondback Energy Acreage Continue to Prosper in Current Environment At 40 WTI, Lower Spraberry is generating nearly 70% rates of return in Spanish Trail 1 Intend to add 5th rig in 3Q15 Continued…
  3. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 3
    Peer Leading Capital Efficiency & Conservative Leverage FY2014 Recycle Ratio1,2 Key Highlights Peer leading cash margins and F&D costs Peer Avg: 329% drive differential recycle ratio FANG has a strong balance sheet with liquidity…
  4. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Peer Leading Cash Margins Cash Margins Have Consistently Exceeded Peers1,2 FANG Operating Expenses Below Peers1 (/boe) LOE Prod. Taxes G&A FANG Peer Average 18.27 10% 75.00 /boe 16.18 Lower 15.37 66.66 14.17 63.50 13.14 65.00…
  5. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Diamondback Has Reduced Costs in Current Commodity Environment Cooperation with service cost Breakdown of Current Costs1 providers and efficiency gains have Directional Services Overhead / led to further reductions in AFEs Produce…
  6. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 6
    Resilient Lower Spraberry Economics in Spanish Trail Spanish Trail Lower Spraberry Economics 480% 420% 360% At 60 WTI, Generating 85-200% ROR Rate of return 300% 240% At 50 WTI, Generating 50-125% ROR 180% At 40 WTI,…
  7. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Lower Spraberry Performance Midland Note: Daily production normalized for operational shut-ins. Type curves based on normalized 7,500 laterals; actual lateral lengths vary. 8
  8. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Lower Spraberry Performance Martin, Andrews & Dawson Note: Daily production normalized for operational shut-ins. Type curves based on normalized 7,500 laterals; actual lateral lengths vary. 9
  9. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Significance of the Lower Spraberry New horizontal development target in formation considered marginally Acreage Map economic for decades Positive tests across acreage base 1 MMboe EUR in Midland County, 0.7 MMboe in Glasscock, and…
  10. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Sequential Decline in Production Due to Reduced Completion Activity Production and Completions (boe/d) Gross Hz Completions Weather 40,000 25 Impact 20 Hz 19 Hz 18 Hz Completions Completions Completions 20 30,000 15 Hz…
  11. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 11
    A Growth Story Average Daily Net Production (Mboe/d)1 Revenue Growth1 ( in MMs) Oil Gas/NGLs 30.0-32.0 Guidance2 Increase from original guidance on February 17, 2015 19.5 26.0- 28.0 7.3 3.8 14.7 5.5 2.7 FY2012 FY2013…
  12. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Horizontal Execution Peer Leading Performance Drives Lower Well Costs and Higher Returns Faster drilling times lead to lower well costs and higher rates of return Drilled an 8,000 lateral well in Andrews County in 10 days from spud to…
  13. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Diamondback Energy Reserves Summary Proved Reserves Represent Over a Decade of Total Reserves Growth1 (MMboe) Reserve Life3 Proved Developed Acquisitions Proved Undeveloped VNOM Proved Developed VNOM Proved Undeveloped 117.22 Pro…
  14. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 14
    Robust Multi-year Inventory Identified Net Potential Drilling Locations 2015 Acquisitions 996 3,620 673 1,814 73 232 64 Horizontal Additional 40-Acre Additional 20-Acre Total PUDs Horizontal PUDs 40-Acre Spacing Drilling…
  15. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Financial Overview 16
  16. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Liquidity Strength Creates Capital Flexibility FANGs Liquidity and Capitalization Net debt to annualized 2Q15 Adj. EBITDA of 1.5x1 FANG's Capitalization as of 6/30/15 Strong balance sheet with the ability to use its 88% ownership…
  17. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Diamondback Energy Hedging Hedging1 Oil Swaps 2015 Average Bbls Per Day Average Price Per Bbl Oil Swaps 2015 Average Bbls Per Day Average Price Per Bbl First Quarter 15 LLS 6,344 95.57 Third Quarter 15 LLS 3,000 90.99 First…
  18. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 18
    Diamondback Energy Updated 2015 Guidance1 Diamondback Capex Budget ( - million) Diamondback Viper Energy Horizontal Drilling and Completion 285 315 Energy, Inc. Partners LP Net Production Mboe/d1 30.0 32.0 4.8 5.1 Infrastructure 20…
  19. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 19
    In Conclusion Diamondback Energy is a low-cost operator in one of the highest return basins. Complementary acreage additions Midland Basin focused Maintain operations excellence Efficient capital allocation Debt/Adjusted EBITDA…
  20. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 20
    APPENDIX 21
  21. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 21
    Spanish Trail Microseismic Recently completed microseismic and tracer survey of three simultaneously stimulated horizontal wells in the Lower Spraberry. Microseismic data is currently in final processing stage; results will be tied…
  22. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 22
    Acquired Acreage is Central to Some of the Best Well Results in the Midland Basin Wright 44-41 3H Gardner Unit 15-10 2H Element Element IP30: 929 Boepd (91% oil) IP30: 724 Boepd (91% oil) EUR : 815 MBOE EUR: 802 MBOE Lateral Length:…
  23. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 23
    Comparison to Spanish Trail 1 2 Acquisition Acreage Map 2 Oil in Place Oil in Place Spanish 30 Trail Midland MMBO/ 35 SQMI Basin MMBO/ Eastern SQMI Shelf 1 40 41 MMBO/ MMBO/ SQMI SQMI 93 100 Central 30 MMBO/ 32…
  24. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 24
    Lower Spraberry Type Curve & Economics at 50 Oil Midland County Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 990 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 1,030 650 810 990 1,200 Oil %, 2 stream basis 79% 5.5…
  25. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 25
    Midland County Wolfcamp B Type Curve & Economics at 50 Oil Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 638 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 808 600 638 700 750 Oil %, 2 stream basis 76% 5.5 22% 25%…
  26. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 26
    Downspacing and Stacked Pay Potential in Spanish Trail Upside Potential Increase from 6 to 8 per section Increase from 8 to 10 per section Increase from 4 to 8 per section Could see upside from downspacing and…
  27. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 27
    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…
  28. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 28
    Viper Energy Partners Landmark IPO of Mineral Interests Viper Overview Gross Net Viper Energy Partners LP (Viper or VNOM) was formed by Royalty Acres Diamondback, which now owns 88% Acres Cash distribution of 0.22 per unit…
  29. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 29
    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…
  30. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 30
    Development of Viper Energys Spanish Trail is Well Underway Operators Incentivized to Drill Two Dedicated Hz Drillers 21.4% average revenue interest in 15,460 gross acres in Midland County known as Spanish Trail Viper does not pay…
  31. August 2015 Investor Presentation – Diamondback Energy, Inc. – slide 31
    Diamondback Energy Corporate Headquarters Adam Lawlis, Investor Relations 500 West Texas Ave., Suite 1200 (432) 221-7400 Midland, TX 79701 irdiamondbackenergy.com www.diamondbackenergy.com

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