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February 2016 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Feb 17, 2016 · 24 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. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation February 2016
  2. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy Overview Quality Acreage in Northern Midland Basin 85,000 net acres containing 2,700+ gross total locations 500 gross locations economic at 30 per bbl WTI1 4Q15 production of 37.6 Mboe/d Best in Class Execution…
  3. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 3
    Recent Highlights 2015 production of 33.1 Mboe/d above 31.0 32.0 Mboe/d 2015 guidance range 2015 Review 2015 LOE of 6.84/boe below 7.00 8.00/boe guidance range Reserves increased 39% y/y to 156.9 MMboe Will seek to optimize rig and…
  4. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Prudent Capital Discipline in Low Price Environment Defer Capital Spending (reduced up to At Flat 35/bbl WTI2, we expect: 40% from 20151) Undrawn revolver Reduce D&C costs No additional debt No additional equity Defer drilling…
  5. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Robust, Multi-year Inventory Scenario Analysis1 WTI of Gross Years of Drilling (at (/bbl) Locations of Rigs Midpoint)2 25 - 35 500 12 17 35 - 45 1500 23 30 Spanish 45 - 55 2,200 34 31 Trail 55 - 65 2,400 46 24 65 - 75…
  6. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 6
    Resilient Lower Spraberry Economics in Spanish Trail Spanish Trail Lower Spraberry Economics 200% 150% Rate of return 100% 50% 0% 20/bbl 30/bbl 40/bbl 50/bbl (1) (1) 5.0MM (excl. Viper) 5.5MM (excl. Viper) 5.0MM…
  7. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Encouraging Results in Glasscock County Shackelton 31W 3HM Flanagan 14 Loyd A 21H Apache Pioneer IP30: 1,886 boe/d (83% oil) IP30: 885 boe/d (89% oil) Lateral Length: 4,426 Lateral Length: 7,202 Clark 1 1201H King D 4907H Encana…
  8. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Offset Activity in Howard County Adams 4231WA Wright 44-41 3H Gardner Unit 15-10 2H Element Occidental Element IP30: 724 Boepd (91% oil) Adams 4201WA IP30: 1,841 Boepd (89% oil) IP30: 929 Boepd (91% oil) EUR: 802 MBOE Occidental…
  9. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Best in Class Execution Days vs Depth Hz Diamondback Peers Howard County Days Glasscock County 0 5 10 15 20 25 30 35 0 5 10 15 20 25 30 0 0 4,000 4,000 8,000 8,000 12,000 12,000 16,000 16,000 20,000 20,000 Days vs…
  10. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Diamondback Has Reduced Costs in Current Commodity Environment Cooperation with service cost providers and efficiency gains Breakdown of Current Well Costs1 have led to further reductions in drill, complete and equip Directional…
  11. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Lease Operating Expense Reductions Lease operating expenses per BOE declined 12% Breakdown of Current Lease Operating Expenses y/y from 7.79/boe in 2014 to 6.84/boe in 2015 Rentals Surface Overhead / Utilities 4% Comp Repairs Rapid…
  12. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Reserves Summary Proved Reserves Represent Over a Decade of Total Reserves Growth1 (MMboe) Reserve Life2 FANG Standalone VNOM 2015 total proved reserves increased 39% 156.9 y/y to 156.9 MMboe 26.3 112.8 Diamondbacks standalone proved…
  13. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Best in Class Cost Optimization Drives Peer-Leading Margins Cash Margins Have Consistently Exceeded Peers1,2 FANG Expected to Lead Peers in Pre-Hedge Margins in 20163 Diamondback Peers /boe /boe FANG Peer Average 9.00 8.04 75.00 63.50…
  14. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 14
    Conservative Financial Management Net Debt to Annualized Adjusted EBITDA1,2,3 Annualized Adjusted EBITDA to Interest Expense1,2,4 2.8x 2.6x 20.3x 1.8x 1.8x Peer Avg: 1.7x 1.7x 12.2x 11.1x Peer Avg: 0.9x 8.8x 8.3x 6.7x 5.8x…
  15. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Liquidity Strength Creates Capital Flexibility FANGs Pro Forma Pro forma net debt to annualized 4Q15 EBITDA of 0.4x1,3 Liquidity and Capitalization1 FANG's Pro Forma Capitalization as of 12/31/15 Bank group approved increase of FANGs…
  16. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Diamondback Energy 2016 Guidance1 Diamondback Capital Activity Diamondback Viper Energy Gross Horizontal Wells Completed 30 70 Energy, Inc. Partners LP Gross Horizontal Well Costs3 5.0 5.5 mm Net Production Mboe/d1 32.0 38.0 6.0 6.5…
  17. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Vipers Organic Growth and Yield Current market capitalization of 1.1 B1 WTI Pricing Changes 110.00 4Q15 cash distribution of 0.228 per unit 90.00 represents an annualized 6% yield1 70.00 Co-Bid strategy with Diamondback 50.00…
  18. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 18
    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…
  19. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 19
    APPENDIX 20
  20. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 20
    Robust Multi-year Inventory Identified Gross Potential Drilling Locations 298 2,761 523 77 262 409 660 232 532 Wolfcamp B Lower Spraberry Middle Clearfork Wolfcamp A Wolfcamp C Cline Total Spraberry Horizontal Target…
  21. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 21
    Lower Spraberry Type Curve & Economics at 40 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% 5.0…
  22. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 22
    Viper Energy Partners 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 0.228 per unit declared for 4Q15 Currently yielding…
  23. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 23
    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 Diamondback creates a variable MLP…
  24. February 2016 Investor Presentation – Diamondback Energy, Inc. – slide 24
    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…

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