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March 2016 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Mar 21, 2016 · 22 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. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation March 2016
  2. March 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 300,000+ net effective horizontal acres1 500 gross locations economic at 30 per bbl WTI2 1,500 gross…
  3. March 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. March 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. March 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 1,500 23 30 Spanish 45 - 55 2,200 34 31 Trail 55 - 65 2,400 46 24 65 - 75…
  6. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 6
    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 Saxon C 1101WB King D 4907H Diamondback…
  7. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 7
    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…
  8. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 8
    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…
  9. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 9
    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…
  10. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 10
    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…
  11. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 11
    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…
  12. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 12
    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 7.69 75.00 6.00…
  13. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Conservative Financial Management Net Debt to Annualized Adjusted EBITDA1,2 4Q15 Adjusted EBITDA to Interest Expense1,3 3.1x 20.5x 1.8x 1.9x 2.0x 12.2x Peer Avg: 1.6x 1.6x Peer Avg: 9.5x 8.4x 7.4x 5.7x 5.6x 5.2x 4.9x 0.4x…
  14. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 14
    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…
  15. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 15
    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…
  16. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Vipers Organic Growth and Yield Current market capitalization of 1.3 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…
  17. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Robust Multi-year Undeveloped Inventory Identified Gross Potential Drilling Locations PUD Locations 298 2,761 523 77 262 409 660 532 Wolfcamp B Lower Spraberry Middle Clearfork Wolfcamp A Wolfcamp C Cline Total Spraberry…
  18. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 18
    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…
  19. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 19
    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…
  20. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 20
    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…
  21. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 21
    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…
  22. March 2016 Investor Presentation – Diamondback Energy, Inc. – slide 22
    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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