Diamondback Overview Independent E&P focused on Permian Basin and headquartered Diamondback Energy Acreage in Midland, Texas Completed IPO on October 17, 2012 Martin/Dawson Counties Successfully transitioning to horizontal well…
Stacked Pay Potential Being Realized in the Permian Basin (1) Permian Peers 176 gross locations SM 5 wells in Andrews County Clearfork Currently flowing back 1st well in Operators: Reliance, RSP, APA (Leonard) Andrews County 1,320…
Why Drill Horizontal Wells Higher IRRs, lower cost to develop, better capital efficiency Illustrative Wolfcamp B Horizontal Illustrative Vertical Well Economics Well Economics (7,500) IRR(1): 40% IRR(1): 25% EUR: 600 MBOE EUR: 133…
Diamondback Energy Recent Developments Midland Basin Acreage Acquisitions Adding Acreage 100% Financed Through Use of Equity On August 6, 2013 announced two separate agreements to acquire 11,150 net acres in Martin and Dawson Counties…
Midland County Acquisition to Add to FANGs Margins Key Highlights Midland County Mineral Interest On September 3, 2013 announced an agreement to acquire Midland mineral interests under 15,000 gross (12,500 net) acres in Midland…
Proved Reserves Overview (Pro Forma as of 9/1/2013) Diamondback proved reserves as of 9/1/2013, including: 2.1 MMBOE of proved reserves from completed Martin Co. and pending Dawson Co. acquisitions 8.6 MMBOE of proved reserves from…
Strong Production Growth Underway Shifting from vertical to horizontal well development Diamondback Rigs Over Time 6 Expected to end 2013 with 5 rigs (1 vertical, 4 horizontal) 5 Currently operating 4 rigs (1 vertical, 3 horizontal)…
Operational Execution Driving Positive Results Average Spud to TD Time(1) Average Time Until Placed on Production 18 Days 82 Days Vertical 16 Days Horizontal 15 Days 14 Days 13 Days 13 Days 53 Days 11 Days 45 Days 46 Days 9…
Permian Basin Economics Resetting Due to Horizontal Well Results Not only are Permian Basin economics some of the Undiscounted Acreage Value(1) strongest in the US, but recent horizontal well results 250 are resetting expectations…
Horizontal Drilling Update Diamondback Energy Acreage(1) PXD 4 Zone Test Dawson/Martin Co. UL III 4-1H Wolfcamp B, Wolfcamp D, Lower pending acquisition Peak 24-hr IP: 613 BOEPD Spraberry, Jo Mill Shale 85% oil 4,051 lateral length…
Stacked Pay Potential Being Realized in the Permian Basin Permian peers have achieved successful results from Diamondback Energy Acreage horizontal wells 1 Wolfcamp A, W&T Offshore, Chablis 5H, 7,112' lateral, 24-hour IP of 530 BOEPD…
Horizontal Drilling Results Provide Confidence Participated in 20 horizontal wells with 16 on production at a 100% success rate Diamondback bottom quartile horizontal well returns generally exceed top quartile vertical well returns…
Horizontal Well Production Results All data normalized to 7,500 lateral length Type curve is oil portion (425 MBO) of 600 MBOE EUR projection (71% oil) reported in two stream All wells are completed in Wolfcamp B interval Early…
Horizontal Execution Underway Horizontal Efficiency Gains Drilling wells faster/cheaper and decreasing cycle times 945 leads to more wells in 2013 2Q13 7,500 horizontals averaged 20 days to TD 547 402 4th horizontal rig expected to…
Vertical Drilling Overview Multi-Year Drilling Inventory Increasing Initial Production Rates 274 vertical locations currently booked as PUDs out of 867 gross locations on 40-acre spacing 79 76 No value for 20-acre spaced wells…
Management Team Over 225 Years Combined Experience Years Team Prior Experience Experience Permian Basin Production Manager of Apache Corporation Vice President of Permian Basin for Laredo Petroleum Holdings Travis Stice Development…
Cash Margins Cash margin expected to increase from free cash flow from pending Midland County mineral interest acquisition No additional capital, LOE or G&A expenses Cash margin of 77.08/BOE in June equals free cash flow Cash Margin…
Diamondback Guidance(1) Full Year 2013 Production 7,200 7,500 BOEPD Capital Expenditures 290 - 320 MM Horizontal Well Costs 7.5 - 8.5 MM Vertical Well Costs 2.0 - 2.2 MM Direct Lease Operating 8.50 - 10.00 / BOE Expense Indirect…
In Conclusion Pure Play Exposure to the Permian Basin Realizing Horizontal Potential High Return Drilling Inventory Rapidly Increasing Production and Expanding Margins Financial Strength & Strong Management 21
Appendix 22
Takeaway Contracts Assure Deliverability (Firm Transportation) Oil: Magellan Pipeline NGL Firm transportation for 5-years through Magellan Longhorn Takeaway capacity on Lone Star and West Texas pipelines pipeline 10 year contract…
Midland Basin Acquisitions Add to FANGs Long Term Growth Potential Complementary acreage blocks with strong horizontal delineation potential Martin County Acreage Dawson and Martin County Acreage Martin Deep rights(1) Acreage…
EBITDA Reconciliation ( in thousands) Year ended December 31, Three Months Ended (1) 2009 2010 2011 2012 6/30/2013 Reconcilliation of Adjusted EBITDA to Net Income (Loss): Net Income (Loss) (2,706) 8,231 (386) (29,697) 14,471…
Corporate Contact Information Diamondback Energy, Inc Auditor 500 West Texas Grant Thornton LLP Suite 1225 Oklahoma City, Oklahoma Midland, Texas 79701 (432) 221-7400 Independent Petroleum Engineer Ryder Scott Company, L.P. Houston,…
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