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Q3 2016 Results – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Nov 8, 2016 · 23 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. Q3 2016 Results – Diamondback Energy, Inc. – slide 1
    Investor Presentation November 2016 1
  2. Q3 2016 Results – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 105,000+ net surface acres Diamondback Acreage Map Five core areas with 1,000 Mboe+ EURs in multiple intervals Significant resource upside from zone…
  3. Q3 2016 Results – Diamondback Energy, Inc. – slide 3
    Recent Highlights Increased production 22% q/q to 44.9 Mboe/d with cash operating expenses down 6% q/q Four Wolfcamp B wells in Glasscock County with similar productivity to prior Wolfcamp A Q3 2016 Review completions; on average…
  4. Q3 2016 Results – Diamondback Energy, Inc. – slide 4
    Industry Leading Growth and Acquisition History 3,000 50,000 Southern Delaware 560 million 27,000 / Acre 2,500 40,000 2,000 Net Production (Boe/d) Acquisitions (mm) 30,000 11,000 / Acre 1,500 NW Martin / Dawson NW…
  5. Q3 2016 Results – Diamondback Energy, Inc. – slide 5
    Multi-Year Inventory Focused on Long Lateral Development Martin / Andrews counties 532 gross locations Middle Spraberry 6 wells / section Lower Spraberry 8 wells / section Wolfcamp A 4 wells / section Howard County Wolfcamp B 6 wells /…
  6. Q3 2016 Results – Diamondback Energy, Inc. – slide 6
    Southern Delaware Basin: Offset Well Results Continue to Improve Pitzer 8 2H Pitzer-Lasater State 1H Autobahn 34-117 4H Lasater 3 Cimarex Cimarex Cimarex Chevron IP30: 1,182 boe/d (82% oil) IP30: 2,011 boe/d (86% oil) IP30: 1,180…
  7. Q3 2016 Results – Diamondback Energy, Inc. – slide 7
    Glasscock County: Top Quartile Inventory Completed four Wolfcamp B wells in Q3 2016: Glasscock County Activity Average flowing 30-day IP rates of 1,246 boe/d Ray 3427 A 4WA / B 5WA Riley B 1807WA Early performance exceeding prior…
  8. Q3 2016 Results – Diamondback Energy, Inc. – slide 8
    Howard County: Proven Productivity in Three Distinct Zones Recently completed second operated pad targeting the Howard County Activity Lower Spraberry, Wolfcamp A and Wolfcamp B: Reed 1WA in line with first Wolfcamp A well tracking an…
  9. Q3 2016 Results – Diamondback Energy, Inc. – slide 9
    Midland County Lower Spraberry Continues to Impress Midland County Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 990 EUR Mboe Peak 30 day IP, boe/d 1,030 650 810 990 1,200 D,C&E Cost MM Boe/d per 1,000 ft. 137…
  10. Q3 2016 Results – Diamondback Energy, Inc. – slide 10
    Andrews and Martin Counties: Underappreciated Spraberry Resource Lower Spraberry in Northeast Andrews and Martin counties continues to be a core focus area Source: Company Information. All EURs and 30-day rates are two-stream unless…
  11. Q3 2016 Results – Diamondback Energy, Inc. – slide 11
    Longer Laterals Dramatically Increase Returns Contiguous acreage position provides significant Spanish Trail Lower Spraberry IRRs by Lateral Length(1) development advantage 250% Long lateral development increases capital 200%…
  12. Q3 2016 Results – Diamondback Energy, Inc. – slide 12
    Best in Class Execution and Cost Control Drilling Cost Reductions (/Completed Lateral Ft)(1) Completion Cost Reductions (/Completed Lateral Ft)(1) 479 593 334 374 297 293 236 202 2014 2015 1H 2016 Q3 2016 2014 2015 1H…
  13. Q3 2016 Results – Diamondback Energy, Inc. – slide 13
    Efficiently Converting Resource Into Cash Flow Well productivity and low cost operations promote timely payback At 50 oil, 7,500 ft Lower Spraberry wells payback nearly 90% of cash costs in the first year of production First year…
  14. Q3 2016 Results – Diamondback Energy, Inc. – slide 14
    Strong Margins Lead to a Best in Class Balance Sheet Operating Expenses Below Peer Average (/boe)(1) Cash Margins ExpectedDiamondback to Lead Peers in 2017(2) Peers Net Debt to TTM Adjusted EBITDA(1)(3) 20.91 32.21 26.22 15.37…
  15. Q3 2016 Results – Diamondback Energy, Inc. – slide 15
    Viper Update Variable Rate MLP structure: 90% of all revenue is returned to shareholders Unique production growth and yield vehicle volumes increased 185% since IPO in June 2014 Focused on mineral acquisitions in oil-weighted basins…
  16. Q3 2016 Results – Diamondback Energy, Inc. – slide 16
    Liquidity Strength Creates Capital Flexibility Net Debt to Trailing Twelve Months Adjusted FANGs Liquidity and Capitalization EBITDA of 0.9x(2) FANG's Consolidated Capitalization as of 9/30/16 (MM) In October, FANG issued 500 million…
  17. Q3 2016 Results – Diamondback Energy, Inc. – slide 17
    Updated 2016 Guidance & Initial 2017 Outlook Increased full year 2016 production guidance range to Diamondback Viper Energy Energy, Inc. Partners LP 41.0 42.0 Mboe/d, up 6% from the prior midpoint Net Production Mboe/d 41.0 42.0 6.0…
  18. Q3 2016 Results – Diamondback Energy, Inc. – slide 18
    Current Hedging Summary Recently added hedges provide downside protection at no cost to Diamondback Continue to strategically layer on hedges to minimize downside and maximize upside to commodity prices Crude Oil (Bbls/day, /Bbl) Q4…
  19. Q3 2016 Results – Diamondback Energy, Inc. – slide 19
    Rate of Return Driven Strategy Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 20
  20. Q3 2016 Results – Diamondback Energy, Inc. – slide 20
    Focus on the Most Economic Plays Reduces Commodity Risk Oil Breakevens by Basin (30% BTAX IRR)(1) Diamondback Core 88.88 Permian 81.90 79.20 Development Areas 76.81 70.64 90 60.89 60.77 57.49 55.50 51.88…
  21. Q3 2016 Results – Diamondback Energy, Inc. – slide 21
    Southern Delaware Basin: High Productivity and Oil Content Wolfcamp and Bone Spring Heat Map(1) Cumulative Percent Oil Map(2) Delaware Heat data 3 Month Boe/d 1000 Gas 200+ Weighted 200 Oil Percentage Area 150 Oil 0% 50%…
  22. Q3 2016 Results – Diamondback Energy, Inc. – slide 22
    Delaware Basin: Stacked Pay Provides Extensive Development Potential Delaware Basin Peers ReWard(1) Reeves County Ward County Northern Delaware(2) 1st Bone Spring 2nd Bone Spring (59 net locations) 3rd Bone Spring (59 net…
  23. Q3 2016 Results – Diamondback Energy, Inc. – slide 23
    Midland Basin Reserves Summary Proved Reserves Represent Nearly a Decade Total Reserves Growth (MMboe) (1) of Reserve Life FANG Standalone VNOM 2015 total proved reserves increased 39% 156.9 y/y to 156.9 MMboe 26.3 112.8…

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