Diamondback Q2 2017 Highlights Increased production 25% q/q to 77.0 Mboe/d (15% quarterly organic production growth) Raised full year production guidance by 5% and reduced guidance for full year CAPEX by 3%, LOE by 19% and cash G&A by…
Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 191,000 net acres Diamondback Acreage Map Six core areas with 1,000 Mboe+ EURs in multiple intervals Significant resource upside from zone delineation and…
Inventory Strength Promotes Years of Economic Growth Diamondbacks strategy has not changed: Well positioned to increase or decrease activity as cash flow dictates Relentless focus on cost control and full-cycle economics More than…
Leading Track Record of Accretive Acquisitions and Execution Combination of best in class efficiency and accretive acquisitions of Tier 1 assets has consistently driven shareholder value 6,000 Southern Delaware 90,000 2.55 billion…
1. Execution Highlights 7
Multi-Year Differentiated Growth Within Cash Flow FANG has a track record of achieving robust production growth while spending within cash flow Cumulative cash flow has more than offset D,C&E and Infrastructure spending since the…
Balanced, Capital Efficient Development Balance between wells drilled and wells completed; growing efficiently and not building DUCs Drilling an average of 500 lateral feet per day per rig in the Midland Basin including move time…
Efficiently Converting Resource Into Cash Flow Well productivity and low cost operations promote timely payback At 50/Bbl NYMEX oil prices, cash flow from 7,500 ft. Midland County Lower Spraberry and Southern Delaware Basin Wolfcamp A…
Capital and Operating Cost Control Fundamental to Strategy Estimated 1H 2017 cost per completed lateral foot of 683; current estimated Midland Basin well costs of 225 to 250 per foot for drilling and 350 to 400 per foot for completion…
Peer Leading Cash Margins and Operating Costs Q2 2017 Cash Margins Versus Extended Peer Group (/Boe)(1) 35 Cash Margin (/Boe) % of Realized Price (/Boe) 100% Cash Margin (% of Realized /Boe) 30.52 30 90% 25 80% 20 80% 70%…
Oil Growth and Percentage of Volumes Over Time After returning to growth in mid 2016, oil cuts have steadily increased from 72% to 75% today Execution remains primary driver in performance; continuing to execute on publicly stated…
Strong Margins and Value Creation Operating Expenses Below Peer Average (/Boe)(1) YTD Cash MarginsDiamondback Have Led Peers(2) NetPeers Debt to Annualized Q2 2017 EBITDA(3) FY2015 Peers FY2015 FANG 15.47 32.62 30.52 Peer Avg:…
2. Midland and Delaware Basin Update 15
Southern Delaware Basin Execution Delaware Basin Well Performance Infrastructure: IP30 WELL COUNTY TARGET LATERAL (Boe/d / 1k) Maximizing netbacks by building / upgrading: STATE MCGARY 16-1H Pecos U WCA 4,799 219 (85% oil) Oil…
Southern Delaware Well Results Continue to Impress EUR Data (MBOE) Frac…
Southern Delaware Basin Wolfcamp A Update 2017 Development Activity - Production Normalized to 7,500' 280,000 Central Type Log and Landing Targets Sabine 10S-2 1H (LWR WCA) 260,000 OATES 10N-2 1H (LWR WCA) FANG 240,000 NEAL LETHCO…
New Bone Spring Target in Pecos County Kelley State Type Log and Landing Target Kelley State 22-1H (Upper Second Bone Spring) Kelley State 22-2H (Lower Second Bone Spring) Oil-In-Place 2nd & 3rd BSPG OOIP FANG 95 MMbbls/sec.…
Midland Basin: Continued Best in Class Execution Currently running six rigs: Andrews County LS Performance Normalized to 7,500 (Mbo) 3 in Midland / SW Martin counties 500 inter-lateral spacing test in Andrews County performing…
Howard County Results Continue to Improve Successful completion optimization; significant Howard County Wolfcamp A Well Performance improvement from first operated pad 12 months ago IP30 WELL LATERAL IP30(1) (Boe/d / 1k) Optimized…
Liquidity Strength Creates Capital Flexibility Net Debt to Q2 2017 Annualized Adjusted FANGs Liquidity and Capitalization EBITDA of 1.3x(2); continue to target leverage FANG's Consolidated Capitalization 6/30/2017 below 2.0x (MM)…
Updated 2017 Guidance Increased full year production guidance by Diamondback Viper Energy Energy, Inc. Partners LP 5% from prior midpoint to 74 78 Mboe/d Net Production Mboe/d 74.0 78.0 10.0 11.0 while reducing CAPEX guidance (from…
Viper Update Q2 2017 production up 23% and cash operating costs down 15% from Q1 2017; cash distribution of 0.332 per unit, up 76% over Q2 2016 and the highest in Vipers history Variable Rate MLP structure: 100% of all available cash…
Rate of Return Driven Strategy Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 26
APPENDIX 27
High Growth, Oil Weighted Reserves 2016 total proved reserves increased 31% y/y Total Reserves Growth (MMboe) (1) to 205.5 MMboe FANG Standalone VNOM FANG standalone reserves increased 33% y/y to 205.5 174.0 MMboe 156.9 31.4 58%…
Conservatively Spaced, Balanced Inventory in Midland and Delaware Basins Inventory reflects conservative spacing assumptions; continue to test downspacing and monitor industry activity 85% of horizontal well locations have lateral…
Focus on the Most Economic Plays Reduces Commodity Risk Oil Breakevens by Basin (30% BTAX IRR)(1) Diamondback Core 71.89 Development Areas Permian 60.33 58.11 57.30 55.50 55.12 55.04 75 51.24 50.57 49.43…
Southern Delaware Reservoir Quality: Basin Axis, Thickness, Overpressure, High Oil Cut Wolfcamp A Structure Map (SSTVD) Wolfcamp A Shale Isopach Map Acreage located in Southern Delaware Basin, along the structural axis Wolfcamp A…
Pecos County Compares Favorably to Midland Basin and Reeves Co. 1 Brigham Type Log 2 ReWard Type Log(1) 3 Spanish Trail Type Log Avalon Shale Avalon Shale Lower Clearfork Shale Upper 1st Bone Spring 2,150 of hydrocarbon…
Diamondback Energy Corporate Headquarters Adam Lawlis, Director, Investor Relations 500 West Texas Ave., Suite 1200 (432) 221-7400 Midland, TX 79701 irdiamondbackenergy.com www.diamondbackenergy.com 33
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