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November 2017 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Nov 7, 2017 · 27 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. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation November 2017 1
  2. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Q3 2017 Highlights Increased production 10% q/q to 85.0 Mboe/d (up 89% year over year) Realized cash margins of 80% for second consecutive quarter; highest among peer group Q3 Highlights Continued strong performance from…
  3. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 3
    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 normalized to 7,500 feet Significant resource upside…
  4. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Inventory Strength Promotes Years of Economic Growth Relentless focus on cost control and full-cycle economics; returns matter Well positioned to increase or decrease activity as cash flow dictates; look to match to D,C&E and…
  5. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Corporate Level Full-Cycle Economics and Returns Matter Return on Average Capital Employed (ROACE) Over Time(1) 12.0% 10.5% 9.6% 10.0% 8.5% 8.7% 8.9% 8.2% 8.2% 7.6% 8.0% 5.9% ROACE 6.0% 4.0% 2.9% 2.0% 0.0% FY 2013 FY…
  6. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 6
    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…
  7. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Multi-Year 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 beginning of 2015…
  8. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Balanced, Capital Efficient Development Drilling an average of 500 lateral feet per day per rig in the Midland Basin including move time Completing an average of 1,500 lateral feet per day per completion crew in Midland Basin; 1,000…
  9. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Efficiently Converting Resource Into Cash Flow Well productivity and low cost operations promote timely payback At current NYMEX strip pricing, cash flow from 7,500 ft. Midland County Lower Spraberry and Southern Delaware Basin…
  10. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Capital and Operating Cost Control Fundamental to Strategy Estimated YTD 2017 cost per completed lateral foot of 694; current estimated Midland Basin well costs of 220 to 250 per foot for drilling and 350 to 400 per foot for…
  11. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Peer Leading Cash Margins and Operating Costs Q3 2017 Cash Margins Versus Extended Peer Group (/Boe)(1) 35 Cash Margin (/Boe) % of Realized Price (/Boe) 100% 30.58 Cash Margin (% of Realized /Boe) 30 90% 25 80% 20 80% 70%…
  12. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Oil Growth and Percentage of Volumes Over Time Diamondback has consistently maintained an oil cut in the mid-70%s Execution remains primary driver in performance; continuing to execute on publicly stated growth plans Average Daily…
  13. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Southern Delaware Basin Execution Delaware Basin Well Performance Infrastructure: WELL COUNTY TARGET LATERAL DAYS IP (Boe/d / 1k) Maximizing netbacks by building / upgrading: WALER STATE UNIT 4 1WA Reeves WCA 10,252 90 184 (79% oil)…
  14. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 14
    Southern Delaware Basin Wolfcamp A Update 120 1,100 MBOE (975 MBO) STATE NEAL LETHCO 36-32 1WA Central Type Log and Landing Targets STATE NEAL LETHCO 36-32 2WA FANG 100 OATES 10N 2-1H NEAL LETHCO STATE 20-1H Primary CUM OIL…
  15. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Second Bone Spring Target Update Kelley State Type Log and Landing Targets Kelley State 22-1H (Upper Second Bone Spring) Kelley State 22-2H (Lower Second Bone Spring) Oil-In-Place 2nd & 3rd BSPG OOIP 95 MMbbls/sec. FANG Second…
  16. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Midland Basin: Continued Best-in-Class Execution Howard County WCA Performance Normalized to 7,500 (Mbo) Currently running six rigs: 250 REED 1A 1WA 3 in Midland / SW Martin counties ASRO UNIT 13-1WA BULLFROG 47 NORTH UNIT 1WA…
  17. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Current Hedge Summary Crude Oil (Bbls/day, /Bbl) Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2019 14,000 27,000 28,000 24,000 23,000 3,000 Swaps - WTI 53.37 51.33 51.08 50.51 50.48 49.82 2,000 6,000 6,000 6,000 Swaps - Brent…
  18. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 18
    Liquidity Strength Creates Capital Flexibility Net Debt to Q3 2017 Annualized Adjusted EBITDA of FANGs Liquidity and Capitalization 1.4x(1); continue to target leverage below 2.0x FANG's Consolidated Capitalization 9/30/2017 (MM) 235…
  19. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 19
    Updated 2017 Guidance Increasing full year production guidance by 3%; Diamondback Viper Energy Energy, Inc. Partners LP implied annual production growth of over 80% Net Production Mboe/d 77.5 78.5 11.0 11.5 Narrowed 2017 capital…
  20. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 20
    Viper Update Q3 2017 production up 20% and per unit cash operating costs down 15% from Q2 2017; cash distribution of 0.337 per unit, up 63% over Q3 2016 and the highest in Vipers history Variable Rate MLP structure: 100% of all…
  21. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 21
    Rate of Return Driven Strategy Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 22
  22. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 22
    APPENDIX 23
  23. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 23
    Strong Margins and Value Creation Operating Expenses Below Peer Average (/Boe)(1) Diamondback Cash Margins Have Led Peers(2) NetPeers Debt to Annualized Q3 2017 EBITDA(3) Peers FY2015 FANG FY2015 15.47 30.52 30.58 Peer Avg:…
  24. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 24
    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%…
  25. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 25
    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…
  26. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 26
    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…
  27. November 2017 Investor Presentation – Diamondback Energy, Inc. – slide 27
    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 28

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