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1Q 2018 Earnings Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · May 9, 2018 · 26 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. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation May 2018 1
  2. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 207,000+ net acres Diamondback Acreage Map Six core areas with 1,000 Mboe+ EURs in multiple intervals normalized to 7,500 feet 4,200 gross locations with…
  3. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 3
    First Quarter Execution and 2018 Activity Overview Year Over Year Execution 2018 Production and Activity Outlook Q1 2017 Q4 2017 Q1 2018 92,872 102,607 Targeting 40% y/y production growth within cash flow 61,610 Daily Production…
  4. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 4
    Diamondback: Investment Highlights Q1 2018 production of 102.6 Mboe/d (74% oil), up 10% q/q and 67% year over year Realized cash margins of over 83% in Q1 2018; highest in Company history(1) Q1 Highlights Completed over 315,000…
  5. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 5
    Permian Takeaway Update Over 92% of current oil production on Gatherer: Reliance pipe; continuing to increase Purchasers: Shell, EPD, OXY 2018: Term sales agreements in place for all barrels (50% of production firm) 2019: Firm sales…
  6. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 6
    Acquisition Track Record and Subsequent Per Share Value Creation Value Creation to Shareholders(1) FANG Acquisitions and EBITDA/Share Growth Since IPO(2) Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4…
  7. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 7
    Corporate Level Full-Cycle Economics and Returns Matter Return on Average Capital Employed (ROACE) Over Time(1) 15.0% 12.0% 9.0% ROACE 6.0% 12.3% 13.3% 10.8% 9.7% 9.4% 8.6% 7.9% 8.6% 8.8% 3.0% 5.7% 2.6% 0.0% FY 2014 FY…
  8. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 8
    Cost Structure Facilitates Capital Compounding If Diamondback and its peers grow oil production at the same rate, Diamondbacks cost structure facilitates greater per share EBITDA and earnings growth 2016 / 2017 Recycle Ratio Versus…
  9. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 9
    Capital Discipline Creates Long-Term Value Growth within cash flow aligns Company strategy with shareholder interests; no growth for growths sake Dividend initiated to begin return of capital, rewarding shareholders for support of…
  10. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 10
    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…
  11. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 11
    Balanced, Capital Efficient Development Drilling an average of 500 lateral feet per day per rig in the Midland Basin including move time; 400 feet per day in Delaware Basin Completing an average of 1,500 lateral feet per day per…
  12. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 12
    Highest Realized Cash Margin in Company History Q1 2018 Cash Margins Versus Extended Peer Group (/Boe)(1) 90% % of Realized Price (/Boe) Cash Margin (/Boe) 50 Cash Margin (% of Realized /Boe) 83% 81% 79% 79% 78% 80% 76% 75%…
  13. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 13
    Conservatively Spaced, Balanced Inventory Across Zones Gross Delaware Basin Locations By Zone / Lateral Gross Midland Basin Locations By Zone / Lateral 5,000'+ 7,500'+ 10,000'+ Total Avg. Lateral 5,000'+ 7,500'+ 10,000'+ Total Avg.…
  14. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 14
    Southern Delaware Basin Execution and 2018 Plans Delaware Basin Well Performance Drilling: Continue to decrease drilling times WELL COUNTY TARGET LATERAL DAYS IP (Boe/d / 1k) LETHCO 39-37 UNIT 2WA Pecos L WCA 7,527 60 141 (84% oil)…
  15. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 15
    Delaware Basin Infrastructure Investment: ReWard Oil: gathering system completed in Q1 2018, improves realizations by 2.00 / barrel Selling to Oryx at Reeves Crude station (30,000 barrel tank), capacity for full field development SWD…
  16. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 16
    Delaware Basin Infrastructure Investment: Pecos County Oil: gathering system in service Q2 2018, improves realizations by 2.00 / barrel Coyanosa Crude station (30,000 barrel tank); upgrades and extensions continuing SWD Capacity:…
  17. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 17
    Southern Delaware Basin Wolfcamp A Update Southern Delaware WCA Performance Normalized to 7,500 (Mbo) Central Type Log and Landing Targets 200 FANG Primary 175 Targets CUM OIL PRODUCTION, MBBL 150 U WC A 125 100 1,100…
  18. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 18
    Midland Basin: Continued Best-in-Class Execution 2018 Development Plan: Howard County WCA Performance Normalized to 7,500 (Mbo) Currently running six rigs; expect to average 250 between six and seven operated rigs in 2018 200…
  19. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 19
    Current Hedge Summary Crude Oil (Bbls/day, /Bbl)(1) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 29,000 27,000 26,000 7,000 4,000 4,000 3,000 Swaps - WTI 51.24 51.27 51.27 55.29 51.86 51.59 49.82 6,000 6,000 6,000…
  20. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 20
    Liquidity Strength Creates Capital Flexibility Net Debt to Q1 2018 Annualized Adjusted EBITDA of FANGs Liquidity and Capitalization 1.2x(1); continue to target leverage below 2.0x FANG's Consolidated Capitalization 3/31/2018 (MM) Lead…
  21. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 21
    Updated 2018 Guidance Diamondback Viper Energy Targeting annual production growth of over Energy, Inc. Partners LP 40% in 2018 Net Production Mboe/d 110.0 116.0 15.5 16.5 Lowering LOE guidance to 3.75 - 4.50 per Oil Production (% of…
  22. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 22
    Viper Update Q1 2018 cash distribution of 0.480 per unit, up 59% over Q1 2017 and the highest in Vipers history Proposed tax status election to a taxable entity expected to be effective on or after May 10, 2018 Focused on mineral…
  23. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 23
    Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 24
  24. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 24
    APPENDIX 25
  25. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 25
    Limelight Prospect Emerging Mississippian Oil Potential Diamondback Limelight Acreage Map Limelight Type Log Atoka-Bend Early geologic Springer assessments indicate Seal the target to be a Limelight significant oil source…
  26. 1Q 2018 Earnings Presentation – Diamondback Energy, Inc. – slide 26
    High Growth, Oil Weighted Reserves Total Reserves Growth (MMboe) (1) FANG Standalone VNOM 2017 total proved reserves increased 63% y/y 335.4 to 335.4 MMboe 38.2 FANG standalone reserves increased 71% y/y to 205.5 297.1 MMboe…

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