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June 2018 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Jun 19, 2018 · 31 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. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation June 2018 1
  2. June 2018 Investor 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. June 2018 Investor 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. June 2018 Investor 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. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Out of Basin Oil Takeaway Strategy Update Downstream Firm Transportation: By end of Q3 2018: targeting 83,000 gross bo/d 70% gross production exposed to Gulf pricing at fixed discount Blended average discount to Gulf Coast: (14-16)…
  6. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 6
    In Basin Oil Takeaway Position Over 92% of current oil production on pipe; continuing to increase Gatherer: Reliance Volume-weighted average transport cost to Midland market: 1.00 - 1.25/Bbl (ex-Rattler) Firm to Midland market on…
  7. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Diamondback Actual and Expected Oil Realizations Unhedged realized prices of 95% of WTI in Expected Pricing Exposure and Takeaway Position April 2018 and 91% of WTI in May 2018 2018E 2019E 2020E+ Basis hedges cover 18% of FANG net…
  8. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Permian Gas Takeaway: In Basin Gatherer: EnLink Pipelines: Primary gatherers (% of production): EPNG, Oasis, ONEOK EnLink 40% Targa 25% WTG 15% Gatherer: WTG Brazos / EagleClaw 20% Gatherers: Pipelines: Various EnLink, WTG…
  9. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Build-out of Midstream Assets Through Rattler Midstream Rattler Midstream: Rattler Midstream Asset Map Wholly-owned midstream Martin / Andrews: subsidiary created by Diamondback Fresh Water SWD Formed to support Diamondbacks…
  10. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Diamondback / Rattler 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…
  11. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Diamondback / Rattler 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…
  12. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Acquisition Track Record and Subsequent Per Share Value Creation Value Creation to Shareholders(1) FANG Acquisitions and EBITDA/Share Growth Since IPO(2) Q3 2013 Q4 2012 Q1 2013 Q2 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4…
  13. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 13
    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…
  14. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 14
    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…
  15. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 15
    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…
  16. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 16
    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…
  17. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 17
    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…
  18. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 18
    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% 79% 78% 78% 80% 77% 76% 40…
  19. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 19
    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.…
  20. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 20
    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)…
  21. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 21
    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…
  22. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 22
    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…
  23. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 23
    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 8,000…
  24. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 24
    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…
  25. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 25
    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 Net…
  26. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 26
    Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 27
  27. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 27
    APPENDIX 28
  28. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 28
    Viper Update Q1 2018 cash distribution of 0.480 per unit, up 59% over Q1 2017 and the highest in Vipers history Recently completed tax status election change to a taxable entity; effective May 10, 2018 Focused on mineral acquisitions…
  29. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 29
    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…
  30. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 30
    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…
  31. June 2018 Investor Presentation – Diamondback Energy, Inc. – slide 31
    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 32

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