Transformational Combination with Energen August 14, 2018 1
Transaction Overview Transaction Details Diamondback Pro Forma Acreage Consideration: All Stock 0.6442 shares of Diamondback per share of Energen 9.2bn transaction value (incl. Energen net debt of 0.8bn) Accretive on All Metrics…
Strategic Rationale 390,000 core Midland / Delaware net acres(1) Creation of Tier One Midland Basin: 139,000 acres Synergies Must-Own Tier One Delaware Basin: 127,000 acres Large Cap Balanced exposure to Midland and Delaware Basins…
Track Record of Disciplined, Accretive Acquisitions Disciplined acquisitions and best-in-class operations, integration and execution have driven significant shareholder value 16,000 1000% 9,200mm 900% 14,000 Over First 5+ Years…
Synergy Summary Primary Synergies Annual Value Total Value(1) Low High Low High Timing Implementation 220 / lateral foot of savings today Midland Basin Begins Q1 2019, Implementation of Diamondback best practices Drilling & 150mm…
US Large Cap Independent Investor Checklist 1 Substantial Economic Inventory 2 Differentiated, Profitable Production Growth Within Cash Flow 3 Best-In-Class Capital Productivity 4 Operating Efficiency with Peer-Leading…
Substantial Economic Inventory 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Midland Basin Delaware Basin Energen Energen County Net Acres County Net Acres…
Substantial Economic Inventory 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Net Midland Basin Location by Zone / Lateral(1) Net Delaware Basin Locations by Zone /…
Differentiated, Profitable Production Growth Within Cash Flow 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Normalized EBITDA / share Growth vs. Peers (%) 350%…
Operating Efficiency Leads to Peer-Leading Margins, Returns and Per Share Growth 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Cash Cost per Boe(1) vs. Peers(2)…
Pro Forma Investment Grade Balance Sheet Metrics 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Pro forma financial and operating metrics and qualitative factors…
Significant Free Cash Flow and Accelerated Capital Returns 1 Inventory Expansion 2 Growth 3 Capital Productivity 4 Low-Cost Operations 5 Balance Sheet 6 Cash Flow Generation Expect to maintain best-in-class growth within cash flow…
Unrealized Mineral Value Opportunity for Viper Energen Minerals Ownership Delaware Basin Mineral Position Net Net Midland Basin Counties Royalty Acres Delaware Basin Counties Royalty Acres Gaines 27 Lea 3 Glasscock 7 Loving 30…
Diamondback and Energen Proactively Addressing Permian Takeaway Energen Gatherer Purchaser Nustar Energen production supported by Basin-wide flow Plains Purchasers assurance Shell, Koch Multi-year term purchasing contracts in place…
Low Cost Drilling and Strategic Completion All-Stock Transaction Overhead and Operating Costs Creation of a Must Own Large Cap Independent Permian Pure Play High-graded Capital Allocation Best-in-Class Operational…
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 20