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January 2019 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Jan 7, 2019 · 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. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation January 2019 1
  2. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 394,000 net acres Diamondback Acreage Map 7,200 net horizontal locations Industry leading corporate returns, growth within cash Diamondback Non-Core Quinn…
  3. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 3
    Diamondback: Investment Highlights Closed Energen merger on November 29, 2018 and subsequently received upgrades to credit rating from Moodys and S&P; Fitch assigned first-time IG rating of BBB- Q3 2018 production of 123.0 Mboe/d (72%…
  4. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Third Quarter Execution and 2019 Activity Overview Year Over Year Execution 2019 Production and Activity Outlook Q3 2017 Q3 2018 122,975 Targeting 28% y/y production growth within cash flow 85,029 Daily Production 275 - 290 20%…
  5. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Acquisition Track Record and Subsequent Per Share Value Creation Value Creation to Shareholders(1) FANG Acquisitions and EBITDA/Share Growth Since IPO(2) Q1 2014 Q2 2014 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q3 2014 Q4…
  6. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 6
    Evolution of Diamondbacks Capital Allocation Strategy Diamondback has been an industry leader in consistent capital discipline, particularly in our ability to grow within cash flow for the past three years and the institution of a…
  7. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Commitment to Disciplined Growth and Return of Capital 2019 budget targets a business plan that operates within cash flow even at challenging commodity prices Capital allocation strategy reflects a mix of growth and increasing return…
  8. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Substantial Economic Inventory Net Midland Basin Location by Zone / Lateral(1) Net Delaware Basin Locations by Zone / Lateral 5,000'+ 7,500'+ 10,000'+ Total Avg. Lateral 5,000'+ 7,500'+ 10,000'+ Total Avg. Lateral MS 162 264 317 743…
  9. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Corporate Level Full-Cycle Economics and Returns Matter Diamondbacks cost structure and disciplined approach to investment facilitates greater per share EBITDA and earnings growth, and is reflected in an industry-leading ROACE Return…
  10. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Consistent Capital Discipline and 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…
  11. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Balanced, Capital Efficient Development Completing an average 1,400 lateral feet per day per completion crew in the Midland Basin Completing an average of 900 feet per day in the Delaware Basin Completed Lateral Footage by Quarter…
  12. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Capital Structure and Liquidity Continue to target leverage below 2.0x Combined Liquidity and Capitalization(1) In October 2018, FANGs pre-merger borrowing FANG's Consolidated Capitalization Pro Forma EGN - 9/30/18 EGN Adjusted base…
  13. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Differential Growth Within Cash Flow Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 14
  14. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 14
    APPENDIX 15
  15. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Peer-Leading Cash Margins and Operating Costs Q3 2018 Cash Margins Versus Extended Peer Group (/Boe)(1) 90% % of Realized Price (/Boe) Cash Margin (/Boe) 50 Cash Margin (% of Realized /Boe) 82% 81% 78% 78% 77% 80% 76% 40 74%…
  16. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Multiple Acquisitions Create Spanish Trail North Overview of Acquisitions (Closed 10/31/2018): Spanish Trail North Acreage Map 1.21B cash consideration and 2.58MM FANG shares 29,139 net acres (25,000 in Martin / Andrews counties) 450…
  17. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Spanish Trail North: Prolific Well Results Across Three Proven Zones 2 3 4 5 UL Comanche Unit A4144 4 UL Comanche Unit A4144 5 UL Comanche Unit A4144 6 Vineyard Hz B Unit 0601WA EXL Petroleum EXL Petroleum EXL Petroleum Ajax…
  18. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 18
    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 1,100 MBOE…
  19. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 19
    Near Term and Long Term Solutions for Permian Oil Takeaway Diamondback: Pro Forma In Basin Oil Takeaway Volume-weighted average transport cost to Midland Purchaser market: 1.00 - 1.25/Bbl (ex-Rattler) Plains Firm to Midland market…
  20. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 20
    Build-out of Midstream Assets Through Rattler Midstream Rattler Midstream: Rattler Midstream Asset Map Wholly-owned midstream subsidiary created by Diamondback Martin / Andrews: Fresh Water Interests fully aligned with upstream…
  21. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 21
    Infrastructure Development Ahead of Continued Acceleration 100,000 net Delaware Basin acres acquired in 2018 YTD Infrastructure Capital Spend 2016 with minimal infrastructure in place Building out infrastructure, retaining 100% Total…
  22. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 22
    Current Hedge Summary (1) Crude Oil (Bbls/day, /Bbl) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 26,000 31,658 28,658 28,658 27,658 Swaps - WTI 51.27 60.97 61.08 61.05 61.20 7,000 7,000 4,000 2,000 1,000 Swaps - MEH 71.06 69.65…
  23. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 23
    Current Hedge Summary (Continued) (1) Natural Gas (Mmbtu/day, /Mmbtu) Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 20,000 70,000 70,000 70,000 70,000 Swaps 3.07 3.06 3.06 3.06 3.06 70,000 70,000 70,000 70,000 Basis Swaps - Waha…
  24. January 2019 Investor Presentation – Diamondback Energy, Inc. – slide 24
    Viper Update Q3 2018 cash distribution of 0.580 per unit, up 72% over Q3 2017 Organic growth on legacy assets provide consistent volume and distribution growth Focused on mineral acquisitions in oil-weighted basins with high…
  25. January 2019 Investor 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. January 2019 Investor 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…
  27. January 2019 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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