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4Q 2018 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Feb 19, 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. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation February 2019 1
  2. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 364,000 net Midland and Diamondback Acreage Map Delaware basin acres 7,600 net horizontal locations(1) Diamondback Non-Core Industry leading corporate…
  3. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 3
    Diamondback: Investment Highlights Q4 2018 production of 182.8 Mboe/d (71% oil), up 49% q/q and 97% year over year Excluding Energen, FY 2018 production of 121.4 Mboe/d (73% oil), up 53% over FY 2017 production and exceeded 2018…
  4. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Value Proposition and 2019 Activity Overview Value Proposition 2019 Production and Activity Outlook Substantial Economic Inventory Targeting 27% y/y production growth within cash flow 7,600 net horizontal locations economic at…
  5. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Evolution of Diamondbacks Capital Allocation Strategy Diamondback has been an industry leader in consistent capital discipline, particularly in the ability to grow within cash flow, react quickly and responsibly to commodity price…
  6. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 6
    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…
  7. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 7
    Synergy Scorecard: Day 1 Update Synergy Targeted Savings Presented with Merger Realized Progress to Date 223 / ft. in D&C well cost savings by 2020 215 / ft. in D&C well cost savings in 2019 150 - 220MM in annual savings 2019 D,C&E /…
  8. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Synergy Update: Midland Basin Well Costs Acquisition underwritten on achieving Midland Basin Day 1 Realized Synergies (215 / Ft.) capital cost savings of 220 / ft. by early 2020 Perf 3% Represents 70% of total primary synergy value…
  9. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Synergy Update: Delaware Basin Well Costs Delaware well cost reductions exceeding expectations; Day 1 Realized Synergies (55 - 60 / Ft.) Diamondback now considers to be primary synergy Multi-well pads 5% Previously targeted up to 50…
  10. 4Q 2018 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, with a willingness and demonstrated ability to adjust activity levels quickly to…
  11. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Balanced, Capital Efficient Development Completing an average 1,500 lateral feet per day per completion crew in the Midland Basin Completing an average of over 900 feet per day in the Delaware Basin 2019 expected average lateral…
  12. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 12
    Oil Pricing and Takeaway Solutions 2019 Realizations: In Basin Oil Takeaway Firm transportation agreements and basis hedges cover 50% of 2019E production Diamondbacks realizations will be weaker than the Midland Gatherer: Reliance…
  13. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Substantial Economic Inventory Net Midland Basin Location by Zone / Lateral(1) Net Delaware Basin Locations by Zone / Lateral (1) 5,000'+ 7,500'+ 10,000'+ Total Avg. Lateral 5,000'+ 7,500'+ 10,000'+ Total Avg. Lateral MS 184 229 289…
  14. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 14
    High Growth, Oil Weighted Reserves YE18 total proved reserves increased 196% y/y Total Reserves Growth (MMboe) (1) to 992.0 MMboe FANG Standalone VNOM 992 FANG standalone reserves increased 213% y/y 63 to 928.9 MMboe 65% proved…
  15. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Capital Structure and Liquidity Continue to target leverage below 2.0x FANGs Liquidity and Capitalization In November 2018, FANG paid off Energens revolver FANG's Consolidated Capitalization 12/31/2018 balance and assumed 530 million…
  16. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 16
    2019 Guidance Diamondback Viper Energy Targeting annual production growth of 27% Energy, Inc. Partners LP within cash flow in 2019 Net Production Mboe/d 275.0 290.0 20.0 23.0 Oil Production (% of Net) 68% 70% 67% 71% 2019 D,C&E…
  17. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 17
    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 18
  18. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 18
    APPENDIX 19
  19. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 19
    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…
  20. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 20
    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…
  21. 4Q 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 1,100 MBOE…
  22. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 22
    Build-out of Midstream Assets Through Rattler Midstream Rattler Midstream: Rattler Midstream Asset Map Wholly-owned midstream subsidiary created by Diamondback Martin / Andrews: Interests fully aligned with upstream operations:…
  23. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 23
    Current Hedge Summary (1) Crude Oil (Bbls/day, /Bbl) Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2020 32,000 28,725 28,457 27,457 Swaps - WTI 60.98 61.09 61.03 61.18 7,000 4,000 4,000 3,000 Swaps - MEH 69.65 74.64 67.53 64.51…
  24. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 24
    Current Hedge Summary (Continued) (1) Natural Gas (Mmbtu/day, /Mmbtu) Q1 2019 Q2 2019 Q3 2019 Q4 2019 FY 2020 70,000 70,000 70,000 70,000 Swaps 3.06 3.06 3.06 3.06 63,111 70,000 70,000 70,000 Basis Swaps - Waha (1.57)…
  25. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 25
    Viper Update Q4 2018 cash distribution of 0.510 per unit, up 11% over Q4 2017 Organic growth on legacy assets provide consistent volume and distribution growth Focused on mineral acquisitions in oil-weighted basins with high…
  26. 4Q 2018 Investor Presentation – Diamondback Energy, Inc. – slide 26
    Limelight Prospect Emerging Mississippian Oil Potential Diamondback Limelight Acreage Map Limelight Type Log Atoka-Bend Early geologic Limelight Springer assessments indicate Seal the target to be a Limelight significant oil…
  27. 4Q 2018 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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