Diamondback Energy: Leading Pure-play Permian Operator Permian pure-play with 344,000 pro forma net Midland Diamondback Acreage Map(1) and Delaware basin acres(1) 7,600 net horizontal locations(2) Industry leading corporate returns,…
Diamondback: Investment Highlights Q1 2019 production of 262.6 Mboe/d (68% oil), up 44% q/q and 156% year over year Updated 2019 production guidance implies 26% y/y growth at midpoint with free cash flow; gives effect to 6,500 boe/d…
Value Proposition and 2019 Activity Overview Value Proposition 2019 Production and Activity Outlook Substantial Economic Inventory 7,600 net horizontal locations Targeting 30% y/y oil growth with free cash flow Advantaged wellhead…
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…
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…
Accretive Growth on Absolute and Per Unit Basis Diamondback has a track record of strategic acquisitions that are focused on per unit stockholder value accretion Differential cost structure has been paramount to integration success…
Synergy Scorecard: Q1 2019 Update Synergy Targeted Savings Presented with Merger Realized Progress to Date 223 / ft. in D&C well cost savings by 2020 240 / ft. in D&C well cost savings in 2019 150 - 220MM in annual savings 2019 D,C&E…
Synergy Update: Midland Basin Well Costs Acquisition underwritten on achieving Midland Basin Realized Synergies (220 - 260 / Ft.) capital cost savings of 220 / ft. by early 2020 Onsite Remediation Represents 70% of total primary…
Synergy Update: Delaware Basin Well Costs Delaware well cost reductions exceeding expectations; Realized Synergies (55 - 60 / Ft.) Diamondback now considers to be primary synergy Multi-well pads 5% Previously targeted up to 50 / ft.…
Executing on Grow and Prune Strategy Divesting conventional and non-core Permian acreage: Non-Core Divestiture Overview(2) 103,423 net acres in the Central Basin Platform, Eastern Shelf in Diamondback Pending Divestitures West Texas…
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…
Balanced, Capital Efficient Development Completing an average 1,500 lateral feet per day per completion crew in the Midland Basin Completing an average of 1,000 feet per day in the Delaware Basin 2019 expected average lateral length…
Oil Pricing and Takeaway Solutions 2019 Realizations: In Basin Oil Takeaway and API Gravity Firm transportation agreements and basis hedges cover 50% of 2019E production Diamondbacks realizations will be weaker than the Gatherer:…
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 184 229 289 702…
Inventory Depth Provides Years of Premium Productivity Inventory significantly weighted to Tier 1 acreage: Diamondback Energy Premium Resource Life(2) 95% of total undeveloped net lateral footage Premium resource life comprised of…
Capital Structure and Liquidity Net debt to Q1 2019 annualized adjusted EBITDA of FANGs Liquidity and Capitalization 1.7x; continue to target leverage below 2.0x FANG's Consolidated Capitalization 3/31/2019 FANG standalone liquidity…
2019 Guidance Diamondback Viper Energy Targeting annual production growth of 26% with Energy, Inc. Partners LP free cash flow in 2019; 30% oil growth Net Production Mboe/d 272.0 287.0 20.0 23.0 2019 D,C&E CAPEX budget of 2,300 2,550…
Differential Growth and Cost Structure Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions Efficient Conversion of Resource to Cash Flow 20
APPENDIX 21
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:…
Viper Update Q1 2019 cash distribution of 0.380 per unit; LTM cumulative distributions of 2.07 per unit Organic growth on legacy assets provide consistent volume and distribution growth Focused on mineral acquisitions in oil-weighted…
Advantaged Economics Through Viper Ownership Vipers mineral assets reduce the royalty burden across FANGs operated Permian development Combined with FANGs leading cost control provides substantial uplift in wellhead economics Viper…
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…
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 significant oil source…
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