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3Q 2019 Earnings Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Nov 5, 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. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation November 2019 1
  2. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Large Cap Permian pure-play E&P Diamondback Acreage Map 342,000 net Midland and Delaware basin acres(1) 7,600 net horizontal locations(1) Industry leading corporate returns,…
  3. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 3
    Diamondback: Investment Highlights Full year 2020 oil production guidance of 205.0 - 215.0 Mbo/d; implies 10% - 15% growth from 2019 guidance at the midpoint Full year 2020 CAPEX guidance 2.8 - 3.0 billion, including D,C&E CAPEX of…
  4. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 4
    Overview of Preliminary 2020 Guidance and Capital Budget 2020 Guidance and Activity vs 2019 (Midpoint) 2019 Production and Activity Outlook 2020 FY 2019E FY 2020E Targeting 10% - 15% y/y oil growth with free cash flow(1) Oil…
  5. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 5
    2020 Activity Overview Diamondbacks future activity is focused on generating sustainable growth and increasing free cash flow 2020 plan focused on increased co-development between zones in both Midland and Delaware basins Expect to…
  6. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 6
    2020 Plan Focused on Significant Free Cash Flow Generation Diamondback believes its 2020 plan allows for differential oil production growth with robust free cash flow Using conservative assumptions, Diamondback expects to generate over…
  7. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 7
    Track Record of Per Share Growth and Execution Production Growth vs. Bottom Line Growth since IPO(1) E&P Capital Efficiency Study: Historical Recycle Ratios(2) FANG Permian Large Cap Large Cap E&P FANG SMID Cap Large Cap SMID Cap Max…
  8. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 8
    Third Quarter Activity Detail After growing significantly during 1H 2019, Q3 2019 oil production declined due to the sale of our Central Basin Platform assets effective July 1, 2019; 5,800 bo/d of low margin oil production…
  9. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 9
    Substantial Economic Inventory with Conservative Spacing Assumptions Diamondback Spacing Philosophy: Midland and Delaware Premium Zone Spacing Assumptions Inventory spacing assumptions in both the Midland and Delaware basins are…
  10. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 10
    Synergy Scorecard: Q3 2019 Synergy Targeted Savings Presented August 2018 Execution as of November 2019 223 / ft. in D&C well cost savings by 2020 260 / ft. in D&C well cost savings in 2020(1) 150 - 220MM in annual savings 2020 D,C&E…
  11. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 11
    Balanced, Capital Efficient Development Gross Completed Lateral Footage by Quarter Delaware Basin Lateral Footage Midland Basin Lateral Footage Average Completed Lateral Length Gross Lateral Footage 840,339' Average Lateral…
  12. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 12
    Cost Control Directly Facilitates Greater Returns Cost control is driven by primary objective: lowest cost operator in a commodity-based manufacturing business wins FANG has continued to grow bottom line per share metrics in spite of…
  13. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 13
    2019 CAPEX to Cash Flow Statement Reconciliation Diamondback is focused on bridging well cost guidance to total D,C&E capital guidance, which translates directly to the cash flow statement Completed an estimated 2.11MM net lateral…
  14. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 14
    Oil Pricing and Takeaway Solutions Q4 2019 Realizations: In Basin Oil Takeaway and API Gravity Firm transportation agreements and basis hedges cover 50% of 2019E production Oil realizations expected to continue to improve in Q4…
  15. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 15
    Capital Structure and Liquidity Net debt to Q3 2019 annualized adjusted EBITDA of FANGs Liquidity and Capitalization (MM) 1.6x; continue to maintain leverage below 2.0x FANG's Consolidated Capitalization 9/30/2019 FANG standalone…
  16. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 16
    2019 Guidance Diamondback Viper Energy Targeting 27% annual production growth from Energy, Inc. Partners LP combined FY 2018 volumes with free cash flow in Net Production Mboe/d 281.0 282.0 21.0 21.5 2019; 26% oil growth inclusive…
  17. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 17
    Preliminary 2020 Guidance Targeting 10% - 15% year over year oil production Diamondback Preliminary 2020 Guidance growth with free cash flow in 2020(1) Net Production Mboe/d 310.0 325.0 D,C&E CAPEX budget of 2,450 2,600 million; Oil…
  18. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 18
    Differential Per Share Growth and Cost Structure Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions and Execution Efficient Conversion of Resource to…
  19. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 19
    APPENDIX 20
  20. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 20
    Environmental, Social and Governance Diamondback is deeply committed to the safe and responsible development of its resources As our organization has grown to be in a leadership position in the Permian Basin, we believe we have a…
  21. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 21
    Build-out of Midstream Assets Through Rattler Midstream Rattler Midstream: Rattler Midstream Asset Map Publicly-traded midstream subsidiary (NASDAQ: RTLR) created by Diamondback Spanish Trail North: Howard County: Interests fully…
  22. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 22
    Viper Update Q3 2019 cash distribution of 0.46 per unit; LTM cumulative distributions of 1.82 per unit Organic growth on legacy assets to provide consistent volume and distribution growth Focused on mineral acquisitions in…
  23. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 23
    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 63 FANG standalone reserves increased 213% y/y to 928.9 MMboe 65% proved…
  24. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 24
    Current Hedge Summary: Oil Crude Oil (Bbls/day, /Bbl)(1) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 29,457 14,000 14,000 10,000 10,000 Swaps - WTI 61.21 57.58 57.58 58.27 58.27 10,000 6,000 6,000 6,000 6,000 Swaps - MEH 63.47…
  25. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 25
    Current Hedge Summary: Gas and Liquids (1) Natural Gas (Mmbtu/day, /Mmbtu)(1) Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2021 70,000 30,000 30,000 30,000 30,000 Swaps - Henry Hub 3.06 2.55 2.55 2.55 2.55 80,000 80,000…
  26. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 26
    Limelight Prospect Emerging Mississippian Oil Potential Diamondback Limelight Acreage Map Limelight Type Log Atoka-Bend Early geologic Springer assessments indicate Limelight Seal the target to be a significant oil source…
  27. 3Q 2019 Earnings Presentation – Diamondback Energy, Inc. – slide 27
    Diamondback Energy Corporate Headquarters Adam Lawlis, Vice President, Investor Relations 500 West Texas Ave., Suite 1200 (432) 221-7400 Midland, TX 79701 irdiamondbackenergy.com www.diamondbackenergy.com 28

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