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2Q 2020 Earnings Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Aug 3, 2020 · 24 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. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation August 2020 1
  2. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy: Leading Pure-play Permian Operator Large Cap Permian pure-play E&P: Diamondback Acreage Map 348,000 net Midland and Delaware basin acres(1) 12,300 gross (8,100 net) horizontal locations(1) Low Cost Structure and…
  3. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 3
    Diamondback: Investment Highlights Q2 2020 oil production of 176.3 Mbo/d; voluntarily curtailed 9.0 Mbo/d during Q2 2020 Drilled 58 gross operated horizontal wells and turned 15 wells to production in Q2 2020; Q2 2020 Highlights nine…
  4. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 4
    Overview of 2020 Guidance and Capital Budget 2020 Activity and Guidance Midpoints vs 2019 2020 Production and Activity Outlook Original 2020 Current 2020 2019A Guidance Guidance 290 305 Oil Production 283.0 Mboe/d 280 290…
  5. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 5
    Significant Reduction to Capital Costs Diamondback has realized significant capital cost savings through a combination of internal optimization and service cost concessions: Midland Basin: 170 / Ft. savings versus 2019; Delaware…
  6. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 6
    Peer-Leading Cash Margins and Operating Costs Diamondback Cash Operating Costs Including Interest Over Time ( / Boe)(1) LOE Prod. taxes G&T Cash G&A Interest Mboe/d 15 325 12.51 12.76 Production (Mboe/d) 11.63 11.51 12 10.66…
  7. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 7
    Track Record of Aligning Development with Commodity Prices 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…
  8. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 8
    The Multiple Definitions of Free Cash Flow Recent investor focus has been towards a sustainable free cash flow (FCF) model that consistently returns capital to shareholders However, the industry calculates FCF differently and…
  9. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 9
    Midland Basin Inventory and Development Strategy Diamondback Midland Basin Inventory: Midland Basin Economic Locations at Various Oil Prices(2) 7,000 gross (4,970 net) horizontal locations with an average lateral length of 8,300 feet…
  10. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 10
    Delaware Basin Inventory and Development Strategy Diamondback Delaware Basin Inventory: Delaware Basin Economic Locations at Various Oil Prices(2) 5,200 gross (3,170 net) horizontal locations with an average lateral length of 7,600…
  11. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 11
    Current Hedges Maximize Downside Protection For Remainder 2020 2H 2020 Crude Oil Hedges 95% 100% Hedged 120,000 Bo/d 2H 2020 Hedge Protection(1) Midland / WTL Basis Exposure WTI Roll Hedges 2021 Crude Oil Hedges 50% 98% of Hedges…
  12. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 12
    Oil Takeaway Solutions Oil Purchase Contracts: Oil Takeaway Solutions Diamondbacks oil production is purchased under long term purchase agreements with four large, well-funded counterparties Gatherer: OMOG (RTLR JV) Every major…
  13. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 13
    Capital Structure and Liquidity Standalone liquidity of 1.9 billion as of June 30, FANGs Liquidity and Capitalization (MM) 2020(1) FANG's Consolidated Capitalization 6/30/2020 Consolidated pro forma liquidity of 2.9 billion(2) Cash…
  14. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 14
    Updated 2020 Guidance Immediately responded to unprecedented decline in 2020 Guidance Diamondback Viper oil prices; updated 2020 plan implies 35% reduction Net Production Mboe/d 290.0 305.0 25.25 26.25 in CAPEX and activity from…
  15. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 15
    Current Hedge Summary: Oil Consolidated Crude Oil Hedges (Bbl/day, /Bbl) Crude Oil Hedges Q3 2020 Q4 2020 1H 2021 2H 2021 11,000 11,000 Swaps - WTI 43.47 43.47 4,000 4,000 5,000 5,000 Swaps - MEH 61.95 61.95 37.78 37.78 24,200…
  16. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 16
    Current Hedge Summary: Oil Basis, NGLs and Natural Gas Consolidated Oil Basis / Natural Gas Liquids Hedges (Bbl/day, /Bbl) Crude Oil Hedges 2H 2020 Natural Gas Liquids Hedges 2H 2020 45,087 7,000 Basis Swaps - WTI Swaps - Mont…
  17. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 17
    Differential Per Share Metrics and Cost Structure Return On and Return Of Capital Significant Resource Potential Conservative Financial Management Strategic Acquisitions and Execution Efficient Conversion of Resource to…
  18. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 18
    APPENDIX 19
  19. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 19
    Environmental, Social and Governance (ESG) 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 continue to…
  20. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 20
    Recent Changes to ESG and Compensation Diamondback seeks to expand its best in class track record on both disclosure and performance as it relates to sustainable long-term development of its natural resources 2020 Proxy Report…
  21. 2Q 2020 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: Sourced Water…
  22. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 22
    Viper Update Viper Energy Partners: Viper Mineral and Royalty Assets Publicly-traded mineral and royalty subsidiary VNOM royalty acreage (NASDAQ: VNOM) created by Diamondback FANG acreage Focused on owning and acquiring minerals…
  23. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 23
    High Growth, Oil Weighted Reserves YE19 proved reserves increased 14% y/y to 1,128 Total Reserve Growth (MMBoe) (1) MMBoe (711 MMBo, 67% PDP) FANG Standalone VNOM PDP reserves of 760 MMBoe, up 18% y/y; PDP oil 1,128 reserves of 457…
  24. 2Q 2020 Earnings Presentation – Diamondback Energy, Inc. – slide 24
    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 25

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