Presenters Chief Executive Officer since January 2012 President and Chief Operating Officer from April 2011 to January 2012 Apache Corporation Permian Basin Production Manager Travis Stice Laredo Petroleum Vice President, Permian…
Diamondback Overview Independent E&P focused on Permian Basin and Diamondback Energy Acreage headquartered in Midland, Texas Completed IPO on October 17, 2012 (share price increased 204% since IPO) Drilled or participated in 34…
Diamondback Continues to Deliver in 2013 Drilled or participated in 31 Wolfcamp B wells in Midland, Upton and Andrews Counties and 1 Clearfork well in Andrews County; participated in 1 Middle Spraberry well and 1 Lower Spraberry well…
Stacked Pay Horizons Continue to Rewrite Potential in the Permian Basin Permian Peers 176 gross locations SM 5 wells in Andrews County Clearfork 1 well on production Operators: Reliance, APA (Leonard) 1,320 spacing 180 gross…
Second Development Horizon Established in the Spraberry Structural Cross-Section Showing Recent Spraberry Horizontal Target Intervals in the Spanish Trail Area Private 3rd Party Private 3rd Party Private 3rd Party Private 3rd Party…
Middle and Lower Spraberry Production Results Exceed Expectations All data normalized to 7,500 lateral length Type curve is oil portion (425 MBO) of 600 MBOE EUR projection (71% oil) reported in two stream Early data suggests…
Horizontal Wolfcamp B Production Results All data normalized to 7,500 lateral length Type curve is oil portion (425 MBO) of 600 MBOE EUR projection (71% oil) reported in two stream Curves represent the average of all Diamondback…
Horizontal Wells Deliver Higher IRRs, Require Lower Development Costs and Lead to Better Capital Efficiency Illustrative Wolfcamp B Horizontal Illustrative Vertical Well Economics Well Economics (7,500) IRR(1): 47% IRR(1): 25% EUR:…
Horizontal Drilling Update Diamondback Energy Acreage(1) UL III 4-1H PXD 2 Zone Test Peak 24-hr IP: 613 BOEPD Wolfcamp D and Lower Spraberry Peak 30-day rate: 440 BOEPD; 83% oil 4,051 lateral length Private 3rd Party Wolfcamp A…
Permian Basin Economics Resetting Due to Horizontal Well Results Not only are Permian Basin economics some of the Undiscounted Acreage Value(2) strongest in the US, but recent horizontal well results 250 are resetting expectations…
Strong Production Growth Underway Leading the industry shifting from vertical to horizontal Diamondback Rigs Over Time well development 6 Currently operating 5 rigs (1 vertical, 4 horizontal) 5 Growth further accelerated with arrival…
Horizontal Execution Underway Horizontal Efficiency Gains Drilling wells faster/cheaper and decreasing cycle times 1,071 leads to more wells in 2014 708 3Q13 7,500 horizontals averaged 14 days to TD 547 490 400 5th horizontal…
Operational Execution Driving Positive Results Horizontal Well Average Spud to TD Time(1) Vertical Well Average Spud to TD Time 23 Days 18 Days 16 Days 20 Days 15 Days 14 Days 19 Days 13 Days 13 Days 14 Days 11 Days 9 Days 8 Days…
Diamondbacks Cash Margin Leads Public Permian Peers FANG Percent Oil vs. Public Permian Peers(1)(2) FANG Cash Margin vs. Public Permian Peers(2)(3) (/BOE) 75% 80.00 Average: 50% 63% 58% 44% 43% 42% 70.00 69.82 60.00 58.55…
Midland County Acquisition Adds to FANGs Production Without Additional Capex or Expenses Key Highlights Midland County Mineral Interest Completed the acquisition of mineral interests under Midland 15,000 gross (12,500 net) acres in…
Financial Summary Revenue Growth Hedging ( in MMs) 132 Managements goal is to hedge 40% - 70% of oil production 97 1,000 barrels / day at 80.55 WTI (expires December 2013) 1,000 barrels / day at 109.70 Brent (expires April 2014)…
Diamondback Guidance(1) Full Year 2014 Production 15.0 16.0 MBOEPD Capital Expenditures 425 - 475 MM Horizontal Well Costs 6.9 - 7.4 MM Vertical Well Costs 2.0 - 2.2 MM Source: Company Filings, Management Data and…
2014 Capital Program 2014E Capital Plan 2014E Capital Expenditures 425 475 MM capital expenditures: Infrastructure Non-Op Horizontal Drilling: 85% Vertical 5% 2% Drilling and Currently operating 4 horizontal rigs Completion 8%…
In Conclusion Pure Play Exposure to the Midland Basin Realizing Horizontal Development and Stacked Pay Potential Leading Margins Driven by Low Expenses and High Percent Oil High Return Drilling Inventory Rapidly Increasing…
Appendix 22
Proved Reserves Overview (as of 9/1/2013) Diamondback proved reserves as of 9/1/2013, including: 2.1 MMBOE of proved reserves from completed Martin County and Dawson County acquisitions 8.6 MMBOE of proved reserves from completed…
Midland Basin Acquisitions Add to FANGs Long Term Growth Potential Complementary acreage blocks with strong horizontal delineation potential Martin County Acreage Dawson and Martin County Acreage Martin Deep rights(1) Acreage…
Stacked Pay Potential Being Realized in the Permian Basin Permian peers have achieved successful results from horizontal wells Diamondback Energy Acreage 1 Wolfcamp A, W&T Offshore, Chablis 5H, 7,112' lateral, 24-hour IP of 530 BOEPD…
Management Team Over 225 Years Combined Experience Years Team Prior Experience Experience Permian Basin Production Manager of Apache Corporation Vice President of Permian Basin for Laredo Petroleum Holdings Travis Stice Development…
EBITDA Reconciliation ( in thousands) Year ended December 31, Three Months Ended (1) 2009 2010 2011 2012 9/30/2013 Reconcilliation of Adjusted EBITDA to Net Income (Loss): Net Income (Loss) (2,706) 8,231 (386) (29,697) 14,596…
Corporate Contact Information Diamondback Energy, Inc Auditor 500 West Texas Grant Thornton LLP Suite 1225 Oklahoma City, Oklahoma Midland, Texas 79701 (432) 221-7400 Independent Petroleum Engineer Ryder Scott Company, L.P. Houston,…
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