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February 2015 Investor Presentation – Diamondback Energy, Inc.

Diamondback Energy, Inc. · Feb 1, 2015 · 28 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. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 1
    Investor Presentation February 2015
  2. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 2
    Diamondback Energy Overview Track Record of Capital Discipline, Stockholder Returns and Maintaining a Strong Balance Sheet Diamondback Energy Acreage Peer-leading drill and complete times translate to lower well costs and higher…
  3. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 3
    2014: Another Strong Year for Diamondback Energy 2014 Production Increased 166% Compared to 148% Growth in 2013 Yearly Production Growth1 Oil production of 5.4 MMbbl was up 166% from 2.0 MMbbl in 2013 Beat the high end of…
  4. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 4
    Resilient Lower Spraberry Economics in Spanish Trail Spanish Trail Lower Spraberry Economics 280% 240% At 50 WTI, Generating 50-125% ROR 200% 160% 120% 80% 40% 0% 30/bbl 40/bbl 50/bbl 60/bbl 70/bbl (1) 6.0MM (excl.…
  5. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 5
    Lower Spraberry Performance (1) Note: Based on 50/BBL WTI (46.50/BBL realized price). Realized gas and NGL pricing is 3.40/Mcf and 14/Bbl. Daily production normalized for operational shut-ins. Type curves based on normalized…
  6. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 6
    Significance of the Lower Spraberry New development target in formation considered marginally Acreage Map Gaines Dawson economic for decades Positive tests across acreage base Martin 1 mmboe EUR in Midland County and 0.8 mmboe in…
  7. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 7
    A Growth Story Average Daily Net Production (Mboe/d)1 Revenue Growth1 ( in MMs) Oil Gas/NGLs 26-28 Mboe/d Guidance2 496 19.5 208 7.3 97 14.7 3.8 5.5 2.7 FY2012 FY2013 FY2014 FY2015E FY2012 FY2013 FY2014 Key…
  8. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 8
    Diamondback Energy Reserves Summary Total Reserves Growth1 (MMboe) Proved Reserves Represent Over a Decade Proved Developed Proved Undeveloped VNOM Proved Developed VNOM Proved Undeveloped 112.8 of Reserve Life2 8.4 2014 total…
  9. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 9
    Peer Leading Capital Efficiency and Leverage FY2015E Recycle Ratio1 Key Highlights Peer leading cash margins and F&D costs drive 151% differential recycle ratio 131% 110% Recent equity offering strengthened an already strong 93%…
  10. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 10
    Peer Leading Cash Margins Cash Margins Have Consistently Exceeded Peers1,2 FANG Operating Expenses Below Peers1,3 (/boe) LOE Prod. Taxes G&A Peer Avg. FANG Peer Average FANG Realized Price (/boe) 18.09 18.64 85.00 /boe 16.88 15.37…
  11. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 11
    Diamondback Has Track Record of Driving Down Operating Costs LOE Track Record (/boe) LOE Average Gross Producing Wells Average Gross Producing Vertical Wells 16.00 900 Sept 14 800 14.00 Acquisition 700 12.00 SW Martin Co.…
  12. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 12
    2015: Capital Discipline Remains Key Responding to Market Conditions with 2015 Production and Capex Guidance Permian Rig Count2 Aggressively pursuing incremental service cost concessions 500 Expects to reach positive cash flow in the…
  13. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 13
    Recalibration of Service Costs Monthly Permian Rig Count1 Cost Concessions are Responding to Lower Commodity Environment 500 Company is aggressively pursuing cost reductions 400 and anticipates an overall reduction of at least…
  14. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 14
    Widespread Lower Spraberry Success Notable FANG Lower Spraberry Drilling Results Acreage Map Well(s) County Achievement IP30/1,000 Gaines Dawson Believed to be industrys first hz Lower Spraberry well in Upton 10 Neal F Unit 8 1…
  15. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 15
    Horizontal Execution Peer Leading Performance Days vs Depth Hz1 Diamondback Peers Faster drilling times lead to lower well costs and higher 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 rates of return 2,000…
  16. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 16
    Downspacing and Stacked Pay Potential in Spanish Trail Upside Potential Increase from 6 to 8 per section Increase from 8 to10 per section Increase from 4 to 8 per section Active Development Future Development…
  17. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 17
    Robust Multi-year Inventory Identified Net Potential Drilling Locations 996 3,390 673 1,584 73 64 Horizontal Additional 40-Acre Additional 20-Acre Total PUDs Horizontal PUDs 40-Acre Spacing Drilling Locations 4% of…
  18. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 18
    Financial Overview 18
  19. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 19
    Liquidity and Financial Profile FANGs Liquidity and Capitalization1 FANG's Pro Forma Capitalization as of 12/31/14 Net Debt to annualized 4Q14 EBITDA of 1.2x1 (MM) Cash and cash equivalents 30 Strong balance sheet with the ability to…
  20. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 20
    Diamondback Energy Hedging Hedging1 Oil Swaps 2015 Average Bbls Per Day Average Price Per Bbl Oil Swaps 2015 Average Bbls Per Day Average Price Per Bbl First Quarter 15 LLS 6,344 95.57 Third Quarter 15 LLS 3,000 90.99 First…
  21. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 21
    Diamondback Energy - 2015 Guidance1 Diamondback Capex Budget ( - million) Diamondback Viper Energy Horizontal Drilling and Completion 285 315 Energy Inc. Partners LP Net Production Mboe/d1 26.0 28.0 4.2 4.5 Infrastructure 20 30…
  22. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 22
    In Conclusion Diamondback Energy is a low-cost operator in one of the highest return basins. Complementary acreage additions Midland Basin focused Maintain operations excellence Efficient capital allocation Debt/EBITDA < 2X…
  23. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 23
    APPENDIX 23
  24. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 24
    Lower Spraberry Type Curve & Economics at 50 Oil Midland County Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 990 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 1,030 650 810 990 1,200 Oil %, 2 stream basis 79% 5.5…
  25. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 25
    Midland County Wolfcamp B Type Curve & Economics at 50 Oil Type Curve Economics ROR Sensitivity EUR, 2 Stream Mboe 638 EUR Mboe Well Cost MM Peak 30 day IP, boe/d 808 600 638 700 750 Oil %, 2 stream basis 76% 5.5 22% 25%…
  26. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 26
    Superior Geosteering & Hydraulic Fracturing Offset Well Control Wolfcamp B Seismic Surface Hz Target Window (30) Well Path Frac Gradient - Blue Breakdown Pressure - Red Prop Weight - Red Fluid Volume - Blue Total Gas…
  27. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 27
    Viper Energy Partners Landmark IPO of Mineral Interests September 2013 - acquired 14,804 gross acres of minerals in the core of the Northern Midland Basin Non-traditional investment for an E&P company, unique opportunity with…
  28. February 2015 Investor Presentation – Diamondback Energy, Inc. – slide 28
    Development of Viper Energys Spanish Trail is Well Underway Operators Incentivized to Drill Two Dedicated Hz Drillers Mineral interest in 15,444 gross acres in Midland County known as Spanish Trail Viper does not pay direct LOE or…

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