Diamondback Energy, Inc. · NASDAQ:FANG
Diamondback Energy — Q1 2025 Earnings Presentation
29 slides from Diamondback Energy's earnings presentation, May 6, 2025
Slide 1: Investor Presentation
Investor Presentation May 2025 1
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statemen
Slide 3: Disciplined Capital Allocator with Differentiated Returns
Disciplined Capital Allocator with Differentiated Returns The Must-Own Permian Pure-Play Best-In-Class Execution High Quality, Durable Midland Basin Inventory Stable Cash Flow Creation through the Cycle Investment Grade Balance Sheet 3
Slide 4: Disciplined Capital Allocator with Differentiated Returns
Disciplined Capital Allocator with Differentiated Returns Continued Free Cash Flow Generation: FANG Return of Capital Framework(5) $1,545 million of Free Cash Flow (“FCF”) in Q1 2025 ($5.33/ share)(1); $1,583 million of Adjusted FCF ($5.47 / share)(2) Q1 2025 Return of Capital: $864 million ($2.99
Slide 5: The Must-Own Permian Pure-Play
The Must-Own Permian Pure-Play Diamondback Acreage Map Asset Overview Oil Production 493 Net Mbo/d 264 476 FY23 1Q25 2Q25E Midland Basin Acres (Net - 000’s) ~738 ~778 ~350 YE23 1Q25 Today Total Permian Basin Acres ~859 ~900 ~494 (Net - 000’s) YE23 1Q25 Today Gross Midland Basin Locations ~5,250 ~8,0
Slide 6: First Quarter Highlights and Execution
First Quarter Highlights and Execution Investment Framework and Q1 2025 Results Q1 2025 Execution Q4 2024 Q1 2025 Grow Per Share Oil Production Oil Production Oil production of 475.9 Mbo/d (850.7 Mboe/d) +1% per Million Shares 1,631 1,643 Oil production per million shares of 1,643 Bo/d, up 7% ye
Slide 7: Overview of Updated 2025 Guidance
Overview of Updated 2025 Guidance 2025 Guidance and Implied Per Share Value vs 2024 2025 Oil Production and Activity Outlook Original 2025 Current 2025 2024A Guidance Guidance Revised 2025 Activity 480 – 495 vs. Original Guidance Q1 2025A Oil Production 475.9 ~27 Mbo/d Net Mbo/d 491.5 487.5 Activity
Slide 8: Industry Leading Free Cash Flow Generation and Capital Efficiency
Industry Leading Free Cash Flow Generation and Capital Efficiency 2024 Free Cash Flow Margin vs. Peers (FCF / E&P Revenue; FCF / Boe of Production) FCF / Revenue FCF / Boe 40% 40% 36% $20 31% $18.30 27% 26% $15 30% $16.63 $13.89 FCF Margin 24% FCF / Boe 23% $13.81 20% 20% 20% $10 $10.80 $10.95 $10.0
Slide 9: Consistent Leader in Capital Efficiency and Low-Cost Operations
Consistent Leader in Capital Efficiency and Low-Cost Operations Diamondback’s strong, oil-weighted asset base and MBO per $MM CAPEX efficient cost structure enable it to consistently be FANG Peer 8 Peers an industry leader in capital efficiency 2019 Shift to Co-development Major Capital Allocati
Slide 10: 2025 Free Cash Flow Sensitivity
2025 Free Cash Flow Sensitivity Illustrative Consolidated 2025E Adj. Free Cash Flow at Various WTI Oil Prices ($MM)(1)(2) 2025 Assumptions Base Dividend Return of Capital Balance Sheet FCF Yield (EV) FCF Yield (Market Cap) 480 – 495 Mbo/d Oil Production $8,000 25% $3.4 - $3.8 billion $6,850+ Cash CA
Slide 11: Return of Capital Framework
Return of Capital Framework Diamondback’s return of capital strategy is underpinned by a sustainable and growing base dividend, as well as additional return of capital from a combination of share repurchases and/or variable dividends Current $4.00 / share base dividend protected down to ~$37 / B
Slide 12: Investment Grade Balance Sheet
Investment Grade Balance Sheet Recent Highlights and Balance Sheet Summary: FANG’s Liquidity and Capitalization ($MM) Standalone liquidity of ~$3.8 billion(1) FANG's Consolidated Capitalization 3/31/2025 Consolidated net debt of ~$12.3 billion(2) Cash and cash equivalents $1,816 Investment gra
Slide 13: Updated Full Year 2025 Guidance
Updated Full Year 2025 Guidance Full year 2025 oil production guidance of 480 – 495 Mbo/d Full Year 2025 Diamondback (857 – 900 Mboe/d) 2025 Net production – Mboe/d 857 – 900 (from 883 – 909) Full year 2025 CAPEX budget of $3.4 – $3.8 billion 480 – 495 2025 Oil production – Mbo/d (from 485 – 498
Slide 14: Appendix
DIAMONUBACK ENERGY APPENDIX 14 DIAMONOBACK ENERGY
Slide 15: Current Inventory Summary
Current Inventory Summary Midland Basin Gross (Net) Locations Economic at $50 / Bbl(1) Midland Basin Development by Zone (% of Net Lateral Ft.) <10,000' 10,000'+ 12,500'+ Total Avg. Lateral WCD WCB WCA LS MS / JM Other MS / JM 470 (362) 752 (598) 368 (284) 1,590 (1,244) 10,200' LS 327 (248) 663 (548
Slide 16: Return of Capital History and Highlights
Return of Capital History and Highlights Declared Base Dividends Since 2018 ($ / Share) $6.0 Billion Authorized Stock Repurchase Program(1) +8.0x Base Dividend Growth 3x to initial authorization ~8% average quarterly CAGR ~30.2MM shares repurchased to date $4.00 $6,000 $3.70 $3.38 35. 00 $1,845 $6,
Slide 17: Longstanding Track Record of Capital Efficiency and Growing Per Share Metrics
Longstanding Track Record of Capital Efficiency and Growing Per Share Metrics Diamondback Cash Flow / Free Cash Flow Since IPO ($ / Share)(1) FCFPS +22.9x Cash Flow / Share growth since 2012 CFPS $36.96 $31.24 $30.48 $22.02 $14.86 $17.74 $25.98 $9.59 $12.79 $16.23 $18.76 $3.54 $6.97 $6.64 $4.63 $13.
Slide 18: Reserves Summary
Reserves Summary Year-end 2024 proved reserves increased 63% y/y to 3,557 Total Proved Reserve Growth (MMBoe) MMBoe (1,761 MMBo, 67% PDP) FANG Standalone VNOM 1P BOE / Share PDP reserves of 2,385 MMBoe; PDP oil reserves of 1,121 MMBo 3,557 24 350 0.0 Oil comprised 50% of total proved reserves
Slide 19: Peer Leading ESG Profile
Peer Leading ESG Profile Diamondback is committed to successful execution on its environmental strategy and targets discussed in the 2024 Corporate Responsibility Report and highlighted below Diamondback received the Gold Standard for our first year reporting to the Oil & Gas Methane Partnership
Slide 20: Governance Summary
Governance Summary Board Independence & Diversity: 10 of 13, or 77%, of Director Nominees at 2025 Annual Meeting of Stockholders Board Independence and Diversity are independent 100% of Audit, Compensation and Nominating and Corporate Governance Committee Members are independent 5 of 13, or 38
Slide 21: Current Hedge Summary: Oil
Current Hedge Summary: Oil Consolidated Crude Oil Hedges (Bbl / day; $ / Bbl) Crude Oil Hedges Q2 2025 Q3 2025 Q4 2025 Q1 2026 Long Puts - Brent 50,000 36,000 21,000 4,000 Price / Premium $58.30 / -$1.50 $56.39 / -$1.50 $55.00 / -$1.47 $55.00 / -$1.45 Long Puts - MEH 96,000 102,000 65,000 15,000 Pri
Slide 22: Current Hedge Summary: Natural Gas
Current Hedge Summary: Natural Gas Consolidated Natural Gas Hedges (Mmbtu / day; $ / Mmbtu) Natural Gas Hedges Q2 2025 Q3 2025 Q4 2025 FY 2026 FY 2027 Costless Collars - Henry Hub 690,000 690,000 690,000 620,000 40,000 Floor / Ceiling $2.49 / $5.28 $2.49 / $5.28 $2.49 / $5.28 $2.77 / $6.33 $3.00 / $
Slide 23: Viper Summary
Viper Summary Viper Energy, Inc: Viper Mineral and Royalty Assets Publicly-traded mineral and royalty subsidiary (NASDAQ: VNOM) created by Diamondback ◊ Focused on owning and acquiring minerals and royalty interests in the Permian Basin, with a primary focus on Diamondback-operated acreage On Ma
Slide 24: Overview of Equity Method Joint Ventures
Overview of Equity Method Joint Ventures Current Investments Realized Investments EPIC Crude Deep Blue Verde BANGL Produced Water & Natural Gas to Long-Haul Crude Oil Long-Haul Y Grade Project Type Sourced Water Gasoline Pipeline NGL Pipeline Logistics Conversion Operator Other Investors Public Shar
Slide 25: Surface Acreage and Potential Uses: Power Generation
Surface Acreage and Potential Uses: Power Generation Diamondback Surface Acreage(1) Diamondback is the Premier Partner Diamondback Surface Acres: ~65k 1 Provides site for power plant and data center construction 2 Supplies natural gas for power generation 3 Purchase a portion of power for internal o
Slide 26: Non-GAAP Definitions and Reconciliations
Non-GAAP Definitions and Reconciliations Adjusted EBITDA: Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of our financial statements, such as industry analysts, investors, lenders and rating agencies. The Company defines Adjusted EBITDA a
Slide 27: Non-GAAP Definitions and Reconciliations
Non-GAAP Definitions and Reconciliations Operating Cash Flow before Working Capital Changes and Free Cash Flow: Operating cash flow before working capital changes, which is a non-GAAP financial measure, represents net cash provided by operating activities as determined under GAAP without regard to
Slide 28: Non-GAAP Definitions and Reconciliations
Non-GAAP Definitions and Reconciliations Net Debt: The Company defines the non-GAAP measure of net debt as total debt (excluding debt issuance costs, discounts, premiums and fair value hedges) less cash and cash equivalents. Net debt should not be considered an alternative to, or more meaningful t
Slide 29: Diamondback Energy Corporate Headquarters
Diamondback Energy Corporate Headquarters Adam Lawlis, Vice President, Investor Relations 500 West Texas Ave., Suite 100 (432) 221-7400 Midland, TX 79701 ir@diamondbackenergy.com www.diamondbackenergy.com 29