Slide 1: Investor Presentation
Investor Presentation November 2024 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 Stable Cash Flow Creation through the Cycle Investment Grade Balance Sheet High Quality, Durable Midland Basin Inventory 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 $708 million of Free Cash Flow (“FCF”) in Q3 2024 ($3.46/ share)(1); $1.0 billion of Adjusted FCF ($4.90 / share)(2) Q3 2024 Return of Capital: $780 million ($2.65 / Shar
Slide 5: The Must-Own Permian Pure-Play
The Must-Own Permian Pure-Play Diamondback Acreage Map Asset Overview Diamondback Oil Production (1) 473 Net Mbo/d 276 321 2Q24A 3Q24A 4Q24E Net Midland Basin Acres ~ 716 (000’s) ~ 347 6/30/24 9/30/24 Net Permian Basin Acres ~ 485 ~ 870 (000’s) 6/30/24 9/30/24 Gross Core Locations ~ 6,100 (Sub $40 B
Slide 6: Endeavor Merger Synergy Scorecard
Endeavor Merger Synergy Scorecard Synergy Overview of Expected Annual Savings Realized Progress to Date Current combined Midland Basin D,C&E well Lower combined well costs costs of ~$600 / ft., down ~$175 / ft. from legacy EER well costs of $775 / ft. Capital and Expect combined cash operating
Slide 7: Synergy Update: Midland Basin Well Costs
Synergy Update: Midland Basin Well Costs Acquisition underwritten on applying FANG’s Midland Day 1 Realized Synergies (~$175 / Ft.) Basin capital costs to legacy Endeavor wells; ~$150 / Rig Rates / foot of implied D,C&E cost savings at the time of Power & Fuel 11% announcement Drillout Spudder / 1
Slide 8: Third Quarter Highlights and Execution
Third Quarter Highlights and Execution Investment Framework and Q3 2024 Results Q3 2024 Execution Q2 2024 Q3 2024 Maintain Oil Volumes Oil Production per Oil production of 321.1 Mbo/d (571.1 Mboe/d) Million Shares 1,548 1,568 Oil production per million shares of 1,568 Bo/d, up 5% year over year
Slide 9: Return of Capital Framework
Return of Capital Framework Diamondback’s return of capital strategy is underpinned by a sustainable and growing base dividend, as well as additional return of capital from a combination of share repurchases and/or variable dividends Strategy allows the flexibility to pivot to share repurchases
Slide 10: Return of Capital History and Highlights
Return of Capital History and Highlights Declared Base Dividends Since 2018 ($ / Share) $6.0 Billion Authorized Stock Repurchase Program(1) +6.2x Base Dividend Growth 3x to initial authorization ~8% average quarterly CAGR ~23.3MM shares repurchased to date $3.60 $6,000 $3.38 $3.00 30. 00 $6, 000 $0.
Slide 11: Industry Leading Free Cash Flow Generation and Capital Efficiency
Industry Leading Free Cash Flow Generation and Capital Efficiency FY 2023 Free Cash Flow Margin vs. Peers (FCF / E&P Revenue; FCF / Boe of Production)(1) FCF / Revenue FCF / Boe 40% 36% $20 $17.89 29% 30% 26% 25% $15 24% $15.15 FCF Margin FCF / Boe $13.81 20% 19% 20% $11.69 $12.06 17% $10 14% $8.34
Slide 12: 4Q24E Annualized Free Cash Flow Sensitivity
4Q24E Annualized Free Cash Flow Sensitivity Illustrative Consolidated 4Q24E Annualized Free Cash Flow at Various WTI Oil Prices ($MM)(1) Q4 2024 Assumptions(2) Base Dividend Additional FCF Returned Remaining FCF FCF Yield (EV) FCF Yield (Market Cap) 470 - 475 Mbo/d Oil Production $7,100+ $7,500 25%
Slide 13: Investment Grade Balance Sheet
Investment Grade Balance Sheet Recent Highlights and Balance Sheet Summary: FANG’s Liquidity and Capitalization ($MM) Standalone liquidity of ~$2.6 billion(1) FANG's Consolidated Capitalization 9/30/2024 Consolidated net debt of ~$12.7 billion(2) Cash and cash equivalents $370 Upgraded by S&P
Slide 14: High-Grading Midland Basin Inventory
High-Grading Midland Basin Inventory TRP Energy (“TRP”) Trade Overview: Asset Trade Map Signed agreement to trade certain Delaware Basin assets and $237.5 million to TRP in exchange for Midland Basin assets that enhance inventory portfolio FANG Midland Acreage TRP Expected to be accretive to nea
Slide 15: Updated 2024 Guidance
Updated 2024 Guidance Updated 2024 guidance gives effect to Endeavor merger, Diamondback Viper which was completed on September 10, 2024 587 – 590 2024 Net production – Mboe/d 48.75 – 49.25 (from 462 – 470) Full year 2024 oil production guidance of 335 – 337 Mbo/d, 335 – 337 up from 273 – 276 Mb
Slide 16: Appendix
DIAMONUBACK ENERGY APPENDIX 16 DIAMONOBACK ENERGY
Slide 17: Reserves Summary
Reserves Summary Year-end 2023 proved reserves increased 7% y/y to Total Proved Reserve Growth (MMBoe) 2,178 MMBoe (1,144 MMBo, 69% PDP) FANG Standalone VNOM 1P BOE / Share PDP reserves of 1,497 MMBoe; PDP oil reserves of 2,178 744 MMBo 2,033 15 1,789 200 0.0 Oil comprised 53% of total proved re
Slide 18: Longstanding Track Record of Capital Efficiency and Growing Per Share Metrics
Longstanding Track Record of Capital Efficiency and Growing Per Share Metrics Diamondback Cash Flow / Free Cash Flow Since IPO ($ / Share)(1) FCFPS +22.4x Cash Flow / Share growth since 2012 CFPS $36.96 $31.24 $22.02 $14.86 $17.74 $25.98 $9.59 $12.79 $16.24 $3.54 $6.97 $6.64 $4.63 $13.64 $1.33 $1.03
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 As part of this commitment, Diamondback is a proud member of the Oil & Gas Methane Partnership 2.0 (“OGM
Slide 20: Environmental Performance Scorecard
Environmental Performance Scorecard Flaring (% of Gross Gas Production) GHG Intensity (mt / mboe Produced) Methane Intensity (mt / mboe Produced) Goal: Eliminate Routine Flaring by 2025(1) Goal: Reduce 2019 intensity by 50% by 2024 Goal: Reduce 2019 intensity by 70% by 2024 FANG Operated 3rd Party P
Slide 21: Governance Summary
Governance Summary Board Independence & Diversity: Board Independence and Diversity 11 of 12, or 92%, of Board are independent 100% of Committee Members are independent 5 of 12, or 42%, of Board are diverse (gender or ethnic minority) Board Leadership: 42% of Three female directors with Leader
Slide 22: Current Hedge Summary: Oil
Current Hedge Summary: Oil Consolidated Crude Oil Hedges (Bbl/day, $/Bbl) Crude Oil Hedges Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Long Puts - Brent 82,000 52,000 33,000 10,000 – Price / Premium $57.44 / -$1.52 $60.00 / -$1.48 $60.00 / -$1.50 $60.00 / -$1.63 – Long Puts - MEH 35,000 58,000 46,000 22
Slide 23: Current Hedge Summary: Natural Gas
Current Hedge Summary: Natural Gas Consolidated Natural Gas Hedges (Mmbtu/day, $/Mmbtu) Natural Gas Hedges Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2026 Costless Collars - Henry Hub 398,261 690,000 630,000 630,000 630,000 80,000 Floor / Ceiling $2.78 / $6.53 $2.53 / $5.41 $2.49 / $5.46 $2.49 / $5.
Slide 24: 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 ~36,6
Slide 25: Minerals Portfolio Offers Significant Value Upside Potential
Minerals Portfolio Offers Significant Value Upside Potential Key Highlights Pro Forma Asset Minerals Locator Map Portfolio High royalty interest enhances further upside value creation Minerals Overlap Transaction adds significant in basin scale Enhances combined reinvestment rate through increas
Slide 26: 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 27: Overview of Equity Method Joint Ventures
Overview of Equity Method Joint Ventures EPIC Crude BANGL Deep Blue Wink to Webster WTG Produced Water & Long-Haul Crude Oil Long-Haul Y Grade Long-Haul Crude Oil Gas Gathering and Project Type Sourced Water Pipeline NGL Pipeline Pipeline Processing Logistics Operator Other Investors Full In-Service
Slide 28: 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 29: 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 30: 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 31: 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 31