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Diamondback Energy | Q3 2013 Earnings Presentation | Tracy Dick | Page 10 of 11 | November 23, 2024

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toolButton prevButton nextButton prevKeyButton nextKeyButton prevKeyButton nextKeyButton byDateAscButton byDateDescButton byCompanyNameAscButton byCompanyNameDescButton hidden hidden		Document: "Q3 2013 Earnings Presentation" View Full Document		× Search Selection Search by Text Search Search by Slide Search Cross reference your docFinder results against PLS' extensive news archives. For demo or training contact Melwyn Oommen, melwyn.oommen@drillinginfo.com
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2 Rigs 4 Rigs 6 Rigs 40-Acre spacing 21.4 10.7 7.1 20-Acre spacing 28.2 14.1 9.4 Total 49.6 24.8 16.5 2 Rigs 4 Rigs 6 Rigs Horizontal locations 53.4 26.7 17.8 WTI NPV-10 PI (5) ($ / Bbl) ($ in millions) (1) IRR (1) ($ to $) $100 $8.2 60% 1.17x 90 6.6 47% 0.94x 80 5.0 35% 0.71x Source: Company Filings, Management Data and Estimates. (1) Realized oil price equal to WTI less $3.50 / Bbl. NGLs assumed 40% of WTI. Natural gas assumed $3.50 / Mcf. Based on working interest of 100% with 75% NRI. (2) Based on midpoint of 2014 guidance for vertical wells of $2.0 MM to $2.2 MM. (3) Represents costs/BOE to Company adjusted for standard Permian Basin royalty interests. (4) Based on assumed WTI price of $90.00/Bbl. SEC pricing for 2012 was $88.13/Bbl. (5) Profit to investment calculated as NPV-10 to well cost. (6) Years of drilling based on 12 wells per rig per year. Based on 1,281 gross (994 net) wells. (7) Years of drilling based on 20 wells per rig per year. Based on 857 gross (800 net) wells (40-acre) and 1,128 gross (1,031 net) wells (20-acre). Horizontal Wells Deliver Higher IRRs, Require Lower Development Costs and Lead to Better Capital Efficiency ? IRR (1) : 47% ? EUR: 600 MBOE (2 stream) ? Well Cost: $7.0 MM ? Cost To Develop (3) : $15.56/BOE ? NPV-10 ($MM) (4) : $6.6 MM (Mineral Interests add $3.4 MM of incremental NPV-10) ? For every 100 MBOE increase in EUR the cost to develop decreases by ~$2.25/BOE ? For every $100K decrease in well cost the cost to develop decreases by ~$0.22/BOE Illustrative Wolfcamp B Horizontal Well Economics (7,500’) ? IRR (1) : 25% ? EUR: 133 MBOE ? Well Cost (2) : $2.1 MM ? Cost To Develop (3) : $21.05/BOE ? NPV-10 ($MM) (4) : $0.9 MM (Mineral Interests add $0.7 MM of incremental NPV-10) Illustrative Vertical Well Economics ? Vertical Inventory (Years) (7) : ? Horizontal Inventory (Years) (6) : WTI NPV-10 PI (5) ($ / Bbl) ($ in millions) (1) IRR (1) ($ to $) $100 $1.3 33% 0.62x 90 0.9 25% 0.43x 80 0.5 19% 0.24x 9