Page 1

DIAMONDBACK Energy Diamondback Energy , Inc. Announces First Quarter 2021 Financial and Operating Results May 3 , 2021 MIDLAND , Texas , May 03 , 2021 ( GLOBE NEWSWIRE ) Diamondback Energy , Inc. ( NASDAQ : FANG ) ( " Diamondback " or the " Company " ) today announced financial and operating results for the first quarter ended March 31 , 2021 . FIRST QUARTER 2021 HIGHLIGHTS • Previously announced Q1 2021 average production of 184.2 MBO / d ( 307.4 MBOE / d ) • Generated Q1 2021 cash flow from operating activities of $ 624 million . Operating Cash Flow Before Working Capital Changes ( as defined and reconciled below ) of $ 627 million • Q1 2021 cash capital expenditures of $ 296 million ; Q1 2021 activity - based capital expenditures incurred of approximately $ 267 million • Generated Q1 2021 Free Cash Flow ( as defined and reconciled below ) of $ 331 million • Q1 2021 cash operating costs of $ 8.06 per BOE ; including cash general and administrative ( " G & A " ) expenses of $ 0.54 per BOE and lease operating expenses ( " LOE " ) of $ 3.69 per BOE • Closed the previously announced acquisition of assets from Guidon Operating LLC ( " Guidon " ) and the acquisition of QEP Resources , Inc. ( " QEP " ) in an all stock merger , adding an aggregate of over 80,000 net acres to our asset base in the Permian Basin and generating significant synergies • Signed definitive agreements in the second quarter of 2021 to divest Williston Basin assets acquired in the merger with QEP and non - core Permian Basin assets for total consideration of $ 832 million , subject to certain closing adjustments ; assets being sold have estimated full year 2021 net production of approximately 16 MBO / d ( 28 MBOE / d ) • Flared 0.75 % ( 1.0 % including QEP ) of gross natural gas production in the first quarter of 2021 • Received $ 103 million federal net operating loss carryback and alternative minimum tax credit refund in January 2021 , which included $ 3 million of interest income • Initiating Q2 2021 production guidance of 232.0 - 236.0 MBO / d ( 387.0 - 394.0 MBOE / d ) and cash capex guidance of $ 350 $ 400 million " Diamondback started 2021 with a successful first quarter , effectively overcoming the production obstacles presented by Winter Storm Uri while keeping our capital and operating costs near all - time lows . As a result , we generated over $ 330 million of Free Cash Flow in the first quarter . At current strip pricing , and pro forma for our asset sales announced today , we expect to continue generating significant Free Cash Flow in 2021. This Free Cash Flow , coupled with the cash proceeds from the successful execution of our three non - core asset sales announced today , will allow us to accelerate our debt reduction program , further strengthening our balance sheet , " stated Travis Stice , Chief Executive Officer of Diamondback . Mr. Stice continued , " We continue to be pleased with the seamless integration of both the Guidon and QEP assets , and we are achieving our synergy targets ahead of schedule and in excess of those highlighted during the acquisition announcement . This progress only adds to our ' exploit and return ' strategy of spending maintenance capital to hold oil production flat , while using Free Cash Flow to reduce debt and return cash to stockholders . " PENDING WILLISTON BASIN ASSET DIVESTITURE • Divesting approximately 95,000 net acres in the Williston Basin ; a complete Williston exit for Diamondback • Gross purchase price $ 745 million , subject to certain closing adjustments ; net proceeds expected to be applied towards debt reduction • Assets being sold have estimated net production of approximately 15 MBO / d ( 25 MBOE / d ) for the full year 2021 , including approximately 12 MBO / d ( 19 MBOE / d ) of estimated net production attributable to the Williston Basin assets acquired in the merger with QEP from the March 17 , 2021 closing date through year end 2021 • Transaction expected to close in the third quarter of 2021 , subject to continued diligence and closing conditions Goldman Sachs & Co. LLC is acting as exclusive financial advisor to Diamondback for the Williston Basin sale , with Latham & Watkins LLP serving as legal advisor to Diamondback . PENDING PERMIAN BASIN NON - CORE ASSET DIVESTITURES • Divesting approximately 7,000 net acres of non - core Southern Midland Basin acreage in Upton county and approximately 1,300 net acres of non - core , non - operated Delaware Basin assets in Lea county , New Mexico • Combined gross purchase price of $ 87 million , subject to certain closing adjustments ; net proceeds expected to be applied towards debt reduction • Assets being sold have estimated net production of approximately 900 BO / d ( 2,650 BOE / d ) for the full year 2021 from 140 producing wells • Both transactions expected to close in the second quarter of 2021 , subject to continued diligence and closing conditions