Investor Presentaiton
Return of Capital Framework
World Class Resource
Low Cost Operations
Permian Leader
The Must-Own
Permian Pure Play
Financial Strength
Commitment to return ≥50% of free cash flow to stockholders allows for flexibility to reduce debt associated with transaction quickly and still return
meaningful cash to stockholders
Enhanced scale, quality, and cash flow durability supports a ~7% increase to the base dividend to $3.60 / share
Diamondback's return of capital strategy is built on a foundation of a sustainable, and growing, base dividend, plus a combination of share repurchases
and/or variable dividends
Base dividend protected down to ~$40 / Bbl WTI oil price with downside hedge protection at $55 oil
Base dividend viewed as a fixed obligation to stockholders, like interest expense to bondholders
Cumulative Return of Capital Paid Since Inaugural Base Dividend
Diamondback Base Dividend Growth
$37
$743
$334
$710
$2,670
$2,185 (1)
$6,679
DIADBACK
REY
39.0% CAGR
$3.000
$3.307
$3.600
$1.950
$1.525
$0.938
$0.500
2018
2019
2020
2021
2022
2023 YTD Total ROC
2018
2019
2020
2021
2022
2023 YTD
Annualized
Q4 2023+
Diamondback's return of capital strategy is built on a sustainable base dividend, opportunistic
share repurchases and variable dividends, and has returned over $6.6 billion since 2018
15
Note: Breakeven WTI oil price calculated as the per barrel price for oil needed to generate cash flow equivalent with the amount of capital required to keep its estimated Q4 2023 oil production flat in 2024. Assumes $3.00/Mcf Henry Hub gas prices and $20/Bbl
NGL prices; excludes the impact of current commodity hedges. Free cash flow calculated as operating cash flow before changes in working capital and dividends, less cash capex (defined below). Maintenance capex defined as estimated capital required to keep
estimated Q4 2023 oil production flat throughout the full year 2024. Tax-adjusted figures normalize cash tax rates to 21%.
Source: Company data, filings and estimates. All data as of 9/30/2023.
(1) Includes dividends paid and announced completed share repurchases. Excludes any Q4 2023 stock repurchases after November 6, 2023 or dividends to be declared for Q4 2023 payable in Q1 2024.
DIAMONDBACK
ENERGYView entire presentation