Diamondback Energy today provided an operational update for the first quarter of 2021 and announced revised full year 2021 guidance.

FIRST QUARTER 2021 UPDATE

• Q1 2021 average production of 184.2 MBO/d (307.4 MBOE/d)
• Q1 2021 average unhedged realized prices of $56.94 per barrel of oil, $22.94 per barrel of natural gas liquids and $3.05 per Mcf of natural gas, resulting in a total equivalent price of $42.36 per BOE
• Q1 2021 average hedged realized prices of $46.81 per barrel of oil, $22.76 per barrel of natural gas liquids and $2.64 per Mcf of natural gas, resulting in a total equivalent price of $35.75 per BOE. Diamondback realized total hedging losses of $102 million in the first quarter, including $80 million of realized gains from the early termination of interest rate swaps
• Q1 2021 estimated cash CAPEX of $280 - $300 million
• Closed our previously announced acquisition of approximately 32,500 net acres in the Northern Midland Basin and certain related oil and natural gas assets from Guidon Operating LLC on February 26, 2021 for approximately $375 million in cash and the issuance of an aggregate of 10.7 million shares of our common stock
• Closed our previously announced acquisition of QEP Resources in an all-stock merger on March 17, 2021 for an aggregate of approximately 12.2 million shares of our common stock

REVISED FULL YEAR 2021 GUIDANCE

Diamondback today announced revised 2021 production, capital and operating guidance. This guidance has been updated to give effect to the QEP transaction, which was completed on March 17, 2021.

Highlights Include:

• Full year 2021 oil production guidance of 218 – 222 MBO/d (360 – 370 MBOE/d), including approximately 12 MBO/d (~19 MBOE/d) of contribution from Diamondback’s Williston Basin assets
• Full year 2021 cash CAPEX guidance of $1.60 – $1.75 billion
• The Company expects to drill between 200 and 215 gross (178 – 192 net) wells and complete between 275 and 285 gross (250 – 259 net) wells with an average lateral length of approximately 10,300 feet in 2021

“Diamondback executed well in the first quarter 2021 and quickly overcame the adversity presented by Winter Storm Uri in February. We closed our two previously announced Guidon and QEP acquisitions in the quarter, and subsequently executed a successful tender offer and refinancing of QEP’s senior notes. This refinancing adds $40 million of annual interest cost savings to the $60 - $80 million of previously announced annual cost synergies expected to be extracted from the QEP transaction," stated Travis Stice, Chief Executive Officer of Diamondback.

Mr. Stice continued, “Our updated 2021 guidance announced today reflects our commitment to capital discipline and capital efficiency, as we expect to keep pro forma fourth quarter 2020 production flat in 2021 with about 10% less capital spent than standalone Diamondback in 2020. While commodity prices have improved, global spare oil production capacity remains high as global oil demand recovers from the pandemic. Diamondback continues to see no need to grow oil production into this artificially undersupplied market, and instead plans to generate Free Cash Flow to pay our dividend and pay down debt."

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