Diamondback Energy (FANG) Announces Midland Basin Acquisition

Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback” or the “Company”) today announced it has entered into a definitive purchase agreement to acquire all leasehold interests and related assets of Guidon Operating LLC ( “Guidon” or the “Seller”) in exchange for 10.63 million shares of Diamondback common stock and $375 million of cash. The cash portion of this transaction is expected to be funded through a combination of cash on hand and borrowings under the Company’s credit facility.

ACQUISITION HIGHLIGHTS:

• Approximately 32,500 net acres in the Northern Midland Basin, primarily held by production allowing for capital efficient full field development
• Q3 2020 average production of 11.6 MBO/d (17.9 MBOE/d)
• 395 estimated gross (324 net) horizontal locations with an average lateral length of over 10,500 feet
• 95% of acreage operated with an average 82% working interest
• Eight drilled but uncompleted wells (“DUCs”)
• Accretive on key 2021 per share metrics including cash flow per share and free cash flow per share
• Accretive to 2021 leverage metrics and lowers Diamondback’s 2021 expected reinvestment ratio
• Diamondback will issue 10.63 million shares of common stock to the Seller at closing, subject to adjustment
• Diamondback intends to finance the cash portion of the purchase price through a combination of cash on hand and existing borrowing capacity under its revolving credit facility
• Anticipated closing at the end of February 2021

“The acquisition of these assets from Guidon checks every box of Diamondback’s corporate development strategy. This deal is accretive on all relevant 2021 financial metrics, accelerates our de-leveraging and adds high quality top quartile inventory to our Midland Basin portfolio. As a result of this deal, Diamondback is expected to reduce capital spend on our existing assets and re-allocate a portion of that capital to high return projects on the Guidon acreage. Diamondback will not only get bigger through this transaction, but most importantly better,” stated Travis Stice, Chief Executive Officer of Diamondback.

ADVISORS:

Morgan Stanley & Co. LLC is serving as exclusive financial advisor to Diamondback, and Akin Gump Strauss Hauer & Feld LLP is serving as legal advisor to Diamondback. Citigroup Global Markets, Inc. and RBC Capital Markets are serving as financial advisors to Guidon, and Kirkland & Ellis LLP is serving as legal advisor to Guidon.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves in the Permian Basin in West Texas. For more information, please visit www.diamondbackenergy.com.

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