Diamondback Energy Inc (FANG)

[Wildbilly]

FULL YEAR 2014 GUIDANCE: 100% plus production increase

Looking ahead into 2014, with the combination of Diamondback's expanded drilling
program and continued execution, the Company forecasts production to average
between 15.0 and 16.0 MBoe/d, which represents an increase over 2013 average
production of more than 100%.

Diamondback's board has approved an expanded 2014 capital expenditures budget
for drilling and infrastructure in an estimated range of $425 million to $475
million. This represents roughly a 48% expansion from 2013 excluding
acquisitions and is a reflection of the Company's larger acreage position and
strong balance sheet as well as its commitment to growth. (This forecast
excludes any potential acquisitions.)

The development focus for 2014 is to de-risk and delineate the horizontal
potential in the Company's northern acreage (Andrews, Martin and Dawson
Counties) and continue aggressive development in Midland County, which includes
Diamondback's Spanish Trail leases in which Diamondback recently purchased
mineral interests, and Upton County. The majority of these horizontal wells will
target the Wolfcamp B formation, as well as test other potential horizons as
Diamondback and other operators have done in 2013. One vertical drilling rig is
expected to remain active throughout the year, firming up the Company's
position. Additionally, a single non-operated horizontal rig is expected to be
active throughout the year drilling on the Spanish Trail leases in Midland
County which would contribute to net production via Diamondback's new ownership
of the mineral interests.

The Company expects to exit 2013 with four horizontal rigs running, with one in
Upton County, two in Midland County and one in Martin County. Diamondback
expects to add a fifth horizontal rig in the second quarter of 2014, expanding
its existing drilling program at its Spanish Trail leases as well as other
acreage in Midland County.

Diamondback expects to drill 65 to 75 gross horizontal wells and 20 to 25 gross
vertical wells in 2014, with costs expected to range from $6.9 million to $7.4
million for a 7,500 foot lateral horizontal well and $2.0 million to $2.2
million for a vertical well. The average lateral length for all horizontal wells
is expected to average approximately 6,500 feet in 2014 due to lease geometry
and should range from short laterals of 5,000' to longer laterals in excess of
10,000'. It is anticipated that roughly half of the wells drilled in 2014 will
be from pad locations which are expected to support additional cost savings.

As shown in the table below, 2014 lease operating expenses are expected to be in
the range of $6.00 to $7.00 per Boe, down from a 2013 guided range of $9.50 to
$11.50 / Boe (after giving effect to the reclassification described in notes (a)
and (b) in the table below), while general and administrative expense ("G&A")
per Boe is expected to decline to between $2.00 and $3.00 per Boe, from a guided
range of $3.00 to $5.00 per Boe in 2013. In 2014, depreciation, depletion and
amortization expense ("DD&A") is expected to be between $23.00 and $25.00 per
Boe while production and ad valorem taxes as a percent of revenue are expected
to be 7.1%.





2013 2014 Guidance

Guidance Diamondback Minerals Diamondback

excluding Energy Inc

Minerals



Total Net Production - MBoe/d 7.2 - 7.5 12.5 - 13.0 2.5 - 3.0 15.0 - 16.0



Unit costs ($/boe)

Lease operating expenses (a) $9.50 - $11.50 $7.00 - $8.00 $0.00 $6.00 - $7.00

G&A $3.00 - $5.00 $2.50 - $3.50 $0.00 $2.00 - $3.00

DD&A $22.00 - $25.00 $22.00 - $24.00 $26.00 - $28.00 $23.00 - $25.00

Net Interest Expense n/a n/a $36.0 - $38.0



Production and Ad Valorem Taxes (% of Revenue) (b) 6.9% - 7.1% 7.0% 7.5% 7.1%



$ - million

Gross Horizontal Well Costs (c) $7.5 - $8.5 $6.9 - $7.4 n/a $6.9 - $7.4

Horizontal Wells Drilled (net) 65-75 (52 - 60) n/a 65-75 (52 - 60)

Gross Vertical Well Costs $2.0 - $2.2 $2.0 - $2.2 n/a $2.0 - $2.2

Gross Vertical Wells Drilled (net) 20-25 (16 - 20) n/a 20-25 (16 - 20)

Capital Expenditures $290 - $320 $425 - $475 n/a $425 - $475



a - Prior 2013 guidance included ad valorem taxes in lease operating expenses. The Company has reclassified these taxes and these taxes will now be reported in production and ad valorem taxes. Corporate overhead, previously reported as indirect LOE, is now included as part of lease operating expenses. 2013 guidance has been adjusted to reflect this reclassification.

b - Includes production taxes of 4.6% for oil and 7.5% for natural gas and NGLs and ad valorem taxes. Previous 2013 production tax guidance excluded estimated ad valorem taxes of $1.50/boe of lease operating expense.

c - Assumes a 7,500' average lateral length.



Approximately 1,500 Bbls/d of 2014 production is hedged with LLS at
approximately $100.72/Bbl and 333 Bbls/d of 2014 production is hedged with Brent
at $109.70/Bbl. The Company's liquidity position remains strong with
approximately $50 million of cash on hand at September 30, 2013 and an undrawn
revolver. The Company has been advised by its lenders that its borrowing base
will be increased to $225.0 million as a result of its recently completed fall
redetermination.

The table below presents estimated 2014 EBITDA based on various oil price
scenarios (oil price held flat for full year, gas at $4.00/Mcf and NGLs at 40%
of oil price):





2014 EBITDA Guidance ($ - million)

Oil Price ($/bbl) Diamondback Minerals Diamondback

excluding Energy Inc

Minerals



120 369 85 454

100 302 71 373

80 234 57 291



CONFERENCE CALL

Diamondback will host a conference call to discuss its 2014 guidance on October
24, 2013, at 10:00 a.m. ET (9:00 a.m. CT). Interested parties should call (877)
440-7573 (United States/Canada) or [phone] (International) and utilize
the confirmation code 91190512. A live broadcast of the earnings conference call
will also be available via the internet at www.diamondbackenergy.com under the
"Investor Relations" section of the site. A telephonic replay will be available
for anyone unable to participate in the live call. To access the replay, call
[phone] (United States/Canada) or [phone] (International) and
enter confirmation code 91190512. The recording will be available from 1:00 p.m.
ET on Thursday, October 24, 2013 through Wednesday, October 30, 2013 at 11:59
p.m. ET. The webcast will be archived on the Company's website for 30 days.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company focused on the
acquisition, development, exploration and exploitation of unconventional onshore
oil and natural gas reserves in the Permian Basin in West Texas. Diamondback's
activities are primarily focused on the Clearfork, Spraberry, Wolfcamp, Cline,
Strawn and Atoka formations, which we refer to collectively as the Wolfberry
play.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the
federal securities laws. All statements, other than historical facts, that
address activities that Diamondback assumes, plans, expects, believes, intends
or anticipates (and other similar expressions) will, should or may occur in the
future are forward-looking statements. The forward-looking statements are based
on management's current belief, based on currently available information, as to
the outcome and timing of future events. These forward-looking statements are
subject to a number of assumptions, risks and uncertainties, many of which are
beyond the control of the Company, which may cause actual results to differ
materially from those implied or expressed by the forward-looking statements.
These include the factors discussed or referenced in the Company's filings with
the Securities and Exchange Commission ("SEC"), including its Annual Report on
Form 10-K and Quarterly Reports on Form 10-Q, that could cause actual results to
differ materially from those projected. These filings are available for free at
the SEC's website (http://www.sec.gov). Any forward-looking statement made in
this new release speaks only as of the date on which such statement is made and
the Company undertakes no obligation to correct or update any forward-looking
statement, whether as a result of new information, future events or otherwise.



CONTACT: Investor Contact:

Adam Lawlis

+1 432.221.7467

[e-mail]

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KEYWORD: MIDLAND, Texas

INDUSTRY KEYWORD: Energy Industries

SUBJECT CODE: Calendar of Events

Earnings Releases and Operating Results

ENERGY

OIL

EARNINGS

CONFERENCE CALL

Source: Comtex Wall Street News