Diamondback Energy, Inc. Announces Fourth Quarter & Full Year 2012 Financial/Operating Results & 2013 Guidance

Diamondback Energy, Inc. Announces Fourth Quarter & Full Year 2012
Financial/Operating Results & 2013 Guidance

MIDLAND, Texas, Feb. 25, 2013 (GLOBE NEWSWIRE) -- Diamondback Energy, Inc.
(Nasdaq:FANG) ("Diamondback" or the "Company") today announced financial and
operating results for the fourth quarter and year ended December 31, 2012.

HIGHLIGHTS

  *Q4 pro forma production of 4.6 MBoe/d, a 19% increase compared to pro
    forma Q3 2012.
  *As of February 24, 2013, the Neal 8-1H in Upton County, with a 7,652 ft.
    lateral, was flowing back the last 7 days at an average rate of 817 Boe/d
    (86% oil), with a peak IP of 871 Boe/d.
  *Vertical well costs decreased to $2.2 million in Q4 compared to $2.4
    million in Q3 2012.
  *On a pro forma basis, LOE fell to $15.68/Boe in Q4, compared to $18.04/Boe
    in Q3 2012.
  *337% of 2012 production was replaced by reserve additions excluding price
    related revisions. 65% of proved reserves are oil, supporting PV10 of $493
    million at SEC price of $88/Bbl.
  *Acquired more than 2,500 net acres in Midland County in Q1 2013 at
    attractive prices.
  *Pro formaQ4 2012 EBITDA was $15.4 million supporting pro forma 2012
    EBITDA of $62.9 million. Production guidance reaffirmed at 7,200-7,500
    Boepd and CapEx between $270-$300 million.
  *Recently hedged 1,000 bpd at $109.70/Bbl priced at Brent for the period
    May-13 to April-14.
  *Completed its IPO during the quarter at a price of $17.50, raising
    approximately $237.2 million. As of December 31, 2012, the Company had no
    outstanding debt.

"Through the diligent execution of our growth strategy, Diamondback produced a
solid quarter as we expanded our drilling activities in the Permian Basin,"
stated Travis Stice, Chief Executive Officer of Diamondback Energy, Inc. "As
we continue to focus on improving our operational efficiencies and increase
production, we have directed our resources to capitalize on the opportunities
afforded to us by horizontal drilling. This strategy has led us to increase
our horizontal well development program, where the initial results from our
first three horizontal wells have been encouraging. We look forward to
releasing the initial results of six additional horizontal Wolfcamp B wells
over the next 90 days."

HORIZONTAL DRILLING UPDATE – 9 WELLS UNDER DEVELOPMENT

As of February 25, 2013, Diamondback had nine horizontal wells in different
stages of development, with four in Midland County and five in Upton County.
Two wells are currently being drilled: Kendra 1H, a ~7,500 ft. lateral length
in Upton County and ST 25-2H, a ~4,500 ft. lateral length well in Midland
County. Three wells are drilled and waiting on completion; two in Upton County
and one in Midland County, and four wells are currently producing or flowing
back post completion.

VERTICAL DRILLING UPDATE – COSTS COMING DOWN / EFFICIENCIES UP

During the fourth quarter of 2012, the Company drilled 20 gross operated
vertical wells which on average reached a total depth (TD) in 11 days, while
running an average of 2.7 rigs. Several recent vertical wells reached a total
depth in less than 9 days. This improvement in performance lowers costs as
well as decreases Diamondback's overall drilling cycle time. In addition to
the two horizontal rigs mentioned previously, the Company is also currently
running two vertical rigs in Midland and Ector Counties and anticipates
drilling 14 gross vertical wells during the first quarter of 2013.

LAND ACQUISITION UPDATE

Diamondback acquired an additional 2,500+ net acres in Midland County during
the first quarter 2013, consistent with its strategy to acquire "bolt-on"
acreage around its existing core areas. The Company believes these additional
tracts are prospective for Wolfcamp Shale development and conducive to long
lateral development.

RESERVES

The Company's proved reserves as of December 31, 2012, as estimated by Ryder
Scott Company, L.P., were 40.2 MMBoe and consist of 26.2 million barrels of
oil, 8.3 million barrels of NGL and 34.6 Bcf of natural gas. Proved developed
reserves were 12.3 MMBoe, or 30.7% of total proved reserves. Extensions and
discoveries of 4.7 MMBoe were derived from Wolfberry vertical extension
drilling and from the successful drilling of two Wolfcamp B horizontal wells.
Reserve replacement in 2012 was 337% excluding the effects of revisions.
Downward revisions of 2.6 MMBoe were primarily commodity price related.

The following table identifies the changes to total proved reserves during
2012 on an MMBoe basis. The total proved reserves at December 31, 2011 and the
extensions and discoveries, revisions and production numbers give pro forma
effect to the oil and natural gas interests the Company acquired on October
11, 2012 in connection with its IPO.

                                          MMBoe
Total proved reserves at December 31, 2011 39.5
                                          
Extensions and discoveries                 4.7
Revisions                                  (2.6)
Production                                 (1.4)
Total proved reserves at December 31, 2012 40.2

The benchmark prices for 2012, using SEC guidelines, were $94.71 per barrel of
oil and $2.76 per MMBtu of natural gas.After deductions for transportation
and other differentials, the Company's average realized prices over the
remaining life of the proved reserves were $88.12 per barrel of oil, $43.88
per barrel of NGL and $2.86 per Mcf year-end 2012, as compared to $93.09 per
barrel of oil, $56.62 per barrel of NGL and $3.95 per Mcf of natural gas for
year-end 2011.The commodity prices reflected above for 2012 resulted in a
present value of pre-tax future net cash flows discounted at 10% (PV-10) of
$493 million for the Company's proved reserves.Using year end 2011 commodity
prices, the PV-10 would have been $598 million for the 2012 year-end proved
reserves.PV-10 is a non-GAAP measure.See "Supplemental Non-GAAP Measures"
below for the Company's definition and reconciliation of PV-10 to the
Standardized Measure (GAAP).

PRODUCTION                                                   
                                                Historical   
                                                            
                                   3^rd Quarter 4^th Quarter Year End 2012
Production Volumes                                           
Oil (MBbls)                         166.2         272.1        756.3
Gas (MMcf)                          204.2         339.1        833.5
Liquids (MBbls)                     44.9          73.1         183.1
Oil Equivalents (MBoe)              245.1         401.7        1,078.3
                                                            
Avg. Daily Production (MBoe/d)      2.7           4.4          2.9
                                                            
Average Realized Price                                       
Oil (per Bbl)                       $87.40        $81.44       $86.88
Oil with Effect of Hedges (per Bbl) $82.01        $77.50       $79.68
Natural Gas (per Mcf)               $2.83         $3.37        $2.85
Natural Gas Liquids (per Bbl)       $38.04        $33.69       $37.57
Oil Equivalents (MBoe)              $68.59        $64.14       $69.52
                                                            
                                                Pro Forma^1  
                                                            
                                   3^rd Quarter 4^th Quarter Year End 2012
Production Volumes                                           
Oil (MBbls)                         235.4         287.5        972.8
Gas (MMcf)                          312.9         356.7        1,126.8
Liquids (MBbls)                     68.4          75.9         243.0
Oil Equivalents (MBoe)              356.0         422.8        1,403.6
                                                            
Avg. Daily Production (MBoe/d)      3.9           4.6          3.8
                                                            
Average Realized Price                                       
Oil (per Bbl)                       $86.67        $81.60       $87.54
Oil with Effect of Hedges (per Bbl) $82.67        $77.87       $81.95
Natural Gas (per Mcf)               $2.75         $3.17        $2.74
Natural Gas Liquids (per Bbl)       $37.63        $32.38       $37.92
Oil Equivalents (MBoe)              $66.97        $63.96       $69.43

On a pro forma basis, average daily production increased 19% to 4.6 MBoe/d in
Q4, compared to the 3.9 MBoe/d in theQ3 2012.

¹ The pro forma production information of Diamondback Energy, Inc. and
subsidiaries, includes the interests of Gulfport as of January 1, 2012.

FINANCIAL HIGHLIGHTS

On October 17, 2012, the Company completed its IPO of 14,375,000 shares of
common stock, which included 1,875,000 shares of common stock issued pursuant
to the over-allotment option exercised by the underwriters. The stock was
priced at $17.50 per share and the Company received net proceeds of
approximately $237.2 million from the sale of these shares of common stock,
after deducting the underwriting discount.

On a pro forma basis Q4 2012 and full year 2012 income before income taxes was
$3.5 million and $25.1 million, respectively.The Company recognized deferred
tax liabilities and assets for temporary differences between the historical
cost basis and tax basis of its assets and liabilities resulting from a change
to a C-Corp from a limited liability company.Those temporary differences
resulted in a net deferred tax liability of approximately $54 million, which
was recognized in Q4 2012 with a corresponding non-cash charge to earnings.
The Company's pro forma net loss after the non-cash income tax charge to
earnings for Q4 2012 and full year 2012 was a ($51.4) million loss and a
($29.8) million loss, respectively.

On a pro forma basis, full year 2012 EBITDA was $62.9 million. On a pro forma
basis, Q4 2012 EBITDA was $15.4 million.

On a pro forma basis, Q4 2012 revenues were $27.0 million, a 13.4% increase
compared to pro forma Q3 2012. The increase was due to increased production
volumes during the quarter.

As of December 31, 2012, the Company had no outstanding long-term debt and
$135 million of undrawn borrowing capacity. As of February 25, 2013, the
Company had drawn $30 million under its revolving credit facility.

During Q4 2012, Diamondback's pro forma capital expenditures were
approximately $32.0 million, primarily for drilling and completion of wells
and infrastructure costs. The Company had a total of 51,603 net acres at
quarter end.

The Company recently placed a new hedge at 1,000 barrels per day at $109.70
per barrel priced at Brent for the period May 2013-April 2014.

FULL YEAR 2013 GUIDANCE                              
                                                    
                                                    2013 Guidance
Production                                           7,200 - 7,500 Boe/d
Capital Expenditures                                 $270 -- $300 million
Horizontal Per Well Costs                            $7.5 -- $8.5 million
Vertical Per Well Costs                              $2.0 -- $2.2 million
                                                    Operating Costs
Direct Lease Operating Expense                       $8.50 -- $10.00/ Boe
Indirect Operating Expense (Ad valorem and overhead) $2.50 -- $3.00 / Boe
Production Tax                                       4.6% oil,
                                                     7.5% gas & NGLS
G&A                                                  $3.00 -- $5.00 / Boe
DD&A                                                 $22.00 -- $25.00 / Boe

CONFERENCE CALL

Diamondback will host a conference call with investors and analysts to discuss
its fourth quarter and year end 2012 results on February 26, 2013, at
10:00a.m. ET.Interested parties should call (877)440-7573 (United
States/Canada) or (253)237-1144 (International) and utilize the confirmation
code 12520719. 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
(855)859-2056 (United States/Canada) or (404)537-3406 (International) and
enter confirmation code 12520719. The recording will be available from 1:00
p.m. ET on Tuesday, February 26, 2013 through Tuesday, March 5, 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 Forms 10-Q and 8-K and its Registration
Statement on Form S-1, as amended, and related prospectus dated October 11,
2012, 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.

SELECTED HISTORICAL INFORMATION AND PRO FORMA ADJUSTMENT

Diamondback was incorporated in Delaware on December 30, 2011, and did not
conduct any material business operations until October 11, 2012 when
Diamondback merged with its parent entity, Diamondback Energy LLC, and
Diamondback continued as the surviving entity (the "Merger"). Prior to the
Merger, Diamondback Energy LLC was a holding company and did not conduct any
material business operations other than its ownership of the Company's common
stock and the membership interests in Windsor Permian LLC ("Windsor Permian").
As a result of the Merger, Windsor Permian became a wholly-owned subsidiary of
Diamondback. Also on October 11, 2012, Wexford Capital L.P. ("Wexford"),
equity sponsor, caused all of the outstanding equity interests in Windsor UT
LLC ("Windsor UT") to be contributed to Windsor Permian prior to the Merger in
a transaction referred to as the "Windsor UT Contribution". The Windsor UT
Contribution was treated as a combination of entities under common control
with assets and liabilities transferred at their carrying amounts in a manner
similar to a pooling of interests. Transfers of a business between entities
under common control are accounted for as if the transfer occurred at the
beginning of the period, and prior years are retrospectively adjusted to
furnish comparative information. The Windsor UT Contribution was accounted for
as a transaction between entities under common control. Accordingly, the
financial information of the Company has been retrospectively adjusted to
include the historical results of Windsor UT at historical carrying values and
their operations as if they were consolidated for all periods presented.

The operations of Windsor Permian and Windsor UT, as limited liability
companies, prior to October 11, 2012, were not subject to federal income
taxes. On the date of the Merger, a corresponding "first day" tax expense to
net income from continuing operations was recorded to establish a net deferred
tax liability for differences between the tax and book basis of Diamondback's
assets and liabilities. This charge was $54,142,000.

Immediately after the Merger on October 11, 2012, Diamondback acquired from
Gulfport Energy Corporation ("Gulfport") all of its oil and natural gas
interests in the Permian Basin (the "Gulfport properties") in exchange for
shares of Diamondback common stock and a promissory note in a transaction
referred to as the Gulfport transaction. The Gulfport transaction was treated
as a business combination accounted for under the acquisition method of
accounting with the identifiable assets recognized at fair value on the date
of transfer.

On October 17, 2012, the Company completed its IPO of 14,375,000 shares of
common stock, which included 1,875,000 shares of common stock issued pursuant
to the over-allotment option exercised by the underwriters. The stock was
priced at $17.50 per share and the Company received net proceeds of
approximately $237.2 million from the sale of these shares of common stock,
after deducting the underwriting discount.

The following tables provide the following financial information for the
fourth quarter and full year 2012:

  *selected combined consolidated historical financial information of Windsor
    Permian and Windsor UT;
    
  *selected historical revenues and direct operating expenses of certain
    property interests of Gulfport; and
    
  *certain pro forma financial information of the Company after giving effect
    to the Windsor UT contribution, the Gulfport transaction and the merger,
    which pro forma information was prepared as if such events had occurred on
    January 1, 2011.

                                                                             

                           Selected Historical Information and Pro Forma
                            Adjustment
                           (in thousands)
                           Three months ended December 31, 2012
                                                               
                            (Historical)
                            Diamondback   (Unaudited) (Unaudited)  (Unaudited)
                           Energy, Inc.  Gulfport    Pro forma    Pro Forma¹
                            and                       adjustments
                            Subsidiaries
Revenues:                                                       
Oil and natural gas         $ 25,767     $ 1,277    $--         $ 27,044
revenues
Operating Expenses:                                             
Lease operating expense     $ 6,498      $ 133                  $ 6,631
Production taxes            1,287         94                      1,381
Gathering and               160                                 160
transportation expense
Depreciation, depletion and 9,721                    343          10,064
amortization
General and administrative  5,889                               5,889
Asset retirement obligation 35                                  35
accretion expense
Total expenses              23,590        227         343          24,160
Income (loss) from          2,177         1,050       (343)        2,884
operations
Other income                478                                  478
Net interest income         (426)                                (426)
(expense)
Gain on                     600                                  600
derivativeinstruments
Total other income          652           --          --           652
(expense)
Net income (loss) before    2,829         1,050       (343)        3,536
income tax
Income tax provision        54,903        --          --           54,903
Net income (loss)           $ (52,074)   $ 1,050    $ (343)     $ (51,367)
                                                               
Average Daily Production    4.4           0.2                    4.6
(MBoe)

                                                                             


                                                        
                  Selected Historical Information and Pro Forma           
                   Adjustment
                  (in thousands)                                          
                  Year Ended December 31, 2012                            
                                                                         
                   (Historical)
                   Diamondback    (Unaudited)  (Unaudited)  (Unaudited)
                  Energy Inc.    Gulfport     Pro forma    Pro Forma¹
                   and                         adjustments
                   Subsidiaries
Revenues:                                                
Oil and natural    $ 74,962      $ 22,493    $--         $ 97,455
gas revenues
Operating                                                
Expenses:
Lease operating    16,793         6,568                    23,361
expense
Production taxes   3,691          1,113                    4,804
Gathering and
transportation     424           99                      523
expense
Depreciation,
depletion and      26,273                     7,932        34,205
amortization
General and        10,376                                 10,376
administrative
Asset retirement
obligation         98                         24           122
accretion expense
Total expenses     57,655         7,780        7,956        73,391
Income (loss) from 17,307         14,713       (7,956)      24,064
operations
Other income       2,132          --                       2,132
Net interest       (3,607)        --                       (3,607)
expense
Loss on derivative 2,617          --                       2,617
instruments
Loss from equity   (67)           --                       (67)
investment
Total other income 1,075          --                       1,075
Net income (loss)  18,382         14,713       (7,956)      25,139
before income tax
Income tax         54,903         --           --           54,903
provision
Net income (loss)  $ (36,521)    $14,713     $ (7,956)   $ (29,764)
                                                        
Average Daily      2.9            0.9                     3.8
Production (MBoe)
                                                        
¹ The selected historical financial information of Diamondback Energy,
Inc. and subsidiaries, historical revenues and direct operating expenses
of certain property interests of Gulfport and certain pro forma
adjustments are presented in a table below. The pro forma data are not
necessarily indicative of financial results that would have been
obtained had the described transactions occurred on the date indicated
above. On January 22, 2013, Windsor UT LLC was merged into Windsor
Permian LLC, the name of which was changed to Diamondback O&G LLC.

Non-GAAP Financial Measures

EBITDA is a supplemental non-GAAP financial measure that is used by management
and external users of our financial statements, such as industry analysts,
investors, lenders and rating agencies. The Company defines EBITDA as net
income (loss) before income tax expense, gain (loss) on derivative contracts,
interest expense, depreciation, depletion and amortization, equity based
compensation and asset retirement obligation accretion expense. EBITDA is not
a measure of net income (loss) as determined by United States' generally
accepted accounting principles, or GAAP. Management believes EBITDA is useful
because it allows it to more effectively evaluate the Company's operating
performance and compare the results of its operations from period to period
without regard to its financing methods or capital structure. The Company
excludes the items listed above from net income (loss) in arriving at EBITDA
because these amounts can vary substantially from company to company within
its industry depending upon accounting methods and book values of assets,
capital structures and the method by which the assets were acquired. EBITDA
should not be considered as an alternative to, or more meaningful than, net
income (loss) as determined in accordance with GAAP or as an indicator of the
Company's operating performance or liquidity. Certain items excluded from
EBITDA are significant components in understanding and assessing a company's
financial performance, such as a company's cost of capital and tax structure,
as well as the historic costs of depreciable assets, none of which are
components of EBITDA. The Company's computations of EBITDA may not be
comparable to other similarly titled measure of other companies or to such
measure in our credit facility.

The following tables present a reconciliation of the non-GAAP financial
measure of EBITDA to the GAAP financial measure of net income (loss) on an
actual and pro forma basis.

                                      

Reconciliation of EBITDA to Net income
(in thousands)


                            Three months ended December 31, 2012
                             (Historical)
                            Diamondback Energy Gulfport Pro forma   Pro forma
                             Inc. and                    adjustments
                             Subsidiaries
                                                                 
Net income (loss)            $(52,074)          $1,050   $(343)      ($51,367)
Gain on derivatives          (600)              --       --          (600)
Interest expense             426                --       --          426
Depreciation, depletion and  9,721              --       343         10,064
amortization
Non-cash equity-based        1,952              --       --          1,952
compensation expense
Asset retirement obligation  35                 --       --          35
accretion expense
Deferred income tax          54,903             --       --          54,903
provision
EBITDA                       $14,363            $1,050   $--         $15,413
                                                                 
                            For the year ended December 31, 2012
                             (Historical)
                            Diamondback Energy Gulfport Pro forma   Pro forma
                             Inc. and                    adjustments
                             Subsidiaries
                                                                 
Net income (loss)            $(36,521)          $14,713  $(7,956)    ($29,764)
Gain on derivatives          (2,617)            --       --          (2,617)
Interest expense             3,610              --       --          3,610
Depreciation, depletion and  26,273             --       7,932       34,205
amortization
Non-cash equity-based        2,477              --       --          2,477
compensation expense
Asset retirement obligation  98                 --       24          122
accretion expense
Deferred income tax          54,903             --       --          54,903
provision
EBITDA                       $48,223            $14,713  $--         $62,936

PV-10

PV-10 is the Company's estimate of the present value of the future net
revenues from proved oil and gas reserves after deducting estimated production
and ad valorem taxes, future capital costs and operating expenses, but before
deducting any estimates of future income taxes.The estimated future net
revenues are discounted at an annual rate of 10% to determine their "present
value."The Company believes PV-10 to be an important measure for evaluating
the relative significance of its oil and gas properties and that the
presentation of the non-GAAP financial measure of PV-10 provides useful
information to investors because it is widely used by professional analysts
and investors in evaluating oil and gas companies.Because there are many
unique factors that can impact an individual company when estimating the
amount of future income taxes to be paid, the Company believes the use of a
pre-tax measure is valuable for evaluating the Company.The Company believes
that PV-10 is a financial measure routinely used and calculated similarly by
other companies in the oil and gas industry.

The following table reconciles PV-10 to the Company's standardized measure of
discounted future net cash flows, the most directly comparable measure
calculated and presented in accordance with GAAP.PV-10 should not be
considered as an alternative to the standardized measure as computed under
GAAP.

                                                        
(in thousands)                                           December 31, 2012
PV-10                                                    $492,762
Less income taxes:                                       
Undiscounted future income taxes                         ($334,903)
10% discount factor                                      $209,361
Future discounted income taxes                           ($125,542)
                                                        
Standardized measure of discounted future net cash flows $367,220

CONTACT: Investor Contacts:
         KCSA Strategic Communications
         Jeffrey Goldberger / Philip Carlson
         +1 212.896.1249 / +1 212.896.1233
         jgoldberger@kcsa.com / pcarlson@kcsa.com