Letter to Stockholders Issued by Diamondback Energy, Inc.

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• We continue to view the current macro backdrop as a 'yellow light' scenario, but the 'red light' scenario seems less apparent than it did over the last three quarters of 2025

  80% confidence

• We expect to continue to be aggressive buyers of our stock until commodity prices recover

  80% confidence

• Using today's spacing assumptions, securing rights to nearly 200,000 acres in Barnett and Woodford translates to the addition of approximately 900 gross and 600 net high-quality locations to our portfolio

  80% confidence

• As the US shale industry matures and the best resource is consumed, it is going to be imperative that Diamondback maintains its advantage on inventory quality and duration relative to peers, as we see this as a key driver of long-term value creation

  80% confidence

• We are currently drilling these delineation wells for ~$1,000 per lateral foot today, and we are confident that as we move to full-scale development we can cut well costs by at least 20% to improve returns

  80% confidence

• We will target an industry-leading oil price breakeven by continuing to increase efficiencies, lower costs and use Free Cash Flow to shrink our share count and net debt

  80% confidence

• We expect a meaningful Permian gas de-bottleneck to begin later this year as a wave of new pipeline capacity comes online

  80% confidence

• Just two years ago, we would have needed around 22 rigs to drill 463 wells, compared to an average of 15 drilling rigs used in 2025, demonstrating efficiency gains

  80% confidence

• We described 2024 as a transformational year as we roughly doubled the size of the organization by merging with Endeavor. In 2025, we converted that step-change in scale into executional excellence.

  80% confidence

• These efficiency gains should be seen as permanent, translating directly to higher stockholder value

  80% confidence

• The wave of oversupply that has been widely telegraphed for the better part of the last two years continues to get pushed to the right - at some point the market will slowly begin to find reasons to be less bearish as demand is strong and the global economy is growing

  80% confidence

• Despite crude prices down approximately 15% year over year, we were able to grow operating cash flow per share by 1%, grow Adjusted Free Cash Flow per share by 9% and repurchase nearly 5% of our shares outstanding

  80% confidence

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