Diamondback Energy, Inc. (FANG)

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Diamondback Energy Inc. (FANG)

Q42012 Earnings Call

February 26, 2013 10:00 am ET


Jeffrey Goldberger - Investor Relations - KCSA Strategic Communications

Travis Stice - President and Chief Executive Officer

Teresa Dick - Chief Financial Officer, Senior Vice President


Mark Lear - Credit Suisse

Gordon Douthat - wells Fargo

Kerr Friedman - Simmons & Company

Tim Rezvan - Sterne Agee

Ryan Oatman - SunTrust Robinson Humphrey

Eli Kantor - IBERIA Capital Partners

Jason Wangler - Wunderlich Securities

Jeffrey Connolly - Brean Capital



Good day, ladies and gentlemen, and welcome to the Diamondback Energy's fourth quarter earnings conference call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions). As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Mr. Jeffrey Goldberger. You may begin.

Jeffrey Goldberger - Investor Relations - KCSA Strategic Communications

Thank you, Mimi and good morning and welcome everyone to Diamondback Energy's fourth quarter earnings conference call. My name is Jeffrey Goldberger and I am with KCSA Strategic Communications, Investor Relations counsel to Diamondback.

Representing the company with me today are Travis Stice, Chief Executive Officer, Teresa Dick, Chief Financial Officer, Russell Pantermuehl, Vice President of Reservoir Engineering. We hope you have had an opportunity to review the release we issued at the close of business yesterday. Let me quickly outlay the agenda for today's call.

Travis will begin with a brief introduction to Diamondback and a quick overview of our operating results. Teresa will then bring you to the financial details including the income statement and balance sheet along with key operational metrics for the three and twelve months ended 12/13/12. Finally Teresa will provide full-year 2013 guidance and then open up the call for questions.

As a reminder, some of the matters we will discuss on today's call are forward -looking statements within the meaning of the Federal Securities Laws. All statements, other than historical facts, that address activities that Diamondback Energy assumes, plans, expects, believes, intends or anticipates and other similar expressions will, should or may occur in the in forward-looking statements 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 involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Diamondback. Diamondback Energy undertakes no obligation to update or revise any forward-looking statement.

During our call today, we will reference certain non-GAAP financial measure which we believe provide useful information for investors. We include reconciliation of those measures where appropriate to GAAP. Diamondback energy assumes no obligation to update the information presented on this conference call. This call is the property of Diamondback Energy Inc. Any distribution, transmission, broadcast or re-broadcast of this call in any form without the express written consent of the company is prohibited. A replay of the call will be available from today at 1:00 PM Eastern Tim through Tuesday March 5, 2013 at 11:59 PM Eastern Time. To access the replay, call 855-859-2056 in the U.S. and Canada or 404-537-3406 for international callers and enter the confirmation code, 12520719. The webcast will also be on the company's website for 30 day.

Now, its my pleasure to turn the call over to Travis Stice.

Travis Stice

Thank you, Jeffrey. Welcome everyone and thank you all for listening to Diamondback Energy's fourth quarter and year-end 2012 conference call. The last 18 months has been a whirlwind of activity for Diamondback Energy culminating with the successful completion of our IPO on October 17, 2012. Since this our first earnings conference call, I want to take the opportunity to provide a detailed overview of Diamondback Energy but before doing so I would like to just take a moment to describe our leadership team and some of our guiding principles.

When I joined Diamondback in April 2011, I had the opportunity to assemble an operating team with an established track record of delivering superior results. Each of the members of our senior leadership team is at the top of his or her game and brings to Diamondback almost 30 years of operating experience per person. Although the team is relatively new to Diamondback, with the exception of the CFO, Teresa Dick, who has been with Diamondback since its inception, most of us have worked together at the likes of Burlington Resources, ConocoPhillips, Laredo Petroleum which, I believe, will prove to be an important ingredient to operating success.

With our senior leadership team in place, we worked to articulate the guiding principles we have established as creating successful strategies from our collective prior experiences. Not only to ensure the long-term success of Diamondback, but also the whole leadership accountable to our employees and our investors. These guiding principles are grounded in the following concepts, superior execution, transparency and communications, and delivering (inaudible) margins

So turning to our underlying story, Diamondback Energy is an independent EMP that’s headquartered E&P that is headquartered in Midland, Texas, and focused on the Permian basin primarily within the Wolfberry Trend. With holdings of just under 52,000 net acres at the end of 2012, Diamondback is one of the limited number of publicly traded pure operators in the Permian basin, which allows investors to participate directly in the tremendous resurgence of drilling activity and corresponding volume growth that have taken place in the Permian Basin since 2009.

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