RATTLER MIDSTREAM LP, A SUBSIDIARY OF DIAMONDBACK ENERGY, INC., PROVIDES UPDATE

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MIDLAND, Texas, March 19, 2020 — Rattler Midstream LP (NASDAQ: RTLR) (“Rattler” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today provided the following update. Given recent commodity price volatility, Rattler’s 2020 Guidance given on February 18, 2020 is being withdrawn, and the items specified below are updated as follows:

Guidance Update

  
 Rattler 2020 Guidance
($ millions) 
  
Adjusted EBITDA(a)$260 – $300
Equity Method Investment EBITDA(b)$30 – $50
Operated Midstream Capex$100 – $150

(a)  Includes Equity Method Investment EBITDA (b)  Includes EPIC, Gray Oak, Wink to Webster, OMOG and Amarillo Rattler joint ventures

“Rattler has dramatically reduced its 2020 capital budget by over 40% due to the lower expected activity levels at Diamondback for the year.  EBITDA guidance has been reduced by ~25% at the midpoint, which assumes a 15% – 25% reduction in equity method EBITDA contributions for the year as well as less volumes for the base business due to lower activity levels.  At this time, Rattler expects to maintain its distribution, and has sufficient liquidity to fund its capital commitments and distribution for the foreseeable future.  Should Diamondback cut activity further, Rattler’s capital expenditures will be reduced accordingly,” stated Travis Stice, Chief Executive Officer of Rattler’s General Partner.

About Rattler Midstream LP

Rattler Midstream LP is a growth-oriented Delaware limited partnership formed in July 2018 by Diamondback Energy to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin.  Rattler provides crude oil, natural gas and water-related midstream services to Diamondback under long-term, fixed-fee contracts.  For more information, please visit www.rattlermidstream.com.

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.

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 Rattler 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 beliefs, based on currently available information, as to the outcome and timing of future events, including but not limited to political and economic conditions in the oil and gas industry, domestic and foreign supply of oil and natural gas, the level of consumer demand, the impact of the coronavirus outbreak on global economic conditions and oil demand, future distributions on Rattler’s units and capital expenditures.  These forward-looking statements involve certain risks and uncertainties that could cause the results to differ materially from those expected by the management of Rattler.  Information concerning these risks and other factors can be found in Rattler’s filings with the Securities and Exchange Commission (“SEC”), including its Final Prospectus, dated May 22, 2019 and filed May 24, 2019, Forms 10-Q and 8-K and Annual Report on Form 10-K for the year ended December 31, 2019, which can be obtained free of charge on the SEC’s web site at http://www.sec.gov.  Rattler undertakes no obligation to update or revise any forward-looking statement.

Non-GAAP Financial Measures

Adjusted 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.  We believe Adjusted EBITDA is useful because it allows us to more effectively evaluate our operating performance and compare the results of our operations period to period without regard to our financing methods or capital structure.

Rattler defines Adjusted EBITDA as net income before income taxes, interest expense, net of amount capitalized, interest expense related to equity method investments, non-cash unit-based compensation expense, depreciation, amortization and accretion and other non-cash transactions.  Depreciation, amortization and accretion includes depreciation, amortization and accretion on assets and liabilities of Rattler Midstream Operating LLC, in addition to depreciation, amortization and accretion on our equity method investments.  Interest expense related to equity method investments represents our proportional income (loss) from equity method investments plus interest on the amount.  Adjusted EBITDA should not be considered an alternative to net income or any other measure of financial performance or liquidity presented in accordance with GAAP.  Adjusted EBITDA excludes some, but not all, items that affect net income, and these measures may vary from those of other companies.  As a result, Adjusted EBITDA as presented below may not be comparable to similarly titled measures of other companies.

Investor Contact: Adam Lawlis +1 432.221.7467 [email protected]

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