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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Intent to Convert Into Corporate Stucture
MIDLAND, Texas, July 31, 2023 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc.
About this update from Viper Energy, Inc.
[{"type":"text","content":"MIDLAND, Texas, July 31, 2023 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced its intent to convert its legal status from a Delaware limited partnership into a Delaware corporation. The conversion is expected to be completed by or before December 31, 2023. After the conversion, it is expected that Viper’s current limited partners would own the same percentage of the corporation’s outstanding shares as they currently own of Viper’s outstanding equity interests. In connection with the conversion, Viper intends to adopt a corporate governance structure designed to meet the eligibility requirements for certain indices and benchmarks, although no assurances can be provided regarding inclusion in any such index or benchmark. Because Viper is already treated as a corporation for U.S. federal income tax purposes, Viper expects that the conversion of its entity form into a Delaware corporation will not impact the current tax treatment for Viper’s current public common unitholders. Upon conversion, it is intended that Viper’s common stockholders will have the ability to vote on all matters on which stockholders of a corporation are generally entitled to vote under the Delaware General Corporation Law, including the election of Viper’s board of directors. Immediately following the proposed conversion, Viper would be a “controlled company” under the rules of NASDAQ because Diamondback would own more than 50% of the voting power of Viper’s common stock. In addition, Diamondback intends to continue to provide general and administrative services to Viper post-conversion in substantially the same manner as Diamondback currently provides. At or around the actual conversion, Viper intends to provide additional information regarding the post-conversion structural arrangements, including the terms of Viper’s post-conversion governing documents and the arrangements providing for Diamondback’s provision of services to Viper post-conversion. It is expected that post-conversion, Viper’s publicly traded common stock will be traded on NASDAQ under the existing ticker symbol “VNOM.” Travis Stice, Chief Executive Officer of Viper’s General Partner, stated, “Today’s announcement of Viper’s intent to convert into a Delaware corporati...