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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Midland Basin Acquisition
MIDLAND, Texas, Aug. 09, 2021 (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, Aug. 09, 2021 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ:VNOM) (“Viper” or the “Company”), a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG) (“Diamondback”), today announced it has entered into a definitive purchase and sale agreement to acquire certain mineral and royalty interests from Swallowtail Royalties LLC and Swallowtail Royalties II LLC (collectively, “Swallowtail” or the “Seller”) in exchange for 15.25 million units of Viper common stock and $225 million of cash, subject to customary adjustments. The cash portion of this transaction is expected to be funded through a combination of cash on hand and borrowings under the Company’s credit facility. ACQUISITION OVERVIEW 2,302 net royalty acres primarily in the Northern Midland Basin; roughly 65% of acreage is operated by DiamondbackExpected to be accretive to near-term cash available for distribution per common unit and anticipated to grow significantly over time as a result of accelerated development by DiamondbackIncreases Viper’s Diamondback-operated acreage by over 10% to 14,191 net royalty acresViper will issue 15.25 million common units to the Seller at closing, subject to certain closing adjustmentsViper intends to finance the cash portion of the purchase price through a combination of cash on hand and existing borrowing capacity under its revolving credit facilityEffective date of August 1, 2021, with closing anticipated by early Q4 2021, subject to continued diligence and closing conditionsPro forma leverage expected to be around 2.0x by the end of 2021 at current strip prices and decreasing thereafter DIAMONDBACK OPERATED ACREAGE HIGHLIGHTS 1,450 net royalty acres located entirely in Martin County, with almost 75% of the acreage located in the Sale and Robertson ranches in Southeast Martin CountyAcreage has a ~3.6% average net revenue interest (“NRI”) that will provide concentrated exposure to contiguous acreage where Diamondback plans to run multiple rigs for the next several yearsDiamondback currently plans to complete over 70 gross wells on the acreage in 2022 with an additional 325-375 gross wells planned for the four years thereafter; represents over 17 net wells expected to be completed over the next five yearsAnticipated 2022 average net oil production of approximately 1,000 bo/dExpect production to exceed 5,000 bo/d by 2024 ...