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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Provides Third Quarter 2020 Operational Update
MIDLAND, Texas, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ: VNOM) (“Viper” or the “Company”) today provided an operational update for
About this update from Viper Energy, Inc.
[{"type":"text","content":"MIDLAND, Texas, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ: VNOM) (“Viper” or the “Company”) today provided an operational update for the third quarter ended September 30, 2020.\n THIRD QUARTER 2020 UPDATE Q3 2020 average production of 15,829 bo/d (26,409 boe/d)Q3 2020 hedged realized prices of $27.65 per barrel of oil, $12.44 per barrel of natural gas liquids and $0.16 per Mcf of natural gas, resulting in a total equivalent price of $19.11 per boeQ3 2020 unhedged realized prices of $36.80 per barrel of oil, $12.44 per barrel of natural gas liquids and $1.07 per Mcf of natural gas, resulting in a total equivalent price of $25.76 per boe “Viper produced a strong third quarter, reflecting a 10% increase in oil production quarter over quarter as operators returned previously curtailed production and Diamondback resumed completion activity in areas where Viper has a significant mineral interest. Diamondback’s forward plan will continue to focus on areas where Viper has a high mineral interest, showcasing the differentiated relationship between the two companies as they navigate this severe industry downturn. With net debt decreasing from peak levels due to strong free cash flow generation, as well as an improved forward outlook for both production and realized pricing, Viper is on track to return a higher percentage of available cash flow to unitholders in the second half of 2020 as compared to the first half,” stated Travis Stice, Chief Executive Officer of Viper’s general partner. DERIVATIVES UPDATE Below is Viper’s hedge position as of October 12, 2020. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing. When aggregating multiple contracts, the weighted average contract price is disclosed. Crude Oil (Bbls/day, $/Bbl) Q4 2020 FY 2021Swaps - WTI (Cushing)1,000 —$27.45 $—Collars - WTI (Cushing)14,000 10,000Floor Price$28.86 $30.00Ceiling Price$32.33 $43.05Deferred Premium Call Options - WTI (Cushing)8,000 —Premium$(1.89) $—Strike Price ($/Bbl)$45.00 $—Basis Swaps - WTI (Midland-Cushing) 4,000 —$(2.60) $— Natural Gas (Mmbtu/day, $/Mmbtu) Q4 2020 FY 2021Natural Gas Basis Swaps - Waha Hub25,000 —$(2.07) $— About Viper Energy Partners LP Viper is a limited p...