Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Initial Fourth Quarter 2016 Operational Results...
January 18 2017 - 5:10PM
Viper Energy Partners LP (NASDAQ:VNOM) ("Viper" or the “Company”),
a subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG)
("Diamondback"), today announced initial operational results for
the quarter ended December 31, 2016 and provided an update on
recent acquisitions.
HIGHLIGHTS:
- Q4 2016 average daily production of 7,919 boe/d (74% oil), up
27% from Q3 2016 average daily production of 6,255 boe/d.
- Q4 2016 average realized prices were $46.14 per barrel of oil,
$2.50 per Mcf of natural gas and $16.15 per barrel of natural gas
liquids, resulting in a total equivalent price of $38.33 per boe,
up 10% from the Q3 2016 total equivalent price of $34.74 per
boe.
- Since its last equity offering on July 26, 2016, Viper has
entered into agreements for and acquired 948 net royalty acres in
the Permian Basin for an aggregate purchase price of $73
million.
- There are approximately 246 active well permits and seven rigs
currently active on Viper’s mineral acreage.
ACQUISITION UPDATE
Since the Company's last equity offering in July
2016, Viper has entered into agreements for and acquired 948 net
royalty acres for an aggregate purchase price of $73 million.
During the fourth quarter of 2016, Viper acquired mineral interests
underlying 34,210 gross (887 net royalty) acres in the Permian
Basin for approximately $68.1 million. To date in 2017, the Company
has acquired an additional 481 gross (11 net royalty) acres in the
Delaware Basin for approximately $0.9 million. Diamondback, RSP
Permian, Pioneer Natural Resources and Callon Petroleum serve as
primary operators on the assets. These transactions since the end
of the third quarter of 2016 increased Viper's footprint to a total
of 6,415 net royalty acres.
Viper financed the recent acquisitions with
borrowings under its revolving credit facility and intends to
finance potential future acquisitions, subject to market conditions
and other factors, through a combination of cash on hand,
borrowings under its revolving credit agreement and proceeds from
one or more capital markets transactions, which may include debt or
equity offerings.
PRODUCTION UPDATE
Production attributable to Viper’s mineral interests was 7,919
boe/d for the fourth quarter of 2016, up 27% from 6,255 boe/d, for
the third quarter of 2016. For the full year 2016, production
attributable to Viper’s mineral interests was 6,432 boe/d, up 18%
from 5,431 boe/d during 2015.
“Viper has seen significant growth, with volumes up 47% from Q2
through Q4 2016, after seeing volume declines in the first half of
2016 due to the low commodity price environment. We believe
this performance is a direct reflection of the quality of Viper’s
asset base, where operators responded quickly to a rising commodity
price environment. Viper has also been active in the improving
market for accretive acquisitions, closing 26 deals in the second
half of 2016 for an aggregate purchase price of $194.4 million.
These deals have increased our acreage position by over 1,900 net
royalty acres,” stated Travis Stice, Chief Executive Officer of
Viper’s general partner.
Mr. Stice continued, “We anticipate staying
active in the acquisition market by continuing to look at deals
that are accretive on net asset value, yield and acreage valuation
metrics. We have built out a team at the company that is actively
looking for mineral opportunities on a daily basis, with the
primary focus on Diamondback operated acreage because of its
immediate accretion to future Viper distributions.”
About Viper Energy Partners LP
Viper is a limited partnership formed by Diamondback to own,
acquire and exploit oil and natural gas properties in North
America, with a focus on oil-weighted basins, primarily the Permian
Basin in West Texas.
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. Diamondback's activities are primarily focused on the
horizontal exploitation of multiple intervals within the Wolfcamp,
Spraberry, Clearfork, Bone Spring and Cline formations.
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 Viper assumes, plans, expects, believes, intends or
anticipates (and other similar expressions) will, should or may
occur in the future are forward-looking statements, including
specifically the statements regarding any acquisitions announced
above. 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. These forward-looking
statements involve certain risks and uncertainties that could cause
the results to differ materially from those expected by the
management of Viper. Information concerning these risks and other
factors can be found in Viper's filings with the Securities and
Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which
can be obtained free of charge on the Securities and Exchange
Commission's web site at http://www.sec.gov. Viper undertakes no
obligation to update or revise any forward-looking statement.
The Company has filed a registration
statement (including a prospectus dated July 13, 2015 and a
preliminary prospectus supplement dated January 18, 2017) with the
SEC for the offering to which this communication relates. Before
you invest, you should read the prospectus in that registration
statement, the preliminary prospectus supplement and other
documents the Company has filed with the SEC for more complete
information about the Company and this offering. You may get these
documents for free by visiting EDGAR on the SEC Web site at
www.sec.gov. Alternatively, the Company, any underwriter or any
dealer participating in the offering will arrange to send you the
prospectus and related prospectus supplement if you request it by
calling Credit Suisse Securities (USA) LLC toll-free at
1-800-221-1037, Citigroup Global Markets Inc. toll-free at
1-800-831-9146 or UBS Securities LLC toll-free at
1-888-827-7275.
Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@viperenergy.com
Diamondback Energy (NASDAQ:FANG)
Historical Stock Chart
From Apr 2024 to May 2024
Diamondback Energy (NASDAQ:FANG)
Historical Stock Chart
From May 2023 to May 2024