Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Public Offering of Common Units
July 25 2016 - 5:15PM
Viper Energy Partners LP (Nasdaq:VNOM) ("Viper"), a subsidiary of
Diamondback Energy, Inc. (Nasdaq:FANG) ("Diamondback"), announced
today that Viper has commenced an underwritten public offering of
7,000,000 common units representing limited partner interests,
subject to market and other conditions. Viper anticipates
granting the underwriter a 30-day option to purchase up to an
additional 1,050,000 common units from Viper. All of the common
units to be sold in this offering will be sold by Viper. The
underwriter proposes to offer the common units from time to time
for sale in one or more transactions on the NASDAQ Global Select
Market, in the over-the-counter market, through negotiated
transactions or otherwise at market prices prevailing at the time
of sale, at prices related to prevailing market prices or at
negotiated prices.
Viper intends to use the net proceeds from the offering,
including the proceeds from any exercise of the underwriter’s
option to purchase additional common units, to repay a portion of
the outstanding borrowings under its revolving credit facility and
to fund the purchase price of Viper’s recently announced pending
acquisition. If the pending acquisition is not consummated in its
entirety or at all, Viper intends to use any net proceeds that
otherwise would have been used to fund the purchase price of the
pending acquisition for general corporate purposes, which may
include future acquisitions.
Diamondback has indicated its interest in purchasing all common
units offered that are not purchased in the public offering, up to
a total of 5,000,000 common units. These common units would be
purchased directly from the underwriter at the price per common
unit paid by the underwriter to Viper.
Credit Suisse Securities (USA) LLC is acting as sole
book-running manager for the offering. When available, a copy of
the preliminary prospectus for the offering may be obtained from
Credit Suisse Securities (USA) LLC, Prospectus Department
(1-800-221-1037), at Eleven Madison Avenue, Level 1B, New York, NY
10010, or by email at newyork.prospectus@credit-suisse.com. You may
also obtain a copy of the preliminary prospectus for free by
visiting the Securities and Exchange Commission website at
http://www.sec.gov.
The common units will be issued and sold pursuant to an
effective shelf registration statement on Form S-3 previously filed
with the Securities and Exchange Commission.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the common units, nor shall there
be any sale of the common units in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction. This offering may only be made by means of a
prospectus supplement and related base prospectus.
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 the
Permian Basin.
Forward-Looking StatementsThis press 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. 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 and any
amendments thereto, 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.
Investor Contact:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
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