Viper Energy, Inc., a Subsidiary of Diamondback Energy, Inc., Announces Acquisition
11 Septiembre 2024 - 3:05PM
Viper Energy, Inc. (NASDAQ:VNOM) (“Viper” or the “Company”), a
subsidiary of Diamondback Energy, Inc. (NASDAQ:FANG)
(“Diamondback”), today announced it and its operating subsidiary
Viper Energy Partners LLC (“OpCo”) have entered into a definitive
purchase and sale agreement to acquire certain mineral and royalty
interest- owning subsidiaries of Tumbleweed Royalty IV, LLC in
exchange for $461.0 million of cash and approximately 10.1 million
OpCo units, subject to customary adjustments. The cash portion of
this transaction is expected to be funded through a combination of
cash on hand, borrowings under the Company’s credit facility, and
proceeds from one or more capital markets transactions, subject to
market conditions and other factors. The issuance of OpCo units
will be accompanied by the grant of an option to purchase an equal
number of shares of Class B common stock of the Company. The
purchase agreement also includes a potential additional payment in
Q1 2026 of contingent cash consideration of up to $41.0 million,
based on the average 2025 West Texas Intermediate (“WTI”) price.
This transaction is expected to close in early Q4 2024, subject to
customary closing conditions.
The Company also announced today that it
previously closed two related acquisitions. On September 3, 2024,
OpCo completed the acquisition of certain mineral and royalty
interest-owning entities from Tumbleweed-Q Royalty Partners, LLC
and MC Tumbleweed Royalty, LLC for a combined $189.0 million of
cash consideration, plus potential additional payments in Q1 2026
of contingent cash consideration of up to an aggregate of $9.0
million, based on the average 2025 WTI price. These transactions
were funded with a combination of cash on hand and borrowings under
the Company’s credit facility.
COMBINED ACQUISITION
HIGHLIGHTS
- Approximately 3,727 net royalty
acres ("NRAs") in the Permian Basin
- Highly undeveloped asset with a
focus in the core of the Midland Basin
- High confidence visibility to
near-term production growth results in meaningful accretion to all
relevant financial metrics; accretion expected to grow in
subsequent years due to the highly undeveloped nature of the
asset
- Current production of approximately
2,500 Bo/d (4,000 Boe/d); expected to increase to approximately
4,500 Bo/d for full year 2025 based on only current producing wells
("PDP"), drilled but uncompleted wells ("DUCs"), permits, and
Diamondback's expected development plan
- Viper currently expects Diamondback
to complete roughly 120-140 gross locations beyond existing DUCs
and permits on the acquired properties through year-end 2026 with
an estimated average ~3.0% net revenue interest ("NRI") (3.5 - 4.0
net 100% royalty interest wells); expected to drive an increase in
Diamondback-operated production from an average of approximately
1,000 Bo/d in 2025 to approximately 3,000 Bo/d in 2026
- Increases expected pro forma 2025
per share return of capital to Class A shareholders by an estimated
4-5%, assuming the Company funds a portion of the remaining cash
consideration of the transaction through the successful issuance of
approximately 8.0 million Class A shares of Viper's common
stock
ASSET DETAILS
- Approximately 3,237 NRAs in the Midland Basin and 490 NRAs in
the Delaware Basin with an average 1.0% NRI
- Combined 16 gross (0.3 net) rigs
currently operating on acreage position, led by ExxonMobil (8) and
Diamondback (3)
- Midland Basin:
- Approximately 75% of acreage
operated by Diamondback (~950 NRAs) and ExxonMobil (~1,410
NRAs)
- >70% of acreage in Midland and
Martin counties
- Largely undeveloped acreage that
provides an average ~1.4% NRI across an estimated 96 completely
undeveloped horizontal units normalized to 1,280 gross acres;
represents ~1,640 NRAs and an expected ~23.7 net locations
- 5.7 net DUCs and permits; expected
to be turned to production over the next 12-15 months
- Delaware Basin:
- Approximately 80% of acreage in Lea
and Eddy counties
- Largest exposure to ConocoPhillips
and Mewbourne as primary operators; other notable operators include
Devon, Coterra, Chevron, and EOG
- 0.8 net DUCs and permits; expected
to be turned to production over the next 12-15 months
PRO FORMA VIPER HIGHLIGHTS
- Preliminary average daily
production guidance for Q4 2024 of 29,000 to 30,000 bo/d (51,500 to
53,000 boe/d)
- Preliminary full year 2025 average
daily production guidance of 30,000 to 33,000 bo/d (53,000 to
58,000 boe/d), the midpoint of which is approximately 18% higher
than standalone Viper’s expected Q3 2024 average daily oil
production
- Approximately 35,500 NRAs in the
Permian Basin
- 61 active rigs currently operating
on combined acreage position in the Permian Basin, with an average
1.8% NRI expected in those wells
“The set of acquisitions announced today is a
continuation of Viper’s strategy to consolidate high quality
mineral and royalty assets that not only provide meaningful and
immediate financial accretion, but also provide significant
undeveloped inventory that supports our long-term production
profile. With roughly 50% of the total Midland Basin acreage
representing concentrated interests in potential long-lateral units
that currently have zero existing producing wells or permits, we
expect these assets to deliver significant production growth over
the coming years,” stated Travis Stice, Chief Executive Officer of
Viper.
Mr. Stice continued, “Viper was able to uniquely
execute on this differentiated acquisition opportunity given its
overall size and scale, but also due to the visibility we have into
Diamondback’s expected multi-year development plan. With this
visibility, we expect Diamondback-operated production to increase
from an average of roughly 1,000 Bo/d in 2025 to approximately
3,000 Bo/d in 2026. This production growth, along with the
remaining core inventory primarily operated by ExxonMobil, provide
a high level of confidence to the implied valuation metrics and
expected accretion beyond just the next twelve months of visibility
typically associated with non-operated mineral and royalty
interests.”
Grant Wright, President of Tumbleweed Royalty,
stated, “The Tumbleweed team has built an impressive mineral and
royalty position over the last four years with the support of our
dedicated team and long-term partners. The assets are a natural fit
for Viper, and we look forward to closing the transaction.”
Advisors
Intrepid Partners, LLC is serving as financial advisor to Viper.
Akin Gump Strauss Hauer & Feld LLP and Wachtell, Lipton, Rosen
& Katz are serving as its legal advisors.
Vinson & Elkins LLP and Kirkland & Ellis
LLP are serving as the sellers’ legal advisors.
About Viper Energy, Inc.
Viper is a corporation formed by Diamondback to
own, acquire and exploit oil and natural gas properties in North
America, with a focus on owning and acquiring mineral and royalty
interests in oil-weighted basins, primarily the Permian Basin. For
more information, please visit www.viperenergy.com.
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 primarily in
the Permian Basin in West Texas. For more information, please visit
www.diamondbackenergy.com.
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. 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, including specifically the
statements regarding the pending acquisition and any potential
capital markets transactions and other funding sources for the
pending acquisition. 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.
Investor Contacts:Adam Lawlis+1
432.221.7467alawlis@diamondbackenergy.com
Austen Gilfillian+1
432.221.7420agilfillian@diamondbackenergy.com
Source: Viper Energy, Inc.; Diamondback Energy, Inc.
Diamondback Energy (NASDAQ:FANG)
Gráfica de Acción Histórica
De Nov 2024 a Dic 2024
Diamondback Energy (NASDAQ:FANG)
Gráfica de Acción Histórica
De Dic 2023 a Dic 2024