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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Announces Its Second Quarter 2018 Cash Distribution, Provides an Update on Second Quarter Operations and Schedules Second Quarter 2018 Conference Call
SECOND QUARTER 2018 CASH DISTRIBUTION
The Board of Directors of Viper’s general partner has declared a cash distribution of
The second quarter 2018 cash distribution increased 25% to
Viper announced that production for the second quarter of 2018 was 16.3 Mboe/d (11.6 Mbo/d; 71% oil), an increase of approximately 16% from its Q1 2018 average daily production of 14.1 Mboe/d.
Viper's second quarter 2018 average realized prices were
ACQUISITION AND DROP DOWN UPDATE
During the second quarter of 2018, Viper acquired 924 net royalty acres for an aggregate purchase price of
SunTrust Robinson Humphrey (“STRH”) acted as exclusive financial advisor to Viper in connection with the drop down and delivered an opinion to the Board of Directors of the General Partner of Viper (the “Board”) that the purchase price to be paid by Viper’s operating company in the drop down is fair to the operating company from a financial perspective. STRH’s opinion is subject to the assumptions, qualifications and limitation contained in the opinion letter provided to the Board. The Board considered numerous factors in approving the drop down, including STRH’s fairness opinion.
The pending acquisitions are expected to close during the third quarter of 2018. However, these transactions remain subject to completion of due diligence and satisfaction of other closing conditions, and there can be no assurance that they will be completed as planned or at all. If completed as planned, these transactions will increase Viper’s pro forma footprint to a total of 13,705 net royalty acres. Viper financed the recent acquisitions with cash on hand and borrowings under its revolving credit facility. Viper intends to finance the pending acquisitions through a combination of cash on hand, borrowings under its revolving credit agreement and, subject to market conditions and other factors, proceeds from one or more capital markets transactions, which may include debt or equity offerings.
“During the second quarter, Viper achieved significant quarter over quarter production growth due to continually increasing activity levels across our asset base and also recognized our highest average realized price in 14 quarters. Our acquisitions continue to exceed expectations and drive consistent production growth, including the acreage we acquired in the Eagle Ford as well as other acreage operated by third parties. As a result, we set a 7th consecutive Company record distribution and have now increased our distribution for nine consecutive quarters,” stated
Mr. Stice continued, “Viper continues to be active in the acquisition market, as we closed 29 acquisitions for over
Viper also announced today that it plans to release second quarter 2018 financial results on
In connection with the earnings release, Viper will host a conference call and webcast for investors and analysts to discuss their results for the second quarter of 2018 on
Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in
Diamondback is an independent oil and natural gas company headquartered in
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 any pending, completed or future acquisitions discussed above. 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