PRESS RELEASES
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Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Provides Third Quarter 2020 Operational Update
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 boe - Q3 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
DERIVATIVES UPDATE
Below is Viper’s hedge position as of
Crude Oil (Bbls/day, $/Bbl) | ||||||
Q4 2020 | FY 2021 | |||||
Swaps - WTI ( |
1,000 | — | ||||
$ | 27.45 | $ | — | |||
Collars - WTI ( |
14,000 | 10,000 | ||||
Floor Price | $ | 28.86 | $ | 30.00 | ||
Ceiling Price | $ | 32.33 | $ | 43.05 | ||
Deferred Premium Call Options - WTI ( |
8,000 | — | ||||
Premium | $ | (1.89 | ) | $ | — | |
Strike Price ($/Bbl) | $ | 45.00 | $ | — | ||
Basis Swaps - WTI ( |
4,000 | — | ||||
$ | (2.60 | ) | $ | — | ||
Natural Gas (Mmbtu/day, $/Mmbtu) | ||||||
Q4 2020 | FY 2021 | |||||
Natural Gas Basis Swaps - |
25,000 | — | ||||
$ | (2.07 | ) | $ | — |
About
Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in
About
Diamondback is an independent oil and natural gas company headquartered in
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 Diamondback’s plans for the acreage discussed above, development activity by other operators, commodity prices, effects of hedging arrangements and the impact of the ongoing COVID-19 pandemic. 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
Investor Contacts:
+1 432.221.7467
alawlis@viperenergy.com
+1 432.221.7420
agilfillian@viperenergy.com
Source: Viper Energy Partners LP