Viper Energy Launches Offering of Class A Common Stock
Viper Energy (NASDAQ: VNOM) has launched an underwritten public offering of 8,500,000 shares of its Class A common stock, with an option for underwriters to purchase an additional 1,275,000 shares. The company plans to use the net proceeds, along with cash on hand and credit facility borrowings, to fund part of the cash consideration for its pending acquisition of mineral and royalty-interest owning subsidiaries of Tumbleweed Royalty IV,
Goldman Sachs & Co. , BofA Securities, and Truist Securities are acting as joint book-running managers for the offering. The shares will be issued and sold under an effective automatic shelf registration statement on Form S-3ASR previously filed with the SEC.
Viper Energy (NASDAQ: VNOM) ha lanciato un'offerta pubblica garantita di 8.500.000 azioni del suo comune stock di Classe A, con un'opzione per gli underwriter di acquistare ulteriori 1.275.000 azioni. L'azienda prevede di utilizzare i proventi netti, insieme a liquidità disponibile e prestiti da linee di credito, per finanziare parte del corrispettivo in denaro per la proposta acquisizione di sussidiarie che detengono interessi minerari e di royalty di Tumbleweed Royalty IV.
Goldman Sachs & Co., BofA Securities e Truist Securities stanno agendo come gestori congiunti dell'offerta. Le azioni saranno emesse e vendute sotto una registrazione automatica efficace sul Modulo S-3ASR già presentato alla SEC.
Viper Energy (NASDAQ: VNOM) ha lanzado una oferta pública respaldada de 8.500.000 acciones de su acción común de Clase A, con una opción para los suscriptores de adquirir 1.275.000 acciones adicionales. La empresa planea utilizar los ingresos netos, junto con efectivo disponible y préstamos de líneas de crédito, para financiar parte de la contraprestación en efectivo por su adquisición pendiente de subsidiarias que poseen intereses mineros y de regalías de Tumbleweed Royalty IV.
Goldman Sachs & Co., BofA Securities y Truist Securities están actuando como gerentes de libro conjuntos para la oferta. Las acciones se emitirán y venderán bajo una declaración de registro automático efectiva en el Formulario S-3ASR, previamente presentada a la SEC.
Viper Energy (NASDAQ: VNOM)는 8,500,000주의 클래스 A 보통주에 대한 공모를 시작했으며, 인수인에게 추가로 1,275,000주를 구매할 수 있는 선택권을 제공합니다. 회사는 순수익과 보유 중인 현금, 신용 시설 대출을 사용하여 Tumbleweed Royalty IV의 광물 및 로열티 소유 자회사의 인수에 대한 현금 보상 일부를 조달할 계획입니다.
Goldman Sachs & Co., BofA Securities 및 Truist Securities는 이번 공모에 대한 공동 주관 관리자로 활동하고 있습니다. 주식은 SEC에 이전에 제출된 S-3ASR 양식의 효과적인 자동 선반 등록 진술서 하에 발행되고 판매될 것입니다.
Viper Energy (NASDAQ: VNOM) a lancé une offre publique souscrite de 8.500.000 actions de ses actions ordinaires de classe A, avec une option pour les souscripteurs d'acheter 1.275.000 actions supplémentaires. La société prévoit d'utiliser le produit net, ainsi que des liquidités disponibles et des emprunts de lignes de crédit, pour financer en partie la contrepartie en espèces de son acquisition en cours de filiales détenant des intérêts miniers et de redevances de Tumbleweed Royalty IV.
Goldman Sachs & Co., BofA Securities et Truist Securities agissent en tant que chefs de file conjoints de l'offre. Les actions seront émises et vendues en vertu d'une déclaration d'enregistrement automatique effective sur le formulaire S-3ASR précédemment déposé auprès de la SEC.
Viper Energy (NASDAQ: VNOM) hat eine abgesicherte öffentliche Angeboten von 8.500.000 Aktien seiner Klasse A Stammaktien gestartet, mit einer Option für die Underwriter, zusätzliche 1.275.000 Aktien zu erwerben. Das Unternehmen plant, die Nettoerlöse zusammen mit verfügbaren Barmitteln und Kreditlinienkrediten zu verwenden, um einen Teil des Barentgelts für die bevorstehende Akquisition von Tochtergesellschaften, die Mineralien- und Royalty-Interessen besitzen, von Tumbleweed Royalty IV zu finanzieren.
Goldman Sachs & Co., BofA Securities und Truist Securities fungieren als gemeinsame Buchführungsleiter für das Angebot. Die Aktien werden im Rahmen einer zuvor bei der SEC eingereichten wirksamen automatischen Regalregistrierungserklärung auf dem Formular S-3ASR ausgegeben und verkauft.
- Potential expansion of mineral and royalty interests through pending acquisition
- Ability to raise capital through public offering indicates market confidence
- Underwriter option for additional shares could increase capital raised
- Potential dilution of existing shareholders due to new share issuance
- Increased debt if borrowings from credit facility are used for acquisition
- Dependency on successful completion of the offering to fund acquisition
Insights
Viper Energy's public offering of 8.5 million shares, with an option for 1.275 million more, is a significant capital-raising move. This offering, aimed at funding the Tumbleweed Royalty IV acquisition, indicates Viper's aggressive growth strategy in the Permian Basin's mineral and royalty interests sector.
The use of multiple financing sources - stock offering, cash reserves and credit facility - suggests a balanced approach to capital structure. However, investors should note the potential dilution effect on existing shareholders. The involvement of major underwriters like Goldman Sachs and BofA Securities lends credibility to the offering but also implies substantial fees.
While this move could enhance Viper's market position, the success hinges on the Tumbleweed acquisition's value creation. Investors should closely monitor the acquisition's integration and its impact on Viper's future cash flows and dividends.
Viper Energy's stock offering comes at a time when the energy sector is experiencing volatility. The Permian Basin, where Viper focuses, remains a key area for U.S. oil production, but faces challenges from price fluctuations and environmental concerns.
This capital raise suggests Viper sees long-term value in expanding its mineral and royalty interests, betting on the basin's continued productivity. The market's reception to this offering will be a litmus test for investor sentiment towards the oil and gas sector, particularly in a climate of increasing focus on renewable energy.
Investors should consider how this expansion aligns with broader energy transition trends and potential regulatory changes that could impact the Permian Basin's long-term viability. The success of this offering could also influence other players in the sector to pursue similar strategies.
MIDLAND, TEXAS, Sept. 11, 2024 (GLOBE NEWSWIRE) -- Viper Energy, Inc. (NASDAQ: VNOM) (“Viper”) announced today the launch of an underwritten public offering of 8,500,000 shares of its Class A common stock, subject to market and other conditions (the “Primary Offering”). The underwriters will have an option to purchase up to an additional 1,275,000 shares of Class A common stock from Viper in the Primary Offering.
Viper intends to use the net proceeds from the Primary Offering, together with cash on hand and borrowings under its revolving credit facility, to fund a portion of the cash consideration for its previously announced pending acquisition of certain mineral and royalty-interest owning subsidiaries of Tumbleweed Royalty IV, LLC (the “Pending Acquisition”).
Goldman Sachs & Co. LLC, BofA Securities and Truist Securities are acting as joint book-running managers for the Primary Offering. Copies of the written base prospectus and prospectus supplement for the Primary Offering may be obtained on the website of the Securities and Exchange Commission, www.sec.gov or, when available, may be obtained from Goldman Sachs & Co. LLC, 200 West Street, New York, NY 10282, Attention: Prospectus Department, by telephone at (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, or by emailing dg.prospectus_requests@bofa.com; and Truist Securities, Inc., Attention: Equity Capital Markets, 3333 Peachtree Road NE, 9th Floor, Atlanta, GA 30326, by telephone at (800) 685-4786, or by emailing truistsecurities.prospectus@truist.com.
The Class A common stock will be issued and sold pursuant to an effective automatic shelf registration statement on Form S-3ASR previously filed with the Securities and Exchange Commission (the “Registration Statement”).
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities 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 such state or jurisdiction. The Primary Offering may only be made by means of a prospectus supplement and related base prospectus.
About Viper Energy, Inc.
Viper is a publicly traded Delaware corporation that owns and acquires mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin.
Cautionary Note Regarding Forward-Looking Statements
The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact included in this press release, regarding the completion of the Primary Offering, Viper’s strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this press release, the words “could,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “goal,” “plan,” “target” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. These forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Be cautioned that these forward-looking statements are subject to all of the risk and uncertainties, most of which are difficult to predict and many of which are beyond Viper’s control, incident to the development, production, gathering and sale of oil and natural gas. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, risks relating to the Pending Acquisition, including its consummation or the realization of the anticipated benefits and synergies therefrom. Actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including, but not limited to, those set forth in Viper’s filings with the SEC, including the prospectus and prospectus supplement relating to the Primary Offering, the Registration Statement, its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, under the caption “Risk Factors,” as may be updated from time to time in Viper’s periodic filings with the SEC. Any forward-looking statement in this press release speaks only as of the date of this release. Viper undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by any applicable securities laws.
Investor Contacts:
Adam Lawlis
+1 432.221.7467
alawlis@diamondbackenergy.com
Austen Gilfillian
+1 432.221.7420
agilfillian@diamondbackenergy.com
FAQ
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