Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Provides Third Quarter 2020 Operational Update
Viper Energy Partners LP (NASDAQ: VNOM) reported its third-quarter operational update for 2020, with average production reaching 15,829 bo/d, representing a 10% increase from the previous quarter. The company achieved hedged realized prices of $27.65 per barrel of oil and total equivalent prices of $19.11 per boe. Unhedged realized prices showed a healthier figure at $36.80 per barrel for oil, translating to $25.76 per boe. Viper noted a decrease in net debt due to robust free cash flow and plans to enhance cash flow returns to unitholders in the latter half of 2020.
- 10% increase in oil production quarter over quarter.
- Hedged realized prices of $27.65 per barrel for oil.
- Improved unhedged realized prices at $36.80 per barrel of oil.
- Decrease in net debt attributed to strong free cash flow generation.
- Plans to return higher available cash flow to unitholders in H2 2020.
- None.
MIDLAND, Texas, Oct. 13, 2020 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ: VNOM) (“Viper” or the “Company”) today provided an operational update for the third quarter ended September 30, 2020.
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
DERIVATIVES UPDATE
Below is Viper’s hedge position as of October 12, 2020. The Company’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing. When aggregating multiple contracts, the weighted average contract price is disclosed.
| Crude Oil (Bbls/day, $/Bbl) | ||||||
| Q4 2020 | FY 2021 | |||||
| Swaps - WTI (Cushing) | 1,000 | — | ||||
| $ | 27.45 | $ | — | |||
| Collars - WTI (Cushing) | 14,000 | 10,000 | ||||
| Floor Price | $ | 28.86 | $ | 30.00 | ||
| Ceiling Price | $ | 32.33 | $ | 43.05 | ||
| Deferred Premium Call Options - WTI (Cushing) | 8,000 | — | ||||
| Premium | $ | (1.89 | ) | $ | — | |
| Strike Price ($/Bbl) | $ | 45.00 | $ | — | ||
| Basis Swaps - WTI (Midland-Cushing) | 4,000 | — | ||||
| $ | (2.60 | ) | $ | — | ||
| Natural Gas (Mmbtu/day, $/Mmbtu) | ||||||
| Q4 2020 | FY 2021 | |||||
| Natural Gas Basis Swaps - Waha Hub | 25,000 | — | ||||
| $ | (2.07 | ) | $ | — | ||
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 owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin and the Eagle Ford Shale. 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 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 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 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
+1 432.221.7467
alawlis@viperenergy.com
Austen Gilfillian
+1 432.221.7420
agilfillian@viperenergy.com
FAQ
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