Viper Energy Partners LP

Viper Energy Partners is a publicly traded limited partnership focused on owning and acquiring mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. Headquartered in Midland, Texas, Viper Energy was formed by Diamondback Energy, Inc. in 2014 to own, acquire, and exploit oil and natural gas properties in North America.

Viper Energy's assets consist of mineral interests covering approximately 4,600 Permian and 2,700 other basin net royalty acres as of September 2022, over 50% of which are located in the Midland and Delaware Basins of the Permian. The company is positioned to generate free cash flow through commodity price cycles with high leverage to increasing oil prices with an assumption for 2024 of 44.50 – 48.00 Mboe/d total production and $8 Million Cash G&A. At $80 WTI and production held flat at the midpoint of our preliminary 2024 guidance, Viper is expected to generate $3.60/unit in distributable cash flow per LP unit (13% yield).

In addition to its existing mineral and royalty acreage, Viper Energy recently announced an agreement to acquire the royalty assets of GRC Royalty, LLC for $750 million in cash and 9.02 million Viper common units. The acquired assets include approximately 7,300 net royalty acres spanning the Permian Basin and DJ Basin along with other oil-weighted basins. Pro forma for the acquisition, Viper Energy will have over 12,500 net royalty acres, over 60% of which are in the Permian.

With its high-quality royalty acreage position, oil-weighted production mix, and minimal operating or capital expenditures, Viper Energy offers investors attractive exposure to hydrocarbon resources in some of North America's most prolific basins.