Viper Energy Completes Strategic Acquisition for Growth
Viper Energy Acquires Sitio Royalties Corp
Viper Energy, Inc. (NASDAQ: VNOM), a subsidiary of Diamondback Energy, Inc. (NASDAQ: FANG), has made significant strides in the oil and gas sector by successfully completing its acquisition of Sitio Royalties Corp, marking a monumental step in its growth strategy. This all-equity transaction is set to enhance Viper's production capabilities and market position significantly.
Enhanced Production Guidance for Q3
Following the acquisition, Viper has revised its production guidance for the third quarter, showcasing an optimistic outlook. The average oil production is projected to rise to between 54,500 and 57,500 barrels of oil per day (bo/d), reflecting an impressive increase of 8,500 bo/d at the midpoint compared to previous forecasts. Additionally, the total anticipated production is expected to reach between 104,000 and 110,000 barrels of oil equivalent per day (boe/d), representing an increase of 18,000 boe/d at the midpoint.
Commentary from Leadership
Kaes Van't Hof, the Chief Executive Officer of Viper, expressed his enthusiasm regarding the merger, stating, "We are pleased to announce the closing of the merger of Viper and Sitio. This combination is a significant milestone for the mineral and royalty industry. Together, we are creating a leader in size, scale, float, and liquidity in the fragmented minerals market. Viper will maintain its unique relationship with Diamondback, ensuring continued access to investment-grade capital, and be well-positioned for future growth with limited capital expenditures and operating costs."
About Viper Energy, Inc.
Viper Energy, Inc. was established by Diamondback Energy to acquire and exploit oil and natural gas assets, particularly focusing on mineral and royalty interests in key oil-producing areas like the Permian Basin. Viper aims to maximize value and drive growth through strategic acquisitions and operational efficiency.
About Diamondback Energy, Inc.
Diamondback Energy, Inc. is an independent oil and natural gas company with a focus on the acquisition and development of unconventional onshore oil reserves. With headquarters in Midland, Texas, Diamondback emphasizes responsible and effective resource management to create shareholder value.
Investor Relations
For interested parties looking to connect with Viper, Chip Seale is the point of contact. He can be reached at +1 432.247.6218 or via email at cseale@viperenergy.com for any investor inquiries.
Frequently Asked Questions
What is the significance of Viper Energy's acquisition of Sitio Royalties Corp?
This acquisition enhances Viper's production capacity and market presence, positioning it as a leader in the mineral and royalty sector.
How does the merger impact Viper Energy's production guidance?
The merger has led to an upward revision in production guidance, with expected increases in both oil and total production metrics.
Who is the CEO of Viper Energy, and what did he say about the merger?
Kaes Van't Hof is the CEO, and he highlighted the merger as a crucial step for industry leadership and growth potential.
What areas does Viper Energy focus on for its acquisitions?
Viper Energy primarily targets oil-weighted basins, especially the Permian Basin, for its mineral and royalty interests.
How can investors learn more about Viper Energy?
Investors can visit Viper's website or contact the investor relations office for more information and updates.
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