Diamondback Energy's Subsidiary Plans To Buy Stake In Permian Basin & More, Provides FY24 Outlook
Portfolio Pulse from Lekha Gupta
Viper Energy Partners LP (VNOM), a subsidiary of Diamondback Energy Inc (FANG), plans to acquire mineral and royalty interests from Warwick Capital Partners and GRP Energy Capital for $750 million and 9.02 million VNOM common units. The deal includes about 7,300 net royalty acres in the Permian Basin and other major basins. The transaction is expected to close by mid-Q4 FY23. VNOM expects the production to increase to ~4,750 bo/d (~8,500 boe/d) for 2024. VNOM provided FY24 preliminary guidance, expecting average daily production guidance of 25,500 to 27,500 bo/d (44,500 to 48,000 boe/d).
September 05, 2023 | 2:11 pm
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POSITIVE IMPACT
Diamondback Energy Inc's subsidiary, Viper Energy Partners, is acquiring mineral and royalty interests. The deal is expected to close by mid-Q4 FY23.
As the parent company of Viper Energy Partners, Diamondback Energy Inc could see a potential increase in its stock price due to the expected increase in production from the acquisition.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Viper Energy Partners is acquiring mineral and royalty interests, which is expected to increase its production in 2024. The deal is expected to close by mid-Q4 FY23.
The acquisition of mineral and royalty interests is expected to increase Viper Energy Partners' production, which could lead to increased revenues and potentially a higher stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100