Viper (VNOM) Signs a Deal to Acquire Northern Midland Basin Acres
Viper Energy Partners LP VNOM announced a definitive purchase and sale agreement with Swallowtail Royalties LLC and Swallowtail Royalties II LLC.
Per the accord, the publicly-traded Delaware limited partnership – an affiliate of Diamondback Energy, Inc. FANG – has agreed to acquire certain mineral and royalty interests for a consideration of $225 million of cash and 15.25 million units of Viper common stock.
The deal involves the acquisition of 2,302 net royalty acres, located in the Northern Midland Basin. Of the acreage, roughly 65% is operated by Diamondback. Thus, the Diamondback-operated acreage of the partnership will likely jump more than 10% to 14,191 net royalty acres.
Viper Energy believes that once the deal closes, likely by early December quarter of this year, it will be accretive to available cash for distribution per common unit. The partnership projected that with Diamondback’s accelerated development activities, the available cash for distribution per common unit will continue to grow.
Viper Energy Partners LP Price
Viper Energy Partners LP price | Viper Energy Partners LP Quote
The partnership currently carries a Zacks Rank #2 (Buy). Two other prospective players in the energy space include Whiting Petroleum Corporation WLL and Continental Resources, Inc. CLR. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Continental is expected to witness earnings growth of 256% in 2021.
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