MIDLAND, Texas, March 19, 2020 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ: VNOM) (“Viper” or the “Company”) today announced that it is updating its average daily production guidance for the full year 2020 to a range of 14,000 to 17,000 bo/d (22,500 to 27,000 boe/d). Given the current global headwinds and fluid commodity price environment, this guidance reflects the Company’s current estimated production given Diamondback’s updated development plans and contemplates only limited contribution from further development by third-party operators.

Additionally, given the dramatic decline in commodity prices and expected continued weakness, the Board of Directors of Viper’s general partner authorized the Company to hedge a majority of its 2020 and 2021 estimated oil production primarily through WTI collars to limit downside to the Company’s cash flow.

“Viper is reducing production expectations for the year due to significantly lower expected activity levels on third-party operated properties and slightly lower activity levels from Diamondback. Times like these emphasize the value of the Diamondback and Viper relationship, as Diamondback has focused its drilling on areas where Viper’s mineral ownership lowers consolidated breakeven economics. Viper has also now hedged the majority of its production, primarily through collars, to protect cash flow downside through an anticipated weak commodity price environment for an extended period of time,” stated Travis Stice, Chief Executive Officer of Viper’s general partner.

DERIVATIVES UPDATE

Below is Viper’s hedge position as of March 18, 2020. The Company continues to actively manage its hedge position by increasing downside protection and monitoring basis differentials.

As of March 18, 2020, the Company had the following outstanding derivative contracts. 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.

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 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 and commodity prices.  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 Contact:
Adam Lawlis
+1 432.221.7467
alawlis@viperenergy.com

Source: Viper Energy Partners LP