SECOND QUARTER HIGHLIGHTS
Q2 2023 average production of 21,143 bo/d (37,681 boe/d), an increase of 5.1% from Q1 2023 and 7.0% year over year; highest in Company history
Received
Q2 2023 consolidated net income (including non-controlling interest) of
Q2 2023 cash available for distribution to Viper's common units (as defined and reconciled below) of
Increasing annual base distribution by 8% to
Q2 2023 variable cash distribution of
Repurchased 0.9 million common units in Q2 2023 for
Total Q2 2023 return of capital to LP unitholders of
Increased borrowing base from
285 total gross (5.9 net 100% royalty interest) horizontal wells turned to production on Viper's acreage during Q2 2023 with an average lateral length of 11,403 feet
Initiating average daily production guidance for Q3 2023 of 21,750 to 22,250 bo/d (37,500 to 38,500 boe/d), the midpoint of which implies 4.0% growth relative to Q2 2023
Narrowing full year 2023 average daily production range to 21,000 to 21,500 bo/d (36,500 to 37,500 boe/d)
'Viper's announcement today to increase its annual base distribution is a natural progression of our enhanced return of capital program that was implemented with second quarter earnings last year. Over the past year we have further improved our balance sheet, grown oil production by 7%, and reduced our unit count by roughly five million units. With the increased base distribution currently representing over a 4% annualized yield, Viper has the balance sheet strength and durable cash flow profile to support this level of committed return of capital through the cycle. Additionally, while we still plan to opportunistically repurchase units, this increase to our base distribution highlights our commitment to a sustainable and growing return of capital through cash distributions over the long-term,' stated
FINANCIAL UPDATE
Viper's second quarter 2023 average unhedged realized prices were
Viper's second quarter 2023 average hedged realized prices were
During the second quarter of 2023, the Company recorded total operating income of
As of
SECOND QUARTER 2023 CASH DISTRIBUTION & CAPITAL RETURN PROGRAM
Viper announced today that the Board of Directors (the 'Board') of
The Board also declared a variable cash distribution of
During the second quarter of 2023, Viper repurchased 0.9 million common units for an aggregate purchase price of
OPERATIONS UPDATE
During the second quarter of 2023, Viper estimates that 285 gross (5.9 net 100% royalty interest) horizontal wells with an average royalty interest of 2.1% were turned to production on its acreage position with an average lateral length of 11,403 feet. Of these 285 gross wells, Diamondback is the operator of 81 gross wells, with an average royalty interest of 4.8%, and the remaining 204 gross wells, with an average royalty interest of 1.0%, are operated by third parties.
Viper's footprint of mineral and royalty interests was 27,178 net royalty acres as of
The following table summarizes Viper's gross well information for the second quarter ended
CONFERENCE CALL
Viper will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2023 on
About
Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in
About
Diamondback is an independent oil and natural gas company headquartered in
Forward-Looking Statements
This news release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper's: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper's ability to replace or increase reserves; anticipated benefits of strategic transactions (such as acquisitions or divestitures) and plans and objectives of (including Diamondback's plans for developing Viper's acreage and Viper's cash distribution policy and common unit repurchase program) are forward-looking statements. When used in this news release, the words 'aim,' 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'guidance,' 'intend,' 'may,' 'model,' 'outlook,' 'plan,' 'positioned,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target,' 'will,' 'would,' and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper's future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.
Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; actions taken by the members of
In light of these factors, the events anticipated by Viper's forward-looking statements may not occur at the time anticipated or at all. Moreover, the new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaim any obligation to, update or revise any forward-looking statements unless required by applicable law.
Contact:
Tel: +1 432.221.7420
Email: agilfillian@viperenergy.com
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