VNOM - Diamondback Energy's Subsidiary Plans To Buy Stake In Permian Basin & More Provides FY24 Outlook | Benzinga
Viper Energy Partners LP (NASDAQ: VNOM), a subsidiary of Diamondback Energy Inc (NASDAQ: FANG), disclosed a purchase and sale deal to acquire certain mineral and royalty interests from affiliates of Warwick Capital Partners and GRP Energy Capital.
The transaction is valued at $750 million of cash and around 9.02 million VNOM common units, with the valuation implying a more than 15% FY24 unlevered FCF yield at current strip prices.
The company expects to fund the cash portion of this transaction from cash balance, borrowings under its credit facility, and up to $200 million of committed equity from FANG.
The buyout includes about 4,600 net royalty acres in the Permian Basin and an additional ~2,700 in other major basins, totaling the acreage to roughly ...