VNOM - Viper Energy Partners: Modest Production Growth Expected At $50 Oil
- Viper Energy Partners should see at least modest production growth from its current assets at $50s oil.
- It could also enter into a drop-down transaction in 2021 with Diamondback Energy for an NRI on its newly acquired acreage. This would provide additional growth.
- Viper's value is estimated at $16 with $50 oil. The 2021 and 2022 strip average is around that currently.
- Value would increase to around $20 with longer-term $55 oil, although further oil price increases would be constrained by industry production growth.
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Viper Energy Partners: Modest Production Growth Expected At $50 Oil