Viper Energy Partners LP, a Subsidiary of Diamondback Energy, Inc., Provides Second Quarter 2020 Operational Update

MIDLAND, Texas, July 14, 2020 (GLOBE NEWSWIRE) -- Viper Energy Partners LP (NASDAQ: VNOM) (“Viper” or the “Company”) today provided an operational update for the second quarter ended June 30, 2020.

SECOND QUARTER 2020 UPDATE

• Q2 2020 average production of 14,453 bo/d (24,508 boe/d)
• Q2 2020 hedged realized prices of $22.39 per barrel of oil, $7.69 per barrel of natural gas liquids and ($1.01) per Mcf of natural gas, resulting in a total equivalent price of $13.60 per boe. Viper realized total hedging losses of ($2.1) million
• Q2 2020 unhedged realized prices of $21.00 per barrel of oil, $7.69 per barrel of natural gas liquids and $0.46 per Mcf of natural gas, resulting in a total equivalent price of $14.55 per boe

“Viper had limited completion activity on our acreage in the second quarter as operators reacted quickly to oil price volatility by cutting capital expenditures, ceasing completions and, in some cases, curtailing existing production. However, as commodity prices have improved in recent months, nearly all our curtailed production has come back online. Most importantly for Viper, Diamondback has recently brought three completion crews back to work after taking an almost three-month break from all completion activity in the second quarter of 2020.  Looking toward the second half of 2020, Diamondback expects to focus its completion activity on areas where Viper has significant mineral ownership, which will allow Viper’s oil production to grow in the back half of the year from the second quarter lows.  This activity should lead to strong fourth quarter 2020 exit rate production that we believe will continue throughout 2021 as Diamondback’s plans contemplate completing wells where Viper owns a significant royalty interest,” stated Travis Stice, Chief Executive Officer of Viper’s general partner.

DERIVATIVES UPDATE

Below is Viper’s hedge position as of June 30, 2020. 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.

	Crude Oil (Bbls/day, $/Bbl)
	Q3 2020				Q4 2020				FY 2021
Costless Collars - WTI (Cushing)	14,000				14,000				10,000
Floor Price ($/Bbl)	$	28.86			$	28.86			$	30.00
Ceiling Price ($/Bbl)	$	32.33			$	32.33			$	43.05
Swaps – WTI (Cushing)		1,000				1,000				—
	$	27.45			$	27.45			$	—
Deferred Premium Call Options - WTI (Cushing)		—				8,000				—
Premium		—			$	(1.89	)			—
Strike Price ($/Bbl)	$	—			$	45.00			$	—