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Viper Updates Production, Guidance; Talks Drilling Activity

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Viper Energy Partners LP announced financial and operating results for the second quarter ended June 30, 2016 and provided an update on acquisitions.

Highlights:

• The Board of Directors of Viper's general partner has declared a cash distribution for the three months ended June 30, 2016 of $0.189 per common unit, payable on August 22, 2016, to unitholders of record at the close of business on August 15, 2016.
• Viper recently entered into separate purchase agreements with unrelated third party sellers to acquire mineral interests in 7,487 gross (601 net royalty) acres in the Midland Basin and 650 gross (142 net royalty) acres in the Delaware Basin, with estimated August 2016 aggregate net production of 500 boe/d, for approximately $111 million.
• During the second quarter of 2016, the operators of Viper's Spanish Trail mineral interests brought online eight gross horizontal wells, consisting of six Lower Spraberry and two Wolfcamp A completions. The operators of Viper's Spanish Trail acreage have built an inventory of 35 drilled but uncompleted wells as a result of low commodity prices during the first half of 2016.

Production Update

As previously announced, production attributable to Viper's mineral interests was 5,380 boe/d for the second quarter of 2016, up 11% from 4,832 boe/d for the second quarter of 2015.

Financial Update

During the second quarter of 2016, the Company recorded total operating income of $17.0 million and a net loss of $14.0 million, primarily attributable to an impairment charge of $21.5 million as a result of depressed commodity prices.

As of June 30, 2016, Viper had $51.5 million outstanding under its $175 million revolving credit facility. As of July 22, 2016, Viper had $132.5 million outstanding under this facility as a result of additional borrowings used to fund the acquisitions it completed in July 2016.

Guidance

Below is Viper's full year 2016 guidance, which has been updated for decreased depreciation, depletion and amortization expense. The Company forecasts 2016 DD&A of $12.00 to $14.00 per boe, down from the prior range of $14.00 to $16.00 per boe.