An updated profile for Viper Energy Inc. has been posted to the EPG website.
It is one of my Top Picks for Growth + Income.
Viper Energy (VNOM) Update - Feb 28
Viper Energy (VNOM) Update - Feb 28
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Viper Energy (VNOM) Update - Feb 28
Viper is in beast mode. Up 22% in a month!
Re: Viper Energy (VNOM) Update - Feb 28
Diamondback Energy to sell 11.5M shares of Viper Energy
Mar. 05, 2024 4:29 PM ETViper Energy, Inc. (VNOM) StockFANG
Viper Energy (NASDAQ:VNOM) said it will launch an underwritten public offering of 11.5M shares of its class A common stock by its parent, Diamondback Energy (FANG).
FANG has also granted the underwriters a 30-day option to purchase up to an additional 1.73M shares of its class A common stock.
Mar. 05, 2024 4:29 PM ETViper Energy, Inc. (VNOM) StockFANG
Viper Energy (NASDAQ:VNOM) said it will launch an underwritten public offering of 11.5M shares of its class A common stock by its parent, Diamondback Energy (FANG).
FANG has also granted the underwriters a 30-day option to purchase up to an additional 1.73M shares of its class A common stock.
Re: Viper Energy (VNOM) Update - Feb 28
Additionally this was filed with SEC today:
Up to 98,656,453 Shares
Viper Energy, Inc.
Class A Common Stock
This prospectus relates to the proposed resale from time to time of up to 98,656,453 shares of our Class A common stock, par value $0.000001 per share (the Class A common stock), by Diamondback Energy, Inc. and its wholly-owned subsidiary Diamondback E&P LLC (the selling stockholders).
The selling stockholders may offer and sell or otherwise dispose of their shares of our Class A common stock described in this prospectus from time to time through public or private transactions at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale or at negotiated prices. See Plan of Distribution for more information about how the selling stockholders may sell or dispose of their shares of Class A common stock.
We will not receive any proceeds from the sale of the shares by the selling stockholders.
So I am assuming this is being done to raise some cash for the purchase of Endeavor. Up to $3.8 billion of the $8 billion cash consideration adjusted of course by post effective date adjustments.
Up to 98,656,453 Shares
Viper Energy, Inc.
Class A Common Stock
This prospectus relates to the proposed resale from time to time of up to 98,656,453 shares of our Class A common stock, par value $0.000001 per share (the Class A common stock), by Diamondback Energy, Inc. and its wholly-owned subsidiary Diamondback E&P LLC (the selling stockholders).
The selling stockholders may offer and sell or otherwise dispose of their shares of our Class A common stock described in this prospectus from time to time through public or private transactions at fixed prices, at prevailing market prices at the time of sale, at prices related to the prevailing market price, at varying prices determined at the time of sale or at negotiated prices. See Plan of Distribution for more information about how the selling stockholders may sell or dispose of their shares of Class A common stock.
We will not receive any proceeds from the sale of the shares by the selling stockholders.
So I am assuming this is being done to raise some cash for the purchase of Endeavor. Up to $3.8 billion of the $8 billion cash consideration adjusted of course by post effective date adjustments.
Re: Viper Energy (VNOM) Update - Feb 28
BUY THE DIP
Viper is down a bit today because of confusion over the announced potential sale by Diamondback of some of their shares of VNOM. In my opinion, Diamondback only wants the option to sell sell some shares if it needs cash to close the merger with Endeavor.
Post-closing of the merger, Diamondback is going to drop down a lot more minerals into Viper. The amount of cash and/or equity that Diamondback gets in the exchange is unknown, but I expect it to be accretive to existing owners of VNOM.
Viper is down a bit today because of confusion over the announced potential sale by Diamondback of some of their shares of VNOM. In my opinion, Diamondback only wants the option to sell sell some shares if it needs cash to close the merger with Endeavor.
Post-closing of the merger, Diamondback is going to drop down a lot more minerals into Viper. The amount of cash and/or equity that Diamondback gets in the exchange is unknown, but I expect it to be accretive to existing owners of VNOM.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Viper Energy (VNOM) Update - Feb 28
The registration statement filed was for what appears to be all of FANG’s shares or 56% of outstanding shares. If FANG systematically liquidates these holdings I think the relationship between Viper and Fang should be viewed with professional skepticism. I wouldn’t assume any drop downs of royalties from Fang to Viper will be overly favorable to Viper’s shareholders. That said, I view Fang and Viper as having incredibly talented management teams with high level of integrity. My view is the best way to play is to own a mix of both companies.
Re: Viper Energy (VNOM) Update - Feb 28
SEC Filing
11,500,000 Shares VIPER ENERGY, INC. Class A Common Stock The selling stockholder identified in this prospectus supplement (Diamondback Energy) is selling an aggregate of 11,500,000 shares of our Class A common stock.
We will not receive any proceeds from the sale of shares of our Class A common stock in this offering.
The selling stockholder (Diamondback) has granted the underwriters a 30-day option to purchase up to an additional 1,725,000 shares of our Class A common stock on the same terms and conditions as set forth below.
Our Class A common stock is listed on The NASDAQ Global Select Market under the symbol “VNOM.” We converted into a Delaware corporation on November 13, 2023. Before that date, we were Viper Energy Partners LP, a Delaware limited partnership with common units representing limited partner interests listed on The NASDAQ Global Select Market under the symbol “VNOM.” On November 13, each outstanding common unit converted into one share of Class A common stock. On March 4, 2024, the last reported sales price of our Class A common stock was $37.22 per share.
11,500,000 Shares VIPER ENERGY, INC. Class A Common Stock The selling stockholder identified in this prospectus supplement (Diamondback Energy) is selling an aggregate of 11,500,000 shares of our Class A common stock.
We will not receive any proceeds from the sale of shares of our Class A common stock in this offering.
The selling stockholder (Diamondback) has granted the underwriters a 30-day option to purchase up to an additional 1,725,000 shares of our Class A common stock on the same terms and conditions as set forth below.
Our Class A common stock is listed on The NASDAQ Global Select Market under the symbol “VNOM.” We converted into a Delaware corporation on November 13, 2023. Before that date, we were Viper Energy Partners LP, a Delaware limited partnership with common units representing limited partner interests listed on The NASDAQ Global Select Market under the symbol “VNOM.” On November 13, each outstanding common unit converted into one share of Class A common stock. On March 4, 2024, the last reported sales price of our Class A common stock was $37.22 per share.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group