Midland-based Viper Energy Partners, mineral and royalties affiliate of Diamondback Energy, said Aug. 9 it is acquiring mineral and royalties interests from Swallowtail Royalties and Swallowtail Royalties II in a stock and cash transaction valued at $498 million ($225 million cash). Viper will acquire 2,302 net royalty acres primarily in northern Midland Basin – 65 percent operated by Diamondback.
The deal includes 1,450 net royalty acres in Martin County (75 percent in Sale and Robertson ranches) where Diamondback plans to complete at least 70 gross wells in 2022 and an additional 325-to-375 gross wells in the next four years. Production is expected to exceed 5,000 boed by 2024 with 2022 production of 1,000 boed. Also included are 852 net royalty acres in Midland Basin – 80 percent operated by Pioneer Natural Resources and Endeavor Energy. Oil production in 2021Q2 was 677 b/d with a forecast of 1,000 b/d this month after completion of an eight-well pad. Travis Stice, CEO, said, “The large, contiguous block of primarily undeveloped acreage in Sale and Robertson ranches will drive oil production growth for Viper.”