Viper Energy Partners (NASDAQ:VNOM) experienced downward pressure in premarket trade on Tuesday, with shares falling 3.2% to $46.05 after a secondary share sale was priced at about $798 million. The Midland, Texas-based minerals and royalty acquirer disclosed late Monday that roughly 17.4 million shares were included in the offering.
According to the filing, the bulk of the shares were sold by Diamondback Energy (NASDAQ:FANG). Diamondback accounted for approximately 12.4 million of the shares offered. Prior to completing the sale, Diamondback held about 155.1 million Viper shares, equivalent to roughly 43.4% of Viper Energy’s outstanding common stock as stated in the prospectus.
The offering was set at an approximate price of $45.90 per share, which represented a 3.6% discount relative to Viper Energy’s most recent closing price. Other sellers in the transaction included EnCap affiliates and Oaktree Capital Management, who together contributed the remaining shares to reach the total offering size.
As part of the overall transaction, Viper Energy will repurchase 1 million partnership units from Oaktree Capital Management via a separate private placement. The filing lists JP Morgan and Goldman Sachs as joint bookrunners for the offering.
Market context heading into the trade showed Viper Energy shares had rallied year-to-date, gaining 23% through Monday’s close. The pricing of the secondary offering and the share transfers by major holders preceded the premarket decline on Tuesday.
Details at a glance:
- Secondary offering size: approximately $798 million.
- Shares sold: about 17.4 million total; Diamondback sold roughly 12.4 million.
- Offering price: approximately $45.90 per share, a 3.6% discount to the last close.
- Related transaction: Viper will repurchase 1 million partnership units from Oaktree in a private placement.
- Bookrunners: JP Morgan and Goldman Sachs.
- Share performance: VNOM up 23% year-to-date through Monday’s close; down 3.2% to $46.05 in premarket on Tuesday.
The filing-based information presents a clear account of who sold shares and how the offering was structured. It also records the maintained stake of Diamondback prior to the sale and details the repurchase of partnership units from Oaktree as a separate element of the transaction. The pricing at a slight discount and the concentration of sales by a single large shareholder are notable elements disclosed in the prospectus and reflected in early trading moves.