Viper Energy Partners Prices IPO At $26/Shr, Above Estimated Range

(RTTNews) - Viper Energy Partners LP, a subsidiary of Diamondback Energy, Inc. ( FANG) , and Diamondback announced the pricing of Viper's initial public offering of 5 million common units at $26.00 per common unit, which is well above the estimated range of $19.00 to $21.00 per share. The company expects to close the offering on June 23, 2014.

The Midland, Texas-based company's common units are expected to begin trading on the NASDAQ Global Select Market on June 18 under the ticker symbol "VNOM."

In addition, Viper has granted underwriters a 30-day option to buy additional 750,000 common units at the initial public offering price.

Upon consummation of offering, the public will own common units representing an about 7% limited partner interest in Viper (or an about 8% limited partner interest if the underwriters exercise in full their option to purchase additional common units).

Diamondback will own remaining approximate 93% limited partner interest in Viper (or an approximate 92% limited partner interest if the underwriters exercise in full their option to purchase additional common units) and the general partner of Viper.

Viper, which was formed in September 2013, intends to distribute offering net proceeds to Diamondback. The net proceeds from any exercise of the underwriters' option to purchase additional common units will also be distributed to Diamondback.

Barclays, Credit Suisse and Wells Fargo Securities are acting as joint book-running managers for the offering.