Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 5-May-15 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Viper Energy Partners LP | |
Entity Central Index Key | 1602065 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Units, Units Outstanding | 79,708,888 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $9,821 | $15,110 |
Restricted Cash and Investments, Current | 500 | 500 |
Royalty income receivable | 7,084 | 8,239 |
Other current assets | 492 | 253 |
Total current assets | 17,897 | 24,102 |
Oil and natural gas interests, based on the full cost method of accounting ($91,444 and $160,302 excluded from depletion at December 31, 2014 and December 31, 2013, respectively) | 510,999 | 511,085 |
Accumulated depletion | -41,700 | -32,800 |
Oil and natural gas interests, net | 469,299 | 478,285 |
Other assets | 34,950 | 35,015 |
Total assets | 522,146 | 537,402 |
Current liabilities: | ||
Accounts Payable, Current | 6 | 6 |
Other accrued liabilities | 695 | 2,045 |
Total current liabilities | 701 | 2,051 |
Commitments and contingencies | ||
Unitholders’ equity: | ||
Common units (79,708,888 units issued and outstanding as of December 31, 2014) | 521,445 | 535,351 |
Total unitholders’ equity/members’ equity | 521,445 | 535,351 |
Total liabilities and unitholders’ equity/members’ equity | $522,146 | $537,402 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
In Thousands, except Share data, unless otherwise specified | ||||
Statement of Financial Position [Abstract] | ||||
Oil and natural gas interests, based on the full cost method of accounting, amount excluded from depletion | $75,266 | $91,444 | [1] | $160,302 |
Common units issued | 79,708,888 | 79,708,888 | ||
Common units outstanding | 79,708,888 | 79,708,888 | ||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Royalty income | $16,545 | $15,853 |
Costs and expenses: | ||
Production and ad valorem taxes | 1,328 | 921 |
Depletion | 8,901 | 5,567 |
General and administrative expenses | 1,427 | 66 |
General and administrative expenses—related party | 125 | 78 |
Total costs and expenses | 11,781 | 6,632 |
Income from operations | 4,764 | 9,221 |
Other income (expense) | ||
Interest expense | -168 | 0 |
Interest expense—related party, net of capitalized interest | 0 | -5,368 |
Other income (expense) | 486 | 0 |
Total other income (expense), net | 318 | -5,368 |
Net income | $5,082 | $3,853 |
Net income attributable to common limited partners per unit: | ||
Basic (dollars per unit) | $0.06 | |
Diluted (dollars per unit) | $0.06 | |
Weighted average number of limited partner units outstanding | ||
Basic (in units) | 79,708 | |
Diluted (in units) | 79,711 |
Statement_of_Consolidated_Unit
Statement of Consolidated Unitholders' Equity and Members' Equity (USD $) | Total | Limited Partner [Member] | Members' Equity [Member] | Diamondback Energy, Inc. [Member] | Diamondback Limited Partner [Member] |
In Thousands, unless otherwise specified | Predecessor [Member] | Limited Partner [Member] | |||
Partners' capital at Dec. 31, 2013 | $2,988 | $2,988 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income | 3,853 | 3,853 | |||
Partners' capital at Mar. 31, 2014 | 6,841 | 6,841 | |||
Partners' capital at Dec. 31, 2014 | 535,351 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||
Net income | 5,082 | 5,082 | |||
Unit-based compensation | 939 | 939 | |||
vnom_LimitedPartnersCapitalAccountDistributionAmount-RelatedParty | -17,612 | ||||
vnom_LimitedPartnersCapitalAccountDistributionAmount | -2,315 | -2,315 | |||
Partners' capital at Mar. 31, 2015 | $521,445 | $521,445 | $0 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $5,082 | $3,853 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depletion | 8,901 | 5,567 |
Amortization of debt issuance costs | 65 | 0 |
Unit-based compensation expense | 939 | 0 |
Changes in operating assets and liabilities: | ||
Royalty income receivable | 1,155 | 2,795 |
Other current assets | 0 | -5,828 |
Accounts payable—related party | -1,349 | 156 |
Accounts payable and other accrued liabilities | -240 | 0 |
Net cash provided by operating activities | 14,553 | 6,543 |
Cash flows from investing activities: | ||
Additions to oil and natural gas interests | 0 | -6,878 |
Payments for (Proceeds from) Other Investing Activities | 85 | 0 |
Net cash used in investing activities | 85 | -6,878 |
Cash flows from financing activities | ||
Public offering costs | 0 | -28 |
Distribution to Diamondback | -19,927 | 0 |
Net cash provided by financing activities | -19,927 | -28 |
Net increase in cash | -5,289 | -363 |
Cash at beginning of period | 15,110 | 762 |
Cash and cash equivalents at end of period | 9,821 | 399 |
Supplemental disclosure of cash flow information: | ||
Interest paid, net of capitalized interest | 103 | 11,109 |
Supplemental disclosure of non—cash transactions: | ||
Capitalized interest | $0 | $2,927 |
Organization_and_Basis_of_Pres
Organization and Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | ORGANIZATION AND BASIS OF PRESENTATION |
Organization | |
Viper Energy Partners LP (the “Partnership”) is a publicly traded Delaware limited partnership, the common units of which are listed on the NASDAQ Global Market under the symbol “VNOM”. The Partnership was formed by Diamondback Energy, Inc., a Delaware corporation (together with its subsidiaries, “Diamondback”), on February 27, 2014 to, among other things, own, acquire and exploit oil and natural gas properties in North America. The Partnership is currently focused on oil and natural gas properties in the Permian Basin. Unless the context requires otherwise, references to “we,” “us,” “our,” or “the Partnership” are intended to mean the business and operations of Viper Energy Partners LP and its consolidated subsidiary, Viper Energy Partners LLC (the “Predecessor”), a Delaware limited liability company. | |
Prior to the completion on June 23, 2014 of the Partnership’s initial public offering (the “IPO”) of 5,750,000 common units representing limited partner interests (which included 750,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters), Diamondback owned all of the general and limited partner interests in the Partnership. On June 23, 2014, the Partnership completed its IPO at a price to the public of $26.00 per common unit. The Partnership received net proceeds of approximately $137.2 million from the sale of these common units, net of offering expenses and underwriting discounts and commissions. | |
In connection with the IPO, Diamondback contributed all of the membership interests in the Predecessor to the Partnership in exchange for 70,450,000 common units, and Viper Energy Partners GP LLC (the “General Partner”), a Delaware limited liability company, maintained its non-economic general partner interest. In addition, in connection with the closing of the IPO, the Partnership agreed to distribute to Diamondback all cash and cash equivalents and the royalty income receivable on hand in the aggregate amount of approximately $11.6 million and the net proceeds from the IPO. As of December 31, 2014, the Partnership had distributed $148.8 million to Diamondback as part of the IPO transactions. The contribution of the Predecessor to the Partnership was accounted for as a combination of entities under common control with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests. | |
On September 19, 2014, the Partnership completed an underwritten public offering of 3,500,000 common units. The common units were sold to the public at $28.50 per unit and the Partnership received net proceeds of approximately $94.8 million from the sale of these common units, net of offering expenses and underwriting discounts and commissions. | |
As of March 31 2015, the General Partner held a 100% non-economic general partner interest in the Partnership and Diamondback had an approximate 88.4% limited partner interest in the Partnership. Diamondback owns and controls the General Partner. | |
Basis of Presentation | |
The consolidated results of operations following the completion of the IPO are presented together with the results of operations pertaining to the Predecessor. The assets of the Predecessor consisted of mineral interests in oil and natural gas properties in the Permian Basin, which were acquired on September 19, 2013. See Note 3—Acquisitions. The contribution of the Predecessor to the Partnership on June 17, 2014 was accounted for as a combination of entities under common control with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests. The Partnership did not own any assets prior to June 17, 2014, the date of the contribution agreement by and among Diamondback, the Predecessor, the General Partner and the Partnership. Prior to the IPO, the Predecessor was a wholly owned subsidiary of Diamondback. For periods prior to June 17, 2014, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in members’ equity of the Predecessor and, for periods on and after June 17, 2014, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in partners’ equity of the Partnership and its wholly owned subsidiary. | |
The accompanying consolidated financial statements and related notes thereto were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”). All material intercompany balances and transactions are eliminated in consolidation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Use of Estimates | |
Certain amounts included in or affecting the Partnership’s financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts the Partnership reports for assets and liabilities and the Partnership’s disclosure of contingent assets and liabilities at the date of the financial statements. | |
The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties and unit–based compensation. | |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing, and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2016, with early application not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Partnership is currently evaluating the impact, if any, that the adoption of ASU 2014-09 will have on the Partnership’s financial position, results of operations, and liquidity. | |
In April 2015, the Financial Accounting Standards Board issued ASU 2015-03, “Interest—Imputation of Interest”. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount to simplify the presentation of debt issuance costs. The standard will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early application will be permitted for financial statements that have not previously been issued. |
Oil_and_Natural_Gas_Interests
Oil and Natural Gas Interests | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Extractive Industries [Abstract] | |||||||||
Oil and Natural Gas Interests | OIL AND NATURAL GAS INTERESTS | ||||||||
Oil and natural gas interests include the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Oil and natural gas interests: | |||||||||
Subject to depletion | $ | 435,733 | $ | 419,641 | |||||
Not subject to depletion—acquisition costs | |||||||||
Incurred in 2014 | 47,314 | 48,266 | |||||||
Incurred in 2013 | 27,952 | 43,178 | |||||||
Total not subject to depletion | 75,266 | 91,444 | |||||||
Gross oil and natural gas interests | 510,999 | 511,085 | |||||||
Less accumulated depletion | (41,700 | ) | (32,800 | ) | |||||
Oil and natural gas interests, net | $ | 469,299 | $ | 478,285 | |||||
Costs associated with unevaluated properties are excluded from the full cost pool until a determination as to the existence of proved reserves is able to be made. The inclusion of the Partnership’s unevaluated costs into the amortization base is expected to be completed within three to five years. |
Debt
Debt | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Debt Disclosure [Abstract] | ||||
Debt | DEBT | |||
Credit Agreement-Wells Fargo Bank | ||||
On July 8, 2014, the Partnership entered into a secured revolving credit agreement with Wells Fargo Bank, National Association, or Wells Fargo, as the administrative agent, sole book runner and lead arranger. The credit agreement, which was amended August 15, 2014 to add additional lenders to the lending group, provides for a revolving credit facility in the maximum amount of $500.0 million, subject to scheduled semi-annual and other elective collateral borrowing base redeterminations based on the Partnership’s oil and natural gas reserves and other factors (the “borrowing base”). The borrowing base is scheduled to be re-determined semi-annually with effective dates of April 1st and October 1st. In addition, the Partnership may request up to three additional redeterminations of the borrowing base during any 12-month period. As of March 31, 2015, the borrowing base was set at $110.0 million. The Partnership had no outstanding borrowings as of March 31, 2015. | ||||
The outstanding borrowings under the credit agreement bear interest at a rate elected by the Partnership that is equal to an alternative base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.5% and 3-month LIBOR plus 1.0%) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.5% to 1.50% in the case of the alternative base rate and from 1.50% to 2.50% in the case of LIBOR, in each case depending on the amount of the loan outstanding in relation to the borrowing base. The Partnership is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the borrowing base, which fee is also dependent on the amount of the loan outstanding in relation to the borrowing base. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid (a) if the loan amount exceeds the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period) and (b) at the maturity date of July 8, 2019. The loan is secured by substantially all of the assets of the Partnership and its subsidiary. | ||||
The credit agreement contains various affirmative, negative and financial maintenance covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below. | ||||
Financial Covenant | Required Ratio | |||
Ratio of total debt to EBITDAX | Not greater than 4.0 to 1.0 | |||
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 | |||
EBITDAX will be annualized beginning with the quarter ended September 30, 2014 and ending with the quarter ending March 31, 2015 | ||||
The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $250.0 million in the form of senior unsecured notes and, in connection with any such issuance, the reduction of the borrowing base by 25% of the stated principal amount of each such issuance. A borrowing base reduction in connection with such issuance may require a portion of the outstanding principal of the loan to be repaid. | ||||
The lenders may accelerate all of the indebtedness under the Partnership’s credit agreement upon the occurrence and during the continuance of any event of default. The credit agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change of control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. | ||||
Subordinated Note | ||||
Effective September 19, 2013, the Predecessor issued a subordinated note to Diamondback for the principal sum of $440.0 million for a royalty interest acquisition. In connection with the IPO, the subordinated note was converted to equity. The note bore interest at 7.625% per annum. Interest was due and payable monthly in arrears on the first business day of each calendar month. The unpaid principal balance and all accrued interest on the note were due and payable in full on October 1, 2021. Any indebtedness evidenced by this note was subordinate in the right of payment to any indebtedness outstanding under the Diamondback credit agreement. As of March 31, 2014, there was $444.1 million of principal and interest outstanding under this note. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS |
Partnership Agreement | |
In connection with the closing of the IPO, the General Partner and Diamondback entered into the first amended and restated agreement of limited partnership (the “Partnership Agreement”), dated June 23, 2014. | |
The Partnership Agreement requires the Partnership to reimburse the General Partner for all direct and indirect expenses incurred or paid on the Partnership’s behalf and all other expenses allocable to the Partnership or otherwise incurred by the General Partner in connection with operating the Partnership’s business. The Partnership Agreement does not set a limit on the amount of expenses for which the General Partner and its affiliates may be reimbursed. These expenses include salary, bonus, incentive compensation and other amounts paid to persons who perform services for the Partnership or on the Partnership’s behalf and expenses allocated to the General Partner by its affiliates. The General Partner is entitled to determine the expenses that are allocable to the Partnership. For the three months ended March 31, 2015, no expenses were allocated to the Partnership by the General Partner. At March 31, 2015, the Partnership had no outstanding amounts payable to the General Partner. | |
Advisory Services Agreement | |
In connection with the closing of the IPO, the Partnership and General Partner entered into an advisory services agreement (the “Advisory Services Agreement”) with Wexford Capital LP (“Wexford”), Diamondback’s equity sponsor, dated as of June 23, 2014, under which Wexford provides the Partnership and the General Partner with general financial and strategic advisory services related to the Partnership’s business in return for an annual fee of $500,000, plus reasonable out-of-pocket expenses. The Advisory Services Agreement has a term of two years commencing on June 23, 2014, and will continue for additional one-year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. It may be terminated at any time by either party upon 30 days prior written notice. In the event the Partnership terminates the Advisory Services Agreement, the Partnership is obligated to pay all amounts due through the remaining term. In addition, the Partnership has agreed to pay Wexford to-be-negotiated market-based fees approved by the conflict committee of the board of directors of the General Partner for such services as may be provided by Wexford at the Partnership’s request in connection with future acquisitions and divestitures, financings or other transactions in which the Partnership may be involved. The services provided by Wexford under the Advisory Services Agreement do not extend to the Partnership’s day-to-day business or operations. The Partnership has agreed to indemnify Wexford and its affiliates from any and all losses arising out of or in connection with the Advisory Services Agreement except for losses resulting from Wexford’s or its affiliates’ gross negligence or willful misconduct. For the three months ended March 31, 2015, we incurred costs of $125,000, under the Advisory Services Agreement. At March 31, 2015, there were no outstanding amounts payable by the Partnership to Wexford. | |
Tax Sharing | |
In connection with the closing of the IPO, the Partnership entered into a tax sharing agreement (the “Tax Sharing Agreement”) with Diamondback pursuant to which the Partnership will reimburse Diamondback for its share of state and local income and other taxes for which the Partnership’s results are included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on June 23, 2014. The amount of any such reimbursement is limited to the tax the Partnership would have paid had it not been included in a combined group with Diamondback. Diamondback may use its tax attributes to cause its combined or consolidated group, of which the Partnership may be a member for this purpose, to owe less or no tax. In such a situation, the Partnership would reimburse Diamondback for the tax the Partnership would have owed had the tax attributes not been available or used for the Partnership’s benefit, even though Diamondback had no cash tax expense for that period. | |
Shared Services Agreement | |
Effective September 19, 2013, the Predecessor entered into a shared services agreement with Diamondback E&P LLC, a wholly-owned subsidiary of Diamondback. This agreement was terminated in connection with the IPO. Under this agreement, Diamondback E&P LLC provided consulting and administrative services to the Predecessor. The Predecessor incurred a monthly charge for the services of $26,000. For the three months ended March 31, 2014, the Partnership incurred costs under this agreement of $78,000. | |
RELATED PARTY TRANSACTIONS | |
Partnership Agreement | |
In connection with the closing of the IPO, the General Partner and Diamondback entered into the first amended and restated agreement of limited partnership (the “Partnership Agreement”), dated June 23, 2014. | |
The Partnership Agreement requires the Partnership to reimburse the General Partner for all direct and indirect expenses incurred or paid on the Partnership’s behalf and all other expenses allocable to the Partnership or otherwise incurred by the General Partner in connection with operating the Partnership’s business. The Partnership Agreement does not set a limit on the amount of expenses for which the General Partner and its affiliates may be reimbursed. These expenses include salary, bonus, incentive compensation and other amounts paid to persons who perform services for the Partnership or on the Partnership’s behalf and expenses allocated to the General Partner by its affiliates. The General Partner is entitled to determine the expenses that are allocable to the Partnership. For the three months ended March 31, 2015, no expenses were allocated to the Partnership by the General Partner. At March 31, 2015, the Partnership had no outstanding amounts payable to the General Partner. | |
Advisory Services Agreement | |
In connection with the closing of the IPO, the Partnership and General Partner entered into an advisory services agreement (the “Advisory Services Agreement”) with Wexford Capital LP (“Wexford”), Diamondback’s equity sponsor, dated as of June 23, 2014, under which Wexford provides the Partnership and the General Partner with general financial and strategic advisory services related to the Partnership’s business in return for an annual fee of $500,000, plus reasonable out-of-pocket expenses. The Advisory Services Agreement has a term of two years commencing on June 23, 2014, and will continue for additional one-year periods unless terminated in writing by either party at least ten days prior to the expiration of the then current term. It may be terminated at any time by either party upon 30 days prior written notice. In the event the Partnership terminates the Advisory Services Agreement, the Partnership is obligated to pay all amounts due through the remaining term. In addition, the Partnership has agreed to pay Wexford to-be-negotiated market-based fees approved by the conflict committee of the board of directors of the General Partner for such services as may be provided by Wexford at the Partnership’s request in connection with future acquisitions and divestitures, financings or other transactions in which the Partnership may be involved. The services provided by Wexford under the Advisory Services Agreement do not extend to the Partnership’s day-to-day business or operations. The Partnership has agreed to indemnify Wexford and its affiliates from any and all losses arising out of or in connection with the Advisory Services Agreement except for losses resulting from Wexford’s or its affiliates’ gross negligence or willful misconduct. For the three months ended March 31, 2015, we incurred costs of $125,000, under the Advisory Services Agreement. At March 31, 2015, there were no outstanding amounts payable by the Partnership to Wexford. |
UnitBased_Compensation
Unit-Based Compensation | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Unit-Based Compensation | UNIT–BASED COMPENSATION | ||||||||||||||
On June 17, 2014, in connection with the IPO, the board of directors of the General Partner adopted the Viper Energy Partners LP Long Term Incentive Plan (“LTIP”), effective June 17, 2014, for employees, officers, consultants and directors of the General Partner and any of its affiliates, including Diamondback, who perform services for the Partnership. The LTIP provides for the grant of unit options, unit appreciation rights, restricted units, unit awards, phantom units, distribution equivalent rights, cash awards, performance awards, other unit-based awards and substitute awards. A total of 9,144,000 common units has been reserved for issuance pursuant to the LTIP. Common units that are cancelled, forfeited or withheld to satisfy exercise prices or tax withholding obligations will be available for delivery pursuant to other awards. The LTIP is administered by the board of directors of the General Partner or a committee thereof. | |||||||||||||||
For the three months ended March 31, 2015, the Partnership incurred $0.9 million of unit–based compensation. | |||||||||||||||
Unit Options | |||||||||||||||
In accordance with the LTIP, the exercise price of unit options granted may not be less than the market value of the common units at the date of grant. The units issued under the LTIP will consist of new common units of the Partnership. On June 17, 2014, the Partnership granted 2,500,000 unit options to the executive officers of the General Partner. The unit options vest approximately 33% ratably on each of the next three anniversaries of the date of grant. In the event the fair market value per unit as of the exercise date is less than the exercise price per option unit, the vested options will automatically terminate and become null and void as of the exercise date. | |||||||||||||||
The fair value of the unit options on the date of grant is expensed over the applicable vesting period. The Partnership estimates the fair values of unit options granted using a Black-Scholes option valuation model, which requires the Partnership to make several assumptions. At the time of grant the Partnership did not have a history of market prices, thus the expected volatility was determined using the historical volatility for a peer group of companies. The expected term of options granted was determined based on the contractual term of the awards. The risk-free interest rate is based on the U.S. treasury yield curve rate for the expected term of the unit option at the date of grant. The expected dividend yield was based upon projected performance of the Partnership. | |||||||||||||||
2014 | |||||||||||||||
Grant-date fair value | $ | 4.24 | |||||||||||||
Expected volatility | 36 | % | |||||||||||||
Expected dividend yield | 5.9 | % | |||||||||||||
Expected term (in years) | 3 | ||||||||||||||
Risk-free rate | 0.99 | % | |||||||||||||
The following table presents the unit option activity under the LTIP for the three months ended March 31, 2015: | |||||||||||||||
Weighted Average | |||||||||||||||
Unit | Exercise | Remaining | Intrinsic | ||||||||||||
Options | Price | Term | Value | ||||||||||||
(in years) | (in thousands) | ||||||||||||||
Outstanding at December 31, 2014 | 2,500,000 | $ | 26 | ||||||||||||
Granted | — | $ | — | ||||||||||||
Outstanding at March 31, 2015 | 2,500,000 | $ | 26 | 2.22 | $ | — | |||||||||
Vested and Expected to vest at March 31, 2015 | 2,500,000 | $ | 26 | 2.22 | $ | — | |||||||||
Exercisable at March 31, 2015 | — | $ | — | — | $ | — | |||||||||
As of March 31, 2015, the unrecognized compensation cost related to unvested unit options was $7.8 million. Such cost is expected to be recognized over a weighted-average period of 2.2 years. | |||||||||||||||
Phantom Units | |||||||||||||||
Under the LTIP, the board of directors of the General Partner is authorized to issue phantom units to eligible employees. The Partnership estimates the fair values of phantom units as the closing price of the Partnership’s common units on the grant date of the award, which is expensed over the applicable vesting period. Upon vesting the phantom unit entitles the recipient one common unit of the Partnership for each phantom unit. | |||||||||||||||
The following table presents the phantom unit activity under the LTIP for the three months ended March 31, 2015: | |||||||||||||||
Weighted Average | |||||||||||||||
Phantom | Grant-Date | ||||||||||||||
Units | Fair Value | ||||||||||||||
Unvested at December 31, 2014 | 17,776 | $ | 19.51 | ||||||||||||
Granted | — | $ | — | ||||||||||||
Vested | — | $ | — | ||||||||||||
Unvested at March 31, 2015 | 17,776 | $ | 19.51 | ||||||||||||
As of March 31, 2015, the unrecognized compensation cost related to unvested phantom units was $0.3 million. Such cost is expected to be recognized over a weighted-average period of 1.2 years. |
Partners_Capital_and_Partnersh
Partners' Capital and Partnership Distributions | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Equity [Abstract] | ||||
Partners' Capital and Partnership Distributions | PARTNERS’ CAPITAL AND PARTNERSHIP DISTRIBUTIONS | |||
The Partnership has general partner and common unit partnership interests. The general partner interest is a non-economic interest and is not entitled to any cash distributions. | ||||
At March 31, 2015, the Partnership had a total of 79,708,888 common units issued and outstanding, of which 70,450,000 common units were owned by Diamondback, representing approximately 88.4% of the total Partnership common units outstanding. | ||||
The following table summarizes changes in the number of the Partnership’s common units: | ||||
Common Units | ||||
Diamondback Energy, Inc. ownership of common units | 70,450,000 | |||
Common units issued in June 23, 2014 IPO | 5,750,000 | |||
Common units issued in September 19, 2014 public offering | 3,500,000 | |||
Common units vested and issued under the LTIP in 2014 | 8,888 | |||
Balance March 31, 2015 | 79,708,888 | |||
The board of directors of the General Partner has adopted a policy for the Partnership to distribute all available cash generated on a quarterly basis, beginning with the quarter ending September 30, 2014. On February 5, 2015, the board of directors of the General Partner approved a cash distribution attributable to the fourth quarter of 2014 of $0.25 per unit, which was paid on February 27, 2015. This distribution included a total of $17.6 million distributed to Diamondback. Cash distributions will be made to the common unitholders of record on the applicable record date, generally within 60 days after the end of each quarter. Available cash for each quarter will be determined by the board of directors of the General Partner following the end of such quarter. Available cash for each quarter will generally equal Adjusted EBITDA reduced for cash needed for debt service and other contractual obligations and fixed charges and reserves for future operating or capital needs that the board of directors of the General Partner deems necessary or appropriate, if any. |
Earnings_Per_Unit
Earnings Per Unit | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Earnings Per Unit | EARNINGS PER UNIT | ||||
The net income per common unit on the consolidated statements of operations is based on the net income of the Partnership for the three months ended March 31, 2015, since this is the amount of net income that is attributable to the Partnership’s common units. | |||||
The Partnership’s net income is allocated wholly to the common units as the General Partner does not have an economic interest. Payments made to the Partnership’s unitholders are determined in relation to the cash distribution policy described in Note 7—Partners’ Capital and Partnership Distributions. | |||||
Basic net income per common unit is calculated by dividing net income by the weighted-average number of common units outstanding during the period. Diluted net income per common unit gives effect, when applicable, to unvested common units granted under the LTIP. | |||||
Three Months Ended March 31, | |||||
2015 | |||||
(In thousands, except per unit amounts) | |||||
Net income | $5,082 | ||||
Net income per common unit, basic | $0.06 | ||||
Net income per common unit, diluted | $0.06 | ||||
Weighted-average common units outstanding, basic | 79,708 | ||||
Weighted-average common units outstanding, diluted | 79,711 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES |
The Partnership could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS |
On May 1, 2015, the board of directors of the General Partner approved a cash distribution for the first quarter of 2015 of $0.19 per common unit, payable on May 22, 2015, to unitholders of record at the close of business on May 15, 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates |
Certain amounts included in or affecting the Partnership’s financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts the Partnership reports for assets and liabilities and the Partnership’s disclosure of contingent assets and liabilities at the date of the financial statements. | |
The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in the particular circumstances. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas properties and unit–based compensation. | |
New Accounting Pronouncements | New Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers”. ASU 2014-09 supersedes most of the existing revenue recognition requirements in GAAP and requires (i) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and (ii) requires expanded disclosures regarding the nature, amount, timing, and certainty of revenue and cash flows from contracts with customers. The standard will be effective for annual and interim reporting periods beginning after December 15, 2016, with early application not permitted. The standard allows for either full retrospective adoption, meaning the standard is applied to all periods presented in the financial statements, or modified retrospective adoption, meaning the standard is applied only to the most current period presented. The Partnership is currently evaluating the impact, if any, that the adoption of ASU 2014-09 will have on the Partnership’s financial position, results of operations, and liquidity. | |
In April 2015, the Financial Accounting Standards Board issued ASU 2015-03, “Interest—Imputation of Interest”. ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from that debt liability, consistent with the presentation of a debt discount to simplify the presentation of debt issuance costs. The standard will be effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. Early application will be permitted for financial statements that have not previously been issued. |
Oil_and_Natural_Gas_Interests_
Oil and Natural Gas Interests (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Extractive Industries [Abstract] | |||||||||
Aggregate capitalized costs related to oil and natural gas production activities | Oil and natural gas interests include the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Oil and natural gas interests: | |||||||||
Subject to depletion | $ | 435,733 | $ | 419,641 | |||||
Not subject to depletion—acquisition costs | |||||||||
Incurred in 2014 | 47,314 | 48,266 | |||||||
Incurred in 2013 | 27,952 | 43,178 | |||||||
Total not subject to depletion | 75,266 | 91,444 | |||||||
Gross oil and natural gas interests | 510,999 | 511,085 | |||||||
Less accumulated depletion | (41,700 | ) | (32,800 | ) | |||||
Oil and natural gas interests, net | $ | 469,299 | $ | 478,285 | |||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Debt Disclosure [Abstract] | ||||
Schedule of financial covenants | These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, dividends and distributions, transactions with affiliates and entering into certain swap agreements and require the maintenance of the financial ratios described below. | |||
Financial Covenant | Required Ratio | |||
Ratio of total debt to EBITDAX | Not greater than 4.0 to 1.0 | |||
Ratio of current assets to liabilities, as defined in the credit agreement | Not less than 1.0 to 1.0 | |||
EBITDAX will be annualized beginning with the quarter ended September 30, 2014 and ending with the quarter ending March 31, 2015 |
UnitBased_Compensation_Tables
Unit-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2015 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Schedule of valuation assumptions | |||||||||||||||
2014 | |||||||||||||||
Grant-date fair value | $ | 4.24 | |||||||||||||
Expected volatility | 36 | % | |||||||||||||
Expected dividend yield | 5.9 | % | |||||||||||||
Expected term (in years) | 3 | ||||||||||||||
Risk-free rate | 0.99 | % | |||||||||||||
Schedule of unit option activity | The following table presents the unit option activity under the LTIP for the three months ended March 31, 2015: | ||||||||||||||
Weighted Average | |||||||||||||||
Unit | Exercise | Remaining | Intrinsic | ||||||||||||
Options | Price | Term | Value | ||||||||||||
(in years) | (in thousands) | ||||||||||||||
Outstanding at December 31, 2014 | 2,500,000 | $ | 26 | ||||||||||||
Granted | — | $ | — | ||||||||||||
Outstanding at March 31, 2015 | 2,500,000 | $ | 26 | 2.22 | $ | — | |||||||||
Vested and Expected to vest at March 31, 2015 | 2,500,000 | $ | 26 | 2.22 | $ | — | |||||||||
Exercisable at March 31, 2015 | — | $ | — | — | $ | — | |||||||||
Partners_Capital_and_Partnersh1
Partners' Capital and Partnership Distributions (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Equity [Abstract] | ||||
Schedule of changes in common units | The following table summarizes changes in the number of the Partnership’s common units: | |||
Common Units | ||||
Diamondback Energy, Inc. ownership of common units | 70,450,000 | |||
Common units issued in June 23, 2014 IPO | 5,750,000 | |||
Common units issued in September 19, 2014 public offering | 3,500,000 | |||
Common units vested and issued under the LTIP in 2014 | 8,888 | |||
Balance March 31, 2015 | 79,708,888 | |||
Earnings_Per_Unit_Tables
Earnings Per Unit (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Earnings Per Share [Abstract] | |||||
Schedule of basic and diluted net income per common unit | |||||
Three Months Ended March 31, | |||||
2015 | |||||
(In thousands, except per unit amounts) | |||||
Net income | $5,082 | ||||
Net income per common unit, basic | $0.06 | ||||
Net income per common unit, diluted | $0.06 | ||||
Weighted-average common units outstanding, basic | 79,708 | ||||
Weighted-average common units outstanding, diluted | 79,711 | ||||
Supplemental_Information_on_Oi
Supplemental Information on Oil and Natural Gas Operations (Unaudited) Supplemental Information on Oil and Natural Gas Operations (Unaudited) (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Extractive Industries [Abstract] | |||||||||
Aggregate capitalized costs related to oil and natural gas production activities | Oil and natural gas interests include the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Oil and natural gas interests: | |||||||||
Subject to depletion | $ | 435,733 | $ | 419,641 | |||||
Not subject to depletion—acquisition costs | |||||||||
Incurred in 2014 | 47,314 | 48,266 | |||||||
Incurred in 2013 | 27,952 | 43,178 | |||||||
Total not subject to depletion | 75,266 | 91,444 | |||||||
Gross oil and natural gas interests | 510,999 | 511,085 | |||||||
Less accumulated depletion | (41,700 | ) | (32,800 | ) | |||||
Oil and natural gas interests, net | $ | 469,299 | $ | 478,285 | |||||
Organization_and_Basis_of_Pres1
Organization and Basis of Presentation (Details) (USD $) | 3 Months Ended | 0 Months Ended | 6 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Jun. 23, 2014 | Sep. 19, 2014 | Dec. 31, 2014 |
General Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Percent of General Partner interest | 100.00% | |||
IPO [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units issued in public offering | 5,750,000 | |||
Price per common unit (in dollars per unit) | $26 | |||
Proceeds from sale of common units, net of offering expenses and underwriting discounts and commissions | $137.20 | |||
Over-Allotment Option [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units issued in public offering | 750,000 | |||
Public Offering [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units issued in public offering | 3,500,000 | |||
Price per common unit (in dollars per unit) | $28.50 | |||
Proceeds from sale of common units, net of offering expenses and underwriting discounts and commissions | 94.8 | |||
Diamondback Energy, Inc. [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Distribution payable | 11.6 | |||
Diamondback Energy, Inc. [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Conversion of membership interests to common units | 70,450,000 | |||
vnom_DistributionToRelatedParty | $148.80 | |||
Percent of limited partnership interest | 88.00% |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Oil and Natural Gas Properties, Capitalized Interest, and Debt Issuance Costs (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accounting Policies [Abstract] | ||
Depletion of oil and gas properties | $8,901 | $5,567 |
Interest costs capitalized | $0 | $2,927 |
Oil_and_Natural_Gas_Interests_1
Oil and Natural Gas Interests (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||||
Subject to depletion | $419,641 | $287,732 | ||
Total not subject to depletion | 75,266 | 91,444 | [1] | 160,302 |
Gross oil and natural gas interests | 510,999 | 511,085 | 448,034 | |
Less accumulated depletion | -41,700 | -32,800 | -5,199 | |
Oil and natural gas interests, net | 469,299 | 478,285 | 442,835 | |
Incurred in 2014 [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total not subject to depletion | 48,266 | 0 | ||
Incurred in 2013 [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Total not subject to depletion | $43,178 | $160,302 | ||
Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of years until unevaluated properties are included in full cost pool | 3 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of years until unevaluated properties are included in full cost pool | 5 years | |||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Debt_Credit_Facility_Details
Debt - Credit Facility (Details) (Wells Fargo [Member], Revolving Credit Agreement [Member], USD $) | 3 Months Ended | |
Mar. 31, 2015 | Jul. 08, 2014 | |
redetermindation | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $500,000,000 | |
Number of additional redeterminations that may be requested | 3 | |
Period of redeterminations | 12 months | |
Current borrowing capacity | 110,000,000 | |
Amount outstanding under credit facility | $0 | |
Federal Funds Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
LIBOR, 3-month [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.00% | |
Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee on the unused portion of the borrowing base | 0.38% | |
Minimum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Minimum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Commitment fee on the unused portion of the borrowing base | 0.50% | |
Maximum [Member] | Base Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Maximum [Member] | LIBOR [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.50% |
Debt_Financial_Covenants_Detai
Debt - Financial Covenants (Details) (Wells Fargo [Member], Revolving Credit Agreement [Member], USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Wells Fargo [Member] | Revolving Credit Agreement [Member] | ||
Line of Credit Facility [Line Items] | ||
Ratio of total debt to EBITDAX, not greater than 4.0 | 4 | |
Ratio of current assets to liabilities, not less than 1.0 | 1 | |
Maximum issuance of unsecured debt | $250,000,000 | |
Reduction of borrowing base | 25.00% |
Debt_Subordinated_Note_Details
Debt - Subordinated Note (Details) (Diamondback Energy, Inc. [Member], Subordinated Note [Member], USD $) | Sep. 19, 2013 |
Diamondback Energy, Inc. [Member] | Subordinated Note [Member] | |
Debt Instrument [Line Items] | |
Principal amount | $440,000,000 |
Stated interest rate | 7.63% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Wells Fargo [Member], Revolving Credit Agreement [Member], USD $) | Mar. 31, 2015 |
Wells Fargo [Member] | Revolving Credit Agreement [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Amount outstanding under credit facility | $0 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 22, 2014 | |
General Partner [Member] | Partnership Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred costs for transactions with related party | $0 | |||
Amounts owed to related party | 0 | |||
Wexford [Member] | Advisory Services Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Advisory services agreement, annual fee | 500,000 | |||
Term of advisory services agreement | 2 years | |||
Renewal term of advisory services agreement | 1 year | |||
Minimum period for cancellation of additional one-year periods | 10 days | |||
Agreement termination, written notice period | 30 days | |||
Incurred costs for transactions with related party | 125,000 | |||
Amounts owed to related party | 0 | |||
Diamondback E&P LLC [Member] | Shared Service Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Incurred costs for transactions with related party | 78,000 | |||
Predecessor [Member] | Diamondback E&P LLC [Member] | Shared Service Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Monthly expense for transaction with related party | $26,000 |
UnitBased_Compensation_Additio
Unit-Based Compensation - Additional Disclosures (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Jun. 17, 2014 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity-based compensation | $939 | ||
Unrecognized compensation cost related to unvested unit options | $7,822 | ||
LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common units reserved for issuance | 9,144,000 | ||
Unit options granted | 0 | ||
Executive Officers of General Partner [Member] | LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unit options granted | 2,500,000 | ||
Unit Options [Member] | Executive Officers of General Partner [Member] | LTIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage for next three anniversaries | 33.00% |
UnitBased_Compensation_Valuati
Unit-Based Compensation - Valuation Assumptions (Details) (Unit Options [Member], USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Unit Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant-date fair value (in dollars per share) | $4.24 |
Expected volatility | 36.00% |
Expected dividend yield | 5.90% |
Expected term (in years) | 3 years |
Risk-free rate | 0.99% |
UnitBased_Compensation_Unit_Op
Unit-Based Compensation - Unit Option Activity (Details) (LTIP [Member], USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
LTIP [Member] | ||
Number of Options | ||
Outstanding at December 31, 2013 (units) | 2,500,000 | |
Granted (units) | 0 | |
Outstanding at September 30, 2014 (units) | 2,500,000 | 2,500,000 |
Vested and Expected to vest at September 30, 2014 (units) | 2,500,000 | |
Exercisable at September 30, 2014 (units) | 0 | |
Weighted Average Exercise Price | ||
Outstanding at December 31, 2013 (in dollars per unit) | $26 | |
Granted (in dollars per unit) | $0 | |
Outstanding at September 30, 2014 (in dollars per unit) | $26 | $26 |
Vested and Expected to vest at September 30, 2014 (in dollars per unit) | $26 | |
Exercisable at September 30, 2014 (in dollars per unit) | $0 | |
Outstanding at end of period, remaining term | 2 years 2 months 18 days | |
Vested and expected to vest at end of period, remaining term | 2 years 2 months 18 days | |
Exercisable at end of period, remaining term | 0 years | |
Outstanding at end of period, intrinsic value | $0 | |
Vested and expected to vest at end of period, intrinsic value | 0 | |
Exercisable at end of period, intrinsic value | $0 |
UnitBased_Compensation_Phantom
Unit-Based Compensation Phantom Units (Details) (USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $0.30 |
Partners_Capital_and_Partnersh2
Partners' Capital and Partnership Distributions (Details) | 3 Months Ended | 0 Months Ended | ||
Mar. 31, 2015 | Jun. 23, 2014 | Sep. 19, 2014 | Dec. 31, 2014 | |
Limited Partners' Capital Account [Line Items] | ||||
Common units issued | 79,708,888 | 79,708,888 | ||
Common units outstanding | 79,708,888 | 79,708,888 | ||
Cash Distribution [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Cash distributions, distribution period after quarter end | 60 days | |||
Diamondback Energy, Inc. [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units of partnership interest | 70,450,000 | 70,450,000 | ||
Percent of limited partnership interest | 88.00% | |||
IPO [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units issued in public offering | 5,750,000 | |||
Public Offering [Member] | Limited Partner [Member] | ||||
Limited Partners' Capital Account [Line Items] | ||||
Units issued in public offering | 3,500,000 |
Partners_Capital_and_Partnersh3
Partners' Capital and Partnership Distributions Partnership Distributions (Details) (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Distribution Made to Limited Partner [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $0.25 |
Earnings_Per_Unit_Details
Earnings Per Unit (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income | $5,082 | $3,853 |
Net income per common unit, basic (dollars per unit) | $0.06 | |
Net income per common unit, diluted (dollars per unit) | $0.06 | |
Weighted-average common units outstanding, basic | 79,708 | |
Weighted-average common units outstanding, diluted | 79,711 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Line Items] | |
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $0.25 |
Supplemental_Information_on_Oi1
Supplemental Information on Oil and Natural Gas Operations (Unaudited) Aggregate Capitalized Costs Related to Oil and Natural Gas Production Activities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Oil and natural gas interests: | ||
Proved properties | $419,641 | $287,732 |
Supplemental_Information_on_Oi2
Supplemental Information on Oil and Natural Gas Operations (Unaudited) Results of Operation from Oil and Natural Gas Producing Activities (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Extractive Industries [Abstract] | ||
Royalty income | $16,545 | $15,853 |
Production and ad valorem taxes | -1,328 | -921 |
Depletion of Oil and Gas Properties | ($8,901) | ($5,567) |
Uncategorized_Items
Uncategorized Items | |
[vnom_Vnom_LimitedPartnersCapitalAccountDistributionAmountRelatedParty] | 17,612,000 |