Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | ||
Jun. 30, 2018 | Aug. 03, 2018 | Dec. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-Q | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q2 | ||
Entity Registrant Name | Viper Energy Partners LP | ||
Entity Central Index Key | 1,602,065 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Units, Units Outstanding | 51,550,777 | ||
Class B Units Outstanding | 72,418,500 | 72,418,500 | 0 |
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 32,886 | $ 24,197 |
Royalty income receivable | 31,083 | 25,754 |
Royalty income receivable—related party | 8,137 | 5,142 |
Other current assets | 295 | 355 |
Total current assets | 72,401 | 55,448 |
Property: | ||
Oil and natural gas interests, full cost method of accounting ($683,870 and $514,724 excluded from depletion at June 30, 2018 and December 31, 2017, respectively) | 1,359,596 | 1,103,897 |
Land | 1,001 | 0 |
Accumulated depletion and impairment | (214,252) | (189,466) |
Property and equipment, net | 1,146,345 | 914,431 |
Funds held in escrow | 0 | 6,304 |
Other assets | 25,560 | 36,854 |
Deferred tax asset | 72,049 | 0 |
Total assets | 1,316,355 | 1,013,037 |
Current liabilities: | ||
Accounts payable | 9 | 2,960 |
Other accrued liabilities | 3,048 | 2,669 |
Total current liabilities | 3,057 | 5,629 |
Long-term debt | 350,000 | 93,500 |
Total liabilities | 353,057 | 99,129 |
Commitments and contingencies | ||
Unitholders’ equity: | ||
General partner | 1,000 | 0 |
Common units (41,470,777 units issued and outstanding as of June 30, 2018 and 113,882,045 units issued and outstanding as of December 31, 2017 ) | 386,807 | 913,908 |
Class B units (72,418,500 units issued and outstanding as of June 30, 2018 and 0 units issued and outstanding as of December 31, 2017) | 990 | 0 |
Total unitholders’ equity | 388,797 | 913,908 |
Noncontrolling interest | 574,501 | 0 |
Total liabilities and unitholders’ equity | $ 1,316,355 | $ 1,013,037 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Aug. 03, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | |||
Oil and natural gas interests, based on the full cost method of accounting, amount excluded from depletion | $ 683,870 | $ 514,724 | |
Common units issued | 41,470,777 | 113,882,045 | |
Common units outstanding | 41,470,777 | 113,882,045 | |
Class B Units Issued | 72,418,500 | 0 | |
Class B Units Outstanding | 72,418,500 | 72,418,500 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating income: | ||||
Revenue | $ 75,406 | $ 36,622 | $ 137,849 | $ 70,274 |
Lease bonus income | 928 | 689 | 928 | 2,291 |
Other Operating Income | 58 | 0 | 108 | 0 |
Costs and expenses: | ||||
Production and ad valorem taxes | 4,867 | 2,773 | 9,106 | 4,843 |
Depletion | 13,260 | 9,672 | 24,785 | 17,519 |
General and administrative expenses | 2,210 | 1,554 | 4,921 | 3,696 |
Total costs and expenses | 20,480 | 14,143 | 39,220 | 26,345 |
Income from operations | 54,926 | 22,479 | 98,629 | 43,929 |
Other income (expense): | ||||
Interest expense, net | (3,252) | (643) | (5,350) | (1,255) |
Gain on revaluation of investment | 4,465 | 0 | 5,364 | 0 |
Other income, net | 447 | 313 | 839 | 127 |
Total other income (expense), net | 1,660 | (330) | 853 | (1,128) |
Income before income taxes | 56,586 | 22,149 | 99,482 | 42,801 |
Benefit from income taxes | (71,878) | 0 | (71,878) | 0 |
Net income | 128,464 | 22,149 | 171,360 | 42,801 |
Net income attributable to non-controlling interest | 29,060 | 0 | 29,060 | 0 |
Net income attributable to Viper Energy Partners LP | $ 99,404 | $ 22,149 | $ 142,300 | $ 42,801 |
Net income attributable to common limited partners per unit: | ||||
Basic (dollars per unit) | $ 1.36 | $ 0.23 | $ 1.52 | $ 0.44 |
Diluted (dollars per unit) | $ 1.35 | $ 0.23 | $ 1.52 | $ 0.44 |
Weighted average number of limited partner units outstanding: | ||||
Basic (in units) | 73,336 | 97,677 | 93,506 | 96,377 |
Diluted (in units) | 73,427 | 97,677 | 93,612 | 96,382 |
Royalty income | ||||
Operating income: | ||||
Revenue | $ 74,420 | $ 35,933 | $ 136,813 | $ 67,983 |
Gathering and transportation | ||||
Costs and expenses: | ||||
Gathering and transportation | $ 143 | $ 144 | $ 408 | $ 287 |
Statement of Consolidated Unith
Statement of Consolidated Unitholders' Equity - USD ($) $ in Thousands | Total | General Partner [Member] | Non-Controlling Interest [Member] | Common Units [Member] | Common Units [Member]Limited Partner [Member] | Class B Units [Member] | Class B Units [Member]Limited Partner [Member] |
Partners' Capital including noncontrolling interest at Dec. 31, 2016 | $ 547,898 | $ 0 | $ 0 | $ 547,898 | $ 0 | ||
Common Stock, Shares, Outstanding at Dec. 31, 2016 | 87,800,000 | ||||||
Class B Units Outstanding at Dec. 31, 2016 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Units sold in public offering | 9,775,000 | ||||||
Net proceeds from the issuance of common units | 147,492 | 0 | 0 | $ 147,492 | $ 0 | ||
Common units issued for acquisition, units | 175,000 | ||||||
Common units issued for acquisition | 3,050 | 0 | 0 | $ 3,050 | 0 | ||
Unit-based compensation, units | 14,000 | ||||||
Unit-based compensation | 1,537 | 0 | 0 | $ 1,537 | 0 | ||
Distributions to public | (14,123) | 0 | 0 | (14,123) | 0 | ||
Distributions to Diamondback | (40,572) | 0 | 0 | (40,572) | 0 | ||
Net income | 42,801 | 0 | 0 | $ 42,801 | $ 0 | ||
Common Stock, Shares, Outstanding at Jun. 30, 2017 | 97,764,000 | ||||||
Class B Units Outstanding at Jun. 30, 2017 | 0 | ||||||
Partners' Capital including noncontrolling interest at Jun. 30, 2017 | 688,083 | 0 | 0 | $ 688,083 | $ 0 | ||
Partners' Capital including noncontrolling interest at Dec. 31, 2017 | $ 913,908 | 0 | 0 | $ 913,908 | $ 0 | ||
Common Stock, Shares, Outstanding at Dec. 31, 2017 | 113,882,000 | ||||||
Class B Units Outstanding at Dec. 31, 2017 | 0 | 0 | |||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Unit exchange related to tax conversion | $ 2,000 | 1,000 | 545,441 | $ (545,441) | $ 1,000 | ||
Unit exchange related to tax conversion, units | (73,150,000) | (73,150,000) | 73,150,000 | 73,150,000 | |||
Recapitalization related to tax conversion | $ (10) | 0 | 0 | $ 0 | $ (10) | ||
Recapitalization related to tax conversion, units | 731,500 | 732,000 | (731,500) | (732,000) | |||
Unit-based compensation, units | 7,232 | 7,000 | |||||
Unit-based compensation | $ 1,740 | 0 | 0 | $ 1,740 | $ 0 | ||
Distributions to public | (38,288) | 0 | 0 | (38,288) | 0 | ||
Distributions to Diamondback | (68,761) | 0 | 0 | (68,761) | 0 | ||
Net income | $ 171,360 | 0 | 29,060 | $ 142,300 | $ 0 | ||
Common Stock, Shares, Outstanding at Jun. 30, 2018 | 41,471,000 | ||||||
Class B Units Outstanding at Jun. 30, 2018 | 72,418,500 | 72,419,000 | |||||
Partners' Capital including noncontrolling interest at Jun. 30, 2018 | $ 963,298 | 1,000 | 574,501 | $ 386,807 | $ 990 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||
Impact of adoption of ASU 2016-01 | $ (18,651) | $ 0 | $ 0 | $ (18,651) | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 171,360 | $ 42,801 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Benefit from deferred income taxes | (72,049) | 0 |
Depletion | 24,785 | 17,519 |
Gain on revaluation of investment | (5,364) | 0 |
Amortization of debt issuance costs | 322 | 280 |
Non-cash unit-based compensation | 1,740 | 1,537 |
Changes in operating assets and liabilities: | ||
Restricted cash | 0 | 500 |
Royalty income receivable | (5,329) | (1,055) |
Royalty income receivable—related party | (2,995) | 246 |
Accounts payable and other accrued liabilities | (440) | (335) |
Income tax payable | 171 | 0 |
Other current assets | 11 | (46) |
Net cash provided by operating activities | 112,212 | 61,447 |
Cash flows from investing activities: | ||
Acquisition of oil and natural gas interests | (253,056) | (122,679) |
Proceeds from sale of assets | 441 | 0 |
Proceeds from the sale of investments | 125 | 0 |
Net cash used in investing activities | (252,490) | (122,679) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 256,500 | 104,000 |
Repayment on credit facility | 0 | (143,000) |
Debt issuance costs | (440) | (180) |
Proceeds from public offerings | 0 | 147,725 |
Public offering costs | (2,034) | (217) |
Contributions by members | 2,000 | 0 |
Distributions to partners | (107,059) | (54,695) |
Net cash provided by financing activities | 148,967 | 53,633 |
Net increase (decrease) in cash | 8,689 | (7,599) |
Cash and cash equivalents at beginning of period | 24,197 | 9,213 |
Cash and cash equivalents at end of period | 32,886 | 1,614 |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 5,028 | $ 1,059 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
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. (“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 and Eagle Ford Shale. 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. Recapitalization, Tax Status Election and Related Transactions In March 2018, the Board of Directors of Viper Energy Partners GP LLC (the “General Partner”) unanimously approved a change of the Partnership’s federal income tax status from that of a pass-through partnership to that of a taxable entity via a “check the box” election. In connection with making this election, on May 9, 2018 the Partnership (i) amended and restated its First Amended and Restated Partnership Agreement, (ii) amended and restated the First Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC (the “Operating Company”), (iii) amended and restated its existing registration rights agreement with Diamondback and (iv) entered into an exchange agreement with Diamondback, the General Partner and the Operating Company. Simultaneously with the effectiveness of these agreements, Diamondback delivered and assigned to the Partnership the 73,150,000 common units Diamondback owned in exchange for (i) 73,150,000 of the Partnership’s newly-issued Class B units and (ii) 73,150,000 newly-issued units of the Operating Company pursuant to the terms of a Recapitalization Agreement dated March 28, 2018, as amended as of May 9, 2018 (the “Recapitalization Agreement”). Immediately following that exchange, the Partnership continued to be the managing member of the Operating Company, with sole control of its operations, and owned approximately 36% of the outstanding units issued by the Operating Company, and Diamondback owned the remaining approximately 64% of the outstanding units issued by the Operating Company. The Operating Company units and the Partnership’s Class B units owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). On May 10, 2018, the change in the Partnership’s income tax status became effective. On that date, pursuant to the terms of the Recapitalization Agreement, (i) the General Partner made a cash capital contribution of $1.0 million to the Partnership in respect of its general partner interest and (ii) Diamondback made a cash capital contribution of $1.0 million to the Partnership in respect of the Class B units. Diamondback, as the holder of the Class B units, and the General Partner, as the holder of the general partner interest, are entitled to receive an 8% annual distribution on the outstanding amount of these capital contributions, payable quarterly, as a return on this invested capital. On May 10, 2018, Diamondback also exchanged 731,500 Class B units and 731,500 units in the Operating Company for 731,500 common units of the Partnership and a cash amount of $10,000 representing a proportionate return of the $1.0 million invested capital in respect of the Class B units. The General Partner continues to serve as the Partnership’s general partner and Diamondback continues to control the Partnership. After the effectiveness of the tax status election and the completion of related transactions, the Partnership’s minerals business continues to be conducted through the Operating Company, which continues to be taxed as a partnership for federal and state income tax purposes. This structure is anticipated to provide significant benefits to the Partnership’s business, including operational effectiveness, acquisition and disposition transactional planning flexibility and income tax efficiency. For additional information regarding the tax status election and related transactions, please refer to the Partnership’s Definitive Information Statement on Schedule 14C filed with the SEC on April 17, 2018 and the Partnership’s Current Report on Form 8-K filed with the SEC on May 15, 2018. Basis of Presentation The accompanying consolidated financial statements and related notes thereto were prepared in conformity with GAAP. All material intercompany balances and transactions are eliminated in consolidation. These financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2017 , which contains a summary of the Partnership’s significant accounting policies and other disclosures. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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 interests and unit–based compensation. Investments The Partnership has an equity interest in a limited partnership that is so minor that the Partnership has no influence over the limited partnership’s operating and financial policies. This interest was acquired during the year ended December 31, 2014 and is accounted for under the cost method. Effective January 1, 2018, the Partnership adopted Accounting Standards Update 2016-01 which requires the Partnership to measure this investment at fair value which resulted in a downward adjustment of $18.7 million to record the impact of this adoption. For the three and six months ended June 30, 2018 , the Partnership recorded a gain of $4.5 million and $5.4 million , respectively, which then increased the Partnership’s investment balance to $20.4 million , which is included in other assets in the accompanying consolidated balance sheets. Income Taxes The Partnership uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. The Partnership is subject to margin tax in the state of Texas pursuant to a tax sharing agreement with Diamondback, as discussed further in Note 7. The Partnership’s 2015 through 2017 tax years, periods during which the Partnership was organized as a pass-through entity for income tax purposes, remain open to examination by tax authorities. As of June 30, 2018 and June 30, 2017, the Partnership had no unrecognized tax benefits that would have a material impact on the effective tax rate. The Partnership is continuing its practice of recognizing interest and penalties related to income tax matters as interest expense and general and administrative expenses, respectively. During the years ended June 30, 2018 , 2017 and 2016 , there was no interest or penalties associated with uncertain tax positions recognized in the Partnership’s consolidated financial statements. New Accounting Pronouncements Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements. This standard included a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminated industry-specific revenue guidance, required enhanced disclosures about revenue, provided guidance for transactions that were not previously addressed comprehensively and improved guidance for multiple-element arrangements. The Partnership adopted this standard effective January 1, 2018 using the modified retrospective method. The Partnership utilized a bottom-up approach to analyze the impact of the new standard by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts and the impact of adopting this standard on its total revenues, operating income and the Partnership’s consolidated balance sheet. The adoption of this standard did not result in a cumulative-effect adjustment. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Partnership adopted this standard effective January 1, 2018 by means of a negative cumulative-effect adjustment totaling $18.7 million . In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-18, “Statement of Cash Flows - Restricted Cash”. This update affects entities that have restricted cash or restricted cash equivalents. The Partnership adopted this update effective January 1, 2018. The adoption of this update did not have an effect on the presentation on the Statement of Cash Flows. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Partnership adopted this update prospectively effective January 1, 2018. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As of June 30, 2018 , the Partnership was not the lessor or lessee of any leases other than mineral leases which were excluded from the scope of this Accounting Standards Update. Therefore, the Partnership believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Partnership believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Partnership does not believe the adoption of this standard will have an impact on its financial statements since it does not have a history of credit losses. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Partnership is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Revenue from Contract with Customer [Text Block] | Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained by the operator of the wells in which the Partnership owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index. Royalty income from oil, natural gas and natural gas liquids sales The Partnership’s oil, natural gas and natural gas liquids sales contracts are generally structured whereby the producer of the properties in which the Partnership owns a royalty interest sells the Partnership’s proportionate share of oil, natural gas and natural gas liquids production to the purchaser and the Partnership collects its percentage royalty based on the revenue generated by the sale of the oil, natural gas and natural gas liquids. In this scenario, the Partnership recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue. Transaction price allocated to remaining performance obligations The Partnership’s right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligation under any of our royalty income contracts. Contract balances Under the Partnership’s royalty income contracts, it would have the right to receive royalty income from the producer once production has occurred, at which point payment is unconditional. Accordingly, the Partnership’s royalty income contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Partnership records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Partnership is required to estimate the amount of royalty income to be received based upon the Partnership’s interest. The Partnership records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the producer. The Partnership has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months ended June 30, 2018 , revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Partnership believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2018 | |
Business Acquisition [Line Items] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ACQUISITIONS During the six months ended June 30, 2018 , the Partnership acquired mineral interests underlying 1,891 net royalty acres for an aggregate purchase price of approximately $260.8 million and, as of June 30, 2018 , had mineral interests underlying 11,451 net royalty acres. The Partnership funded these acquisitions with cash on hand and borrowings under its revolving credit facility. During the six months ended June 30, 2017 , the Partnership acquired mineral interests underlying 1,092 net royalty acres for an aggregate purchase price of approximately $125.7 million and, as of June 30, 2017 , had mineral interests underlying 7,506 net royalty acres. The Partnership funded these acquisitions with cash on hand, borrowings under its revolving credit facility, a portion of the net proceeds from its January 2017 offering of common units and the issuance of 174,513 common units to the seller in a private placement in May 2017. |
Oil and Natural Gas Interests
Oil and Natural Gas Interests | 6 Months Ended |
Jun. 30, 2018 | |
Extractive Industries [Abstract] | |
Oil and Natural Gas Interests | OIL AND NATURAL GAS INTERESTS Oil and natural gas interests include the following: June 30, December 31, 2018 2017 (in thousands) Oil and natural gas interests: Subject to depletion $ 675,726 $ 589,173 Not subject to depletion 683,870 514,724 Gross oil and natural gas interests 1,359,596 1,103,897 Accumulated depletion and impairment (214,252 ) (189,466 ) Oil and natural gas interests, net 1,145,344 914,431 Land 1,001 — Property and equipment, net of accumulated depletion and impairment $ 1,146,345 $ 914,431 Balance of acquisition costs not subject to depletion: Incurred in 2018 $ 204,782 Incurred in 2017 284,371 Incurred in 2016 158,157 Incurred in 2015 28,656 Incurred in 2014 7,904 Total not subject to depletion $ 683,870 Costs associated with unevaluated interests 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. Under the full cost method of accounting, the Partnership is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the proved oil and gas interests. Net capitalized costs are limited to the lower of unamortized cost or the cost center ceiling. The cost center ceiling is defined as the sum of (a) estimated future net revenues, discounted at 10% per annum, from proved reserves, based on the trailing 12-month unweighted average of the first-day-of-the-month price, adjusted for any contract provisions or financial derivatives, if any, that hedge the Partnership’s oil and natural gas revenue, (b) the cost of interests not being amortized, if any, and (c) the lower of cost or market value of unproved interests included in the cost being amortized. If the net book value exceeds the ceiling, an impairment or non-cash write down is required. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Credit Agreement-Wells Fargo Bank On July 8, 2014, the Partnership entered into a secured revolving credit agreement as amended and restated, (the “credit facility”) with Wells Fargo, as administrative agent, certain other lenders, and the Partnership’s consolidated subsidiary, Viper Energy Partners LLC (the “Operating Company”), as guarantor. On May 8, 2018, the Operating Company assumed all liabilities as borrower under the credit agreement and the Partnership became a guarantor of the credit agreement. On July 20, 2018, the Operating Company, the Partnership, Wells Fargo and the other lenders amended and restated the credit agreement to reflect the assumption by the Operating Company. The credit agreement, as amended and restated, provides for a revolving credit facility in the maximum credit amount of $2.0 billion and a borrowing base based on its oil and natural gas reserves and other factors (the “borrowing base”) of $475.0 million , subject to scheduled semi-annual and other borrowing base redeterminations. The borrowing base is scheduled to be re-determined semi-annually with effective dates of May 1st and November 1st. In addition, the Operating Company and Wells Fargo each may request up to three interim redeterminations of the borrowing base during any 12 -month period. As of June 30, 2018 , the borrowing base was set at $475.0 million , and there was $350.0 million of outstanding borrowings and $125.0 million available for future borrowings under the credit facility. The outstanding borrowings under the credit agreement bear interest at a rate elected by the Operating Company that is equal to an alternative base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.50% and 3 -month LIBOR plus 1.0% ) or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.75% to 1.75% per annum in the case of the alternative base rate and from 1.75% to 2.75% per annum in the case of LIBOR, in each case depending on the amount of loans and letters of credit outstanding in relation to the commitment, which is defined as the lesser of the maximum credit amount and the borrowing base. The Operating Company is obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment, which fee is also dependent on the amount of loans and letters of credit outstanding in relation to the commitment. Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be repaid (a) to the extent the loan amount exceeds the commitment or the borrowing base, whether due to a borrowing base redetermination or otherwise (in some cases subject to a cure period), (b) in an amount equal to the net cash proceeds from the sale of property when a borrowing base deficiency or event of default exists under the credit agreement and (c) at the maturity date of November 1, 2022. The loan is secured by substantially all of the assets of the Partnership and the Operating Company. 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 net debt to EBITDAX, as defined in the credit agreement 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 The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $400.0 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. As of June 30, 2018 , the Operating Company was in compliance with the financial covenants under its credit agreement. The lenders may accelerate all of the indebtedness under the revolving credit facility 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. With certain specified exceptions, the terms and provisions of the credit agreement generally may be amended with the consent of the lenders holding a majority of the outstanding loans or commitments to lend. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Partnership Agreement The second amended and restated agreement of limited partnership, dated as of May 9, 2018, as amended as of May 10, 2018 (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 and six months ended June 30, 2018 and 2017 , the General Partner allocated $0.6 million and $1.2 million , respectively, to the Partnership. Advisory Services Agreement In connection with the closing of the IPO, the Partnership and General Partner entered into an advisory services agreement with Wexford Capital LP (“Wexford”) dated as of June 23, 2014 (the “Advisory Services Agreement”), 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 $0.5 million , plus reasonable out-of-pocket expenses. The Advisory Services Agreement had an initial term of two years commencing on June 23, 2014, and continues 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. For the three and six months ended June 30, 2018 and 2017 , the Partnership did no t pay any amounts under the Advisory Services Agreement. Tax Sharing In connection with the closing of the IPO, the Partnership entered into a tax sharing agreement with Diamondback, dated June 23, 2014, pursuant to which the Partnership agreed to 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 agreed to 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. For the three and six months ended June 30, 2018 , the Partnership accrued state income tax expense of $0.2 million for its share of Texas margin tax for which the Partnership’s results are included in a combined tax return filed by Diamondback. Lease Bonus During the three and six months ended June 30, 2018 , Diamondback did no t pay the Partnership any lease bonus payments. During the three months ended June 30, 2017 , Diamondback paid the Partnership $0.1 million in lease bonus payments to extend the term of one lease, reflecting an average bonus of $10,000 per acre. During the six months ended June 30, 2017 , Diamondback paid the Partnership $0.1 million in lease bonus payments to extend the term of two leases, reflecting an average bonus of $7,459 per acre. |
Unit-Based Compensation
Unit-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unit-Based Compensation | UNIT-BASED COMPENSATION 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. As of June 30, 2018 , a total of 9,063,124 common units had 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 and six months ended June 30, 2018 , the Partnership incurred $0.5 million and $1.7 million , respectively, of unit–based compensation. Phantom Units Under the LTIP, the board of directors of the General Partner is authorized to issue phantom units to eligible employees and non-employee directors. The Partnership estimates the fair value 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 units entitle the recipient to one common unit of the Partnership for each phantom unit. The following table presents the phantom unit activity under the LTIP for the six months ended June 30, 2018 : Phantom Weighted Average Unvested at December 31, 2017 105,439 $ 17.10 Granted 101,403 $ 23.18 Vested (46,379 ) $ 21.41 Unvested at June 30, 2018 160,463 $ 19.70 The aggregate fair value of phantom units that vested during the six months ended June 30, 2018 was $1.0 million . As of June 30, 2018 , the unrecognized compensation cost related to unvested phantom units was $1.9 million . Such cost is expected to be recognized over a weighted-average period of 1.1 years. |
Unitholders' Equity and Partner
Unitholders' Equity and Partnership Distributions | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Partners' Capital and Partnership Distributions | UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS The Partnership has general partner and limited partner units. At June 30, 2018 , the Partnership had a total of 41,470,777 common units issued and outstanding and 72,418,500 Class B units outstanding, of which 731,500 common units and 72,418,500 Class B units were owned by Diamondback, representing approximately 64% of the total Partnership’s units outstanding. The Operating Company units and the Partnership’s Class B units owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). The following table summarizes changes in the number of the Partnership’s common units: Common Units Balance at December 31, 2017 113,882,045 Common units vested and issued under the LTIP 7,232 Unit exchange related to tax conversion (73,150,000 ) Recapitalization related to tax conversion 731,500 Balance at June 30, 2018 41,470,777 The following table summarizes changes in the number of the Partnership’s class B units: Class B Units Balance at December 31, 2017 — Unit exchange related to tax conversion 73,150,000 Recapitalization related to tax conversion (731,500 ) Balance at June 30, 2018 72,418,500 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 ended September 30, 2014. The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented: Amount per Common Unit Declaration Date Unitholder Record Date Payment Date Q4 2017 $ 0.46 January 31, 2018 February 19, 2018 February 26, 2018 Q1 2018 $ 0.48 April 5, 2018 April 20, 2018 April 27, 2018 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 | 6 Months Ended |
Jun. 30, 2018 | |
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 and six months ended June 30, 2018 and 2017 , 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. Payments made to the Partnership’s unitholders are determined in relation to the cash distribution policy described in Note 9—Unitholders’ Equity 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands, except per unit amounts) Net income attributable to the period $ 99,404 $ 22,149 $ 142,300 $ 42,801 Weighted average common units outstanding: Basic weighted average common units outstanding 73,336 97,677 93,506 96,377 Effect of dilutive securities: Potential common units issuable 91 — 106 5 Diluted weighted average common units outstanding 73,427 97,677 93,612 96,382 Net income per common unit, basic $1.36 $0.23 $1.52 $0.44 Net income per common unit, diluted $1.35 $0.23 $1.52 $0.44 For the three months ended June 30, 2018 and 2017 , there were 560 common units and 22,171 common units, respectively, and for six months ended June 30, 2018 and 2017 , there were 1,234 common units and 47,975 common units, respectively, that were not included in the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per common unit in future periods. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Owned, Federal Income Tax Note [Line Items] | |
Income Tax Disclosure [Text Block] | INCOME TAXES As discussed further in Note 1, on March 29, 2018, the Partnership announced that the Board of Directors of its General Partner had unanimously approved a change of the Partnership’s federal income tax status from that of a pass-through partnership to that of a taxable entity, which change became effective on May 10, 2018. Subsequent to the Partnership’s change in tax status, the Partnership’s provision for income taxes for the period ended June 30, 2018 is based on the estimated annual effective tax rate plus discrete items. The Partnership’s effective income tax rate was (72.25)% for the six months ended June 30, 2018 . Total income tax benefit for the six months ended June 30, 2018 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income for the period primarily due to (i) the impact of deferred taxes recognized as a result of the Partnership’s change in tax status, (ii) net income attributable to the non-controlling interest, and (iii) net income attributable to the period prior to the Partnership’s change in federal income tax status. For the six months ended June 30, 2018 , the Partnership recorded a discrete income tax benefit of approximately $72.7 million related to deferred taxes on the Partnership’s investment in the Operating Company arising from the change in the Partnership’s tax status. Prior to May 10, 2018, the effective date of the Partnership’s change in income tax status, the Partnership was organized as a pass-through entity for income tax purposes. As a result, the Partnership’s partners were responsible for federal income taxes on their share of the Partnership’s taxable income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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 | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Cash Distribution On July 27, 2018 , the board of directors of the General Partner approved a cash distribution for the second quarter of 2018 of $0.60 per common unit, payable on August 20, 2018 , to unitholders of record at the close of business on August 13, 2018 . Recent and Pending Acquisitions Since the end of the second quarter of 2018, the Partnership acquired from unrelated third-party sellers additional mineral interests underlying 24,405 gross ( 375 net royalty) acres in the Permian Basin for an aggregate of approximately $42.8 million , subject to post-closing adjustments. As a result, as of July 23, 2018, the Partnership’s assets included mineral interests underlying 460,776 gross ( 11,826 net royalty) acres primarily in the Permian Basin and the Eagle Ford Shale. These acquisitions were primarily funded with cash on hand and borrowings under the revolving credit facility. Since the end of the second quarter of 2018, the Partnership has also entered into definitive agreements with unrelated third-party sellers to acquire mineral interests underlying 1,236 gross ( 182 net royalty) acres in the Permian Basin for an aggregate of approximately $18.1 million , subject to post-closing adjustments. In addition, the Partnership entered into a definitive agreement with Diamondback to acquire mineral interests underlying 34,349 gross ( 1,696 net royalty) acres in the Permian Basin for approximately $175.0 million , subject to post-closing adjustments. The Partnership refers to these pending acquisitions collectively as the Pending Acquisitions. After giving pro forma effect to the Pending Acquisitions, as of July 23, 2018, the Partnership’s assets would have included mineral interests underlying 496,361 gross ( 13,705 net royalty) acres. Amended and Restated Senior Secured Revolving Credit Agreement On July 20, 2018, the Operating Company, as borrower, and the Partnership, as guarantor, amended and restated the revolving credit agreement to incorporate the terms of an assignment and assumption dated May 8, 2018 by and between the Partnership and the Operating Company, whereby the Partnership assigned its liabilities and rights as borrower under the credit agreement to the Operating Company, with the Operating Company becoming the borrower and assuming all liabilities of the borrower thereunder and the Partnership becoming a guarantor under the credit agreement. All other material terms of the credit agreement remained unchanged and are in effect as of the date of the Amended and Restated Senior Secured Revolving Credit Agreement. July 2018 Equity Offering In July 2018, the Partnership completed an underwritten public offering of 10,080,000 common units, which included 1,080,000 common units issued pursuant to an option to purchase additional common units granted to the underwriters. The Partnership received net proceeds from this offering of approximately $305.3 million , after deducting underwriting discounts and commissions and estimated offering expenses. The Partnership used the net proceeds to purchase units of the Operating Company. The Operating Company in turn used the net proceeds to repay a portion of the $361.5 million then outstanding borrowings under the revolving credit facility. Lease Bonus Payments Subsequent to June 30, 2018, Diamondback paid the Partnership $2.0 million related to two new leases, reflecting an average bonus of $10,000 per acre. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Accounting [Text Block] | Basis of Presentation The accompanying consolidated financial statements and related notes thereto were prepared in conformity with GAAP. All material intercompany balances and transactions are eliminated in consolidation. These financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2017 , which contains a summary of the Partnership’s significant accounting policies and other disclosures. |
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 interests and unit–based compensation. |
Cost Method Investments, Policy [Policy Text Block] | Investments The Partnership has an equity interest in a limited partnership that is so minor that the Partnership has no influence over the limited partnership’s operating and financial policies. This interest was acquired during the year ended December 31, 2014 and is accounted for under the cost method. Effective January 1, 2018, the Partnership adopted Accounting Standards Update 2016-01 which requires the Partnership to measure this investment at fair value which resulted in a downward adjustment of $18.7 million to record the impact of this adoption. For the three and six months ended June 30, 2018 , the Partnership recorded a gain of $4.5 million and $5.4 million , respectively, which then increased the Partnership’s investment balance to $20.4 million , which is included in other assets in the accompanying consolidated balance sheets. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Partnership uses the asset and liability method of accounting for income taxes, under which deferred tax assets and liabilities are recognized for the future tax consequences of (i) temporary differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities and (ii) operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period the rate change is enacted. A valuation allowance is provided for deferred tax assets when it is more likely than not the deferred tax assets will not be realized. The Partnership is subject to margin tax in the state of Texas pursuant to a tax sharing agreement with Diamondback, as discussed further in Note 7. The Partnership’s 2015 through 2017 tax years, periods during which the Partnership was organized as a pass-through entity for income tax purposes, remain open to examination by tax authorities. As of June 30, 2018 and June 30, 2017, the Partnership had no unrecognized tax benefits that would have a material impact on the effective tax rate. The Partnership is continuing its practice of recognizing interest and penalties related to income tax matters as interest expense and general and administrative expenses, respectively. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. This update supersedes most of the existing revenue recognition requirements. This standard included a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the Partnership expects to be entitled in exchange for those goods or services. Among other things, the standard also eliminated industry-specific revenue guidance, required enhanced disclosures about revenue, provided guidance for transactions that were not previously addressed comprehensively and improved guidance for multiple-element arrangements. The Partnership adopted this standard effective January 1, 2018 using the modified retrospective method. The Partnership utilized a bottom-up approach to analyze the impact of the new standard by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts and the impact of adopting this standard on its total revenues, operating income and the Partnership’s consolidated balance sheet. The adoption of this standard did not result in a cumulative-effect adjustment. In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-01, “Financial Instruments–Overall”. This update applies to any entity that holds financial assets or owes financial liabilities. This update requires equity investments (except for those accounted for under the equity method or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. The Partnership adopted this standard effective January 1, 2018 by means of a negative cumulative-effect adjustment totaling $18.7 million . In November 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-18, “Statement of Cash Flows - Restricted Cash”. This update affects entities that have restricted cash or restricted cash equivalents. The Partnership adopted this update effective January 1, 2018. The adoption of this update did not have an effect on the presentation on the Statement of Cash Flows. In January 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-01, “Business Combinations - Clarifying the Definition of a Business”. This update apples to all entities that must determine whether they acquired or sold a business. This update provides a screen to determine when a set is not a business. The screen requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. The Partnership adopted this update prospectively effective January 1, 2018. The adoption of this update did not have an impact on its financial position, results of operations or liquidity. Accounting Pronouncements Not Yet Adopted In February 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-02, “Leases”. This update applies to any entity that enters into a lease, with some specified scope exemptions. Under this update, a lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. While there were no major changes to the lessor accounting, changes were made to align key aspects with the revenue recognition guidance. This update will be effective for public entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with early adoption permitted. Entities will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. As of June 30, 2018 , the Partnership was not the lessor or lessee of any leases other than mineral leases which were excluded from the scope of this Accounting Standards Update. Therefore, the Partnership believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In January 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-01, “Leases - Land Easement Practical Expedient for Transition to Topic 842”. This update applies to any entity that holds land easements. The update allows entities to adopt a practical expedient to not evaluate existing or expired land easements under Topic 842 that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date that the entity adopts Topic 842. The Partnership believes the adoption of this update will not have an impact on its financial position, results of operations or liquidity. In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, “Financial Instruments - Credit Losses”. This update affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This update will be applied through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Partnership does not believe the adoption of this standard will have an impact on its financial statements since it does not have a history of credit losses. In June 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-07, “Stock Compensation - Improvements to Nonemployee Share-Based Payment Accounting”. This update applies the existing employee guidance to nonemployee share-based transactions, with the exception of specific guidance related to the attribution of compensation cost. This update will be effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Partnership is currently evaluating the impact of the adoption of this update, but does not believe it will have a material impact. |
Revenue Recognition, Policy [Policy Text Block] | Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained by the operator of the wells in which the Partnership owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser. Virtually all of the Partnership’s contracts’ pricing provisions are tied to a market index. Royalty income from oil, natural gas and natural gas liquids sales The Partnership’s oil, natural gas and natural gas liquids sales contracts are generally structured whereby the producer of the properties in which the Partnership owns a royalty interest sells the Partnership’s proportionate share of oil, natural gas and natural gas liquids production to the purchaser and the Partnership collects its percentage royalty based on the revenue generated by the sale of the oil, natural gas and natural gas liquids. In this scenario, the Partnership recognizes revenue when control transfers to the purchaser at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue. Transaction price allocated to remaining performance obligations The Partnership’s right to royalty income does not originate until production occurs and, therefore, is not considered to exist beyond each days’ production. Therefore, there are no remaining performance obligation under any of our royalty income contracts. Contract balances Under the Partnership’s royalty income contracts, it would have the right to receive royalty income from the producer once production has occurred, at which point payment is unconditional. Accordingly, the Partnership’s royalty income contracts do not give rise to contract assets or liabilities under Accounting Standards Codification 606. Prior-period performance obligations The Partnership records revenue in the month production is delivered to the purchaser. However, settlement statements for certain natural gas and natural gas liquids sales may not be received for 30 to 90 days after the date production is delivered, and as a result, the Partnership is required to estimate the amount of royalty income to be received based upon the Partnership’s interest. The Partnership records the differences between its estimates and the actual amounts received for royalties in the month that payment is received from the producer. The Partnership has existing internal controls for its revenue estimation process and related accruals, and any identified differences between its revenue estimates and actual revenue received historically have not been significant. For the three months ended June 30, 2018 , revenue recognized in the reporting period related to performance obligations satisfied in prior reporting periods was not material. The Partnership believes that the pricing provisions of its oil, natural gas and natural gas liquids contracts are customary in the industry. To the extent actual volumes and prices of oil and natural gas sales are unavailable for a given reporting period because of timing or information not received from third parties, the royalties related to expected sales volumes and prices for those properties are estimated and recorded. |
Oil and Natural Gas Interests (
Oil and Natural Gas Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Extractive Industries [Abstract] | |
Aggregate capitalized costs related to oil and natural gas production activities | Oil and natural gas interests include the following: June 30, December 31, 2018 2017 (in thousands) Oil and natural gas interests: Subject to depletion $ 675,726 $ 589,173 Not subject to depletion 683,870 514,724 Gross oil and natural gas interests 1,359,596 1,103,897 Accumulated depletion and impairment (214,252 ) (189,466 ) Oil and natural gas interests, net 1,145,344 914,431 Land 1,001 — Property and equipment, net of accumulated depletion and impairment $ 1,146,345 $ 914,431 Balance of acquisition costs not subject to depletion: Incurred in 2018 $ 204,782 Incurred in 2017 284,371 Incurred in 2016 158,157 Incurred in 2015 28,656 Incurred in 2014 7,904 Total not subject to depletion $ 683,870 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of financial covenants | Financial Covenant Required Ratio Ratio of total net debt to EBITDAX, as defined in the credit agreement 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 |
Unit-Based Compensation (Tables
Unit-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following table presents the phantom unit activity under the LTIP for the six months ended June 30, 2018 : Phantom Weighted Average Unvested at December 31, 2017 105,439 $ 17.10 Granted 101,403 $ 23.18 Vested (46,379 ) $ 21.41 Unvested at June 30, 2018 160,463 $ 19.70 |
Unitholders' Equity and Partn24
Unitholders' Equity and Partnership Distributions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Distribution Made to Limited Partner [Line Items] | |
Distributions Made to Limited Partner, by Distribution [Table Text Block] | The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented: Amount per Common Unit Declaration Date Unitholder Record Date Payment Date Q4 2017 $ 0.46 January 31, 2018 February 19, 2018 February 26, 2018 Q1 2018 $ 0.48 April 5, 2018 April 20, 2018 April 27, 2018 |
Schedule of changes in common units | The following table summarizes changes in the number of the Partnership’s common units: Common Units Balance at December 31, 2017 113,882,045 Common units vested and issued under the LTIP 7,232 Unit exchange related to tax conversion (73,150,000 ) Recapitalization related to tax conversion 731,500 Balance at June 30, 2018 41,470,777 The following table summarizes changes in the number of the Partnership’s class B units: Class B Units Balance at December 31, 2017 — Unit exchange related to tax conversion 73,150,000 Recapitalization related to tax conversion (731,500 ) Balance at June 30, 2018 72,418,500 |
Earnings Per Unit (Tables)
Earnings Per Unit (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per common unit | Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (In thousands, except per unit amounts) Net income attributable to the period $ 99,404 $ 22,149 $ 142,300 $ 42,801 Weighted average common units outstanding: Basic weighted average common units outstanding 73,336 97,677 93,506 96,377 Effect of dilutive securities: Potential common units issuable 91 — 106 5 Diluted weighted average common units outstanding 73,427 97,677 93,612 96,382 Net income per common unit, basic $1.36 $0.23 $1.52 $0.44 Net income per common unit, diluted $1.35 $0.23 $1.52 $0.44 |
Organization and Basis of Pre26
Organization and Basis of Presentation (Details) - USD ($) | 2 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 03, 2018 | May 10, 2018 | Dec. 31, 2017 | |
Limited Partners' Capital Account [Line Items] | ||||||
Class B Units Outstanding | 72,418,500 | 72,418,500 | 72,418,500 | 0 | ||
General Partners' Contributed Capital | $ 1,000,000 | |||||
Limited Partners' Contributed Capital | $ 1,000,000 | |||||
Limited partners capital account, percentage of distribution | 8.00% | |||||
Number of Class B Units Converted | 731,500 | |||||
Partners' Capital Account, Units, Converted | 731,500 | |||||
Limited Partners' Capital Account, Distribution Amount | $ 10,000 | $ 38,288,000 | $ 14,123,000 | |||
Parent Company [Member] | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Number of common units exchanged | 73,150,000 | |||||
Class B Units Outstanding | 72,418,500 | 72,418,500 | 73,150,000 | |||
Percent of limited partnership interest | 64.00% | 64.00% | ||||
General Partner [Member] | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Percent of General Partner interest | 36.00% | |||||
Limited Partners' Capital Account, Distribution Amount | $ 0 | $ 0 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Investment [Line Items] | |||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 0 | $ 0 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0 | $ 0 | 0 | 0 | $ 0 |
Impact of adoption of ASU 2016-01 | (18,651) | (18,651) | |||
Gain on revaluation of investment | 4,465 | $ 0 | 5,364 | $ 0 | |
Other Noncurrent Assets [Member] | |||||
Investment [Line Items] | |||||
Cost Method Investments | $ 20,438 | $ 20,438 |
Acquisitions (Details)
Acquisitions (Details) - Series of Individually Immaterial Business Acquisitions [Member] $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)a | Jun. 30, 2017USD ($)ashares | |
Business Acquisition [Line Items] | ||
Mineral Properties Acquired, Net Royalty Acres | 1,891 | 1,092 |
Aggregate purchase price | $ | $ 260.8 | $ 125.7 |
Mineral Properties, Net Royalty Acres | 11,451 | 7,506 |
Units issued in acquisition | shares | 174,513 |
Oil and Natural Gas Interests29
Oil and Natural Gas Interests (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||||
Oil and Natural gas interests subject to depletion | $ 675,726 | $ 589,173 | |||
Oil and natural gas not subject to depletion | 683,870 | 514,724 | |||
Gross oil and natural gas interests | 1,359,596 | 1,103,897 | |||
Accumulated depletion and impairment | (214,252) | (189,466) | |||
Oil and natural gas interests, net | 1,145,344 | 914,431 | |||
Land | 1,001 | 0 | |||
Property and equipment, net | 1,146,345 | 914,431 | |||
Balance of acquisition costs not subject to depletion | $ 204,782 | $ 284,371 | $ 158,157 | $ 28,656 | $ 7,904 |
Minimum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Anticipated number of years of inclusion of costs in amortization calculation | 3 | ||||
Maximum [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Anticipated number of years of inclusion of costs in amortization calculation | 5 |
Debt - Credit Facility (Details
Debt - Credit Facility (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)redetermindation | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,000 |
Current borrowing capacity | $ 475 |
Number of interim redeterminations that may be requested | redetermindation | 3 |
Period of redeterminations | 12 months |
Amount outstanding under credit facility | $ 350 |
Remaining borrowing capacity | $ 125 |
Federal Funds Effective Swap Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.50% |
LIBOR [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 | 0.375% |
Minimum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.75% |
Minimum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 0.75% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Commitment fee on the unused portion of the borrowing base | 0.50% |
Maximum [Member] | LIBOR [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 2.75% |
Maximum [Member] | Base Rate [Member] | |
Line of Credit Facility [Line Items] | |
Basis spread on variable rate | 1.75% |
Debt - Financial Covenants (Det
Debt - Financial Covenants (Details) $ in Millions | Jun. 30, 2018USD ($) |
Line of Credit Facility [Line Items] | |
Maximum issuance of unsecured debt | $ 400 |
Reduction of borrowing base due to additional issuances of unsecured debt | 25.00% |
Maximum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX, not greater than 4.0 | 4 |
Minimum [Member] | |
Line of Credit Facility [Line Items] | |
Ratio of current assets to liabilities, not less than 1.0 | 1 |
Related Party Transactions (Det
Related Party Transactions (Details) | Jun. 23, 2014USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Related Party Transaction [Line Items] | |||||
Accrued state income tax expense | $ 170,000 | $ 170,000 | |||
General Partner | Partnership Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred costs for transactions with related party | 615,000 | $ 615,000 | 1,230,000 | $ 1,230,000 | |
Affiliated Entity, Wexford [Member] | Advisory Services Agreement [Member] | |||||
Related Party Transaction [Line Items] | |||||
Incurred costs for transactions with related party | 0 | 0 | 0 | 0 | |
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 | ||||
Diamondback Energy, Inc. | |||||
Related Party Transaction [Line Items] | |||||
Revenue from Related Parties | $ 0 | $ 104,000 | $ 0 | $ 107,000 | |
Number of leases extended | 1 | 2 | |||
Average price per acre | $ 10,000 | $ 7,459 |
Unit-Based Compensation (Detail
Unit-Based Compensation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common units reserved for issuance | 9,063,124 | 9,063,124 |
Unit-based compensation | $ | $ 0.5 | $ 1.7 |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Unvested at December 31, 2017 | 105,439 | |
Granted | 101,403 | |
Vested | (46,379) | |
Unvested at June 30, 2018 | 160,463 | 160,463 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at December 31, 2017 | $ / shares | $ 17.10 | |
Granted | $ / shares | 23.18 | |
Vested | $ / shares | 21.41 | |
Unvested at June 30, 2018 | $ / shares | $ 19.70 | $ 19.70 |
Aggregate fair value of phantom units vested during period | $ | $ 1 | |
Unrecognized compensation cost related to unvested phantom units | $ | $ 1.9 | $ 1.9 |
Unrecognized compensation cost related to phantom units, weighted-average period | 1 year 1 month 6 days |
Unitholders' Equity and Partn34
Unitholders' Equity and Partnership Distributions (Details) - shares | 2 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2018 | Aug. 03, 2018 | May 10, 2018 | Dec. 31, 2017 | |
Limited Partners' Capital Account [Line Items] | |||||
Common units outstanding | 41,470,777 | 41,470,777 | 113,882,045 | ||
Class B Units Outstanding | 72,418,500 | 72,418,500 | 72,418,500 | 0 | |
Total common units issued | 41,470,777 | 41,470,777 | 113,882,045 | ||
Class B Units Issued | 72,418,500 | 72,418,500 | 0 | ||
Common units vested and issued under the LTIP | 7,232 | ||||
Common Units [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Units converted due to tax status change | (73,150,000) | ||||
Recapitalization related to tax conversion, units | 731,500 | ||||
Class B Units [Member] | |||||
Limited Partners' Capital Account [Line Items] | |||||
Units converted due to tax status change | 73,150,000 | ||||
Recapitalization related to tax conversion, units | (731,500) | ||||
Diamondback Energy, Inc. | |||||
Limited Partners' Capital Account [Line Items] | |||||
Common units outstanding | 731,500 | 731,500 | |||
Class B Units Outstanding | 72,418,500 | 72,418,500 | 73,150,000 | ||
Percent of limited partnership interest | 64.00% | 64.00% |
Unitholders' Equity and Partn35
Unitholders' Equity and Partnership Distributions Partnership Distributions (Details) - Cash Distribution [Member] - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2018 | |
Distribution Made to Limited Partner [Line Items] | |||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ 0.48 | $ 0.46 | |
Distribution Made to Limited Partner, Declaration Date | Apr. 5, 2018 | Jan. 31, 2018 | |
Distribution Made to Limited Partner, Date of Record | Apr. 20, 2018 | Feb. 19, 2018 | |
Distribution Made to Limited Partner, Distribution Date | Apr. 27, 2018 | Feb. 26, 2018 | |
Distribution Made to Limited Partner, Distribution Date, Period after Quarter End | 60 days |
Earnings Per Unit (Details)
Earnings Per Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to the period | $ 99,404 | $ 22,149 | $ 142,300 | $ 42,801 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 128,464 | $ 22,149 | $ 171,360 | $ 42,801 |
Basic weighted average common units outstanding | 73,336,000 | 97,677,000 | 93,506,000 | 96,377,000 |
Effect of dilutive securities: contingently issuable units | 91,000 | 0 | 106,000 | 5,000 |
Diluted weighted average common units outstanding | 73,427,000 | 97,677,000 | 93,612,000 | 96,382,000 |
Net income per common unit, basic | $ 1.36 | $ 0.23 | $ 1.52 | $ 0.44 |
Net income per common unit, diluted | $ 1.35 | $ 0.23 | $ 1.52 | $ 0.44 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 560 | 22,171 | 1,234 | 47,975 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Valuation Allowance [Line Items] | |
Effective Income Tax Rate Reconciliation, Percent | (72.25%) |
Discrete income tax benefit related to deferred taxes recorded during the period | $ 72.7 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Aug. 06, 2018USD ($) | Jul. 31, 2018USD ($)ashares | Sep. 30, 2018$ / shares | Jun. 30, 2018USD ($)a$ / shares | Mar. 31, 2018$ / shares | Jun. 30, 2017USD ($)a | Jun. 30, 2018USD ($)a | Jun. 30, 2017USD ($)a | Jul. 22, 2018a | |
Subsequent Event [Line Items] | |||||||||
Repayments of Lines of Credit | $ | $ 0 | $ 143,000,000 | |||||||
Amount outstanding under credit facility | $ | $ 350,000,000 | $ 350,000,000 | |||||||
Follow-on Public Offering [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 10,080,000 | ||||||||
Sale of Stock, Consideration Received on Transaction | $ | $ 305,300,000 | ||||||||
Over-Allotment Option [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Sale of Stock, Number of Shares Issued in Transaction | shares | 1,080,000 | ||||||||
Series of Individually Immaterial Business Acquisitions [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Mineral Properties Acquired, Net Royalty Acres | a | 1,891 | 1,092 | |||||||
Aggregate purchase price, subject to adjustments | $ | $ 260,800,000 | $ 125,700,000 | |||||||
Mineral Properties, Net Royalty Acres | a | 11,451 | 7,506 | 11,451 | 7,506 | |||||
Series of Individually Immaterial Business Acquisitions [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Mineral Properties Acquired, Gross Acres | a | 24,405 | ||||||||
Mineral Properties Acquired, Net Royalty Acres | a | 375 | ||||||||
Pending Acquisitions, Mineral Properties Acquired, Gross Acres | a | 1,236 | ||||||||
Pending Acquisitions, Mineral Properties Acquired, Net Royalty Acres | a | 182 | ||||||||
Business Combination, Consideration Transferred in Pending Acquisitions | $ | $ 18,100,000 | ||||||||
Mineral Properties, Gross Acres Including Pending Acquisitions | a | 496,361 | ||||||||
Mineral Properties, Net Royalty Acres Including Pending Acquisitions | a | 13,705 | ||||||||
Aggregate purchase price, subject to adjustments | $ | $ 42,800,000 | ||||||||
Mineral Properties, Gross Acres | a | 460,776 | ||||||||
Mineral Properties, Net Royalty Acres | a | 11,826 | ||||||||
Cash Distribution [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Distribution Made to Limited Partner, Declaration Date | Apr. 5, 2018 | Jan. 31, 2018 | |||||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares | $ 0.48 | $ 0.46 | |||||||
Distribution Made to Limited Partner, Distribution Date | Apr. 27, 2018 | Feb. 26, 2018 | |||||||
Distribution Made to Limited Partner, Date of Record | Apr. 20, 2018 | Feb. 19, 2018 | |||||||
Cash Distribution [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Distribution Made to Limited Partner, Declaration Date | Jul. 27, 2018 | ||||||||
Distribution Made to Limited Partner, Distributions Declared, Per Unit | $ / shares | $ 0.60 | ||||||||
Distribution Made to Limited Partner, Distribution Date | Aug. 20, 2018 | ||||||||
Distribution Made to Limited Partner, Date of Record | Aug. 13, 2018 | ||||||||
Parent Company [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revenue from Related Parties | $ | $ 0 | $ 104,000 | $ 0 | $ 107,000 | |||||
Average price per acre | $ | $ 10,000 | $ 7,459 | |||||||
Parent Company [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Revenue from Related Parties | $ | $ 2,013,000 | ||||||||
Number of new leases | 2 | ||||||||
Average price per acre | $ | $ 10,000 | ||||||||
Parent Company [Member] | Series of Individually Immaterial Business Acquisitions [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Mineral Properties Acquired, Net Royalty Acres | a | 1,696 | ||||||||
Pending Acquisitions, Mineral Properties Acquired, Gross Acres | a | 34,349 | ||||||||
Business Combination, Consideration Transferred in Pending Acquisitions | $ | $ 175,000,000 | ||||||||
Partnership Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Long-term Debt, Gross | $ | $ 361,500,000 |