Cover
Cover - shares | 6 Months Ended | ||
Jun. 30, 2021 | Jul. 30, 2021 | Dec. 31, 2020 | |
Document Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-36505 | ||
Entity Registrant Name | Viper Energy Partners LP | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-5001985 | ||
Entity Address, Address Line One | 500 West Texas | ||
Entity Address, City or Town | Suite 1200 | ||
Entity Address, City or Town | Midland, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 79701 | ||
City Area Code | 432 | ||
Local Phone Number | 221-7400 | ||
Title of 12(b) Security | Common Units | ||
Trading Symbol | VNOM | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Units, Units Outstanding | 64,301,306 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q2 | ||
Entity Central Index Key | 0001602065 | ||
Current Fiscal Year End Date | --12-31 | ||
Class B Units | |||
Document Information [Line Items] | |||
Limited partners' capital account, units outstanding (in shares) | 90,709,946 | 90,709,946 | 90,709,946 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 42,422 | $ 19,121 |
Royalty income receivable (net of allowance for credit losses) | 42,011 | 32,210 |
Royalty income receivable—related party | 3,679 | 1,998 |
Other current assets | 658 | 665 |
Total current assets | 88,770 | 53,994 |
Property: | ||
Oil and natural gas interests, full cost method of accounting ($1,319,256 and $1,364,906 excluded from depletion at June 30, 2021 and December 31, 2020, respectively) | 2,896,361 | 2,895,542 |
Land | 5,688 | 5,688 |
Accumulated depletion and impairment | (545,040) | (496,176) |
Property, net | 2,357,009 | 2,405,054 |
Other assets | 4,383 | 2,327 |
Total assets | 2,450,162 | 2,461,375 |
Current liabilities: | ||
Accounts payable | 39 | 43 |
Accrued liabilities | 17,159 | 18,262 |
Derivative instruments | 51,762 | 26,593 |
Total current liabilities | 68,960 | 44,898 |
Long-term debt, net | 534,180 | 555,644 |
Total liabilities | 603,140 | 600,542 |
Commitments and contingencies (Note 12) | ||
Unitholders’ equity: | ||
General partner | 769 | 809 |
Common units (64,546,377 units issued and outstanding as of June 30, 2021 and 65,817,281 units issued and outstanding as of December 31, 2020) | 594,777 | 633,415 |
Class B units (90,709,946 units issued and outstanding as of June 30, 2021 and December 31, 2020) | 981 | 1,031 |
Total Viper Energy Partners LP unitholders’ equity | 596,527 | 635,255 |
Non-controlling interest | 1,250,495 | 1,225,578 |
Total equity | 1,847,022 | 1,860,833 |
Total liabilities and unitholders’ equity | $ 2,450,162 | $ 2,461,375 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jul. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Oil and natural gas interests, based on the full cost method of accounting, amount excluded from depletion | $ 1,319,256 | $ 1,364,906 | |
Common Units | |||
Limited partners' capital account, units issued (in shares) | 64,546,377 | 65,817,281 | |
Limited partners' capital account, units outstanding (in shares) | 64,546,377 | 65,817,281 | |
Class B Units | |||
Limited partners' capital account, units issued (in shares) | 90,709,946 | 90,709,946 | |
Limited partners' capital account, units outstanding (in shares) | 90,709,946 | 90,709,946 | 90,709,946 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating income: | ||||
Royalty income | $ 113,458 | $ 32,444 | $ 209,970 | $ 109,273 |
Lease bonus income | 484 | 23 | 809 | 1,645 |
Other operating income | 208 | 202 | 347 | 443 |
Total operating income | 114,150 | 32,669 | 211,126 | 111,361 |
Costs and expenses: | ||||
Production and ad valorem taxes | 8,152 | 3,110 | 14,801 | 9,257 |
Depletion | 23,978 | 22,782 | 48,864 | 47,424 |
General and administrative expenses | 2,162 | 1,683 | 4,383 | 4,349 |
Total costs and expenses | 34,292 | 27,575 | 68,048 | 61,030 |
Income (loss) from operations | 79,858 | 5,094 | 143,078 | 50,331 |
Other income (expense): | ||||
Interest expense, net | (7,973) | (7,669) | (15,833) | (16,632) |
Gain (loss) on derivative instruments, net | (29,546) | (34,443) | (61,050) | (42,385) |
Gain (loss) on revaluation of investment | 0 | 3,443 | 0 | (6,677) |
Other income, net | 39 | 519 | 77 | 923 |
Total other expense, net | (37,480) | (38,150) | (76,806) | (64,771) |
Income (loss) before income taxes | 42,378 | (33,056) | 66,272 | (14,440) |
Provision for (benefit from) income taxes | 0 | 0 | 35 | 142,466 |
Net income (loss) | 42,378 | (33,056) | 66,237 | (156,906) |
Net income (loss) attributable to non-controlling interest | 37,716 | (11,304) | 64,595 | 7,015 |
Net income (loss) attributable to Viper Energy Partners LP | $ 4,662 | $ (21,752) | $ 1,642 | $ (163,921) |
Net income (loss) attributable to common limited partner units: | ||||
Basic (dollars per unit) | $ 0.07 | $ (0.32) | $ 0.03 | $ (2.42) |
Diluted (dollars per unit) | $ 0.07 | $ (0.32) | $ 0.03 | $ (2.42) |
Weighted average number of common limited partner units outstanding: | ||||
Basic (in units) | 64,672 | 67,831 | 65,014 | 67,827 |
Diluted (in units) | 64,795 | 67,831 | 65,151 | 67,827 |
Revenue extensible list | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember | us-gaap:RoyaltyMember |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes to Unitholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Limited Partner | General Partner | Non-Controlling Interest | Common UnitsLimited Partner | Class B UnitsLimited Partner |
Beginning balance at Dec. 31, 2019 | $ 2,185,420 | $ 889 | $ 1,254,285 | $ 929,116 | $ 1,130 | |
Beginning balance (in shares) at Dec. 31, 2019 | 67,806 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Unit-based compensation | 387 | $ 387 | ||||
Issuance of common units (shares) | 25 | |||||
Distribution equivalent rights payments | (20) | $ (20) | ||||
Distributions to public | (30,194) | (30,194) | ||||
Distributions to Diamondback | (41,173) | (40,819) | (329) | $ (25) | ||
Distributions to General Partner | (20) | (20) | ||||
Cash paid for tax withholding on vested common units | (383) | (383) | ||||
Net income (loss) | (123,850) | 18,319 | $ (142,169) | |||
Ending balance (in shares) at Mar. 31, 2020 | 67,831 | 90,710 | ||||
Ending balance at Mar. 31, 2020 | 1,990,167 | 869 | 1,231,785 | $ 756,408 | $ 1,105 | |
Beginning balance at Dec. 31, 2019 | 2,185,420 | 889 | 1,254,285 | $ 929,116 | $ 1,130 | |
Beginning balance (in shares) at Dec. 31, 2019 | 67,806 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net income (loss) | (156,906) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 67,831 | 90,710 | ||||
Ending balance at Jun. 30, 2020 | 1,941,485 | 849 | 1,211,407 | $ 728,149 | $ 1,080 | |
Beginning balance at Mar. 31, 2020 | 1,990,167 | 869 | 1,231,785 | $ 756,408 | $ 1,105 | |
Beginning balance (in shares) at Mar. 31, 2020 | 67,831 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Unit-based compensation | 283 | $ 283 | ||||
Distribution equivalent rights payments | (4) | (4) | ||||
Distributions to public | (6,710) | (6,710) | ||||
Distributions to Diamondback | (9,175) | (9,074) | (76) | $ (25) | ||
Distributions to General Partner | (20) | (20) | ||||
Net income (loss) | (33,056) | (11,304) | $ (21,752) | |||
Ending balance (in shares) at Jun. 30, 2020 | 67,831 | 90,710 | ||||
Ending balance at Jun. 30, 2020 | 1,941,485 | 849 | 1,211,407 | $ 728,149 | $ 1,080 | |
Beginning balance at Dec. 31, 2020 | 1,860,833 | 809 | 1,225,578 | $ 633,415 | $ 1,031 | |
Beginning balance (in shares) at Dec. 31, 2020 | 65,817 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Unit-based compensation | 315 | $ 315 | ||||
Issuance of common units (shares) | 3 | |||||
Distribution equivalent rights payments | (24) | $ (24) | ||||
Distributions to public | (9,036) | (9,036) | ||||
Distributions to Diamondback | (12,826) | (12,699) | (102) | $ (25) | ||
Distributions to General Partner | (20) | (20) | ||||
Change in ownership of consolidated subsidiaries, net | 0 | (2,687) | 2,687 | |||
Cash paid for tax withholding on vested common units | (20) | $ (20) | ||||
Repurchased units as part of unit buyback (in shares) | (870) | |||||
Repurchased units as part of unit buyback | (13,043) | $ (13,043) | ||||
Net income (loss) | 23,859 | 26,879 | $ (3,020) | |||
Ending balance (in shares) at Mar. 31, 2021 | 64,950 | 90,710 | ||||
Ending balance at Mar. 31, 2021 | 1,850,038 | 789 | 1,237,071 | $ 611,172 | $ 1,006 | |
Beginning balance at Dec. 31, 2020 | 1,860,833 | 809 | 1,225,578 | $ 633,415 | $ 1,031 | |
Beginning balance (in shares) at Dec. 31, 2020 | 65,817 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Change in ownership of consolidated subsidiaries, net | $ 4,301 | |||||
Net income (loss) | 66,237 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 64,546 | 90,710 | ||||
Ending balance at Jun. 30, 2021 | 1,847,022 | 769 | 1,250,495 | $ 594,777 | $ 981 | |
Beginning balance at Mar. 31, 2021 | 1,850,038 | 789 | 1,237,071 | $ 611,172 | $ 1,006 | |
Beginning balance (in shares) at Mar. 31, 2021 | 64,950 | 90,710 | ||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Unit-based compensation | 338 | $ 338 | ||||
Distribution equivalent rights payments | (55) | (55) | ||||
Distributions to public | (15,992) | (15,992) | ||||
Distributions to Diamondback | (22,886) | (22,678) | (183) | $ (25) | ||
Distributions to General Partner | (20) | (20) | ||||
Change in ownership of consolidated subsidiaries, net | 0 | $ 1,614 | (1,614) | $ 1,614 | ||
Repurchased units as part of unit buyback (in shares) | (404) | |||||
Repurchased units as part of unit buyback | (6,779) | $ (6,779) | ||||
Net income (loss) | 42,378 | 37,716 | $ 4,662 | |||
Ending balance (in shares) at Jun. 30, 2021 | 64,546 | 90,710 | ||||
Ending balance at Jun. 30, 2021 | $ 1,847,022 | $ 769 | $ 1,250,495 | $ 594,777 | $ 981 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 66,237 | $ (156,906) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Deferred income tax expense (benefit) | 0 | 142,466 |
Depletion | 48,864 | 47,424 |
(Gain) loss on derivative instruments, net | 61,050 | 42,385 |
Net cash receipts (payments) on derivatives | (35,882) | (2,554) |
(Gain) loss on revaluation of investment | 0 | 6,677 |
Other | 1,992 | 1,808 |
Changes in operating assets and liabilities: | ||
Royalty income receivable | (9,801) | 25,971 |
Royalty income receivable—related party | (1,681) | 9,659 |
Other | (1,099) | (1,067) |
Net cash provided by (used in) operating activities | 129,680 | 115,863 |
Cash flows from investing activities: | ||
Acquisitions of oil and natural gas interests | (819) | (65,272) |
Net cash provided by (used in) investing activities | (819) | (65,272) |
Cash flows from financing activities: | ||
Proceeds from borrowings under credit facility | 25,000 | 92,000 |
Repayment on credit facility | (47,000) | (35,000) |
Repayment of senior notes | 0 | (13,787) |
Repurchased units as part of unit buyback | (19,822) | 0 |
Distributions to public | (25,107) | (36,928) |
Distributions to Diamondback | (35,712) | (50,348) |
Other | (2,919) | (467) |
Net cash provided by (used in) financing activities | (105,560) | (44,530) |
Net increase (decrease) in cash | 23,301 | 6,061 |
Cash and cash equivalents at beginning of period | 19,121 | 3,602 |
Cash and cash equivalents at end of period | $ 42,422 | $ 9,663 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
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 focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin. As of June 30, 2021, Viper Energy Partners GP LLC (the “General Partner”) held a 100% general partner interest in the Partnership and Diamondback Energy, Inc. (“Diamondback”) beneficially owned an approximate 59% o f the Partnership’s total limited partner units outstanding. Diamondback owns and controls the General Partner. Basis of Presentation The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All material intercompany balances and transactions have been eliminated upon consolidation. We report our operations in one reportable segment. These condensed consolidated 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 SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2020, which contains a summary of the Partnership’s significant accounting policies and other disclosures. Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported total assets, total liabilities, unitholders’ equity, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
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 as of the date of the financial statements. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19 and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets resulted in significant negative pricing pressure in the first half of 2020, followed by a recovery in pricing and an increase in demand in the second half of 2020 and into 2021. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each particular circumstance. 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, the recoverability of costs of unevaluated properties, the fair value determination of assets and liabilities, fair value estimates of commodity derivatives and estimates of income taxes. Accrued Liabilities Accrued liabilities consist of the following: June 30, December 31, 2021 2020 (In thousands) Interest payable $ 4,321 $ 4,311 Ad valorem taxes payable 4,018 6,501 Derivatives instruments payable 8,489 7,392 Other 331 58 Total accrued liabilities $ 17,159 $ 18,262 Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes”. This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance and is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Partnership adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Partnership considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, previously disclosed, or not material upon adoption. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS 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 at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Partnership’s contracts are tied to a market index. The following table disaggregates the Partnership’s total royalty income by product type: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Oil income $ 93,952 $ 27,617 $ 172,296 $ 99,817 Natural gas income 9,533 1,234 18,577 1,578 Natural gas liquids income 9,973 3,593 19,097 7,878 Total royalty income $ 113,458 $ 32,444 $ 209,970 $ 109,273 |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS 2021 Activity The Partnership had no significant acquisition or divestiture activity during the six months ended June 30, 2021. 2020 Activity During the six months ended June 30, 2020, the Partnership acquired, from unrelated third-party sellers, mineral and royalty interests representing 4,948 gross (410 net royalty) acres in the Permian Basin for an aggregate purchase price of approximately $63.4 million, including post-closing adjustments. The Partnership funded these acquisitions with cash on hand and borrowings under the Operating Company’s revolving credit facility. |
OIL AND NATURAL GAS INTERESTS
OIL AND NATURAL GAS INTERESTS | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 (In thousands) Oil and natural gas interests: Subject to depletion $ 1,577,105 $ 1,530,636 Not subject to depletion 1,319,256 1,364,906 Gross oil and natural gas interests 2,896,361 2,895,542 Accumulated depletion and impairment (545,040) (496,176) Oil and natural gas interests, net 2,351,321 2,399,366 Land 5,688 5,688 Property, net of accumulated depletion and impairment $ 2,357,009 $ 2,405,054 As of June 30, 2021 and December 31, 2020, the Partnership had mineral and royalty interests representing 24,341 and 24,350 net royalty acres, respectively. No impairment expense was recorded on the Partnership’s oil and gas properties for the three and six months ended June 30, 2021 and 2020 based on the results of the respective quarterly ceiling tests. In addition to commodity prices, the Partnership’s production rates, levels of proved reserves, transfers of unevaluated properties and other factors will determine its actual ceiling test limitations and impairment analysis in future periods. If the trailing 12-month commodity prices decline as compared to the com modity prices used in prior quarters, the Partnership will have write-downs in subsequent quarters, which may be material. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2021 2020 (In thousands) 5.375% senior notes due 2027 $ 479,938 $ 479,938 Revolving credit facility 62,000 84,000 Unamortized debt issuance costs (1,907) (2,058) Unamortized discount (5,851) (6,236) Total long-term debt $ 534,180 $ 555,644 The Operating Company’s Revolving Credit Facility On June 2, 2021, the Operating Company entered into the seventh amendment to the existing credit agreement, which maintained the maximum amount of the revolving credit facility at $2.0 billion and reaffirmed the borrowing base of $580.0 million based on the Operating Company’s oil and natural gas reserves and other factors, and added new provisions that allow the Operating Company to elect a commitment amount that is less than its borrowing base as determined by the lenders. The borrowing base is scheduled to be redetermined semi-annually in May an d November. As of June 30, 2021, the Operating Company had elected a commitment amount of $500.0 million, with $62.0 million of outstanding borrowings and $438.0 million available for future borrowings under the Operating Company’s revolving credit facility. The revolving credit facility will mature on June 2, 2025. 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 1.00% to 2.00% per annum in the case of the alternative base rate and from 2.00% to 3.00% per annum in the case of LIBOR, in each case depending on the amount of the loans outstanding in relation to the commitment, which is calculated using the least of the maximum credit amount, the aggregate elected commitment 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. 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. The loan is secured by substantially all the assets of the Partnership and the Operating Company. During the three and six months ended June 30, 2021 and 2020 , the weighted average interest rate on the Operating Company’s revolving credit facility was 1.93%, 1.90%, 2.41% and 2.82%, respectively . 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, excess cash and entering into certain swap agreements and require the maintenance of the financial ratios described below. The amendment to the credit agreement added a financial covenant requirement for the ratio of secured debt to EBITDAX as included 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 Ratio of secured debt to EBITDAX, as defined in the credit agreement Not greater than 2.5 to 1.0 The covenant prohibiting additional indebtedness allows for the issuance of unsecured debt of up to $1.0 billion 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, 2021, the Operating Company wa s in compliance w ith th e financial maintenance covenants under its credit agreement. The lenders may accelerate all of the indebtedness under the Operating Company’s 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. 2027 Senior Notes The Partnership’s 5.375% senior notes due 2027 (the “Notes”) are senior unsecured obligations of the Partnership and are initially guaranteed on a senior unsecured basis by the Operating Company and pay interest semi-annually. Neither Diamondback nor the General Partner guarantees the Notes. In the future, each of the Partnership’s restricted subsidiaries that either (i) guarantees any of its or a guarantor’s other indebtedness or (ii) is a domestic restricted subsidiary and is an obligor with respect to any indebtedness under any credit facility will be required to guarantee the Notes. The Notes will mature on November 1, 2027. As of June 30, 2021, $479.9 million in aggregate principal amount of the Notes was outstanding. The |
UNITHOLDERS_ EQUITY AND DISTRIB
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS | UNITHOLDERS’ EQUITY AND DISTRIBUTIONS The Partnership has general partner and limited partner units. At June 30, 2021, the Partnership had a total of 64,546,377 common units issued and outstanding and 90,709,946 Class B units issued and outstanding, of which 731,500 common units and 90,709,946 Class B units were beneficially owned by Diamondback, representing approximately 59% o f the Partnership’s total units outstanding. At June 30, 2021, Diamondback also beneficially owns 90,709,946 Operating Company units, representing a 58% non-controlling ownership interest in the Operating Company. The Operating Company units and the Partnership’s Class B units beneficially 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). Common Unit Repurchase Program On November 6, 2020, the board of directors of the G eneral Partner approved an expansion of the Partnership’s return of capital program with the implementation of a common unit repurchase program to acquire up to $100.0 million of the Partnership’s outs tanding common units. During the three and six months ended June 30, 2021, the Partnership repurchased approximately $6.8 million and $19.8 million, respectively, of common units under the repurchase program. As of June 30, 2021, $56.2 million remains available for use under the repurchase program. The common unit repurchase program is authorized to extend through December 31, 2021 and the Partnership intends to purchase common units under the repurchase p rogram opportunistically with funds from cash on hand, free cash flow from operations and potential liquidity events, such as the sale of assets. The repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors of the G eneral Partner at any time. Cash Distributions on Common Units The board of directors of the General Partner has established a distribution policy whereby the Operating Company distributes all or a portion of its available cash on a quarterly basis to its unitholders (including Diamondback and the Partnership). The Partnership in turn distributes all of the available cash it receives from the Operating Company to its common unitholders. The Partnership’s available cash and the available cash of the Operating Company for each quarter is determined by the board of directors of the General Partner following the end of such quarter. The Operating Company’s available cash generally equals its Adjusted EBITDA for the quarter, less cash needed for debt service and other contractual obligations, 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. The Partnership’s available cash for each quarter generally equals the Partnership’s proportional share of the Operating Company’s available cash for the quarter, less cash needed for the payment of income taxes, if any, and the preferred distribution. The percentage of available cash distributed pursuant to the distribution policy discussed above may change quarterly to enable the Operating Company to retain cash flow to help strengthen the Partnership’s balance sheet while also expanding the return of capital program through the Partnership’s common unit repurchase program. The Partnership is not required to pay distributions to its common unitholders on a quarterly or other basis. The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented: Distributions (In thousands) Period Amount per Unit Operating Company Distributions to Diamondback Common Unitholders (1) Declaration Date Unitholder Record Date Payment Date Q4 2020 $ 0.14 $ 12,699 $ 9,162 February 19, 2021 March 4, 2021 March 11, 2021 Q1 2021 $ 0.25 $ 22,678 $ 16,230 April 27, 2021 May 13, 2021 May 20, 2021 (1) Includes $0.1 million and $0.2 million paid to Diamondback for the fourth quarter of 2020 and the first quarter of 2021 distributions, respectively. 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. Change in Ownership of Consolidated Subsidiaries Non-controlling interest in the accompanying condensed consolidated financial statements represents Diamondback’s ownership in the net assets of the Operating Company. Diamondback’s relative ownership interest in the Operating Company can change due to the Partnership’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on the Partnership’s units. These changes in ownership percentage and the disproportionate allocation of net income (loss) to Diamondback discussed below result in adjustments to non-controlling interest and common unitholder equity, tax effected. The following table summarizes the changes in common unitholder equity due to changes in ownership interest during the period: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In thousands) Net income (loss) attributable to the Partnership $ 4,662 $ 1,642 Change in ownership of consolidated subsidiaries 1,614 4,301 Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest $ 6,276 $ 5,943 There were no changes in ownership of consolidated subsidiaries during the three and six months ended June 30, 2020. Allocation of Net Income The Partnership, as managing member of the Operating Company, has entered into an agreement whereby special allocations of the Operating Company’s income and gains over losses and deductions (but before depletion) are to be made to Diamondback through 2023. These special income allocations will reduce the taxable income allocated to the Partnership’s common unitholders. |
EARNINGS PER COMMON UNIT
EARNINGS PER COMMON UNIT | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON UNIT | EARNINGS PER COMMON UNIT The net income (loss) per common unit on the condensed consolidated statements of operations is based on the net income (loss) of the Partnership for the three and six months ended June 30, 2021 and 2020, which is the amount of net income (loss) attributable to the Partnership’s common units. The Partnership’s net income (loss) 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— Unitholders' Equity and Partnership Distributions . Basic net income (loss) per common unit is calculated by dividing net income (loss) by the weighted-average number of common units outstanding during the period. Diluted net income (loss) per common unit gives effect, when applicable, to unvested common units granted under the LTIP. A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per unit amounts) Net income (loss) attributable to the period $ 4,662 $ (21,752) $ 1,642 $ (163,921) Less: net income (loss) allocated to participating securities (1) (55) (4) (79) (24) Net income (loss) attributable to common unitholders $ 4,607 $ (21,756) $ 1,563 $ (163,945) Weighted average common units outstanding: Basic weighted average common units outstanding 64,672 67,831 65,014 67,827 Effect of dilutive securities: Potential common units issuable (2) 123 — 137 — Diluted weighted average common units outstanding 64,795 67,831 65,151 67,827 Net income (loss) per common unit, basic $ 0.07 $ (0.32) $ 0.03 $ (2.42) Net income (loss) per common unit, diluted $ 0.07 $ (0.32) $ 0.03 $ (2.42) (1) Distribution equivalent rights granted to employees are considered participating securities. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the dates indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except for tax rate) Provision for (benefit from) income taxes $ — $ — $ 35 $ 142,466 Effective tax rate — % — % 0.1 % (986.6) % The Partnership’s effective income tax rates for the three and six months ended June 30, 2021 and 2020 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income for the period primarily due to net income attributable to the non-controlling interest and the impact of maintaining a valuation allowance on the Partnership’s deferred tax assets. For the six months ended June 30, 2020 , the Partnership also recorded discrete income tax expense of approximately $142.5 million related to application of a valuation allowance on the Partnership’s beginning-of-year deferred tax assets. As of June 30, 2021 and 2020, the Partnership maintained a full valuation allowance against its deferred tax assets, based on its assessment of all available evidence, both positive and negative, supporting realizability of the Partnership’s deferred tax assets. |
DERIVATIVES
DERIVATIVES | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVESAll derivative financial instruments are recorded at fair value. The Partnership has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.” Commodity Contracts The Partnership historically has used fixed price swap contracts, fixed price basis swap contracts and costless collars with corresponding put and call options to reduce price volatility associated with certain of its royalty income. Under the Partnership’s costless collar contracts, each collar has an established floor price and ceiling price. When the settlement price is below the floor price, the counterparty is required to make a payment to the Partnership and when the settlement price is above the ceiling price, the Partnership is required to make a payment to the counterparty. When the settlement price is between the floor and the ceiling, there is no payment required. The Partnership’s derivative contracts are based upon reported settlement prices on commodity exchanges, with crude oil derivative settlements based on New York Mercantile Exchange West Texas Intermediate pricing (Cushing) and with natural gas derivative settlements based on the New York Mercantile Exchange Henry Hub pricing. By using derivative instruments to economically hedge exposure to changes in commodity prices, the Partnership exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Partnership, which creates credit risk. The Partnership’s counterparties are all participants in the amended and restated credit agreement, which is secured by substantially all of the assets of the guarantor subsidiaries; therefore, the Partnership is not required to post any collateral. The Partnership’s counterparties have been determined to have an acceptable credit risk; therefore, the Partnership does not require collateral from its counterparties. As of June 30, 2021, the Partnership had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Swaps Collars Puts Settlement Month Settlement Year Type of Contract Bbls/Mcf Per Day Index Weighted Average Differential Weighted Average Fixed Price Weighted Average Floor Price Weighted Average Ceiling Price Strike Price OIL Jul. - Dec. 2021 Collars 10,000 WTI Cushing $— $— $30.00 $43.05 $— Jan. - Mar. 2022 Collars 2,500 WTI Cushing $— $— $45.00 $79.55 $— Jan. - Mar. 2022 Puts (1) 5,000 WTI Cushing $— $— $— $— $47.52 NATURAL GAS Jan. - Dec. 2022 Collars 20,000 Henry Hub $— $— $2.50 $4.62 $— (1) Includes immaterial deferred premiums. Balance Sheet Offsetting of Derivative Assets and Liabilities The fair value of derivative instruments is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions, including any deferred premiums, that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 11— Fair Value Measurements for further details. Gains and Losses on Derivative Instruments The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations and the net cash receipts (payments) on derivatives for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Gain (loss) on derivative instruments $ (29,546) $ (34,443) $ (61,050) $ (42,385) Net cash receipts (payments) on derivatives $ (20,940) $ (2,101) $ (35,882) $ (2,554) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Partnership’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Partnership uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis Certain assets and liabilities are reported at fair value on a recurring basis, including the Partnership’s derivative instruments. The fair values of the Partnership’s derivative contracts are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 in puts. The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020. The net amounts are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 758 $ — $ 758 $ (758) $ — Liabilities: Current: Derivative instruments $ — $ 52,520 $ — $ 52,520 $ (758) $ 51,762 As of December 31, 2020 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 2,340 $ — $ 2,340 $ (2,340) $ — Liabilities: Current: Derivative instruments $ — $ 28,933 $ — $ 28,933 $ (2,340) $ 26,593 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Debt: Revolving credit facility $ 62,000 $ 62,000 $ 84,000 $ 84,000 5.375% senior notes due 2027 (1) $ 472,180 $ 503,935 $ 471,644 $ 501,439 (1) The carrying value includes associated deferred loan costs and any discount. The fair value of the Operating Company’s revolving credit facility approximates the carrying value based on borrowing rates available to the Partnership for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Notes was determined using the June 30, 2021 quoted market price, a Level 1 classification in the fair value hierarchy. Fair Value of Financial Assets The Partnership has other financial instruments consisting of cash and cash equivalents, royalty income receivable, other current assets, accounts payable and accrued liabilities. The carrying value of these instruments approximate their fair value because of the short-term nature of the instruments. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Partnership is a party to various routine legal proceedings, disputes and claims from time to time arising in the ordinary course of its business, including those that arise from interpretation of federal and state laws and regulations affecting the crude oil and natural gas industry. These proceedings, disputes and claims may include differing interpretations as to the prices at which crude oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, title claims, environmental issues and other matters. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Partnership, cannot be predicted with certainty, the Partnership’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. The Partnership’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Partnership’s assessment. The Partnership records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSCash Distribution On July 28, 2021 , the board of directors of the General Partner approved a cash distribution for the second quarter of 2021 of $0.33 per common unit, payable on August 19, 2021 , to eligible unitholders of record at the close of business on August 12, 2021 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization Viper Energy Partners LP (the “Partnership”) is a publicly traded Delaware limited partnership focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin. As of June 30, 2021, Viper Energy Partners GP LLC (the “General Partner”) held a 100% general partner interest in the Partnership and Diamondback Energy, Inc. (“Diamondback”) beneficially owned an approximate 59% o f the Partnership’s total limited partner units outstanding. Diamondback owns and controls the General Partner. Basis of Presentation The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All material intercompany balances and transactions have been eliminated upon consolidation. We report our operations in one reportable segment. These condensed consolidated 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 SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2020, which contains a summary of the Partnership’s significant accounting policies and other disclosures. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported total assets, total liabilities, unitholders’ equity, results of operations or cash flows. |
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 as of the date of the financial statements. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19 and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets resulted in significant negative pricing pressure in the first half of 2020, followed by a recovery in pricing and an increase in demand in the second half of 2020 and into 2021. The financial results of companies in the oil and natural gas industry have been impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each particular circumstance. 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 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes”. This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance and is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Partnership adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Partnership considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable, previously disclosed, or not material upon adoption. |
Revenue from Contracts with Customers | 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 at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Partnership’s contracts are tied to a market index. |
Fair Value Measurement | Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Partnership’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Partnership uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Recurring Basis |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: June 30, December 31, 2021 2020 (In thousands) Interest payable $ 4,321 $ 4,311 Ad valorem taxes payable 4,018 6,501 Derivatives instruments payable 8,489 7,392 Other 331 58 Total accrued liabilities $ 17,159 $ 18,262 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table disaggregates the Partnership’s total royalty income by product type: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Oil income $ 93,952 $ 27,617 $ 172,296 $ 99,817 Natural gas income 9,533 1,234 18,577 1,578 Natural gas liquids income 9,973 3,593 19,097 7,878 Total royalty income $ 113,458 $ 32,444 $ 209,970 $ 109,273 |
OIL AND NATURAL GAS INTERESTS (
OIL AND NATURAL GAS INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 (In thousands) Oil and natural gas interests: Subject to depletion $ 1,577,105 $ 1,530,636 Not subject to depletion 1,319,256 1,364,906 Gross oil and natural gas interests 2,896,361 2,895,542 Accumulated depletion and impairment (545,040) (496,176) Oil and natural gas interests, net 2,351,321 2,399,366 Land 5,688 5,688 Property, net of accumulated depletion and impairment $ 2,357,009 $ 2,405,054 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-Term Debt | Long-term debt consisted of the following as of the dates indicated: June 30, December 31, 2021 2020 (In thousands) 5.375% senior notes due 2027 $ 479,938 $ 479,938 Revolving credit facility 62,000 84,000 Unamortized debt issuance costs (1,907) (2,058) Unamortized discount (5,851) (6,236) Total long-term debt $ 534,180 $ 555,644 |
Schedule of Line of Credit Facilities, Covenant Terms | 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, excess cash and entering into certain swap agreements and require the maintenance of the financial ratios described below. The amendment to the credit agreement added a financial covenant requirement for the ratio of secured debt to EBITDAX as included 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 Ratio of secured debt to EBITDAX, as defined in the credit agreement Not greater than 2.5 to 1.0 |
UNITHOLDERS_ EQUITY AND DISTR_2
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Cash Distributions | The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented: Distributions (In thousands) Period Amount per Unit Operating Company Distributions to Diamondback Common Unitholders (1) Declaration Date Unitholder Record Date Payment Date Q4 2020 $ 0.14 $ 12,699 $ 9,162 February 19, 2021 March 4, 2021 March 11, 2021 Q1 2021 $ 0.25 $ 22,678 $ 16,230 April 27, 2021 May 13, 2021 May 20, 2021 (1) Includes $0.1 million and $0.2 million paid to Diamondback for the fourth quarter of 2020 and the first quarter of 2021 distributions, respectively. |
Schedule of Change in Ownership Interest | The following table summarizes the changes in common unitholder equity due to changes in ownership interest during the period: Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 (In thousands) Net income (loss) attributable to the Partnership $ 4,662 $ 1,642 Change in ownership of consolidated subsidiaries 1,614 4,301 Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest $ 6,276 $ 5,943 |
EARNINGS PER COMMON UNIT (Table
EARNINGS PER COMMON UNIT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income Per Common Unit | A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per unit amounts) Net income (loss) attributable to the period $ 4,662 $ (21,752) $ 1,642 $ (163,921) Less: net income (loss) allocated to participating securities (1) (55) (4) (79) (24) Net income (loss) attributable to common unitholders $ 4,607 $ (21,756) $ 1,563 $ (163,945) Weighted average common units outstanding: Basic weighted average common units outstanding 64,672 67,831 65,014 67,827 Effect of dilutive securities: Potential common units issuable (2) 123 — 137 — Diluted weighted average common units outstanding 64,795 67,831 65,151 67,827 Net income (loss) per common unit, basic $ 0.07 $ (0.32) $ 0.03 $ (2.42) Net income (loss) per common unit, diluted $ 0.07 $ (0.32) $ 0.03 $ (2.42) (1) Distribution equivalent rights granted to employees are considered participating securities. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the dates indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except for tax rate) Provision for (benefit from) income taxes $ — $ — $ 35 $ 142,466 Effective tax rate — % — % 0.1 % (986.6) % |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of June 30, 2021, the Partnership had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed. Swaps Collars Puts Settlement Month Settlement Year Type of Contract Bbls/Mcf Per Day Index Weighted Average Differential Weighted Average Fixed Price Weighted Average Floor Price Weighted Average Ceiling Price Strike Price OIL Jul. - Dec. 2021 Collars 10,000 WTI Cushing $— $— $30.00 $43.05 $— Jan. - Mar. 2022 Collars 2,500 WTI Cushing $— $— $45.00 $79.55 $— Jan. - Mar. 2022 Puts (1) 5,000 WTI Cushing $— $— $— $— $47.52 NATURAL GAS Jan. - Dec. 2022 Collars 20,000 Henry Hub $— $— $2.50 $4.62 $— (1) Includes immaterial deferred premiums. |
Summary of Derivative Contract Gains and Losses Included in the Consolidated Statements of Operations | The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations and the net cash receipts (payments) on derivatives for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Gain (loss) on derivative instruments $ (29,546) $ (34,443) $ (61,050) $ (42,385) Net cash receipts (payments) on derivatives $ (20,940) $ (2,101) $ (35,882) $ (2,554) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Consolidated Balance Sheets | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020. The net amounts are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 758 $ — $ 758 $ (758) $ — Liabilities: Current: Derivative instruments $ — $ 52,520 $ — $ 52,520 $ (758) $ 51,762 As of December 31, 2020 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 2,340 $ — $ 2,340 $ (2,340) $ — Liabilities: Current: Derivative instruments $ — $ 28,933 $ — $ 28,933 $ (2,340) $ 26,593 |
Offsetting Assets | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020. The net amounts are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 758 $ — $ 758 $ (758) $ — Liabilities: Current: Derivative instruments $ — $ 52,520 $ — $ 52,520 $ (758) $ 51,762 As of December 31, 2020 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 2,340 $ — $ 2,340 $ (2,340) $ — Liabilities: Current: Derivative instruments $ — $ 28,933 $ — $ 28,933 $ (2,340) $ 26,593 |
Offsetting Liabilities | The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties, and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of June 30, 2021 and December 31, 2020. The net amounts are classified as current or noncurrent based on their anticipated settlement dates. As of June 30, 2021 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 758 $ — $ 758 $ (758) $ — Liabilities: Current: Derivative instruments $ — $ 52,520 $ — $ 52,520 $ (758) $ 51,762 As of December 31, 2020 Level 1 Level 2 Level 3 Total Gross Fair Value Gross Amounts Offset in Balance Sheet Net Fair Value Presented in Balance Sheet (In thousands) Assets: Current: Derivative instruments $ — $ 2,340 $ — $ 2,340 $ (2,340) $ — Liabilities: Current: Derivative instruments $ — $ 28,933 $ — $ 28,933 $ (2,340) $ 26,593 |
Fair Value Measurements, Nonrecurring | The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value (In thousands) Debt: Revolving credit facility $ 62,000 $ 62,000 $ 84,000 $ 84,000 5.375% senior notes due 2027 (1) $ 472,180 $ 503,935 $ 471,644 $ 501,439 (1) The carrying value includes associated deferred loan costs and any discount. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 6 Months Ended |
Jun. 30, 2021segment | |
Limited Partners' Capital Account [Line Items] | |
Number of reportable segments | 1 |
Viper Energy Partners LP | Diamondback Energy, Inc. | |
Limited Partners' Capital Account [Line Items] | |
Percent of general partner interest | 100.00% |
Percent of limited partnership interest | 59.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Interest payable | $ 4,321 | $ 4,311 |
Ad valorem taxes payable | 4,018 | 6,501 |
Derivatives instruments payable | 8,489 | 7,392 |
Other | 331 | 58 |
Total accrued liabilities | $ 17,159 | $ 18,262 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Royalty income | $ 113,458 | $ 32,444 | $ 209,970 | $ 109,273 |
Oil income | ||||
Disaggregation of Revenue [Line Items] | ||||
Royalty income | 93,952 | 27,617 | 172,296 | 99,817 |
Natural gas income | ||||
Disaggregation of Revenue [Line Items] | ||||
Royalty income | 9,533 | 1,234 | 18,577 | 1,578 |
Natural gas liquids income | ||||
Disaggregation of Revenue [Line Items] | ||||
Royalty income | $ 9,973 | $ 3,593 | $ 19,097 | $ 7,878 |
ACQUISITIONS - 2020 Activity (D
ACQUISITIONS - 2020 Activity (Details) - Mineral interests in Permian Basin $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)a | |
Business Acquisition [Line Items] | |
Mineral interests acquired, gross acres (in acre) | 4,948 |
Mineral interests acquired, net royalty acres (in acre) | 410 |
Aggregate purchase price | $ | $ 63.4 |
OIL AND NATURAL GAS INTERESTS_2
OIL AND NATURAL GAS INTERESTS (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)a | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)a | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)a | |
Oil and natural gas interests: | |||||
Subject to depletion | $ 1,577,105,000 | $ 1,577,105,000 | $ 1,530,636,000 | ||
Not subject to depletion | 1,319,256,000 | 1,319,256,000 | 1,364,906,000 | ||
Gross oil and natural gas interests | 2,896,361,000 | 2,896,361,000 | 2,895,542,000 | ||
Accumulated depletion and impairment | (545,040,000) | (545,040,000) | (496,176,000) | ||
Oil and natural gas interests, net | 2,351,321,000 | 2,351,321,000 | 2,399,366,000 | ||
Land | 5,688,000 | 5,688,000 | 5,688,000 | ||
Property, net | $ 2,357,009,000 | $ 2,357,009,000 | $ 2,405,054,000 | ||
Mineral properties, net royalty acres | a | 24,341 | 24,341 | 24,350 | ||
Impairment | $ 0 | $ 0 | $ 0 | $ 0 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||
Unamortized debt issuance costs | $ (1,907) | $ (2,058) |
Unamortized discount | (5,851) | (6,236) |
Total long-term debt | 534,180 | 555,644 |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Long term debt gross | 62,000 | 84,000 |
5.375 % Senior Notes due 2027 | ||
Line of Credit Facility [Line Items] | ||
Long term debt gross | $ 479,938 | $ 479,938 |
5.375 % Senior Notes due 2027 | Senior Notes | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.375% |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 02, 2021 | |
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Credit facility maximum borrowing capacity | $ 2,000,000,000 | ||||
Credit facility borrowing base | $ 580,000,000 | ||||
Commitment amount | $ 500,000,000 | $ 500,000,000 | |||
Debt outstanding | 62,000,000 | 62,000,000 | |||
Credit facility remaining borrowing capacity | $ 438,000,000 | $ 438,000,000 | |||
Weighted average interest rate | 1.93% | 1.90% | 2.41% | 2.82% | |
Revolving credit facility | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee on the unused portion of the borrowing base | 0.375% | ||||
Revolving credit facility | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee on the unused portion of the borrowing base | 0.50% | ||||
Revolving credit facility | Fed Funds Effective Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Revolving credit facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Revolving credit facility | LIBOR | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt applicable margin | 2.00% | ||||
Revolving credit facility | LIBOR | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt applicable margin | 3.00% | ||||
Revolving credit facility | Base Rate | Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Debt applicable margin | 1.00% | ||||
Revolving credit facility | Base Rate | Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Debt applicable margin | 2.00% | ||||
Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Maximum issuance of unsecured debt | $ 1,000,000,000 | $ 1,000,000,000 | |||
Reduction of borrowing base | 25.00% | 25.00% | |||
5.375 % Senior Notes due 2027 | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.375% | 5.375% | |||
Debt instrument, face amount | $ 479,900,000 | $ 479,900,000 |
DEBT - Financial Covenants (Det
DEBT - Financial Covenants (Details) - Maximum | Jun. 30, 2021 |
Line of Credit Facility [Line Items] | |
Ratio of total net debt to EBITDAX, as defined in the credit agreement | 4 |
Ratio of current assets to liabilities, as defined in the credit agreement | 1 |
Ratio of secured debt to EBITDAX, as defined in the credit agreement | 2.5 |
UNITHOLDERS_ EQUITY AND DISTR_3
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 30, 2021 | Dec. 31, 2020 | Nov. 06, 2020 | |
Limited Partners' Capital Account [Line Items] | ||||||||
Stock repurchased | $ 6,779,000 | $ 13,043,000 | ||||||
Cash Distribution | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Cash distributions, period after end of each quarter | 60 days | |||||||
Limited Partner | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Changes in ownership | $ 6,276,000 | $ 0 | $ 5,943,000 | $ 0 | ||||
Viper Energy Partners LP | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Percent of limited partnership interest | 59.00% | |||||||
Ownership percentage by noncontrolling owners | 58.00% | 58.00% | ||||||
Common Units | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners' capital account, units issued (in shares) | 64,546,377 | 64,546,377 | 65,817,281 | |||||
Limited partners' capital account, units outstanding (in shares) | 64,546,377 | 64,546,377 | 65,817,281 | |||||
Authorized amount | $ 100,000,000 | |||||||
Stock repurchased | $ 6,800,000 | $ 19,800,000 | ||||||
Remaining authorized repurchase amount | $ 56,200,000 | $ 56,200,000 | ||||||
Common Units | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners' capital account, units outstanding (in shares) | 731,500 | 731,500 | ||||||
Class B Units | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners' capital account, units issued (in shares) | 90,709,946 | 90,709,946 | 90,709,946 | |||||
Limited partners' capital account, units outstanding (in shares) | 90,709,946 | 90,709,946 | 90,709,946 | 90,709,946 | ||||
Class B Units | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners' capital account, units outstanding (in shares) | 90,709,946 | 90,709,946 | ||||||
Operating Company Units | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners' capital account, units outstanding (in shares) | 90,709,946 | 90,709,946 |
UNITHOLDERS_ EQUITY AND DISTR_4
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Partnership Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 27, 2021 | Feb. 19, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Limited Partners' Capital Account [Line Items] | |||||||
Cash distributions, amount per common unit (in USD per share) | $ 0.14 | ||||||
Distributions | $ 15,992 | $ 9,036 | $ 6,710 | $ 30,194 | |||
Cash Distribution | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Cash distributions, amount per common unit (in USD per share) | $ 0.25 | ||||||
Cash Distribution | Operating Company Units | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Distributions | $ 22,678 | $ 12,699 | |||||
Cash Distribution | Common Units | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Distributions | $ 16,230 | $ 9,162 | |||||
Cash Distribution | Common Units | Diamondback Energy, Inc. | |||||||
Limited Partners' Capital Account [Line Items] | |||||||
Distributions | $ 200 | $ 100 |
UNITHOLDERS_ EQUITY AND DISTR_5
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Ownership Interest in Subsidiary Changes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the period | $ 4,662,000 | $ (21,752,000) | $ 1,642,000 | $ (163,921,000) | |
Change in ownership of consolidated subsidiaries, net | 0 | $ 0 | |||
Limited Partner | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the period | 4,662,000 | 1,642,000 | |||
Change in ownership of consolidated subsidiaries, net | 1,614,000 | 4,301,000 | |||
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest | $ 6,276,000 | $ 0 | $ 5,943,000 | $ 0 |
EARNINGS PER COMMON UNIT (Detai
EARNINGS PER COMMON UNIT (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to the period | $ 4,662 | $ (21,752) | $ 1,642 | $ (163,921) |
Less: net income (loss) allocated to participating securities | (55) | (4) | (79) | (24) |
Net income (loss) attributable to common unitholders | 4,607 | (21,756) | 1,563 | (163,945) |
Net income (loss) attributable to common unitholders | $ 4,607 | $ (21,756) | $ 1,563 | $ (163,945) |
Basic weighted average common units outstanding (in shares) | 64,672,000 | 67,831,000 | 65,014,000 | 67,827,000 |
Effect of dilutive securities: | ||||
Effect of dilutive securities: Potential common units issuable (in shares) | 123,000 | 0 | 137,000 | 0 |
Diluted weighted average common units outstanding (in shares) | 64,795,000 | 67,831,000 | 65,151,000 | 67,827,000 |
Net income (loss) per common unit, basic (in USD per share) | $ 0.07 | $ (0.32) | $ 0.03 | $ (2.42) |
Net income (loss) per common unit, diluted (in USD per share) | $ 0.07 | $ (0.32) | $ 0.03 | $ (2.42) |
Anti-dilutive for potentially dilute basic earnings per common unit (in shares) | 39 | 0 | 4,974 | 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 0 | $ 0 | $ 35 | $ 142,466 |
Effective tax rate | 0.00% | 0.00% | 0.10% | (986.60%) |
DERIVATIVES - Open Derivative P
DERIVATIVES - Open Derivative Positions (Details) | 6 Months Ended |
Jun. 30, 2021$ / bblbbl | |
OIL | 2021 | WTI Cushing | Collars | |
Derivative [Line Items] | |
Volume (Bbl) | bbl | 10,000 |
Weighted Average Differential (USD per Bbl) | 0 |
Weighted Average Fixed Price (USD per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 30 |
Weighted Average Ceiling Price (USD per Bbl) | 43.05 |
Strike Price (USD per Bbl) | 0 |
OIL | 2022 | WTI Cushing | Collars | |
Derivative [Line Items] | |
Volume (Bbl) | bbl | 2,500 |
Weighted Average Differential (USD per Bbl) | 0 |
Weighted Average Fixed Price (USD per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 45 |
Weighted Average Ceiling Price (USD per Bbl) | 79.55 |
Strike Price (USD per Bbl) | 0 |
OIL | 2022 | WTI Cushing | Puts | |
Derivative [Line Items] | |
Volume (Bbl) | bbl | 5,000 |
Weighted Average Differential (USD per Bbl) | 0 |
Weighted Average Fixed Price (USD per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 0 |
Weighted Average Ceiling Price (USD per Bbl) | 0 |
Strike Price (USD per Bbl) | 47.52 |
NATURAL GAS | 2022 | Henry Hub | Collars | |
Derivative [Line Items] | |
Volume (Bbl) | bbl | 20,000 |
Weighted Average Differential (USD per Bbl) | 0 |
Weighted Average Fixed Price (USD per Bbl) | 0 |
Weighted Average Floor Price (USD per Bbl) | 2.50 |
Weighted Average Ceiling Price (USD per Bbl) | 4.62 |
Strike Price (USD per Bbl) | 0 |
DERIVATIVES - Gains and Losses
DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Gain (loss) on derivative instruments | $ (29,546) | $ (34,443) | $ (61,050) | $ (42,385) |
Net cash receipts (payments) on derivatives | $ (20,940) | $ (2,101) | $ (35,882) | $ (2,554) |
FAIR VALUE MEASUREMENTS - Recur
FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current: | ||
Net Fair Value Presented in Balance Sheet | $ 51,762 | $ 26,593 |
Fair Value, Recurring | Derivative instruments | ||
Current: | ||
Total Gross Fair Value | 758 | 2,340 |
Gross Amounts Offset in Balance Sheet | (758) | (2,340) |
Net Fair Value Presented in Balance Sheet | 0 | 0 |
Current: | ||
Total Gross Fair Value | 52,520 | 28,933 |
Gross Amounts Offset in Balance Sheet | (758) | (2,340) |
Net Fair Value Presented in Balance Sheet | 51,762 | 26,593 |
Fair Value, Recurring | Level 1 | Derivative instruments | ||
Current: | ||
Total Gross Fair Value | 0 | 0 |
Current: | ||
Total Gross Fair Value | 0 | 0 |
Fair Value, Recurring | Level 2 | Derivative instruments | ||
Current: | ||
Total Gross Fair Value | 758 | 2,340 |
Current: | ||
Total Gross Fair Value | 52,520 | 28,933 |
Fair Value, Recurring | Level 3 | Derivative instruments | ||
Current: | ||
Total Gross Fair Value | 0 | 0 |
Current: | ||
Total Gross Fair Value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
5.375% senior notes due 2027 | Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, interest rate, stated percentage | 5.375% | |
Carrying Value | Fair Value, Nonrecurring | 5.375% senior notes due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 472,180 | $ 471,644 |
Carrying Value | Fair Value, Nonrecurring | Revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 62,000 | 84,000 |
Fair Value | Fair Value, Nonrecurring | 5.375% senior notes due 2027 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | 503,935 | 501,439 |
Fair Value | Fair Value, Nonrecurring | Revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt instrument, fair value | $ 62,000 | $ 84,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - $ / shares | Jul. 28, 2021 | Apr. 27, 2021 | Feb. 19, 2021 |
Subsequent Event [Line Items] | |||
Cash distributions, amount per common unit (in USD per share) | $ 0.14 | ||
Cash Distribution | |||
Subsequent Event [Line Items] | |||
Cash distributions, amount per common unit (in USD per share) | $ 0.25 | ||
Cash Distribution | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Cash distributions, amount per common unit (in USD per share) | $ 0.33 |