Cover
Cover - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | May 28, 2019 | Dec. 31, 2018 | |
Entity Information [Line Items] | |||||
Document Type | 10-K | ||||
Document Annual Report | true | ||||
Document Period End Date | Dec. 31, 2019 | ||||
Document Transition Report | false | ||||
Entity File Number | 001-38919 | ||||
Entity Registrant Name | Rattler Midstream LP | ||||
Entity Incorporation, State or Country Code | DE | ||||
Entity Tax Identification Number | 83-1404608 | ||||
Entity Address, Address Line One | 500 West Texas | ||||
Entity Address, Address Line Two | 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 | RTLR | ||||
Security Exchange Name | NASDAQ | ||||
Entity Well-known Seasoned Issuer | No | ||||
Entity Voluntary Filers | No | ||||
Entity Current Reporting Status | Yes | ||||
Entity Interactive Data Current | Yes | ||||
Entity Filer Category | Non-accelerated Filer | ||||
Entity Small Business | false | ||||
Entity Emerging Growth Company | true | ||||
Entity Ex Transition Period | true | ||||
Entity Shell Company | false | ||||
Entity Public Float | $ 844.6 | ||||
Entity Common Stock, Shares Outstanding | 43,700,000 | ||||
Amendment Flag | false | ||||
Document Fiscal Year Focus | 2019 | ||||
Document Fiscal Period Focus | FY | ||||
Entity Central Index Key | 0001748773 | ||||
Current Fiscal Year End Date | --12-31 | ||||
Class B Units | |||||
Entity Information [Line Items] | |||||
Units outstanding (in shares) | 107,815,152 | 107,815,152 | 0 | 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Current assets: | |||
Cash | $ 10,633 | $ 8,564 | [1] |
Accounts receivable—related party | 50,270 | 18,274 | [1] |
Accounts receivable—third party | 9,071 | 1,849 | [1] |
Sourced water inventory | 14,325 | 9,200 | [1] |
Other current assets | 1,428 | 4,209 | [1] |
Total current assets | 85,727 | 42,096 | [1] |
Property, plant and equipment: | |||
Land | 88,509 | 70,373 | [1] |
Property, plant and equipment | 930,768 | 415,888 | [1] |
Accumulated depreciation, amortization and accretion | (61,132) | (28,317) | [1] |
Property, plant and equipment, net | 958,145 | 457,944 | [1] |
Right of use assets | 418 | ||
Equity method investments | 479,558 | 0 | [1] |
Real estate assets, net | 98,679 | 93,023 | [1] |
Intangible lease assets, net | 8,070 | 10,954 | [1] |
Other assets | 5,796 | 0 | [1] |
Total assets | 1,636,393 | 604,017 | [1] |
Current liabilities: | |||
Accounts payable | 147 | 100 | [1] |
Accrued liabilities | 76,625 | 51,804 | [1] |
Taxes payable | 189 | 11,514 | [1] |
Short-term lease liability | 418 | ||
Total current liabilities | 77,379 | 63,418 | [1] |
Long-term debt | 424,000 | 0 | [1] |
Asset retirement obligations | 11,347 | 561 | [1] |
Deferred income taxes | 7,827 | 12,912 | [1] |
Total liabilities | 520,553 | 76,891 | [1] |
Commitments and contingencies (Note 17) | |||
Unitholders' equity: | |||
Limited partners member's equity—Diamondback | 0 | 527,125 | [1] |
General partner—Diamondback | 979 | 0 | [1] |
Common units—public (43,700,000 units issued and outstanding as of December 31, 2019) | 737,777 | 0 | [1] |
Class B units—Diamondback (107,815,152 units issued and outstanding as of December 31, 2019) | 979 | 1 | [1] |
Accumulated other comprehensive loss | (198) | 0 | [1] |
Total Rattler Midstream LP unitholders’ equity | 739,537 | 527,126 | [1] |
Non-controlling interest | 376,928 | 0 | [1] |
Non-controlling interest in accumulated other comprehensive loss | (625) | 0 | [1] |
Total equity | 1,115,840 | 527,126 | [1] |
Total liabilities and unitholders’ equity | $ 1,636,393 | $ 604,017 | [1] |
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Feb. 14, 2020 | Dec. 31, 2019 | May 28, 2019 | Dec. 31, 2018 |
Common Units | ||||
Common units issued (in shares) | 43,700,000 | 0 | ||
Units outstanding (in shares) | 43,700,000 | 0 | 0 | |
Class B Units | ||||
Common units issued (in shares) | 107,815,152 | 107,815,152 | 0 | |
Units outstanding (in shares) | 107,815,152 | 107,815,152 | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Revenues: | |||||
Total revenues | $ 447,673 | $ 184,467 | $ 39,295 | ||
Costs and expenses: | |||||
Direct operating expenses | 106,311 | 33,714 | 10,557 | ||
Cost of goods sold (exclusive of depreciation and amortization) | 62,856 | 38,852 | 0 | ||
Real estate operating expenses | 2,643 | 1,872 | 0 | ||
Depreciation, amortization and accretion | 42,336 | 25,134 | 3,486 | ||
General and administrative expenses | 12,663 | 1,999 | 1,265 | ||
Loss on disposal of property, plant and equipment | 1,524 | 2,577 | 0 | ||
Total costs and expenses | 228,333 | 104,148 | 15,308 | ||
Income from operations | 219,340 | 80,319 | 23,987 | ||
Other income (expense): | |||||
Interest expense, net | (1,039) | 0 | 0 | ||
Income (loss) from equity method investments | (6,329) | 0 | 1,366 | ||
Total other income (expense), net | (7,368) | 0 | 1,366 | ||
Net income before income taxes | 211,972 | 80,319 | 25,353 | ||
Provision for income taxes | 26,253 | 17,359 | 4,688 | ||
Net income | $ 185,719 | 62,960 | 20,665 | ||
Weighted average number of limited partner common units outstanding: | |||||
Basic (in shares) | 43,622 | ||||
Diluted (in shares) | 43,622 | ||||
Revenues—related party | |||||
Revenues: | |||||
Total revenues | $ 409,120 | 169,396 | 38,414 | ||
Revenues—third party | |||||
Revenues: | |||||
Total revenues | 24,324 | 3,292 | 881 | ||
Rental income—related party | |||||
Revenues: | |||||
Total revenues | 4,771 | 2,383 | 0 | ||
Rental income—third party | |||||
Revenues: | |||||
Total revenues | 7,890 | 8,125 | 0 | ||
Other real estate income—related party | |||||
Revenues: | |||||
Total revenues | 379 | 228 | 0 | ||
Other real estate income—third party | |||||
Revenues: | |||||
Total revenues | $ 1,189 | $ 1,043 | $ 0 | ||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||
May 27, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Statement of Comprehensive Income [Abstract] | |||||||
Net income | $ 65,995 | $ 119,724 | $ 185,719 | $ 62,960 | $ 20,665 | ||
Other comprehensive income: | |||||||
Change in accumulated other comprehensive loss of equity method investees attributable to non-controlling interest | (625) | 0 | 0 | ||||
Change in accumulated other comprehensive loss of equity method investees attributable to limited partner | (198) | 0 | 0 | ||||
Total other comprehensive income | (823) | 0 | 0 | ||||
Comprehensive income | $ 65,995 | $ 184,896 | $ 62,960 | $ 20,665 | |||
Comprehensive income attributable to non-controlling interest | 90,297 | ||||||
Comprehensive income attributable to Rattler Midstream LP | $ 28,604 | ||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Unitholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | General Partner | Limited Partners Member's EquityLimited Partners | Common UnitsLimited Partners | Class B UnitsLimited Partners | Non-Controlling Interest | Accumulated Other Comprehensive Income | Non-Controlling Interest-Accumulated Other Comprehensive Income | |
Beginning balance at Dec. 31, 2016 | [1] | $ 92,729 | $ 0 | $ 92,729 | $ 0 | $ 0 | $ 0 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 58,742 | 58,742 | |||||||
Net income | 2,938 | 2,938 | |||||||
Ending balance at Mar. 31, 2017 | [1] | 154,409 | 0 | 154,409 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Mar. 31, 2017 | [1] | 0 | 0 | ||||||
Beginning balance at Dec. 31, 2016 | [1] | 92,729 | 0 | 92,729 | $ 0 | $ 0 | 0 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Other comprehensive income | [1] | 0 | |||||||
Net income | [1] | 20,665 | |||||||
Ending balance at Dec. 31, 2017 | [1] | 292,608 | 0 | 292,608 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Dec. 31, 2017 | [1] | 0 | 0 | ||||||
Beginning balance at Mar. 31, 2017 | [1] | 154,409 | 0 | 154,409 | $ 0 | $ 0 | 0 | ||
Beginning balance (in shares) at Mar. 31, 2017 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | (3,679) | (3,679) | |||||||
Net income | 5,146 | 5,146 | |||||||
Ending balance at Jun. 30, 2017 | [1] | 155,876 | 0 | 155,876 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Jun. 30, 2017 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 70,116 | 70,116 | |||||||
Net income | 3,185 | 3,185 | |||||||
Ending balance at Sep. 30, 2017 | [1] | 229,177 | 0 | 229,177 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Sep. 30, 2017 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 54,035 | 54,035 | |||||||
Net income | 9,396 | 9,396 | |||||||
Ending balance at Dec. 31, 2017 | [1] | 292,608 | 0 | 292,608 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Dec. 31, 2017 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 175,100 | 175,100 | |||||||
Net income | 14,396 | 14,396 | |||||||
Ending balance at Mar. 31, 2018 | [1] | 482,104 | 0 | 482,104 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Mar. 31, 2018 | [1] | 0 | 0 | ||||||
Beginning balance at Dec. 31, 2017 | [1] | 292,608 | 0 | 292,608 | $ 0 | $ 0 | 0 | ||
Beginning balance (in shares) at Dec. 31, 2017 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Other comprehensive income | [1] | 0 | |||||||
Net income | [1] | 62,960 | |||||||
Ending balance at Dec. 31, 2018 | [1] | 527,126 | 0 | 527,125 | $ 0 | $ 1 | 0 | ||
Ending balance (in shares) at Dec. 31, 2018 | [1] | 0 | 0 | ||||||
Beginning balance at Mar. 31, 2018 | [1] | 482,104 | 0 | 482,104 | $ 0 | $ 0 | 0 | ||
Beginning balance (in shares) at Mar. 31, 2018 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 3,417 | 3,417 | |||||||
Net income | 15,472 | 15,472 | |||||||
Ending balance at Jun. 30, 2018 | [1] | 500,993 | 0 | 500,993 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Jun. 30, 2018 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | (1,982) | (1,982) | |||||||
Net income | 17,780 | 17,780 | |||||||
Ending balance at Sep. 30, 2018 | [1] | 516,791 | 0 | 516,791 | $ 0 | $ 0 | 0 | ||
Ending balance (in shares) at Sep. 30, 2018 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | (4,977) | (4,978) | $ 1 | ||||||
Net income | 15,312 | 15,312 | |||||||
Ending balance at Dec. 31, 2018 | [1] | 527,126 | 0 | 527,125 | $ 0 | $ 1 | 0 | ||
Ending balance (in shares) at Dec. 31, 2018 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Contributions from Diamondback | 458,674 | 458,674 | |||||||
Net income | 39,356 | 39,356 | |||||||
Ending balance at Mar. 31, 2019 | 1,025,156 | 0 | 1,025,155 | $ 0 | $ 1 | 0 | |||
Ending balance (in shares) at Mar. 31, 2019 | 0 | 0 | |||||||
Beginning balance at Dec. 31, 2018 | [1] | 527,126 | 0 | 527,125 | $ 0 | $ 1 | 0 | ||
Beginning balance (in shares) at Dec. 31, 2018 | [1] | 0 | 0 | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Other comprehensive income | (823) | ||||||||
Net income | 185,719 | ||||||||
Ending balance at Dec. 31, 2019 | 1,115,840 | 979 | $ 737,777 | $ 979 | 376,928 | $ (198) | $ (625) | ||
Ending balance (in shares) at Dec. 31, 2019 | 43,700 | 107,815 | |||||||
Beginning balance at Mar. 31, 2019 | 1,025,156 | 0 | 1,025,155 | $ 0 | $ 1 | 0 | |||
Beginning balance (in shares) at Mar. 31, 2019 | 0 | 0 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Net income | 46,679 | ||||||||
Ending balance at Jun. 30, 2019 | 1,065,161 | 1,000 | 0 | $ 725,261 | $ 1,000 | 337,900 | 0 | 0 | |
Ending balance (in shares) at Jun. 30, 2019 | 43,700 | 107,815 | |||||||
Beginning balance at May. 28, 2019 | 1,018,083 | 0 | 1,018,082 | $ 0 | $ 1 | 0 | |||
Beginning balance (in shares) at May. 28, 2019 | 0 | 0 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Distributions to Diamondback | (726,513) | (726,513) | |||||||
Net proceeds from the offering - public (in shares) | 43,700 | ||||||||
Net proceeds from the offering - public | 719,627 | $ 719,627 | |||||||
Net proceeds from the offering - General Partner | 1,000 | 1,000 | |||||||
Net proceeds from the offering - Diamondback (in shares) | 107,815 | ||||||||
Net proceeds from the offering - Diamondback | 999 | $ 999 | |||||||
Unit-based compensation, net of distribution equivalent right payments | 831 | 831 | |||||||
Elimination of current and deferred tax liabilities | 31,094 | 31,094 | |||||||
Allocation of net investment to unitholder | 0 | (322,663) | 322,663 | ||||||
Net income | 20,040 | 4,803 | 15,237 | ||||||
Ending balance at Jun. 30, 2019 | 1,065,161 | 1,000 | 0 | $ 725,261 | $ 1,000 | 337,900 | 0 | 0 | |
Ending balance (in shares) at Jun. 30, 2019 | 43,700 | 107,815 | |||||||
Beginning balance at May. 28, 2019 | 1,018,083 | 0 | 1,018,082 | $ 0 | $ 1 | 0 | |||
Beginning balance (in shares) at May. 28, 2019 | 0 | 0 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Net income | 119,724 | ||||||||
Ending balance at Dec. 31, 2019 | 1,115,840 | 979 | $ 737,777 | $ 979 | 376,928 | (198) | (625) | ||
Ending balance (in shares) at Dec. 31, 2019 | 43,700 | 107,815 | |||||||
Beginning balance at Jun. 30, 2019 | 1,065,161 | 1,000 | $ 0 | $ 725,261 | $ 1,000 | 337,900 | 0 | 0 | |
Beginning balance (in shares) at Jun. 30, 2019 | 43,700 | 107,815 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Net proceeds from the offering - public | (251) | $ (251) | |||||||
Unit-based compensation, net of distribution equivalent right payments | 2,158 | 2,158 | |||||||
Net income | 48,080 | 11,531 | 36,549 | ||||||
Ending balance at Sep. 30, 2019 | 1,115,148 | 1,000 | $ 738,699 | $ 1,000 | 374,449 | 0 | 0 | ||
Ending balance (in shares) at Sep. 30, 2019 | 43,700 | 107,815 | |||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | |||||||||
Distributions to public | (14,858) | $ (14,858) | |||||||
Distributions to Diamondback | (21) | $ (21) | |||||||
Unit-based compensation, net of distribution equivalent right payments | 1,468 | 1,468 | |||||||
Distributions to General Partner | (21) | (21) | |||||||
Distributions to non-controlling interest | (36,657) | (36,657) | |||||||
Other comprehensive income | (823) | (198) | (625) | ||||||
Net income | 51,604 | 12,468 | 39,136 | ||||||
Ending balance at Dec. 31, 2019 | $ 1,115,840 | $ 979 | $ 737,777 | $ 979 | $ 376,928 | $ (198) | $ (625) | ||
Ending balance (in shares) at Dec. 31, 2019 | 43,700 | 107,815 | |||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Cash flows from operating activities: | ||||||
Net income | $ 185,719 | $ 62,960 | [1] | $ 20,665 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Provision for deferred income taxes | 26,253 | 5,845 | [1] | 4,471 | [1] | |
Depreciation, amortization and accretion | 42,336 | 25,134 | [1] | 3,486 | [1] | |
Loss on disposal of property, plant and equipment | 1,524 | 2,577 | [1] | 0 | [1] | |
Unit-based compensation expense | 5,208 | 0 | [1] | 0 | [1] | |
Loss (Income) from equity method investments | 6,329 | 0 | [1] | (1,366) | [1] | |
Changes in operating assets and liabilities: | ||||||
Accounts receivable—related party | (65,032) | 17,625 | [1] | (29,108) | [1] | |
Accounts receivable—third party | (1,212) | (1,849) | [1] | 0 | [1] | |
Accounts payable, accrued liabilities and taxes payable | 34,299 | 61,139 | [1] | 2,143 | [1] | |
Other | (17,231) | 0 | [1] | (283) | [1] | |
Net cash provided by operating activities | 218,193 | 173,431 | [1] | 8 | [1] | |
Cash flows from investing activities: | ||||||
Additions to property, plant and equipment | (241,786) | (164,876) | [1] | 0 | [1] | |
Contributions to equity method investments | (336,601) | 0 | [1] | 0 | [1] | |
Proceeds from the sale of fixed assets | 18 | 0 | [1] | 0 | [1] | |
Net cash used in investing activities | (578,369) | (164,876) | [1] | 0 | [1] | |
Cash flows from financing activities: | ||||||
Proceeds from borrowings from credit facility | 463,000 | 0 | [1] | 0 | [1] | |
Payments on credit facility | (39,000) | 0 | [1] | 0 | [1] | |
Distribution equivalent rights | (751) | 0 | [1] | 0 | [1] | |
Debt issuance costs | (4,310) | 0 | [1] | 0 | [1] | |
Net proceeds from initial public offering—public | 719,377 | 0 | [1] | 0 | [1] | |
Net proceeds from initial public offering—General Partner | 1,000 | 0 | [1] | 0 | [1] | |
Net proceeds from initial public offering—Diamondback | 999 | 1 | [1] | 0 | [1] | |
Distribution to General Partner (Note 1) | (21) | 0 | [1] | 0 | [1] | |
Distribution to General Partner (Note 1) | (763,191) | 0 | [1] | 0 | [1] | |
Distribution to public (Note 1) | (14,858) | 0 | [1] | 0 | [1] | |
Net cash provided by financing activities | 362,245 | 1 | [1] | 0 | [1] | |
Net increase in cash | 2,069 | 8,556 | [1] | 8 | [1] | |
Cash at beginning of period | [1] | 8,564 | 8 | 0 | ||
Cash at end of period | 10,633 | 8,564 | [1] | 8 | [1] | |
Supplemental disclosure of cash flow information: | ||||||
Interest paid | 2,707 | 0 | [1] | 0 | [1] | |
Supplemental disclosure of non-cash financing activity: | ||||||
Contributions from Diamondback | 456,055 | 171,557 | [1] | 179,214 | [1] | |
Supplemental disclosure of non-cash investing activity: | ||||||
Increase in long term assets and inventory due to contributions from Diamondback | 456,055 | 171,557 | [1] | 179,214 | [1] | |
Change in accrued liabilities related to property, plant and equipment | $ 4,176 | $ 2,693 | [1] | $ 0 | [1] | |
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization Rattler Midstream LP (the “Partnership”) is a publicly traded Delaware limited partnership, the common units of which are listed on the Nasdaq Global Select Market under the symbol “RTLR”. The Partnership was formed on July 27, 2018 by Diamondback Energy, Inc. (“Diamondback”) to, among other things, own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. Unless the context requires otherwise, references to “the Partnership” are intended to mean the business and operations of the Partnership and its consolidated subsidiary, Rattler Midstream Partners LLC (the “Operating Company” and, prior to May 28, 2019 for accounting purposes, the “Predecessor”). On January 31, 2018, Diamondback, through its wholly owned subsidiary Tall City Towers LLC (“Tall Towers”), acquired from Fasken Midland LLC (“Fasken Midland”) certain real property and related assets in Midland, Texas (the “Fasken Center”). Tall Towers was contributed to the Predecessor effective January 31, 2018, see Note 4 — Acquisitions . The Predecessor’s assets, contributed from Diamondback, included (i) crude oil and natural gas gathering and transportation systems, (ii) produced water gathering and disposal systems and (iii) water sourcing and distribution systems. All of the Partnership’s businesses are located or operate in the Permian Basin in West Texas. On August 7, 2018 , a Registration Statement on Form S-1 (File No. 333-226645) was filed with the SEC relating to the proposed underwritten initial public offering (the “IPO”) of common units of the Partnership. Prior to the completion of the IPO, the Predecessor was a wholly owned subsidiary of Diamondback. Prior to the closing on May 28, 2019 of the Partnership’s IPO of 38,000,000 common units representing limited partner interests, Diamondback owned all of the general and limited partner interests in the Partnership. On May 30, 2019, the underwriters purchased an additional 5,700,000 common units following the exercise in full of their over-allotment option on the same terms, at a price to the public of $17.50 per common unit. The Partnership received net proceeds of approximately $719.4 million from the sale of these common units after deducting offering expenses and underwriting discounts and commissions. At the closing of the IPO, the Partnership (i) issued 107,815,152 Class B units representing an aggregate 71% voting limited partner interest in the Partnership in exchange for a $1.0 million cash contribution from Diamondback, (ii) issued a general partner interest in the Partnership to Rattler Midstream GP LLC (the “General Partner”) in exchange for a $1.0 million cash contribution from the General Partner, and (iii) caused the Operating Company to make a distribution of approximately $726.5 million to Diamondback. 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 cash preferred distributions equal to 8% per annum on the outstanding amount of their respective $1.0 million capital contributions, payable quarterly. As of December 31, 2019 , the General Partner held a 100% general partner interest in the Partnership. Diamondback owns all of the Partnership’s 107,815,152 Class B units that provide a 71% voting interest. Diamondback owns and controls the General Partner. As of December 31, 2019 , the Partnership owned a 29% controlling membership interest in the Operating Company and Diamondback owned, through its ownership of the Operating Company units, a 71% economic, non-voting interest in the Operating Company. However, as required by GAAP, the Partnership consolidates 100% of the assets and operations of the Operating Company in its financial statements and reflects a non-controlling interest. Basis of Presentation Prior to May 28, 2019, the Partnership’s services were performed by the Predecessor. The consolidated financial statements include the results of the Predecessor for the periods presented prior to the closing of the IPO on May 28, 2019. The Predecessor financial statements have been prepared from the separate records maintained by the Partnership and may not necessarily be indicative of the actual results of operations that might have occurred if the Predecessor had been operated separately during the periods reported. The consolidated results of operations following the completion of the IPO are presented together with the results of operations pertaining to the Predecessor. The assets of the Predecessor consist of produced water disposal wells and related gathering systems, office buildings, surface land and an oil gathering system and asset retirement obligations related to these assets, which were contributed effective January 1, 2019. See Note 4 — Acquisitions . The capital contribution of the net proceeds from the IPO to the Operating Company in exchange for 29% of the limited liability company units of the Operating Company was accounted for as a combination of entities under common control, with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests. The Partnership did not own any assets prior to May 28, 2019, the date of the equity contribution agreement by and between the Partnership and the Predecessor. Prior to the IPO, the Predecessor was a wholly owned subsidiary of Diamondback. For periods prior to May 28, 2019, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in members’ equity of the Predecessor and, for periods on and after May 28, 2019, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in partners’ equity of the Partnership and its partially owned subsidiary. The consolidated financial statements include the accounts of the Partnership and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Prior to 2018, the Partnership’s operations comprised a single operating business segment; however, with the contribution of Tall Towers, the Partnership’s operations are now reported in two operating business segments: (i) midstream services and (ii) real estate operations. See Note 19 — Report of Operating Business Segments . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
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 notes 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, but are not limited to, (i) revenue accruals, (ii) the fair value of long-lived assets and (iii) asset retirement obligations (“ARO”). Cash Cash represents unrestricted cash maintained in bank deposit accounts. Accounts Receivable-Related Party Accounts receivable-related party consist of receivables from Diamondback, or one of its affiliates. The receivable balance represents operating income less certain cash payments as of December 31, 2019 and 2018 . The Partnership provides an allowance for doubtful receivables equal to the estimated uncollectible amounts. No allowance was deemed necessary at December 31, 2019 and 2018 , respectively. Sourced Water Inventory Sourced water inventory is stated at the lower of historical cost or net realizable value. Inventory costs are determined under the weighted-average method. Property, Plant and Equipment Property, plant and equipment (“PP&E”) consist of land, gathering pipelines, facilities and related equipment, which are stated at the lower of historical cost less accumulated depreciation, amortization and accretion, or fair value, if impaired. The Partnership capitalizes construction-related direct labor and material costs. Maintenance and repair costs are expensed as incurred. PP&E assets are depreciated using the straight-line method over the useful lives of the assets ranging from ten to thirty years . Upon sale or retirement of depreciable property, the respective cost and related accumulated depreciation, amortization and accretion is eliminated from the balance sheet and the resulting gain or loss is recognized in the statement of operations. Equity Method Investments An investment in an investee over which the Partnership exercises significant influence but does not control is accounted for using the equity method. Under the equity method, the Partnership’s share of the investee’s earnings or loss is recognized in the statement of operations. The Partnership reviews its investments to determine if a loss in value which is other than a temporary decline has occurred. If such a loss has occurred, the Partnership recognizes an impairment provision. No impairments were recorded for the Partnership’s equity method investments for the years ended December 31, 2019 and 2018 . Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Partnership considers the period of future benefit of each respective asset to determine the appropriate useful life and depreciation and amortization is calculated using the straight-line method over the assigned useful life. Upon acquisition of real estate properties, the purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. The fair values of in-place leases will include estimated direct costs associated with obtaining a new tenant, and opportunity costs associated with lost rentals which are avoided by acquiring an in-place lease. Direct costs associated with obtaining a new tenant may include commissions, tenant improvements, and other direct costs and are estimated, in part, by management’s consideration of current market costs to execute a similar lease. These direct costs will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. The value of opportunity costs will be calculated using the contractual amounts to be paid pursuant to the in-place leases over a market absorption period for a similar lease. These intangibles will be included in intangible lease assets on the balance sheet and will be amortized to expense over the remaining term of the respective leases. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of in-place lease assets relating to that lease would be expensed. Impairment of Long-Lived Assets The Partnership reviews its long-lived assets whenever events or circumstances indicate the carrying amount of a long-lived asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable from its estimated future undiscounted cash flows. An impairment loss is the difference between the carrying amount and fair value of the asset. The Partnership had no impairment losses for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Fair Value of Financial Instruments The Partnership’s financial instruments consist of cash, receivables, payables and a revolving credit facility. The carrying amount of cash, receivables and payables approximates fair value because of the short-term nature of the instruments. The fair value of the revolving credit facility approximates its carrying value based on the borrowing rates currently available to the Partnership for bank loans with similar terms and maturities. Accrued Liabilities Accrued liabilities consists of the following: December 31, 2019 2018 (In thousands) Capital expenditures accrued $ 42,160 $ 37,984 Direct operating expense accrued 22,119 7,541 Sourced water purchases accrued 9,531 4,670 Other 2,815 1,609 Total accrued liabilities $ 76,625 $ 51,804 Asset Retirement Obligations The Partnership recognizes a liability based on the estimated costs of retiring tangible long-lived assets. The liability is recognized at its fair value and measured using expected discounted future cash outflows of the ARO when the obligation originates, which generally is when an asset is acquired or constructed. The carrying amount of the associated asset is increased commensurate with the liability recognized. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to PP&E) and for accretion of the liability due to the passage of time, until the obligation is settled. If the fair value of the estimated obligation changes, an adjustment is recorded for both the retirement liability and the associated asset carrying amount. Revisions in estimated AROs may result from changes in estimated retirement costs and the estimated timing of settling the obligations. Commitments and Contingencies The Partnership may be a party to various legal proceedings, disputes and claims from time to time arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. 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. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum amount of the range is accrued. 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. Member’s Equity In the accompanying balance sheets, member’s equity represents Diamondback’s historical investment in the Partnership, the Partnership’s accumulated net results, and the net effect of transactions with, and allocations from, Diamondback. Accumulated Other Comprehensive Income The following table provides changes in the components of accumulated other comprehensive income, net of related income tax effects: (In thousands) Balance as of December 31, 2018 $ — Other comprehensive loss before reclassifications (823 ) Change in accumulated other comprehensive income (823 ) Balance as of December 31, 2019 $ (823 ) Revenue Recognition Midstream revenues are comprised of crude oil and natural gas gathering and transportation services, produced water gathering and disposal and water sourcing and distribution services. The Partnership provides gathering and compression and water handling and treatment services under fee-based contracts based on throughput. Under these arrangements, the Partnership receives fees for gathering crude oil and natural gas, compression services, and water handling, disposal, and treatment services. The revenue the Partnership earns from these arrangements is directly related to (i) in the case of natural gas gathering and compression, the volumes of metered natural gas that the Partnership gathers, compresses, transports and delivers to natural gas to other transmission delivery points, (ii) in the case of oil gathering, the volumes of metered oil that the Partnership gathers, transports and delivers to other transmission delivery points, (iii) in the case of sourced water services, the quantities of sourced water obtained, transported and delivered to the Partnership’s customers for use in their well drilling and completion operations and (iv) in the case of produced water gathering and disposal services, the quantities of produced water gathered, transported and disposed of for the Partnership’s customers. The Partnership recognizes revenue when it satisfies a performance obligation by delivering a service to a customer. The Partnership earns substantially all of its midstream revenues from commercial agreements with Diamondback and its affiliates. Real Estate Revenue Recognition The Partnership recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. Rental income—related party is comprised of revenues earned from lease agreements with Diamondback and its affiliates. Other real estate revenue is derived from tenants’ use of parking, telecommunications and miscellaneous services. Parking and other miscellaneous service revenue is recognized when the related services are utilized by the tenants. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses are recognized as revenue in the period the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Partnership is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. Concentrations The Partnership derives substantially all of its revenue from our commercial agreements with Diamondback, which carry initial terms ending in 2034. The Partnership operates produced water disposal wells with other working interest owners. The revenues and expenses related to these disposal activities are reported on a net basis as part of revenues and costs and expenses. Income Taxes The Partnership is treated as a corporation for U.S. federal income tax purposes as a result of its election to be treated as a corporation effective May 24, 2019. Subsequent to the effective date of the Partnership’s election, it is subject to U.S. federal and state income tax at corporate rates. 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 the Tax Sharing Agreement with Diamondback, as discussed further in Note 14 — Income Taxes . In addition to the Partnership’s 2019 tax year, the Predecessor’s 2016 through 2018 tax years, the periods during which the Predecessor’s sole owner, Diamondback, was responsible for federal income taxes on the Predecessor’s taxable income, remain open to examination by tax authorities. As of December 31, 2019 , 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 year ended December 31, 2019 , there was no interest or penalties associated with uncertain tax positions recognized in the Partnership’s consolidated financial statements. Capital Contributions A contribution of a set of assets and related liabilities (a “set”) to the Partnership from Diamondback is analyzed to determine whether the set meets the definition of a business in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations”. A contribution of a set of assets that does not constitute a business is recognized at the date of the transfer at its carrying amount in the accounts of Diamondback in accordance with the guidance regarding transactions between entities under common control in ASC 805-50. Management then evaluates whether the asset contribution results in a change in the reporting entity, as defined in ASC Topic 250, “Accounting Changes and Error Corrections”. An asset contribution that does not constitute a change in the reporting entity is accounted for prospectively from the date of the transfer, while an asset contribution that constitutes a change in the reporting entity would result in retrospective application of the transaction. For the year ended December 31, 2019 , the total capital contributions by Diamondback to the Predecessor were $456.1 million , of which $9.2 million related to an office building located in Midland Texas, $18.1 million related to land, $9.4 million related to sourced water assets, $228.3 million related to produced water disposal assets, $35.8 million related to crude oil assets, $149.5 million related to the equity method investments in the EPIC and Gray Oak joint ventures, $31.1 million related to elimination of current and deferred liabilities, and $(25.3) million in additional assets and liabilities, net, related to operations. Recent Accounting Pronouncements The Partnership considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. The following table provides a brief description of recent accounting pronouncements and the Partnership’s analysis of the effects on its financial statements: Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Recently Adopted Pronouncements ASU 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. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have transfers between fair value levels. ASU 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. Q1 2020 The Partnership adopted this update prospectively effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any capitalized implementation costs. ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326)” This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any cost method investments. Pronouncements Not Yet Adopted 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. Q1 2021 This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Partnership does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The Partnership generates revenues by charging fees on a per unit basis for gathering crude oil and natural gas, delivering and storing sourced water, and collecting, recycling and disposing of produced water. The Partnership adopted ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”) on January 1, 2018, using the modified retrospective method. Under ASC Topic 606, performance obligations are the unit of account and generally represent distinct goods or services that are promised to customers. The adoption of ASC Topic 606 did not have a material impact on the recognition, measurement and presentation of the Partnership’s revenues and expenses. Performance Obligations : For gathering crude oil and natural gas, delivering sourced water, and collecting, recycling and disposing of produced water, the Partnership’s performance obligations are satisfied over time using volumes delivered to measure progress. The Partnership records revenue related to the volumes delivered at the contract price at the time of delivery. The Partnership began generating revenue from water sales during first quarter 2018 upon the contribution of sourced water assets from Diamondback. For its water sales, each unit sold is generally considered a distinct good and the related performance obligation is generally satisfied at a point in time (i.e. at the time control of the water is transferred to the customer). The Partnership recognizes revenue from the sale of water when its contracted performance obligation to deliver water is satisfied and control of the water is transferred to the customer. This usually occurs when the water is delivered to the location specified in the contract and the title and risks of rewards and ownership are transferred to the customer. Transaction Price Allocated to Remaining Performance Obligations : The majority of the Partnership’s revenue agreements have a term greater than one year and, as such, the Partnership has utilized the practical expedient in ASC Topic 606, which states that the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Partnership’s revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Partnership has utilized an additional practical expedient in ASC Topic 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. Contract Balances : Under the Partnership’s revenue agreements, the Partnership invoices customers after the Partnership’s performance obligations have been satisfied, at which point payment is unconditional. As such, the Partnership’s revenue agreements do not give rise to contract assets or liabilities under ASC Topic 606. The following is a summary of the Partnership’s types of revenue agreements: • Crude Oil Gathering Agreement . Under the crude oil gathering agreements, the Partnership receives a volumetric fee per Bbl for gathering and delivering crude oil produced within the dedicated acreage. • Gas Gathering and Compression Agreement . Under the gas gathering and compression agreement, the Partnership receives a volumetric fee per MMBtu for gathering and processing all natural gas produced by Diamondback within the dedicated acreage. • Produced and Flowback Water Gathering and Disposal Agreements . Under the produced and flowback water gathering and disposal agreements, the Partnership receives a fee for gathering or disposing of water produced from operating crude oil and natural gas wells within the dedicated acreage. The fee is comprised of a volumetric fee per Bbl for the produced water services the Partnership provides. In addition, the Partnership retains the skim oil that is a part of the produced water. The skim oil is processed by a third party, which provides the Partnership a volumetric fee per Bbl. • Sourced Water Purchase and Services Agreements . Under the sourced water purchase and services agreements, the Partnership receives a fee for sourcing, transporting and delivering all raw sourced water and recycled sourced water required by Diamondback and third parties to carry out its oil and natural gas activities within the dedicated acreage. The fee is comprised of a volumetric fee per Bbl for the type of sourced water services the Partnership provides. Real Estate Contracts: The Partnership recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. Rental income—related party is comprised of revenues earned from lease agreements with Diamondback and its affiliates. Other real estate revenue is derived from tenants’ use of parking, telecommunications and miscellaneous services. Parking and other miscellaneous service revenue is recognized when the related services are utilized by the tenants. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses are recognized as revenue in the period the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Partnership is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. It is noted that surface revenue, rental and real estate income and amortization of out of market leases is outside the scope of ASC Topic 606. Disaggregation of Revenue In the following table, revenue is disaggregated by type of service and type of fee. The table also identifies the operating business segment to which the disaggregated revenues relate. For more information on operating business segments, see Note 19 — Report of Operating Business Segments . Year Ended December 31, 2019 2018 2017 Segment (In thousands) Type of Service: Sourced water gathering $ 115,135 $ 76,976 $ — Midstream Produced water gathering and disposal 275,882 72,352 27,864 Midstream Crude oil gathering 27,206 16,038 7,641 Midstream Natural gas gathering 14,317 6,447 2,909 Midstream Surface revenue (non ASC 606 revenues) 904 875 881 Midstream Real estate contracts (non ASC 606 revenues) 14,229 11,779 — Real Estate Total revenues $ 447,673 $ 184,467 $ 39,295 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Ajax and Energen Assets Effective January 1, 2019, Diamondback contributed to the Predecessor certain midstream assets (the “Ajax Assets”) within the Permian Basin that it acquired from Ajax Resources LLC (“Ajax”) as part of an upstream acquisition in the fourth quarter of 2018. These assets included 17 water wells, four produced water disposal wells and one related gathering system, a field office, surface land, five hydraulic fracturing pits and one related sourced water transportation system. Prior to their contribution, these assets were fully integrated into the upstream business acquired from Ajax. The carrying value of assets included in this contribution was $21.5 million . The contributed assets were recognized by the Predecessor at Diamondback’s historical basis due to the entities being under common control. Effective January 1, 2019, Diamondback contributed to the Predecessor certain midstream assets (“the Energen Assets”) within the Permian Basin that it acquired from Energen Corporation (“Energen”) as part of an upstream acquisition in the fourth quarter of 2018. These assets included 56 produced water disposal wells and related gathering systems, an office building located in Midland Texas, surface land and an oil gathering system and asset retirement obligations related to these assets. Prior to their contribution, these assets were fully integrated into the upstream business acquired from Energen. The carrying value of assets included in this contribution was $279.0 million , net of $3.0 million in associated asset retirement obligations. The contributed assets were recognized by the Predecessor at Diamondback’s historical basis due to the entities being under common control. The contribution of the Ajax and Energen Assets was an asset contribution that did not result in a change in the reporting entity at the Predecessor. As a result, the Ajax and Energen Assets were initially recognized at the date of the transfer at their carrying amounts in the accounts of Diamondback, and presented prospectively from that date. Sourced Water Assets In connection with its business operations, Diamondback constructed and/or acquired various sourced water assets, including certain wells, sourced water transportation lines and related assets (the “Sourced Water Assets”), located in the Delaware and Midland Basins of the Permian Basin. Effective January 1, 2018, Diamondback contributed the Sourced Water Assets to the Predecessor. The carrying value of assets included in this contribution was $32.8 million and $6.0 million of that amount related to sourced water inventory. The contributed assets were recognized by the Partnership at Diamondback’s historical basis due to the entities being under common control. The contribution of the Sourced Water Assets was an asset contribution that did not result in a change in the reporting entity at the Predecessor. As a result, the Sourced Water Assets were initially recognized at the date of the transfer at their carrying amounts in the accounts of Diamondback, and presented prospectively from that date. Tall Towers On January 31, 2018 , Diamondback, through Tall Towers, acquired from Fasken Midland certain real property and related assets in Midland, Texas for a purchase price of approximately $110.0 million . All of the membership interests in Tall Towers were contributed to the Predecessor effective January 31, 2018 . Diamondback allocated the purchase price between the tangible assets, consisting of land and two office towers, and to identified intangible lease assets. The contributed assets were recognized by the Predecessor at Diamondback’s historical basis due to the entities being under common control. Midstream Assets and Land In connection with its business operations, Diamondback constructed and/or acquired various midstream assets located in the Delaware and Midland Basins of the Permian Basin. Upon asset completion dates during 2018, Diamondback contributed the midstream assets to the Predecessor. Such midstream assets include produced water disposal gathering assets and wells with a carrying value of $18.2 million , land valued at $1.5 million , and a field office valued at $1.3 million . The contributed assets were recognized by the Predecessor at Diamondback’s historical basis due to the entities being under common control. Other Acquisitions During the fourth quarter of 2019, the Partnership acquired three produced water disposal wells and related assets in the Delaware basin and one produced water disposal well and related assets in the Midland basin for an aggregate of $17.3 million , subject in each cash to certain adjustments, which collectively increased disposal capacity by 65,000 barrels per day. |
REAL ESTATE ASSETS
REAL ESTATE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
REAL ESTATE ASSETS | REAL ESTATE ASSETS In conjunction with Diamondback’s contribution of Tall Towers, the Predecessor allocated the $110.0 million purchase price between real estate assets and intangible lease assets related to in-place and above-market leases. During the year ended December 31, 2018, Diamondback also contributed a field office with a fair value of $1.3 million to the Operating Company. During the three months ended March 31, 2019, as part of the Energen contribution, Diamondback contributed an office building located in Midland Texas with a value of $9.2 million . The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Partnership’s real estate assets and intangible lease assets: As of December 31, Weighted Average Useful Lives 2019 2018 (Years) (In thousands) Buildings 20-30 $ 102,375 $ 92,349 Tenant improvements 15 4,501 4,160 Land improvements 15 484 484 Total real estate assets 107,360 96,993 Less: accumulated depreciation (8,681 ) (3,970 ) Total investment in real estate, net $ 98,679 $ 93,023 As of December 31, Weighted Average Useful Lives 2019 2018 (Months) (In thousands) In-place lease intangibles 45 $ 11,389 $ 10,866 Less: accumulated amortization (5,927 ) (3,076 ) In-place lease intangibles, net 5,462 7,790 Above-market lease intangibles 45 3,623 3,623 Less: accumulated amortization (1,015 ) (459 ) Above-market lease intangibles, net 2,608 3,164 Total intangible lease assets, net $ 8,070 $ 10,954 Depreciation and amortization expense for real estate assets was $7.6 million and $7.0 million for the years ended December 31, 2019 and 2018 , respectively. There was no depreciation and amortization expense for real estate assets for the year ended 2017 . The estimated amortization expense related to lease intangibles for the next five succeeding fiscal years is approximately $8.1 million |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following table sets forth the Partnership’s property, plant and equipment: Estimated As of December 31, Useful Lives 2019 2018 (Years) (In thousands) Produced water disposal systems 10-30 $ 600,797 $ 220,084 Crude oil gathering systems (1) 30 129,658 66,760 Natural gas gathering and compression systems (1) 10-30 98,426 60,350 Sourced water gathering systems (1) 30 101,887 68,694 Total property, plant and equipment 930,768 415,888 Land N/A 88,509 70,373 Less: accumulated depreciation, amortization and accretion (61,132 ) (28,317 ) Total property, plant and equipment, net $ 958,145 $ 457,944 (1) Included in gathering systems are $138.6 million and $55.2 million of assets at December 31, 2019 and December 31, 2018 , respectively, that are not subject to depreciation, amortization and accretion as the systems were under construction and had not yet been put into service. Depreciation expense related to property, plant and equipment was $33.2 million , $18.1 million and $3.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Internal costs capitalized to property, plant and equipment represent management’s estimate of costs incurred directly related to construction activities. Capitalized internal costs were approximately $5.1 million for the year ended December 31, 2019 . There were no capitalized internal costs for the years ended 2018 and 2017 . At December 31, 2019 , there was $1.8 million of capitalized interest that was related to property, plant and equipment. During the year ended December 31, 2019 , the Partnership incurred losses related to weather damage at certain produced water disposal facilities. The damage totaled $7.5 million , for which the Partnership expects insurance proceeds of $6.0 million , resulting in a loss of $1.5 million . |
ASSET RETIREMENT OBLIGATIONS
ASSET RETIREMENT OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS Asset retirement obligations consist primarily of estimated costs of dismantlement, removal, site reclamation, plugging and abandonment and similar activities associated with the Partnership’s infrastructure assets. The following table reflects the changes in the Partnership’s asset retirement obligation for the following periods: Year Ended December 31, 2019 2018 2017 (In thousands) Asset retirement obligation, beginning of period $ 561 $ 383 $ 194 Liabilities incurred 9,188 143 166 Liabilities settled (21 ) — — Estimates revised 5 — — Accretion expense during period 1,614 35 23 Asset retirement obligation, end of period $ 11,347 $ 561 $ 383 |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS At December 31, 2019 and 2018 , the carrying values of the Partnership’s equity method investments are as follows: Ownership Interest December 31, 2019 December 31, 2018 (In thousands) EPIC Crude Holdings, LP 10 % $ 109,806 $ — Gray Oak Pipeline, LLC 10 % 115,840 — Wink to Webster Pipeline LLC 4 % 34,124 — OMOG JV LLC 60 % 219,098 — Amarillo Rattler, LLC 50 % 690 — Total $ 479,558 $ — The following summarizes the income (loss) of equity method investees reflected in the Consolidated Statement of Operations. Year Ended December 31, 2019 2018 2017 (In thousands) EPIC Crude Holdings, LP $ (6,597 ) $ — $ — Gray Oak Pipeline, LLC 831 — — Wink to Webster Pipeline LLC (539 ) — — OMOG JV LLC (24 ) — — HMW LLC — — 1,366 Total $ (6,329 ) $ — $ 1,366 In October 2014, Diamondback obtained a 25% interest in HMW Fluid Management LLC (“HMW LLC”), which was formed to develop, own and operate an integrated water management system to gather, store, process, treat, distribute and dispose of water to exploration and production companies operating in Midland, Martin and Andrews Counties, Texas. On June 30, 2018, HMW LLC’s operating agreement was amended. As a result of the amendment, the Partnership no longer recognizes an equity method investment in HMW LLC but instead consolidates its undivided interest in the produced water disposal assets owned by HMW LLC. In exchange for the Partnership’s 25% investment, the Partnership received a 50% undivided ownership interest in two of the four produced water disposal wells and associated assets previously owned by HMW LLC. The Partnership’s basis in the assets is equivalent to its basis in the equity method investment in HMW LLC. On February 1, 2019, Diamondback funded and the Predecessor acquired a 10% equity interest in EPIC Crude Holdings, LP (“EPIC”), which is building a pipeline (the “EPIC pipeline”) that, once fully operational, will transport crude and natural gas liquids across Texas for delivery into the Corpus Christi market. The EPIC pipeline began initial operations during the third quarter of 2019. On February 15, 2019, Diamondback funded and the Predecessor acquired a 10% equity interest in Gray Oak Pipeline, LLC (“Gray Oak”), which is building a pipeline (the “Gray Oak pipeline”) that, once operational, will transport crude from the Permian to Corpus Christi on the Texas Gulf Coast. The Gray Oak pipeline began initial operations during the fourth quarter of 2019. On March 29, 2019, the Predecessor executed a short-term promissory note to Gray Oak. The note allows for borrowing by Gray Oak of up to $123.0 million at 2.52% interest rate with a maturity date of March 31, 2022. During the year ended December 31, 2019 , Gray Oak borrowed and repaid $22.6 million under this note. The short-term promissory note was repaid on May 31, 2019. On June 4, 2019, the Partnership entered into an equity contribution agreement with respect to Gray Oak. The equity contribution agreement requires the Partnership to contribute equity or make loans to Gray Oak so that Gray Oak can, to the extent necessary, cure payment defaults under Gray Oak’s credit agreement and, in certain instances, repay Gray Oak’s credit agreement in full. The Partnership’s obligations under the equity contribution agreement are limited to its proportionate ownership interest in Gray Oak, and such obligations are guaranteed by the Operating Company, Tall Towers, Rattler OMOG LLC and Rattler Ajax Processing LLC. On July 30, 2019, the Operating Company joined Wink to Webster Pipeline LLC as a 4% member, together with affiliates of ExxonMobil, Plains All American Pipeline, Delek US, MPLX LP, and Lotus Midstream. The joint venture is developing a crude oil pipeline with origin points at Wink and Midland in the Permian Basin for delivery to multiple Houston area locations (the “Wink to Webster pipeline”). The Wink to Webster pipeline is expected to begin service in the first half of 2021. On October 1, 2019, the Partnership acquired a 60% equity interest in OMOG JV LLC (“OMOG”). On November 7, 2019, OMOG acquired 100% of Reliance Gathering, LLC which owns and operates a crude oil gathering system in the Permian, and was renamed as Oryx Midland Oil Gathering LLC following the acquisition. While the Partnership’s equity interest is 60% , the investment is accounted for as an equity method investment as the Partnership does not control operating activities and substantive participating rights exist with the controlling minority investor. On December 20, 2019, the Partnership acquired a 50% equity interest in Amarillo Rattler, LLC, which currently owns and operates the Yellow Rose gas gathering and processing system with estimated total processing capacity of 40,000 Mcf/d and over 84 miles of gathering and regional transportation pipelines in Dawson, Martin and Andrews Counties, Texas. This joint venture also intends to construct and operate a new 60,000 Mcf/d cryogenic natural gas processing plant in Martin County, Texas, as well as incremental gas gathering and compression and regional transportation pipelines. While the Partnership’s equity interest is 50% , the investment is accounted for as an equity method investment as the Partnership does not control operating activities and substantive participating rights exist with the controlling investor. Judgment regarding the level of influence over each equity method investment includes considering key factors such as ownership interest, representation on the board of directors, participation in policy-making decisions, material intercompany transactions and extent of ownership by an investor in relation to the concentration of other shareholdings. Additionally, an investment in a limited liability company that maintains a specific ownership account for each investor shall be viewed as similar to an investment in a limited partnership for purposes of determining whether a noncontrolling investment shall be accounted for using the cost method or the equity method. Investments of greater than 3% to 5% are considered more than minor and, therefore, should be accounted for using the equity method. For investments where the Partnership has less than a 20% ownership interest, the investment is accounted for as an equity method investment as the Partnership has the ability to exercise significant influence. Summarized Financial Information The following tables sets forth summarized financial information of the investments in which the Partnership acquired an interest in 2019 , as follows: As of December 31, 2019 (In thousands) Balance Sheet Current assets $ 550,624 Property, plant and equipment 5,190,371 Other assets 196,470 Total assets 5,937,465 Current liabilities 516,155 Other liabilities 2,051,110 Member's Equity 3,370,200 Total liabilities and member's equity $ 5,937,465 Year Ended December 31, 2019 Income Statement (In thousands) Revenue $ 53,898 Operating expenses $ 116,400 Net income $ (72,227 ) The carrying value of the Partnership’s equity method investments as of December 31, 2019 was as follows: Year Ended December 31, 2019 (In thousands) Carrying value of equity method investments $ 479,558 As of December 31, 2019 , there was an aggregate difference of $7.0 million between the carrying amounts of these investments and the amounts of underlying equity in net assets of these investments. The Partnership's basis in these assets includes certain capitalized formation costs and basis differences related to the Partnership's initial investment into each asset above carrying value. No impairments were recorded for the Partnership’s equity method investments for the years ended December 31, 2019 or 2018 . At December 31, 2019 , there was $0.9 million of capitalized interest that was related to equity method investments that have not yet begun operations. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: As of December 31, 2019 December 31, 2018 (In thousands) Operating Company revolving credit facility $ 424,000 $ — Total long-term debt $ 424,000 $ — Credit Agreement—Wells Fargo The Partnership, as parent, and the Operating Company, as borrower, entered into a credit agreement, dated May 28, 2019, (as amended, the “Credit Agreement”) with Wells Fargo Bank, National Association, as administrative agent, and a syndicate of banks, including Wells Fargo Bank, National Association, as lenders party thereto. The Credit Agreement provides for a revolving credit facility in the maximum amount of $600.0 million . Loan principal may be optionally repaid from time to time without premium or penalty (other than customary LIBOR breakage), and is required to be paid at the maturity date of May 28, 2024. The loan is guaranteed by the Partnership, Tall Towers, Rattler OMOG LLC and Rattler Ajax Processing LLC and is secured by substantially all of our, the Operating Company and the other guarantors’ assets. As of December 31, 2019 , the Operating Company had $424.0 million of outstanding borrowings and $176.0 million available for future borrowings under the Credit Agreement. The outstanding borrowings under the Credit Agreement bear interest at a per annum rate elected by the Operating Company that is based on the prime rate or LIBOR, in each case plus an applicable margin. The applicable margin ranges from 0.250% to 1.250% per annum for prime-based loans and 1.250% to 2.250% per annum for LIBOR loans, in each case depending on the Consolidated Total Leverage Ratio (as defined in the Credit Agreement). The Operating Company is obligated to pay a quarterly commitment fee ranging from 0.250% to 0.375% per annum on the unused portion of the commitment, which fee is also dependent on the Consolidated Total Leverage Ratio. The Credit Agreement contains various affirmative and negative covenants. These covenants, among other things, limit additional indebtedness, additional liens, sales of assets, mergers and consolidations, distributions and other restricted payments, transactions with affiliates, and entering into certain swap agreements, in each case of the Partnership, the Operating Company and their restricted subsidiaries. The covenants are subject to exceptions set forth in the Credit Agreement, including an exception allowing the Partnership or the Operating Company to issue unsecured debt securities and an exception allowing payment of distributions if no default exists. The Credit Agreement may be used to fund capital expenditures, to finance working capital, for general company purposes, to pay fees and expenses related to the Credit Agreement, and to make distributions permitted under the Credit Agreement. The Credit Agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below: Financial Covenant Required Ratio Consolidated Total Leverage Ratio Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Credit Agreement) is applicable, then not greater than 5.25 to 1.00) Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Credit Agreement) is made Not greater than 3.50 to 1.00 Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) Not less than 2.50 to 1.00 For purposes of calculating the financial maintenance covenants prior to the fiscal quarter ending June 30, 2020, EBITDA (as defined in the Credit Agreement) will be annualized based on the actual EBITDA for the preceding fiscal quarters starting with the fiscal quarter ending September 30, 2019. As of December 31, 2019 , each of the Partnership and the Operating Company was in compliance with all financial covenants under the Credit Agreement. The lenders may accelerate all of the indebtedness under the Credit Agreement upon the occurrence and during the continuance of any event of default. The Credit Agreement contains customary events of default, including non-payment, breach of covenants, materially incorrect representations, cross-default, bankruptcy and change in control. There are no cure periods for events of default due to non-payment of principal and breaches of negative and financial maintenance covenants, but non-payment of interest and breaches of certain affirmative covenants are subject to customary cure periods. 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. |
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
UNIT-BASED COMPENSATION | UNIT-BASED COMPENSATION On May 22, 2019, the board of directors of the General Partner adopted the Rattler Midstream LP Long Term Incentive Plan (“LTIP”), for employees, 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 December 31, 2019 , a total of 15,151,515 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 year ended December 31, 2019 , the Partnership incurred $5.2 million 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 recipients are also entitled to distribution equivalent rights, which represent the right to receive a cash payment equal to the value of the distributions paid on one phantom unit between the grant date and the vesting date. The following table presents the phantom unit activity under the LTIP for the year ended December 31, 2019 : Phantom Weighted Average Unvested at May 28, 2019 — $ — Granted 2,284,038 $ 19.14 Forfeited (57,143 ) $ 19.21 Unvested at December 31, 2019 2,226,895 $ 19.14 As of December 31, 2019 , the unrecognized compensation cost related to unvested phantom units was $37.4 million . Such cost is expected to be recognized over a weighted-average period of 2.4 years. |
UNITHOLDERS_ EQUITY AND PARTNER
UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS | UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS The Partnership has general partner and limited partner units. At December 31, 2019 , the Partnership had a total of 43,700,000 common units issued and outstanding and 107,815,152 Class B units issued and outstanding, of which no common units and 107,815,152 Class B units were owned by Diamondback, representing approximately 71% of the Partnership’s total 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 May 28, 2019 — Common units issued in public offerings 43,700,000 Balance at December 31, 2019 43,700,000 The following table summarizes changes in the number of the Partnership’s class B units: Class B Units Balance at May 28, 2019 — Units related to tax conversion 107,815,152 Balance at December 31, 2019 107,815,152 At the closing of the Partnership’s IPO, the board of directors of the General Partner adopted a policy pursuant to which the Partnership will pay, to the extent legally available, cash distributions of $0.25 per common unit to common unitholders of record on the applicable record date within 60 days after the end of each quarter beginning with the quarter ending September 30, 2019. The Partnership’s first distribution was prorated for the period from the closing of the IPO through September 30, 2019. On February 13, 2020, the board of directors of the General Partner revised the cash distribution policy to provide that the Partnership will pay, to the extent legally available, cash distributions of $0.29 per common unit to common unitholders of record on the applicable record date after the end of each quarter beginning the quarter ended December 31, 2019. The board of directors of the General Partner may change the Partnership’s distribution policy at any time and from time to time. The partnership agreement (discussed below) does not require the Partnership to pay cash distributions on the Partnership’s common units on a quarterly or other basis. The following table presents cash distributions approved by the board of directors of the General Partner for the periods presented: Declaration Date Quarter Amount per Common Unit Payment Date October 31, 2019 Q3 2019 $ 0.34 November 22, 2019 February 13, 2020 Q4 2019 $ 0.29 March 10, 2020 |
EARNINGS PER COMMON UNIT
EARNINGS PER COMMON UNIT | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON UNIT | EARNINGS PER COMMON UNIT The net income per common unit on the consolidated statements of operations is based on the net income of the Partnership for the period after the closing of the IPO on May 28, 2019 through December 31, 2019 , since this is the amount of net income that is attributable to the Partnership’s common units. The Partnership’s net income is allocated wholly to the common units, as the General Partner does not have an economic interest. Basic and diluted net income per common unit is calculated using the two-class method. The two class method is an earnings allocation proportional to the respective ownership among holders of common units and participating securities. Basic earnings per common unit is calculated by dividing net income by the weighted-average number of common units outstanding during the period. Diluted earnings per common unit also considers the dilutive effect of unvested common units granted under the LTIP, calculated using the treasury stock method. May 28, 2019 to December 31, 2019 (In thousands, except per unit amounts) Net income attributable to Rattler Midstream LP $ 28,802 Less: net income allocated to participating securities (1) (751 ) Net income attributable to common unitholders 28,051 Weighted average common units outstanding: Basic weighted average common units outstanding 43,622 Diluted weighted average common units outstanding 43,622 Net income per common unit, basic $ 0.64 Net income per common unit, diluted $ 0.64 (1) Distribution equivalent rights granted to employees are considered participating securities. The Partnership had the following units that were excluded from the computation of diluted earnings per unit because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per unit in future periods: May 28, 2019 to December 31, 2019 (in thousands) Phantom units 44 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Partnership Agreement At the closing of the IPO, the General Partner and Energen Resources Corporation, a subsidiary of Energen, entered into the first amended and restated agreement of limited partnership of Rattler Midstream LP, dated May 28, 2019 (the “Partnership Agreement”). 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 its 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 its 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 year ended December 31, 2019 , the General Partner allocated $0.4 million of such expenses to the Partnership. The General Partner did no t allocate any such expenses to the Partnership for the year ended December 31, 2018 and 2017 . Asset Contribution Agreement In July 2018, the Predecessor entered into a contribution agreement with Diamondback by which Diamondback contributed certain assets to the Predecessor, including (i) the Rattler assets, (ii) Diamondback’s field office, certain produced water disposal wells, gathering and frac ponds in Reeves County, Texas (the “Luxe assets”), (iii) the Brigham assets, (iv) the sourced water assets, (v) certain of Diamondback’s real property interests in Glasscock, Howard, Martin, Midland, Pecos and Reeves Counties, Texas (the “land assets”), (vi) the Tall Towers interest, and (vii) 25% membership interests in HMW LLC that Diamondback had acquired in October 2014 (the “HMW Interest”). The contribution of the Rattler assets occurred during fiscal years 2016 and 2017 and was comprised of $208.6 million of net property, plant and equipment, $7.9 million in equity method investments and $0.4 million of asset retirement obligations related to the contributed assets. The contribution of the Luxe assets was effective as of September 1, 2016, and the contribution of the land assets was effective as of January 1, 2017. The contribution of the Brigham assets was effective as of February 28, 2017 and had an estimated fair market value at the time of transfer of $46.7 million . The contribution of the sourced water assets was effective as of January 1, 2018 and had a carrying value at the time of transfer of $32.8 million and $6.0 million of that amount related to sourced water inventory. The contribution of the Tall Towers interest was effective as of January 31, 2018. HMW LLC was formed to develop, own and operate an integrated water management system to gather, store, process, treat, distribute and dispose of water to E&P companies operating in Midland, Martin and Andrews Counties, Texas. The contribution of the HMW Interest was effective as of January 1, 2016. The Predecessor recorded $1.4 million in income from investments associated with its interests in HMW LLC during fiscal year 2017. On June 30, 2018, HMW LLC’s operating agreement was amended, effective as of January 1, 2018. In exchange for its 25% investment, the Predecessor received a 50% undivided ownership interest in two of the four produced water disposal wells and associated assets previously owned by HMW LLC. The Predecessor’s basis in the assets was equivalent to its basis in the equity method investment in HMW LLC. In February 2019, the Predecessor entered into a contribution agreement with Diamondback by which Diamondback contributed midstream assets to the Predecessor, including certain crude oil gathering, produced water disposal wells, land and buildings Diamondback had acquired pursuant to the Ajax acquisition on October 31, 2018 and the Energen acquisition on November 29, 2018. The contribution was effective as of January 1, 2019 and was comprised of approximately $297.6 million of net property, plant and equipment and $3.3 million of asset retirement obligations related to the contributed assets. Services and Secondment Agreement At the closing of the IPO, the Partnership entered into a services and secondment agreement with Diamondback, Diamondback E&P LLC, the General Partner and the Operating Company, dated as of May 28, 2019 (the “Services and Secondment Agreement”). Pursuant to the Services and Secondment Agreement, Diamondback and its subsidiaries second certain operational, construction, design and management employees and contractors of Diamondback to the General Partner, the Partnership and its subsidiaries, providing management, maintenance and operational functions with respect to the Partnership’s assets. The Services and Secondment Agreement requires the General Partner and the Partnership to reimburse Diamondback for the cost of the seconded employees and contractors, including their wages and benefits. For the year ended December 31, 2019 , the General Partner and the Partnership paid Diamondback $5.1 million under the Services and Secondment Agreement. The General Partner and the Partnership did no t pay Diamondback under the Services and Secondment Agreement for the year ended December 31, 2018 and 2017 . Commercial Agreements The Partnership derives substantially all of its revenue from its commercial agreements with Diamondback for the provision of midstream services. For the year ended December 31, 2019 , the Partnership received $9.9 million , $14.3 million , $271.6 million and $112.7 million under the terms of its crude oil gathering agreement, its gas gathering and compression agreement, its produced and flowback water gathering and disposal agreement and its sourced water services agreement with Diamondback, respectively. For the year ended December 31, 2018 , the Predecessor received $16.0 million , $6.4 million , $72.4 million and $77.0 million under the terms of the Partnership’s crude oil gathering agreement, the Partnership’s gas gathering and compression agreement, the Partnership’s produced and flowback water gathering and disposal agreement and the Partnership’s sourced water services agreement with Diamondback, respectively. For the year ended December 31, 2017 , the Predecessor received $7.6 million , $2.9 million and $27.9 million under the terms of the Partnership’s crude oil gathering agreement, the Partnership’s gas gathering and compression agreement and the Partnership’s produced and flowback water gathering and disposal agreement with Diamondback, respectively. The Predecessor did not provide water services to Diamondback in 2017 . Exchange Agreement The Partnership entered into an exchange agreement with Diamondback, the General Partner and the Operating Company, under which Diamondback can tender Operating Company units and an equal number of Diamondback’s Class B units, together referred to as the tendered units, for redemption to the Operating Company and the Partnership. As consideration for the tendered units, Diamondback has the right to receive upon redemption, at the election of the Operating Company with the approval of the conflicts committee of the General Partner’s board of directors, either the number of the Partnership’s common units equal to the number of tendered units or a cash payment equal to the sum of (i) the number of tendered units multiplied by the average daily trading price of the Partnership’s common units for the prior 20 days plus (ii) the number of tendered units multiplied by the quotient of $1 million divided by the number of then outstanding Class B units. In addition, the Partnership has the right but not the obligation, to directly purchase such tendered units for, subject to the approval of the conflicts committee of the General Partner’s board of directors, cash or the Partnership’s common units at the Partnership’s election. The exchange agreement also provides that, subject to certain exceptions, Diamondback does not have the right to exchange its Operating Company units if the Operating Company or if the Partnership determines that such exchange would be prohibited by law or regulation or would violate other agreements to which the Partnership may be subject, and the Operating Company and the Partnership may impose additional restrictions on the exchange that either of them determines necessary or advisable so that the Partnership is not treated as a “publicly traded partnership” for U.S. federal income tax purposes. If the Operating Company elects to receive the Partnership’s common units in exchange for Diamondback’s tendered units, the exchange will be on a one -for-one basis, subject to adjustment in the event of splits or combinations of units, distributions of warrants or other unit purchase rights, specified extraordinary distributions and similar events. If the Operating Company elects to deliver cash in exchange for Diamondback’s tendered units, or if the Partnership exercises its right to purchase tendered units for cash, the amount of cash payable will be based on the average daily trading price of the Partnership’s common units for the prior 20 days . Registration Rights Agreement The Partnership entered into a registration rights agreement with Diamondback under which Diamondback is entitled to demand registration rights, including the right to demand that a shelf registration statement be filed, and “piggyback” registration rights, for common units that it owns or acquires, including through the exchange of Diamondback’s Class B units and the Partnership’s common units for Operating Company units in accordance with the exchange agreement. Equity Contribution Agreement Prior to the IPO, the Partnership entered into an equity contribution agreement with the Operating Company under which the Partnership contributed all of the net proceeds of the IPO to the Operating Company in exchange for 38,000,000 Operating Company units. The Operating Company used the contributed funds to make distributions to Diamondback and for general company purposes. Fasken Center Agreements The Partnership has entered into a long-term lease agreement with Diamondback for certain office space located within the Fasken Center. Effective as of January 31, 2018, Diamondback contributed all of its membership interest in Tall Towers, which owns the Fasken Center in Midland, Texas, to the Operating Company pursuant to the asset contribution agreement. Diamondback is a tenant in the Fasken Center. For the year ended December 31, 2019 , the Partnership received $5.2 million related to its lease agreement with Diamondback. Tax Sharing Agreement At the closing of the IPO, the Operating Company entered into a tax sharing agreement with Diamondback (the “Tax Sharing Agreement”). Pursuant to the Tax Sharing Agreement, the Operating Company reimburses Diamondback for its share of state and local income and other taxes borne by Diamondback as a result of the Operating Company’s results being included in a combined or consolidated tax return filed by Diamondback with respect to taxable periods including or beginning on May 28, 2019. The amount of any such reimbursement is limited to the tax the Operating Company 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 Operating Company may be a member for this purpose, to owe less or no tax. In such a situation, the Operating Company agreed to reimburse Diamondback for the tax the Operating Company would have owed had the tax attributes not been available or used for the Operating Company’s benefit, even though Diamondback had no cash tax expense for that period. For the year ended December 31, 2019 , the Partnership accrued state income tax expense of $0.2 million for its share of Texas margin tax for which the Partnership’s share of the Operating Company results are included in a combined tax return filed by Diamondback. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Prior to the Partnership’s IPO, all of the membership interests of the Predecessor were owned by a single member. Under applicable federal income tax provisions, the Predecessor’s legal existence as an entity separate from its sole owner was disregarded for U.S. federal income tax purposes. As a result, the Predecessor’s owner, Diamondback, was responsible for federal income taxes on its share of the Predecessor’s taxable income. Similarly, the Predecessor had no tax attributes such as net operating loss carryforwards because such tax attributes are treated for federal income tax purposes as attributable to the Predecessor’s owner. In certain circumstances, GAAP requires or permits entities such as the Predecessor to account for income taxes under the principles of ASC Topic 740, “Income Taxes” (“ASC Topic 740”), notwithstanding the fact that the separate legal entity’s activity is attributed to its owner for income tax purposes. Accordingly, the Predecessor has applied the principles of ASC Topic 740 to its financial statements herein, for periods prior to the Partnership’s IPO, as if the Predecessor had been subject to taxation as a corporation. Consistent with the overall basis of presentation as described in Note 1 — Organization and Basis of Presentation , for the years ended December 31, 2019 and 2018 , net income for the period prior to the Partnership’s IPO reflects income taxes based on federal and state income tax rates, net of federal benefit, applicable to the Predecessor as if it had been subject to taxation as a corporation. At the closing of the IPO, an adjustment of $31.1 million to equity of the Predecessor was recorded for the elimination of current and deferred tax liabilities related to the period prior to the IPO. Subsequent to the Partnership’s IPO, the Partnership provides for income taxes under the asset and liability method. Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities, specifically the Partnership’s investment in the Operating Company, using enacted tax rates expected to be in effect during the year in which the basis differences reverse. Valuation allowances are established when management determines it is more likely than not that some portion, or all, of the Partnership’s deferred tax assets will not be realized. For the year ended December 31, 2019 , net income for the period prior to the IPO reflects income tax expense of $18.2 million and net income from continuing operations for the period subsequent to the IPO reflects income tax expense of $8.1 million . For the years ended December 31, 2018 and 2017 , net income of the Predecessor reflects income tax expense of $17.4 million and $4.7 million , respectively. Total income tax expense from continuing operations for the 2019 and 2018 periods differed from applying the U.S. statutory corporate income tax rate of 21% to pre-tax income primarily due to state income taxes, net of federal benefit, and due to net income attributable to the noncontrolling interest for the 2019 period subsequent to the IPO. In addition, total income tax expense of the Predecessor for the year ended December 31, 2017 , differed from the U.S. statutory corporate income tax rate of 35% primarily due to deferred tax benefit of $4.5 million recognized as a result of the reduction in the carrying amount of its deferred tax assets and liabilities from 35% to the 21% federal statutory rate enacted in the fourth quarter of 2017. The components of the provision for income taxes from continuing operations for the years ended December 31, 2019 , 2018 and 2017 are as follows: Year Ended December 31, 2019 Subsequent to IPO 2019 Prior to IPO 2018 2017 Predecessor Predecessor Predecessor (In thousands) Current income tax provision: Federal $ — $ 7,694 $ 11,089 $ — State 189 270 425 217 Total current income tax provision 189 7,964 11,514 217 Deferred income tax provision: Federal 7,600 9,983 5,689 4,237 State 282 235 156 234 Total deferred income tax provision 7,882 10,218 5,845 4,471 Total provision for income taxes $ 8,071 $ 18,182 $ 17,359 $ 4,688 A reconciliation of the statutory federal income tax amount from continuing operations to the recorded expense is as follows: Year Ended December 31, 2019 Subsequent to IPO 2019 Prior to IPO 2018 2017 (In thousands) Income tax expense at the federal statutory rate (1) $ 26,679 $ 17,677 $ 16,867 $ 8,873 Impact of nontaxable noncontrolling interest (18,982 ) — — — State income tax expense, net of federal tax effect 372 505 492 317 Income tax benefit relating to change in statutory tax rate — — — (4,502 ) Other, net 2 — — — Provision for income taxes $ 8,071 $ 18,182 $ 17,359 $ 4,688 (1) The federal statutory rates for the years ended December 31, 2019 , 2018 and 2017 were 21% , 21% , and 35% , respectively. The components of the deferred tax assets and liabilities as of December 31, 2019 and 2018 of the Partnership and the Predecessor are as follows: Year Ended December 31, 2019 2018 Predecessor (In thousands) Deferred tax assets Net operating loss and other carryforwards (indefinite life) $ 232 $ — Investment in the Operating Company — — Other — — Total deferred tax assets 232 — Deferred tax liabilities Investment in the Operating Company 8,059 — Midstream assets — 12,912 Other — — Total deferred tax liabilities 8,059 12,912 Net deferred tax liabilities $ 7,827 $ 12,912 The Partnership and Predecessor had net deferred tax liabilities of approximately $7.8 million and $12.9 million at December 31, 2019 and 2018 , respectively. Subsequent to the deemed formation of the Operating Company as a partnership for federal income tax purposes upon the Partnership’s IPO, deferred taxes are no longer provided on the underlying assets and liabilities of the Predecessor but are provided on the difference between the Partnership’s basis for financial accounting purposes and basis for federal income tax purposes in its investment in the Operating Company. The Partnership incurred a tax net operating loss (“NOL”) in the current year due principally to the Operating Company’s tax deductions for accelerated depreciation, which exceeded its other items of taxable income. At December 31, 2019 , the Partnership had approximately $0.2 million of federal NOLs with an indefinite carryforward life. The Partnership principally operates in the state of Texas and, for the year ended December 31, 2019 , has accrued state income tax expense of $0.2 million for its share of Texas margin tax attributable to the Partnership’s results which are included in a combined tax return filed by Diamondback. Management considers the likelihood that the Partnership’s net operating losses and other deferred tax attributes will be utilized prior to their expiration, if applicable. At December 31, 2019 , management’s assessment included consideration of all available positive and negative evidence including the anticipated timing of reversal of deferred tax liabilities. As a result of the assessment, management determined that it is more likely than not that the Partnership will realize its deferred tax assets. At December 31, 2019 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
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. The Partnership estimates asset retirement obligations pursuant to the provisions of FASB ASC Topic 410, “Asset Retirement and Environmental Obligations.” The initial measurement of asset retirement obligations at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with produced water disposal wells. Given the unobservable nature of the inputs, including plugging costs and useful lives, the initial measurement of the ARO liability is deemed to use Level 3 inputs. See Note 7 — Asset Retirement Obligations for further discussion of the Partnership’s asset retirement obligations. The fair value of the Operating Company’s revolving credit facility approximates its 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. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Partnership leases certain compression assets and other equipment. The Partnership adopted ASC Topic 842 on January 1, 2019 using the optional transition method of adoption. The Partnership elected a package of practical expedients that together allows an entity to not reassess (i) whether a contract is or contains a lease, (ii) lease classification and (iii) initial direct costs. In addition, the Partnership elected the following practical expedients: (i) to not reassess certain land easements; (ii) to not apply the recognition requirements under the standard to short-term leases; (iii) to not reassess lease terms for lease terms on leases entered into prior to the effective date of adoption and (iv) lessor accounting policy election to exclude lessor costs paid directly by the lessee. For leases where the Partnership is the lessee, the Partnership recorded a total of $1.2 million in right-of-use assets and corresponding new lease liabilities on its Consolidated Balance Sheet representing the present value of its future operating lease payments. Adoption of the standard did not require an adjustment to the opening balance of retained earnings. The discount rate used to determine present value was based on the rate of interest that the Partnership estimated it would have to pay to borrow (on a collateralized-basis over a similar term) an amount equal to the lease payments in a similar economic environment as of January 1, 2019. The Partnership is required to reassess the discount rate for any new and modified lease contracts as of the lease effective date. The right-of-use assets and lease liabilities recognized upon adoption of ASC Topic 842 were based on the lease classifications, lease commitment amounts and terms recognized under the prior lease accounting guidance. Leases with an initial term of twelve months or less are considered short-term leases and are not recorded on the balance sheet. The following table summarizes operating lease costs for the year ended December 31, 2019 : Year Ended December 31, 2019 (In thousands) Operating lease costs $ 1,890 For the year ended December 31, 2019 , cash paid for operating lease liabilities, and reported in cash flows provided by operating activities on the Partnership’s Statement of Consolidated Cash Flows, was $1.9 million . During the year ended December 31, 2019 , the Partnership recorded an additional $0.9 million of right-of-use assets in exchange for new lease liabilities. The operating lease right-of-use assets were reported on the Consolidated Balance Sheet. As of December 31, 2019 , the operating right-of-use assets were $0.4 million and the operating lease liabilities were $0.4 million , of which $0.4 million was classified as current. As of December 31, 2019 , the weighted average remaining lease term was 0.5 years and the weighted average discount rate was 8.4% . Schedule of Operating Lease Liability Maturities The following table summarizes undiscounted cash flows owed by the Partnership to lessors pursuant to contractual agreements in effect as of December 31, 2019 : As of December 31, 2019 (In thousands) 2020 $ 426 2021 — 2022 — 2023 — 2024 — Thereafter — Total lease payments 426 Less: interest 8 Present value of lease liabilities $ 418 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Partnership may be a party to various legal proceedings, disputes and claims from time to time arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. The Partnership’s management believes there are currently no such matters that will have a material adverse effect on its results of operations, cash flows or financial position. As of December 31, 2019 , the Partnership’s anticipated future capital commitments for its equity method investments total $169.9 million |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Cash Distribution On February 13, 2020 , the board of directors of the General Partner approved a cash distribution for the fourth quarter of 2019 of $0.29 per common unit, payable on March 10, 2020 , to unitholders of record at the close of business on March 3, 2020 . |
REPORT OF OPERATING BUSINESS SE
REPORT OF OPERATING BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
REPORT OF OPERATING BUSINESS SEGMENTS | REPORT OF OPERATING BUSINESS SEGMENTS The Partnership’s operations are located in the United States and are reported in two operating business segments: (i) midstream services and (ii) real estate operations. The segments comprise the structure used by its Chief Operating Decision Maker (“CODM”) to make key operating decisions and assess performance. The following tables summarize the results of the Partnership’s operating business segments during the periods presented: Year Ended December 31, 2019 Midstream Services Real Estate Operations Total (In thousands) Revenues—related party $ 409,120 $ — $ 409,120 Revenues—third party 24,324 — 24,324 Rental income—related party — 4,771 4,771 Rental income—third party — 7,890 7,890 Other real estate income—related party — 379 379 Other real estate income—third party — 1,189 1,189 Total revenues 433,444 14,229 447,673 Direct operating expenses 106,311 — 106,311 Cost of goods sold (exclusive of depreciation and amortization) 62,856 — 62,856 Real estate operating expenses — 2,643 2,643 Loss on disposal of property, plant and equipment 1,524 — 1,524 Depreciation, amortization and accretion 34,775 7,561 42,336 Loss from equity method investments 6,329 — 6,329 Segment profit 221,649 4,025 225,674 General and administrative expenses (12,663 ) Interest expense, net (1,039 ) Net income before income taxes 221,649 4,025 211,972 Provision for income taxes 26,253 Net income $ 221,649 $ 4,025 $ 185,719 Segment assets $ 1,435,659 $ 108,239 $ 1,636,393 Year Ended December 31, 2018 Midstream Services Real Estate Operations Total (In thousands) Revenues—related party $ 169,396 $ — $ 169,396 Revenues—third party 3,292 — 3,292 Rental income—related party — 2,383 2,383 Rental income—third party — 8,125 8,125 Other real estate income—related party — 228 228 Other real estate income—third party — 1,043 1,043 Total revenues 172,688 11,779 184,467 Direct operating expenses 33,714 — 33,714 Cost of goods sold (exclusive of depreciation and amortization) 38,852 — 38,852 Real estate operating expenses — 1,872 1,872 Loss on disposal of property, plant and equipment 2,577 — 2,577 Depreciation, amortization and accretion 18,088 7,046 25,134 Segment profit 79,457 2,861 82,318 General and administrative expenses (1,999 ) Net income before income taxes 79,457 2,861 80,319 Provision for income taxes 17,359 Net income $ 79,457 $ 2,861 $ 62,960 Segment assets $ 456,997 $ 104,923 $ 604,017 |
QUARTERLY FINANCIAL DATA (Unaud
QUARTERLY FINANCIAL DATA (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL DATA (Unaudited) | QUARTERLY FINANCIAL DATA (Unaudited) 2019 First Second Third Fourth (In thousands, except per unit amounts) Revenues $ 95,176 $ 111,774 $ 115,415 $ 125,308 Income from operations 50,138 55,602 52,558 61,042 Income tax expense 10,832 8,724 3,294 3,403 Net income after taxes 39,356 46,679 48,080 51,604 Net income before initial public offering 39,356 26,639 — — Net income subsequent to initial public offering — 20,040 48,080 51,604 Net income attributable to non-controlling interest subsequent to initial public offering — 15,237 36,549 39,136 Net income (loss) attributable to Rattler Midstream LP $ — $ 4,803 $ 11,531 $ 12,468 Net income (loss) attributable to limited partners per common unit: Basic $ — $ 0.11 $ 0.26 $ 0.27 Diluted $ — $ 0.11 $ 0.26 $ 0.27 2018 First Second Third Fourth (In thousands) Revenues $ 33,875 $ 49,788 $ 49,301 $ 51,503 Income from operations 17,070 21,020 22,672 19,557 Income tax expense 4,133 4,089 4,892 4,245 Net income after taxes $ 14,396 $ 15,472 $ 17,780 $ 15,312 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Prior to May 28, 2019, the Partnership’s services were performed by the Predecessor. The consolidated financial statements include the results of the Predecessor for the periods presented prior to the closing of the IPO on May 28, 2019. The Predecessor financial statements have been prepared from the separate records maintained by the Partnership and may not necessarily be indicative of the actual results of operations that might have occurred if the Predecessor had been operated separately during the periods reported. The consolidated results of operations following the completion of the IPO are presented together with the results of operations pertaining to the Predecessor. The assets of the Predecessor consist of produced water disposal wells and related gathering systems, office buildings, surface land and an oil gathering system and asset retirement obligations related to these assets, which were contributed effective January 1, 2019. See Note 4 — Acquisitions . The capital contribution of the net proceeds from the IPO to the Operating Company in exchange for 29% of the limited liability company units of the Operating Company was accounted for as a combination of entities under common control, with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests. The Partnership did not own any assets prior to May 28, 2019, the date of the equity contribution agreement by and between the Partnership and the Predecessor. Prior to the IPO, the Predecessor was a wholly owned subsidiary of Diamondback. For periods prior to May 28, 2019, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in members’ equity of the Predecessor and, for periods on and after May 28, 2019, the accompanying consolidated financial statements and related notes thereto represent the financial position, results of operations, cash flows and changes in partners’ equity of the Partnership and its partially owned subsidiary. The consolidated financial statements include the accounts of the Partnership and its subsidiaries after all significant intercompany balances and transactions have been eliminated upon consolidation. Prior to 2018, the Partnership’s operations comprised a single operating business segment; however, with the contribution of Tall Towers, the Partnership’s operations are now reported in two operating business segments: (i) midstream services and (ii) real estate operations. See Note 19 — Report of Operating Business Segments . |
Use of Estimates | Use of Estimates Certain amounts included in or affecting the Partnership’s financial statements and related notes 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, but are not limited to, (i) revenue accruals, (ii) the fair value of long-lived assets and (iii) asset retirement obligations (“ARO”). |
Cash | Cash Cash represents unrestricted cash maintained in bank deposit accounts. |
Accounts Receivable-Related Party | Accounts Receivable-Related Party Accounts receivable-related party consist of receivables from Diamondback, or one of its affiliates. The receivable balance represents operating income less certain cash payments as of December 31, 2019 and 2018 |
Sourced Water Inventory | Sourced Water Inventory Sourced water inventory is stated at the lower of historical cost or net realizable value. Inventory costs are determined under the weighted-average method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment (“PP&E”) consist of land, gathering pipelines, facilities and related equipment, which are stated at the lower of historical cost less accumulated depreciation, amortization and accretion, or fair value, if impaired. The Partnership capitalizes construction-related direct labor and material costs. Maintenance and repair costs are expensed as incurred. PP&E assets are depreciated using the straight-line method over the useful lives of the assets ranging from ten to thirty years |
Equity Method Investments | Equity Method Investments |
Real Estate Assets | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation and amortization. The Partnership considers the period of future benefit of each respective asset to determine the appropriate useful life and depreciation and amortization is calculated using the straight-line method over the assigned useful life. Upon acquisition of real estate properties, the purchase price is allocated to tangible assets, consisting of land and building, and to identified intangible assets and liabilities, which may include the value of above market and below market leases and the value of in-place leases. The allocation of the purchase price is based upon the fair value of each component of the property. Although independent appraisals may be used to assist in the determination of fair value, in many cases these values will be based upon management’s assessment of each property, the selling prices of comparable properties and the discounted value of cash flows from the asset. The fair values of above market and below market in-place leases will be recorded based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) an estimate of fair market lease rates for the corresponding in-place leases measured over a period equal to the non-cancelable term of the lease including any bargain renewal periods. The above market and below market lease values will be capitalized as intangible lease assets or liabilities. Above market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases. Below market lease values will be amortized as an adjustment of rental income over the remaining term of the respective leases, including any bargain renewal periods. If a lease were to be terminated prior to its stated expiration, all unamortized amounts of above market and below market in-place lease values relating to that lease would be recorded as an adjustment to rental income. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Partnership reviews its long-lived assets whenever events or circumstances indicate the carrying amount of a long-lived asset may not be recoverable. An impairment loss is recognized only if the carrying amount of a long-lived asset is not recoverable from its estimated future undiscounted cash flows. An impairment loss is the difference between the carrying amount |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Partnership’s financial instruments consist of cash, receivables, payables and a revolving credit facility. The carrying amount of cash, receivables and payables approximates fair value because of the short-term nature of the instruments. The fair value of the revolving credit facility approximates its carrying value based on the borrowing rates currently available to the Partnership for bank loans with similar terms and maturities. |
Asset Retirement Obligations | Asset Retirement Obligations The Partnership recognizes a liability based on the estimated costs of retiring tangible long-lived assets. The liability is recognized at its fair value and measured using expected discounted future cash outflows of the ARO when the obligation originates, which generally is when an asset is acquired or constructed. The carrying amount of the associated asset is increased commensurate with the liability recognized. Accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value. Subsequent to the initial recognition, the liability is adjusted for any changes in the expected value of the retirement obligation (with a corresponding adjustment to PP&E) and for accretion of the liability due to the passage of time, until the obligation is settled. If the fair value of the estimated obligation changes, an adjustment is recorded for both the retirement liability and the associated asset carrying amount. Revisions in estimated AROs may result from changes in estimated retirement costs and the estimated timing of settling the obligations. |
Commitments and Contingencies | Commitments and Contingencies The Partnership may be a party to various legal proceedings, disputes and claims from time to time arising in the course of its business, including those that arise from interpretation of federal and state laws and regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. 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. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum amount of the range is accrued. 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. |
Revenue Recognition and Real Estate Revenue Recognition | Revenue Recognition Midstream revenues are comprised of crude oil and natural gas gathering and transportation services, produced water gathering and disposal and water sourcing and distribution services. The Partnership provides gathering and compression and water handling and treatment services under fee-based contracts based on throughput. Under these arrangements, the Partnership receives fees for gathering crude oil and natural gas, compression services, and water handling, disposal, and treatment services. The revenue the Partnership earns from these arrangements is directly related to (i) in the case of natural gas gathering and compression, the volumes of metered natural gas that the Partnership gathers, compresses, transports and delivers to natural gas to other transmission delivery points, (ii) in the case of oil gathering, the volumes of metered oil that the Partnership gathers, transports and delivers to other transmission delivery points, (iii) in the case of sourced water services, the quantities of sourced water obtained, transported and delivered to the Partnership’s customers for use in their well drilling and completion operations and (iv) in the case of produced water gathering and disposal services, the quantities of produced water gathered, transported and disposed of for the Partnership’s customers. The Partnership recognizes revenue when it satisfies a performance obligation by delivering a service to a customer. The Partnership earns substantially all of its midstream revenues from commercial agreements with Diamondback and its affiliates. Real Estate Revenue Recognition The Partnership recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. Rental income—related party is comprised of revenues earned from lease agreements with Diamondback and its affiliates. Other real estate revenue is derived from tenants’ use of parking, telecommunications and miscellaneous services. Parking and other miscellaneous service revenue is recognized when the related services are utilized by the tenants. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses are recognized as revenue in the period the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Partnership is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. |
Income Taxes | Income Taxes The Partnership is treated as a corporation for U.S. federal income tax purposes as a result of its election to be treated as a corporation effective May 24, 2019. Subsequent to the effective date of the Partnership’s election, it is subject to U.S. federal and state income tax at corporate rates. 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 the Tax Sharing Agreement with Diamondback, as discussed further in Note 14 — Income Taxes . In addition to the Partnership’s 2019 tax year, the Predecessor’s 2016 through 2018 |
Capital Contributions | Capital Contributions A contribution of a set of assets and related liabilities (a “set”) to the Partnership from Diamondback is analyzed to determine whether the set meets the definition of a business in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, “Business Combinations”. A contribution of a set of assets that does not constitute a business is recognized at the date of the transfer at its carrying amount in the accounts of Diamondback in accordance with the guidance regarding transactions between entities under common control in ASC 805-50. Management then evaluates whether the asset contribution results in a change in the reporting entity, as defined in ASC Topic 250, “Accounting Changes and Error Corrections”. An asset contribution that does not constitute a change in the reporting entity is accounted for prospectively from the date of the transfer, while an asset contribution that constitutes a change in the reporting entity would result in retrospective application of the transaction. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Partnership considers the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. The following table provides a brief description of recent accounting pronouncements and the Partnership’s analysis of the effects on its financial statements: Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Recently Adopted Pronouncements ASU 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. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have transfers between fair value levels. ASU 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. Q1 2020 The Partnership adopted this update prospectively effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any capitalized implementation costs. ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326)” This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any cost method investments. Pronouncements Not Yet Adopted 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. Q1 2021 This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Partnership does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity. |
Revenue from Contracts with Customers | The Partnership generates revenues by charging fees on a per unit basis for gathering crude oil and natural gas, delivering and storing sourced water, and collecting, recycling and disposing of produced water. The Partnership adopted ASC Topic 606, “Revenue from Contracts with Customers” (“ASC Topic 606”) on January 1, 2018, using the modified retrospective method. Under ASC Topic 606, performance obligations are the unit of account and generally represent distinct goods or services that are promised to customers. The adoption of ASC Topic 606 did not have a material impact on the recognition, measurement and presentation of the Partnership’s revenues and expenses. Performance Obligations : For gathering crude oil and natural gas, delivering sourced water, and collecting, recycling and disposing of produced water, the Partnership’s performance obligations are satisfied over time using volumes delivered to measure progress. The Partnership records revenue related to the volumes delivered at the contract price at the time of delivery. The Partnership began generating revenue from water sales during first quarter 2018 upon the contribution of sourced water assets from Diamondback. For its water sales, each unit sold is generally considered a distinct good and the related performance obligation is generally satisfied at a point in time (i.e. at the time control of the water is transferred to the customer). The Partnership recognizes revenue from the sale of water when its contracted performance obligation to deliver water is satisfied and control of the water is transferred to the customer. This usually occurs when the water is delivered to the location specified in the contract and the title and risks of rewards and ownership are transferred to the customer. Transaction Price Allocated to Remaining Performance Obligations : The majority of the Partnership’s revenue agreements have a term greater than one year and, as such, the Partnership has utilized the practical expedient in ASC Topic 606, which states that the Partnership is not required to disclose the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Under its revenue agreements, each delivery generally represents a separate performance obligation; therefore, future volumes delivered are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required. The remainder of the Partnership’s revenue agreements, which relate to agreements with third parties, are short-term in nature with a term of one year or less. The Partnership has utilized an additional practical expedient in ASC Topic 606 which exempts it from disclosure of the transaction price allocated to remaining performance obligations if the performance obligation is part of an agreement that has an original expected duration of one year or less. Contract Balances : Under the Partnership’s revenue agreements, the Partnership invoices customers after the Partnership’s performance obligations have been satisfied, at which point payment is unconditional. As such, the Partnership’s revenue agreements do not give rise to contract assets or liabilities under ASC Topic 606. The following is a summary of the Partnership’s types of revenue agreements: • Crude Oil Gathering Agreement . Under the crude oil gathering agreements, the Partnership receives a volumetric fee per Bbl for gathering and delivering crude oil produced within the dedicated acreage. • Gas Gathering and Compression Agreement . Under the gas gathering and compression agreement, the Partnership receives a volumetric fee per MMBtu for gathering and processing all natural gas produced by Diamondback within the dedicated acreage. • Produced and Flowback Water Gathering and Disposal Agreements . Under the produced and flowback water gathering and disposal agreements, the Partnership receives a fee for gathering or disposing of water produced from operating crude oil and natural gas wells within the dedicated acreage. The fee is comprised of a volumetric fee per Bbl for the produced water services the Partnership provides. In addition, the Partnership retains the skim oil that is a part of the produced water. The skim oil is processed by a third party, which provides the Partnership a volumetric fee per Bbl. • Sourced Water Purchase and Services Agreements . Under the sourced water purchase and services agreements, the Partnership receives a fee for sourcing, transporting and delivering all raw sourced water and recycled sourced water required by Diamondback and third parties to carry out its oil and natural gas activities within the dedicated acreage. The fee is comprised of a volumetric fee per Bbl for the type of sourced water services the Partnership provides. Real Estate Contracts: The Partnership recognizes rental revenue from tenants on a straight-line basis over the lease term when collectability is reasonably assured and the tenant has taken possession or controls the physical use of the leased asset. Rental income—related party is comprised of revenues earned from lease agreements with Diamondback and its affiliates. Other real estate revenue is derived from tenants’ use of parking, telecommunications and miscellaneous services. Parking and other miscellaneous service revenue is recognized when the related services are utilized by the tenants. Tenant recoveries related to reimbursement of real estate taxes, insurance, repairs and maintenance and other operating expenses are recognized as revenue in the period the applicable expenses are incurred. The reimbursements are recognized and presented gross, as the Partnership is generally the primary obligor with respect to purchasing goods and services from third-party suppliers, has discretion in selecting the supplier and bears the associated credit risk. |
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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consists of the following: December 31, 2019 2018 (In thousands) Capital expenditures accrued $ 42,160 $ 37,984 Direct operating expense accrued 22,119 7,541 Sourced water purchases accrued 9,531 4,670 Other 2,815 1,609 Total accrued liabilities $ 76,625 $ 51,804 |
Schedule of accumulated other comprehensive income | The following table provides changes in the components of accumulated other comprehensive income, net of related income tax effects: (In thousands) Balance as of December 31, 2018 $ — Other comprehensive loss before reclassifications (823 ) Change in accumulated other comprehensive income (823 ) Balance as of December 31, 2019 $ (823 ) |
Description of recent accounting pronouncements | The following table provides a brief description of recent accounting pronouncements and the Partnership’s analysis of the effects on its financial statements: Standard Description Date of Adoption Effect on Financial Statements or Other Significant Matters Recently Adopted Pronouncements ASU 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. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have a history of credit losses. ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement” This update modifies the fair value measurement disclosure requirements specifically related to Level 3 fair value measurements and transfers between levels. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have transfers between fair value levels. ASU 2018-15, “Intangibles - Goodwill and Other - Internal - Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” This update requires the capitalization of implementation costs incurred in a hosting arrangement that is a service contract for internal-use software. Training and certain data conversion costs cannot be capitalized. The entity is required to expense the capitalized implementation costs over the term of the hosting agreement. Q1 2020 The Partnership adopted this update prospectively effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any capitalized implementation costs. ASU 2019-05, “Financial Instruments-Credit Losses (Topic 326)” This update allows a fair value option to be elected for certain financial assets, other than held-to-maturity debt securities, that were previously required to be measured at amortized cost basis. Q1 2020 The Partnership adopted this update effective January 1, 2020. The adoption of this update did not have an impact on its financial position, results of operations or liquidity since it does not have any cost method investments. Pronouncements Not Yet Adopted 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. Q1 2021 This update is effective for public business entities beginning after December 15, 2020 with early adoption permitted. The Partnership does not believe the adoption of this standard will have an impact on its financial position, results of operations or liquidity. |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of revenue | The table also identifies the operating business segment to which the disaggregated revenues relate. For more information on operating business segments, see Note 19 — Report of Operating Business Segments . Year Ended December 31, 2019 2018 2017 Segment (In thousands) Type of Service: Sourced water gathering $ 115,135 $ 76,976 $ — Midstream Produced water gathering and disposal 275,882 72,352 27,864 Midstream Crude oil gathering 27,206 16,038 7,641 Midstream Natural gas gathering 14,317 6,447 2,909 Midstream Surface revenue (non ASC 606 revenues) 904 875 881 Midstream Real estate contracts (non ASC 606 revenues) 14,229 11,779 — Real Estate Total revenues $ 447,673 $ 184,467 $ 39,295 |
REAL ESTATE ASSETS (Tables)
REAL ESTATE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Schedule of real estate assets and intangible lease assets | The following schedules present the cost and related accumulated depreciation or amortization (as applicable) of the Partnership’s real estate assets and intangible lease assets: As of December 31, Weighted Average Useful Lives 2019 2018 (Years) (In thousands) Buildings 20-30 $ 102,375 $ 92,349 Tenant improvements 15 4,501 4,160 Land improvements 15 484 484 Total real estate assets 107,360 96,993 Less: accumulated depreciation (8,681 ) (3,970 ) Total investment in real estate, net $ 98,679 $ 93,023 As of December 31, Weighted Average Useful Lives 2019 2018 (Months) (In thousands) In-place lease intangibles 45 $ 11,389 $ 10,866 Less: accumulated amortization (5,927 ) (3,076 ) In-place lease intangibles, net 5,462 7,790 Above-market lease intangibles 45 3,623 3,623 Less: accumulated amortization (1,015 ) (459 ) Above-market lease intangibles, net 2,608 3,164 Total intangible lease assets, net $ 8,070 $ 10,954 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The following table sets forth the Partnership’s property, plant and equipment: Estimated As of December 31, Useful Lives 2019 2018 (Years) (In thousands) Produced water disposal systems 10-30 $ 600,797 $ 220,084 Crude oil gathering systems (1) 30 129,658 66,760 Natural gas gathering and compression systems (1) 10-30 98,426 60,350 Sourced water gathering systems (1) 30 101,887 68,694 Total property, plant and equipment 930,768 415,888 Land N/A 88,509 70,373 Less: accumulated depreciation, amortization and accretion (61,132 ) (28,317 ) Total property, plant and equipment, net $ 958,145 $ 457,944 (1) Included in gathering systems are $138.6 million and $55.2 million of assets at December 31, 2019 and December 31, 2018 |
ASSET RETIREMENT OBLIGATIONS (T
ASSET RETIREMENT OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Asset Retirement Obligation [Abstract] | |
Schedule of asset retirement obligation | The following table reflects the changes in the Partnership’s asset retirement obligation for the following periods: Year Ended December 31, 2019 2018 2017 (In thousands) Asset retirement obligation, beginning of period $ 561 $ 383 $ 194 Liabilities incurred 9,188 143 166 Liabilities settled (21 ) — — Estimates revised 5 — — Accretion expense during period 1,614 35 23 Asset retirement obligation, end of period $ 11,347 $ 561 $ 383 |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of equity method investments | At December 31, 2019 and 2018 , the carrying values of the Partnership’s equity method investments are as follows: Ownership Interest December 31, 2019 December 31, 2018 (In thousands) EPIC Crude Holdings, LP 10 % $ 109,806 $ — Gray Oak Pipeline, LLC 10 % 115,840 — Wink to Webster Pipeline LLC 4 % 34,124 — OMOG JV LLC 60 % 219,098 — Amarillo Rattler, LLC 50 % 690 — Total $ 479,558 $ — The following summarizes the income (loss) of equity method investees reflected in the Consolidated Statement of Operations. Year Ended December 31, 2019 2018 2017 (In thousands) EPIC Crude Holdings, LP $ (6,597 ) $ — $ — Gray Oak Pipeline, LLC 831 — — Wink to Webster Pipeline LLC (539 ) — — OMOG JV LLC (24 ) — — HMW LLC — — 1,366 Total $ (6,329 ) $ — $ 1,366 The following tables sets forth summarized financial information of the investments in which the Partnership acquired an interest in 2019 , as follows: As of December 31, 2019 (In thousands) Balance Sheet Current assets $ 550,624 Property, plant and equipment 5,190,371 Other assets 196,470 Total assets 5,937,465 Current liabilities 516,155 Other liabilities 2,051,110 Member's Equity 3,370,200 Total liabilities and member's equity $ 5,937,465 Year Ended December 31, 2019 Income Statement (In thousands) Revenue $ 53,898 Operating expenses $ 116,400 Net income $ (72,227 ) The carrying value of the Partnership’s equity method investments as of December 31, 2019 was as follows: Year Ended December 31, 2019 (In thousands) Carrying value of equity method investments $ 479,558 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consisted of the following as of the dates indicated: As of December 31, 2019 December 31, 2018 (In thousands) Operating Company revolving credit facility $ 424,000 $ — Total long-term debt $ 424,000 $ — |
Schedule of financial covenants | The Credit Agreement also contains financial maintenance covenants that require the maintenance of the financial ratios described below: Financial Covenant Required Ratio Consolidated Total Leverage Ratio Not greater than 5.00 to 1.00 (or not greater than 5.50 to 1.00 for 3 fiscal quarters following certain acquisitions), but if the Consolidated Senior Secured Leverage Ratio (as defined in the Credit Agreement) is applicable, then not greater than 5.25 to 1.00) Consolidated Senior Secured Leverage Ratio commencing with the last day of any fiscal quarter in which the Financial Covenant Election (as defined in the Credit Agreement) is made Not greater than 3.50 to 1.00 Consolidated Interest Coverage Ratio (as defined in the Credit Agreement) Not less than 2.50 to 1.00 |
UNIT-BASED COMPENSATION (Tables
UNIT-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of nonvested share activity | The following table presents the phantom unit activity under the LTIP for the year ended December 31, 2019 : Phantom Weighted Average Unvested at May 28, 2019 — $ — Granted 2,284,038 $ 19.14 Forfeited (57,143 ) $ 19.21 Unvested at December 31, 2019 2,226,895 $ 19.14 |
UNITHOLDERS_ EQUITY AND PARTN_2
UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of partnership’s common units | The following table summarizes changes in the number of the Partnership’s common units: Common Units Balance at May 28, 2019 — Common units issued in public offerings 43,700,000 Balance at December 31, 2019 43,700,000 The following table summarizes changes in the number of the Partnership’s class B units: Class B Units Balance at May 28, 2019 — Units related to tax conversion 107,815,152 Balance at December 31, 2019 107,815,152 |
Schedule of cash distributions | The following table presents cash distributions approved by the board of directors of the General Partner for the periods presented: Declaration Date Quarter Amount per Common Unit Payment Date October 31, 2019 Q3 2019 $ 0.34 November 22, 2019 February 13, 2020 Q4 2019 $ 0.29 March 10, 2020 |
EARNINGS PER COMMON UNIT (Table
EARNINGS PER COMMON UNIT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net income per common unit | Basic and diluted net income per common unit is calculated using the two-class method. The two class method is an earnings allocation proportional to the respective ownership among holders of common units and participating securities. Basic earnings per common unit is calculated by dividing net income by the weighted-average number of common units outstanding during the period. Diluted earnings per common unit also considers the dilutive effect of unvested common units granted under the LTIP, calculated using the treasury stock method. May 28, 2019 to December 31, 2019 (In thousands, except per unit amounts) Net income attributable to Rattler Midstream LP $ 28,802 Less: net income allocated to participating securities (1) (751 ) Net income attributable to common unitholders 28,051 Weighted average common units outstanding: Basic weighted average common units outstanding 43,622 Diluted weighted average common units outstanding 43,622 Net income per common unit, basic $ 0.64 Net income per common unit, diluted $ 0.64 (1) Distribution equivalent rights granted to employees are considered participating securities. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Partnership had the following units that were excluded from the computation of diluted earnings per unit because their inclusion would have been anti-dilutive for the periods presented but could potentially dilute basic earnings per unit in future periods: May 28, 2019 to December 31, 2019 (in thousands) Phantom units 44 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes | The components of the provision for income taxes from continuing operations for the years ended December 31, 2019 , 2018 and 2017 are as follows: Year Ended December 31, 2019 Subsequent to IPO 2019 Prior to IPO 2018 2017 Predecessor Predecessor Predecessor (In thousands) Current income tax provision: Federal $ — $ 7,694 $ 11,089 $ — State 189 270 425 217 Total current income tax provision 189 7,964 11,514 217 Deferred income tax provision: Federal 7,600 9,983 5,689 4,237 State 282 235 156 234 Total deferred income tax provision 7,882 10,218 5,845 4,471 Total provision for income taxes $ 8,071 $ 18,182 $ 17,359 $ 4,688 |
Reconciliation of statutory federal income tax amount to the recorded expense | A reconciliation of the statutory federal income tax amount from continuing operations to the recorded expense is as follows: Year Ended December 31, 2019 Subsequent to IPO 2019 Prior to IPO 2018 2017 (In thousands) Income tax expense at the federal statutory rate (1) $ 26,679 $ 17,677 $ 16,867 $ 8,873 Impact of nontaxable noncontrolling interest (18,982 ) — — — State income tax expense, net of federal tax effect 372 505 492 317 Income tax benefit relating to change in statutory tax rate — — — (4,502 ) Other, net 2 — — — Provision for income taxes $ 8,071 $ 18,182 $ 17,359 $ 4,688 (1) The federal statutory rates for the years ended December 31, 2019 , 2018 and 2017 were 21% , 21% , and 35% , respectively. |
Components of the Partnership’s deferred tax assets and liabilities | The components of the deferred tax assets and liabilities as of December 31, 2019 and 2018 of the Partnership and the Predecessor are as follows: Year Ended December 31, 2019 2018 Predecessor (In thousands) Deferred tax assets Net operating loss and other carryforwards (indefinite life) $ 232 $ — Investment in the Operating Company — — Other — — Total deferred tax assets 232 — Deferred tax liabilities Investment in the Operating Company 8,059 — Midstream assets — 12,912 Other — — Total deferred tax liabilities 8,059 12,912 Net deferred tax liabilities $ 7,827 $ 12,912 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | The following table summarizes operating lease costs for the year ended December 31, 2019 : Year Ended December 31, 2019 (In thousands) Operating lease costs $ 1,890 |
Lessee, Operating Lease, Liability, Maturity | The following table summarizes undiscounted cash flows owed by the Partnership to lessors pursuant to contractual agreements in effect as of December 31, 2019 : As of December 31, 2019 (In thousands) 2020 $ 426 2021 — 2022 — 2023 — 2024 — Thereafter — Total lease payments 426 Less: interest 8 Present value of lease liabilities $ 418 |
REPORT OF OPERATING BUSINESS _2
REPORT OF OPERATING BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of operating business segments | The following tables summarize the results of the Partnership’s operating business segments during the periods presented: Year Ended December 31, 2019 Midstream Services Real Estate Operations Total (In thousands) Revenues—related party $ 409,120 $ — $ 409,120 Revenues—third party 24,324 — 24,324 Rental income—related party — 4,771 4,771 Rental income—third party — 7,890 7,890 Other real estate income—related party — 379 379 Other real estate income—third party — 1,189 1,189 Total revenues 433,444 14,229 447,673 Direct operating expenses 106,311 — 106,311 Cost of goods sold (exclusive of depreciation and amortization) 62,856 — 62,856 Real estate operating expenses — 2,643 2,643 Loss on disposal of property, plant and equipment 1,524 — 1,524 Depreciation, amortization and accretion 34,775 7,561 42,336 Loss from equity method investments 6,329 — 6,329 Segment profit 221,649 4,025 225,674 General and administrative expenses (12,663 ) Interest expense, net (1,039 ) Net income before income taxes 221,649 4,025 211,972 Provision for income taxes 26,253 Net income $ 221,649 $ 4,025 $ 185,719 Segment assets $ 1,435,659 $ 108,239 $ 1,636,393 Year Ended December 31, 2018 Midstream Services Real Estate Operations Total (In thousands) Revenues—related party $ 169,396 $ — $ 169,396 Revenues—third party 3,292 — 3,292 Rental income—related party — 2,383 2,383 Rental income—third party — 8,125 8,125 Other real estate income—related party — 228 228 Other real estate income—third party — 1,043 1,043 Total revenues 172,688 11,779 184,467 Direct operating expenses 33,714 — 33,714 Cost of goods sold (exclusive of depreciation and amortization) 38,852 — 38,852 Real estate operating expenses — 1,872 1,872 Loss on disposal of property, plant and equipment 2,577 — 2,577 Depreciation, amortization and accretion 18,088 7,046 25,134 Segment profit 79,457 2,861 82,318 General and administrative expenses (1,999 ) Net income before income taxes 79,457 2,861 80,319 Provision for income taxes 17,359 Net income $ 79,457 $ 2,861 $ 62,960 Segment assets $ 456,997 $ 104,923 $ 604,017 |
QUARTERLY FINANCIAL DATA (Una_2
QUARTERLY FINANCIAL DATA (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 2019 First Second Third Fourth (In thousands, except per unit amounts) Revenues $ 95,176 $ 111,774 $ 115,415 $ 125,308 Income from operations 50,138 55,602 52,558 61,042 Income tax expense 10,832 8,724 3,294 3,403 Net income after taxes 39,356 46,679 48,080 51,604 Net income before initial public offering 39,356 26,639 — — Net income subsequent to initial public offering — 20,040 48,080 51,604 Net income attributable to non-controlling interest subsequent to initial public offering — 15,237 36,549 39,136 Net income (loss) attributable to Rattler Midstream LP $ — $ 4,803 $ 11,531 $ 12,468 Net income (loss) attributable to limited partners per common unit: Basic $ — $ 0.11 $ 0.26 $ 0.27 Diluted $ — $ 0.11 $ 0.26 $ 0.27 2018 First Second Third Fourth (In thousands) Revenues $ 33,875 $ 49,788 $ 49,301 $ 51,503 Income from operations 17,070 21,020 22,672 19,557 Income tax expense 4,133 4,089 4,892 4,245 Net income after taxes $ 14,396 $ 15,472 $ 17,780 $ 15,312 |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) $ / shares in Units, $ in Thousands | May 30, 2019shares | May 28, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)segmentshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | [1] | Feb. 14, 2020shares | |
Limited Partners' Capital Account [Line Items] | ||||||||
Cash contribution from Diamondback | $ | $ 1,000 | |||||||
Cash contribution from the general partner | $ | 1,000 | |||||||
Payments of distributions to affiliates | $ | $ 726,500 | $ 751 | $ 0 | [1] | $ 0 | |||
General partners capital account, percentage of preferred cash distribution received | 8.00% | |||||||
Number of operating segments | segment | 2 | |||||||
Over-Allotment Option | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Number of shares issued (in shares) | shares | 5,700,000 | |||||||
IPO | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Shares price (in dollars per share) | $ / shares | $ 17.50 | |||||||
Net proceeds received from sale of common units | $ | $ 719,400 | |||||||
Class B Units | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Common units issued (in shares) | shares | 107,815,152 | 107,815,152 | 0 | |||||
Units outstanding (in shares) | shares | 0 | 107,815,152 | 0 | 107,815,152 | ||||
Diamondback Energy, Inc. | Class B Units | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Units outstanding (in shares) | shares | 107,815,152 | |||||||
Rattler MIdstream LP | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners, ownership interest | 71.00% | |||||||
General partners, ownership interest | 100.00% | |||||||
Rattler MIdstream LP | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners, ownership interest | 71.00% | |||||||
Rattler Midstream Partners LLC | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
General partners, ownership interest | 29.00% | 29.00% | ||||||
Rattler Midstream Partners LLC | Diamondback Energy, Inc. | ||||||||
Limited Partners' Capital Account [Line Items] | ||||||||
Limited partners, ownership interest | 71.00% | |||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives (in years) | 10 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment estimated useful lives (in years) | 30 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Method Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Equity method investment, other than temporary impairment | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Capital expenditures accrued | $ 42,160 | $ 37,984 | |
Direct operating expense accrued | 22,119 | 7,541 | |
Sourced water purchases accrued | 9,531 | 4,670 | |
Other | 2,815 | 1,609 | |
Total accrued liabilities | $ 76,625 | $ 51,804 | [1] |
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 1,115,148 | $ 527,126 | [1] | $ 292,608 | [1] | $ 92,729 | |
Other comprehensive loss before reclassifications | (823) | ||||||
Total other comprehensive income | (823) | (823) | 0 | [1] | 0 | ||
Ending balance | 1,115,840 | 1,115,840 | 527,126 | [1] | $ 292,608 | ||
AOCI Including Portion Attributable to Noncontrolling Interest | |||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||||||
Beginning balance | 0 | ||||||
Ending balance | $ (823) | $ (823) | $ 0 | ||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Unrecognized tax benefits material impact on the effective tax rate | $ 0 |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Capital Contributions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Contributed Assets [Line Items] | |
Contribution of property | $ 456.1 |
Capital contribution related to equity method investments | 149.5 |
Capital contribution related to elimination of current and deferred liabilities | 31.1 |
Capital contribution in additional assets and liabilities, net, related to operations | (25.3) |
Office building | |
Contributed Assets [Line Items] | |
Contribution of property | 9.2 |
Land | |
Contributed Assets [Line Items] | |
Contribution of property | 18.1 |
Sourced water asset | |
Contributed Assets [Line Items] | |
Contribution of property | 9.4 |
Produced water disposal assets | |
Contributed Assets [Line Items] | |
Contribution of property | 228.3 |
Crude oil assets | |
Contributed Assets [Line Items] | |
Contribution of property | $ 35.8 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disaggregation of Revenue [Line Items] | |||||||||||||
Surface revenue (non ASC 606 revenues) | $ 904 | $ 875 | $ 881 | ||||||||||
Real estate contracts (non ASC 606 revenues) | 14,229 | 11,779 | 0 | ||||||||||
Total revenues | $ 125,308 | $ 115,415 | $ 111,774 | $ 95,176 | $ 51,503 | $ 49,301 | $ 49,788 | $ 33,875 | 447,673 | 184,467 | [1] | 39,295 | [1] |
Sourced water gathering | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
ASC 606 revenues | 115,135 | 76,976 | 0 | ||||||||||
Produced water gathering and disposal | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
ASC 606 revenues | 275,882 | 72,352 | 27,864 | ||||||||||
Crude oil gathering | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
ASC 606 revenues | 27,206 | 16,038 | 7,641 | ||||||||||
Natural gas gathering | |||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||
ASC 606 revenues | $ 14,317 | $ 6,447 | $ 2,909 | ||||||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
ACQUISITIONS (Details)
ACQUISITIONS (Details) bbl / d in Thousands, $ in Millions | Jan. 01, 2019USD ($)SWDpitwellPWD_wellsystem | Jan. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2019USD ($)bbl / dwell | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 456.1 | |||||
Number of water disposal wells acquired | well | 3 | |||||
Payment to acquire produced water disposal wells and related assets | $ 17.3 | |||||
Increase of disposal capacity (in barrels per day) | bbl / d | 65 | |||||
Sourced Water Asset Contribution | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 32.8 | |||||
Sourced Water Inventory Contribution | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 6 | |||||
Tall Tower | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 110 | $ 110 | ||||
Midstream Assets | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 18.2 | |||||
Midstream Land | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | 1.5 | |||||
Field office | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 1.3 | |||||
Ajax | Water Wells | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | well | 17 | |||||
Ajax | Produced Water Disposal | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | SWD | 4 | |||||
Ajax | Gathering system | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | system | 1 | |||||
Ajax | Hydraulic Fracturing Pits | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | pit | 5 | |||||
Ajax | Sourced Water Transportation System | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | system | 1 | |||||
Ajax | Ajax Contribution | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 21.5 | |||||
Energen | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Asset retirement obligations, associated with assets contribution | $ 3 | |||||
Energen | Produced Water Disposal | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Number of oil and gas properties | PWD_well | 56 | |||||
Energen | Energen Contribution | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Contribution of property | $ 279 |
REAL ESTATE ASSETS (Details)
REAL ESTATE ASSETS (Details) - USD ($) | Jan. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Real Estate [Line Items] | |||||
Payments to acquire real estate and real estate joint ventures | $ 456,100,000 | ||||
Buildings, Gross | 102,375,000 | $ 92,349,000 | |||
Tenant improvements | 4,501,000 | 4,160,000 | |||
Land improvements | 484,000 | 484,000 | |||
Total real estate assets | 107,360,000 | 96,993,000 | |||
Less: accumulated depreciation | (8,681,000) | (3,970,000) | |||
Total investment in real estate, net | 98,679,000 | 93,023,000 | |||
Finite-lived intangibles assets, net | 8,070,000 | 10,954,000 | |||
Depreciation and amortization expense for real estate assets | $ 7,600,000 | 7,000,000 | $ 0 | ||
In-place lease intangibles | |||||
Real Estate [Line Items] | |||||
Intangible assets, weighted average useful lives (in years) | 45 months | ||||
Finite-lived intangible assets, gross | $ 11,389,000 | 10,866,000 | |||
Less: accumulated amortization | (5,927,000) | (3,076,000) | |||
Finite-lived intangibles assets, net | $ 5,462,000 | 7,790,000 | |||
Above-market lease intangibles | |||||
Real Estate [Line Items] | |||||
Intangible assets, weighted average useful lives (in years) | 45 months | ||||
Finite-lived intangible assets, gross | $ 3,623,000 | 3,623,000 | |||
Less: accumulated amortization | (1,015,000) | (459,000) | |||
Finite-lived intangibles assets, net | 2,608,000 | 3,164,000 | |||
Lease intangibles | |||||
Real Estate [Line Items] | |||||
Estimated amortization expense, year one | 8,100,000 | ||||
Estimated amortization expense, year two | 8,100,000 | ||||
Estimated amortization expense, year three | 8,100,000 | ||||
Estimated amortization expense, year four | 8,100,000 | ||||
Estimated amortization expense, year five | 8,100,000 | ||||
Tall Tower | |||||
Real Estate [Line Items] | |||||
Payments to acquire real estate and real estate joint ventures | $ 110,000,000 | $ 110,000,000 | |||
Field office | |||||
Real Estate [Line Items] | |||||
Payments to acquire real estate and real estate joint ventures | $ 1,300,000 | ||||
A-Street Building | |||||
Real Estate [Line Items] | |||||
Payments to acquire real estate and real estate joint ventures | $ 9,200,000 | ||||
Tenant improvements | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 15 years | ||||
Land improvements | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 15 years | ||||
Minimum | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 10 years | ||||
Minimum | Buildings | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 20 years | ||||
Maximum | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 30 years | ||||
Maximum | Buildings | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 30 years |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 930,768,000 | $ 415,888,000 | [1] | |
Land | 88,509,000 | 70,373,000 | [1] | |
Less: accumulated depreciation, amortization and accretion | (61,132,000) | (28,317,000) | [1] | |
Property, plant and equipment, net | 958,145,000 | 457,944,000 | [1] | |
Assets not subject to depreciation, amortization and accretion | 138,600,000 | 55,200,000 | ||
Depreciation expense related to property, plant and equipment | 33,200,000 | 18,100,000 | $ 3,500,000 | |
Capitalized internal costs | 5,100,000 | 0 | $ 0 | |
Capitalized interest related to property, plant and equipment | 1,800,000 | |||
Produced water disposal systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | 600,797,000 | 220,084,000 | ||
Losses related to weather damage | 7,500,000 | |||
Expect insurance proceeds on damage | 6,000,000 | |||
Net loss related to weather damage | $ 1,500,000 | |||
Crude oil gathering systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 30 years | |||
Property, plant and equipment, gross | $ 129,658,000 | 66,760,000 | ||
Natural gas gathering and compression systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment, gross | $ 98,426,000 | 60,350,000 | ||
Sourced water gathering systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 30 years | |||
Property, plant and equipment, gross | $ 101,887,000 | $ 68,694,000 | ||
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 10 years | |||
Minimum | Produced water disposal systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 10 years | |||
Minimum | Natural gas gathering and compression systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 10 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 30 years | |||
Maximum | Produced water disposal systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 30 years | |||
Maximum | Natural gas gathering and compression systems | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment estimated useful lives (in years) | 30 years | |||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
ASSET RETIREMENT OBLIGATIONS (D
ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Asset retirement obligation, beginning of period | $ 561 | $ 383 | $ 194 |
Liabilities incurred | 9,188 | 143 | 166 |
Liabilities settled | (21) | 0 | 0 |
Estimates revised | 5 | 0 | 0 |
Accretion expense during period | 1,614 | 35 | 23 |
Asset retirement obligation, end of period | $ 11,347 | $ 561 | $ 383 |
EQUITY METHOD INVESTMENTS - Sch
EQUITY METHOD INVESTMENTS - Schedule of Equity Method Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 20, 2019 | Oct. 01, 2019 | Feb. 15, 2019 | Feb. 01, 2019 | |||
Schedule of Equity Method Investments [Line Items] | |||||||||
Equity method investments | $ 479,558 | $ 0 | [1] | ||||||
Income (loss) of equity method investees | $ (6,329) | 0 | [1] | $ 1,366 | [1] | ||||
EPIC Crude Holdings, LP | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership Interest | 10.00% | 10.00% | |||||||
Equity method investments | $ 109,806 | 0 | |||||||
Income (loss) of equity method investees | $ (6,597) | 0 | 0 | ||||||
Gray Oak Pipeline, LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership Interest | 10.00% | 10.00% | |||||||
Equity method investments | $ 115,840 | 0 | |||||||
Income (loss) of equity method investees | $ 831 | 0 | 0 | ||||||
Wink to Webster Pipeline LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership Interest | 4.00% | ||||||||
Equity method investments | $ 34,124 | 0 | |||||||
Income (loss) of equity method investees | $ (539) | 0 | 0 | ||||||
OMOG JV LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership Interest | 60.00% | 60.00% | |||||||
Equity method investments | $ 219,098 | 0 | |||||||
Income (loss) of equity method investees | $ (24) | 0 | 0 | ||||||
Amarillo Rattler, LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Ownership Interest | 50.00% | 50.00% | |||||||
Equity method investments | $ 690 | 0 | |||||||
HMW LLC | |||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||
Income (loss) of equity method investees | $ 0 | $ 0 | $ 1,366 | ||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
EQUITY METHOD INVESTMENTS - Nar
EQUITY METHOD INVESTMENTS - Narrative (Details) | Jun. 30, 2018SWDPWD_well | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 20, 2019Mcf / dmi | Nov. 07, 2019 | Oct. 01, 2019 | Jul. 30, 2019 | Mar. 29, 2019USD ($) | Feb. 15, 2019 | Feb. 01, 2019 | Oct. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Aggregate difference between the carrying amounts of these investments and the amounts of underlying equity in net assets | $ 7,000,000 | ||||||||||
Equity method investment, other than temporary impairment | 0 | $ 0 | |||||||||
Equity method investment, capitalized interest | $ 900,000 | ||||||||||
EPIC Crude Holdings, LP | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership Interest | 10.00% | 10.00% | |||||||||
Gray Oak Pipeline, LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership Interest | 10.00% | 10.00% | |||||||||
Amarillo Rattler, LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership Interest | 50.00% | 50.00% | |||||||||
OMOG JV LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership Interest | 60.00% | 60.00% | |||||||||
2.52% Short-Term Promissory Note | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Proceeds from short-term promissory note | $ 22,600,000 | ||||||||||
Gray Oak Pipeline, LLC | 2.52% Short-Term Promissory Note | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Borrowing amount | $ 123,000,000 | ||||||||||
Promissory note stated interest rate | 2.52% | ||||||||||
HMW Fluid Management LLC | Produced Water Disposal Wells | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of oil and gas properties | SWD | 4 | ||||||||||
Joint Venture of Wink to Webster Project | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Member ownership percentage | 4.00% | ||||||||||
Reliance Gathering, LLC | OMOG JV LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Percentage acquired | 100.00% | ||||||||||
Dawson, Martin And Andrews Counties, Texas | Amarillo Rattler, LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Gas gathering and cryogenic processing system capacity | Mcf / d | 40,000 | ||||||||||
Distance of gathering and regional transportation pipelines | mi | 84 | ||||||||||
Martin County, Texas | Amarillo Rattler, LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Gas gathering and cryogenic processing system capacity | Mcf / d | 60,000 | ||||||||||
Asset Contribution Agreement | HMW Fluid Management LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Ownership Interest | 25.00% | ||||||||||
Asset Contribution Agreement | Produced Water Disposal Wells | HMW Fluid Management LLC | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Number of oil and gas properties | PWD_well | 2 | ||||||||||
Ownership percentage of oil and gas property | 50.00% |
EQUITY METHOD INVESTMENTS - Sum
EQUITY METHOD INVESTMENTS - Summarized Financial Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Balance Sheet | |
Current assets | $ 550,624 |
Property, plant and equipment | 5,190,371 |
Other assets | 196,470 |
Total assets | 5,937,465 |
Current liabilities | 516,155 |
Other liabilities | 2,051,110 |
Member's Equity | 3,370,200 |
Total liabilities and member's equity | 5,937,465 |
Income Statement | |
Revenue | 53,898 |
Operating expenses | 116,400 |
Net income | $ (72,227) |
DEBT - Credit Agreement - Wells
DEBT - Credit Agreement - Wells Fargo (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Line of Credit Facility [Line Items] | |||
Total long-term debt | $ 424,000,000 | $ 0 | [1] |
Rattler Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Operating Company revolving credit facility | 424,000,000 | $ 0 | |
Revolving credit facility maximum borrowing capacity | 600,000,000 | ||
Available borrowings capacity | $ 176,000,000 | ||
Rattler Credit Facility | Minimum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee on the unused portion of the borrowing base | 0.25% | ||
Rattler Credit Facility | Minimum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.25% | ||
Rattler Credit Facility | Minimum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Rattler Credit Facility | Maximum | |||
Line of Credit Facility [Line Items] | |||
Commitment fee on the unused portion of the borrowing base | 0.375% | ||
Rattler Credit Facility | Maximum | Base Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.25% | ||
Rattler Credit Facility | Maximum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.25% | ||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
DEBT - Financial Covenants (Det
DEBT - Financial Covenants (Details) - Rattler Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
Maximum | |
Line of Credit Facility [Line Items] | |
Consolidated Total Leverage Ratio | 5 |
Consolidated Total Leverage Ratio, for three fiscal quarters following certain acquisitions | 5.50 |
Consolidated Total Leverage Ratio when consolidated senior secured leverage ration is applicable | 5.25 |
Consolidated Senior Secured Leverage, not greater than 3.50 | 3.50 |
Minimum | |
Line of Credit Facility [Line Items] | |
Consolidated Interest Coverage Ratio, not less than 2.50 | 2.50 |
UNIT-BASED COMPENSATION - Narra
UNIT-BASED COMPENSATION - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of common units reserved for issuance (in shares) | shares | 15,151,515 |
Unit-based compensation expenses | $ 5.2 |
Phantom Share Units (PSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested phantom units | $ 37.4 |
Unrecognized compensation cost related to unvested phantom units, period for recognition | 2 years 4 months 24 days |
UNIT-BASED COMPENSATION - Phant
UNIT-BASED COMPENSATION - Phantom Units (Details) - Phantom Share Units (PSUs) - $ / shares | 7 Months Ended | |
Dec. 31, 2019 | May 28, 2019 | |
Phantom Units | ||
Unvested at May 28, 2019 (in shares) | 0 | |
Granted (in shares) | 2,284,038 | |
Forfeited (in shares) | (57,143) | |
Unvested at December 31, 2019 (in shares) | 2,226,895 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Unvested at May 28, 2019 (in USD Per share) | $ 19.14 | $ 0 |
Granted (in USD Per share) | 19.14 | |
Forfeited (in USD Per share) | 19.21 | |
Unvested at December 31, 2019 (in USD Per share) | $ 19.14 | $ 0 |
UNITHOLDERS_ EQUITY AND PARTN_3
UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS (Details) - $ / shares | May 28, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Feb. 13, 2020 | Oct. 31, 2019 | Dec. 31, 2018 |
Common Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Common units issued (in shares) | 43,700,000 | 43,700,000 | 0 | |||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Units outstanding, begging balance (in shares) | 0 | 0 | ||||
Units issued in public offerings (in shares) | 43,700,000 | |||||
Units outstanding, ending balance (in shares) | 0 | 43,700,000 | 43,700,000 | |||
Partners' capital, cash distribution (in USD per common unit) | $ 0.25 | $ 0.34 | ||||
Partners' capital, cash distribution, period of record date after quarter end | 60 days | |||||
Class B Units | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Common units issued (in shares) | 107,815,152 | 107,815,152 | 107,815,152 | 0 | ||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Units outstanding, begging balance (in shares) | 0 | 0 | ||||
Units related to tax conversion (in shares) | 107,815,152 | |||||
Units outstanding, ending balance (in shares) | 0 | 107,815,152 | 107,815,152 | |||
Diamondback Energy, Inc. | Common Units | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Units outstanding, ending balance (in shares) | 0 | 0 | ||||
Diamondback Energy, Inc. | Class B Units | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Units outstanding, ending balance (in shares) | 107,815,152 | 107,815,152 | ||||
Rattler Midstream Partners LLC | Diamondback Energy, Inc. | ||||||
Limited Partners' Capital Account [Line Items] | ||||||
Limited partners, ownership interest | 71.00% | |||||
Subsequent Event | Common Units | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Partners' capital, cash distribution (in USD per common unit) | $ 0.29 |
EARNINGS PER COMMON UNIT (Detai
EARNINGS PER COMMON UNIT (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 7 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2019 | |
Earnings Per Share, Basic [Abstract] | |||||
Net income attributable to Rattler Midstream LP | $ 4,803 | $ 12,468 | $ 11,531 | $ 28,802 | |
Less: net income allocated to participating securities | (751) | ||||
Net income attributable to common unitholders | $ 28,051 | ||||
Basic weighted average common units outstanding (in shares) | 43,622 | ||||
Diluted weighted average common units outstanding (in shares) | 43,622 | ||||
Net income per common unit, basic (in USD per share) | $ 0.27 | $ 0.26 | $ 0.11 | $ 0.64 | |
Net income per common unit, diluted (in USD per share) | $ 0.27 | $ 0.26 | $ 0.11 | $ 0.64 | |
Effect of dilutive securities: | |||||
Phantom units (in shares) | 44 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Jun. 30, 2018SWDPWD_well | May 27, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Jul. 31, 2018USD ($) | Jan. 01, 2018USD ($) | Feb. 28, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2014 | |
Related Party Transaction [Line Items] | |||||||||||||
Property, Plant and Equipment, Net | $ 958,145,000 | $ 958,145,000 | $ 457,944,000 | [1] | |||||||||
Equity method investments | 479,558,000 | 479,558,000 | 0 | [1] | |||||||||
Asset retirement obligation | 11,347,000 | 11,347,000 | 561,000 | $ 383,000 | $ 194,000 | ||||||||
State income tax expense | $ 270,000 | 189,000 | 425,000 | 217,000 | |||||||||
Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Property, Plant and Equipment, Net | $ 208,600,000 | ||||||||||||
Equity method investments | 7,900,000 | ||||||||||||
Asset retirement obligation | $ 400,000 | ||||||||||||
Fair value of assets contributed | $ 46,700,000 | ||||||||||||
Fasken Center Agreements | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Related party transaction amount | 5,200,000 | ||||||||||||
Crude Oil Gathering Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | 9,900,000 | 16,000,000 | 7,600,000 | ||||||||||
Gas Gathering and Compression Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | 14,300,000 | 6,400,000 | 2,900,000 | ||||||||||
Flowback Water Gathering and Disposal Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 271,600,000 | 72,400,000 | 27,900,000 | ||||||||||
Exchange Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Unit exchange term, number of days for exchange calculation | 20 days | ||||||||||||
Unit exchange term, calculation base | $ 1,000,000 | $ 1,000,000 | |||||||||||
Unit exchange term, exchange ratio | shares | 1 | 1 | |||||||||||
Sourced Water Services Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Revenue from related parties | $ 112,700,000 | 77,000,000 | |||||||||||
Equity Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of units exchanged (in shares) | shares | 38,000,000 | ||||||||||||
General Partner | Partnership Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payment under Services and Secondment Agreement | 400,000 | 0 | 0 | ||||||||||
General Partner | Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Property, Plant and Equipment, Net | $ 297,600,000 | ||||||||||||
Asset retirement obligation | $ 3,300,000 | ||||||||||||
General Partner | Services and Secondment Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Payment under Services and Secondment Agreement | 5,100,000 | $ 0 | $ 0 | ||||||||||
State | Tax Sharing Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
State income tax expense | $ 200,000 | ||||||||||||
HMW Fluid Management LLC | Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Ownership Interest | 25.00% | ||||||||||||
Sourced water asset | Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Carrying value of assets contributed | $ 32,800,000 | ||||||||||||
Sourced water asset, inventory | Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Carrying value of assets contributed | $ 6,000,000 | ||||||||||||
Produced Water Disposal Wells | HMW Fluid Management LLC | Asset Contribution Agreement | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Ownership percentage of oil and gas property | 50.00% | ||||||||||||
Number of oil and gas properties | PWD_well | 2 | ||||||||||||
HMW Fluid Management LLC | Produced Water Disposal Wells | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of oil and gas properties | SWD | 4 | ||||||||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | May 27, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 28, 2019 | |||
Operating Loss Carryforwards [Line Items] | ||||||||||||||||
Elimination of current and deferred tax liabilities | $ 31,100 | |||||||||||||||
Income tax expense | $ 3,403 | $ 3,294 | $ 8,724 | $ 10,832 | $ 4,245 | $ 4,892 | $ 4,089 | $ 4,133 | $ 18,182 | $ 8,071 | $ 26,253 | $ 17,359 | [1] | $ 4,688 | [1] | |
Deferred Tax Benefit | 0 | 0 | 0 | (4,502) | ||||||||||||
Net noncurrent deferred tax liabilities | 7,827 | 12,912 | 7,827 | 7,827 | 12,912 | |||||||||||
Federal NOLs with indefinite carryforward life | $ 232 | $ 0 | 232 | $ 232 | 0 | |||||||||||
State income tax expense | $ 270 | $ 189 | $ 425 | $ 217 | ||||||||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | May 27, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Current income tax provision: | |||||||||||||||
Federal | $ 7,694 | $ 0 | $ 11,089 | $ 0 | |||||||||||
State | 270 | 189 | 425 | 217 | |||||||||||
Total current income tax provision | 7,964 | 189 | 11,514 | 217 | |||||||||||
Deferred income tax provision: | |||||||||||||||
Federal | 9,983 | 7,600 | 5,689 | 4,237 | |||||||||||
State | 235 | 282 | 156 | 234 | |||||||||||
Total deferred income tax provision | 10,218 | 7,882 | $ 26,253 | 5,845 | [1] | 4,471 | [1] | ||||||||
Total provision for income taxes | $ 3,403 | $ 3,294 | $ 8,724 | $ 10,832 | $ 4,245 | $ 4,892 | $ 4,089 | $ 4,133 | $ 18,182 | $ 8,071 | $ 26,253 | $ 17,359 | [1] | $ 4,688 | [1] |
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Statutory Federal Income Tax Amount to Recorded Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | May 27, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax expense at the federal statutory rate | $ 17,677 | $ 26,679 | $ 16,867 | $ 8,873 | |||||||||||
Impact of nontaxable noncontrolling interest | 0 | (18,982) | 0 | 0 | |||||||||||
State income tax expense, net of federal tax effect | 505 | 372 | 492 | 317 | |||||||||||
Income tax benefit relating to change in statutory tax rate | 0 | 0 | 0 | (4,502) | |||||||||||
Other, net | 0 | 2 | 0 | 0 | |||||||||||
Total provision for income taxes | $ 3,403 | $ 3,294 | $ 8,724 | $ 10,832 | $ 4,245 | $ 4,892 | $ 4,089 | $ 4,133 | $ 18,182 | $ 8,071 | $ 26,253 | $ 17,359 | [1] | $ 4,688 | [1] |
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Net operating loss and other carryforwards (indefinite life) | $ 232 | $ 0 |
Investment in the Operating Company | 0 | 0 |
Other | 0 | 0 |
Total deferred tax assets | 232 | 0 |
Deferred tax liabilities | ||
Investment in the Operating Company | 8,059 | 0 |
Midstream assets | 0 | 12,912 |
Other | 0 | 0 |
Total deferred tax liabilities | 8,059 | 12,912 |
Net deferred tax liabilities | $ 7,827 | $ 12,912 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Right of use assets | $ 418 | |
Present value of lease liabilities | 418 | |
Operating lease costs | 1,890 | |
Cash paid for operating lease liabilities | 1,900 | |
Additional amount of operating lease right of use asset recorded | 900 | |
Short-term lease liability | $ 418 | |
Weighted average remaining lease term | 6 months | |
Weighted average discount rate | 8.40% | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right of use assets | $ 1,200 |
LEASES - Schedule of Operating
LEASES - Schedule of Operating Lease Liability Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 426 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | 426 |
Less: interest | 8 |
Present value of lease liabilities | $ 418 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 169.9 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Common Unit - $ / shares | Feb. 13, 2020 | Oct. 31, 2019 | May 28, 2019 |
Subsequent Event [Line Items] | |||
Partners' capital, cash distribution (in USD per common unit) | $ 0.34 | $ 0.25 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Partners' capital, cash distribution (in USD per common unit) | $ 0.29 |
REPORT OF OPERATING BUSINESS _3
REPORT OF OPERATING BUSINESS SEGMENTS (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2019USD ($) | May 27, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | May 27, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | [1] | |||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Number of operating segments | segment | 2 | |||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | $ 125,308 | $ 115,415 | $ 111,774 | $ 95,176 | $ 51,503 | $ 49,301 | $ 49,788 | $ 33,875 | $ 447,673 | $ 184,467 | [1] | $ 39,295 | ||||||||||
Direct operating expenses | 106,311 | 33,714 | [1] | 10,557 | ||||||||||||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 62,856 | 38,852 | [1] | 0 | ||||||||||||||||||
Real estate operating expenses | 2,643 | 1,872 | [1] | 0 | ||||||||||||||||||
Loss on disposal of property, plant and equipment | 1,524 | 2,577 | [1] | 0 | ||||||||||||||||||
Depreciation, amortization and accretion | 42,336 | 25,134 | [1] | 3,486 | ||||||||||||||||||
Loss from equity method investments | 6,329 | 0 | [1] | (1,366) | ||||||||||||||||||
Segment profit | 225,674 | 82,318 | ||||||||||||||||||||
General and administrative expenses | (12,663) | (1,999) | [1] | (1,265) | ||||||||||||||||||
Interest expense, net | (1,039) | 0 | [1] | 0 | ||||||||||||||||||
Net income before income taxes | 61,042 | 52,558 | 55,602 | 50,138 | 19,557 | 22,672 | 21,020 | 17,070 | 211,972 | 80,319 | [1] | 25,353 | ||||||||||
Provision for income taxes | 3,403 | 3,294 | 8,724 | 10,832 | 4,245 | 4,892 | 4,089 | 4,133 | $ 18,182 | $ 8,071 | 26,253 | 17,359 | [1] | 4,688 | ||||||||
Net income | $ 20,040 | $ 26,639 | 51,604 | $ 48,080 | $ 46,679 | $ 39,356 | 15,312 | $ 17,780 | $ 15,472 | $ 14,396 | $ 9,396 | $ 3,185 | $ 5,146 | $ 2,938 | $ 65,995 | 119,724 | 185,719 | 62,960 | [1] | 20,665 | ||
Segment assets | 1,636,393 | 604,017 | [1] | 1,636,393 | 1,636,393 | 604,017 | [1] | |||||||||||||||
Revenues—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 409,120 | 169,396 | [1] | 38,414 | ||||||||||||||||||
Revenues—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 24,324 | 3,292 | [1] | 881 | ||||||||||||||||||
Rental income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 4,771 | 2,383 | [1] | 0 | ||||||||||||||||||
Rental income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 7,890 | 8,125 | [1] | 0 | ||||||||||||||||||
Other real estate income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 379 | 228 | [1] | 0 | ||||||||||||||||||
Other real estate income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 1,189 | 1,043 | [1] | $ 0 | ||||||||||||||||||
Midstream Services | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 433,444 | 172,688 | ||||||||||||||||||||
Direct operating expenses | 106,311 | 33,714 | ||||||||||||||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 62,856 | 38,852 | ||||||||||||||||||||
Real estate operating expenses | 0 | 0 | ||||||||||||||||||||
Loss on disposal of property, plant and equipment | 1,524 | 2,577 | ||||||||||||||||||||
Depreciation, amortization and accretion | 34,775 | 18,088 | ||||||||||||||||||||
Loss from equity method investments | 6,329 | |||||||||||||||||||||
Segment profit | 221,649 | 79,457 | ||||||||||||||||||||
Net income before income taxes | 221,649 | 79,457 | ||||||||||||||||||||
Net income | 221,649 | 79,457 | ||||||||||||||||||||
Segment assets | 1,435,659 | 456,997 | 1,435,659 | 1,435,659 | 456,997 | |||||||||||||||||
Midstream Services | Revenues—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 409,120 | 169,396 | ||||||||||||||||||||
Midstream Services | Revenues—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 24,324 | 3,292 | ||||||||||||||||||||
Midstream Services | Rental income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Midstream Services | Rental income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Midstream Services | Other real estate income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Midstream Services | Other real estate income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Real Estate Operations | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 14,229 | 11,779 | ||||||||||||||||||||
Direct operating expenses | 0 | 0 | ||||||||||||||||||||
Cost of goods sold (exclusive of depreciation and amortization) | 0 | 0 | ||||||||||||||||||||
Real estate operating expenses | 2,643 | 1,872 | ||||||||||||||||||||
Loss on disposal of property, plant and equipment | 0 | 0 | ||||||||||||||||||||
Depreciation, amortization and accretion | 7,561 | 7,046 | ||||||||||||||||||||
Loss from equity method investments | 0 | |||||||||||||||||||||
Segment profit | 4,025 | 2,861 | ||||||||||||||||||||
Net income before income taxes | 4,025 | 2,861 | ||||||||||||||||||||
Net income | 4,025 | 2,861 | ||||||||||||||||||||
Segment assets | $ 108,239 | $ 104,923 | $ 108,239 | 108,239 | 104,923 | |||||||||||||||||
Real Estate Operations | Revenues—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Real Estate Operations | Revenues—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 0 | 0 | ||||||||||||||||||||
Real Estate Operations | Rental income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 4,771 | 2,383 | ||||||||||||||||||||
Real Estate Operations | Rental income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 7,890 | 8,125 | ||||||||||||||||||||
Real Estate Operations | Other real estate income—related party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | 379 | 228 | ||||||||||||||||||||
Real Estate Operations | Other real estate income—third party | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Total revenues | $ 1,189 | $ 1,043 | ||||||||||||||||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
QUARTERLY FINANCIAL DATA (Una_3
QUARTERLY FINANCIAL DATA (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2019 | May 27, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | May 27, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | [1] | Dec. 31, 2017 | [1] | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||
Revenues | $ 125,308 | $ 115,415 | $ 111,774 | $ 95,176 | $ 51,503 | $ 49,301 | $ 49,788 | $ 33,875 | $ 447,673 | $ 184,467 | $ 39,295 | ||||||||||
Income from operations | 61,042 | 52,558 | 55,602 | 50,138 | 19,557 | 22,672 | 21,020 | 17,070 | 211,972 | 80,319 | 25,353 | ||||||||||
Income tax expense | 3,403 | 3,294 | 8,724 | 10,832 | 4,245 | 4,892 | 4,089 | 4,133 | $ 18,182 | $ 8,071 | 26,253 | 17,359 | 4,688 | ||||||||
Net income | $ 20,040 | $ 26,639 | 51,604 | 48,080 | $ 46,679 | $ 39,356 | $ 15,312 | $ 17,780 | $ 15,472 | $ 14,396 | $ 9,396 | $ 3,185 | $ 5,146 | $ 2,938 | $ 65,995 | 119,724 | $ 185,719 | $ 62,960 | $ 20,665 | ||
Net income attributable to non-controlling interest subsequent to initial public offering | 15,237 | 39,136 | 36,549 | 90,922 | |||||||||||||||||
Net income (loss) attributable to Rattler Midstream LP | $ 4,803 | $ 12,468 | $ 11,531 | $ 28,802 | |||||||||||||||||
Net income (loss) attributable to limited partners per common unit: | |||||||||||||||||||||
Basic (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.11 | $ 0.64 | |||||||||||||||||
Diluted (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.11 | $ 0.64 | |||||||||||||||||
[1] | See Note 1 for information regarding the basis of financial statement presentation. |
Uncategorized Items - rattler20
Label | Element | Value |
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | $ 33,712,000 |
Member Units [Member] | Limited Partner [Member] | ||
Partners' Capital Account, Distributions | us-gaap_PartnersCapitalAccountDistributions | 33,712,000 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | us-gaap_ProfitLoss | $ 26,639,000 |