Cover
Cover - shares | 6 Months Ended | ||
Jun. 30, 2021 | Jul. 30, 2021 | Dec. 31, 2020 | |
Entity Information [Line Items] | |||
Document Type | 10-Q | ||
Document Quarterly Report | true | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 001-38919 | ||
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 Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 40,776,404 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | Q2 | ||
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 | 107,815,152 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 17,550 | $ 23,927 |
Accounts receivable—related party | 38,395 | 57,447 |
Accounts receivable—third party, net | 10,586 | 5,658 |
Sourced water inventory | 9,362 | 10,108 |
Other current assets | 855 | 1,127 |
Total current assets | 76,748 | 98,267 |
Property, plant and equipment: | ||
Land | 85,826 | 85,826 |
Property, plant and equipment | 1,018,174 | 1,012,777 |
Accumulated depreciation, amortization and accretion | (119,521) | (100,728) |
Total property, plant and equipment, net | 984,479 | 997,875 |
Right of use assets | 235 | 574 |
Equity method investments | 517,962 | 532,927 |
Real estate assets, net | 85,045 | 96,687 |
Intangible lease assets, net | 3,899 | 4,262 |
Deferred tax asset | 67,323 | 73,264 |
Other assets | 4,193 | 4,732 |
Total assets | 1,739,884 | 1,808,588 |
Current liabilities: | ||
Accounts payable | 90 | 139 |
Accrued liabilities | 39,621 | 42,508 |
Taxes payable | 217 | 192 |
Short-term lease liability | 235 | 574 |
Asset retirement obligations | 79 | 35 |
Total current liabilities | 40,242 | 43,448 |
Long-term debt | 496,953 | 569,947 |
Asset retirement obligations | 16,135 | 15,093 |
Total liabilities | 553,330 | 628,488 |
Commitments and contingencies (Note 15) | ||
Unitholders’ equity: | ||
General partner—Diamondback | 859 | 899 |
Common units—public (41,075,836 units issued and outstanding as of June 30, 2021 and 42,356,637 units issued and outstanding as of December 31, 2020) | 375,773 | 385,189 |
Class B units—Diamondback (107,815,152 units issued and outstanding as of June 30, 2021 and as of December 31, 2020) | 859 | 899 |
Accumulated other comprehensive income (loss) | 10 | (123) |
Total Rattler Midstream LP unitholders’ equity | 377,501 | 386,864 |
Non-controlling interest | 809,053 | 793,638 |
Non-controlling interest in accumulated other comprehensive income (loss) | 0 | (402) |
Total equity | 1,186,554 | 1,180,100 |
Total liabilities and unitholders’ equity | $ 1,739,884 | $ 1,808,588 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares | Jul. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Common Units | |||
Common units issued (in shares) | 41,075,836 | 42,356,637 | |
Units outstanding (in shares) | 41,075,836 | 42,356,637 | |
Class B Units | |||
Common units issued (in shares) | 107,815,152 | 107,815,152 | |
Units outstanding (in shares) | 107,815,152 | 107,815,152 | 107,815,152 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues: | ||||
Revenues | $ 101,131,000 | $ 88,735,000 | $ 199,939,000 | $ 218,130,000 |
Costs and expenses: | ||||
Direct operating expenses | 26,299,000 | 37,378,000 | 58,810,000 | 70,252,000 |
Cost of goods sold (exclusive of depreciation and amortization) | 10,298,000 | 4,744,000 | 19,109,000 | 20,705,000 |
Real estate operating expenses | 544,000 | 590,000 | 1,061,000 | 1,318,000 |
Depreciation, amortization and accretion | 15,239,000 | 12,100,000 | 26,485,000 | 24,606,000 |
Impairment and abandonments | 0 | 0 | 3,371,000 | 0 |
General and administrative expenses | 4,956,000 | 4,175,000 | 9,590,000 | 8,689,000 |
(Gain) loss on disposal of assets | 5,005,000 | 1,243,000 | 5,011,000 | 2,781,000 |
Total costs and expenses | 62,341,000 | 60,230,000 | 123,437,000 | 128,351,000 |
Income (loss) from operations | 38,790,000 | 28,505,000 | 76,502,000 | 89,779,000 |
Other income (expense): | ||||
Interest income (expense), net | (8,235,000) | (1,926,000) | (15,545,000) | (4,547,000) |
Gain (loss) on sale of equity method investments | 22,989,000 | 0 | 22,989,000 | 0 |
Income (loss) from equity method investments | 4,472,000 | (13,034,000) | 1,649,000 | (13,279,000) |
Total other income (expense), net | 19,226,000 | (14,960,000) | 9,093,000 | (17,826,000) |
Net income (loss) before income taxes | 58,016,000 | 13,545,000 | 85,595,000 | 71,953,000 |
Provision for (benefit from) income taxes | 3,539,000 | 1,083,000 | 5,210,000 | 4,903,000 |
Net income (loss) | 54,477,000 | 12,462,000 | 80,385,000 | 67,050,000 |
Less: Net income (loss) attributable to non-controlling interest | 42,032,000 | 9,640,000 | 61,925,000 | 51,197,000 |
Net income (loss) attributable to Rattler Midstream LP | $ 12,445,000 | $ 2,822,000 | $ 18,460,000 | $ 15,853,000 |
Net income (loss) attributable to limited partners per common unit: | ||||
Basic (in dollars per share) | $ 0.30 | $ 0.05 | $ 0.42 | $ 0.33 |
Diluted (in dollars per share) | $ 0.30 | $ 0.05 | $ 0.42 | $ 0.33 |
Weighted average number of limited partner common units outstanding: | ||||
Basic (in shares) | 41,033 | 43,812 | 41,386 | 43,756 |
Diluted (in shares) | 41,033 | 43,812 | 41,386 | 43,756 |
Revenues—related party | ||||
Revenues: | ||||
Revenues | $ 91,579,000 | $ 78,031,000 | $ 178,657,000 | $ 194,614,000 |
Revenues—third party | ||||
Revenues: | ||||
Revenues | 5,967,000 | 7,175,000 | 14,088,000 | 16,275,000 |
Other income—related party | ||||
Revenues: | ||||
Revenues | 2,542,000 | 1,470,000 | 5,082,000 | 2,988,000 |
Other income—third party | ||||
Revenues: | ||||
Revenues | $ 1,043,000 | $ 2,059,000 | $ 2,112,000 | $ 4,253,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 54,477 | $ 12,462 | $ 80,385 | $ 67,050 |
Other comprehensive income (loss): | ||||
Change in accumulated other comprehensive income (loss) of equity method investees attributable to non-controlling interest | 103 | (181) | 402 | (376) |
Change in accumulated other comprehensive income (loss) of equity method investees attributable to limited partner | 40 | (59) | 133 | (122) |
Total other comprehensive income (loss) | 143 | (240) | 535 | (498) |
Comprehensive income (loss) | $ 54,620 | $ 12,222 | $ 80,920 | $ 66,552 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Unitholders’ Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Limited Partners | General Partner | Common UnitsLimited Partners | Class B UnitsLimited Partners | Non-Controlling Interest | Accumulated Other Comprehensive Income | Non-Controlling Interest-Accumulated Other Comprehensive Income |
Beginning balance (in shares) at Dec. 31, 2019 | 43,700 | 107,815 | ||||||
Beginning balance at Dec. 31, 2019 | $ 1,115,840 | $ 979 | $ 737,777 | $ 979 | $ 376,928 | $ (198) | $ (625) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Unit-based compensation | 2,219 | 2,219 | ||||||
Distribution equivalent rights payments | (652) | (652) | ||||||
Distributions | (43,979) | (20) | (12,673) | $ (20) | (31,266) | |||
Other comprehensive income (loss) | (258) | (63) | (195) | |||||
Net income (loss) | 54,588 | $ 13,031 | 41,557 | |||||
Ending balance (in shares) at Mar. 31, 2020 | 43,700 | 107,815 | ||||||
Ending balance at Mar. 31, 2020 | 1,127,758 | 959 | $ 739,702 | $ 959 | 387,219 | (261) | (820) | |
Beginning balance (in shares) at Dec. 31, 2019 | 43,700 | 107,815 | ||||||
Beginning balance at Dec. 31, 2019 | 1,115,840 | 979 | $ 737,777 | $ 979 | 376,928 | (198) | (625) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Change in ownership of consolidated subsidiaries | $ (329,034) | |||||||
Other comprehensive income (loss) | (498) | |||||||
Net income (loss) | 67,050 | |||||||
Ending balance (in shares) at Jun. 30, 2020 | 43,996 | 107,815 | ||||||
Ending balance at Jun. 30, 2020 | 1,186,724 | 939 | $ 400,928 | $ 939 | 785,239 | (320) | (1,001) | |
Beginning balance (in shares) at Mar. 31, 2020 | 43,700 | 107,815 | ||||||
Beginning balance at Mar. 31, 2020 | 1,127,758 | 959 | $ 739,702 | $ 959 | 387,219 | (261) | (820) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Unit-based compensation (in shares) | 450 | |||||||
Unit-based compensation | 2,120 | $ 2,120 | ||||||
Change in ownership of consolidated subsidiaries | 90,613 | (329,034) | $ (329,034) | 419,647 | ||||
Units repurchased for tax withholding (in shares) | (154) | |||||||
Cash paid for tax withholding on vested common units | (1,365) | $ (1,365) | ||||||
Distribution equivalent rights payments | (644) | (644) | ||||||
Distributions | (43,980) | (20) | (12,673) | $ (20) | (31,267) | |||
Other comprehensive income (loss) | (240) | (59) | (181) | |||||
Net income (loss) | 12,462 | $ 2,822 | 9,640 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 43,996 | 107,815 | ||||||
Ending balance at Jun. 30, 2020 | 1,186,724 | 939 | $ 400,928 | $ 939 | 785,239 | (320) | (1,001) | |
Beginning balance (in shares) at Dec. 31, 2020 | 42,357 | 107,815 | ||||||
Beginning balance at Dec. 31, 2020 | 1,180,100 | 899 | $ 385,189 | $ 899 | 793,638 | (123) | (402) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Repurchased units as part of unit buyback (in shares) | (1,082) | |||||||
Repurchased units as part of unit buyback | (11,114) | $ (11,114) | ||||||
Unit-based compensation | 2,332 | $ 2,332 | ||||||
Issuance of common units (in shares) | 3 | |||||||
Other comprehensive income (loss) | 392 | 93 | 299 | |||||
Change in ownership of consolidated subsidiaries | (196) | $ 712 | (908) | |||||
Cash paid for tax withholding on vested common units | (21) | (21) | ||||||
Distribution equivalent rights payments | (418) | (418) | ||||||
Distributions | (29,866) | (20) | (8,263) | $ (20) | (21,563) | |||
Net income (loss) | 25,908 | $ 6,015 | 19,893 | |||||
Ending balance (in shares) at Mar. 31, 2021 | 41,278 | 107,815 | ||||||
Ending balance at Mar. 31, 2021 | 1,167,117 | 879 | $ 374,432 | $ 879 | 791,060 | (30) | (103) | |
Beginning balance (in shares) at Dec. 31, 2020 | 42,357 | 107,815 | ||||||
Beginning balance at Dec. 31, 2020 | 1,180,100 | 899 | $ 385,189 | $ 899 | 793,638 | (123) | (402) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Change in ownership of consolidated subsidiaries | 2,653 | |||||||
Other comprehensive income (loss) | 535 | |||||||
Net income (loss) | 80,385 | |||||||
Ending balance (in shares) at Jun. 30, 2021 | 41,076 | 107,815 | ||||||
Ending balance at Jun. 30, 2021 | 1,186,554 | 859 | $ 375,773 | $ 859 | 809,053 | 10 | 0 | |
Beginning balance (in shares) at Mar. 31, 2021 | 41,278 | 107,815 | ||||||
Beginning balance at Mar. 31, 2021 | 1,167,117 | 879 | $ 374,432 | $ 879 | 791,060 | (30) | (103) | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||||
Repurchased units as part of unit buyback (in shares) | (475) | |||||||
Repurchased units as part of unit buyback | (5,198) | $ (5,198) | ||||||
Unit-based compensation | 2,485 | $ 2,485 | ||||||
Issuance of common units (in shares) | 273 | |||||||
Other comprehensive income (loss) | 143 | 40 | 103 | |||||
Change in ownership of consolidated subsidiaries | (535) | $ 1,941 | $ 1,941 | (2,476) | ||||
Cash paid for tax withholding on vested common units | (1,693) | (1,693) | ||||||
Distribution equivalent rights payments | (456) | (456) | ||||||
Distributions | (29,786) | (20) | (8,183) | $ (20) | (21,563) | |||
Other comprehensive income (loss) | 143 | |||||||
Net income (loss) | 54,477 | $ 12,445 | 42,032 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 41,076 | 107,815 | ||||||
Ending balance at Jun. 30, 2021 | $ 1,186,554 | $ 859 | $ 375,773 | $ 859 | $ 809,053 | $ 10 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 80,385,000 | $ 67,050,000 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Provision for deferred income taxes | 5,210,000 | 4,903,000 |
Depreciation, amortization and accretion | 26,485,000 | 24,606,000 |
(Gain) loss on disposal of assets | 5,011,000 | 2,781,000 |
Unit-based compensation expense | 4,817,000 | 4,339,000 |
Impairment and abandonments | 3,371,000 | 0 |
Gain (loss) on sale of equity method investments | (22,989,000) | 0 |
(Income) loss from equity method investments | (1,649,000) | 13,279,000 |
Distributions from equity method investments | 9,055,000 | 0 |
Other | 1,007,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable—related party | 19,052,000 | 28,166,000 |
Accounts payable, accrued liabilities and taxes payable | (3,525,000) | (18,787,000) |
Other | 2,182,000 | 5,527,000 |
Net cash provided by (used in) operating activities | 128,412,000 | 131,864,000 |
Cash flows from investing activities: | ||
Additions to property, plant and equipment | (17,713,000) | (91,587,000) |
Contributions to equity method investments | (6,454,000) | (66,032,000) |
Distributions from equity method investments | 9,107,000 | 17,870,000 |
Proceeds from the sale of equity method investments | 23,455,000 | 0 |
Proceeds from the sale of real estate | 9,118,000 | 0 |
Other | 250,000 | 42,000 |
Net cash provided by (used in) investing activities | 17,763,000 | (139,707,000) |
Cash flows from financing activities: | ||
Proceeds from borrowings from credit facility | 24,000,000 | 99,000,000 |
Payments on credit facility | (98,000,000) | 0 |
Repurchased units as part of unit buyback | (16,312,000) | 0 |
Distribution to public | (16,446,000) | (25,346,000) |
Distribution to Diamondback | (43,166,000) | (62,573,000) |
Other | (2,628,000) | (2,701,000) |
Net cash provided by (used in) financing activities | (152,552,000) | 8,380,000 |
Net increase (decrease) in cash | (6,377,000) | 537,000 |
Cash at beginning of period | 23,927,000 | 10,633,000 |
Cash at end of period | 17,550,000 | 11,170,000 |
Supplemental disclosure of non-cash investing activity: | ||
Accrued liabilities related to capital expenditures | $ 5,963,000 | $ 39,710,000 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | ORGANIZATION AND BASIS OF PRESENTATION Organization The Partnership is a publicly traded Delaware limited partnership focused on owning, operating, developing and acquiring midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. As of June 30, 2021, the General Partner held a 100% general partner interest in the Partnership and Diamondback beneficially owned all of the Partnership’s 107,815,152 outstanding Class B units, representing approximately 72% of the Partnership’s total units outstanding. Diamondback owns and controls the General Partner. As of June 30, 2021, the Partnership owned a 28% controlling membership interest in the Operating Company and Diamondback owned, through its ownership of the Operating Company units, a 72% economic, non-voting interest in the Operating Company. 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 attributable to Diamondback. In addition to the Operating Company, other consolidated subsidiaries of the Partnership include Tall City Towers LLC (“Tall Towers”), Rattler Ajax Processing LLC and Rattler OMOG LLC. The Partnership also owns indirect interests in OMOG JV LLC (“OMOG”), EPIC Crude Holdings, LP (“EPIC”), EPIC Crude Holdings GP, LLC, Wink to Webster Pipeline LLC (“Wink to Webster”) and Gray Oak Pipeline, LLC (“Gray Oak”), which are accounted for as equity method investments as discussed further in Note 7— Equity Method Investments. Basis of Presentation The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated upon consolidation. The Partnership reports its operations in one reportable segment. Effective in the first quarter of fiscal 2021, the Partnership determined the former real estate operations segment no longer met the criteria to be an operating segment due to a change in focus and the relative immateriality of the activity. These condensed consolidated financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Partnership’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which contains a summary of the Partnership’s significant accounting policies and other disclosures. Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported total assets, total liabilities, unitholders’ equity, results of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates Certain amounts included in or affecting the Partnership’s financial statements and related 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 as of the date of the financial statements. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19, and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets, resulted in significant negative pricing pressure in the first half of 2020, followed by a recovery in pricing and an increase in demand in the second half of 2020 and into 2021. Many companies in the oil and natural gas industry, including Diamondback, changed their business plans in response to changing market conditions. Such circumstances generally increase the uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods it considers reasonable in each particular circumstance. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include, but are not limited to, (i) revenue accruals, (ii) the fair value of long-lived assets, (iii) asset retirement obligations and (iv) income taxes. Accrued Liabilities Accrued liabilities consist of the following as of the dates indicated: June 30, 2021 December 31, 2020 (In thousands) Direct operating expenses accrued $ 14,733 $ 18,160 Capital expenditures accrued 5,963 5,328 Interest expense accrued 12,891 12,969 Sourced water purchases accrued 4,722 3,597 Other 1,312 2,454 Total accrued liabilities $ 39,621 $ 42,508 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, 2020 $ (525) Other comprehensive income (loss) 535 Balance as of June 30, 2021 $ 10 Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance. This update is effective for public business entities beginning after December 15, 2020, with early adoption permitted. The Partnership adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Partnership considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERSThe 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. Surface revenue, rental and real estate income and amortization of out of market leases are outside the scope of ASC Topic 606, “Revenue from Contracts with Customers.” Disaggregation of Revenue In the following table, revenue from contracts with customers is disaggregated by type of service and fee: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Type of Service: Produced water gathering and disposal $ 68,605 $ 68,498 $ 134,933 $ 149,846 Sourced water gathering 16,105 4,888 32,682 35,655 Crude oil gathering 6,797 7,309 13,588 15,086 Natural gas gathering 5,924 4,500 11,324 9,430 Real estate contracts (non ASC 606 revenues) 3,585 3,529 7,194 7,241 Surface revenue (non ASC 606 revenues) 115 11 218 872 Total revenues $ 101,131 $ 88,735 $ 199,939 $ 218,130 |
DIVESTITURES
DIVESTITURES | 6 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
DIVESTITURES | DIVESTITURES On April 30, 2021, each of the Partnership and its joint venture partner, Amarillo Midstream, LLC, sold its 50% interest in Amarillo Rattler, LLC (“Amarillo Rattler”) to EnLink Midstream Operating, LP for aggregate total gross potential consideration of $75.0 million, consisting of $50.0 million at closing, $10.0 million upon the first anniversary of closing and up to $15.0 million in contingent earn-out payments over a three-year span based upon Diamondback's development activity. The earn-out payments are contingent on connected wells drilled in Diamondback’s leasehold acreage in the specified earn-out area during each year between 2023 and 2025. Net of transaction expenses and working capital adjustments, the Partnership received $23.5 million at closing, with an incremental $5.0 million due in April 2022, which resulted in a gain from sale of equity method investments of $23.0 million, which is included in gain (loss) on sale of equity method investments on the consolidated statement of operations. The Partnership’s share of the contingent earn-out payments, which cannot exceed $7.5 million in total over the three-year span, will be recorded if and when the contingent payments become realizable. On June 28, 2021, the Partnership closed on the sale of one of its real estate properties located in Midland, Texas for proceeds of $9.1 million, including closing adjustments. The sale resulted in a loss on disposal of $1.6 million, which is included in (gain) loss on disposal of assets on the consolidated statement of operations. |
REAL ESTATE ASSETS
REAL ESTATE ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Real Estate [Abstract] | |
REAL ESTATE ASSETS | REAL ESTATE 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 Estimated Useful Lives June 30, 2021 December 31, 2020 (Years) (In thousands) Buildings 20-30 $ 93,364 $ 102,918 Tenant improvements 15 4,506 4,506 Land N/A 947 2,437 Land improvements 15 484 484 Total real estate assets 99,301 110,345 Less: accumulated depreciation (14,256) (13,658) Total investment in real estate, net $ 85,045 $ 96,687 As of Weighted Average Useful Lives June 30, 2021 December 31, 2020 (Months) (In thousands) In-place lease intangibles 45 $ 11,502 $ 11,405 Less: accumulated amortization (9,289) (8,980) In-place lease intangibles, net 2,213 2,425 Above-market lease intangibles 45 3,623 3,623 Less: accumulated amortization (1,937) (1,786) Above-market lease intangibles, net 1,686 1,837 Total intangible lease assets, net $ 3,899 $ 4,262 Depreciation and amortization expense for real estate assets was $1.1 million and $1.7 million for the three months ended June 30, 2021 and 2020, respectively, and $2.3 million and $3.5 million for the six months ended June 30, 2021 and 2020, respectively. The following table presents the Partnership’s estimated amortization expense related to lease intangibles for the periods indicated (in thousands): Remainder of 2021 2022 2023 2024 2025 Thereafter $ 337 $ 628 $ 749 $ 860 $ 882 $ 443 See Note 4 — Divestitures for discussion of the Partnership’s significant real estate divestiture. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2021 | |
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: As of Estimated Useful Lives June 30, 2021 December 31, 2020 (Years) (In thousands) Produced water disposal systems 10-30 $ 657,786 $ 654,545 Crude oil gathering systems (1) 30 136,218 133,998 Natural gas gathering and compression systems (1) 10-30 111,830 112,072 Sourced water gathering systems (1) 30 112,340 112,162 Total property, plant and equipment 1,018,174 1,012,777 Less: accumulated depreciation, amortization and accretion (119,521) (100,728) Land N/A 85,826 85,826 Total property, plant and equipment, net $ 984,479 $ 997,875 (1) Included in gathering systems are $15.1 million and $27.5 million of assets at June 30, 2021 and December 31, 2020, 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 $13.8 million and $10.0 million for the three months ended June 30, 2021 and 2020, respectively, and $23.5 million and $20.5 million for the six months ended June 30, 2021 and 2020, respectively. Capitalized internal costs and capitalized interest related to property, plant and equipment were immaterial for the three and six months ended June 30, 2021 and 2020. The Partnership evaluates its long-lived assets for potential impairment whenever events or circumstances indicate it is more likely than not that the carrying amount of the asset, or set of assets, is greater than the fair value. An impairment involves comparing the estimated future undiscounted cash flows of an asset with the carrying amount. If the carrying amount of the asset exceeds the estimated future undiscounted cash flows, then an impairment charge is recorded for the difference between the estimated fair value of the asset and its carrying value. No such impairment charges were recorded during the three months ended June 30, 2021, or the three and six months ended June 30, 2020. It is possible that circumstances requiring additional impairment testing will occur in future interim periods, which could result in potentially material impairment charges being recorded. Abandonment charges of $3.4 million related to projects which had begun, but were later terminated, were recorded in depreciation, amortization and accretion on the consolidated statement of operations during the six months ended June 30, 2021. |
EQUITY METHOD INVESTMENTS
EQUITY METHOD INVESTMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY METHOD INVESTMENTS | EQUITY METHOD INVESTMENTS The following table presents the carrying values of the Partnership’s equity method investments as of the dates indicated: Ownership Interest June 30, 2021 December 31, 2020 (In thousands) EPIC Crude Holdings, LP 10 % $ 114,315 $ 120,863 Gray Oak Pipeline, LLC 10 % 124,891 130,353 Wink to Webster Pipeline LLC (1) 4 % 86,493 82,631 OMOG JV LLC 60 % 192,263 193,726 Amarillo Rattler, LLC (2) — % — 5,354 Total $ 517,962 $ 532,927 (1) The Wink to Webster joint venture is developing a crude oil pipeline (the “Wink to Webster pipeline”). The Wink to Webster pipeline’s main segment began interim service operation in the fourth quarter of 2020, and the joint venture is expected to begin full commercial operations in the fourth quarter of 2021. (2) The ownership interest in Amarillo Rattler was 50% at December 31, 2020. See Note 4 — Divestitures for discussion regarding the sale of this equity method investment during the second quarter of 2021. Currently, the Partnership receives distributions from Gray Oak and OMOG, which are classified within the operating or investing sections of the consolidated statements of cash flows by determining the nature of each distribution. The following table presents total distributions received from the Partnership’s equity method investments for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Gray Oak Pipeline, LLC $ 5,535 $ 4,090 $ 11,293 $ 9,051 OMOG JV LLC 3,520 4,019 6,869 8,819 Total $ 9,055 $ 8,109 $ 18,162 $ 17,870 The following table summarizes the income (loss) of equity method investees reflected in the condensed consolidated statement of operations for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) EPIC Crude Holdings, LP $ (2,672) $ (616) $ (8,108) $ (2,799) Gray Oak Pipeline, LLC 3,532 1,171 5,830 1,753 Wink to Webster Pipeline LLC (528) 12 (1,091) 200 OMOG JV LLC 4,291 (13,514) 5,406 (12,180) Amarillo Rattler, LLC (151) (87) (388) (253) Total $ 4,472 $ (13,034) $ 1,649 $ (13,279) The Partnership reviews its equity method investments to determine if a loss in value which is other than temporary has occurred. If such a loss has occurred, the Partnership recognizes an impairment provision. During the six months ended June 30, 2021, the Partnership’s loss from equity method investments includes a proportional charge of $2.9 million representing impairment recorded by the investee associated with abandoned projects. During the three and six months ended June 30, 2020, the Partnership’s loss from equity method investments includes a proportional charge of $15.8 million representing impairment recorded by the investee associated with its goodwill. No other impairments were recorded for the Partnership’s equity method investments for the three and six months ended June 30, 2021 or 2020. The entities in which the Partnership is invested all serve customers in the oil and natural gas industry, which experienced economic challenges due to the COVID-19 pandemic and other macroeconomic factors during 2020. If similar economic challenges occur in future interim |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following as of the dates indicated: June 30, 2021 December 31, 2020 (In thousands) 5.625% Senior Notes due 2025 $ 500,000 $ 500,000 Operating Company revolving credit facility 5,000 79,000 Unamortized debt issuance costs (8,047) (9,053) Total long-term debt $ 496,953 $ 569,947 The Operating Company’s Revolving Credit Facility The Operating Company’s credit agreement (the “Credit Agreement”) provides for a revolving credit facility in the maximum amount of $600.0 million, which is expandable to $1.0 billion upon the Partnership’s election, subject to obtaining additional lender commitments and satisfaction of customary conditions. 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. As of June 30, 2021, the Operating Company had $5.0 million of outstanding borrowings and $595.0 million available for future borrowings under the Credit Agreement. During the three and six months ended June 30, 2021, the weighted average interest rate on borrowings under the Credit Agreement was 1.36% and 1.39%, respectively. During the three and six months ended June 30, 2020, the weighted average interest rate on borrowings under the Credit Agreement was 2.43% and 2.64%, respectively. As of June 30, 2021, the Operating Company was in compliance with all financial maintenance covenants under the Credit Agreement. 2025 Senior Notes On July 14, 2020, the Partnership completed a notes offering (the “Notes Offering”) of $500.0 million in aggregate principal amount of its 5.625% Senior Notes due 2025 (the “Notes”). Interest on the Notes is payable on January 15 and July 15 of each year, beginning on January 15, 2021. The Notes mature on July 15, 2025. The Partnership received net proceeds of approximately $489.5 million from the Notes Offering. The Partnership loaned the gross proceeds of $500.0 million to the Operating Company, which used such proceeds to pay down borrowings under the Credit Agreement. |
UNIT-BASED COMPENSATION
UNIT-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021, a total of 14,568,824 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. 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 based on the closing price of the Partnership’s common units on the grant date of the award, and expenses this value 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 six months ended June 30, 2021: Phantom Weighted Average Unvested at December 31, 2020 2,089,668 $ 17.07 Granted 210,631 $ 11.01 Vested (436,188) $ 19.14 Forfeited (24,065) $ 6.49 Unvested at June 30, 2021 1,840,046 $ 16.02 The aggregate fair value of phantom units that vested during the six months ended June 30, 2021 was $8.3 million. As of June 30, 2021, the unrecognized compensation cost related to unvested phantom units was $27.7 million, and is expected to be recognized over a weighted-average period of 2.77 years. For the three and six months ended June 30, 2021, the Partnership incurred $2.5 million and $4.8 million, respectively, of unit–based compensation expense. For the three and six months ended June 30, 2020, the Partnership incurred $2.1 million and $4.3 million, respectively, of unit–based compensation expense. |
UNITHOLDERS_ EQUITY AND DISTRIB
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS | UNITHOLDERS’ EQUITY AND DISTRIBUTIONS The Partnership has general partner and limited partner units. At June 30, 2021, the Partnership had a total of 41,075,836 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, representing approximately 72% of the Partnership’s total units outstanding, were beneficially owned by Diamondback. At June 30, 2021, Diamondback also beneficially owned 107,815,152 Operating Company units, representing an overall 72% economic, non-voting interest in the Operating Company. The Operating Company units and the Partnership’s Class B units beneficially owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit). Common Unit Repurchase Program On October 29, 2020, the board of directors of the General Partner approved a common unit repurchase program to acquire up to $100 million of the Partnership’s outstanding common units. The common unit repurchase program is authorized to extend through December 31, 2021 and the Partnership intends to purchase common units under the repurchase program opportunistically with cash on hand and free cash flow from operations. The repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors of the General Partner at any time. During the three and six months ended June 30, 2021, the Partnership repurchased approximately $5.2 million and $16.3 million, respectively, of common units under the repurchase program. As of June 30, 2021, $68.9 million remained available for use to repurchase common units under the Partnership’s common unit repurchase program. Changes in Ownership of Consolidated Subsidiaries Non-controlling interest in the accompanying condensed consolidated financial statements represents Diamondback’s ownership in the net assets of the Operating Company. Diamondback’s relative ownership interest in the Operating Company can change due to the Partnership’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on the Partnership’s units. These changes in ownership percentage and the disproportionate allocation of net income to Diamondba ck discussed below result in adjustments to non-controlling interest and common unitholder equity, tax effected. The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Net income (loss) attributable to the Partnership $ 12,445 $ 2,822 $ 18,460 $ 15,853 Change in ownership of consolidated subsidiaries 1,941 (329,034) 2,653 (329,034) Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest $ 14,386 $ (326,212) $ 21,113 $ (313,181) In the second quarter of 2020, the Partnership recorded adjustments to non-controlling interest of $419.6 million, common unitholder equity of $(329.0) million, and deferred tax assets of $90.6 million to reflect the ownership structure that was effective at June 30, 2020. The adjustment had no impact on earnings for the three months ended June 30, 2020. Cash Distributions on Common Units The board of directors of the General Partner sets and administers the cash distribution policies for the Partnership and the Operating Company. Cash distributions paid by the Operating Company to Diamondback and the Partnership as the holders of the Operating Company’s common units are determined by the board of directors of the General Partner on a quarterly basis. The partnership agreement does not require the Partnership to pay minimum distributions to its common unitholders on a quarterly or other basis, and the Partnership does not employ structures intended to consistently maintain or increase distributions ove r time. On August 2, 2021, the board of directors of the General Partner approved a cash distribution for the second quarter of 2021 of $0.25 per O perating Company unit and per common unit. Distributions due to common unitholders are payable on August 23, 2021 , to common unitholders of record at the close of business on August 16, 2021 . The board of directors of the General Partner may change the distribution policies at any time and from time to time. The following table presents information regarding cash distributions approved by the board of directors of the General Partner and paid during the three and six months ended June 30, 2021: Distributions (in thousands) Period Amount per Unit Operating Company Distributions to Diamondback Common Unitholders Declaration Date Unitholder Record Date Payment Date Q4 2020 $ 0.20 $ 21,563 $ 8,263 February 17, 2021 March 8, 2021 March 15, 2021 Q1 2021 $ 0.20 $ 21,563 $ 8,183 April 28, 2021 May 14, 2021 May 21, 2021 |
EARNINGS PER COMMON UNIT
EARNINGS PER COMMON UNIT | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON UNIT | EARNINGS PER COMMON UNIT Earnings per common unit on the condensed consolidated statements of operations is based on the net income of the Partnership for the three and six months ended June 30, 2021 and 2020, which 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 earnings 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. A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per unit amounts) Net income (loss) attributable to Rattler Midstream LP $ 12,445 $ 2,822 $ 18,460 $ 15,853 Less: net (income) loss allocated to participating securities (1) (456) (644) (874) (1,296) Net income (loss) attributable to common unitholders $ 11,989 $ 2,178 $ 17,586 $ 14,557 Weighted average common units outstanding: Basic weighted average common units outstanding 41,033 43,812 41,386 43,756 Effect of dilutive securities: Potential common units issuable (2) — — — — Diluted weighted average common units outstanding 41,033 43,812 41,386 43,756 Net income per common unit, basic $ 0.30 $ 0.05 $ 0.42 $ 0.33 Net income per common unit, diluted $ 0.30 $ 0.05 $ 0.42 $ 0.33 (1) Distribution equivalent rights granted to employees are considered participating securities. (2) For the three and six months ended June 30, 2021 and 2020, no potential common units were included in the computation of diluted earnings per unit because their inclusion would have been anti-dilutive under the treasury stock method for the periods presented. However, such potential common units could dilute basic earnings per unit in future periods. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Related party transactions include transactions with Diamondback. The Partnership has entered into certain agreements that govern these transactions, the most significant of which are commercial agreements for the provision of midstream services to Diamondback. The Partnership derives substantially all of its revenue from these commercial agreements, which consist of the following amounts for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Produced water gathering and disposal $ 67,387 $ 66,185 $ 131,693 $ 145,286 Sourced water gathering 16,029 4,894 31,272 34,897 Natural gas gathering 5,925 4,500 11,325 9,430 Crude oil gathering 2,157 2,452 4,187 4,985 Surface revenue 81 — 180 16 Total $ 91,579 $ 78,031 $ 178,657 $ 194,614 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except for tax rate) Provision for (benefit from) income taxes $ 3,539 $ 1,083 $ 5,210 $ 4,903 Effective tax rate 6.1 % 8.0 % 6.1 % 6.8 % The Partnership’s effective income tax rates for the three and six months ended June 30, 2021 and 2020 differed from amounts computed by applying the United States federal statutory tax rate to pre-tax income for the period, primarily due to net income attributable to the non-controlling interest and to state taxes, net of federal benefit. For the three and six months ended June 30, 2021 and 2020, the Partnership recorded discrete income tax expense related to unit-based compensation of $0.2 million and $0.3 million, respectively. The Partnership’s total net deferred tax assets consist primarily of the tax basis over the financial statement carrying value of its investment in the Operating Company and of net operating loss carryforwards. In the second quarter of 2020, the Partnership recorded an adjustment through unitholders’ equity to the carrying value of its investment in the Operating Company, resulting in a decrease in the Partnership’s deferred tax liability related to its investment in the Operating Company. As a result of management’s assessment each period, including consideration of all available positive and negative evidence, management continued to determine that it is more likely than not that the Partnership will realize its deferred tax assets as of June 30, 2021 and 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value. The Partnership’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. The Partnership uses appropriate valuation techniques based on available inputs to measure the fair values of its assets and liabilities. Level 1 - Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date. Level 2 - Observable market-based inputs or unobservable inputs that are corroborated by market data. These are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 - Unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management’s best estimate of fair value. Financial assets and liabilities are classified based on the lowest level of input that is significant to the fair value measurement. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value (1) Fair Value Carrying Value (1) Fair Value (In thousands) Debt: 5.625% Senior Notes due 2025 $ 491,953 $ 525,100 $ 490,947 $ 528,125 Operating Company revolving credit facility $ 5,000 $ 5,000 $ 79,000 $ 79,000 (1) The carrying value includes associated deferred loan costs and any remaining discount or premium, if any. 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. The fair value of the Notes was determined using the June 30, 2021 quoted market price, a Level 1 classification in the fair value hierarchy. Fair Value of Financial Assets The Partnership has other financial instruments consisting of cash, accounts receivable, other current assets, accounts payable, accrued liabilities and various other current liabilities. The carrying value of these instruments approximates fair value because of the short-term nature of the instruments. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Partnership may be a party to various routine legal proceedings, disputes and claims from time to time arising in the ordinary course of its business, including those that arise from interpretation of federal and state laws and regulations 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, if decided adversely, will have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. Commitments |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Cash Distribution On August 2, 2021, the board of directors of the General Partner approved a cash distribution for the second quarter of 2021 of $0.25 per common unit, payable on August 23, 2021, to unitholders of record at the close of business on August 16, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization The Partnership is a publicly traded Delaware limited partnership focused on owning, operating, developing and acquiring midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin. As of June 30, 2021, the General Partner held a 100% general partner interest in the Partnership and Diamondback beneficially owned all of the Partnership’s 107,815,152 outstanding Class B units, representing approximately 72% of the Partnership’s total units outstanding. Diamondback owns and controls the General Partner. As of June 30, 2021, the Partnership owned a 28% controlling membership interest in the Operating Company and Diamondback owned, through its ownership of the Operating Company units, a 72% economic, non-voting interest in the Operating Company. 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 attributable to Diamondback. In addition to the Operating Company, other consolidated subsidiaries of the Partnership include Tall City Towers LLC (“Tall Towers”), Rattler Ajax Processing LLC and Rattler OMOG LLC. The Partnership also owns indirect interests in OMOG JV LLC (“OMOG”), EPIC Crude Holdings, LP (“EPIC”), EPIC Crude Holdings GP, LLC, Wink to Webster Pipeline LLC (“Wink to Webster”) and Gray Oak Pipeline, LLC (“Gray Oak”), which are accounted for as equity method investments as discussed further in Note 7— Equity Method Investments. Basis of Presentation The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All significant intercompany balances and transactions have been eliminated upon consolidation. The Partnership reports its operations in one reportable segment. Effective in the first quarter of fiscal 2021, the Partnership determined the former real estate operations segment no longer met the criteria to be an operating segment due to a change in focus and the relative immateriality of the activity. These condensed consolidated financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This Quarterly Report on Form 10–Q should be read in conjunction with the Partnership’s most recent Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which contains a summary of the Partnership’s significant accounting policies and other disclosures. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported total assets, total liabilities, unitholders’ equity, results of operations or cash flows. |
Use of Estimates | Use of Estimates Certain amounts included in or affecting the Partnership’s financial statements and related 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 as of the date of the financial statements. Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, in 2020, the effects of COVID-19, and actions by OPEC members and other exporting nations on the supply and demand in global oil and natural gas markets, resulted in significant negative pricing pressure in the first half of 2020, followed by a recovery in pricing and an increase in demand in the second half of 2020 and into 2021. Many companies in the oil and natural gas industry, including Diamondback, changed their business plans in response to changing market conditions. Such circumstances generally increase the uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts. The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods it considers reasonable in each particular circumstance. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include, but are not limited to, (i) revenue accruals, (ii) the fair value of long-lived assets, (iii) asset retirement obligations and (iv) income taxes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” This update is intended to simplify the accounting for income taxes by removing certain exceptions and by clarifying and amending existing guidance. This update is effective for public business entities beginning after December 15, 2020, with early adoption permitted. The Partnership adopted this update effective January 1, 2021. The adoption of this update did not have a material impact on its financial position, results of operations or liquidity. The Partnership considers the applicability and impact of all ASUs. ASUs not discussed above were assessed and determined to be either not applicable or clarifications of ASUs previously disclosed. |
Revenue From Contract 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.Surface revenue, rental and real estate income and amortization of out of market leases are outside the scope of ASC Topic 606, “Revenue from Contracts with Customers.” |
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) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following as of the dates indicated: June 30, 2021 December 31, 2020 (In thousands) Direct operating expenses accrued $ 14,733 $ 18,160 Capital expenditures accrued 5,963 5,328 Interest expense accrued 12,891 12,969 Sourced water purchases accrued 4,722 3,597 Other 1,312 2,454 Total accrued liabilities $ 39,621 $ 42,508 |
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, 2020 $ (525) Other comprehensive income (loss) 535 Balance as of June 30, 2021 $ 10 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Disaggregation of Revenue From Contracts With Customers | In the following table, revenue from contracts with customers is disaggregated by type of service and fee: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Type of Service: Produced water gathering and disposal $ 68,605 $ 68,498 $ 134,933 $ 149,846 Sourced water gathering 16,105 4,888 32,682 35,655 Crude oil gathering 6,797 7,309 13,588 15,086 Natural gas gathering 5,924 4,500 11,324 9,430 Real estate contracts (non ASC 606 revenues) 3,585 3,529 7,194 7,241 Surface revenue (non ASC 606 revenues) 115 11 218 872 Total revenues $ 101,131 $ 88,735 $ 199,939 $ 218,130 |
REAL ESTATE ASSETS (Tables)
REAL ESTATE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Estimated Useful Lives June 30, 2021 December 31, 2020 (Years) (In thousands) Buildings 20-30 $ 93,364 $ 102,918 Tenant improvements 15 4,506 4,506 Land N/A 947 2,437 Land improvements 15 484 484 Total real estate assets 99,301 110,345 Less: accumulated depreciation (14,256) (13,658) Total investment in real estate, net $ 85,045 $ 96,687 As of Weighted Average Useful Lives June 30, 2021 December 31, 2020 (Months) (In thousands) In-place lease intangibles 45 $ 11,502 $ 11,405 Less: accumulated amortization (9,289) (8,980) In-place lease intangibles, net 2,213 2,425 Above-market lease intangibles 45 3,623 3,623 Less: accumulated amortization (1,937) (1,786) Above-market lease intangibles, net 1,686 1,837 Total intangible lease assets, net $ 3,899 $ 4,262 |
Schedule of Amortization Expense | The following table presents the Partnership’s estimated amortization expense related to lease intangibles for the periods indicated (in thousands): Remainder of 2021 2022 2023 2024 2025 Thereafter $ 337 $ 628 $ 749 $ 860 $ 882 $ 443 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The following table sets forth the Partnership’s property, plant and equipment: As of Estimated Useful Lives June 30, 2021 December 31, 2020 (Years) (In thousands) Produced water disposal systems 10-30 $ 657,786 $ 654,545 Crude oil gathering systems (1) 30 136,218 133,998 Natural gas gathering and compression systems (1) 10-30 111,830 112,072 Sourced water gathering systems (1) 30 112,340 112,162 Total property, plant and equipment 1,018,174 1,012,777 Less: accumulated depreciation, amortization and accretion (119,521) (100,728) Land N/A 85,826 85,826 Total property, plant and equipment, net $ 984,479 $ 997,875 (1) Included in gathering systems are $15.1 million and $27.5 million of assets at June 30, 2021 and December 31, 2020, respectively, that are not subject to depreciation, amortization and accretion as the systems were under construction and had not yet been put into service. |
EQUITY METHOD INVESTMENTS (Tabl
EQUITY METHOD INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | The following table presents the carrying values of the Partnership’s equity method investments as of the dates indicated: Ownership Interest June 30, 2021 December 31, 2020 (In thousands) EPIC Crude Holdings, LP 10 % $ 114,315 $ 120,863 Gray Oak Pipeline, LLC 10 % 124,891 130,353 Wink to Webster Pipeline LLC (1) 4 % 86,493 82,631 OMOG JV LLC 60 % 192,263 193,726 Amarillo Rattler, LLC (2) — % — 5,354 Total $ 517,962 $ 532,927 (1) The Wink to Webster joint venture is developing a crude oil pipeline (the “Wink to Webster pipeline”). The Wink to Webster pipeline’s main segment began interim service operation in the fourth quarter of 2020, and the joint venture is expected to begin full commercial operations in the fourth quarter of 2021. (2) The ownership interest in Amarillo Rattler was 50% at December 31, 2020. See Note 4 — Divestitures for discussion regarding the sale of this equity method investment during the second quarter of 2021. Currently, the Partnership receives distributions from Gray Oak and OMOG, which are classified within the operating or investing sections of the consolidated statements of cash flows by determining the nature of each distribution. The following table presents total distributions received from the Partnership’s equity method investments for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Gray Oak Pipeline, LLC $ 5,535 $ 4,090 $ 11,293 $ 9,051 OMOG JV LLC 3,520 4,019 6,869 8,819 Total $ 9,055 $ 8,109 $ 18,162 $ 17,870 The following table summarizes the income (loss) of equity method investees reflected in the condensed consolidated statement of operations for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) EPIC Crude Holdings, LP $ (2,672) $ (616) $ (8,108) $ (2,799) Gray Oak Pipeline, LLC 3,532 1,171 5,830 1,753 Wink to Webster Pipeline LLC (528) 12 (1,091) 200 OMOG JV LLC 4,291 (13,514) 5,406 (12,180) Amarillo Rattler, LLC (151) (87) (388) (253) Total $ 4,472 $ (13,034) $ 1,649 $ (13,279) |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following as of the dates indicated: June 30, 2021 December 31, 2020 (In thousands) 5.625% Senior Notes due 2025 $ 500,000 $ 500,000 Operating Company revolving credit facility 5,000 79,000 Unamortized debt issuance costs (8,047) (9,053) Total long-term debt $ 496,953 $ 569,947 |
UNIT-BASED COMPENSATION (Tables
UNIT-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Non vested Share Activity | The following table presents the phantom unit activity under the LTIP for the six months ended June 30, 2021: Phantom Weighted Average Unvested at December 31, 2020 2,089,668 $ 17.07 Granted 210,631 $ 11.01 Vested (436,188) $ 19.14 Forfeited (24,065) $ 6.49 Unvested at June 30, 2021 1,840,046 $ 16.02 |
UNITHOLDERS_ EQUITY AND DISTR_2
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Change in Ownership Interest | The following table summarizes changes in the ownership interest in consolidated subsidiaries during the period: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Net income (loss) attributable to the Partnership $ 12,445 $ 2,822 $ 18,460 $ 15,853 Change in ownership of consolidated subsidiaries 1,941 (329,034) 2,653 (329,034) Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest $ 14,386 $ (326,212) $ 21,113 $ (313,181) |
Schedule of Cash Distributions | The following table presents information regarding cash distributions approved by the board of directors of the General Partner and paid during the three and six months ended June 30, 2021: Distributions (in thousands) Period Amount per Unit Operating Company Distributions to Diamondback Common Unitholders Declaration Date Unitholder Record Date Payment Date Q4 2020 $ 0.20 $ 21,563 $ 8,263 February 17, 2021 March 8, 2021 March 15, 2021 Q1 2021 $ 0.20 $ 21,563 $ 8,183 April 28, 2021 May 14, 2021 May 21, 2021 |
EARNINGS PER COMMON UNIT (Table
EARNINGS PER COMMON UNIT (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income per Common Unit | A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except per unit amounts) Net income (loss) attributable to Rattler Midstream LP $ 12,445 $ 2,822 $ 18,460 $ 15,853 Less: net (income) loss allocated to participating securities (1) (456) (644) (874) (1,296) Net income (loss) attributable to common unitholders $ 11,989 $ 2,178 $ 17,586 $ 14,557 Weighted average common units outstanding: Basic weighted average common units outstanding 41,033 43,812 41,386 43,756 Effect of dilutive securities: Potential common units issuable (2) — — — — Diluted weighted average common units outstanding 41,033 43,812 41,386 43,756 Net income per common unit, basic $ 0.30 $ 0.05 $ 0.42 $ 0.33 Net income per common unit, diluted $ 0.30 $ 0.05 $ 0.42 $ 0.33 (1) Distribution equivalent rights granted to employees are considered participating securities. (2) For the three and six months ended June 30, 2021 and 2020, no potential common units were included in the computation of diluted earnings per unit because their inclusion would have been anti-dilutive under the treasury stock method for the periods presented. However, such potential common units could dilute basic earnings per unit in future periods. |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Partnership derives substantially all of its revenue from these commercial agreements, which consist of the following amounts for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands) Produced water gathering and disposal $ 67,387 $ 66,185 $ 131,693 $ 145,286 Sourced water gathering 16,029 4,894 31,272 34,897 Natural gas gathering 5,925 4,500 11,325 9,430 Crude oil gathering 2,157 2,452 4,187 4,985 Surface revenue 81 — 180 16 Total $ 91,579 $ 78,031 $ 178,657 $ 194,614 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands, except for tax rate) Provision for (benefit from) income taxes $ 3,539 $ 1,083 $ 5,210 $ 4,903 Effective tax rate 6.1 % 8.0 % 6.1 % 6.8 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurement Information for Financial Instruments Measured on a Nonrecurring Basis | The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets: June 30, 2021 December 31, 2020 Carrying Value (1) Fair Value Carrying Value (1) Fair Value (In thousands) Debt: 5.625% Senior Notes due 2025 $ 491,953 $ 525,100 $ 490,947 $ 528,125 Operating Company revolving credit facility $ 5,000 $ 5,000 $ 79,000 $ 79,000 (1) The carrying value includes associated deferred loan costs and any remaining discount or premium, if any. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Details) | 6 Months Ended | ||
Jun. 30, 2021segmentshares | Jul. 30, 2021shares | Dec. 31, 2020shares | |
Limited Partners' Capital Account [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Class B Units | |||
Limited Partners' Capital Account [Line Items] | |||
Units outstanding (in shares) | 107,815,152 | 107,815,152 | 107,815,152 |
Class B Units | Diamondback Energy, Inc. | |||
Limited Partners' Capital Account [Line Items] | |||
Units outstanding (in shares) | 107,815,152 | ||
Rattler MIdstream LP | |||
Limited Partners' Capital Account [Line Items] | |||
General partners, ownership interest | 100.00% | ||
Rattler Midstream Partners LLC | |||
Limited Partners' Capital Account [Line Items] | |||
General partners, ownership interest | 28.00% | ||
Rattler Midstream Partners LLC | Diamondback Energy, Inc. | |||
Limited Partners' Capital Account [Line Items] | |||
Limited partners, ownership interest | 72.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Direct operating expenses accrued | $ 14,733 | $ 18,160 |
Capital expenditures accrued | 5,963 | 5,328 |
Interest expense accrued | 12,891 | 12,969 |
Sourced water purchases accrued | 4,722 | 3,597 |
Other | 1,312 | 2,454 |
Total accrued liabilities | $ 39,621 | $ 42,508 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI | |||||
Beginning balance | $ 1,167,117 | $ 1,127,758 | $ 1,115,840 | $ 1,180,100 | $ 1,115,840 |
Other comprehensive income (loss) | 143 | (240) | (258) | 535 | (498) |
Ending balance | 1,186,554 | $ 1,186,724 | $ 1,127,758 | 1,186,554 | $ 1,186,724 |
AOCI | |||||
AOCI | |||||
Beginning balance | (525) | ||||
Ending balance | $ 10 | $ 10 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Real estate contracts (non ASC 606 revenues) | $ 3,585 | $ 3,529 | $ 7,194 | $ 7,241 |
Surface revenue (non ASC 606 revenues) | 115 | 11 | 218 | 872 |
Total revenues | 101,131 | 88,735 | 199,939 | 218,130 |
Produced water gathering and disposal | ||||
Disaggregation of Revenue [Line Items] | ||||
ASC 606 revenues | 68,605 | 68,498 | 134,933 | 149,846 |
Sourced water gathering | ||||
Disaggregation of Revenue [Line Items] | ||||
ASC 606 revenues | 16,105 | 4,888 | 32,682 | 35,655 |
Crude oil gathering | ||||
Disaggregation of Revenue [Line Items] | ||||
ASC 606 revenues | 6,797 | 7,309 | 13,588 | 15,086 |
Natural gas gathering | ||||
Disaggregation of Revenue [Line Items] | ||||
ASC 606 revenues | $ 5,924 | $ 4,500 | $ 11,324 | $ 9,430 |
DIVESTITURES (Details)
DIVESTITURES (Details) $ in Thousands | Apr. 30, 2023USD ($) | Jun. 28, 2021USD ($)property | Apr. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 30, 2022USD ($) | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Gain on sale of equity method investments | $ 22,989 | $ 0 | $ 22,989 | $ 0 | |||||
(Gain) loss on disposal of assets | $ 5,005 | $ 1,243 | $ 5,011 | $ 2,781 | |||||
Midland, Texas | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Number of properties sold | property | 1 | ||||||||
Proceeds from divestiture | $ 9,100 | ||||||||
(Gain) loss on disposal of assets | $ 1,600 | ||||||||
Amarillo Rattler, LLC | Disposed of by Sale | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Ownership Interest | 50.00% | 50.00% | |||||||
Amarillo Rattler, LLC | Disposed of by Sale | Rattler LLC and Amarillo Midstream | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Potential consideration | $ 75,000 | ||||||||
Consideration at closing | 50,000 | ||||||||
Consideration upon first anniversary of closing | 10,000 | ||||||||
Consideration over three years | $ 15,000 | ||||||||
Consideration period | 3 years | ||||||||
Amarillo Rattler, LLC | Disposed of by Sale | Rattler LLC | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Consideration at closing | $ 23,500 | ||||||||
Amarillo Rattler, LLC | Disposed of by Sale | Rattler LLC | Forecast | |||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Potential consideration | $ 7,500 | $ 5,000 | |||||||
Consideration period | 3 years |
REAL ESTATE ASSETS (Details)
REAL ESTATE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Real Estate [Line Items] | |||||
Buildings | $ 93,364 | $ 93,364 | $ 102,918 | ||
Tenant improvements | 4,506 | 4,506 | 4,506 | ||
Land | 947 | 947 | 2,437 | ||
Land improvements | 484 | 484 | 484 | ||
Total real estate assets | 99,301 | 99,301 | 110,345 | ||
Less: accumulated depreciation | (14,256) | (14,256) | (13,658) | ||
Total investment in real estate, net | 85,045 | 85,045 | 96,687 | ||
Finite-lived intangibles assets, net | 3,899 | 3,899 | 4,262 | ||
Depreciation and amortization expense for real estate assets | 1,100 | $ 1,700 | $ 2,300 | $ 3,500 | |
In-place lease intangibles | |||||
Real Estate [Line Items] | |||||
Intangible assets, weighted average useful lives (in years) | 45 months | ||||
Finite-lived intangible assets, gross | 11,502 | $ 11,502 | 11,405 | ||
Less: accumulated amortization | (9,289) | (9,289) | (8,980) | ||
Finite-lived intangibles assets, net | 2,213 | $ 2,213 | 2,425 | ||
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 | $ 3,623 | 3,623 | ||
Less: accumulated amortization | (1,937) | (1,937) | (1,786) | ||
Finite-lived intangibles assets, net | $ 1,686 | $ 1,686 | $ 1,837 | ||
Buildings | Minimum | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 20 years | ||||
Buildings | Maximum | |||||
Real Estate [Line Items] | |||||
Property and equipment estimated useful lives (in years) | 30 years | ||||
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 |
REAL ESTATE ASSETS - Estimated
REAL ESTATE ASSETS - Estimated Amortization Expense (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Real Estate [Abstract] | |
Remainder of 2021 | $ 337 |
2022 | 628 |
2023 | 749 |
2024 | 860 |
2025 | 882 |
Thereafter | $ 443 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 1,018,174 | $ 1,012,777 |
Less: accumulated depreciation, amortization and accretion | (119,521) | (100,728) |
Land | 85,826 | 85,826 |
Total property, plant and equipment, net | 984,479 | 997,875 |
Property, plant and equipment, assets | 15,100 | 27,500 |
Produced water disposal systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 657,786 | 654,545 |
Crude oil gathering systems | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful lives (in years) | 30 years | |
Property, plant and equipment | $ 136,218 | 133,998 |
Natural gas gathering and compression systems | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 111,830 | 112,072 |
Sourced water gathering | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful lives (in years) | 30 years | |
Property, plant and equipment | $ 112,340 | $ 112,162 |
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 | 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 |
PROPERTY, PLANT AND EQUIPMENT -
PROPERTY, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 13,800,000 | $ 10,000,000 | $ 23,500,000 | $ 20,500,000 |
Impairment and abandonments | $ 0 | $ 0 | 3,371,000 | $ 0 |
Abandonment charges | $ 3,400,000 |
EQUITY METHOD INVESTMENTS (Deta
EQUITY METHOD INVESTMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Apr. 30, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investments | $ 517,962,000 | $ 517,962,000 | $ 532,927,000 | |||
Distributions from equity method investments | 9,055,000 | $ 8,109,000 | 18,162,000 | $ 17,870,000 | ||
Income (expense) from equity method investment | 4,472,000 | (13,034,000) | 1,649,000 | (13,279,000) | ||
Impairment on equity method investments | 15,800,000 | 2,900,000 | 15,800,000 | |||
Goodwill impairment charge | $ 0 | 0 | $ 0 | 0 | ||
Disposed of by Sale | Amarillo Rattler, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 50.00% | 50.00% | ||||
EPIC Crude Holdings, LP | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 10.00% | 10.00% | ||||
Equity method investments | $ 114,315,000 | $ 114,315,000 | $ 120,863,000 | |||
Income (expense) from equity method investment | $ (2,672,000) | (616,000) | $ (8,108,000) | (2,799,000) | ||
Gray Oak Pipeline, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 10.00% | 10.00% | ||||
Equity method investments | $ 124,891,000 | $ 124,891,000 | 130,353,000 | |||
Distributions from equity method investments | 5,535,000 | 4,090,000 | 11,293,000 | 9,051,000 | ||
Income (expense) from equity method investment | $ 3,532,000 | 1,171,000 | $ 5,830,000 | 1,753,000 | ||
Wink to Webster Pipeline LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 4.00% | 4.00% | ||||
Equity method investments | $ 86,493,000 | $ 86,493,000 | 82,631,000 | |||
Income (expense) from equity method investment | $ (528,000) | 12,000 | $ (1,091,000) | 200,000 | ||
OMOG JV LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 60.00% | 60.00% | ||||
Equity method investments | $ 192,263,000 | $ 192,263,000 | 193,726,000 | |||
Distributions from equity method investments | 3,520,000 | 4,019,000 | 6,869,000 | 8,819,000 | ||
Income (expense) from equity method investment | $ 4,291,000 | (13,514,000) | $ 5,406,000 | (12,180,000) | ||
Amarillo Rattler, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership Interest | 0.00% | 0.00% | ||||
Equity method investments | $ 0 | $ 0 | $ 5,354,000 | |||
Income (expense) from equity method investment | $ (151,000) | $ (87,000) | $ (388,000) | $ (253,000) |
DEBT (Details)
DEBT (Details) - USD ($) | Jul. 14, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 |
Line of Credit Facility [Line Items] | ||||||
Unamortized debt issuance costs | $ (8,047,000) | $ (8,047,000) | $ (9,053,000) | |||
Total long-term debt | 496,953,000 | 496,953,000 | 569,947,000 | |||
5.625% Senior Notes due 2025 | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, gross | $ 500,000,000 | $ 500,000,000 | 500,000,000 | |||
Interest rate | 5.625% | 5.625% | ||||
Principal amount | $ 500,000,000 | |||||
Proceeds from issuance of debt | $ 489,500,000 | |||||
Rattler Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Long-term debt, gross | $ 5,000,000 | $ 5,000,000 | $ 79,000,000 | |||
Revolving credit facility maximum borrowing capacity | 600,000,000 | 600,000,000 | ||||
Revolving credit facility maximum borrowing capacity, subject to commitments | 1,000,000,000 | 1,000,000,000 | ||||
Available borrowings capacity | $ 595,000,000 | $ 595,000,000 | ||||
Weighted average interest rate | 1.36% | 2.43% | 1.39% | 2.64% |
UNIT-BASED COMPENSATION - Addit
UNIT-BASED COMPENSATION - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of common units reserved for issuance (in shares) | 14,568,824 | 14,568,824 | ||
Unit-based compensation expenses | $ 2.5 | $ 2.1 | $ 4.8 | $ 4.3 |
Phantom Share Units (PSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value | 8.3 | |||
Unrecognized compensation cost related to unvested phantom units | $ 27.7 | $ 27.7 | ||
Unrecognized compensation cost related to unvested phantom units, period for recognition | 2 years 9 months 7 days |
UNIT-BASED COMPENSATION - Phant
UNIT-BASED COMPENSATION - Phantom Units (Details) - Phantom Share Units (PSUs) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Phantom Units | ||
Unvested beginning balance (in shares) | 2,089,668 | |
Granted (in shares) | 210,631 | |
Vested (in shares) | (436,188) | |
Forfeited (in shares) | (24,065) | |
Unvested ending balance (in shares) | 1,840,046 | |
Weighted Average Grant-Date Fair Value | ||
Unvested beginning balance (in USD Per share) | $ 16.02 | $ 17.07 |
Granted (in USD Per share) | 11.01 | |
Vested (in USD Per share) | 19.14 | |
Forfeited (in USD Per share) | 6.49 | |
Unvested ending balance (in USD Per share) | $ 16.02 | $ 17.07 |
UNITHOLDERS_ EQUITY AND DISTR_3
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Aug. 02, 2021 | Jul. 30, 2021 | Feb. 17, 2021 | Dec. 31, 2020 | Oct. 29, 2020 | |
Limited Partners' Capital Account [Line Items] | ||||||||||
Amount of shares repurchased | $ 5,198,000 | $ 11,114,000 | ||||||||
Change in ownership of consolidated subsidiaries | (535,000) | (196,000) | $ 90,613,000 | |||||||
Limited Partners | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Change in ownership of consolidated subsidiaries | 1,941,000 | (329,034,000) | $ 2,653,000 | $ (329,034,000) | ||||||
Common Units | Limited Partners | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Amount of shares repurchased | 5,198,000 | 11,114,000 | ||||||||
Change in ownership of consolidated subsidiaries | 1,941,000 | 712,000 | (329,034,000) | |||||||
Non-Controlling Interest | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Change in ownership of consolidated subsidiaries | $ (2,476,000) | $ (908,000) | $ 419,647,000 | |||||||
Diamondback Energy, Inc. | Rattler Midstream Partners LLC | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Percent of limited partnership interest | 72.00% | |||||||||
Member ownership percentage | 72.00% | 72.00% | ||||||||
Rattler Midstream Partners LLC | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Conversion of stock, shares converted | 1 | |||||||||
Common Units | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Limited partners' capital account, units issued (in shares) | 41,075,836 | 41,075,836 | 42,356,637 | |||||||
Units outstanding (in shares) | 41,075,836 | 41,075,836 | 42,356,637 | |||||||
Conversion of stock, shares issued | 1 | |||||||||
Stock repurchase program, authorized amount | $ 100,000,000 | |||||||||
Amount of shares repurchased | $ 5,200,000 | $ 16,300,000 | ||||||||
Remaining authorized repurchase amount | $ 68,900,000 | $ 68,900,000 | ||||||||
Partners' capital, cash distribution (in USD per share) | $ 0.20 | |||||||||
Common Units | Subsequent Event | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Partners' capital, cash distribution (in USD per share) | $ 0.25 | $ 0.20 | ||||||||
Common Units | Diamondback Energy, Inc. | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Units outstanding (in shares) | 0 | 0 | ||||||||
Class B Units | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Limited partners' capital account, units issued (in shares) | 107,815,152 | 107,815,152 | 107,815,152 | |||||||
Units outstanding (in shares) | 107,815,152 | 107,815,152 | 107,815,152 | 107,815,152 | ||||||
Conversion of stock, shares converted | 1 | |||||||||
Class B Units | Diamondback Energy, Inc. | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Units outstanding (in shares) | 107,815,152 | 107,815,152 | ||||||||
Operating Company Units | Diamondback Energy, Inc. | ||||||||||
Limited Partners' Capital Account [Line Items] | ||||||||||
Units outstanding (in shares) | 107,815,152 | 107,815,152 |
UNITHOLDERS_ EQUITY AND DISTR_4
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Ownership Interest in Subsidiary Changes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the Partnership | $ 12,445 | $ 2,822 | $ 18,460 | $ 15,853 | |
Change in ownership of consolidated subsidiaries | (535) | $ (196) | 90,613 | ||
Limited Partners | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Net income (loss) attributable to the Partnership | 12,445 | 2,822 | 18,460 | 15,853 | |
Change in ownership of consolidated subsidiaries | 1,941 | (329,034) | 2,653 | (329,034) | |
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest | 14,386 | (326,212) | $ 21,113 | $ (313,181) | |
Limited Partners | Common Units | |||||
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items] | |||||
Change in ownership of consolidated subsidiaries | $ 1,941 | $ 712 | $ (329,034) |
UNITHOLDERS_ EQUITY AND DISTR_5
UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Schedule of Partnership Cash Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 28, 2021 | Feb. 17, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 |
Distribution Made to Limited Partner [Line Items] | ||||||
Distributions | $ 29,786 | $ 29,866 | $ 43,980 | $ 43,979 | ||
Common Units | ||||||
Distribution Made to Limited Partner [Line Items] | ||||||
Partners' capital, cash distribution (in USD per share) | $ 0.20 | |||||
Common Units | Cash Distribution | ||||||
Distribution Made to Limited Partner [Line Items] | ||||||
Distributions | $ 8,183 | $ 8,263 | ||||
Common Units | Cash Distribution | Diamondback Energy, Inc. | ||||||
Distribution Made to Limited Partner [Line Items] | ||||||
Distributions | $ 21,563 | $ 21,563 |
EARNINGS PER COMMON UNIT (Detai
EARNINGS PER COMMON UNIT (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to Rattler Midstream LP | $ 12,445 | $ 2,822 | $ 18,460 | $ 15,853 |
Less: net income allocated to participating securities | (456) | (644) | (874) | (1,296) |
Net income (loss) attributable to common unitholders | $ 11,989 | $ 2,178 | $ 17,586 | $ 14,557 |
Basic weighted average common units outstanding (in shares) | 41,033,000 | 43,812,000 | 41,386,000 | 43,756,000 |
Potential common units issuable (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted average common units outstanding (in shares) | 41,033,000 | 43,812,000 | 41,386,000 | 43,756,000 |
Net income per common unit, basic (in USD per share) | $ 0.30 | $ 0.05 | $ 0.42 | $ 0.33 |
Net income per common unit, diluted (in USD per share) | $ 0.30 | $ 0.05 | $ 0.42 | $ 0.33 |
Phantom units (in shares) | 0 | 0 | 0 | 0 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 91,579 | $ 78,031 | $ 178,657 | $ 194,614 |
Produced water gathering and disposal | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 67,387 | 66,185 | 131,693 | 145,286 |
Sourced water gathering | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 16,029 | 4,894 | 31,272 | 34,897 |
Natural gas gathering | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 5,925 | 4,500 | 11,325 | 9,430 |
Crude oil gathering | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 2,157 | 2,452 | 4,187 | 4,985 |
Surface revenue | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 81 | $ 0 | $ 180 | $ 16 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Provision for (benefit from) income taxes | $ 3,539 | $ 1,083 | $ 5,210 | $ 4,903 |
Effective tax rate | 6.10% | 8.00% | 6.10% | 6.80% |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense unit-based compensation | $ 0.2 | $ 0.3 | $ 0.2 | $ 0.3 |
FAIR VALUE MEASUREMENTS - Nonre
FAIR VALUE MEASUREMENTS - Nonrecurring Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
5.625% Senior Notes due 2025 | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Interest rate | 5.625% | |
Carrying Value | 5.625% Senior Notes due 2025 | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Senior notes due | $ 491,953 | $ 490,947 |
Carrying Value | Rattler Credit Facility | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Revolving credit facility | 5,000 | 79,000 |
Fair Value | 5.625% Senior Notes due 2025 | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Senior notes due | 525,100 | 528,125 |
Fair Value | Rattler Credit Facility | Nonrecurring | ||
Fair value of assets and liabilities measured on a recurring and nonrecurring basis | ||
Revolving credit facility | $ 5,000 | $ 79,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | Jun. 30, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Future capital commitments for investments includes for the remainder of 2021 | $ 5.9 |
Contractual obligation | $ 23.1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Common Unit - $ / shares | Aug. 02, 2021 | Jul. 30, 2021 | Feb. 17, 2021 |
Subsequent Event [Line Items] | |||
Partners' capital, cash distribution (in USD per share) | $ 0.20 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Partners' capital, cash distribution (in USD per share) | $ 0.25 | $ 0.20 |