10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-36505

Viper Energy Partners LP

(Exact Name of Registrant As Specified in Its Charter)

DE	46-5001985
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)
500 West Texas Ave.
Suite 100
Midland, TX	79701
(Address of principal executive offices)	(Zip code)

(432) 221-7400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Units	VNOM	The Nasdaq Stock Market LLC
		(NASDAQ Global Select Market)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-Accelerated Filer	☐	Smaller Reporting Company	☐
		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐     No  ☒ 

As of April 28, 2023, the registrant had outstanding 72,016,622 common units representing limited partner interests and 90,709,946 Class B units representing limited partner interests.

VIPER ENERGY PARTNERS LP

FORM 10-Q

FOR THE QUARTER ENDED MARCH 31, 2023

TABLE OF CONTENTS

	Page
Glossary of Oil and Natural Gas Terms	ii
Glossary of Certain Other Terms	iii
Cautionary Statement Regarding Forward-Looking Statements	iv
PART I. FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (Unaudited)	1
Condensed Consolidated Balance Sheets	1
Condensed Consolidated Statements of Operations	2
Condensed Consolidated Statements of Changes to Unitholders’ Equity	3
Condensed Consolidated Statements of Cash Flows	4
Condensed Notes to Consolidated Financial Statements	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
Item 3. Quantitative and Qualitative Disclosures about Market Risk	26
Item 4. Controls and Procedures	27
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	28
Item 1A. Risk Factors	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 6. Exhibits	29
Signatures	30

i

GLOSSARY OF OIL AND NATURAL GAS TERMS

The following is a glossary of certain oil and natural gas terms that are used in this Quarterly Report on Form 10-Q (this “report”):

Argus WTI Midland	Crude oil price index at the Permian Basin.
Basin	A large depression on the earth’s surface in which sediments accumulate.
Bbl or barrel	One stock tank barrel, or 42 U.S. gallons liquid volume, used in this report in reference to crude oil or other liquid hydrocarbons.
BO	One barrel of oil.
BO/d	BO per day.
BOE	One barrel of oil equivalent, with six thousand cubic feet of natural gas being equivalent to one barrel of oil.
BOE/d	BOE per day.
British Thermal Unit or Btu	The quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit.
Condensate	Liquid hydrocarbons associated with the production of a primarily natural gas reserve.
Horizontal wells	Wells drilled directionally horizontal to allow for development of structures not reachable through traditional vertical drilling mechanisms.
MBbls	Thousand barrels of crude oil or other liquid hydrocarbons.
MBOE	One thousand barrels of crude oil equivalent, determined using a ratio of six Mcf of natural gas to one Bbl of crude oil, condensate or natural gas liquids.
Mcf	One thousand cubic feet of natural gas.
Mineral interests	The interests in ownership of the resource and mineral rights, giving an owner the right to profit from the extracted resources.
MMBtu	One million British Thermal Units.
MMcf	Million cubic feet of natural gas.
Net royalty acres	Net mineral acres multiplied by the average lease royalty interest and other burdens.
Oil and natural gas properties	Tracts of land consisting of properties to be developed for oil and natural gas resource extraction.
Operator	The individual or company responsible for the exploration and/or production of an oil or natural gas well or lease.
Prospect	A specific geographic area which, based on supporting geological, geophysical or other data and also preliminary economic analysis using reasonably anticipated prices and costs, is deemed to have potential for the discovery of commercial hydrocarbons.
Proved reserves	The estimated quantities of oil, natural gas and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be commercially recoverable in future years from known reservoirs under existing economic and operating conditions.
Reserves	The estimated remaining quantities of oil and natural gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and natural gas or related substances to the market and all permits and financing required to implement the project. Reserves are not assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (i.e., absence of reservoir, structurally low reservoir or negative test results). Such areas may contain prospective resources (i.e., potentially recoverable resources from undiscovered accumulations).
Reservoir	A porous and permeable underground formation containing a natural accumulation of producible natural gas and/or crude oil that is confined by impermeable rock or water barriers and is separate from other reservoirs.
Royalty interest	An interest that gives an owner the right to receive a portion of the resources or revenues without having to carry any costs of development, which may be subject to expiration.
Spud	Commencement of actual drilling operations.
Waha Hub	West Texas natural gas index.
WTI	West Texas Intermediate.

ii

GLOSSARY OF CERTAIN OTHER TERMS

The following is a glossary of certain other terms that are used in this report:

ASU	Accounting Standards Update.
Exchange Act	The Securities Exchange Act of 1934, as amended.
GAAP	Accounting principles generally accepted in the United States.
LTIP	Viper Energy Partners LP Long Term Incentive Plan.
NYMEX	New York Mercantile Exchange.
OPEC	Organization of the Petroleum Exporting Countries.
Operating Company	Viper Energy Partners LLC, a Delaware limited liability company and a consolidated subsidiary of Viper Energy Partners LP.
SEC	United States Securities and Exchange Commission.
SOFR	The secured overnight financing rate
Notes	The 5.375% Senior Notes due 2027 issued on October 16, 2019.

iii

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Various statements contained in this report are “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding our: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which we have mineral and royalty interests, developmental activity by other operators; reserve estimates and our ability to replace or increase reserves; anticipated benefits of strategic transactions (including acquisitions and divestitures); and plans and objectives of management (including Diamondback’s plans for developing our acreage and our cash distribution policy and repurchases of our common units and/or senior notes) are forward-looking statements. When used in this report, the words “aim,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “model,” “outlook,” “plan,” “positioned,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions (including the negative of such terms) as they relate to us are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. In particular, the factors discussed in this report and detailed under Part II. Item 1A. Risk Factors, and our Annual Report on Form 10-K for the year ended December 31, 2022, could affect our actual results and cause our actual results to differ materially from expectations, estimates or assumptions expressed, forecasted or implied in such forward-looking statements. Unless the context requires otherwise, references to “we,” “us,” “our” or “the Partnership” are intended to mean the business and operations of the Partnership and the Operating Company.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following:

•Changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities;

•the impact of public health crises, including epidemic or pandemic diseases such as the COVID-19 pandemic, and any related company or government policies or actions;

•actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments;

•changes in general economic, business or industry conditions, including changes in foreign currency exchange rates, interest rates, inflation rates, instability in the financial sector and concerns over a potential economic downturn or recession;

•regional supply and demand factors, including delays, curtailment delays or interruptions of production on our mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage;

•federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations;

•physical and transition risks relating to climate change;

•restrictions on the use of water, including limits on the use of produced water by our operators and a moratorium on new produced water well permits recently imposed by the Texas Railroad Commission in an effort to control induced seismicity in the Permian Basin;

•significant declines in prices for oil, natural gas, or natural gas liquids, which could require recognition of significant impairment charges;

•changes in U.S. energy, environmental, monetary and trade policies;

•conditions in the capital, financial and credit markets, including the availability and pricing of capital for drilling and development by our operators and environmental and social responsibility projects undertaken by Diamondback and our other operators;

•changes in availability or cost of rigs, equipment, raw materials, supplies and oilfield services impacting our operators;

•changes in safety, health, environmental, tax, and other regulations or requirements impacting us or our operators (including those addressing air emissions, water management, or the impact of global climate change);

•security threats, including cybersecurity threats and disruptions to our business from breaches of our information technology systems, or from breaches of information technology systems of our operators or third parties with whom we transact business;

iv

•lack of, or disruption in, access to adequate and reliable transportation, processing, storage, and other facilities impacting our operators;

•severe weather conditions;

•acts of war or terrorist acts and the governmental or military response thereto;

•changes in the financial strength of counterparties to the credit agreement and hedging contracts of our operating subsidiary;

•changes in our credit rating; and

•other risks and factors disclosed in this report.

In light of these factors, the events anticipated by our forward-looking statements may not occur at the time anticipated or at all. Moreover, new risks emerge from time to time. We cannot predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements we may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this report. All forward-looking statements speak only as of the date of this report or, if earlier, as of the date they were made. We do not intend to, and disclaim any obligation to, update or revise any forward-looking statements unless required by applicable law.

v

PART I. FINANCIAL INFORMATION

ITEM 1.     CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Viper Energy Partners LP

Condensed Consolidated Balance Sheets

(Unaudited)

	March 31,		December 31,
	2023		2022
	(In thousands, except unit amounts)
Assets
Current assets:
Cash and cash equivalents	$	9,106	$	18,179
Royalty income receivable (net of allowance for credit losses)	83,038		81,657
Royalty income receivable—related party	36,324		6,260
Derivative instruments	1,357		9,328
Other current assets	3,445		3,196
Total current assets	133,270		118,620
Property:
Oil and natural gas interests, full cost method of accounting ($1,262,269 and $1,297,221 excluded from depletion at March 31, 2023 and December 31, 2022, respectively)	3,582,601		3,464,819
Land	5,688		5,688
Accumulated depletion and impairment	(751,221)		(720,234)
Property, net	2,837,068		2,750,273
Derivative instruments	—		442
Deferred income taxes (net of allowances)	49,228		49,656
Other assets	170		1,382
Total assets	$	3,019,736	$	2,920,373
Liabilities and Unitholders’ Equity
Current liabilities:
Accounts payable	$	436	$	1,129
Accounts payable—related party	—		306
Accrued liabilities	17,759		19,600
Derivative instruments	2,099		—
Income taxes payable	9,477		911
Total current liabilities	29,771		21,946
Long-term debt, net	695,154		576,895
Derivative instruments	2,383		7
Total liabilities	727,308		598,848
Commitments and contingencies (Note 12)
Unitholders’ equity:
General Partner	629		649
Common units (72,118,622 units issued and outstanding as of March 31, 2023 and 73,229,645 units issued and outstanding as of December 31, 2022)	666,259		689,178
Class B units (90,709,946 units issued and outstanding as of March 31, 2023 and December 31, 2022)	807		832
Total Viper Energy Partners LP unitholders’ equity	667,695		690,659
Non-controlling interest	1,624,733		1,630,866
Total equity	2,292,428		2,321,525
Total liabilities and unitholders’ equity	$	3,019,736	$	2,920,373

See accompanying notes to condensed consolidated financial statements.

1

Viper Energy Partners LP

Condensed Consolidated Statements of Operations

(Unaudited)

	Three Months Ended March 31,
	2023		2022
	(In thousands, except per unit amounts)
Operating income:
Royalty income	$	161,085	$	193,089
Lease bonus income—related party	7,071		6,280
Lease bonus income—third party	400		2,402
Other operating income	402		132
Total operating income	168,958		201,903
Costs and expenses:
Production and ad valorem taxes	12,887		13,870
Depletion	30,987		27,411
General and administrative expenses	2,764		1,953
Total costs and expenses	46,638		43,234
Income (loss) from operations	122,320		158,669
Other income (expense):
Interest expense, net	(9,686)		(9,645)
Gain (loss) on derivative instruments, net	(15,103)		(18,359)
Other income, net	141		6
Total other expense, net	(24,648)		(27,998)
Income (loss) before income taxes	97,672		130,671
Provision for (benefit from) income taxes	9,406		2,630
Net income (loss)	88,266		128,041
Net income (loss) attributable to non-controlling interest	54,299		111,436
Net income (loss) attributable to Viper Energy Partners LP	$	33,967	$	16,605
Net income (loss) attributable to common limited partner units:
Basic	$	0.47	$	0.22
Diluted	$	0.47	$	0.22
Weighted average number of common limited partner units outstanding:
Basic	72,732		77,106
Diluted	72,815		77,214

See accompanying notes to condensed consolidated financial statements.

2

Viper Energy Partners LP

Condensed Consolidated Statements of Changes to Unitholders' Equity

(Unaudited)

	Limited Partners						General Partner		Non-Controlling Interest
	Common			Class B			Amount		Amount
	Units	Amount		Units	Amount						Total
	(In thousands)
Balance at December 31, 2022	73,230	$	689,178	90,710	$	832	$	649	$	1,630,866	$	2,321,525
Unit-based compensation	—	370		—	—		—		—		370
Vesting of restricted stock units	4	—		—	—		—		—		—
Distribution equivalent rights payments	—	(72)		—	—		—		—		(72)
Distributions to public	—	(35,253)		—	—		—		—		(35,253)
Distributions to Diamondback	—	(358)		—	(25)		—		(48,983)		(49,366)
Distributions to General Partner	—	—		—	—		(20)		—		(20)
Change in ownership of consolidated subsidiaries, net	—	11,449		—	—		—		(11,449)		—
Repurchased units as part of unit buyback	(1,115)	(33,022)		—	—		—		—		(33,022)
Net income (loss)	—	33,967		—	—		—		54,299		88,266
Balance at March 31, 2023	72,119	666,259		90,710	807		629		1,624,733		2,292,428

	Limited Partners						General Partner		Non-Controlling Interest
	Common			Class B			Amount		Amount
	Units	Amount		Units	Amount						Total
	(In thousands)
Balance at December 31, 2021	78,546	$	813,161	90,710	$	931	$	729	$	1,418,007	$	2,232,828
Unit-based compensation	—	284		—	—		—		—		284
Distribution equivalent rights payments	—	(64)		—	—		—		—		(64)
Distributions to public	—	(35,830)		—	—		—		—		(35,830)
Distributions to Diamondback	—	(344)		—	(25)		—		(42,634)		(43,003)
Distributions to General Partner	—	—		—	—		(20)		—		(20)
Change in ownership of consolidated subsidiaries, net	—	14,195		—	—		—		(14,195)		—
Repurchased units as part of unit buyback	(1,580)	(39,260)		—	—		—		—		(39,260)
Net income (loss)	—	16,605		—	—		—		111,436		128,041
Balance at March 31, 2022	76,966	768,747		90,710	906		709		1,472,614		2,242,976

See accompanying notes to condensed consolidated financial statements.

3

Viper Energy Partners LP

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Cash flows from operating activities:
Net income (loss)	$	88,266	$	128,041
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) deferred income taxes	429		—
Depletion	30,987		27,411
(Gain) loss on derivative instruments, net	15,103		18,359
Net cash receipts (payments) on derivatives	(2,215)		(10,264)
Other	643		1,388
Changes in operating assets and liabilities:
Royalty income receivable	(1,381)		(29,932)
Royalty income receivable—related party	(30,064)		(2,048)
Accounts payable and accrued liabilities	(2,534)		2,838
Accounts payable—related party	(306)		—
Income tax payable	8,566		—
Other	(251)		45
Net cash provided by (used in) operating activities	107,243		135,838
Cash flows from investing activities:
Acquisitions of oil and natural gas interests—related party	(75,073)		—
Acquisitions of oil and natural gas interests	(40,802)		2,621
Proceeds from sale of oil and natural gas interests	(1,908)		29,336
Other	1,200		—
Net cash provided by (used in) investing activities	(116,583)		31,957
Cash flows from financing activities:
Proceeds from borrowings under credit facility	118,000		44,000
Repayment on credit facility	—		(100,000)
Repurchased units as part of unit buyback	(33,022)		(39,260)
Distributions to public	(35,325)		(35,894)
Distributions to Diamondback	(49,366)		(43,003)
Other	(20)		(20)
Net cash provided by (used in) financing activities	267		(174,177)
Net increase (decrease) in cash and cash equivalents	(9,073)		(6,382)
Cash, cash equivalents and restricted cash at beginning of period	18,179		39,448
Cash, cash equivalents and restricted cash at end of period	$	9,106	$	33,066

See accompanying notes to condensed consolidated financial statements.

4

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements

(Unaudited)

1.    ORGANIZATION AND BASIS OF PRESENTATION

Organization

Viper Energy Partners LP (the “Partnership”) is a publicly traded Delaware limited partnership focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin.

As of March 31, 2023, Viper Energy Partners GP LLC (the “General Partner”) held a 100% general partner interest in the Partnership and Diamondback Energy, Inc. (“Diamondback”) beneficially owned approximately 56% of the Partnership’s total limited partner units outstanding. Diamondback owns and controls the General Partner.

Basis of Presentation

The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All material intercompany balances and transactions have been eliminated upon consolidation. We report our operations in one reportable segment.

These condensed consolidated financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2022, 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.

2.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Certain amounts included in or affecting the Partnership’s financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts the Partnership reports for assets and liabilities and the Partnership’s disclosure of contingent assets and liabilities as of the date of the financial statements.

Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, the war in Ukraine, the COVID-19 pandemic, rising interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession, and measures to combat persistent inflation and instability in the financial sector have contributed to recent pricing and economic volatility. The financial results of companies in the oil and natural gas industry have been and may continue to be impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts.

5

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each particular circumstance. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas interests, estimates of third party operated royalty income related to expected sales volumes and prices, the recoverability of costs of unevaluated properties, the fair value determination of assets and liabilities, including those acquired by the Partnership, fair value estimates of commodity derivatives and estimates of income taxes, including deferred tax valuation allowances.

Related Party Transactions

Royalty Income Receivable

As of March 31, 2023, Diamondback, either directly or through its consolidated subsidiaries, owed the Partnership $36.3 million compared to $6.3 million at December 31, 2022 for royalty income received from third parties for the Partnership’s production, which had not yet been remitted to the Partnership.

Lease Bonus Income

During the three months ended March 31, 2023 and 2022, Diamondback, either directly or through its consolidated subsidiaries, paid the Partnership $7.1 million and $6.3 million of lease bonus income primarily related to lease extensions and new leases in the Midland Basin.

See Note 4—Acquisitions and Divestitures for significant related party acquisitions of oil and natural gas interests. All other significant related party transactions with Diamondback or its affiliates have been stated on the face of the consolidated financial statements included elsewhere in this report as of March 31, 2023 and for the three months ended March 31, 2023 and 2022.

Accrued Liabilities

Accrued liabilities consist of the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Interest payable	$	10,405	$	3,972
Ad valorem taxes payable	5,146		12,492
Derivatives instruments payable	699		1,684
Other	1,509		1,452
Total accrued liabilities	$	17,759	$	19,600

Recent Accounting Pronouncements

Recently Adopted Pronouncements

There are no recently adopted pronouncements.

Accounting Pronouncements Not Yet Adopted

The Partnership considers the applicability and impact of all ASUs. There are no recent accounting pronouncements not yet adopted that are expected to have a material effect on the Partnership upon adoption, as applicable.

6

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

3.    REVENUE FROM CONTRACTS WITH CUSTOMERS

Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained by the operator of the wells in which the Partnership owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Partnership’s contracts are tied to a market index.

The following table disaggregates the Partnership’s total royalty income by product type:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Oil income	$	136,619	$	155,051
Natural gas income	8,991		15,190
Natural gas liquids income	15,475		22,848
Total royalty income	$	161,085	$	193,089

4.    ACQUISITIONS AND DIVESTITURES

2023 Activity

Drop Down Transaction

On March 8, 2023, the Partnership completed the acquisition of certain mineral and royalty interests from subsidiaries of Diamondback for approximately $75.1 million in cash, subject to customary post-closing adjustments for net title benefits (the ‘‘Drop Down’’). The mineral and royalty interests acquired in the Drop Down represent approximately 660 net royalty acres in Ward County in the Southern Delaware Basin, 100% of which are operated by Diamondback, and have an average net royalty interest of approximately 7.2% and current production of approximately 300 BO/d, approximately 72% of which is from oil. The Partnership funded the Drop Down through a combination of cash on hand and borrowings under the Operating Company’s revolving credit facility. The Drop Down was accounted for as a transaction between entities under common control with the properties acquired recorded at Diamondback’s historical carrying value in the Partnership’s condensed consolidated balance sheet at March 31, 2023. The historical carrying value of the properties approximated the Drop Down purchase price.

Other Acquisitions

Additionally in the first quarter of 2023, the Partnership acquired, in individually insignificant transactions from unrelated third-party sellers, mineral and royalty interests representing 159 net royalty acres in the Permian Basin for an aggregate purchase price of approximately $40.7 million, subject to customary post-closing adjustments. The Partnership funded these acquisitions with cash on hand and borrowings under the Operating Company’s revolving credit facility.

2022 Activity

Acquisitions

During the year ended December 31, 2022, in individually insignificant transactions, the Partnership acquired from unrelated third-party sellers mineral and royalty interests representing 375 net royalty acres in the Permian Basin for an aggregate net purchase price of approximately $65.9 million, including certain customary post-closing adjustments. The Partnership funded these acquisitions with cash on hand and borrowings under the Operating Company’s revolving credit facility.

7

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

Divestitures

In the first quarter of 2022, the Partnership divested 325 net royalty acres of third party operated acreage located entirely in Upton and Reagan counties in the Midland Basin for an aggregate net sales price of $29.3 million, including customary closing adjustments.

In the third quarter of 2022, the Partnership divested 93 net royalty acres of third party operated acreage located entirely in Loving county in the Delaware Basin for an aggregate net sales price of $29.9 million, including customary closing adjustments.

In the fourth quarter of 2022, the Partnership divested its entire position in the Eagle Ford Shale consisting of 681 net royalty acres of third party operated acreage for an aggregate net sales price of $53.8 million, including customary closing adjustments.

5.    OIL AND NATURAL GAS INTERESTS

Oil and natural gas interests include the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Oil and natural gas interests:
Subject to depletion	$	2,320,332	$	2,167,598
Not subject to depletion	1,262,269		1,297,221
Gross oil and natural gas interests	3,582,601		3,464,819
Accumulated depletion and impairment	(751,221)		(720,234)
Oil and natural gas interests, net	2,831,380		2,744,585
Land	5,688		5,688
Property, net of accumulated depletion and impairment	$	2,837,068	$	2,750,273

As of March 31, 2023 and December 31, 2022, the Partnership had mineral and royalty interests representing 27,134 and 26,315 net royalty acres, respectively.

No impairment expense was recorded on the Partnership’s oil and natural gas interests for the three months ended March 31, 2023 and 2022 based on the results of the respective quarterly ceiling tests. In addition to commodity prices, the Partnership’s production rates, levels of proved reserves, transfers of unevaluated properties and other factors will determine its actual ceiling test limitations and impairment analysis in future periods. If the trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Partnership may have material write-downs in subsequent quarters.

6.    DEBT

Long-term debt consisted of the following as of the dates indicated:

	March 31,		December 31,
	2023		2022
	(In thousands)
5.375% senior unsecured notes due 2027	$	430,350	$	430,350
Revolving credit facility	270,000		152,000
Unamortized debt issuance costs	(1,239)		(1,306)
Unamortized discount	(3,957)		(4,149)
Total long-term debt	$	695,154	$	576,895

8

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

The Operating Company’s Revolving Credit Facility

The Operating Company’s credit agreement, as amended to date, provides for a revolving credit facility in the maximum credit amount of $2.0 billion and a borrowing base of $580.0 million based on the Operating Company’s oil and natural gas reserves and other factors. The borrowing base is scheduled to be redetermined semi-annually in May and November. As of March 31, 2023, the Operating Company had elected a commitment amount of $500.0 million, with $270.0 million of outstanding borrowings and $230.0 million available for future borrowings. During the three months ended March 31, 2023 and 2022, the weighted average interest rates on the Operating Company’s revolving credit facility were 6.10% and 2.58%, respectively. The revolving credit facility will mature on June 2, 2025.

As of March 31, 2023, the Operating Company was in compliance with the financial maintenance covenants under its credit agreement.

7.    UNITHOLDERS’ EQUITY AND DISTRIBUTIONS

The Partnership has General Partner and limited partner units. At March 31, 2023, the Partnership had a total of 72,118,622 common units issued and outstanding and 90,709,946 Class B units issued and outstanding, of which 731,500 common units and 90,709,946 Class B units were beneficially owned by Diamondback, representing approximately 56% of the Partnership’s total units outstanding. At March 31, 2023, Diamondback also beneficially owns 90,709,946 Operating Company units, representing a 56% non-controlling ownership interest in the Operating Company. The Operating Company units and the Partnership’s Class B units beneficially owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit).

Common Unit Repurchase Program

The board of directors of the Partnership’s General Partner has approved a common unit repurchase program to acquire up to $750.0 million of the Partnership’s outstanding common units, excluding excise tax, over an indefinite period of time. The Partnership intends to purchase common units under the repurchase program opportunistically with funds from cash on hand, free cash flow from operations and potential liquidity events such as the sale of assets. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors of the Partnership’s General Partner at any time. During the three months ended March 31, 2023 and 2022, the Partnership repurchased approximately $32.7 million, excluding excise tax, and $39.3 million of common units under the repurchase program, respectively. Repurchases for the three months ended March 31, 2022 include approximately $37.3 million for the repurchase of 1.5 million common units from a significant unitholder in a privately negotiated transaction in the first quarter of 2022. As of March 31, 2023, $496.7 million remains available under the repurchase program, excluding excise tax.

Cash Distributions on Common Units

Effective with the Partnership’s distribution payable for the third quarter of 2022, the board of directors of the General Partner approved a distribution policy consisting of a base and variable distribution, that takes into account capital returned to unitholders via our common unit repurchase program. For a detailed description of the Partnership’s and the Operating Company’s distribution policy, see Note 7—Unitholders’ Equity and Distributions—Cash Distributions in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022.

The percentage of cash available for distribution pursuant to the distribution policy may change quarterly to enable the Operating Company to retain cash flow to help strengthen the Partnership’s balance sheet while also expanding the return of capital program through the Partnership’s common unit repurchase program. The Partnership is not required to pay distributions to its common unitholders on a quarterly or other basis.

9

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented (in thousands, except for per share amounts):

Period	Amount per Operating Company Unit		Operating Company Distributions to Diamondback		Amount per Common Unit		Distributions to Common Unitholders(1)		Declaration Date	Unitholder Record Date	Payment Date
Q4 2022	$	0.54	$	48,983	$	0.49	$	35,683	February 15, 2023	March 3, 2023	March 10, 2023

(1)Includes amounts paid to Diamondback for the 731,500 common units beneficially owned by Diamondback and distribution equivalent rights payments.

Cash distributions will be made to the common unitholders of record on the applicable record date, generally within 60 days after the end of each quarter.

Change in Ownership of Consolidated Subsidiaries

Non-controlling interest in the accompanying condensed consolidated financial statements represents Diamondback’s ownership in the net assets of the Operating Company. Diamondback’s relative ownership interest in the Operating Company can change due to the Partnership’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on the Partnership’s units. These changes in ownership percentage and the disproportionate allocation of net income (loss) to Diamondback discussed below result in adjustments to non-controlling interest and common unitholder equity, tax effected, but do not impact earnings. The following table summarizes the changes in common unitholder equity due to changes in ownership interest during the period:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Net income (loss) attributable to the Partnership	$	33,967	$	16,605
Change in ownership of consolidated subsidiaries	11,449		14,195
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest	$	45,416	$	30,800

8.    EARNINGS PER COMMON UNIT

The net income (loss) per common unit on the condensed consolidated statements of operations is based on the net income (loss) attributable to the Partnership’s common units for the three months ended March 31, 2023 and 2022. The Partnership’s net income (loss) 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 net income (loss) per common unit is calculated by dividing net income (loss) by the weighted-average number of common units outstanding during the period. Diluted net income (loss) per common unit gives effect, when applicable, to unvested common units granted under the LTIP.

10

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below:

	Three Months Ended March 31,
	2023		2022
	(In thousands, except per unit amounts)
Net income (loss) attributable to the period	$	33,967	$	16,605
Less: distributed and undistributed earnings allocated to participating securities(1)	72		64
Net income (loss) attributable to common unitholders	$	33,895	$	16,541
Weighted average common units outstanding:
Basic weighted average common units outstanding	72,732		77,106
Effect of dilutive securities:
Potential common units issuable(2)	83		108
Diluted weighted average common units outstanding	72,815		77,214
Net income (loss) per common unit, basic	$	0.47	$	0.22
Net income (loss) per common unit, diluted	$	0.47	$	0.22

(1)    Unvested restricted stock units that contain non-forfeitable distribution equivalent rights granted are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method.

(2)    For the three months ended March 31, 2023 and 2022, there were no potential common units excluded from the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive.

9.    INCOME TAXES

The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the dates indicated:

	Three Months Ended March 31,
	2023			2022
	(In thousands, except for tax rate)
Provision for (benefit from) income taxes	$	9,406		$	2,630
Effective tax rate	9.6		%	2.0		%

The Partnership’s effective income tax rate for the three months ended March 31, 2023 differed from the amount 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. The Partnership’s effective income tax rate for the three months ended March 31, 2022 differed from the amount computed by applying the United States federal statutory tax rate to pre-tax income for the period primarily due to net income attributable to the non-controlling interest and the impact of maintaining a valuation allowance on the Partnership’s deferred tax assets.

As of March 31, 2023, the Partnership maintained a partial valuation allowance against its deferred tax assets considered not more likely than not to be realized, based on its assessment of all available evidence, both positive and negative, as required by applicable accounting standards.

As of March 31, 2022, the Partnership had a full valuation allowance against its deferred tax assets, based on its assessment of all available evidence, both positive and negative, supporting realizability of the Partnership’s deferred tax assets.

The Inflation Reduction Act of 2022 (“IRA”) was enacted on August 16, 2022, which imposes an excise tax of 1% on the fair market value of certain public company stock/unit repurchases for tax years beginning after December 31, 2022, and included several other provisions applicable to U.S. income taxes for corporations. The Partnership’s excise tax during the three months ended March 31, 2023 was immaterial and is recognized as part of the cost basis of the units repurchased.

11

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

10.    DERIVATIVES

All derivative financial instruments are recorded at fair value. The Partnership has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.”

Commodity Contracts

The Partnership historically has used fixed price swap contracts, fixed price basis swap contracts and costless collars with corresponding put and call options to reduce price volatility associated with certain of its royalty income. At March 31, 2023, the Partnership has put options and fixed price basis swaps outstanding.

The Partnership’s derivative contracts are based upon reported settlement prices on commodity exchanges, with put contracts for oil based on New York Mercantile Exchange West Texas Intermediate pricing (“Cushing WTI”) and fixed price basis swaps for oil based on the spread between the Cushing WTI crude oil price and the Midland WTI crude oil price. The Partnership’s fixed price basis swaps for natural gas are for the spread between the Waha Hub natural gas price and the New York Mercantile Exchange Henry Hub natural gas price. The weighted average differential represents the amount of reduction to the Cushing WTI oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts.

By using derivative instruments to economically hedge exposure to changes in commodity prices, the Partnership exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Partnership, which creates credit risk. The Partnership’s counterparties are all participants in the amended and restated credit agreement, which is secured by substantially all of the assets of the Operating Company; therefore, the Partnership is not required to post any collateral. The Partnership’s counterparties have been determined to have an acceptable credit risk; therefore, the Partnership does not require collateral from its counterparties.

As of March 31, 2023, the Partnership had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.

					Swaps	Puts
Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Weighted Average Differential	Strike Price	Deferred Premium
OIL
Apr. - Jun.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.82
Jul. - Sep.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.80
Oct. - Dec.	2023	Puts	4,000	WTI Cushing	$—	$55.00	$1.86
Apr. - Dec.	2023	Basis Swaps	4,000	Argus WTI Midland	$1.05	$—	$—
NATURAL GAS
Apr. - Dec.	2023	Basis Swaps	30,000	Waha Hub	$(1.33)	$—	$—
Jan. - Dec.	2024	Basis Swaps	30,000	Waha Hub	$(1.20)	$—	$—

Balance Sheet Offsetting of Derivative Assets and Liabilities

The fair value of derivative instruments is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions, including any deferred premiums, that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 11—Fair Value Measurements for further details.

12

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

Gains and Losses on Derivative Instruments

The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations and the net cash receipts (payments) on derivatives for the periods presented:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Gain (loss) on derivative instruments	$	(15,103)	$	(18,359)
Net cash receipts (payments) on derivatives(1)	$	(2,215)	$	(10,264)

(1)The three months ended March 31, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $4.2 million.

11.    FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As discussed in Note 11—Fair Value Measurements in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022, certain assets and liabilities are reported at fair value on a recurring basis on the Partnership’s condensed consolidated balance sheets, including the Partnership’s derivative instruments. The fair values of the Partnership’s derivative contracts are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs in the fair value hierarchy. The net amounts are classified as current or noncurrent based on their anticipated settlement dates.

13

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	5,072	$	—	$	5,072	$	(3,715)	$	1,357
Liabilities:
Current:
Derivative instruments	$	—	$	5,814	$	—	$	5,814	$	(3,715)	$	2,099
Non-current:
Derivative instruments	$	—	$	2,383	$	—	$	2,383	$	—	$	2,383

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	13,296	$	—	$	13,296	$	(3,968)	$	9,328
Non-current:
Derivative instruments	—		1,911		—		1,911		(1,469)		442
Liabilities:
Current:
Derivative instruments	$	—	$	3,968	$	—	$	3,968	$	(3,968)	$	—
Non-current:
Derivative instruments	$	—	$	1,476	$	—	$	1,476	$	(1,469)	$	7

Assets and Liabilities Not Recorded at Fair Value

The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets:

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Debt:
Revolving credit facility	$	270,000	$	270,000	$	152,000	$	152,000
5.375% senior notes due 2027(1)	$	425,154	$	416,041	$	424,895	$	411,634

(1) The carrying value includes associated deferred loan costs and any discount.

14

Viper Energy Partners LP

Condensed Notes to Consolidated Financial Statements - (Continued)

(Unaudited)

The fair value of the Operating Company’s revolving credit facility approximates the carrying value based on borrowing rates available to the Partnership for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Notes was determined using the March 31, 2023 quoted market price, a Level 1 classification in the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in certain circumstances. These assets and liabilities can include mineral and royalty interests acquired in asset acquisitions and subsequent write-downs of our proved oil and natural gas interests to fair value when they are impaired or held for sale.

Fair Value of Financial Assets

The Partnership has other financial instruments consisting of cash and cash equivalents, royalty income receivable, other current assets, accounts payable, accrued liabilities and income taxes payable. The carrying value of these instruments approximate their fair value because of the short-term nature of the instruments.

12.    COMMITMENTS AND CONTINGENCIES

The Partnership is a party to various routine legal proceedings, disputes and claims from time to time arising in the ordinary course of its business. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Partnership, cannot be predicted with certainty, the Partnership’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. The Partnership’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Partnership’s assessment. The Partnership records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated.

13.    SUBSEQUENT EVENTS

Cash Distribution

On April 26, 2023, the board of directors of the General Partner approved a cash distribution for the first quarter of 2023 of $0.33 per common unit, payable on May 18, 2023, to eligible unitholders of record at the close of business on May 11, 2023. The distribution consists of a base quarterly distribution of $0.25 per common unit and a variable quarterly distribution of $0.08 per common unit.

15

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto presented in this report as well as our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. The following discussion contains “forward-looking statements” that reflect our future plans, estimates, beliefs, and expected performance. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. See “Part II. Item 1A. Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements.”

Overview

We are a publicly traded Delaware limited partnership formed by Diamondback to own and acquire mineral and royalty interests in oil and natural gas properties primarily in the Permian Basin. We operate in one reportable segment. Since May 10, 2018, we have been treated as a corporation for U.S. federal income tax purposes.

Recent Developments

Commodity Prices

Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Regional and worldwide economic activity, including any economic downturn or recession that has occurred or may occur in the future, extreme weather conditions and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. During 2022 and the first quarter of 2023, NYMEX WTI, has ranged from $66.74 to $123.70 per Bbl, and the NYMEX Henry Hub price of natural gas has ranged from $1.99 to $9.68 per MMBtu, with seven-year highs reached in 2022. The war in Ukraine, the COVID-19 pandemic, rising interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession, measures to combat persistent inflation and instability in the financial sector have contributed to recent economic and pricing volatility and may continue to impact pricing throughout 2023. Additionally, OPEC and its non-OPEC allies, known collectively as OPEC+, continues to meet regularly to evaluate the state of global oil supply, demand and inventory levels.

Acquisitions Update

Drop Down Transaction

On March 8, 2023, we acquired certain mineral and royalty interests from subsidiaries of Diamondback for approximately $75.1 million in cash, subject to customary post-closing adjustments. We funded the Drop Down through a combination of cash on hand and borrowings under the Operating Company’s revolving credit facility. The Drop Down was accounted for as a transaction between entities under common control.

Other Acquisitions

Additionally in the first quarter of 2023, in individually insignificant transactions, we acquired from unrelated third-party sellers, mineral and royalty interests representing 159 net royalty acres in the Permian Basin for an aggregate purchase price of approximately $40.7 million, subject to customary post-closing adjustments. We funded these acquisitions through a combination of cash on hand and borrowings under the Operating Company’s revolving credit facility.

As a result of these 2023 acquisitions, our footprint of mineral and royalty interests totaled 27,134 net royalty acres, approximately 57% of which are operated by Diamondback, as of March 31, 2023.

See Note 4—Acquisitions and Divestitures of the notes to the condensed consolidated financial statements included elsewhere in this report for further details.

16

Production and Operational Update

Average oil production per day during the first quarter of 2023 was the highest in the Partnership’s history. There are currently 38 rigs operating on our mineral and royalty acreage, nine of which are operated by Diamondback. The Drop Down provides a high NRI exposure to Diamondback’s expected development plan in the Southern Delaware Basin over the next several years and is expected to enhance our growth profile as well. As a result of the Drop Down and continued outperformance of our production goals, we have increased our full year 2023 production guidance by approximately 12% compared to 2022, which is a two percent increase at the midpoint from our guidance published in February 2023.

The following table summarizes our gross well information as of the dates indicated:

	Diamondback Operated		Third Party Operated		Total
Horizontal wells turned to production (first quarter 2023)(1):
Gross wells	50		191		241
Net 100% royalty interest wells	3.2		2.8		6.0
Average percent net royalty interest	6.4	%	1.4	%	2.5	%
Horizontal producing well count (as of April 13, 2023):
Gross wells	1,633		3,929		5,562
Net 100% royalty interest wells	119.4		63.1		182.5
Average percent net royalty interest	7.3	%	1.6	%	3.3	%
Horizontal active development well count (as of April 13, 2023)(2):
Gross wells	143		345		488
Net 100% royalty interest wells	9.1		3.2		12.3
Average percent net royalty interest	6.4	%	0.9	%	2.5	%
Line of sight wells (as of April 13, 2023)(3):
Gross wells	177		276		453
Net 100% royalty interest wells	8.2		4.1		12.3
Average percent net royalty interest	4.7	%	1.5	%	2.7	%

(1) Average lateral length of 10,384.

(2) The total 488 gross wells currently in the process of active development are those wells that have been spud and are expected to be turned to production within approximately the next six to eight months.

(3) The total 453 gross line-of-sight wells are those that are not currently in the process of active development, but for which we have reason to believe that they will be turned to production within approximately the next 15 to 18 months. The expected timing of these line-of-sight wells is based primarily on permitting by third party operators or Diamondback’s current expected completion schedule. Existing permits or active development of our royalty acreage does not ensure that those wells will be turned to production given the volatility in oil prices.

17

Comparison of the Three Months Ended March 31, 2023 and December 31, 2022

Results of Operations

The following table summarizes our income and expenses for the periods indicated:

	Three Months Ended
	March 31, 2023		December 31, 2022
	(In thousands)
Operating income:
Oil income	$	136,619	$	153,101
Natural gas income	8,991		15,528
Natural gas liquids income	15,475		17,519
Royalty income	161,085		186,148
Lease bonus income—related party	7,071		16,716
Lease bonus income—third party	400		567
Other operating income	402		194
Total operating income	168,958		203,625
Costs and expenses:
Production and ad valorem taxes	12,887		10,825
Depletion	30,987		31,238
General and administrative expenses	2,764		2,570
Total costs and expenses	46,638		44,633
Income (loss) from operations	122,320		158,992
Other income (expense):
Interest expense, net	(9,686)		(10,251)
Gain (loss) on derivative instruments, net	(15,103)		1,228
Other income, net	141		216
Total other expense, net	(24,648)		(8,807)
Income (loss) before income taxes	97,672		150,185
Provision for (benefit from) income taxes	9,406		4,944
Net income (loss)	88,266		145,241
Net income (loss) attributable to non-controlling interest	54,299		123,535
Net income (loss) attributable to Viper Energy Partners LP	$	33,967	$	21,706

18

The following table summarizes our production data, average sales prices and average costs for the periods indicated:

	Three Months Ended
	March 31, 2023		December 31, 2022
Production data:
Oil (MBbls)	1,810		1,838
Natural gas (MMcf)	4,224		4,155
Natural gas liquids (MBbls)	633		683
Combined volumes (MBOE)(1)	3,147		3,214
Average daily oil volumes (BO/d)	20,111		19,978
Average daily combined volumes (BOE/d)	34,967		34,935
Average sales prices:
Oil ($/Bbl)	$	75.48	$	83.30
Natural gas ($/Mcf)	$	2.13	$	3.74
Natural gas liquids ($/Bbl)	$	24.45	$	25.65
Combined ($/BOE)(2)	$	51.19	$	57.92
Oil, hedged ($/Bbl)(3)	$	74.30	$	82.71
Natural gas, hedged ($/Mcf)(3)	$	2.11	$	3.03
Natural gas liquids ($/Bbl)(3)	$	24.45	$	25.65
Combined price, hedged ($/BOE)(3)	$	50.48	$	56.66
Average costs ($/BOE):
Production and ad valorem taxes	$	4.10	$	3.37
General and administrative - cash component(4)	0.76		0.70
Total operating expense - cash	$	4.86	$	4.07
General and administrative - non-cash unit compensation expense	$	0.12	$	0.10
Interest expense, net	$	3.08	$	3.19
Depletion	$	9.85	$	9.72

(1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.

(2)Realized price net of all deducts for gathering, transportation and processing.

(3)Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.

(4)Excludes non-cash unit-based compensation expense for the respective periods presented.

Royalty Income

Our royalty income is a function of oil, natural gas, and natural gas liquids production volumes sold and average prices received for those volumes.

Royalty income decreased $25.1 million during the first quarter of 2023 compared to the fourth quarter of 2022. Changes in average pricing contributed approximately $21.7 million of the total decrease due primarily to lower average oil prices, natural gas prices and to a lesser extent, natural gas liquids prices received for our production in the first quarter of 2023. The remaining decrease of $3.4 million in royalty income is due to a 2% decline in production in the first quarter of 2023 compared to the fourth quarter of 2022. This production decline resulted from divesting our entire position in Eagle Ford Shale in late fourth quarter of 2022 and having two fewer days of production in the first quarter of 2023 compared to the fourth quarter of 2022.

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Lease Bonus Income-Related Party

Lease bonus income from Diamondback decreased $9.6 million due primarily to receiving payment for one lease in the first quarter of 2023 compared to receiving an additional one-time lease ratification payment of $16.4 million from Diamondback during the fourth quarter of 2022.

Production and Ad Valorem Taxes

The following table presents production and ad valorem taxes for the three months ended March 31, 2023 and December 31, 2022:

	Three Months Ended
	March 31, 2023						December 31, 2022
	Amount (In thousands)		Per BOE		Percentage of Royalty Income		Amount (In thousands)		Per BOE		Percentage of Royalty Income
Production taxes	$	8,177	$	2.60	5.1	%	$	9,373	$	2.92	5.0	%
Ad valorem taxes	4,710		1.50		2.9		1,452		0.45		0.8
Total production and ad valorem taxes	$	12,887	$	4.10	8.0	%	$	10,825	$	3.37	5.8	%

In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes as a percentage of royalty income for the first quarter of 2023 were consistent with the fourth quarter of 2022. Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. The increase in the first quarter of 2023 compared to the fourth quarter of 2022 was primarily due to the fourth quarter of 2022 including $2.9 million in reductions to the full year 2022 accrual for ad valorem taxes to reflect actual tax assessments received. The remaining increase in ad valorem taxes is primarily due to higher valuations assigned to our oil and natural gas interests period over period driven by higher average commodity prices and royalty income in 2022.

Derivative Instruments

The following table shows the net gain (loss) on derivative instruments and the net cash receipts (payments) on derivatives for the periods presented:

	Three Months Ended
	March 31, 2023		December 31, 2022
	(In thousands)
Gain (loss) on derivative instruments	$	(15,103)	$	1,228
Net cash receipts (payments) on derivatives	$	(2,215)	$	(4,027)

We recorded a loss on our derivative instruments for the first quarter of 2023, compared to a gain for the fourth quarter of 2022. This change is primarily due to a decrease in the basis spread on our outstanding natural gas basis swaps at March 31, 2023 compared to December 31, 2022. We are required to recognize all derivative instruments on our balance sheet as either assets or liabilities measured at fair value. See Note 10—Derivatives of the notes to the condensed consolidated financial statements included elsewhere in this report for additional discussion of our open contracts at March 31, 2023.

Provision for (Benefit from) Income Taxes

The $4.5 million increase in income tax expense for the first quarter of 2023 compared to the fourth quarter of 2022 is primarily due to the increase in pre-tax income attributable to the Partnership as a result of the expiration of the special income allocation at December 31, 2022. See Note 9—Income Taxes of the notes to the condensed consolidated financial statements included elsewhere in this report for further details.

Net Income (Loss) Attributable to Non-controlling Interest

The $69.2 million decrease in net income attributable to non-controlling interest for the first quarter of 2023 compared to the fourth quarter of 2022 is primarily due to the expiration of the special income allocation whereby special allocations of the Operating Company’s income and gains over losses and deductions (but before depletion) were made to Diamondback through December 31, 2022.

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Comparison of the Three Months Ended March 31, 2023 and 2022

Results of Operations

The following table summarizes our income and expenses for the periods indicated:

	Three Months Ended March 31,
	2023		2022
Operating income:
Oil income	$	136,619	$	155,051
Natural gas income	8,991		15,190
Natural gas liquids income	15,475		22,848
Royalty income	161,085		193,089
Lease bonus income—related party	7,071		6,280
Lease bonus income—third party	400		2,402
Other operating income	402		132
Total operating income	168,958		201,903
Costs and expenses:
Production and ad valorem taxes	12,887		13,870
Depletion	30,987		27,411
General and administrative expenses	2,764		1,953
Total costs and expenses	46,638		43,234
Income (loss) from operations	122,320		158,669
Other income (expense):
Interest expense, net	(9,686)		(9,645)
Gain (loss) on derivative instruments, net	(15,103)		(18,359)
Other income, net	141		6
Total other expense, net	(24,648)		(27,998)
Income (loss) before income taxes	97,672		130,671
Provision for (benefit from) income taxes	9,406		2,630
Net income (loss)	88,266		128,041
Net income (loss) attributable to non-controlling interest	54,299		111,436
Net income (loss) attributable to Viper Energy Partners LP	$	33,967	$	16,605

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The following table summarizes our production data, average sales prices and average costs for the periods indicated:

	Three Months Ended March 31,
	2023		2022
Production data:
Oil (MBbls)	1,810		1,633
Natural gas (MMcf)	4,224		3,729
Natural gas liquids (MBbls)	633		586
Combined volumes (MBOE)(1)	3,147		2,841
Average daily oil volumes (BO/d)	20,111		18,144
Average daily combined volumes (BOE/d)	34,967		31,567
Average sales prices:
Oil ($/Bbl)	$	75.48	$	94.95
Natural gas ($/Mcf)	$	2.13	$	4.07
Natural gas liquids ($/Bbl)	$	24.45	$	38.99
Combined ($/BOE)(2)	$	51.19	$	67.97
Oil, hedged ($/Bbl)(3)	$	74.30	$	92.05
Natural gas, hedged ($/Mcf)(3)	$	2.11	$	3.71
Natural gas liquids ($/Bbl)(3)	$	24.45	$	38.99
Combined price, hedged ($/BOE)(3)	$	50.48	$	65.82
Average costs ($/BOE):
Production and ad valorem taxes	$	4.10	$	4.88
General and administrative - cash component(4)	0.76		0.59
Total operating expense - cash	$	4.86	$	5.47
General and administrative - non-cash unit compensation expense	$	0.12	$	0.10
Interest expense, net	$	3.08	$	3.39
Depletion	$	9.85	$	9.65

(1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl.

(2)Realized price net of all deducts for gathering, transportation and processing.

(3)Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices.

(4)Excludes non-cash unit-based compensation expense for the respective periods presented.

Royalty Income

Our royalty income is a function of oil, natural gas, and natural gas liquids production volumes sold and average prices received for those volumes.

Royalty income decreased $32.0 million during the three months ended March 31, 2023 compared to the same period in 2022. Changes in average pricing during 2023 contributed to approximately $52.7 million of the total decrease due primarily to lower average oil prices, and to a lesser extent, natural gas and natural gas liquids prices received for our production in 2023. The decrease due to lower pricing was partially offset by $20.7 million in additional royalty income due to an 11% increase in production volumes during the three months ended March 31, 2023 compared to the same period in 2022. This production growth stems from new well additions between periods due to several acquisitions.

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Production and Ad Valorem Taxes

The following table presents production and ad valorem taxes for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023						2022
	Amount (In thousands)		Per BOE		Percentage of Royalty Income		Amount (In thousands)		Per BOE		Percentage of Royalty Income
Production taxes	$	8,177	$	2.60	5.1	%	$	9,870	$	3.47	5.1	%
Ad valorem taxes	4,710		1.50		2.9		4,000		1.41		2.1
Total production and ad valorem taxes	$	12,887	$	4.10	8.0	%	$	13,870	$	4.88	7.2	%

In general, production taxes are directly related to production revenues and are based upon current year commodity prices. Production taxes as a percentage of royalty income for the three months ended March 31, 2023 remained consistent with the same period in 2022. Ad valorem taxes are based, among other factors, on property values driven by prior year commodity prices. The increase in ad valorem taxes is primarily due to higher valuations assigned to our oil and natural gas interests period over period driven by higher average commodity prices in 2022.

Depletion

The $3.6 million increase in depletion expense for the three months ended March 31, 2023 compared to the same period in 2022 was due primarily to production growth between the periods. The average depletion rate also increased slightly to $9.85 for the three months ended March 31, 2023 compared to the rate of $9.65 for the same period in 2022 due primarily to higher value leasehold being transferred into the amortization base in the 2023 period.

Derivative Instruments

The following table shows the net gain (loss) on derivative instruments and the net cash receipts (payments) on derivatives for the periods presented:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Gain (loss) on derivative instruments	$	(15,103)	$	(18,359)
Net cash receipts (payments) on derivatives(1)	$	(2,215)	$	(10,264)

(1)The three months ended March 31, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $4.2 million.

We recorded losses on our derivative instruments for the three months ended March 31, 2023 and 2022 primarily due to market prices being higher than the strike prices on our open derivative contracts. We are required to recognize all derivative instruments on our balance sheet as either assets or liabilities measured at fair value. See Note 10—Derivatives of the notes to the condensed consolidated financial statements included elsewhere in this report for additional discussion of our open contracts at March 31, 2023.

Provision for (Benefit from) Income Taxes

The $6.8 million increase in income tax expense for the three months ended March 31, 2023 compared to the same period in 2022 resulted primarily due to the increase in pre-tax income attributable to the Partnership as a result of the expiration of the special income allocation at December 31, 2022 and the impact of maintaining a valuation allowance against the Partnership’s deferred tax assets as of March 31, 2022. See Note 9—Income Taxes of the notes to the condensed consolidated financial statements included elsewhere in this report for further details.

Net Income (Loss) Attributable to Non-controlling Interest

The $57.1 million decrease in net income (loss) attributable to non-controlling interest for the three months ended March 31, 2023 compared to the same period in 2022 is primarily due to the expiration of the special income allocation at December 31, 2022.

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Liquidity and Capital Resources

Overview of Sources and Uses of Cash

As we pursue our business and financial strategy, we regularly consider which capital resources, including cash flow and equity and debt financings, are available to meet our future financial obligations and liquidity requirements. Our future ability to grow proved reserves will be highly dependent on the capital resources available to us. Our primary sources of liquidity have been cash flows from operations, proceeds from sales of non-core assets, equity and debt offerings and borrowings under the Operating Company’s credit agreement. Our primary uses of cash have been distributions to our unitholders, repayments of debt, capital expenditures for the acquisition of our mineral interests and royalty interests in oil and natural gas properties and repurchases of our common units. At March 31, 2023, we had approximately $239.1 million of liquidity consisting of $9.1 million in cash and cash equivalents and $230.0 million available under the Operating Company’s credit agreement.

Our working capital requirements are supported by our cash and cash equivalents and the Operating Company’s credit agreement. We may draw on the Operating Company’s credit agreement to meet short-term cash requirements, or issue debt or equity securities as part of our longer-term liquidity and capital management program. Because of the alternatives available to us as discussed above, we believe that our short-term and long-term liquidity are adequate to fund not only our current operations, but also our near-term and long-term funding requirements including our acquisitions of mineral and royalty interests, distributions, debt service obligations and repayment of debt maturities, common unit and senior note repurchases and any amounts that may ultimately be paid in connection with contingencies.

In order to mitigate volatility in oil and natural gas prices, we have entered into commodity derivative contracts as discussed further in Item 3. Quantitative and Qualitative Disclosures About Market Risk—Commodity Price Risk.

Continued prolonged volatility in the capital, financial and/or credit markets due to the COVID-19 pandemic, the war in Ukraine, the depressed commodity markets and, or adverse macroeconomic conditions, including persistent inflation, rising interests rates, global supply chain disruptions and increasing concerns over a potential economic downturn or recession, may limit our access to, or increase our cost of, capital or make capital unavailable on terms acceptable to us or at all. Although we expect that our sources of funding will be adequate to fund our short-term and long-term liquidity requirements, we cannot assure you that the needed capital will be available on acceptable terms or at all.

Cash Flows

The following table presents our cash flows for the periods indicated:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Cash Flow Data:
Net cash provided by (used in) operating activities	$	107,243	$	135,838
Net cash provided by (used in) investing activities	(116,583)		31,957
Net cash provided by (used in) financing activities	267		(174,177)
Net increase (decrease) in cash and cash equivalents	$	(9,073)	$	(6,382)

Operating Activities

Our operating cash flow is sensitive to many variables, the most significant of which are the volatility of prices for oil and natural gas and the volumes of oil and natural gas sold by our producers. The decrease in net cash provided by operating activities during the three months ended March 31, 2023 compared to the same period in 2022 was primarily driven by (i) lower royalty income and (ii) changes in our working capital accounts, due primarily to the timing of when collections are made on accounts receivable and payments are made on accounts payable and accrued liabilities, as well as an increase in taxes payable as our pre-tax income attributable to the Partnership increases. These cash outflows were partially offset by a decrease in cash paid for derivative settlements. See “—Results of Operations” for discussion of significant changes in our revenues and expenses.

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Investing Activities

Net cash used in investing activities during the three months ended March 31, 2023 primarily related to the acquisition of oil and natural gas interests in the Drop Down and from other third-party acquisitions.

Net provided by in investing activities during the three months ended March 31, 2022 primarily related to proceeds from the divestitures of oil and natural gas interests.

Financing Activities

Net cash provided by financing activities during the three months ended March 31, 2023 primarily resulted from $118.0 million of borrowings under the Operating Company’s revolving credit facility, which were offset by distributions of $84.7 million to our unitholders and $33.0 million of common unit repurchases.

Net cash used in financing activities during the three months ended March 31, 2022, was primarily related to distributions of $78.9 million to our unitholders and $39.3 million of common unit repurchases which included approximately $37.3 million for the repurchase of 1.5 million common units from a significant unitholder in a privately negotiated transaction. Additionally, we made net repayments of $56.0 million under the Operating Company’s revolving credit facility during the first quarter of 2022.

Capital Resources

The Operating Company’s Revolving Credit Facility

At March 31, 2023, the Operating Company’s credit agreement, which matures on June 2, 2025, had an elected commitment amount of $500.0 million, with $270.0 million in outstanding borrowings and $230.0 million of availability.

See Note 6—Debt of the notes to the condensed consolidated financial statements included elsewhere in this report for additional discussion of our outstanding debt at March 31, 2023.

Capital Requirements

Repurchases of Securities

Under our current common unit repurchase program, the board of directors of our General Partner has authorized us to acquire up to $750.0 million of our common units. As of March 31, 2023, $496.7 million remains available for use to repurchase units under this repurchase program, excluding excise tax.

We may also from time to time opportunistically repurchase some of the outstanding Notes in open market purchases or in privately negotiated transactions.

Cash Distributions

The distribution for the first quarter of 2023 is $0.33 per common unit payable on May 18, 2023 to common unitholders of record at the close of business on May 11, 2023. The dividend consists of a base quarterly dividend of $0.25 per common unit and a variable quarterly dividend of $0.08 per common unit. Future base and variable dividends are at the discretion of the board of directors of our General Partner.

See Note 7—Unitholders' Equity and Distributions of the notes to the condensed consolidated financial statements included elsewhere in this report for further discussion of the repurchase program and distributions.

Critical Accounting Estimates

There have been no changes to our critical accounting estimates from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022.

Recent Accounting Pronouncements

See Note 2—Summary of Significant Accounting Policies included in the condensed notes to the consolidated financial statements included elsewhere in this report for recent accounting pronouncements not yet adopted, if any.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk, including the effects of adverse changes in commodity prices and interest rates as described below. The primary objective of the following information is to provide quantitative and qualitative information about our potential exposure to market risks. The term “market risk” refers to the risk of loss arising from adverse changes in oil and natural gas prices and interest rates. The disclosures are not meant to be precise indicators of expected future losses, but rather indicators of reasonably possible losses.

Commodity Price Risk

Our major market risk exposure is in the pricing applicable to the oil and natural gas production of our operators. Realized prices are driven primarily by the prevailing worldwide price for crude oil and prices for natural gas in the United States. Both crude oil and natural gas realized prices are also impacted by the quality of the product, supply and demand balances in local physical markets and the availability of transportation to demand centers. Pricing for oil and natural gas production has been historically volatile and unpredictable and the prices that our operators receive for production depend on many factors outside of our or their control, such as the war in Ukraine, rising interest rates, global supply chain disruptions, a potential economic downturn or recession, the COVID-19 pandemic and actions taken by OPEC members and other exporting nations. We cannot predict events that may lead to future price volatility and the near term energy outlook remains subject to heightened levels of uncertainty.

We historically have used fixed price swap contracts, fixed price basis swap contracts and costless collars with corresponding put and call options to reduce price volatility associated with certain of our royalty income as discussed in Note 10—Derivatives of the notes to the condensed consolidated financial statements included elsewhere in this report.

At March 31, 2023, we had a net liability derivative position related to our commodity price derivatives of $3.1 million. Utilizing actual derivative contractual volumes under our contracts as of March 31, 2023, a 10% increase in forward curves associated with the underlying commodity would have decreased the net liability position by $0.6 million to $2.5 million, while a 10% decrease in forward curves associated with the underlying commodity would have increased the net liability derivative position by $0.5 million to $3.7 million. However, any cash derivative gain or loss would be substantially offset by a decrease or increase, respectively, in the actual sales value of production covered by the derivative instrument.

Credit Risk

We are subject to risk resulting from the concentration of royalty income in producing oil and natural gas interests and receivables with a limited number of significant purchasers and producers. We do not require collateral and the failure or inability of our significant purchasers to meet their obligations to us due to their liquidity issues, bankruptcy, insolvency or liquidation may adversely affect our financial results. Volatility in commodity pricing environment and macroeconomic conditions may enhance our purchaser credit risk.

Interest Rate Risk

We are subject to market risk exposure related to changes in interest rates on our indebtedness under the Operating Company’s credit agreement. The terms of the credit agreement provide for interest on borrowings at a floating rate equal to (i) term SOFR plus 0.10% (“Adjusted Term SOFR”) or (ii) an alternate base rate (which is equal to the greatest of the prime rate, the Federal Funds effective rate plus 0.50%, and 1-month Adjusted Term SOFR plus 1.00%), in each case plus the applicable margin. The applicable margin ranges from 1.00% to 2.00% per annum in the case of the alternative base rate and from 2.00% to 3.00% per annum in the case of Adjusted Term SOFR, in each case depending on the amount of the loans outstanding in relation to the commitment, which is calculated using the least of the maximum credit amount, the aggregate elected commitment amount and the borrowing base. We are obligated to pay a quarterly commitment fee ranging from 0.375% to 0.500% per year on the unused portion of the commitment. As of March 31, 2023, we had $270.0 million in outstanding borrowings. During the three months ended March 31, 2023, the weighted average interest rate on the Operating Company’s revolving credit facility was 6.10%.

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ITEM 4.          CONTROLS AND PROCEDURES

Evaluation of Disclosure Control and Procedures. Under the direction of the Chief Executive Officer and Chief Financial Officer of our General Partner, we have established disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. The disclosure controls and procedures are also intended to ensure that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer of our General Partner, as appropriate to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

As of March 31, 2023, an evaluation was performed under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer of our General Partner, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act. Based upon the evaluation, the Chief Executive Officer and Chief Financial Officer of our General Partner have concluded that as of March 31, 2023, our disclosure controls and procedures are effective.

Changes in Internal Control over Financial Reporting. There have not been any changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1.     LEGAL PROCEEDINGS

Due to the nature of our business, we are, from time to time, involved in routine litigation or subject to disputes or claims related to our business activities. In the opinion of our management, none of the pending litigation, disputes or claims against us, if decided adversely, will have a material adverse effect on our financial condition, cash flows or results of operations. See Note 12—Commitments and Contingencies of the notes to the condensed consolidated financial statements included elsewhere in this report.

ITEM 1A.     RISK FACTORS

Our business faces many risks. Any of the risks discussed in this report and our other SEC filings could have a material impact on our business, financial position or results of operations. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial may also materially impair our business operations, financial condition or future results.

As of the date of this filing, we continue to be subject to the risk factors previously disclosed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 23, 2023 and in subsequent filings we make with the SEC. There have been no material changes in our risk factors from those described in our Annual Report on Form 10-K for the year ended December 31, 2022.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Unregistered Sales of Equity Securities

None.

Issuer Repurchases of Equity Securities

Our common unit repurchase activity for the three months ended March 31, 2023 was as follows:

Period	Total Number of Units Purchased	Average Price Paid Per Unit(1)(3)		Total Number of Units Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Units that May Yet Be Purchased Under the Plan(2)(3)
	(In thousands, except unit amounts)
January 1, 2023 - January 31, 2023	357,868	$	31.52	357,868	$	518,099
February 1, 2023 - February 28, 2023	198,662	$	30.96	198,662	$	511,948
March 1, 2023 - March 31, 2023	558,400	$	27.33	558,400	$	496,685
Total	1,114,930	$	29.33	1,114,930

(1)The average price paid per common unit includes any commissions paid to repurchase a common unit.

(2)On July 26, 2022, the board of directors of our General Partner increased the authorization under our then-in-effect common unit repurchase program from $250.0 million to $750.0 million, excluding excise tax. This repurchase program has no expiration date and remains subject to market conditions, applicable legal requirements, contractual obligations and other factors and may be suspended from time to time, modified, extended or discontinued by the board of directors of our General Partner at any time.

(3)The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. All dollar amounts presented exclude such excise taxes, as applicable.

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ITEM 6.     EXHIBITS

Exhibit Number	Description
2.1	Purchase and Sale Agreement dated August 6, 2021 by and among Swallowtail Royalties LLC, Swallowtail Royalties II LLC (collectively, as seller), Viper Energy Partners LLC (as buyer) and Viper Energy Partners LP (as parent, and collectively with Viper Energy Partners LLC, as buyer parties) (incorporated by reference to Exhibit 2.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on August 12, 2021).
3.1	Certificate of Limited Partnership of Viper Energy Partners LP (incorporated by reference to Exhibit 3.1 of the Partnership’s Registration Statement on Form S-1 (File 333-195769) filed on May 7, 2014).
3.2	Second Amended and Restated Agreement of Limited Partnership of Viper Energy Partners LP, dated as of May 9, 2018 (incorporated by reference to Exhibit 3.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on May 15, 2018).
3.3	First Amendment to Second Amended and Restated Agreement of Limited Partnership of Viper Energy Partners LP, dated as of May 10, 2018. (incorporated by reference to Exhibit 3.2 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on May 15, 2018).
3.4	Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of May 9, 2018. (incorporated by reference to Exhibit 3.3 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on May 15, 2018).
3.5	First Amendment to Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of March 30, 2020 (incorporated by reference to Exhibit 3.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on March 31, 2020).
3.6	Second Amendment to the Second Amended and Restated Limited Liability Company Agreement of Viper Energy Partners LLC, dated as of December 27, 2021 (incorporated by reference to Exhibit 3.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on December 28, 2021).
4.1	Amended and Restated Registration Rights Agreement, dated as of May 9, 2018, by and between Viper Energy Partners LP and Diamondback Energy, Inc. (incorporated by reference to Exhibit 4.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on May 15, 2018).
4.2	Registration Rights Agreement, dated as of October 1, 2021, by and among Viper Energy Partners LP, Swallowtail Royalties LLC and Swallowtail Royalties II LLC (incorporated by reference to Exhibit 4.1 of the Partnership’s Current Report on Form 8-K (File 001-36505) filed on October 7, 2021).
31.1*	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
31.2*	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.
32.1**	Certification of Chief Executive Officer and Chief Financial Officer pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101	The following financial information from the Registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statement of Changes in Unitholders’ Equity, (iv) Condensed Consolidated Statements of Cash Flows and (v) Condensed Notes to Consolidated Financial Statements.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*	Filed herewith.
**	The certifications attached as Exhibit 32.1 accompany this Quarterly Report on Form 10-Q pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not be deemed “filed” by the Registrant for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		VIPER ENERGY PARTNERS LP
		By:	VIPER ENERGY PARTNERS GP LLC
			its General Partner
Date:	May 3, 2023	By:	/s/ Travis D. Stice
			Travis D. Stice
			Chief Executive Officer
Date:	May 3, 2023	By:	/s/ Teresa L. Dick
			Teresa L. Dick
			Chief Financial Officer

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Travis D. Stice, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Viper Energy Partners LP (the “registrant”).

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2023	/s/ Travis D. Stice
		Travis D. Stice
		Chief Executive Officer
		Viper Energy Partners GP LLC
		(as general partner of Viper Energy Partners LP)

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Teresa L. Dick, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Viper Energy Partners LP (the “registrant”).

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2023	/s/ Teresa L. Dick
		Teresa L. Dick
		Chief Financial Officer
		Viper Energy Partners GP LLC
		(as general partner of Viper Energy Partners LP)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PERIOD REPORT

In connection with the Quarterly Report on Form 10-Q of Viper Energy Partners LP (the “Partnership”), as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Travis D. Stice, Chief Executive Officer of Viper Energy Partners GP LLC, the general partner of Viper Energy Partners LP, and Teresa L. Dick, Chief Financial Officer of Viper Energy Partners GP LLC, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to their knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

Date:	May 3, 2023	/s/ Travis D. Stice
		Travis D. Stice
		Chief Executive Officer
		Viper Energy Partners GP LLC
		(as general partner of Viper Energy Partners LP)
Date:	May 3, 2023	/s/ Teresa L. Dick
		Teresa L. Dick
		Chief Financial Officer
		Viper Energy Partners GP LLC
		(as general partner of Viper Energy Partners LP)

XML

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 28, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-36505
Entity Registrant Name	Viper Energy Partners LP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	46-5001985
Entity Address, Address Line One	500 West Texas Ave.
Entity Address, Address Line Two	Suite 100
Entity Address, City or Town	Midland,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	79701
City Area Code	432
Local Phone Number	221-7400
Title of 12(b) Security	Common Units
Trading Symbol	VNOM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001602065
Current Fiscal Year End Date	--12-31
Common Units
Document Information [Line Items]
Entity Common Units, Units Outstanding		72,016,622
Class B Units
Document Information [Line Items]
Entity Common Units, Units Outstanding		90,709,946

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 9,106	$ 18,179
Royalty income receivable (net of allowance for credit losses)	83,038	81,657
Royalty income receivable—related party	36,324	6,260
Derivative instruments	1,357	9,328
Other current assets	3,445	3,196
Total current assets	133,270	118,620
Property:
Oil and natural gas interests, full cost method of accounting ($1,262,269 and $1,297,221 excluded from depletion at March 31, 2023 and December 31, 2022, respectively)	3,582,601	3,464,819
Land	5,688	5,688
Accumulated depletion and impairment	(751,221)	(720,234)
Property, net	2,837,068	2,750,273
Derivative instruments	0	442
Deferred income taxes (net of allowances)	49,228	49,656
Other assets	170	1,382
Total assets	3,019,736	2,920,373
Current liabilities:
Accounts payable	436	1,129
Accounts payable—related party	0	306
Accrued liabilities	17,759	19,600
Derivative instruments	2,099	0
Income taxes payable	9,477	911
Total current liabilities	29,771	21,946
Long-term debt, net	695,154	576,895
Derivative instruments	2,383	7
Total liabilities	727,308	598,848
Commitments and contingencies
Unitholders’ equity:
General Partner	629	649
Common units (72,118,622 units issued and outstanding as of March 31, 2023 and 73,229,645 units issued and outstanding as of December 31, 2022)	666,259	689,178
Class B units (90,709,946 units issued and outstanding as of March 31, 2023 and December 31, 2022)	807	832
Total Viper Energy Partners LP unitholders’ equity	667,695	690,659
Non-controlling interest	1,624,733	1,630,866
Total equity	2,292,428	2,321,525
Total liabilities and unitholders’ equity	$ 3,019,736	$ 2,920,373

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Oil and natural gas interests, based on the full cost method of accounting, amount excluded from depletion	$ 1,262,269	$ 1,297,221
Common Units
Limited partners' capital account, units issued (in shares)	72,118,622	73,229,645
Limited partners' capital account, units outstanding (in shares)	72,118,622	73,229,645
Class B Units
Limited partners' capital account, units issued (in shares)	90,709,946	90,709,946
Limited partners' capital account, units outstanding (in shares)	90,709,946	90,709,946

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating income:
Royalty income	$ 161,085	$ 193,089
Other operating income	402	132
Total operating income	168,958	201,903
Costs and expenses:
Production and ad valorem taxes	12,887	13,870
Depletion	30,987	27,411
General and administrative expenses	2,764	1,953
Total costs and expenses	46,638	43,234
Income (loss) from operations	122,320	158,669
Other income (expense):
Interest expense, net	(9,686)	(9,645)
Gain (loss) on derivative instruments, net	(15,103)	(18,359)
Other income, net	141	6
Total other expense, net	(24,648)	(27,998)
Income (loss) before income taxes	97,672	130,671
Provision for (benefit from) income taxes	9,406	2,630
Net income (loss)	88,266	128,041
Net income (loss) attributable to non-controlling interest	54,299	111,436
Net income (loss) attributable to Viper Energy Partners LP	$ 33,967	$ 16,605
Net income (loss) attributable to common limited partner units:
Basic (dollars per unit)	$ 0.47	$ 0.22
Diluted (dollars per unit)	$ 0.47	$ 0.22
Weighted average number of common limited partner units outstanding:
Basic (in units)	72,732	77,106
Diluted (in units)	72,815	77,214
Revenue, Product and Service [Extensible Enumeration]	Royalty [Member]	Royalty [Member]
Related Party
Operating income:
Lease bonus	$ 7,071	$ 6,280
Nonrelated Party
Operating income:
Lease bonus	$ 400	$ 2,402

XML

Condensed Consolidated Statements of Changes to Unitholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Limited Partners	General Partner	Non-Controlling Interest	Common Units Limited Partners	Class B Units Limited Partners
Beginning balance (in shares) at Dec. 31, 2021					78,546	90,710
Beginning balance at Dec. 31, 2021	$ 2,232,828		$ 729	$ 1,418,007	$ 813,161	$ 931
Increase (Decrease) in Partners' Capital [Roll Forward]
Unit-based compensation	284				284
Distribution equivalent rights payments	(64)				(64)
Distributions to public	(35,830)				(35,830)
Distributions to Diamondback	(43,003)			(42,634)	(344)	$ (25)
Distributions to General Partner	(20)		(20)
Change in ownership of consolidated subsidiaries, net	0	$ 14,195		(14,195)	$ 14,195
Repurchased units as part of unit buyback (in shares)					(1,580)
Repurchased units as part of unit buyback	(39,260)				$ (39,260)
Net income (loss)	128,041			111,436	$ 16,605
Ending balance (in shares) at Mar. 31, 2022					76,966	90,710
Ending balance at Mar. 31, 2022	2,242,976		709	1,472,614	$ 768,747	$ 906
Beginning balance (in shares) at Dec. 31, 2022					73,230	90,710
Beginning balance at Dec. 31, 2022	2,321,525		649	1,630,866	$ 689,178	$ 832
Increase (Decrease) in Partners' Capital [Roll Forward]
Unit-based compensation	370				$ 370
Vesting of restricted stock units (shares)					4
Distribution equivalent rights payments	(72)				$ (72)
Distributions to public	(35,253)				(35,253)
Distributions to Diamondback	(49,366)			(48,983)	(358)	$ (25)
Distributions to General Partner	(20)		(20)
Change in ownership of consolidated subsidiaries, net	0	$ 11,449		(11,449)	$ 11,449
Repurchased units as part of unit buyback (in shares)					(1,115)
Repurchased units as part of unit buyback	(33,022)				$ (33,022)
Net income (loss)	88,266			54,299	$ 33,967
Ending balance (in shares) at Mar. 31, 2023					72,119	90,710
Ending balance at Mar. 31, 2023	$ 2,292,428		$ 629	$ 1,624,733	$ 666,259	$ 807

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income (loss)	$ 88,266	$ 128,041
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Provision for (benefit from) deferred income taxes	429	0
Depletion	30,987	27,411
(Gain) loss on derivative instruments, net	15,103	18,359
Net cash receipts (payments) on derivatives	(2,215)	(10,264)
Other	643	1,388
Changes in operating assets and liabilities:
Royalty income receivable	(1,381)	(29,932)
Royalty income receivable—related party	(30,064)	(2,048)
Accounts payable and accrued liabilities	(2,534)	2,838
Accounts payable—related party	(306)	0
Income tax payable	8,566	0
Other	(251)	45
Net cash provided by (used in) operating activities	107,243	135,838
Cash flows from investing activities:
Acquisitions of oil and natural gas interests—related party	(75,073)	0
Acquisitions of oil and natural gas interests	(40,802)	2,621
Proceeds from sale of oil and natural gas interests	(1,908)
Proceeds from sale of oil and natural gas interests		29,336
Other	1,200	0
Net cash provided by (used in) investing activities	(116,583)	31,957
Cash flows from financing activities:
Proceeds from borrowings under credit facility	118,000	44,000
Repayment on credit facility	0	(100,000)
Repurchased units as part of unit buyback	(33,022)	(39,260)
Distributions to public	(35,325)	(35,894)
Distributions to Diamondback	(49,366)	(43,003)
Other	(20)	(20)
Net cash provided by (used in) financing activities	267	(174,177)
Net increase (decrease) in cash and cash equivalents	(9,073)	(6,382)
Cash, cash equivalents and restricted cash at beginning of period	18,179	39,448
Cash, cash equivalents and restricted cash at end of period	$ 9,106	$ 33,066

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ORGANIZATION AND BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION AND BASIS OF PRESENTATION

ORGANIZATION AND BASIS OF PRESENTATION

Organization

Viper Energy Partners LP (the “Partnership”) is a publicly traded Delaware limited partnership focused on owning and acquiring mineral interests and royalty interests in oil and natural gas properties primarily in the Permian Basin.

As of March 31, 2023, Viper Energy Partners GP LLC (the “General Partner”) held a 100% general partner interest in the Partnership and Diamondback Energy, Inc. (“Diamondback”) beneficially owned approximately 56% of the Partnership’s total limited partner units outstanding. Diamondback owns and controls the General Partner.

Basis of Presentation

The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All material intercompany balances and transactions have been eliminated upon consolidation. We report our operations in one reportable segment.

These condensed consolidated financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2022, 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Certain amounts included in or affecting the Partnership’s financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts the Partnership reports for assets and liabilities and the Partnership’s disclosure of contingent assets and liabilities as of the date of the financial statements.

Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, the war in Ukraine, the COVID-19 pandemic, rising interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession, and measures to combat persistent inflation and instability in the financial sector have contributed to recent pricing and economic volatility. The financial results of companies in the oil and natural gas industry have been and may continue to be impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts.

The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each particular circumstance. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas interests, estimates of third party operated royalty income related to expected sales volumes and prices, the recoverability of costs of unevaluated properties, the fair value determination of assets and liabilities, including those acquired by the Partnership, fair value estimates of commodity derivatives and estimates of income taxes, including deferred tax valuation allowances.

Related Party Transactions

Royalty Income Receivable

As of March 31, 2023, Diamondback, either directly or through its consolidated subsidiaries, owed the Partnership $36.3 million compared to $6.3 million at December 31, 2022 for royalty income received from third parties for the Partnership’s production, which had not yet been remitted to the Partnership.

Lease Bonus Income

During the three months ended March 31, 2023 and 2022, Diamondback, either directly or through its consolidated subsidiaries, paid the Partnership $7.1 million and $6.3 million of lease bonus income primarily related to lease extensions and new leases in the Midland Basin.

See Note 4—Acquisitions and Divestitures for significant related party acquisitions of oil and natural gas interests. All other significant related party transactions with Diamondback or its affiliates have been stated on the face of the consolidated financial statements included elsewhere in this report as of March 31, 2023 and for the three months ended March 31, 2023 and 2022.

Accrued Liabilities

Accrued liabilities consist of the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Interest payable	$	10,405	$	3,972
Ad valorem taxes payable	5,146		12,492
Derivatives instruments payable	699		1,684
Other	1,509		1,452
Total accrued liabilities	$	17,759	$	19,600

Recent Accounting Pronouncements

Recently Adopted Pronouncements

There are no recently adopted pronouncements.

Accounting Pronouncements Not Yet Adopted

The Partnership considers the applicability and impact of all ASUs. There are no recent accounting pronouncements not yet adopted that are expected to have a material effect on the Partnership upon adoption, as applicable.

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REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained by the operator of the wells in which the Partnership owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Partnership’s contracts are tied to a market index.

The following table disaggregates the Partnership’s total royalty income by product type:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Oil income	$	136,619	$	155,051
Natural gas income	8,991		15,190
Natural gas liquids income	15,475		22,848
Total royalty income	$	161,085	$	193,089

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ACQUISITIONS AND DIVESTITURES

3 Months Ended

Mar. 31, 2023

Business Combinations And Divestitures [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

2023 Activity

Drop Down Transaction

On March 8, 2023, the Partnership completed the acquisition of certain mineral and royalty interests from subsidiaries of Diamondback for approximately $75.1 million in cash, subject to customary post-closing adjustments for net title benefits (the ‘‘Drop Down’’). The mineral and royalty interests acquired in the Drop Down represent approximately 660 net royalty acres in Ward County in the Southern Delaware Basin, 100% of which are operated by Diamondback, and have an average net royalty interest of approximately 7.2% and current production of approximately 300 BO/d, approximately 72% of which is from oil. The Partnership funded the Drop Down through a combination of cash on hand and borrowings under the Operating Company’s revolving credit facility. The Drop Down was accounted for as a transaction between entities under common control with the properties acquired recorded at Diamondback’s historical carrying value in the Partnership’s condensed consolidated balance sheet at March 31, 2023. The historical carrying value of the properties approximated the Drop Down purchase price.

Other Acquisitions

Additionally in the first quarter of 2023, the Partnership acquired, in individually insignificant transactions from unrelated third-party sellers, mineral and royalty interests representing 159 net royalty acres in the Permian Basin for an aggregate purchase price of approximately $40.7 million, subject to customary post-closing adjustments. The Partnership funded these acquisitions with cash on hand and borrowings under the Operating Company’s revolving credit facility.

2022 Activity

Acquisitions

During the year ended December 31, 2022, in individually insignificant transactions, the Partnership acquired from unrelated third-party sellers mineral and royalty interests representing 375 net royalty acres in the Permian Basin for an aggregate net purchase price of approximately $65.9 million, including certain customary post-closing adjustments. The Partnership funded these acquisitions with cash on hand and borrowings under the Operating Company’s revolving credit facility.

Divestitures

In the first quarter of 2022, the Partnership divested 325 net royalty acres of third party operated acreage located entirely in Upton and Reagan counties in the Midland Basin for an aggregate net sales price of $29.3 million, including customary closing adjustments.

In the third quarter of 2022, the Partnership divested 93 net royalty acres of third party operated acreage located entirely in Loving county in the Delaware Basin for an aggregate net sales price of $29.9 million, including customary closing adjustments.

In the fourth quarter of 2022, the Partnership divested its entire position in the Eagle Ford Shale consisting of 681 net royalty acres of third party operated acreage for an aggregate net sales price of $53.8 million, including customary closing adjustments.

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OIL AND NATURAL GAS INTERESTS

3 Months Ended

Mar. 31, 2023

Extractive Industries [Abstract]

OIL AND NATURAL GAS INTERESTS

OIL AND NATURAL GAS INTERESTS

Oil and natural gas interests include the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Oil and natural gas interests:
Subject to depletion	$	2,320,332	$	2,167,598
Not subject to depletion	1,262,269		1,297,221
Gross oil and natural gas interests	3,582,601		3,464,819
Accumulated depletion and impairment	(751,221)		(720,234)
Oil and natural gas interests, net	2,831,380		2,744,585
Land	5,688		5,688
Property, net of accumulated depletion and impairment	$	2,837,068	$	2,750,273

As of March 31, 2023 and December 31, 2022, the Partnership had mineral and royalty interests representing 27,134 and 26,315 net royalty acres, respectively.

No impairment expense was recorded on the Partnership’s oil and natural gas interests for the three months ended March 31, 2023 and 2022 based on the results of the respective quarterly ceiling tests. In addition to commodity prices, the Partnership’s production rates, levels of proved reserves, transfers of unevaluated properties and other factors will determine its actual ceiling test limitations and impairment analysis in future periods. If the trailing 12-month commodity prices decline as compared to the commodity prices used in prior quarters, the Partnership may have material write-downs in subsequent quarters.

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DEBT

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

DEBT

DEBT

Long-term debt consisted of the following as of the dates indicated:

	March 31,		December 31,
	2023		2022
	(In thousands)
5.375% senior unsecured notes due 2027	$	430,350	$	430,350
Revolving credit facility	270,000		152,000
Unamortized debt issuance costs	(1,239)		(1,306)
Unamortized discount	(3,957)		(4,149)
Total long-term debt	$	695,154	$	576,895

The Operating Company’s Revolving Credit Facility

The Operating Company’s credit agreement, as amended to date, provides for a revolving credit facility in the maximum credit amount of $2.0 billion and a borrowing base of $580.0 million based on the Operating Company’s oil and natural gas reserves and other factors. The borrowing base is scheduled to be redetermined semi-annually in May and November. As of March 31, 2023, the Operating Company had elected a commitment amount of $500.0 million, with $270.0 million of outstanding borrowings and $230.0 million available for future borrowings. During the three months ended March 31, 2023 and 2022, the weighted average interest rates on the Operating Company’s revolving credit facility were 6.10% and 2.58%, respectively. The revolving credit facility will mature on June 2, 2025.

As of March 31, 2023, the Operating Company was in compliance with the financial maintenance covenants under its credit agreement.

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UNITHOLDERS’ EQUITY AND DISTRIBUTIONS

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

UNITHOLDERS’ EQUITY AND DISTRIBUTIONS

UNITHOLDERS’ EQUITY AND DISTRIBUTIONS

The Partnership has General Partner and limited partner units. At March 31, 2023, the Partnership had a total of 72,118,622 common units issued and outstanding and 90,709,946 Class B units issued and outstanding, of which 731,500 common units and 90,709,946 Class B units were beneficially owned by Diamondback, representing approximately 56% of the Partnership’s total units outstanding. At March 31, 2023, Diamondback also beneficially owns 90,709,946 Operating Company units, representing a 56% non-controlling ownership interest in the Operating Company. The Operating Company units and the Partnership’s Class B units beneficially owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit).

Common Unit Repurchase Program

The board of directors of the Partnership’s General Partner has approved a common unit repurchase program to acquire up to $750.0 million of the Partnership’s outstanding common units, excluding excise tax, over an indefinite period of time. The Partnership intends to purchase common units under the repurchase program opportunistically with funds from cash on hand, free cash flow from operations and potential liquidity events such as the sale of assets. This repurchase program may be suspended from time to time, modified, extended or discontinued by the board of directors of the Partnership’s General Partner at any time. During the three months ended March 31, 2023 and 2022, the Partnership repurchased approximately $32.7 million, excluding excise tax, and $39.3 million of common units under the repurchase program, respectively. Repurchases for the three months ended March 31, 2022 include approximately $37.3 million for the repurchase of 1.5 million common units from a significant unitholder in a privately negotiated transaction in the first quarter of 2022. As of March 31, 2023, $496.7 million remains available under the repurchase program, excluding excise tax.

Cash Distributions on Common Units

Effective with the Partnership’s distribution payable for the third quarter of 2022, the board of directors of the General Partner approved a distribution policy consisting of a base and variable distribution, that takes into account capital returned to unitholders via our common unit repurchase program. For a detailed description of the Partnership’s and the Operating Company’s distribution policy, see Note 7—Unitholders’ Equity and Distributions—Cash Distributions in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022.

The percentage of cash available for distribution pursuant to the distribution policy may change quarterly to enable the Operating Company to retain cash flow to help strengthen the Partnership’s balance sheet while also expanding the return of capital program through the Partnership’s common unit repurchase program. The Partnership is not required to pay distributions to its common unitholders on a quarterly or other basis.

The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented (in thousands, except for per share amounts):

Period	Amount per Operating Company Unit		Operating Company Distributions to Diamondback		Amount per Common Unit		Distributions to Common Unitholders(1)		Declaration Date	Unitholder Record Date	Payment Date
Q4 2022	$	0.54	$	48,983	$	0.49	$	35,683	February 15, 2023	March 3, 2023	March 10, 2023

(1)Includes amounts paid to Diamondback for the 731,500 common units beneficially owned by Diamondback and distribution equivalent rights payments.

Cash distributions will be made to the common unitholders of record on the applicable record date, generally within 60 days after the end of each quarter.

Change in Ownership of Consolidated Subsidiaries

Non-controlling interest in the accompanying condensed consolidated financial statements represents Diamondback’s ownership in the net assets of the Operating Company. Diamondback’s relative ownership interest in the Operating Company can change due to the Partnership’s public offerings, issuance of units for acquisitions, issuance of unit-based compensation, repurchases of common units and distribution equivalent rights paid on the Partnership’s units. These changes in ownership percentage and the disproportionate allocation of net income (loss) to Diamondback discussed below result in adjustments to non-controlling interest and common unitholder equity, tax effected, but do not impact earnings. The following table summarizes the changes in common unitholder equity due to changes in ownership interest during the period:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Net income (loss) attributable to the Partnership	$	33,967	$	16,605
Change in ownership of consolidated subsidiaries	11,449		14,195
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest	$	45,416	$	30,800

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EARNINGS PER COMMON UNIT

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

EARNINGS PER COMMON UNIT

EARNINGS PER COMMON UNIT

The net income (loss) per common unit on the condensed consolidated statements of operations is based on the net income (loss) attributable to the Partnership’s common units for the three months ended March 31, 2023 and 2022. The Partnership’s net income (loss) 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 net income (loss) per common unit is calculated by dividing net income (loss) by the weighted-average number of common units outstanding during the period. Diluted net income (loss) per common unit gives effect, when applicable, to unvested common units granted under the LTIP.

A reconciliation of the components of basic and diluted earnings per common unit is presented in the table below:

	Three Months Ended March 31,
	2023		2022
	(In thousands, except per unit amounts)
Net income (loss) attributable to the period	$	33,967	$	16,605
Less: distributed and undistributed earnings allocated to participating securities(1)	72		64
Net income (loss) attributable to common unitholders	$	33,895	$	16,541
Weighted average common units outstanding:
Basic weighted average common units outstanding	72,732		77,106
Effect of dilutive securities:
Potential common units issuable(2)	83		108
Diluted weighted average common units outstanding	72,815		77,214
Net income (loss) per common unit, basic	$	0.47	$	0.22
Net income (loss) per common unit, diluted	$	0.47	$	0.22

(1)    Unvested restricted stock units that contain non-forfeitable distribution equivalent rights granted are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method.

(2)    For the three months ended March 31, 2023 and 2022, there were no potential common units excluded from the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive.

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INCOME TAXES

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the dates indicated:

	Three Months Ended March 31,
	2023			2022
	(In thousands, except for tax rate)
Provision for (benefit from) income taxes	$	9,406		$	2,630
Effective tax rate	9.6		%	2.0		%

The Partnership’s effective income tax rate for the three months ended March 31, 2023 differed from the amount 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. The Partnership’s effective income tax rate for the three months ended March 31, 2022 differed from the amount computed by applying the United States federal statutory tax rate to pre-tax income for the period primarily due to net income attributable to the non-controlling interest and the impact of maintaining a valuation allowance on the Partnership’s deferred tax assets.

As of March 31, 2023, the Partnership maintained a partial valuation allowance against its deferred tax assets considered not more likely than not to be realized, based on its assessment of all available evidence, both positive and negative, as required by applicable accounting standards.

As of March 31, 2022, the Partnership had a full valuation allowance against its deferred tax assets, based on its assessment of all available evidence, both positive and negative, supporting realizability of the Partnership’s deferred tax assets.

The Inflation Reduction Act of 2022 (“IRA”) was enacted on August 16, 2022, which imposes an excise tax of 1% on the fair market value of certain public company stock/unit repurchases for tax years beginning after December 31, 2022, and included several other provisions applicable to U.S. income taxes for corporations. The Partnership’s excise tax during the three months ended March 31, 2023 was immaterial and is recognized as part of the cost basis of the units repurchased.

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DERIVATIVES

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVES

DERIVATIVES

All derivative financial instruments are recorded at fair value. The Partnership has not designated its derivative instruments as hedges for accounting purposes and, as a result, marks its derivative instruments to fair value and recognizes the cash and non-cash changes in fair value in the condensed consolidated statements of operations under the caption “Gain (loss) on derivative instruments, net.”

Commodity Contracts

The Partnership historically has used fixed price swap contracts, fixed price basis swap contracts and costless collars with corresponding put and call options to reduce price volatility associated with certain of its royalty income. At March 31, 2023, the Partnership has put options and fixed price basis swaps outstanding.

The Partnership’s derivative contracts are based upon reported settlement prices on commodity exchanges, with put contracts for oil based on New York Mercantile Exchange West Texas Intermediate pricing (“Cushing WTI”) and fixed price basis swaps for oil based on the spread between the Cushing WTI crude oil price and the Midland WTI crude oil price. The Partnership’s fixed price basis swaps for natural gas are for the spread between the Waha Hub natural gas price and the New York Mercantile Exchange Henry Hub natural gas price. The weighted average differential represents the amount of reduction to the Cushing WTI oil price and the Waha Hub natural gas price for the notional volumes covered by the basis swap contracts.

By using derivative instruments to economically hedge exposure to changes in commodity prices, the Partnership exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Partnership, which creates credit risk. The Partnership’s counterparties are all participants in the amended and restated credit agreement, which is secured by substantially all of the assets of the Operating Company; therefore, the Partnership is not required to post any collateral. The Partnership’s counterparties have been determined to have an acceptable credit risk; therefore, the Partnership does not require collateral from its counterparties.

As of March 31, 2023, the Partnership had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.

					Swaps	Puts
Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Weighted Average Differential	Strike Price	Deferred Premium
OIL
Apr. - Jun.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.82
Jul. - Sep.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.80
Oct. - Dec.	2023	Puts	4,000	WTI Cushing	$—	$55.00	$1.86
Apr. - Dec.	2023	Basis Swaps	4,000	Argus WTI Midland	$1.05	$—	$—
NATURAL GAS
Apr. - Dec.	2023	Basis Swaps	30,000	Waha Hub	$(1.33)	$—	$—
Jan. - Dec.	2024	Basis Swaps	30,000	Waha Hub	$(1.20)	$—	$—

Balance Sheet Offsetting of Derivative Assets and Liabilities

The fair value of derivative instruments is generally determined using established index prices and other sources which are based upon, among other things, futures prices and time to maturity. These fair values are recorded by netting asset and liability positions, including any deferred premiums, that are with the same counterparty and are subject to contractual terms which provide for net settlement. See Note 11—Fair Value Measurements for further details.

Gains and Losses on Derivative Instruments

The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations and the net cash receipts (payments) on derivatives for the periods presented:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Gain (loss) on derivative instruments	$	(15,103)	$	(18,359)
Net cash receipts (payments) on derivatives(1)	$	(2,215)	$	(10,264)

(1)The three months ended March 31, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $4.2 million.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As discussed in Note 11—Fair Value Measurements in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022, certain assets and liabilities are reported at fair value on a recurring basis on the Partnership’s condensed consolidated balance sheets, including the Partnership’s derivative instruments. The fair values of the Partnership’s derivative contracts are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs in the fair value hierarchy. The net amounts are classified as current or noncurrent based on their anticipated settlement dates.

The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	5,072	$	—	$	5,072	$	(3,715)	$	1,357
Liabilities:
Current:
Derivative instruments	$	—	$	5,814	$	—	$	5,814	$	(3,715)	$	2,099
Non-current:
Derivative instruments	$	—	$	2,383	$	—	$	2,383	$	—	$	2,383

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	13,296	$	—	$	13,296	$	(3,968)	$	9,328
Non-current:
Derivative instruments	—		1,911		—		1,911		(1,469)		442
Liabilities:
Current:
Derivative instruments	$	—	$	3,968	$	—	$	3,968	$	(3,968)	$	—
Non-current:
Derivative instruments	$	—	$	1,476	$	—	$	1,476	$	(1,469)	$	7

Assets and Liabilities Not Recorded at Fair Value

The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets:

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Debt:
Revolving credit facility	$	270,000	$	270,000	$	152,000	$	152,000
5.375% senior notes due 2027(1)	$	425,154	$	416,041	$	424,895	$	411,634

(1) The carrying value includes associated deferred loan costs and any discount.

The fair value of the Operating Company’s revolving credit facility approximates the carrying value based on borrowing rates available to the Partnership for bank loans with similar terms and maturities and is classified as Level 2 in the fair value hierarchy. The fair value of the Notes was determined using the March 31, 2023 quoted market price, a Level 1 classification in the fair value hierarchy.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis in certain circumstances. These assets and liabilities can include mineral and royalty interests acquired in asset acquisitions and subsequent write-downs of our proved oil and natural gas interests to fair value when they are impaired or held for sale.

Fair Value of Financial Assets

The Partnership has other financial instruments consisting of cash and cash equivalents, royalty income receivable, other current assets, accounts payable, accrued liabilities and income taxes payable. The carrying value of these instruments approximate their fair value because of the short-term nature of the instruments.

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COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIESThe Partnership is a party to various routine legal proceedings, disputes and claims from time to time arising in the ordinary course of its business. While the ultimate outcome of the pending proceedings, disputes or claims, and any resulting impact on the Partnership, cannot be predicted with certainty, the Partnership’s management believes that none of these matters, if ultimately decided adversely, will have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows. The Partnership’s assessment is based on information known about the pending matters and its experience in contesting, litigating and settling similar matters. Actual outcomes could differ materially from the Partnership’s assessment. The Partnership records reserves for contingencies related to outstanding legal proceedings, disputes or claims when information available indicates that a loss is probable and the amount of the loss can be reasonably estimated.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2023

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Cash Distribution

On April 26, 2023, the board of directors of the General Partner approved a cash distribution for the first quarter of 2023 of $0.33 per common unit, payable on May 18, 2023, to eligible unitholders of record at the close of business on May 11, 2023. The distribution consists of a base quarterly distribution of $0.25 per common unit and a variable quarterly distribution of $0.08 per common unit.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated financial statements and related notes thereto were prepared in accordance with GAAP. All material intercompany balances and transactions have been eliminated upon consolidation. We report our operations in one reportable segment.

These condensed consolidated financial statements have been prepared by the Partnership without audit, pursuant to the rules and regulations of the SEC. They reflect all adjustments that are, in the opinion of management, necessary for a fair statement of the results for interim periods, on a basis consistent with the annual audited financial statements. All such adjustments are of a normal recurring nature. Certain information, accounting policies and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to SEC rules and regulations, although the Partnership believes the disclosures are adequate to make the information presented not misleading. This report should be read in conjunction with the Partnership’s most recent Annual Report on Form 10–K for the fiscal year ended December 31, 2022, which contains a summary of the Partnership’s significant accounting policies and other disclosures.

Reclassifications

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period financial statement presentation. These reclassifications had no effect on the previously reported total assets, total liabilities, unitholders’ equity, results of operations or cash flows.

Use of Estimates

Use of Estimates

Certain amounts included in or affecting the Partnership’s financial statements and related disclosures must be estimated by management, requiring certain assumptions to be made with respect to values or conditions that cannot be known with certainty at the time the financial statements are prepared. These estimates and assumptions affect the amounts the Partnership reports for assets and liabilities and the Partnership’s disclosure of contingent assets and liabilities as of the date of the financial statements.

Making accurate estimates and assumptions is particularly difficult in the oil and natural gas industry given the challenges resulting from volatility in oil and natural gas prices. For instance, the war in Ukraine, the COVID-19 pandemic, rising interest rates, global supply chain disruptions, concerns about a potential economic downturn or recession, and measures to combat persistent inflation and instability in the financial sector have contributed to recent pricing and economic volatility. The financial results of companies in the oil and natural gas industry have been and may continue to be impacted materially as a result of changing market conditions. Such circumstances generally increase uncertainty in the Partnership’s accounting estimates, particularly those involving financial forecasts.

The Partnership evaluates these estimates on an ongoing basis, using historical experience, consultation with experts and other methods the Partnership considers reasonable in each particular circumstance. Nevertheless, actual results may differ significantly from the Partnership’s estimates. Any effects on the Partnership’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. Significant items subject to such estimates and assumptions include estimates of proved oil and natural gas reserves and related present value estimates of future net cash flows therefrom, the carrying value of oil and natural gas interests, estimates of third party operated royalty income related to expected sales volumes and prices, the recoverability of costs of unevaluated properties, the fair value determination of assets and liabilities, including those acquired by the Partnership, fair value estimates of commodity derivatives and estimates of income taxes, including deferred tax valuation allowances.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Recently Adopted Pronouncements

There are no recently adopted pronouncements.

Accounting Pronouncements Not Yet Adopted

The Partnership considers the applicability and impact of all ASUs. There are no recent accounting pronouncements not yet adopted that are expected to have a material effect on the Partnership upon adoption, as applicable.

Revenue from Contracts with Customers

Royalty income represents the right to receive revenues from oil, natural gas and natural gas liquids sales obtained by the operator of the wells in which the Partnership owns a royalty interest. Royalty income is recognized at the point control of the product is transferred to the purchaser at the wellhead or at the gas processing facility based on the Partnership’s percentage ownership share of the revenue, net of any deductions for gathering and transportation. Virtually all of the pricing provisions in the Partnership’s contracts are tied to a market index.

Fair Value Measurement

Assets and Liabilities Measured at Fair Value on a Recurring Basis

As discussed in Note 11—Fair Value Measurements in the Partnership's Annual Report on Form 10-K for the year ended December 31, 2022, certain assets and liabilities are reported at fair value on a recurring basis on the Partnership’s condensed consolidated balance sheets, including the Partnership’s derivative instruments. The fair values of the Partnership’s derivative contracts are measured internally using established commodity futures price strips for the underlying commodity provided by a reputable third party, the contracted notional volumes, and time to maturity. These valuations are Level 2 inputs in the fair value hierarchy. The net amounts are classified as current or noncurrent based on their anticipated settlement dates.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Schedule of Accrued Liabilities

Accrued liabilities consist of the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Interest payable	$	10,405	$	3,972
Ad valorem taxes payable	5,146		12,492
Derivatives instruments payable	699		1,684
Other	1,509		1,452
Total accrued liabilities	$	17,759	$	19,600

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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

3 Months Ended

Mar. 31, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table disaggregates the Partnership’s total royalty income by product type:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Oil income	$	136,619	$	155,051
Natural gas income	8,991		15,190
Natural gas liquids income	15,475		22,848
Total royalty income	$	161,085	$	193,089

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OIL AND NATURAL GAS INTERESTS (Tables)

3 Months Ended

Mar. 31, 2023

Extractive Industries [Abstract]

Aggregate Capitalized Costs Related to Oil and Natural Gas Production Activities

Oil and natural gas interests include the following:

	March 31,		December 31,
	2023		2022
	(In thousands)
Oil and natural gas interests:
Subject to depletion	$	2,320,332	$	2,167,598
Not subject to depletion	1,262,269		1,297,221
Gross oil and natural gas interests	3,582,601		3,464,819
Accumulated depletion and impairment	(751,221)		(720,234)
Oil and natural gas interests, net	2,831,380		2,744,585
Land	5,688		5,688
Property, net of accumulated depletion and impairment	$	2,837,068	$	2,750,273

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DEBT (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Maturities of Long-Term Debt

Long-term debt consisted of the following as of the dates indicated:

	March 31,		December 31,
	2023		2022
	(In thousands)
5.375% senior unsecured notes due 2027	$	430,350	$	430,350
Revolving credit facility	270,000		152,000
Unamortized debt issuance costs	(1,239)		(1,306)
Unamortized discount	(3,957)		(4,149)
Total long-term debt	$	695,154	$	576,895

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UNITHOLDERS’ EQUITY AND DISTRIBUTIONS (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Schedule of Cash Distributions

The following table presents information regarding cash distributions approved by the board of directors of the General Partner for the periods presented (in thousands, except for per share amounts):

Period	Amount per Operating Company Unit		Operating Company Distributions to Diamondback		Amount per Common Unit		Distributions to Common Unitholders(1)		Declaration Date	Unitholder Record Date	Payment Date
Q4 2022	$	0.54	$	48,983	$	0.49	$	35,683	February 15, 2023	March 3, 2023	March 10, 2023

(1)Includes amounts paid to Diamondback for the 731,500 common units beneficially owned by Diamondback and distribution equivalent rights payments.

Schedule of Change in Ownership Interest

The following table summarizes the changes in common unitholder equity due to changes in ownership interest during the period:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Net income (loss) attributable to the Partnership	$	33,967	$	16,605
Change in ownership of consolidated subsidiaries	11,449		14,195
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest	$	45,416	$	30,800

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EARNINGS PER COMMON UNIT (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Net Income (Loss) 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 March 31,
	2023		2022
	(In thousands, except per unit amounts)
Net income (loss) attributable to the period	$	33,967	$	16,605
Less: distributed and undistributed earnings allocated to participating securities(1)	72		64
Net income (loss) attributable to common unitholders	$	33,895	$	16,541
Weighted average common units outstanding:
Basic weighted average common units outstanding	72,732		77,106
Effect of dilutive securities:
Potential common units issuable(2)	83		108
Diluted weighted average common units outstanding	72,815		77,214
Net income (loss) per common unit, basic	$	0.47	$	0.22
Net income (loss) per common unit, diluted	$	0.47	$	0.22

(1)    Unvested restricted stock units that contain non-forfeitable distribution equivalent rights granted are considered participating securities and therefore are included in the earnings per share calculation pursuant to the two-class method.

(2)    For the three months ended March 31, 2023 and 2022, there were no potential common units excluded from the computation of diluted earnings per common unit because their inclusion would have been anti-dilutive.

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The following table provides the Partnership’s provision for (benefit from) income taxes and the effective income tax rate for the dates indicated:

	Three Months Ended March 31,
	2023			2022
	(In thousands, except for tax rate)
Provision for (benefit from) income taxes	$	9,406		$	2,630
Effective tax rate	9.6		%	2.0		%

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DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of March 31, 2023, the Partnership had the following outstanding derivative contracts. When aggregating multiple contracts, the weighted average contract price is disclosed.

					Swaps	Puts
Settlement Month	Settlement Year	Type of Contract	Bbls/Mcf Per Day	Index	Weighted Average Differential	Strike Price	Deferred Premium
OIL
Apr. - Jun.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.82
Jul. - Sep.	2023	Puts	12,000	WTI Cushing	$—	$55.00	$1.80
Oct. - Dec.	2023	Puts	4,000	WTI Cushing	$—	$55.00	$1.86
Apr. - Dec.	2023	Basis Swaps	4,000	Argus WTI Midland	$1.05	$—	$—
NATURAL GAS
Apr. - Dec.	2023	Basis Swaps	30,000	Waha Hub	$(1.33)	$—	$—
Jan. - Dec.	2024	Basis Swaps	30,000	Waha Hub	$(1.20)	$—	$—

Summary of Derivative Contract Gains and Losses Included in the Consolidated Statements of Operations

The following table summarizes the gains and losses on derivative instruments included in the condensed consolidated statements of operations and the net cash receipts (payments) on derivatives for the periods presented:

	Three Months Ended March 31,
	2023		2022
	(In thousands)
Gain (loss) on derivative instruments	$	(15,103)	$	(18,359)
Net cash receipts (payments) on derivatives(1)	$	(2,215)	$	(10,264)

(1)The three months ended March 31, 2022 includes cash paid on commodity contracts terminated prior to their contractual maturity of $4.2 million.

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Consolidated Balance Sheets

The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	5,072	$	—	$	5,072	$	(3,715)	$	1,357
Liabilities:
Current:
Derivative instruments	$	—	$	5,814	$	—	$	5,814	$	(3,715)	$	2,099
Non-current:
Derivative instruments	$	—	$	2,383	$	—	$	2,383	$	—	$	2,383

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	13,296	$	—	$	13,296	$	(3,968)	$	9,328
Non-current:
Derivative instruments	—		1,911		—		1,911		(1,469)		442
Liabilities:
Current:
Derivative instruments	$	—	$	3,968	$	—	$	3,968	$	(3,968)	$	—
Non-current:
Derivative instruments	$	—	$	1,476	$	—	$	1,476	$	(1,469)	$	7

Offsetting Assets

The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	5,072	$	—	$	5,072	$	(3,715)	$	1,357
Liabilities:
Current:
Derivative instruments	$	—	$	5,814	$	—	$	5,814	$	(3,715)	$	2,099
Non-current:
Derivative instruments	$	—	$	2,383	$	—	$	2,383	$	—	$	2,383

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	13,296	$	—	$	13,296	$	(3,968)	$	9,328
Non-current:
Derivative instruments	—		1,911		—		1,911		(1,469)		442
Liabilities:
Current:
Derivative instruments	$	—	$	3,968	$	—	$	3,968	$	(3,968)	$	—
Non-current:
Derivative instruments	$	—	$	1,476	$	—	$	1,476	$	(1,469)	$	7

Offsetting Liabilities

The following table provides (i) fair value measurement information for financial assets and liabilities measured at fair value on a recurring basis, (ii) the gross amounts of recognized derivative assets and liabilities, (iii) the amounts offset under master netting arrangements with counterparties and (iv) the resulting net amounts presented in the Partnership’s condensed consolidated balance sheets as of March 31, 2023 and December 31, 2022:

	As of March 31, 2023
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	5,072	$	—	$	5,072	$	(3,715)	$	1,357
Liabilities:
Current:
Derivative instruments	$	—	$	5,814	$	—	$	5,814	$	(3,715)	$	2,099
Non-current:
Derivative instruments	$	—	$	2,383	$	—	$	2,383	$	—	$	2,383

	As of December 31, 2022
	Level 1		Level 2		Level 3		Total Gross Fair Value		Gross Amounts Offset in Balance Sheet		Net Fair Value Presented in Balance Sheet
	(In thousands)
Assets:
Current:
Derivative instruments	$	—	$	13,296	$	—	$	13,296	$	(3,968)	$	9,328
Non-current:
Derivative instruments	—		1,911		—		1,911		(1,469)		442
Liabilities:
Current:
Derivative instruments	$	—	$	3,968	$	—	$	3,968	$	(3,968)	$	—
Non-current:
Derivative instruments	$	—	$	1,476	$	—	$	1,476	$	(1,469)	$	7

Fair Value Measurements, Nonrecurring

The following table provides the fair value of financial instruments that are not recorded at fair value in the condensed consolidated balance sheets:

	March 31, 2023				December 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value
	(In thousands)
Debt:
Revolving credit facility	$	270,000	$	270,000	$	152,000	$	152,000
5.375% senior notes due 2027(1)	$	425,154	$	416,041	$	424,895	$	411,634

(1) The carrying value includes associated deferred loan costs and any discount.

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ORGANIZATION AND BASIS OF PRESENTATION (Details)	3 Months Ended
	Mar. 31, 2023 segment
Limited Partners' Capital Account [Line Items]
Number of reportable segments	1
Viper Energy Partners LP | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Percent of general partner interest	100.00%
Percent of limited partnership interest	56.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Affiliated Entity - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Royalty Income Receivable
Related Party Transaction [Line Items]
Due from affiliates	$ 36.3		$ 6.3
Midland Basin Lease Bonus Income
Related Party Transaction [Line Items]
Related party transaction, amounts of transaction	$ 7.1	$ 6.3

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Accrued Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Interest payable	$ 10,405	$ 3,972
Ad valorem taxes payable	5,146	12,492
Derivatives instruments payable	699	1,684
Other	1,509	1,452
Total accrued liabilities	$ 17,759	$ 19,600

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REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Royalty income	$ 161,085	$ 193,089
Oil income
Disaggregation of Revenue [Line Items]
Royalty income	136,619	155,051
Natural gas income
Disaggregation of Revenue [Line Items]
Royalty income	8,991	15,190
Natural gas liquids income
Disaggregation of Revenue [Line Items]
Royalty income	$ 15,475	$ 22,848

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ACQUISITIONS AND DIVESTITURES - Acquisitions (Details) $ in Millions		3 Months Ended	12 Months Ended
	Mar. 08, 2023 USD ($) a bbl	Mar. 31, 2023 USD ($) a	Dec. 31, 2022 USD ($) a
2023 Acquisition Permian Basin
Asset Acquisition [Line Items]
Aggregate purchase price | $		$ 40.7
Net royalty (acres) | a		159
2022 Acquisition Permian Basin
Asset Acquisition [Line Items]
Aggregate purchase price | $			$ 65.9
Net royalty (acres) | a			375
Drop Down Acquisition
Asset Acquisition [Line Items]
Aggregate purchase price | $	$ 75.1
Net royalty (acres) | a	660
Percentage of acreage acquired	100.00%
Average net royalty interest	7.20%
Oil production per day | bbl	300
Production of oil, rate	72.00%

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ACQUISITIONS AND DIVESTITURES - Divestitures (Details) - Discontinued Operations, Disposed of by Sale $ in Millions	3 Months Ended
	Dec. 31, 2022 USD ($) a	Sep. 30, 2022 USD ($) a	Mar. 31, 2022 USD ($) a
Midland Basin | Third Party Operated Acreage
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of land divested | a			325
Proceeds from sale of acres | $			$ 29.3
Delaware Basin | Third Party Operated Acreage
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of land divested | a		93
Proceeds from sale of acres | $		$ 29.9
Delaware Basin | Eagle Ford Shale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Area of land divested | a	681
Proceeds from sale of acres | $	$ 53.8

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OIL AND NATURAL GAS INTERESTS (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) a	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) a
Oil and natural gas interests:
Subject to depletion	$ 2,320,332,000		$ 2,167,598,000
Not subject to depletion	1,262,269,000		1,297,221,000
Gross oil and natural gas interests	3,582,601,000		3,464,819,000
Accumulated depletion and impairment	(751,221,000)		(720,234,000)
Oil and natural gas interests, net	2,831,380,000		2,744,585,000
Land	5,688,000		5,688,000
Property, net	$ 2,837,068,000		$ 2,750,273,000
Mineral properties, net royalty acres | a	27,134		26,315
Impairment	$ 0	$ 0

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DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Unamortized debt issuance costs	$ (1,239)	$ (1,306)
Unamortized discount	(3,957)	(4,149)
Total long-term debt	695,154	576,895
Revolving credit facility
Line of Credit Facility [Line Items]
Long term debt gross	$ 270,000	152,000
5.375 % Senior Notes due 2027 | Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage	5.375%
Long term debt gross	$ 430,350	$ 430,350

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DEBT - Narrative (Details) - Revolving credit facility - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 2,000,000,000
Credit facility borrowing base	580,000,000
Commitment amount	500,000,000
Debt outstanding	270,000,000
Credit facility remaining borrowing capacity	$ 230,000,000
Weighted average interest rate	6.10%	2.58%

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UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Limited Partners' Capital Account [Line Items]
Stock repurchased	$ 33,022,000	$ 39,260,000
Cash Distribution
Limited Partners' Capital Account [Line Items]
Cash distributions, period after end of each quarter	60 days
Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units outstanding (in shares)			731,500
Conversion of shares converted (in shares)	1
Viper Energy Partners LP | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Percent of limited partnership interest	56.00%
Ownership percentage by noncontrolling owners	56.00%
Common Units
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units issued (in shares)	72,118,622		73,229,645
Limited partners' capital account, units outstanding (in shares)	72,118,622		73,229,645
Conversion of shares, stock issued (in shares)	1
Common Units | Common Unit Repurchase Program
Limited Partners' Capital Account [Line Items]
Authorized amount	$ 750,000,000
Stock repurchased	32,700,000	39,300,000
Remaining authorized repurchase amount	$ 496,700,000
Common Units | Common Unit Repurchase Program | Affiliated Entity
Limited Partners' Capital Account [Line Items]
Stock repurchased		$ 37,300,000
Stock repurchased (in shares)		1,500,000
Common Units | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units issued (in shares)	731,500
Limited partners' capital account, units outstanding (in shares)	731,500
Class B Units
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units issued (in shares)	90,709,946		90,709,946
Limited partners' capital account, units outstanding (in shares)	90,709,946		90,709,946
Conversion of shares converted (in shares)	1
Class B Units | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units issued (in shares)	90,709,946
Limited partners' capital account, units outstanding (in shares)	90,709,946
Operating Company Units | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units outstanding (in shares)	90,709,946

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UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Partnership Distributions (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Feb. 15, 2023	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Limited Partners' Capital Account [Line Items]
Distributions		$ 35,253	$ 35,830
Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units outstanding (in shares)				731,500
Common Units
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units outstanding (in shares)		72,118,622		73,229,645
Common Units | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Limited partners' capital account, units outstanding (in shares)		731,500
Cash Distribution
Limited Partners' Capital Account [Line Items]
Cash distributions, amount per common unit (in USD per share)	$ 0.49
Cash Distribution | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Cash distributions, amount per common unit (in USD per share)	$ 0.54
Cash Distribution | Common Units
Limited Partners' Capital Account [Line Items]
Distributions	$ 35,683
Cash Distribution | Common Units | Diamondback Energy, Inc.
Limited Partners' Capital Account [Line Items]
Distributions	$ 48,983

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UNITHOLDERS’ EQUITY AND DISTRIBUTIONS - Ownership Interest in Subsidiary Changes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to the Partnership	$ 33,967	$ 16,605
Change in ownership of consolidated subsidiaries	0	0
Limited Partners
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to the Partnership	33,967	16,605
Change in ownership of consolidated subsidiaries	11,449	14,195
Change from net income (loss) attributable to the Partnership's unitholders and transfers to non-controlling interest	$ 45,416	$ 30,800

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EARNINGS PER COMMON UNIT (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income (loss) attributable to the period	$ 33,967	$ 16,605
Less: net income (loss) allocated to participating securities	72	64
Net income (loss) attributable to common unitholders	$ 33,895	$ 16,541
Weighted average common units outstanding:
Basic weighted average common units outstanding (in shares)	72,732,000	77,106,000
Effect of dilutive securities:
Potential common units issuable (in shares)	83,000	108,000
Diluted weighted average common units outstanding (in shares)	72,815,000	77,214,000
Net income (loss) per common unit, basic (in USD per share)	$ 0.47	$ 0.22
Net income (loss) per common unit, diluted (in USD per share)	$ 0.47	$ 0.22
Anti-dilutive for potentially dilute basic earnings per common unit (in shares)	0	0

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes	$ 9,406	$ 2,630
Effective tax rate	9.60%	2.00%

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DERIVATIVES - Open Derivative Positions (Details) bbl in Thousands, Mcf in Thousands	3 Months Ended
	Mar. 31, 2023 $ / bbl $ / MMBTU Mcf bbl
OIL | WTI Cushing | Puts | 2023 | Apr. - Jun.
Derivative [Line Items]
Volume | bbl	12
Weighted average differential (per Bbl)	0
Strike Price (USD per Bbl)	55.00
Deferred premium at a weighted average price (USD per Bbl)	1.82
OIL | WTI Cushing | Puts | 2023 | Jul. - Sep.
Derivative [Line Items]
Volume | bbl	12
Weighted average differential (per Bbl)	0
Strike Price (USD per Bbl)	55.00
Deferred premium at a weighted average price (USD per Bbl)	1.80
OIL | WTI Cushing | Puts | 2023 | Oct. - Dec.
Derivative [Line Items]
Volume | bbl	4
Weighted average differential (per Bbl)	0
Strike Price (USD per Bbl)	55.00
Deferred premium at a weighted average price (USD per Bbl)	1.86
OIL | Argus WTI Midland | Basis Swap | 2023 | Apr. - Dec.
Derivative [Line Items]
Volume | bbl	4
Weighted average differential (per Bbl)	1.05
Strike Price (USD per Bbl)	0
Deferred premium at a weighted average price (USD per Bbl)	0
NATURAL GAS | Waha Hub | Basis Swap | 2023 | Apr. - Dec.
Derivative [Line Items]
Volume | Mcf	30
Weighted average differential (per Bbl) | $ / MMBTU	(1.33)
Strike Price (USD per Bbl)	0
Deferred premium at a weighted average price (USD per Bbl)	0
NATURAL GAS | Waha Hub | Basis Swap | 2024 | Jan. - Dec.
Derivative [Line Items]
Volume | Mcf	30
Weighted average differential (per Bbl)	(1.20)
Strike Price (USD per Bbl)	0
Deferred premium at a weighted average price (USD per Bbl)	0

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DERIVATIVES - Gains and Losses on Derivative Instruments Included in Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain (loss) on derivative instruments	$ (15,103)	$ (18,359)
Net cash receipts (payments) on derivatives	$ (2,215)	(10,264)
Cash paid on commodity contract		$ 4,200

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FAIR VALUE MEASUREMENTS - Recurring Measurements (Details) - Fair Value, Recurring - Derivative instruments - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Assets:
Total Gross Fair Value	$ 5,072	$ 13,296
Gross Amounts Offset in Balance Sheet	(3,715)	(3,968)
Net Fair Value Presented in Balance Sheet	1,357	9,328
Noncurrent Assets
Assets:
Total Gross Fair Value		1,911
Gross Amounts Offset in Balance Sheet		(1,469)
Net Fair Value Presented in Balance Sheet		442
Current Liabilities
Liabilities:
Total Gross Fair Value	5,814	3,968
Gross Amounts Offset in Balance Sheet	(3,715)	(3,968)
Net Fair Value Presented in Balance Sheet	2,099	0
Noncurrent Liabilities
Liabilities:
Total Gross Fair Value	2,383	1,476
Gross Amounts Offset in Balance Sheet	0	(1,469)
Net Fair Value Presented in Balance Sheet	2,383	7
Level 1 | Current Assets
Assets:
Total Gross Fair Value	0	0
Level 1 | Noncurrent Assets
Assets:
Total Gross Fair Value		0
Level 1 | Current Liabilities
Liabilities:
Total Gross Fair Value	0	0
Level 1 | Noncurrent Liabilities
Liabilities:
Total Gross Fair Value	0	0
Level 2 | Current Assets
Assets:
Total Gross Fair Value	5,072	13,296
Level 2 | Noncurrent Assets
Assets:
Total Gross Fair Value		1,911
Level 2 | Current Liabilities
Liabilities:
Total Gross Fair Value	5,814	3,968
Level 2 | Noncurrent Liabilities
Liabilities:
Total Gross Fair Value	2,383	1,476
Level 3 | Current Assets
Assets:
Total Gross Fair Value	0	0
Level 3 | Noncurrent Assets
Assets:
Total Gross Fair Value		0
Level 3 | Current Liabilities
Liabilities:
Total Gross Fair Value	0	0
Level 3 | Noncurrent Liabilities
Liabilities:
Total Gross Fair Value	$ 0	$ 0

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FAIR VALUE MEASUREMENTS - Fair Value of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
5.375% senior notes due 2027 | Senior Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, interest rate, stated percentage	5.375%
Carrying Value | Fair Value, Nonrecurring | 5.375% senior notes due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 425,154	$ 424,895
Carrying Value | Fair Value, Nonrecurring | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	270,000	152,000
Fair Value | Fair Value, Nonrecurring | 5.375% senior notes due 2027
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	416,041	411,634
Fair Value | Fair Value, Nonrecurring | Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt	$ 270,000	$ 152,000

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SUBSEQUENT EVENTS (Details) - $ / shares	Apr. 26, 2023	Feb. 15, 2023
Cash Distribution
Subsequent Event [Line Items]
Cash distributions, amount per common unit (in USD per share)		$ 0.49
Subsequent Event | Cash Distribution
Subsequent Event [Line Items]
Cash distributions, amount per common unit (in USD per share)	$ 0.33
Subsequent Event | Fixed Dividend
Subsequent Event [Line Items]
Dividends payable (usd per share)	0.25
Subsequent Event | Variable Dividend
Subsequent Event [Line Items]
Dividends payable (usd per share)	$ 0.08