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VIPER Energy Partners Viper Energy Partners LP , A Subsidiary of Diamondback Energy , Inc. , Reports First Quarter 2021 Financial and Operating Results May 3 , 2021 MIDLAND , Tx . , May 03 , 2021 ( GLOBE NEWSWIRE ) -- Viper Energy Partners LP ( NASDAQ : VNOM ) ( " Viper " or the " Company " ) , a subsidiary of Diamondback Energy , Inc. ( NASDAQ : FANG ) ( " Diamondback ” ) , today announced financial and operating results for the first quarter ended March 31 , 2021 . FIRST QUARTER HIGHLIGHTS . Previously announced Q1 2021 average production of 15,500 bo / d ( 26,066 boe / d ) • Q1 2021 cash distribution of $ 0.25 per common unit , representing approximately 60 % of cash available for distribution ; $ 0.42 per unit of cash available for distribution implies a 9.3 % annualized distributable cash flow yield based on the April 30 , 2021 unit closing price of $ 18.01 • Q1 2021 consolidated net income ( including non - controlling interest ) of $ 23.9 million ; adjusted net income ( as defined and reconciled below ) of $ 40.4 million • Consolidated adjusted EBITDA ( as defined and reconciled below ) of $ 73.5 million and cash available for distribution to Viper's common units ( as reconciled below ) of $ 27.6 million • Repurchased 869,965 common units in Q1 2021 for an aggregate of $ 13.0 million • Ended the first quarter of 2021 with net debt of $ 525.2 million ( as defined and reconciled below ) ; total debt down $ 136.6 million since March 31 , 2020 , or an approximately 20 % reduction over the past twelve months • 134 total gross ( 2.5 net 100 % royalty interest ) horizontal wells turned to production on Viper's acreage during Q1 2021 with an average lateral length of 10,584 feet • Initiating average daily production guidance for Q2 2021 and Q3 2021 of 15,000 to 16,000 bo / d ( 25,000 to 26,500 boe / d ) • Increasing full year 2021 average daily production guidance to 15,000 to 16,250 bo / d ( 25,000 to 27,000 boe / d ) • As of April 12 , 2021 , there were approximately 471 gross horizontal wells in the process of active development on Viper's acreage , in which Viper expects to own an average 1.8 % net royalty interest ( 8.7 net 100 % royalty interest wells ) • Approximately 490 gross ( 8.7 net 100 % royalty interest ) line - of - sight wells that are not currently in the process of active development , but for which Viper has visibility to the potential of future development in coming quarters , based on Diamondback's current completion schedule and third party operators ' permits • Q4 2020 and Q1 2021 distributions reasonably estimated to not constitute dividends for U.S. federal income tax purposes ; instead should generally constitute non - taxable reductions to the tax basis " Viper produced a strong first quarter with both production and realized pricing exceeding expectations and , as a result , generated almost $ 55 million in net cash from operating activities . This strong cash flow generation , enhanced by our best - in - class cost structure , enabled us to reduce debt by $ 27 million during the quarter . We have now reduced total debt by over $ 136 million , or roughly 20 % , over the past twelve months . As a direct result of this , and further supported by our confidence in our forward outlook , we are increasing our distribution to common unitholders to 60 % of cash available for distribution for the first quarter of 2021 , which continues to be supplemented by additional return of capital through our common unit repurchase program , " stated Travis Stice , Chief Executive Officer of Viper's General Partner . Mr. Stice continued , “ In addition to increasing our distribution for the first quarter , Viper is also increasing its production outlook for the full year 2021 . Our visibility into Diamondback's expected forward development plan , which includes several large pads where Viper will own a significant royalty interest , underscores our confidence in this increased outlook as well as our ability to continue to generate meaningful free cash flow . " FINANCIAL UPDATE Viper's first quarter 2021 average unhedged realized prices were $ 56.16 per barrel of oil , $ 2.77 per Mcf of natural gas and $ 22.42 per barrel of natural gas liquids , resulting in a total equivalent realized price of $ 41.14 / boe . During the first quarter of 2021 , the Company recorded total operating income of $ 97.0 million and consolidated net income ( including non - controlling interest ) of $ 23.9 million . As of March 31 , 2021 , the Company had a cash balance of $ 11.7 million . During the first quarter of 2021 , Viper repaid $ 27.0 million of outstanding borrowings under its revolving credit facility and , as of March 31 , 2021 , had $ 523.0 million available for borrowing under this facility . Since the end of the first quarter of 2020 , Viper reduced total debt by $ 136.6 million , or an approximately 20 % reduction over this time period . FIRST QUARTER 2021 CASH DISTRIBUTION & CAPITAL RETURN PROGRAM The Board of Directors of Viper's General Partner declared a cash distribution for the three months ended March 31 , 2021 of $ 0.25 per common unit . The distribution is payable on May 20 , 2021 to eligible common unitholders of record at the close of business on May 13 , 2021. This distribution represents approximately 60 % of total cash available for distribution .