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VIPER Energy Partners Viper Energy Partners LP , a Subsidiary of Diamondback Energy , Inc. , Reports Second Quarter 2021 Financial and Operating Results August 2 , 2021 MIDLAND , Texas , Aug. 02 , 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 second quarter ended June 30 , 2021 . SECOND QUARTER HIGHLIGHTS • Q2 2021 average production of 16,516 bo / d ( 27,352 boe / d ) • Q2 2021 consolidated net income ( including non - controlling interest ) of $ 42.4 million ; adjusted net income ( as defined and reconciled below ) of $ 51.0 million • Q2 2021 cash distribution of $ 0.33 per common unit , representing approximately 70 % of total cash available for distribution of $ 0.47 per common unit ; $ 0.33 distribution implies a 7.3 % annualized yield based on the July 30 , 2021 unit closing price of $ 18.01 • Consolidated adjusted EBITDA ( as defined and reconciled below ) of $ 83.3 million and cash available for distribution to Viper's common units ( as reconciled below ) of $ 30.3 million • Repurchased 403,163 common units in Q2 2021 for an aggregate of $ 6.8 million ; from the end of the second quarter through July 30 , 2021 , Viper repurchased an additional 294,921 common units for an aggregate of $ 5.1 million • Ended the second quarter of 2021 with total long - term debt of $ 541.9 and net debt of $ 499.5 million ( as defined and reconciled below ) ; net debt down $ 130.3 million since June 30 , 2020 , or an approximately 21 % reduction over the past twelve months • 184 total gross ( 3.3 net 100 % royalty interest ) horizontal wells turned to production on Viper's acreage during Q2 2021 with an average lateral length of 8,638 feet • Initiating average daily production guidance for the second half of 2021 of 15,500 to 16,250 bo / d ( 25,750 to 27,000 boe / d ) • Increasing full year 2021 average daily production guidance to 15,750 to 16,250 bo / d ( 26,250 to 27,000 boe / d ) , an increase of approximately 2 % at the midpoint • As of July 12 , 2021 , there were approximately 467 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 ( 8.3 net 100 % royalty interest wells ) • Approximately 496 gross ( 7.2 net 100 % royalty interest ) line - of - sight wells on Viper's acreage 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 • A portion of distributions paid in 2021 are reasonably estimated to not constitute dividends for U.S. federal income tax purposes . Approximately 80 % are estimated to constitute non - taxable reductions to tax basis . " Viper's production during the second quarter was supported by concentrated exposure to Diamondback's Midland Basin development plan , as well as increasing activity from third party operators . As a result of this strong production , and enhanced by our best - in - class cost structure , Viper generated over $ 75 million in net cash from operating activities during the quarter . This strong cash flow generation , and the resulting continued decrease in net debt , has enabled Viper to increase our distribution to common unitholders to 70 % of cash available for distribution . This increase in our distribution marks the second consecutive quarter of increasing return of capital to unitholders , and the $ 0.33 per common unit distribution represents a 32 % increase from the first quarter distribution , " stated Travis Stice , Chief Executive Officer of Viper's General Partner . Mr. Stice continued , " Looking ahead , Viper has increased its production outlook for 2021 and continues to maintain visibility into Diamondback's expected forward development plan that includes several large pads where Viper will own a significant royalty interest . With the balance sheet in strong shape and the current distribution representing a greater than 7 % yield , Viper plans to retain 30 % of its cash flow during the coming quarters to focus primarily on acquiring additional royalty interests that are operated by Diamondback as well as continuing to repurchase common units under our repurchase program approved by the Board . Viper's acquisition strategy is unique in the minerals industry in that we have a clear understanding of our parent company's expected development plans , where others must rely on existing permits or other signs of development to give confidence in future cash flows . " FINANCIAL UPDATE Viper's second quarter 2021 average unhedged realized prices were $ 62.51 per barrel of oil , $ 2.96 per Mcf of natural gas and $ 22.21 per barrel of natural gas liquids , resulting in a total equivalent realized price of $ 45.58 / boe . During the second quarter of 2021 , the Company recorded total operating income of $ 114.2 million and consolidated net income ( including non - controlling interest ) of $ 42.4 million . As of June 30 , 2021 , the Company had a cash balance of $ 42.4 million and total long - term debt outstanding ( excluding debt issuance , discounts and