VIPER

[ChuckGeb]

FOURTH QUARTER HIGHLIGHTS

Q4 2022 average production of 19,978 bo/d (34,935 boe/d), an increase of 1% from Q3 2022 and 9% year over year; highest in Company history
Received $17.3 million in lease bonus income
Q4 2022 consolidated net income (including non-controlling interest) of $145.2 million; net income attributable to Viper Energy Partners LP of $21.7 million, or $0.29 per common unit
Q4 2022 cash available for distribution to Viper’s common units (as defined and reconciled below) of $66.4 million, or $0.91 per common unit
Q4 2022 base cash distribution of $0.25 per common unit; implies a 3.3% annualized yield based on the February 17, 2023 unit closing price of $30.03
Q4 2022 variable cash distribution of $0.24 per common unit; total base-plus-variable distribution of $0.49 per common unit implies a 6.5% annualized yield based on the February 17, 2023 unit closing price of $30.03
Repurchased 1.0 million common units in Q4 2022 for $31.7 million (average price of $32.40 per unit)
Total Q4 2022 return of capital to LP unitholders of $49.8 million, or $0.68 per common unit, represents 75% of cash available for distribution from unit repurchases and the declared base-plus-variable distribution
272 total gross (4.6 net 100% royalty interest) horizontal wells turned to production on Viper’s acreage during Q4 2022 with an average lateral length of 10,630 feet
Divested entire acreage position in the Eagle Ford Shale consisting of 681 net royalty acres of third party operated acreage for net proceeds of $53.8 million; estimated 2023 production of approximately 250 bo/d (500 boe/d)
2023 OUTLOOK

Initiating average daily production guidance for the first half of 2023 of 19,750 to 20,750 bo/d (34,000 to 35,750 boe/d)
Initiating full year 2023 average daily production guidance of 20,000 to 22,000 bo/d (34,500 to 38,000 boe/d), the midpoint of which implies 8% year over year growth
As of January 18, 2023, there were approximately 477 gross horizontal wells in the process of active development on Viper’s acreage in which Viper expects to own an average 2.2% net royalty interest (10.3 net 100% royalty interest wells)
Approximately 501 gross (13.7 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

[dan_s]

Q4 production was above my forecast of 34,700 Boepd.

Fixed + Variable dividend was 1 cent higher than my forecast.

Most encouraging is the large number of wells being drilled on their minerals, which should generate a significant increase in production after Q1.