Viper: Investment Highlights 3Q 20 cash available for distribution of 0.21/unit; Board approved distribution of 0.10, representing 50% of cash available for distribution, up from 25% in 2Q 20; remaining cash flow to be retained for…
Viper Energy Partners Overview Differentiated Investment Opportunity Viper Mineral and Royalty Assets Unique Relationship with Primary Operator VNOM royalty acreage Diamondback relationship and ownership reduces uncertainty around…
Free Cash Flow Sensitivity Viper is uniquely positioned to generate free cash flow even at cyclically low commodity prices due to its cost structure; upside in 2021 as restrictive 2020 hedges roll off At 40 WTI and production held…
Portfolio Overview 108 gross (4.7 net) horizontal wells turned to production during Q3 2020 Near-term inventory of 6.6 net wells currently in the process of active development and an additional 11.2 net line-of-sight wells not…
Diamondback Activity on Vipers Acreage Diamondback has high-graded its development plan to focus primarily on areas where Viper owns a significant royalty interest Higher exposure to Diamondbacks completions with a higher average NRI…
Near-Term Inventory Summary and Forward Visibility After resuming completion activity in the third quarter, Diamondback plans to continue to run 3-4 completion crews for the remainder of 2020 Diamondback expects to focus its…
Spectrum of Oil and Gas Interest Ownership 87% of Vipers Royalty Assets Own rights in perpetuity; all development rights revert to mineral owner at 1 expiration of lease Perpetual Mineral Revenue is received from E&P companies as…
Illustrative Delaware Basin Oil & Gas Lease Life Cycle Sign New Lease 2015: Minerals Leased 2018: Extension 2021: CDC Expires 25% royalty No development by Operator does not Lease bonus operator within drill any additional 3-year…
How Viper Defines a Net Royalty Acre Methodology for deriving Net Royalty Vipers Formula for Net Royalty Acreage Acreage differs widely across the industry Many companies calculate assuming there are eight royalty acres for every…
Financial Overview Financial Strategy Viper Capitalization Maintain Financial Flexibility ( in millions) 9/30/2020 Borrowing base of 580 million with only 127 million drawn as of 9/30/2020(1) Cash 7 Maintain strong liquidity and…
Final Thoughts Viper Energy Partners offers sustainable free cash flow, substantial remaining inventory and upside to future strength in commodity prices Mineral ownership provides surest form of security in the oil industry…
Viper Energy Partners LP Adam Lawlis, Vice President, Investor Relations 500 West Texas Ave., Suite 1200 (432) 221-7430 Midland, TX 79701 irviperenergy.com www.viperenergy.com 17
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