Viper Energy Partners LP (NASDAQ:VNOM) Q2 2023 Earnings Conference Call August 1, 2023 11:00 AM ET

Company Participants

Adam Lawlis - Vice President, Investor Relations

Travis Stice - Chief Executive Officer

Kaes Van't Hof - President

Conference Call Participants

Neal Dingmann - Truist Securities

Operator

Good day, and welcome to the Viper Energy Partners' Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Adam Lawlis, VP Investor Relations. Please go ahead.

Adam Lawlis

Thank you, Abigail. Good morning and welcome to Viper Energy Partners' second quarter 2023 conference call. During our call today, we will reference an updated investor presentation, which can be found on Viper's website. Representing Viper today are Travis Stice, CEO; Kaes Van't Hof, President; and Austen Gilfillian, General Manager.

During this conference call, the participants may make certain forward-looking statements relating to the company's financial condition, results of operations, plans, objectives, future performance and businesses. We caution you that actual results could differ materially from those that are indicated in these forward-looking statements due to a variety of factors. Information concerning these factors can be found in the Company's filings with the SEC. In addition, we will make reference to certain non-GAAP measures. The reconciliations with the appropriate GAAP measures can be found in our earnings release issued yesterday afternoon.

I'll now turn the call over to Travis Stice.

Travis Stice

Thank you, Adam. Welcome everyone and thank you for listening to Viper Energy Partners' second quarter 2023 conference call.

Starting first with operations. The results from the second quarter demonstrate the high-quality nature of Viper's royalty assets as well as the advantage to relationship we have with Diamondback. In the broader landscape of relatively flat production in the Permian Basin, Viper's oil production increased 5% quarter-over-quarter and set a fifth consecutive company record.

Looking ahead, we expect Diamondback to continue to focus on their large scale development on Viper's high-concentration royalty acreage. And as a result, we have initiated production guidance for the third quarter that implies roughly 4% oil growth relative to the second quarter.

Importantly, as assumed in our updated guidance, it is expected that Viper's Diamondback-operated net oil volumes will increase over 15% for the full year 2023 with a further increase of roughly 10% expected for the full year 2024.