Viper Energy Partners LP (NASDAQ:VNOM) Q2 2022 Earnings Conference Call August 2, 2022 12:00 PM ET

Company Participants

Adam Lawlis - Vice President of Investor Relations

Travis Stice - Chief Executive Officer

Kaes Van't Hof - President

Austen Gilfillian - Investor Relations

Conference Call Participants

Neal Dingmann - Truist

Chris Baker - Credit Suisse

Jeanine Wai - Barclays

Leo Mariani - MKM Partners

Operator

Good day and welcome to the Viper Energy Partners 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker 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 Mr. Adam Lawlis, Vice President, Investor Relations. Please, go ahead.

Adam Lawlis

Thank you, Sherry. Good morning and welcome to Viper Energy Partners second quarter 2022 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; and Kaes Van't Hof, President.

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 2022 conference call. The second quarter was an outstanding quarter for Viper. Oil production grew 9% quarter-over-quarter, which, combined with the benefit of increasing commodity prices and no inflationary cost pressures, resulted in a 20% increase in cash available for distribution.

Importantly, the significant increase in production was driven primarily by a record 4.8 net wells being turned to production by Diamondback during the quarter. As a result of Diamondback's consistent focus on developing Viper's high-concentration royalty acreage, primarily in the Northern Midland Basin, as well as continued strong activity levels by third-party operators, Viper is increasing our guidance for oil production for the full year 2022 by 4% at the midpoint. This is the second time we've increased our production guidance for the year, with the midpoint now 1,000 barrels a day higher than our initial production guidance.