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, 2023.

SECOND QUARTER HIGHLIGHTS

Q2 2023 average production of 21,143 bo/d (37,681 boe/d), an increase of 5.1% from Q1 2023 and 7.0% year over year; highest in Company history

Received $2.4 million in lease bonus income

Q2 2023 consolidated net income (including non-controlling interest) of $79.9 million; net income attributable to Viper Energy Partners LP of $30.6 million, or $0.42 per common unit

Q2 2023 cash available for distribution to Viper's common units (as defined and reconciled below) of $48.1 million, or $0.68 per common unit

Increasing annual base distribution by 8% to $1.08 per common unit; declared Q2 2023 base cash distribution of $0.27 per common unit; implies a 4.1% annualized yield based on the July 28, 2023 unit closing price of $26.63

Q2 2023 variable cash distribution of $0.09 per common unit; total base-plus-variable distribution of $0.36 per common unit implies a 5.4% annualized yield based on the July 28, 2023 unit closing price of $26.63

Repurchased 0.9 million common units in Q2 2023 for $24.3 million, excluding excise tax (average price of $26.61 per unit)

Total Q2 2023 return of capital to LP unitholders of $36.1 million, or $0.51 per common unit, represents 75% of cash available for distribution from unit repurchases and the declared base-plus-variable distribution

Increased borrowing base from $580.0 million to $1.0 billion and increased the aggregate elected commitment amount from $500.0 million to $750.0 million

285 total gross (5.9 net 100% royalty interest) horizontal wells turned to production on Viper's acreage during Q2 2023 with an average lateral length of 11,403 feet

Initiating average daily production guidance for Q3 2023 of 21,750 to 22,250 bo/d (37,500 to 38,500 boe/d), the midpoint of which implies 4.0% growth relative to Q2 2023

Narrowing full year 2023 average daily production range to 21,000 to 21,500 bo/d (36,500 to 37,500 boe/d)

'Viper's announcement today to increase its annual base distribution is a natural progression of our enhanced return of capital program that was implemented with second quarter earnings last year. Over the past year we have further improved our balance sheet, grown oil production by 7%, and reduced our unit count by roughly five million units. With the increased base distribution currently representing over a 4% annualized yield, Viper has the balance sheet strength and durable cash flow profile to support this level of committed return of capital through the cycle. Additionally, while we still plan to opportunistically repurchase units, this increase to our base distribution highlights our commitment to a sustainable and growing return of capital through cash distributions over the long-term,' stated Travis Stice, Chief Executive Officer of Viper's General Partner.

Mr. Stice continued, 'The results from the second quarter demonstrate the high-quality nature of Viper's royalty assets as well as the advantaged relationship we have with Diamondback as oil production increased 5% quarter over quarter and set a fifth consecutive Company record. Looking ahead, we expect Diamondback to continue to focus their large-scale development on Viper's high concentration royalty acreage. 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. With Diamondback doing almost exclusively large-scale development, and with Viper owning varying interests across the different developments, this growth will not always be ratable from quarter to quarter, but we expect the trend of meaningful growth on an annual basis to continue.'

FINANCIAL UPDATE

Viper's second quarter 2023 average unhedged realized prices were $72.40 per barrel of oil, $1.09 per Mcf of natural gas and $19.07 per barrel of natural gas liquids, resulting in a total equivalent realized price of $46.14/boe.

Viper's second quarter 2023 average hedged realized prices were $71.39 per barrel of oil, $0.65 per Mcf of natural gas and $19.07 per barrel of natural gas liquids, resulting in a total equivalent realized price of $44.97/boe.

During the second quarter of 2023, the Company recorded total operating income of $160.8 million and consolidated net income (including non-controlling interest) of $79.9 million.

As of June 30, 2023, the Company had a cash balance of $13.1 million and total long-term debt outstanding (excluding debt issuance, discounts and premiums) of $654.4 million, resulting in net debt (as defined and reconciled below) of $641.3 million. Viper's outstanding long-term debt as of June 30, 2023 consisted of $430.4 million in aggregate principal amount of its 5.375% Senior Notes due 2027 and $224.0 million in borrowings on its revolving credit facility, leaving $526.0 million available for future borrowings and $539.1 million of total liquidity.

SECOND QUARTER 2023 CASH DISTRIBUTION & CAPITAL RETURN PROGRAM

Viper announced today that the Board of Directors (the 'Board') of Viper Energy Partners General Partner declared a base distribution of $0.27 per common unit for the second quarter of 2023 payable on August 17, 2023 to eligible common unitholders of record at the close of business on August 10, 2023.

The Board also declared a variable cash distribution of $0.09 per common unit for the second quarter of 2023 payable on August 17, 2023 to eligible common unitholders of record at the close of business on August 10, 2023.

During the second quarter of 2023, Viper repurchased 0.9 million common units for an aggregate purchase price of $24.3 million, excluding excise tax (average price of $26.61 per unit). In total, since the initiation of Viper's common unit repurchase program through June 30, 2023, the Company repurchased 12.1 million common units for an aggregate of $277.6 million, reflecting an average price of $22.98 per unit.

OPERATIONS UPDATE

During the second quarter of 2023, Viper estimates that 285 gross (5.9 net 100% royalty interest) horizontal wells with an average royalty interest of 2.1% were turned to production on its acreage position with an average lateral length of 11,403 feet. Of these 285 gross wells, Diamondback is the operator of 81 gross wells, with an average royalty interest of 4.8%, and the remaining 204 gross wells, with an average royalty interest of 1.0%, are operated by third parties.

Viper's footprint of mineral and royalty interests was 27,178 net royalty acres as of June 30, 2023.

The following table summarizes Viper's gross well information for the second quarter ended June 30, 2023:

CONFERENCE CALL

Viper will host a conference call and webcast for investors and analysts to discuss its results for the second quarter of 2023 on Tuesday, August 1, 2023 at 10:00 a.m. CT. Access to the live audio-only webcast, and replay which will be available following the call, may be found here. The live webcast of the earnings conference call will also be available via Viper's website at www.viperenergy.com under the 'Investor Relations' section of the site.

About Viper Energy Partners LP

Viper is a limited partnership formed by Diamondback to own, acquire and exploit oil and natural gas properties in North America, with a focus on owning and acquiring mineral and royalty interests in oil-weighted basins, primarily the Permian Basin.

About Diamondback Energy, Inc.

Diamondback is an independent oil and natural gas company headquartered in Midland, Texas focused on the acquisition, development, exploration and exploitation of unconventional, onshore oil and natural gas reserves primarily in the Permian Basin in West Texas.

Forward-Looking Statements

This news release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, which involve risks, uncertainties, and assumptions. All statements, other than statements of historical fact, including statements regarding Viper's: future performance; business strategy; future operations; estimates and projections of operating income, losses, costs and expenses, returns, cash flow, and financial position; production levels on properties in which Viper has mineral and royalty interests, developmental activity by other operators; reserve estimates and Viper's ability to replace or increase reserves; anticipated benefits of strategic transactions (such as acquisitions or divestitures) and plans and objectives of (including Diamondback's plans for developing Viper's acreage and Viper's cash distribution policy and common unit repurchase program) are forward-looking statements. When used in this news release, the words 'aim,' 'anticipate,' 'believe,' 'continue,' 'could,' 'estimate,' 'expect,' 'forecast,' 'future,' 'guidance,' 'intend,' 'may,' 'model,' 'outlook,' 'plan,' 'positioned,' 'potential,' 'predict,' 'project,' 'seek,' 'should,' 'target,' 'will,' 'would,' and similar expressions (including the negative of such terms) as they relate to Viper are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Although Viper believes that the expectations and assumptions reflected in its forward-looking statements are reasonable as and when made, they involve risks and uncertainties that are difficult to predict and, in many cases, beyond its control. Accordingly, forward-looking statements are not guarantees of Viper's future performance and the actual outcomes could differ materially from what Viper expressed in its forward-looking statements.

Factors that could cause the outcomes to differ materially include (but are not limited to) the following: changes in supply and demand levels for oil, natural gas, and natural gas liquids, and the resulting impact on the price for those commodities; the impact of public health crises, including epidemic or pandemic diseases, and any related company or government policies or actions; actions taken by the members of OPEC and Russia affecting the production and pricing of oil, as well as other domestic and global political, economic, or diplomatic developments, including any impact of the ongoing war in Ukraine on the global energy markets and geopolitical stability; instability in the financial sector; concerns over economic slowdown or potential recession; rising interest rates and their impact on the cost of capital; regional supply and demand factors, including delays, curtailment delays or interruptions of production on Viper's mineral and royalty acreage, or governmental orders, rules or regulations that impose production limits on such acreage; federal and state legislative and regulatory initiatives relating to hydraulic fracturing, including the effect of existing and future laws and governmental regulations; physical and transition risks relating to climate change and the risks and other factors disclosed in Viper's filings with the Securities and Exchange Commission, including its Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on the Securities and Exchange Commission's web site at http://www.sec.gov.

In light of these factors, the events anticipated by Viper's forward-looking statements may not occur at the time anticipated or at all. Moreover, the new risks emerge from time to time. Viper cannot predict all risks, nor can it assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those anticipated by any forward-looking statements it may make. Accordingly, you should not place undue reliance on any forward-looking statements made in this news release. All forward-looking statements speak only as of the date of this news release or, if earlier, as of the date they were made. Viper does not intend to, and disclaim any obligation to, update or revise any forward-looking statements unless required by applicable law.

Contact:

Austen Gilfillian

Tel: +1 432.221.7420

Email: agilfillian@viperenergy.com

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