UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS

12 Months Ended

Dec. 31, 2019

UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS

The Partnership has general partner and limited partner units. At December 31, 2019, the Partnership had a total of 43,700,000 common units issued and outstanding and 107,815,152 Class B units issued and outstanding, of which no common units and 107,815,152 Class B units were owned by Diamondback, representing approximately 71% of the Partnership’s total units outstanding. The Operating Company units and the Partnership’s Class B units owned by Diamondback are exchangeable from time to time for the Partnership’s common units (that is, one Operating Company unit and one Partnership Class B unit, together, will be exchangeable for one Partnership common unit).

The following table summarizes changes in the number of the Partnership’s common units:



	Common Units
Balance at May 28, 2019	—
Common units issued in public offerings	43,700,000
Balance at December 31, 2019	43,700,000

The following table summarizes changes in the number of the Partnership’s class B units:



	Class B Units
Balance at May 28, 2019	—
Units related to tax conversion	107,815,152
Balance at December 31, 2019	107,815,152

At the closing of the Partnership’s IPO, the board of directors of the General Partner adopted a policy pursuant to which the Partnership will pay, to the extent legally available, cash distributions of $0.25 per common unit to common unitholders of record on the applicable record date within 60 days after the end of each quarter beginning with the quarter ending September 30, 2019. The Partnership’s first distribution was prorated for the period from the closing of the IPO through September 30, 2019. On February 13, 2020, the board of directors of the General Partner revised the cash distribution policy to provide that the Partnership will pay, to the extent legally available, cash distributions of $0.29 per common unit to common unitholders of record on the applicable record date after the end of each quarter beginning the quarter ended December 31, 2019. The board of directors of the General Partner may change the Partnership’s distribution policy at any time and from time to time. The partnership agreement (discussed below) does not require the Partnership to pay cash distributions on the Partnership’s common units on a quarterly or other basis.

The following table presents cash distributions approved by the board of directors of the General Partner for the periods presented:



Declaration Date	Quarter	Amount per Common Unit		Payment Date
October 31, 2019	Q3 2019	$	0.34	November 22, 2019
February 13, 2020	Q4 2019	$	0.29	March 10, 2020