UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONS

UNITHOLDERS’ EQUITY AND PARTNERSHIP DISTRIBUTIONSThe Partnership has general partner and limited partner units. At June 30, 2020, the Partnership had a total of 43,996,243 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 ownership interest in consolidated subsidiaries during the period:

	Three Months Ended June 30, 2020		Six Months Ended June 30, 2020
	(In thousands)
Net income attributable to the Partnership	$	2,822	$	15,853
Change in ownership of consolidated subsidiaries	(329,034)		(329,034)
Change from net (loss) income attributable to the Partnership's unitholders and transfers to non-controlling interest	$	(326,212)	$	(313,181)

There were no changes in the ownership interests in consolidated subsidiaries during the period between the closing of the IPO on May 28, 2019 and June 30, 2019.

At the closing of the 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. 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 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 indicated:

Declaration Date	Quarter(1)	Amount per Common Unit		Payment Date
October 31, 2019	Q3 2019(2)	$	0.34	November 22, 2019
February 13, 2020	Q4 2019	$	0.29	March 10, 2020
April 30, 2020	Q1 2020	$	0.29	May 26, 2020
July 31, 2020	Q2 2020	$	0.29	August 24, 2020

(1) Distributions are shown for the quarter in which they were generated.

(2) The Q3 2019 distribution also includes amounts attributable to Q2 2019 commencing upon the closing of the IPO.