VIPER ENERGY, INC. The following discussion and analysis should be read in conjunction with our unaudited condensed consolidated financial statements and notes thereto presented in this report as well as our audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year endedDecember 31, 2021 . The following discussion contains "forward-looking statements" that reflect our future plans, estimates, beliefs, and expected performance. Actual results and the timing of events may differ materially from those contained in these forward-looking statements due to a number of factors. See " Part II. Item 1A. Risk Factors " and " Cautionary Statement Regarding Forward-Looking Statements ." Overview We are a publicly tradedDelaware limited partnership formed by Diamondback to own and acquire mineral and royalty interests in oil and natural gas properties primarily in thePermian Basin . We operate in one reportable segment. SinceMay 10, 2018 , we have been treated as a corporation forU.S. federal income tax purposes. As ofJune 30, 2022 , ourGeneral Partner held a 100%General Partner interest in us, and Diamondback owned 731,500 of our common units and beneficially owned all of our 90,709,946 outstanding Class B units, representing approximately 55% of our total units outstanding. Diamondback also owns and controls ourGeneral Partner . Recent Developments Commodity Prices Prices for oil, natural gas and natural gas liquids are determined primarily by prevailing market conditions. Regional and worldwide economic activity, extreme weather conditions and other substantially variable factors influence market conditions for these products. These factors are beyond our control and are difficult to predict. During 2021 and the first half of 2022, NYMEX WTI, has ranged from$47.62 to$123.70 per Bbl, and the NYMEX Henry Hub price of natural gas has ranged from$2.45 to$9.32 per MMBtu, with seven-year highs reached in 2022. The war inUkraine , the COVID-19 pandemic, and recent measures to combat inflation have continued to contribute to economic and pricing volatility during 2022. Additionally,OPEC and its non-OPEC allies, known collectively as OPEC+, continues to meet regularly to evaluate the state of global oil supply, demand and inventory levels, and has planned production increases throughout 2022, however such increases cannot be guaranteed. As such, pricing may remain volatile during the second half of 2022. Although demand for oil and natural gas and commodity prices have increased in the current year, Diamondback and certain of our other operators have kept production on our acreage relatively flat during 2022, using excess cash flow for debt repayment and/or return to their stockholders rather than expanding their drilling programs. Diamondback also indicated that it intends to continue exercising capital discipline and will maintain its fourth quarter 2021 oil production levels flat in 2022. We cannot reasonably predict whether production levels will remain at current levels or the impact the full extent of the events above and subsequent recovery may have on our industry and our business. Due to the improved commodity prices and industry conditions, we were not required to record an impairment on our proved oil and natural gas interests for the quarter endedJune 30, 2022 , based on the results of the quarterly ceiling test. If commodity prices fall below current levels, we may be required to record impairments in future periods and such impairments could be material. Further, if commodity prices decrease, our production, proved reserves and cash flows may be adversely impacted. Our business may also be adversely impacted by any pipeline capacity and storage constraints.
Acquisitions Update
We have had no significant acquisitions during of 2022. Our footprint of mineral
and royalty interests totaled 26,718 net royalty acres at
Cash Distributions on Common Units
OnJuly 26, 2022 , the board of directors of ourGeneral Partner declared a cash distribution for the three months endedJune 30, 2022 of$0.81 per common unit. The distribution is payable in the third quarter of 2022. InJuly 2022 , the board of directors of ourGeneral Partner approved a distribution policy, consisting of a base and variable distribution, that takes into account capital returned to unitholders via our unit buyback program. This policy will be effective beginning with our distribution payable following the third quarter of 2022 and contemplates that we will return to our 17
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unitholders at least 75% of our cash available for distribution through a
combination of base distribution, variable distribution and repurchases of
limited partner units. The base distribution is intended initially to be
Repurchases of Notes
During the second quarter of 2022, the Partnership repurchased an aggregate$49.6 million principal amount of its outstanding 5.375% 2027 Senior Notes with a combination of cash on hand and borrowing under theOperating Company's revolving credit facility. For additional discussion of our debt transactions during the second quarter of 2022, see Note 6- Debt of the notes to the condensed consolidated financial statements included elsewhere in this report.
Production and Operational Update
Third party operated net wells turned to production on our acreage during the second quarter of 2022 are at their highest level since the second quarter of 2019, and third party operated gross wells turned to production during the quarter were the highest in the Partnership's history. There are currently 47 rigs operating on our mineral and royalty acreage, seven of which are operated by Diamondback. Our production and free cash flow outlooks are expected to be driven by Diamondback's continued focus on developing our acreage, as well as our exposure to other well-capitalized operators in thePermian Basin . As a result of Diamondback's consistent focus on developing our high concentration royalty acreage, primarily in theNorthern Midland Basin , we increased our full year 2022 guidance for oil production by approximately 4% at the midpoint from the previous guidance. The following table summarizes our gross well information as of the dates indicated: Third Party Diamondback Operated Operated Total
Horizontal wells turned to production (second quarter 2022)(1): Gross wells
54 126 180
Net 100% royalty interest wells 4.8 0.9 5.7
Average percent net royalty interest 8.9 % 0.7 % 3.2 %
Horizontal producing well count (as of
1,451 4,521 5,972
Net 100% royalty interest wells 109.7 61.9 171.6
Average percent net royalty interest 7.6 % 1.4 % 2.9 %
Horizontal active development well count (as of
75 475 550
Net 100% royalty interest wells 4.2 4.8 9.0
Average percent net royalty interest 5.6 % 1.0 % 1.6 %
Line of sight wells (as of July 13 , 2022)(3):
Gross wells 145 413 558
Net 100% royalty interest wells 8.3 4.2 12.5
Average percent net royalty interest 5.7 % 1.0 % 2.2 %
(1) Average lateral length of 9,785.
(2) The total 550 gross wells currently in the process of active development are
those wells that have been spud and are expected to be turned to production
within approximately the next six to eight months.
(3) The total 558 gross line-of-sight wells are those that are not currently in
the process of active development, but for which we have reason to believe that
they will be turned to production within approximately the next 15 to 18 months.
The expected timing of these line-of-sight wells is based primarily on
permitting by third party operators or Diamondback's current expected completion
schedule. Existing permits or active development of our royalty acreage does not
ensure that those wells will be turned to production given the volatility in oil
prices.
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Comparison of the Three Months Ended
As noted in "- Recent Developments ," the markets for oil and natural gas are highly volatile and are influenced by a number of factors which can lead to significant changes in our results of operations and management's operational strategy on a quarterly basis. Accordingly, our results of operations discussion focuses on a comparison of the current quarter's results of operations with those of the immediately preceding quarter. We believe our discussion provides investors with a more meaningful analysis of material operational and financial changes which occurred during the quarter based on current market and operational trends.
Results of Operations
The following table summarizes our income and expenses for the periods
indicated:
Three Months Ended
June 30, 2022 March 31, 2022
(In thousands)
Operating income:
Oil income $ 191,195 $ 155,051
Natural gas income 23,793 15,190
Natural gas liquids income 23,842 22,848
Royalty income 238,830 193,089
Lease bonus income 329 8,682
Other operating income 163 132
Total operating income 239,322 201,903
Costs and expenses:
Production and ad valorem taxes 16,039 13,870
Depletion 31,962 27,411
General and administrative expenses 1,880 1,953
Total costs and expenses 49,881 43,234
Income (loss) from operations 189,441 158,669
Other income (expense):
Interest expense, net (9,782) (9,645)
Gain (loss) on derivative instruments, net (1,889) (18,359)
Other income, net 32 6
Total other expense, net (11,639) (27,998)
Income (loss) before income taxes 177,802 130,671
Provision for (benefit from) income taxes 6,182 2,630
Net income (loss) 171,620 128,041
Net income (loss) attributable to non-controlling interest 137,598 111,436
Net income (loss) attributable to Viper Energy Partners LP $ 34,022 $ 16,605
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The following table summarizes our production data, average sales prices and average costs for the periods indicated:
Three Months Ended
June 30, 2022 March 31, 2022
Production data:
Oil (MBbls) 1,798 1,633
Natural gas (MMcf) 3,898 3,729
Natural gas liquids (MBbls) 607 586
Combined volumes (MBOE)(1) 3,054 2,841
Average daily oil volumes (BO/d) 19,758 18,144
Average daily combined volumes (BOE/d) 33,560 31,567
Average sales prices:
Oil ($/Bbl) $ 106.34 $ 94.95
Natural gas ($/Mcf) $ 6.10 $ 4.07
Natural gas liquids ($/Bbl) $ 39.28 $ 38.99
Combined ($/BOE)(2) $ 78.20 $ 67.97
Oil, hedged ($/Bbl)(3) $ 105.59 $ 92.05
Natural gas, hedged ($/Mcf)(3) $ 4.72 $ 3.71
Natural gas liquids ($/Bbl)(3) $ 39.28 $ 38.99
Combined price, hedged ($/BOE)(3) $
75.99
Average costs ($/BOE): Production and ad valorem taxes $
5.25 $ 4.88
General and administrative - cash component(4) 0.51 0.59 Total operating expense - cash $
5.76 $ 5.47
General and administrative - non-cash unit compensation expense $ 0.11 $ 0.10 Interest expense, net $ 3.20 $ 3.39 Depletion$ 10.47 $ 9.65 (1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl. (2)Realized price net of all deducts for gathering, transportation and processing. (3)Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices. (4)Excludes non-cash unit-based compensation expense for the respective periods presented. Royalty Income
Our royalty income is a function of oil, natural gas, and natural gas liquids production volumes sold and average prices received for those volumes.
Royalty income increased
The remaining increase of$17.2 million stemmed from production growth of 8% primarily attributable to production from new wells and having one additional day of production in the second quarter of 2022 compared to the first quarter of 2022. 20
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Lease Bonus Income
Lease bonus income decreased during the second quarter of 2022 as a result of recording non-recurring income from leasing certain assets we acquired in the Swallowtail Acquisition to Diamondback in the first quarter of 2022.
Production and Ad Valorem Taxes
The following table presents production and ad valorem taxes for the three
months ended
Three Months Ended
June 30, 2022 March 31, 2022
Amount Percentage of Amount Percentage of
(In thousands) Per BOE Royalty Income (In thousands) Per BOE Royalty Income
Production taxes $ 12,023 $ 3.94 5.0 % $ 9,870 $ 3.47 5.1 %
Ad valorem taxes 4,016 1.31 1.7 4,000 1.41 2.1
Total production and ad
valorem taxes $ 16,039 $ 5.25 6.7 % $ 13,870 $ 4.88 7.2 %
In general, production taxes are directly related to production revenues and are
based upon current year commodity prices. Production taxes as a percentage of
royalty income for the second quarter of 2022 remained consistent with the first
quarter of 2022. Ad valorem taxes are based, among other factors, on property
values driven by prior year commodity prices. Ad valorem taxes were consistent
between periods and decreased as a percentage of royalty income for the second
quarter of 2022 compared to the first quarter of 2022, primarily due to the
increase in royalty income from higher oil and natural gas prices.
Depletion
The$4.6 million , or 17%, increase in depletion expense for the second quarter of 2022 compared to the first quarter of 2022 was due primarily to higher production, coupled with an increase in the average depletion rate to$10.47 from$9.65 , respectively. The rate increase resulted from higher value leasehold being transferred into the amortization base during the second quarter of 2022.
Derivative Instruments
The following table shows the net gain (loss) on derivative instruments and the net cash receipts (payments) on derivatives for the periods presented:
Three Months Ended
June 30, 2022 March 31, 2022
(In thousands)
Gain (loss) on derivative instruments $ (1,889) $ (18,359)
Net cash receipts (payments) on derivatives(1)
(10,264)
(1)The three months ended
We recorded losses on our derivative instruments for the first and second quarters of 2022 primarily due to market prices being higher than the strike prices on our derivative contracts. However, due to the early termination of certain commodity contracts in the first quarter of 2022 and the continued settlement of contracts with more unfavorable pricing in the second quarter of 2022, market prices were closer to the strike prices on our open contracts atJune 30, 2022 compared toMarch 31, 2022 , which reduced our overall loss. We are required to recognize all derivative instruments on our balance sheet as either assets or liabilities measured at fair value. We have not designated our derivative instruments as hedges for accounting purposes. As a result, we mark our derivative instruments to fair value and recognize the cash and non-cash changes in fair value on derivative instruments in our condensed consolidated statements of operations under the line item captioned "Gain (loss) on derivative instruments, net." See Note 10- Derivatives of the notes to the condensed consolidated financial statements included elsewhere in this report for additional discussion of our open contracts atJune 30, 2022 . 21
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Provision for (Benefit from) Income Taxes
The$3.6 million increase in income tax expense for the second quarter of 2022 compared to the first quarter of 2022. primarily resulted from higher pre-tax net income driven primarily by an increase in royalty income and a decrease in losses on our derivative contracts as discussed above. See Note 9- Income Taxes of the notes to the condensed consolidated financial statements included elsewhere in this report for further details.
Comparison of the Six Months Ended
Results of Operations
The following table summarizes our income and expenses for the periods
indicated:
Six Months Ended
June 30,
2022 2021
(In thousands)
Operating income: Oil income$ 346,246 $ 172,296 Natural gas income 38,983 18,577 Natural gas liquids income 46,690 19,097 Royalty income 431,919 209,970 Lease bonus income 9,011 809 Other operating income 295 347 Total operating income 441,225 211,126 Costs and expenses: Production and ad valorem taxes 29,909 14,801 Depletion 59,373 48,864 General and administrative expenses 3,833 4,383 Total costs and expenses 93,115 68,048 Income (loss) from operations 348,110 143,078 Other income (expense): Interest expense, net (19,427) (15,833) Gain (loss) on derivative instruments, net (20,248) (61,050) Other income, net 38 77 Total other expense, net (39,637) (76,806) Income (loss) before income taxes 308,473 66,272 Provision for (benefit from) income taxes 8,812 35 Net income (loss) 299,661 66,237 Net income (loss) attributable to non-controlling interest 249,034 64,595 Net income (loss) attributable to Viper Energy Partners LP$ 50,627 $ 1,642 22
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The following table summarizes our production data, average sales prices and average costs for the periods indicated:
Six Months Ended
June 30,
2022 2021
Production data:
Oil (MBbls) 3,431 2,898
Natural gas (MMcf) 7,627 6,481
Natural gas liquids (MBbls) 1,193 856
Combined volumes (MBOE)(1) 5,895 4,834
Average daily oil volumes (BO/d) 18,956 16,011
Average daily combined volumes (BOE/d) 32,569 26,707
Average sales prices:
Oil ($/Bbl) $ 100.92 $ 59.45
Natural gas ($/Mcf) $ 5.11 $ 2.87
Natural gas liquids ($/Bbl) $ 39.14 $ 22.31
Combined ($/BOE)(2) $ 73.27 $ 43.44
Oil, hedged ($/Bbl)(3) $ 99.14 $ 47.07
Natural gas, hedged ($/Mcf)(3) $ 4.22 $ 2.87
Natural gas liquids ($/Bbl)(3) $ 39.14 $ 22.31
Combined price, hedged ($/BOE)(3) Average costs ($/BOE): Production and ad valorem taxes
General and administrative - cash component(4) 0.55 0.77 Total operating expense - cash
General and administrative - non-cash unit compensation expense$ 0.11 $ 0.14 Interest expense, net$ 3.30 $ 3.28 Depletion$ 10.07 $ 10.11 (1)Bbl equivalents are calculated using a conversion rate of six Mcf per one Bbl. (2)Realized price net of all deducts for gathering, transportation and processing. (3)Hedged prices reflect the impact of cash settlements of our matured commodity derivative transactions on our average sales prices. (4)Excludes non-cash unit-based compensation expense for the respective periods presented. Royalty Income
Our royalty income is a function of oil, natural gas, and natural gas liquids production volumes sold and average prices received for those volumes.
Royalty income increased$221.9 million during the six months endedJune 30, 2022 compared to the same period in 2021. As discussed in "- Recent Developments ," the record high oil prices and to a lesser extent, the continuing recovery in natural gas and natural gas liquids prices, contributed approximately$179.4 million of the total increase. The 22% increase in production volumes during the six months endedJune 30, 2022 compared to the same period in 2021 contributed to the remaining$42.5 million of the total increase in royalty income. This production growth is primarily attributable to new well additions between periods, largely resulting from the Swallowtail Acquisition. 23
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Lease Bonus Income
Lease bonus income increased during the six months endedJune 30, 2022 compared to the same period in 2021 due primarily to leasing certain assets we acquired in the Swallowtail Acquisition to Diamondback in the first quarter of 2022.
Production and Ad Valorem Taxes
The following table presents production and ad valorem taxes for the six months
ended
Six Months Ended June 30,
2022 2021
Amount Percentage of Amount Percentage of
(In thousands) Per BOE Royalty Income (In thousands) Per BOE Royalty Income
Production taxes $ 21,894 $ 3.71 5.1 % $ 10,514 $ 2.17 5.0 %
Ad valorem taxes 8,015 1.36 1.9 4,287 0.89 2.0
Total production and ad
valorem taxes $ 29,909 $ 5.07 7.0 % $ 14,801 $ 3.06 7.0 %
In general, production taxes are directly related to production revenues and are
based upon current year commodity prices. Production taxes as a percentage of
royalty income for the six months ended June 30, 2022 remained consistent with
the same period in 2021. Ad valorem taxes are based, among other factors, on
property values driven by prior year commodity prices. The increase in ad
valorem taxes is primarily due to accruing taxes for the properties acquired in
the Swallowtail Acquisition, as well as higher valuations assigned to our other
oil and natural gas interests period over period driven by higher commodity
prices. Ad valorem taxes remained consistent as a percentage of royalty income
for the six months ended June 30, 2022 compared to the same period in 2021.
Depletion
The$10.5 million , or 22%, increase in depletion expense for the six months endedJune 30, 2022 compared to the same period in 2021 was due primarily to production growth between the periods. The average depletion rate of$10.07 for the six months endedJune 30, 2022 remained consistent with the rate of$10.11 for the same period in 2021.
Derivative Instruments
The following table shows the net gain (loss) on derivative instruments and the net cash receipts (payments) on derivatives for the periods presented:
Six Months Ended June 30,
2022 2021
(In thousands)
Gain (loss) on derivative instruments $ (20,248) $ (61,050)
Net cash receipts (payments) on derivatives(1) $ (17,029)
(1)The six months ended
We recorded losses on our derivative instruments for the six months endedJune 30, 2022 and 2021 primarily due to market prices being higher than the strike prices on our derivative contracts. We are required to recognize all derivative instruments on our balance sheet as either assets or liabilities measured at fair value. We have not designated our derivative instruments as hedges for accounting purposes. As a result, we mark our derivative instruments to fair value and recognize the cash and non-cash changes in fair value on derivative instruments in our condensed consolidated statements of operations under the line item captioned "Gain (loss) on derivative instruments, net." 24
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Provision for (Benefit from) Income Taxes
Income tax expense for the six months endedJune 30, 2022 of$8.8 million resulted from the increase in pre-tax income, which was driven largely by increases in royalty income and lease bonus income as well as a decrease in losses from our derivative contracts as discussed above. See Note 9- I ncome Taxes of the notes to the condensed consolidated financial statements included elsewhere in this report for further details.
Liquidity and Capital Resources
Overview of Sources and Uses of Cash
As we pursue our business and financial strategy, we regularly consider which capital resources, including cash flow and equity and debt financings, are available to meet our future financial obligations and liquidity requirements. Our future ability to grow proved reserves will be highly dependent on the capital resources available to us. Our primary sources of liquidity have been cash flows from operations, proceeds from sales of non-core assets and investments, equity and debt offerings and borrowings under theOperating Company's credit agreement. Our primary uses of cash have been distributions to our unitholders, repayment of debt, capital expenditures for the acquisition of our mineral interests and royalty interests in oil and natural gas properties and repurchases of our common units and senior notes. AtJune 30, 2022 , we had approximately$254.3 million of liquidity consisting of$4.3 million in cash and cash equivalents and$250.0 million available under theOperating Company's credit agreement. Our working capital requirements are supported by our cash and cash equivalents and theOperating Company's credit agreement. We may draw on theOperating Company's credit agreement to meet short-term cash requirements, or issue debt or equity securities as part of our longer-term liquidity and capital management program. Because of the alternatives available to us as discussed above, we believe that our short-term and long-term liquidity are adequate to fund not only our current operations, but also our near-term and long-term funding requirements including our acquisitions of mineral and royalty interests, distributions, debt service obligations and repayment of debt maturities, common unit and senior note repurchases and any amounts that may ultimately be paid in connection with contingencies.
In order to mitigate volatility in oil and natural gas prices, we have entered into commodity derivative contracts as discussed further in Item 3. Quantitative and Qualitative Disclosures About Market Risk-Commodity Price Risk .
Continued prolonged volatility in the capital, financial and/or credit markets due to the COVID-19 pandemic, the war inUkraine , the depressed commodity markets and, or adverse macroeconomic conditions, including persistent inflation, rising interests rates and increasing concerns over a potential recession, may limit our access to, or increase our cost of, capital or make capital unavailable on terms acceptable to us or at all. Although we expect that our sources of funding will be adequate to fund our short-term and long-term liquidity requirements, we cannot assure you that the needed capital will be available on acceptable terms or at all.
Cash Flows
The following table presents our cash flows for the periods indicated:
Six Months Ended June 30,
2022 2021
(In thousands)
Cash Flow Data:
Net cash provided by (used in) operating activities $ 299,020 $ 129,680
Net cash provided by (used in) investing activities 31,198 (819)
Net cash provided by (used in) financing activities (365,354) (105,560)
Net increase (decrease) in cash and cash equivalents $ (35,136) $ 23,301
Operating Activities
Our operating cash flow is sensitive to many variables, the most significant of
which are the volatility of prices for oil and natural gas and the volumes of
oil and natural gas sold by our producers as discussed in "- Result s of
Operations " above. The increase in net cash provided by operating activities
during the six months ended June 30, 2022 compared to the same
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period in 2021 was primarily driven by (i) higher royalty income, (ii) an increase in lease bonus income and (iii) a decrease in cash paid for derivative settlements. These increases in cash flow were partially offset by (i) changes in our working capital accounts, most notably through an increase in our accounts receivable in 2022 compared to 2021 due primarily to higher market prices for our oil sales and the timing of our receipt of royalty income payments from our operators (ii) an increase in production and ad valorem expenses due to the corresponding increase in royalty income and (iii) an increase in cash paid for taxes, as our tax provision reflects an increase in current cash income taxes. Investing Activities Net cash provided by investing activities during the six months endedJune 30, 2022 , was primarily related to proceeds from the divestitures of oil and natural gas interests. There were no significant acquisitions or divestitures of oil and natural gas interests during the six months endedJune 30, 2021 .
Financing Activities
Consistent with our previously announced strategy to return cash flow to unitholders, net cash used in financing activities during the six months endedJune 30, 2022 was primarily related to distributions of$194.1 million to our unitholders and$68.2 million of common unit repurchases which included approximately$37.3 million for the repurchase of 1.5 million common units from a significant unitholder in a privately negotiated transaction. Additionally, we paid$49.0 million for the repurchase of principal outstanding on the Notes as discussed in "- 2022 Debt Transactions " below and made net repayments of$54.0 million on theOperating Company's revolving credit facility. Net cash used in financing activities during the six months endedJune 30, 2021 , was primarily related to the net repayment of$22.0 million of borrowings under theOperating Company's revolving credit facility, distributions of$60.8 million to our unitholders and$19.8 million of repurchases of our common units during the second quarter of 2021.
Capital Resources
The Operating Company's credit agreement, as amended to date, provides for a revolving credit facility in the maximum credit amount of$2.0 billion , with a borrowing base of$580.0 million as ofJune 30, 2022 , based on theOperating Company's oil and natural gas reserves and other factors. AtJune 30, 2022 , theOperating Company had elected a commitment amount of$500.0 million on its credit agreement with$250.0 million of outstanding borrowings. During the three and six months endedJune 30, 2022 , the weighted average interest rate on borrowings under theOperating Company's revolving credit facility was 3.20% and 2.88%, respectively. 2022 Debt Transactions During the second quarter of 2022, theOperating Company used a combination of cash on hand and borrowings under theOperating Company's credit agreement to repurchase a portion of the 5.375% 2027 Senior Notes in the aggregate principal amount of$49.6 million .
See Note 6- Debt of the notes to the condensed consolidated financial
statements included elsewhere in this report for additional discussion of our
outstanding debt at
Capital Requirements
Repurchases of Securities
OnApril 27, 2022 , the board of directors of ourGeneral Partner approved an increase of the authorization of its common unit repurchase program to$250.0 million of our outstanding common units and extended the authorization indefinitely. OnJuly 26, 2022 , the board of directors of ourGeneral Partner increased the authorization of our common unit repurchase program from$250.0 million to$750.0 million . As ofJune 30, 2022 ,$111.8 million remains available for use to repurchase units under the repurchase program. See Note 7- Unitholders' Equity and Distributions of the notes to our 26
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condensed consolidated financial statements included elsewhere in this report for further discussion of the unit repurchase program.
We may also from time to time opportunistically repurchase some of the outstanding Notes in open market purchases or in privately negotiated transactions.
Cash Distributions
The distribution for the second quarter of 2022 was$0.81 per common unit payable onAugust 23, 2022 to common unitholders of record at the close of business onAugust 16, 2022 . See " - Recent Developments-Cash Distributions on Common Units " and Note 7- Unitholders' Equity and Distributions of the notes to the condensed consolidated financial statements included elsewhere in this report for further discussion of our distributions.
Critical Accounting Estimates
There have been no changes to our critical accounting estimates from those
disclosed in our Annual Report on Form 10-K for the year ended
Recent Accounting Pronouncements
See Note 2- Summary of Significant Accounting Policies to the notes of our condensed consolidated financial statements included elsewhere in this report for a listing of our significant accounting policies.
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