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Financial report summary
?Management Discussion
- 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 decreased $120.9 million during the year ended DecemberĀ 31, 2023 compared to 2022. Changes in average pricing during 2023 contributed to approximately $245.1 million of the total decrease due primarily to lower average oil, natural gas and natural gas liquids prices received for our production in 2023. The decrease attributable to lower pricing was partially offset by $124.2 million in additional royalty income due to a 17% increase in production volumes during the year ended December 31, 2023 compared to the same period in 2022. Of this production growth, 4.1% is related to the GRP Acquisition with the remainder coming from new well development in areas where Viper has a higher royalty interest between periods.
- Lease Bonus IncomeāRelated Party. Lease bonus income from Diamondback increased $84.5 million during the year ended December 31, 2023 due primarily to one lease of $95.8 million in our Spanish Trail prospect in Midland County, Texas, nine other new leases in Martin, Midland, Pecos and Wheeler Counties; Texas, and two lease extensions in Martin County, Texas, compared to seven new leases in Martin and Midland Counties, Texas, in the same period in 2022.