Our primary business objective is to provide an attractive return to unitholders by focusing on business results and total distributions and pursuing accretive growth opportunities through acquisitions from Diamondback and from third parties. We intend to accomplish this objective by executing the following strategies:
- Seek to acquire from Diamondback, from time to time, mineral or other interests in producing oil and natural gas properties that meet our acquisition criteria. We may have additional opportunities to acquire producing oil and natural gas properties directly from Diamondback from time to time in the future. We believe Diamondback may be incentivized to sell properties to us, as doing so may enhance Diamondback’s economic returns by monetizing long-lived producing properties while potentially retaining a portion of the resulting cash flow through distributions on Diamondback’s limited partner interests in us.
- Leverage our relationship with Diamondback to participate with it in acquisitions of third-party producing properties and to increase the size and scope of our potential third-party acquisition targets. Diamondback’s executives have long histories of evaluating, pursuing and consummating oil and natural gas property acquisitions in North America. Through our relationships with Diamondback and its affiliates, we have access to their significant pool of management talent and industry relationships, which we believe provide us with a competitive advantage in pursuing potential third-party acquisition opportunities.
- Capitalize on the development of the properties underlying our mineral interests to grow our distributions. We expect the production from our mineral interest will increase as our other operators continue to actively drill our acreage. We expect to capitalize on this development, cost-free to us, and believe the resulting increase in our aggregate royalty payments will enable us to grow our distributions.