RATTLER
MIDSTREAM LP, A SUBSIDIARY OF DIAMONDBACK ENERGY, INC., REPORTS
SECOND QUARTER 2022 FINANCIAL AND OPERATING RESULTS MIDLAND, Texas,
August 3, 2022 (GLOBE NEWSWIRE) -- Rattler Midstream LP (NASDAQ:
RTLR) (“Rattler” or the “Company”), a subsidiary of Diamondback
Energy, Inc. (NASDAQ: FANG) (“Diamondback”), today announced
financial and operating results for the second quarter ended June
30, 2022. Due to the pending merger between Diamondback and
Rattler, Rattler will not host an earnings call for the second
quarter 2022 nor hold an investor presentation. SECOND QUARTER 2022
HIGHLIGHTS • Q2 2022 consolidated net income (including
non-controlling interest) of $55.1 million • Q2 2022 Adjusted
EBITDA (as defined and reconciled below) of $102.4 million • Q2
2022 cash flow provided by operating activities of $73.2 million •
Q2 2022 cash operated capital expenditures of $25.2 million • Q2
2022 Free Cash Flow (as defined and reconciled below) of $36.1
million • Board of Directors of Rattler's general partner approved
a cash distribution for the second quarter of 2022 of $0.30 per
common unit • 40% of sourced water volumes sold during Q2 2022
represented recycled produced water OPERATIONS AND FINANCIAL UPDATE
During the second quarter of 2022, the Company recorded total
operating income of $39.6 million, an increase of 1% compared to
the first quarter of 2022. During the second quarter of 2022, the
Company recorded consolidated net income (including non-controlling
interest) of $55.1 million, an increase of 48% from the first
quarter of 2022. Second quarter 2022 Adjusted EBITDA (including
non-controlling interest and as defined and reconciled below) was
$102.4 million, an increase of 18% from the first quarter of 2022.
Second quarter operated capital expenditures totaled $25.2 million.
Rattler also received proceeds of $11.4 million in distributions
from equity method investments related to operations during the
quarter. Filed by Rattler Midstream LP Pursuant to Rule 425 under
the Securities Act of 1933, as amended and deemed filed pursuant to
Rule 14a-12 under the Securities Act of 1934, as amended Subject
Company: Rattler Midstream LP Commission File No.: 001-38919 Date:
August 3, 2022
The following
table summarizes the Company's throughput(a) on its operated
assets. Three Months Ended June 30, Six Months Ended June 30, 2022
2021 2022 2021 Crude oil gathering (Bbl/d)
..........................................................................
72,324 84,014 75,141 84,609 Natural gas gathering (MMBtu/d)
................................................................ —
141,529 — 136,014 Produced water gathering and disposal (Bbl/d)
........................................... 840,205 801,967 843,004
783,878 Sourced water gathering (Bbl/d)
..................................................................
373,619 241,570 380,542 254,629 (a) Does not include any volumes
from our equity method investment joint ventures. CASH DISTRIBUTION
AND TRANSACTION UPDATE On July 27, 2022, the Board of Directors of
Rattler's general partner approved a cash distribution for the
second quarter of 2022 of $0.30 per common unit, payable on August
23, 2022 to unitholders of record at the close of business on
August 16, 2022. Rattler and Diamondback expect that their pending
merger will close, subject to certain closing conditions,
reasonably promptly following the distribution payment
date.
About Rattler
Midstream LP Rattler Midstream LP is a Delaware limited partnership
formed by Diamondback Energy to own, operate, develop and acquire
midstream and energy-related infrastructure assets. Rattler owns
crude oil, natural gas and water-related midstream assets in the
Permian Basin that provide services to Diamondback Energy and third
party customers under primarily long-term, fixed-fee contracts. For
more information, please visit www.rattlermidstream.com. About
Diamondback Energy, Inc. Diamondback is an independent oil and
natural gas company headquartered in Midland, Texas focused on the
acquisition, development, exploration and exploitation of
unconventional, onshore oil and natural gas reserves in the Permian
Basin in West Texas. For more information, please visit
www.diamondbackenergy.com. Important Information for Investors;
Additional Information and Where to Find It This communication is
for information purposes only does not constitute an offer to sell
or the solicitation of an offer to buy any securities or a
solicitation of any vote or approval, nor shall there be any sale,
issuance, exchange or transfer of the securities referred to in
this document in any jurisdiction in contravention of applicable
law. In connection with the pending merger, Diamondback has filed
with the Securities and Exchange Commission (the “SEC”) a
registration statement on Form S-4, as amended, that includes an
information statement that also constitutes a prospectus of
Diamondback. Diamondback’s registration statement on Form S-4, as
amended, was declared effective by the SEC on July 28, 2022, and
Rattler’s information statement and Diamondback’s Rule 424(b)(3)
prospectus were filed with the SEC on the same date. Each of
Rattler and Diamondback have also filed other relevant documents
with the SEC regarding the pending merger. No offering of
securities shall be made except by means of a prospectus meeting
the requirements of Section 10 of the U.S. Securities Act of 1933,
as amended. INVESTORS AND SECURITY HOLDERS OF RATTLER AND
DIAMONDBACK ARE URGED TO READ THE REGISTRATION STATEMENT,
INFORMATION STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT HAVE BEEN
FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY
CONTAIN IMPORTANT INFORMATION ABOUT THE PENDING MERGER. Investors
and security holders are able to obtain free copies of these
documents and other documents containing important information
about Rattler and Diamondback through the website maintained by the
SEC at http://www.sec.gov. Copies of the documents filed with the
SEC by Rattler are available free of charge on Rattler’s website at
https://www.rattlermidstream.com under the tab “Investors” and then
under the heading “Financial Information.” Copies of the documents
filed with the SEC by Diamondback are available free of charge on
Diamondback’s website at https://www.diamondbackenergy.com under
the tab “Investors” and then under the heading “Financial
Information.” Participants in the Solicitation Rattler,
Diamondback, the directors and executive officers of the General
Partner and Diamondback, as applicable, and certain other persons
may be deemed to be participants in the solicitation of proxies and
consents in respect of the pending merger. Information regarding
the directors and executive officers of the General Partner is
available in Rattler’s annual report on Form 10-K for the fiscal
year ended
December 31,
2021 filed with the SEC on February 24, 2022. Information regarding
the directors and executive officers of Diamondback is available in
its definitive proxy statement for its 2022 annual meeting, filed
with the SEC on April 28, 2022, and in Diamondback’s annual report
on Form 10-K for the fiscal year ended December 31, 2021, filed
with the SEC on February 24, 2022. Other information regarding the
participants in the solicitations and a description of their direct
and indirect interests, by security holdings or otherwise, are
contained in the information statement/prospectus and other
relevant materials filed with the SEC. Investors should read the
information statement/prospectus carefully before making any
investment decisions. You may obtain free copies of these documents
from Rattler or Diamondback using the sources indicated above.
Forward-Looking Statements This news release contains
“forward-looking statements” within the meaning of Section 27A of
the Securities Act and Section 21E of the Exchange Act, which
involve risks, uncertainties, and assumptions. All statements,
other than statements of historical fact, including statements
regarding Rattler’s: future performance; business strategy; future
operations; estimates and projections of revenues, losses, costs,
expenses, returns, cash flow, and financial position; anticipated
benefits of strategic transactions (including acquisitions and
divestitures); and plans and objectives of management (including
plans for future cash flow from operations) are forward-looking
statements. When used in this news release, the words “aim,”
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,”
“forecast,” “future,” “guidance,” “intend,” “may,” “model,”
“outlook,” “plan,” “positioned,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will,” “would,” and similar
expressions (including the negative of such terms) as they relate
to Rattler are intended to identify forward-looking statements,
although not all forward- looking statements contain such
identifying words. Although Rattler believes that the expectations
and assumptions reflected in its forward-looking statements are
reasonable as and when made, they involve risks and uncertainties
that are difficult to predict and, in many cases, beyond Rattler’s
control. Accordingly, forward-looking statements are not guarantees
of future performance and Rattler’s actual outcomes could differ
materially from what Rattler has expressed in its forward-looking
statements. Factors that could cause the outcomes to differ
materially include (but are not limited to) the following: changes
in supply and demand levels for oil, natural gas, and natural gas
liquids, and the resulting impact on the price for those
commodities; the impact of public health crises, including epidemic
or pandemic diseases such as the COVID-19 pandemic, and any related
company or government policies or actions; actions taken by the
members of OPEC and Russia affecting the production and pricing of
oil, as well as other domestic and global political, economic, or
diplomatic developments, including any impact of the ongoing
Russian-Ukrainian conflict on the global energy markets and
geopolitical stability; regional supply and demand factors,
including delays, curtailment delays or interruptions of
production, or governmental orders, rules or regulations that
impose production limits; federal and state legislative and
regulatory initiatives relating to hydraulic fracturing, including
the effect of existing and future laws and governmental
regulations; and the risks and other factors disclosed in Rattler’s
filings with the Securities and Exchange Commission, including its
Forms 10-K, 10-Q and 8-K, which can be obtained free of charge on
the Securities and Exchange Commission’s web site at
http://www.sec.gov. In light of these factors, the events
anticipated by Rattler’s forward-looking statements may not occur
at the time anticipated or at all. Moreover, Rattler operates in a
very competitive and rapidly changing environment and new risks
emerge from time to time. Rattler cannot predict all risks, nor can
it assess the impact of all factors on its business or the extent
to which any factor, or combination of factors, may cause actual
results to differ materially from those anticipated by any
forward-looking statements it may make. Accordingly, you should not
place undue reliance on any forward-looking statements made in this
news
release. All
forward-looking statements speak only as of the date of this news
release or, if earlier, as of the date they were made. Rattler does
not intend to, and disclaims any obligation to, update or revise
any forward-looking statements unless required by applicable
law.
Rattler
Midstream LP Consolidated Balance Sheets (unaudited, in thousands)
June 30, December 31, 2022 2021 Assets Current assets: Cash
....................................................................................................................................................
$ 17,784 $ 19,897 Accounts receivable—related-party
...................................................................................................
54,620 58,154 Accounts receivable—third-party, net
................................................................................................
7,971 9,415 Sourced water inventory
.....................................................................................................................
15,858 13,081 Other current assets
............................................................................................................................
778 1,181 Total current assets
.....................................................................................................................
97,011 101,728 Property, plant and equipment: Land
....................................................................................................................................................
98,646 98,645 Property, plant and equipment
............................................................................................................
1,140,914 1,075,405 Accumulated depreciation, amortization and
accretion
.....................................................................
(144,332) (121,507) Property, plant and equipment, net
.............................................................................................
1,095,228 1,052,543 Equity method investments
........................................................................................................................
659,749 612,541 Real estate assets, net
..................................................................................................................................
84,042 84,609 Intangible lease assets, net
..........................................................................................................................
3,425 3,650 Deferred tax asset
.......................................................................................................................................
56,218 62,356 Other assets
.................................................................................................................................................
5,943 3,708 Total assets
.................................................................................................................................
$ 2,001,616 $ 1,921,135 Liabilities and Unitholders’ Equity Current
liabilities: Accounts payable and accrued liabilities
............................................................................................
$ 67,501 $ 48,267 Taxes payable
.....................................................................................................................................
187 603 Asset retirement obligations
...............................................................................................................
— 79 Total current liabilities
................................................................................................................
67,688 48,949 Long-term debt
...........................................................................................................................................
725,963 687,956 Asset retirement obligations
.......................................................................................................................
37,904 16,911 Total liabilities
............................................................................................................................
831,555 753,816 Unitholders’ equity: General Partner—Diamondback
.........................................................................................................
779 819 Common units—public (38,417,574 units issued and
outstanding as of June 30, 2022 and 38,356,771 units issued and
outstanding as of December 31, 2021)
.................................................. 347,745 350,230
Class B units—Diamondback (107,815,152 units issued and outstanding
as of June 30, 2022 and as of December 31, 2021)
...................................................................................................................
779 819 Accumulated other comprehensive income (loss)
..............................................................................
11 10 Total Rattler Midstream LP unitholders’ equity
.........................................................................
349,314 351,878 Non-controlling interest
..............................................................................................................................
820,747 815,441 Total equity
......................................................................................................................................
1,170,061 1,167,319 Total liabilities and unitholders’ equity
......................................................................................
$ 2,001,616 $ 1,921,135
Rattler
Midstream LP Consolidated Statements of Operations (unaudited, in
thousands, except per unit data) Three Months Ended June 30, Six
Months Ended June 30, 2022 2021 2022 2021 Revenues: Midstream
revenues—related-party .......................................... $
91,130 $ 91,579 $ 181,432 $ 178,657 Midstream revenues—third-party
............................................. 10,524 5,967 20,970
14,088 Other revenues—related-party
.................................................. 1,748 2,542
3,499 5,082 Other revenues—third-party
...................................................... 960 1,043
1,924 2,112 Total revenues
....................................................................
104,362 101,131 207,825 199,939 Costs and expenses: Direct
operating expenses
.......................................................... 21,195
26,299 42,823 58,810 Cost of goods sold (exclusive of depreciation
and amortization)
..............................................................................
20,117 10,298 35,297 19,109 Real estate operating expenses
.................................................. 610 544 1,143
1,061 Depreciation, amortization and accretion
.................................. 15,112 15,239 35,799 26,485
Impairment and abandonments
.................................................. 177 — 1,259
3,371 General and administrative expenses
........................................ 6,389 4,956 11,734 9,590
(Gain) loss on disposal of assets
................................................ 1,187 5,005 1,116
5,011 Total costs and expenses
.................................................... 64,787 62,341
129,171 123,437 Income (loss) from operations
...................................................................
39,575 38,790 78,654 76,502 Other income (expense): Interest income
(expense), net ...................................................
(9,126) (8,235) (17,810) (15,545) Gain (loss) on sale of equity
method investments ..................... — 22,989 — 22,989 Income
(loss) from equity method investments ........................
27,952 4,472 37,032 1,649 Total other income (expense), net
...................................... 18,826 19,226 19,222 9,093
Net income (loss) before income taxes
...................................................... 58,401
58,016 97,876 85,595 Provision for (benefit from) income taxes
................................. 3,330 3,539 5,714 5,210 Net
income (loss)
.........................................................................................
55,071 54,477 92,162 80,385 Less: Net income (loss) attributable to
non-controlling interest ...... 43,083 42,032 72,243 61,925 Net
income (loss) attributable to Rattler Midstream LP
........................ $ 11,988 $ 12,445 $ 19,919 $ 18,460 Net
income (loss) attributable to limited partners per common unit:
Basic
.............................................................................................
$ 0.30 $ 0.30 $ 0.49 $ 0.42 Diluted
..........................................................................................
$ 0.30 $ 0.30 $ 0.49 $ 0.42 Weighted average number of limited
partner common units outstanding: Basic
.............................................................................................
38,245 41,033 38,202 41,386 Diluted
..........................................................................................
38,267 41,033 38,202 41,386
Cash flows
from operating activities: Net income (loss)
.........................................................................................
$ 55,071 $ 54,477 $ 92,162 $ 80,385 Adjustments to reconcile net
income (loss) to net cash provided by operating activities:
Provision for (benefit from) income taxes
........................................... 3,336 3,539 5,723 5,210
Depreciation, amortization and accretion
............................................ 15,112 15,239 35,799
26,485 Unit-based compensation expense
....................................................... 2,609 2,485
5,129 4,817 Impairment and abandonments
............................................................ 177 —
1,259 3,371 (Gain) loss on sale of equity method investments
............................... — (22,989) — (22,989) (Income) loss
from equity method investments ...................................
(27,952) (4,472) (37,032) (1,649) Distributions from equity method
investments .................................... 11,408 9,055
18,958 9,055 Other
....................................................................................................
1,548 5,509 2,122 6,018 Changes in operating assets and
liabilities: Accounts receivable—related-party
..................................................... (2,238) 7,843
3,502 19,052 Accounts receivable—third-party
........................................................ 6,136
1,474 1,476 72 Accounts payable and accrued liabilities
............................................. 10,202 2,567 6,135
(3,525) Other
....................................................................................................
(2,196) 1,017 (2,132) 2,110 Net cash provided by (used in)
operating activities .............................................
73,213 75,744 133,101 128,412 Cash flows from investing activities:
Additions to property, plant and equipment
................................................ (25,180) (11,853)
(43,068) (17,713) Acquisitions of property, plant and equipment
............................................ — — (4,334) —
Contributions to equity method investments
............................................... — (2,791) (29,133)
(6,454) Distributions from equity method investments
............................................ — — — 9,107 Proceeds
from the sale of equity method investments
................................. — 23,455 — 23,455 Proceeds from
the sale of real estate
............................................................ —
9,118 — 9,118 Other
............................................................................................................
1,197 250 (1,553) 250 Net cash provided by (used in) investing
activities ............................................. (23,983)
18,179 (78,088) 17,763 Cash flows from financing activities:
Proceeds from borrowings under Credit Agreement
................................... 19,000 12,000 54,000 24,000
Payments on Credit Agreement
...................................................................
(17,000) (61,000) (17,000) (98,000) Repurchased units as part of
unit buyback .................................................. —
(5,198) (2,582) (16,312) Distribution to public
..................................................................................
(11,444) (8,183) (22,888) (16,446) Distribution to Diamondback
......................................................................
(32,365) (21,583) (64,730) (43,166) Other
............................................................................................................
(3,339) (2,169) (3,926) (2,628) Net cash provided by (used in)
financing activities .............................................
(45,148) (86,133) (57,126) (152,552) Net increase (decrease) in
cash
.........................................................................................
4,082 7,790 (2,113) (6,377) Cash at beginning of period
.........................................................................
13,702 9,760 19,897 23,927 Cash at end of period
...................................................................................
$ 17,784 $ 17,550 $ 17,784 $ 17,550 Rattler Midstream LP
Consolidated Statements of Cash Flows (unaudited, in thousands)
Three Months Ended June 30, Six Months Ended June 30, 2022 2021
2022 2021
The following
tables provide information regarding our gathering, compression and
transportation system as of June 30, 2022 and utilization for the
quarter ended June 30, 2022: Rattler Midstream LP Pipeline
Infrastructure Assets (unaudited) As of June 30, 2022 (miles)(a)
Delaware Basin Midland Basin Permian Total Crude oil
................................................................................................
114 46 160 Produced water
......................................................................................
276 333 609 Sourced water
........................................................................................
27 102 129 Total
..................................................................................................
417 481 898 (a) Does not include any assets of the equity method
investment joint ventures Rattler Midstream LP Capacity/Capability
(unaudited) As of June 30, 2022 (capacity/capability)(a) Delaware
Basin Midland Basin Permian Total Utilization Crude oil gathering
(Bbl/d) ..........................................................
240,000 65,000 305,000 26 % Produced water gathering and disposal
(Bbl/d) ............................ 1,330,000 2,108,000 3,438,000
23 % Sourced water gathering (Bbl/d)
.................................................. 120,000 655,000
775,000 37 % (a) Does not include any assets of the equity method
investment joint ventures Rattler Midstream LP Throughput
(unaudited) Three Months Ended June 30, Six Months Ended June 30,
(throughput)(a) 2022 2021 2022 2021 Crude oil gathering (Bbl/d)
............................................................ 72,324
84,014 75,141 84,609 Natural gas gathering (MMBtu/d)
.................................................. — 141,529 —
136,014 Produced water gathering and disposal (Bbl/d)
............................. 840,205 801,967 843,004 783,878
Sourced water gathering (Bbl/d)
.................................................... 373,619
241,570 380,542 254,629 (a) Does not include any assets of the
equity method investment joint ventures.
NON-GAAP
FINANCIAL MEASURES Adjusted EBITDA is a supplemental non-GAAP
financial measure used by management and external users of its
financial statements, such as industry analysts, investors, lenders
and rating agencies. Management believes Adjusted EBITDA is useful
because the measure allows it to more effectively evaluate the
Company's operating performance and compare the results of its
operations period to period without regard to its financing methods
or capital structure. The Company defines Adjusted EBITDA as net
income (loss) attributable to the Company plus net income (loss)
attributable to non-controlling interest before interest expense
(net of amount capitalized), depreciation, amortization and
accretion on assets and liabilities of Rattler Midstream Operating
LLC, its proportional depreciation and interest expense related to
equity method investments, its proportional impairments and
abandonments related to equity method investments, impairment and
abandonments, non-cash unit-based compensation expense, (gain) loss
on disposal of assets, provision for income taxes and other. The
GAAP measure most directly comparable to Adjusted EBITDA is net
income (loss). However, Adjusted EBITDA should not be considered an
alternative to net income (loss) or any other measure of financial
performance or liquidity presented in accordance with generally
accepted accounting principles in the United States ("GAAP"). The
Company excludes the items listed above from net income (loss) in
arriving at Adjusted EBITDA because these amounts can vary
substantially from company to company within our industry depending
upon accounting methods and book values of assets, capital
structures and the method by which the assets were acquired. As
such, Adjusted EBITDA as presented below may not be comparable to
similarly titled measures of other companies, and may not be
comparable to similarly titled measures in Rattler Midstream
Operating LLC’s credit agreement and in the indenture that governs
its senior notes. Certain items excluded from Adjusted EBITDA are
significant components in understanding and assessing a company’s
financial performance, such as a company’s cost of capital and tax
structure, as well as historic costs of depreciable
assets.
The following
table presents a reconciliation of net income (loss), the most
directly comparable GAAP financial measure, to Adjusted EBITDA for
each of the periods indicated: Rattler Midstream LP Adjusted EBITDA
(unaudited, in thousands) Three Months Ended June 30, Six Months
Ended June 30, 2022 2021 2022 2021 Reconciliation of Net Income
(Loss) to Adjusted EBITDA: Net income (loss) attributable to
Rattler Midstream LP ..................................... $ 11,988
$ 12,445 $ 19,919 $ 18,460 Net income (loss) attributable to
non-controlling interest ...................... 43,083 42,032
72,243 61,925 Net income (loss)
......................................................................................................
55,071 54,477 92,162 80,385 Interest expense, net of amount
capitalized ............................................ 9,126
8,235 17,810 15,545 Depreciation, amortization and accretion
............................................... 15,112 15,239
35,799 26,485 Depreciation and interest expense related to equity
method investments
...........................................................................................
15,681 10,036 30,052 20,561 Impairments and abandonments related to
equity method investments . 124 — 361 2,933 Impairment and
abandonments
............................................................... 177
— 1,259 3,371 Non-cash unit-based compensation expense
.......................................... 2,609 2,485 5,129 4,817
(Gain) loss on disposal of assets
............................................................. 1,187
5,005 1,116 5,011 (Gain) loss on sale of equity method investments
.................................. — (22,989) — (22,989) Provision
for income taxes
.....................................................................
3,330 3,539 5,714 5,210 Other
.......................................................................................................
— 22 — 34 Adjusted EBITDA
...................................................................................................
102,417 76,049 189,402 141,363 Less: Adjusted EBITDA attributable
to non-controlling interest ................ 75,560 55,084 139,814
102,219 Adjusted EBITDA attributable to Rattler Midstream LP
.................................. $ 26,857 $ 20,965 $ 49,588 $
39,144 Operating cash flow before working capital changes, which is
a supplemental non-GAAP financial measure, represents net cash
provided by operating activities as determined under GAAP without
regard to changes in operating assets and liabilities. The GAAP
financial measure most directly comparable to operating cash flow
before working capital changes is net cash provided by operating
activities. Management believes operating cash flow before working
capital changes is an accepted measure which reflects cash flow
from operating activities, additions to property, plant and
equipment and net investments in its equity method investments
across periods on a consistent basis. The Company also uses this
measure because adjusted operating cash flow relates to the timing
of cash receipts and disbursements that the Company may not control
and may not relate to the period in which the operating activities
occurred. This allows the Company to compare its operating
performance with that of other companies without regard to
financing methods and capital structure. Free Cash Flow, which is a
supplemental non-GAAP financial measure, is operating cash flow
before working capital changes net of additions to property, plant
and equipment and distributions from equity method investments. The
GAAP financial measure most directly comparable to Free Cash Flow
is net cash provided by operating activities. Management believes
that Free Cash Flow is useful to investors as it provides the
amount of cash available for reducing debt, investing in additional
capital projects or paying dividends. This measure should not be
considered as an alternative to, or more meaningful than, net cash
provided by operating activities as an indicator of operating
performance. The Company's computation of
operating
cash flow before working capital changes and Free Cash Flow may not
be comparable to other similarly titled measures of other
companies. The following tables present a reconciliation of net
cash provided by operating activities to operating cash flow before
working capital changes and Free Cash Flow: Rattler Midstream LP
Operating Cash Flow and Free Cash Flow (unaudited, in thousands)
Three Months Ended June 30, Six Months Ended June 30, 2022 2021
2022 2021 Net cash provided by operating activities
......................................... $ 73,213 $ 75,744 $
133,101 $ 128,412 Less: Changes in cash due to changes in operating
assets and liabilities: Accounts receivable—related-party
.................................... (2,238) 7,843 3,502 19,052
Accounts receivable—third-party
....................................... 6,136 1,474 1,476 72
Accounts payable and accrued liabilities
............................ 10,202 2,567 6,135 (3,525) Other
...................................................................................
(2,196) 1,017 (2,132) 2,110 Total working capital changes
........................................................... 11,904
12,901 8,981 17,709 Operating cash flow before working capital
changes ...................... 61,309 62,843 124,120 110,703
Additions to property, plant and equipment .......................
(25,180) (11,853) (43,068) (17,713) Distributions from equity
method investments ................... — — — 9,107 Free Cash Flow
....................................................................................
$ 36,129 $ 50,990 $ 81,052 $ 102,097
Investor
Contact: Adam Lawlis +1 432.221.7467 alawlis@rattlermidstream.com
Jared Carameros +1 432.247.6213 jcarameros@rattlermidstream.com
Source: Rattler Midstream LP; Diamondback Energy, Inc.