Document:

EX-10.7

 Exhibit 10.7 

TAX SHARING AGREEMENT 

BY AND BETWEEN 

DIAMONDBACK ENERGY, INC. 

AND 
 RATTLER MIDSTREAM
OPERATING LLC 

 TAX SHARING AGREEMENT 

This Tax Sharing Agreement (the “Agreement”), dated this 28 day of May 2019, is entered into by and between
DIAMONDBACK ENERGY, INC. (“DBE”), a Delaware corporation, and RATTLER MIDSTREAM OPERATING LLC (“Rattler”), a Delaware limited liability company. 

RECITALS 
 WHEREAS,
the revised franchise tax imposed by the State of Texas under Chapter 171 of the Texas Tax Code, generally effective for reports due on or after January 1, 2008, requires taxable entities that are part of an affiliated group engaged in a
unitary business to report as a combined group; 
 WHEREAS, DBE owns a “controlling interest” in Rattler within the meaning of
Texas Tax Code §171.0001(8)(C) and expects to file Combined Returns, as required by Texas Tax Code §171.1014, for the combined group that includes DBE and Rattler; and 

WHEREAS, the Parties (as defined below) wish to set forth the general principles under which they will allocate and share various Taxes (as
defined below) and related liabilities; 
 WHEREAS, DBE, on behalf of itself and its present and future subsidiaries other than the Rattler
Group (“DBE Group”), and Rattler, on behalf of itself and its present and future subsidiaries (the “Rattler Group”), are entering into this Agreement to provide for the allocation among the DBE Group
and the Rattler Group of all responsibilities, liabilities and benefits relating to any Tax for which a Combined Return (as defined below) is filed for a taxable period including or beginning on or after the Effective Date (as defined below) and to
provide for certain other matters; 
 NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained in this
Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

ARTICLE I 
 Definitions

 1.1 Definitions. The following terms shall have the following meanings (such meanings to be equally applicable to both
the singular and the plural forms of the terms defined): 
 “Accounting Referee” is defined in Section 6.11
herein. 
 “Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto, as in effect for
the taxable period in question. 
 “Combined Group” means a group of corporations or other entities that
files a Combined Return. 

  
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 “Combined Return” means any Tax Return (other than a Tax Return for
U.S. federal income taxes) filed on a consolidated, combined (including nexus combination, worldwide combination, domestic combination, line of business combination or any other form of combination) or unitary basis that includes activities of any
member of the DBE Group and any member of the Rattler Group. 
 “DBE Group” is defined
in the Recitals to this Agreement. 
 “Effective Date” means May 28, 2019. 

“Final Determination” means the final resolution of any Tax (or other matter) for a taxable period, including related
interest or penalties, that, under applicable law, is not subject to further appeal, review or modification through proceedings or otherwise, including (i) by the expiration of a statute of limitations or a period for the filing of claims for
refunds, amending Tax Returns, appealing from adverse determinations or recovering any refund (including by offset), (ii) by a decision, judgment, decree or other order by a court of competent jurisdiction, which has become final and unappealable,
(iii) by a closing agreement, an accepted offer in compromise or a comparable agreement under laws of the particular Tax Authority, (iv) by execution of a form under the laws of a Tax Authority that is comparable to an Internal Revenue
Service Form 870 or 870-AD (excluding, however, with respect to a particular Tax Item for a particular taxable period any such form that reserves (whether by its terms or by operation of law) the right of the
taxpayer to file a claim for refund and/or the right of the Tax Authority to assert a further deficiency with respect to such Tax Item for such period) or (v) by any allowance of a refund or credit, but only after the expiration of all periods
during which such refund may be adjusted. 
 “Notice” is defined in Section 6.1 herein. 

“Party” means each of DBE and Rattler, and solely for purposes of this definition, “DBE” includes the DBE
Group and Rattler includes the Rattler Group. Each of DBE and Rattler shall cause the DBE Group and the Rattler Group, respectively, to comply with this Agreement. 

“Rattler Group” is defined in the Recitals to this Agreement. 

“Rattler Group Combined Tax Liability” means, with respect to any Tax, the Rattler Group’s liability for such Tax
owed with respect to a Combined Return for a taxable period, as determined under Section 3.2 of this Agreement. 
 “Rattler
Group Deposit” is defined in Section 3.4 herein. 
 “Rattler Group Members” means those entities
included in the Rattler Group. 
 “Rattler Group Pro Forma Combined Return” means a pro forma Tax Return or other
schedule prepared to reflect the Rattler Group Combined Tax Liability pursuant to Section 3.2 of this Agreement. 

“Reporting Entity” means the entity that is required by statute or rule to file the particular Combined
Return. 

  
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 “Tax Attribute” means a Tax Item of a member of the Rattler Group
reflected on a Combined Return that is comparable to one or more of the following attributes with respect to a U.S. federal income tax consolidated tax return: a net operating loss, a net capital loss, an unused investment credit, an unused foreign
tax credit, an excess charitable contribution, a U.S. federal minimum tax credit or a U.S. federal general business credit (but not tax basis or earnings and profits). 

“Tax Authority” means a domestic governmental authority (other than the United States) or any subdivision, agency,
commission or authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax (excluding the U.S. Internal Revenue Service). 

“Tax Controversy” means any audit, examination, dispute, suit, action, litigation or other judicial or administrative
proceeding initiated by DBE or Rattler or any Tax Authority. 
 “Tax Item” means any item of income, gain, loss,
deduction or credit, or other item reflected on a Tax Return or any Tax Attribute. 
 “Tax Return” means any return,
report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended Tax Return, claim for refund or declaration of estimated tax) required to be
supplied to, or filed with, a Tax Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax. 

“Tax” or “Taxes” means all forms of taxation, whenever created or imposed, and whether imposed
by a domestic, local, municipal, governmental, state, federation or other body, but excluding taxes imposed by the United States, and without limiting the generality of the foregoing, shall include net income, alternative or add-on minimum, gross income, sales, use, ad valorem, gross receipts, value added, franchise, profits, license, transfer, recording, withholding, payroll, employment, excise, severance, stamp, occupation, premium,
property, windfall profit, custom duty or other tax, governmental fee or like assessment or charge of any kind whatsoever, together with any related interest, penalties or other additions to tax, or additional amounts imposed by any such Tax
Authority. 
 Any term used but not capitalized herein that is defined in the Code or in the Treasury Regulations thereunder shall, to the
extent required by the context of the provision at issue, have the meaning assigned to it in the Code or such regulation. 
 ARTICLE II

 Preparation and Filing of Tax Returns 
  

	 	2.1	 Manner of Filing. 

(a)    For periods that include the Effective Date and periods after the Effective Date, DBE shall have the
sole and exclusive responsibility for the preparation and filing of, and shall cause the Reporting Entity to prepare and file, all Combined Returns. DBE shall be authorized to take, in its sole discretion, any and all action necessary or incidental
to the preparation and filing of a Combined Return, including, without limitation, (i) making 

  
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elections and adopting accounting methods, (ii) filing all extensions of time, including extensions of time for payment of tax, (iii) filing claims for refund or credit or
(iv) giving waivers or bonds. 
 (b)    For periods that include the Effective Date and periods
after the Effective Date, the Rattler Group shall have the sole and exclusive responsibility for the preparation and filing of, and shall prepare and file or cause to be prepared and filed, all Tax Returns of the Rattler Group Members that are not
Combined Returns. 
 (c)    DBE shall have sole discretion to include, or cause to be included, in a
Combined Return for any Tax any member of the Rattler Group for which inclusion in such Combined Return is elective; provided, however, that the Rattler Group Combined Tax Liability for any period shall not exceed the aggregate of (x) each such
elective Rattler Group Member’s liability for such Tax for such period, computed as if such Rattler Group Member were not included in such Combined Return and (y) the Rattler Group Combined Tax Liability calculated for the Rattler Group
Members for which inclusion is not elective. DBE shall provide pro forma Tax Returns pursuant to Section 3.5 of this Agreement to support the calculation of the amount of any decrease in the Rattler Group Combined Tax Liability pursuant to this
Section 2.1(c). 
 2.2    Franchise Tax Taxable Period. References to “taxable period” for
any franchise or other doing business Tax shall mean the taxable period during which the income, operations, assets or capital comprising the base of such Tax is measured, regardless of whether the right to do business for another taxable period is
obtained by the payment of such franchise Tax. 
 ARTICLE III 

Allocation of Taxes 

3.1    Liability of the Rattler Group for Combined Taxes. For each Tax for each taxable period that includes
or begins on or after the Effective Date and for which a member of the Rattler Group is included in a Combined Return, Rattler, for so long as it is included in a Combined Return, shall be liable to DBE for an amount equal to the Rattler Group
Combined Tax Liability in respect of such Tax. If Rattler ceases to be included on a Combined Return during a tax year, Rattler shall calculate and determine its share of the Combined Tax Liability to be that portion of the Rattler Group’s
separate return tax liability that is allocable to the portion of the tax year in which Rattler was included on a Combined Return. 

3.2    Rattler Group Combined Tax Liability. With respect to each Tax for each taxable period that includes
or begins on or after the Effective Date and for which a member of the Rattler Group is included in a Combined Return, the Rattler Group Combined Tax Liability for such Tax for such taxable period shall be the Tax for such taxable period as
determined on a Rattler Group Pro Forma Combined Return prepared: 
 (a)    by including only the Tax
Items of the members of the Rattler Group that are included in the Combined Return and computing the liability of the Rattler Group Members for such Tax as if such Rattler Group Members were included in a separate combined, consolidated or unitary
return that includes only the Rattler Group Members; 

  
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 (b)    except as provided in Section 3.2(e) hereof,
using all elections, accounting methods and conventions used on the Combined Return for such period; 

(c)    applying the Tax rate in effect for the Combined Return of the Combined Group for such taxable
period; 
 (d)    assuming that the Rattler Group elects not to carry back any net operating losses; and

 (e)    assuming that the Rattler Group’s utilization of any Tax Attribute carryforward or
carryback is limited to the Tax Attributes of the Rattler Group that would be available if the Rattler Group Combined Tax Liability for each taxable period ending after the Effective Date were determined in accordance with this Section 3.2.

 3.3    Preparation and Delivery of Pro Forma Tax Returns. Not later than 90 days following the date on
which a Combined Return is filed with the appropriate Tax Authority, DBE shall prepare and deliver to Rattler the related Rattler Group Pro Forma Combined Return calculating the Rattler Group Combined Tax Liability attributable to the period covered
by such filed Combined Return. 
 3.4    Payment of Tax. DBE shall timely pay (or shall cause to be timely
paid) any Tax reflected on a Combined Return and hold Rattler harmless for all liability for such Tax. In the event DBE is required to make an estimated payment or deposit of any Tax of any Combined Group which includes any member of the Rattler
Group, DBE shall calculate the portion, if any, of such estimated payment or deposit attributable to the Rattler Group using a methodology similar to that described in Section 3.2 (the “Rattler Group Deposit”) and shall
present such calculation to Rattler. Within 5 days thereafter, Rattler shall pay the Rattler Group Deposit to DBE. Within 30 days after delivery by DBE of a Rattler Group Pro Forma Combined Return to Rattler calculating the Rattler Group Combined
Tax Liability with respect to a Combined Return, Rattler shall pay to DBE such Rattler Group Combined Tax Liability less the amount of any Rattler Group Deposit relating to the same Combined Return. 

3.5    Subsequent Changes in Treatment of Tax Items. With respect to any Combined Return for any taxable
period beginning on or after the Effective Date, in the event of a change in the treatment of any Tax Item of any member of a Combined Group as a result of a Final Determination, within 30 days following such Final Determination (i) DBE shall
calculate the change, if any, to the Rattler Group Combined Tax Liability resulting from such change, (ii) DBE shall pay any decrease in the Rattler Group Combined Tax Liability to Rattler and (iii) Rattler shall pay any increase in the
Rattler Group Combined Tax Liability to DBE. 
 ARTICLE IV 

Control of Tax Proceedings; Cooperation and Exchange of Information 

4.1    Control of Proceedings. Except as provided in this Article IV, DBE shall have full responsibility and
discretion in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing responsibility under this Agreement as well as all Tax Returns for all taxable periods ending before the Effective Date. Rattler shall
have full responsibility and discretion in handling, settling or contesting any Tax Controversy involving a Tax Return for which it has filing 

  
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responsibility under this Agreement. Except as otherwise provided in this Article IV, any costs incurred in handling, settling or contesting any Tax Controversy shall be borne by the Party having
full responsibility and discretion thereof. 
 4.2    Cooperation and Exchange of Information. 

(a)    Each Party shall cooperate fully at such time and to the extent reasonably requested by any other Party in
connection with the preparation and filing of any Tax Return or claim for refund, or the conduct of any audit, dispute, proceeding, suit or action concerning any issues or other matters considered in this Agreement. Such cooperation shall include,
without limitation, the following: (i) the retention and provision on demand of Tax Returns, books, records (including those concerning ownership and Tax basis of property which a Party may possess), documentation or other information relating
to the Tax Returns, including accompanying schedules, related workpapers and documents relating to rulings or other determinations by Taxing Authorities, until the expiration of the applicable statute of limitations (giving effect to any extension,
waiver or mitigation thereof); (ii) the provision of additional information, including an explanation of material provided under clause (i) of this Section 4.2(a), to the extent such information is necessary or reasonably helpful in
connection with the foregoing; (iii) the execution of any document that may be necessary or reasonably helpful in connection with the filing of a Tax Return by DBE, Rattler or of their respective subsidiaries, or in connection with any audit,
dispute, proceeding, suit or action and (iv) such Party’s commercially reasonable efforts to obtain any documentation from a governmental authority or a third party that may be necessary or reasonably helpful in connection with any of the
foregoing. 
 (b)    Each Party shall make its employees and facilities available on a reasonable and mutually
convenient basis in connection with any of the foregoing matters. 
 (c)    If any Party fails to provide any
information requested pursuant to Section 4.2 hereof within a reasonable period, as determined in good faith by the Party requesting the information, then the requesting Party shall have the right to engage a public accounting firm to gather
such information, provided that 30 days’ prior written notice is given to the unresponsive Party. If the unresponsive Party fails to provide the requested information within 30 days of receipt of such notice, then such unresponsive Party shall
permit the requesting Party’s public accounting firm full access to all appropriate records or other information as reasonably necessary to comply with this Section 4.2 and shall reimburse the requesting Party or pay directly all costs
connected with the requesting Party’s engagement of the public accounting firm. 
 ARTICLE V 

Warranties and Representations; Payment Obligations 

5.1    Warranties and Representations Relating to Actions of DBE and Rattler. Each of DBE and Rattler
warrants and represents to the other that: 
 (a)    in the case of DBE, it is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite power to carry out the transactions contemplated by this Agreement; 

(b)    in the case of Rattler, it is a limited liability company duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all requisite power to carry out the transactions contemplated by this Agreement; 

  
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 (c)    it has duly and validly taken all action
necessary to authorize the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby; 

(d)    this Agreement has been duly executed and delivered by it and constitutes its legal, valid and
binding obligation enforceable in accordance with its terms subject, as to the enforcement of remedies, to (i) applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws affecting the enforcement of creditors’
rights generally from time to time in effect and (ii) general principles of equity, whether enforcement is sought in a proceeding at law or in equity; and 

(e)    the execution and delivery of this Agreement, the consummation of the transactions contemplated
hereby or the compliance with any of the provisions of this Agreement will not (i) conflict with or result in a breach of any provision of its certificate of incorporation, by-laws, certificate of
formation, limited liability company agreement, as the case may be, (ii) breach, violate or result in a default under any of the terms of any agreement or other instrument or obligation to which it is a party or by which it or any of its
properties or assets may be bound or (iii) violate any order, writ, injunction, decree, statute, rule or regulation applicable to it or affecting any of its properties or assets. 

5.2    Calculation of Payment Obligations. Except as otherwise provided under this Agreement, to the extent
that the payor Party has a payment obligation to the payee Party pursuant to this Agreement, the payee Party shall provide the payor Party with its calculation of the amount of such obligation. The documentation of such calculation shall provide
sufficient detail to permit the payor Party to reasonably understand the calculation. All payment obligations shall be made to the payee Party or to the appropriate Tax Authority as specified by the payee Party within 30 days after delivery by the
payee Party to the payor Party of written notice of a payment obligation. Any disputes with respect to payment obligations shall be resolved in accordance with Section 6.11 below. 

5.3    Prompt Performance. All actions required to be taken by any Party under this Agreement shall be
performed within the time prescribed for performance in this Agreement or if no period is prescribed, such actions shall be performed promptly. 

5.4    Interest. Payments pursuant to this Agreement that are not made within the period prescribed therefor
in this Agreement shall bear interest (compounded daily) from and including the date immediately following the last date of such period through and including the date of payment at a rate equal to the U.S. federal short-term rate or rates
established pursuant to Section 6621 of the Code for the period during which such payment is due but unpaid. 

5.5    Tax Records. The Parties to this Agreement hereby agree to retain and provide on proper demand by any
Tax Authority (subject to any applicable privileges) the books, records, documentation and other information relating to any Tax Return until the later of (i) the expiration of the applicable statute of limitations (giving effect to any
extension, waiver or mitigation thereof), (ii) the date specified in an applicable records retention agreement entered into with a Tax Authority, (iii) a Final Determination made with respect to such Tax Return and (iv) the final
resolution of any claim made under this Agreement for which such information is relevant. 

  
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 5.6    Continuing Covenants. Each Party agrees
(i) not to take any action reasonably expected to result in a new or changed Tax Item that is detrimental to any other Party and (ii) to take any action reasonably requested by any other Party that would reasonably be expected to result in
a new or changed Tax Item that produces a benefit or avoids a detriment to such other Party; provided that such action does not result in any additional cost not fully compensated for by the requesting Party. The Parties hereby acknowledge that the
preceding sentence is not intended to limit, and therefore shall not apply to, the rights of the Parties with respect to matters otherwise covered by this Agreement. 

ARTICLE VI 

Miscellaneous Provisions 

6.1    Notice. Any notice, demand, claim or other communication required or permitted to be given under this
Agreement (a “Notice”) shall be in writing and may be personally served provided a receipt is obtained therefor, or may be sent by certified mail return receipt requested postage prepaid, to the Parties at the following
addresses (or at such other address as one Party may specify by notice to any other Party): 
 DBE at: 

Diamondback Energy, Inc. 
 500
West Texas, Suite 1200 
 Midland, Texas 79701 

Attention: General Counsel 

Rattler at: 
 Rattler Midstream
Operating LLC 
 500 West Texas, Suite 1200 

Midland, Texas 79701 
 Attention:
General Counsel 
 A Notice which is delivered personally shall be deemed given as of the date specified on the written receipt therefor. A
Notice mailed as provided herein shall be deemed given on the third business day following the date so mailed. Notification of a change of address may be given by any Party to another in the manner provided in this Section 6.1 for providing a
Notice. 
 6.2    Required Payments. Unless otherwise provided in this Agreement, any payment of Tax
required shall be due within 30 days of a Final Determination of the amount of such Tax. 

6.3    Injunctions. The Parties acknowledge that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. The Parties hereto shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to
enforce specifically the terms and provisions of this Agreement in any court having jurisdiction, such remedy being in addition to any other remedy to which they may be entitled at law or in equity. 

  
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 6.4    Further Assurances. Subject to the provisions
hereof, the Parties hereto shall make, execute, acknowledge and deliver such other instruments and documents, and take all such other actions, as may be reasonably required in order to effectuate the purposes of this Agreement and to consummate the
transactions contemplated hereby. Subject to the provisions hereof, each of the Parties shall, in connection with entering into this Agreement, perform its obligations hereunder and take any and all actions relating hereto, comply with all
applicable laws, regulations, orders and decrees, obtain all required consents and approvals and make all required filings with any governmental agency, other regulatory or administrative agency, commission or similar authority and promptly provide
the other Parties with all such information as such Parties may reasonably request in order to be able to comply with the provisions of this sentence. 

6.5    Parties in Interest. Except as herein otherwise specifically provided, nothing in this Agreement
expressed or implied is intended to confer any right or benefit upon any person, firm or corporation other than the Parties and their respective successors and permitted assigns. 

6.6    Setoff. Except as provided by Section 2.1(c) of this Agreement, all payments to be made under
this Agreement shall be made without setoff, counterclaim or withholding, all of which are expressly waived. 

6.7    Change of Law. If, due to any change in applicable law or regulations or the interpretation thereof
by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or any transaction contemplated hereby shall become impracticable or impossible, the Parties
hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such provision. 

6.8    Termination and Survival. Notwithstanding anything in this Agreement to the contrary, this Agreement
shall remain in effect and its provisions shall survive for the full period of all applicable statutes of limitation (giving effect to any extension, waiver or mitigation thereof) or until otherwise agreed to in writing by DBE and Rattler, or their
successors. 
 6.9    Amendments; No Waivers. 

(a)    Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver
is in writing and signed, in the case of an amendment, by DBE and Rattler, or in the case of a waiver, by the Party against whom the waiver is to be effective. 

(b)    No failure or delay by any Party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

6.10    Governing Law and Interpretation. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to agreements made and to be performed in the State of Delaware. 

6.11    Resolution of Certain Disputes. Any disagreement between the Parties with respect to any matter that
is the subject of this Agreement, including, without limitation, any disagreement 

  
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with respect to any calculation or other determinations by DBE hereunder, which is not resolved by mutual agreement of the Parties, shall be resolved by a nationally recognized independent
accounting firm chosen by and mutually acceptable to the Parties hereto (an “Accounting Referee”). Such Accounting Referee shall be chosen by the Parties within fifteen (15) business days from the date on which one Party
serves written notice on another Party requesting the appointment of an Accounting Referee, provided that such notice specifically describes the calculations to be considered and resolved by the Accounting Referee. In the event the Parties cannot
agree on the selection of an Accounting Referee, then the Accounting Referee shall be any office or branch of the public accounting firm of PricewaterhouseCoopers LLP. The Accounting Referee shall resolve any such disagreements as specified in the
notice within 30 days of appointment; provided, however, that no Party shall be required to deliver any document or take any other action pursuant to this Section 6.11 if it determines that such action would result in the waiver of any legal
privilege or any detriment to its business. Any resolution of an issue submitted to the Accounting Referee shall be final and binding on the Parties hereto without further recourse. The Parties shall share the costs and fees of the Accounting
Referee equally. 
 6.12    Confidentiality. Except to the extent required to protect a Party’s
interests in a Tax Controversy, each Party shall hold and shall cause its consultants and advisors to hold in strict confidence, unless compelled to disclose by judicial or administrative process or, in the opinion of its counsel, by other
requirements of law, all information (other than any such information relating solely to the business or affairs of such Party) concerning another Party or its representatives pursuant to this Agreement (except to the extent that such information
can be shown to have been (i) previously known by the Party to which it was furnished, (ii) in the public domain through no fault of such Party or (iii) later lawfully acquired from other sources by the Party to which it was
furnished), and each Party shall not release or disclose such information to any other person, except its auditors, attorneys, financial advisors, bankers and other consultants and advisors who shall be advised of the provisions of this Agreement.
Each Party shall be deemed to have satisfied its obligation to hold confidential information concerning or supplied by another Party if it exercises the same care as it takes to preserve confidentiality for its own similar information. 

6.13    Costs, Expenses and Attorneys’ Fees. Except as expressly set forth in this Agreement, each
Party shall bear its own costs and expenses incurred pursuant to this Agreement. In the event a Party to this Agreement brings an action or proceeding for the breach or enforcement of this Agreement, the prevailing party in such action, proceeding
or appeal, whether or not such action, proceeding or appeal proceeds to final judgment, shall be entitled to recover as an element of its costs, and not as damages, such reasonable attorneys’ fees as may be awarded in the action, proceeding or
appeal in addition to whatever other relief the prevailing party may be entitled. For purposes of this Section 6.13, the “prevailing party” shall be the Party who is entitled to recover its costs; a Party not entitled to recover its
costs shall not recover attorneys’ fees. No sum for attorneys’ fees shall be counted in calculating the amount of the judgment for purposes of determining whether a Party is entitled to recover its costs or attorneys’ fees. 

6.14    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and the same instrument. 

6.15    Severability. The Parties hereby agree that, if any provision of this Agreement should be
adjudicated to be invalid or unenforceable, such provision shall be deemed deleted herefrom with 

  
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respect, and only with respect, to the operation of such provision in the particular jurisdiction in which such adjudication was made, and only to the extent of the invalidity, and any such
invalidity or unenforceability in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. All other remaining provisions of this Agreement shall remain in full force and effect for the
particular jurisdiction and all other jurisdictions. 
 6.16    Entire Agreement. 

(a)    This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and
supersedes all other agreements, whether or not written, in respect of any Tax between the DBE Group and the Rattler Group. 

(b)    In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of any
other agreement between the DBE Group and the Rattler Group, the provisions of this Agreement shall take precedence and to such extent shall be deemed to supersede such conflicting provisions under the other agreement. 

6.17    Assignment. This Agreement is being entered into by DBE and Rattler on behalf of themselves and each
member of the DBE Group and the Rattler Group, respectively. This Agreement shall constitute a direct obligation of each such member and shall be deemed to have been readopted and affirmed on behalf of any entity that becomes a member of the DBE
Group or the Rattler Group in the future. Each of DBE and Rattler hereby guarantee the performance of all actions, agreements and obligations provided for under this Agreement of each member of the DBE Group and the Rattler Group, respectively. Each
of DBE and Rattler shall, upon the written request of the other, cause any of their respective group members to formally execute this Agreement. This Agreement shall be binding upon, and shall inure to the benefit of, the successors, assigns and
persons controlling any of the entities bound hereby for so long as such successors, assigns or controlling persons are members of the DBE Group or the Rattler Group or their successors and assigns. 

6.18    Fair Meaning. This Agreement shall be construed in accordance with its fair meaning and shall not be
construed strictly against the drafter. 
 6.19    Titles and Headings. Titles and headings to sections
herein are inserted for the convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 

6.20    Construction. In this Agreement, unless the context otherwise requires, the terms
“herein,” “hereof” and “hereunder” refer to this Agreement. 
 [Signature Page Follows.] 

  
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 IN WITNESS WHEREOF the Parties hereto have executed and delivered this Agreement as of the
day and year first above written. 
  

			
	Diamondback Energy, Inc.
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Accounting Officer and Assistant Secretary
	
	Rattler Midstream Operating LLC
		
	By:	 	 /s/ Teresa L. Dick

	Name:	 	Teresa L. Dick
	Title:	 	Executive Vice President, Chief Financial
		 	Officer and Assistant Secretary

 [Signature Page to Tax Sharing Agreement]EX-10.8

 Exhibit 10.8 

RATTLER MIDSTREAM LP 

LONG-TERM INCENTIVE PLAN 

FORM OF PHANTOM UNIT AGREEMENT 

THIS PHANTOM UNIT AGREEMENT (this “Agreement”) is made and entered into by and between Rattler Midstream GP
LLC, a Delaware limited liability company (the “General Partner”), and                         
(“you”), effective as of              (the “Date of Grant”). 

WHEREAS, Rattler Midstream LP, a Delaware limited partnership (the “Partnership”), acting through the board of
directors of the General Partner (the “Board”), has adopted the Rattler Midstream LP Long-Term Incentive Plan, as it may be amended from time to time (the “Plan”), to, among other things, attract,
retain and motivate certain directors, employees and officers of the Partnership, the General Partner and their respective Affiliates (collectively, the “Partnership Entities”); and 

WHEREAS, the Board has authorized the grant of Phantom Units under the Plan to you as part of your compensation for services provided
to the Partnership Entities. 
 NOW, THEREFORE, in consideration of the mutual covenants set forth herein and for other valuable
consideration hereinafter set forth, the parties agree as follows: 
 1.    Grant of Phantom Units.
The General Partner hereby grants to you, effective as of the Date of Grant, the right (the “Award”) to receive an aggregate of
                 Units (the “Phantom Units”) on the terms and conditions set forth herein and in the Plan, which Plan is incorporated
herein by reference as part of this Agreement. Capitalized terms used in this Agreement but not otherwise defined herein shall have the meanings given to such terms in the Plan, unless the context requires otherwise. 

2.    Phantom Units. Each Phantom Unit under the Award is a notional Unit granted under
Section 6.4 of the Plan, which upon vesting entitles you to receive, at the time of settlement (which may or may not be coterminous with the vesting schedule of the Award), a Partnership Unit. 

3.    Vesting of Phantom Units. Phantom Units shall be deemed “Nonvested Phantom
Units” unless and until they have become “Vested Phantom Units” in accordance with this Section 3. 

 (a)    Vesting Schedule. Subject to the other terms and
conditions set forth herein, the Phantom Units granted pursuant to this Agreement will become Vested Phantom Units in accordance with the following schedule, provided that you remain in Continuous Service with the Partnership Entities until the
applicable vesting dates: 
  

			
	 Date Phantom Units Become

Vested Phantom Units
	  	 Number of Phantom Units that

Become Vested Phantom Units

	                    , 2020	  	
	                    , 2021	  	
	                    , 2022	  	
	                    , 2023	  	
	                    , 2024	  	

 (b)    Change of Control. Notwithstanding the above vesting schedule, upon
the occurrence of a Change of Control prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, all of Phantom Units subject to this Agreement will immediately become Vested Phantom Units. As used in this
Section 3(b), the term “Change of Control” means a Change of Control as defined in the Plan even if such Change of Control does not also constitute a “change in the ownership of a corporation,” a “change in the
effective control of a corporation,” or a “change in the ownership of a substantial portion of a corporation’s assets,” in each case, within the meaning of § 1.409A-3(i)(5) of the 409A
Regulations. 
 (c)    Termination of Employment. 

(i)    General. Except as provided in Section 3(c)(ii) below, notwithstanding anything to the
contrary in the foregoing provisions of this Section 3, in the event your Continuous Service with the Partnership Entities is terminated prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, then
all of your Nonvested Phantom Units will remain unvested, will become null and void and will be forfeited as of the date of such termination. 

(ii)    Death and Disability. If your Continuous Service with the Partnership Entities is
terminated due to death or Disability prior to the date all Phantom Units granted pursuant to this Agreement become Vested Phantom Units, then all Phantom Units subject to this Agreement will immediately become Vested Phantom Units as of your
Continuous Service termination date. As used in this Section 3(c)(ii), “Disability” means your inability to substantially perform your duties to the General Partner, the Partnership, or any Affiliate of either by reason
of a medically determinable physical or mental impairment that is expected to last for a period of six months or longer or to result in death. 

  
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 4.    Settlement and Payment of Phantom Units. 

(a)    Time of Settlement. Subject to your satisfaction of the applicable tax withholding obligations of
Section 6 and the requirements Section 4(b) below, Vested Phantom Units will be settled upon the earlier to occur of: 

(i)    the following schedule: 
  

			
	 Date Phantom Units are
Settled
	  	 Number of Phantom Units that

are Settled by Issuance of Units

	                    , 2020	  	
	                    , 2021	  	
	                    , 2022	  	
	                    , 2023	  	
	                    , 2024	  	

 or 

(ii) the date a Change in Control occurs (the earliest occurring of such events, the “Settlement
Date”). The term “Change of Control” means a Change of Control as defined in the Plan. 

(b)    Extension of Settlement Date. Notwithstanding the foregoing provisions of this Section 4, in the
event the issuance and delivery of Units on any Settlement Date would violate any applicable Federal, state, local or foreign law (including if, at the time of a proposed settlement, there shall be an effective registration statement registering
under the Securities Act of 1933, as amended (the “Securities Act”), the issuance of Units upon vesting of Awards under the Plan (the “Registration Statement”), and there shall have occurred an event
which makes any statement made in the Registration Statement, related prospectus or any document incorporated therein by reference untrue in any material respect or which requires the making of any changes in such Registration Statement, prospectus
or other documents so that they will not contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading), the General Partner may specify
another date, during a 30 day period beginning on the date the issuance and delivery of Units for your Vested Phantom Units, or any portion thereof, would first no longer violate an applicable federal, state, local or foreign law, as the Settlement
Date for your Vested Phantom Units, or portion thereof, but not later than two and one-half months after the end of the calendar year in which such Award becomes Vested Phantom Units. 

(c)    Delivery of Units. No fractional Units shall be issued with respect to Vested Phantom Units; rather,
you will receive a cash payment for such amount as is necessary to eliminate fractional Units and effect the issuance and acceptance of only whole Units. Unless and until a certificate or certificates representing such Units shall have been issued
by the Partnership to you or the transfer of such Units shall be entered in the Partnership’s ledger or otherwise properly reflected in the Partnership’s books and records, you shall not be or have any of the rights

  
 3 

 
or privileges of a unitholder of the Partnership with respect to Units acquirable upon vesting of the Award. The Partnership will not have any obligation to settle the vesting of any Award by
transfer of such Units unless and until the General Partner receives the full amount of money as the General Partner may require to meet its withholding obligation under applicable tax laws or regulations and to satisfy the tax withholding
obligations of Section 6 hereof. 
 (d)    Distribution Equivalents. If the Partnership pays any cash
distribution to its outstanding Partnership Unit holders for which the record date occurs after the Date of Grant, the Administrator will pay you as of the distribution payment date an amount equal to the amount of the distribution paid by the
Partnership with respect to a single Partnership Unit multiplied by the number of Phantom Units under this Agreement that are unvested as of that record date and that are vested as of that record date but have not been settled under the payment
terms of Section 4 (“Distribution Equivalents”). Distribution Equivalents will vest and be paid to the Participant on the distribution payment date (but not later than two and
one-half months after the end of the year that includes the distribution record date) if Participant is in the employ of, or a service provider to, the Partnership Entities on the distribution record date
declared by the Partnership. 
 5.    Transferability. This Agreement and the Phantom Units granted
hereunder will not be transferrable or assignable by you other than by will or the laws of descent and distribution, except to the extent approved by the Committee in accordance with the terms of the Plan. Notwithstanding the foregoing, if you are
serving as a Designated Director of the General Partner, you may enter into a transfer agreement that transfers this Award and requires issuance of the Units in settlement of the Vested Phantom Units to an entity, including without limitation a
private equity or other investment fund that is an investor in the Partnership (an “Investor”), subject to compliance with all applicable securities laws. A “Designated Director” is a Director of the
General Partner who is an employee or partner of an Investor and who is treated as serving on behalf of such Investor because the services provided to the General Partner depend upon the exercise of expertise and are similar to those that are
performed for the Investor and the Investor has established a policy that provides that the Investor is entitled to the benefit of any compensation provided for services provided as a Director of any portfolio company. 

6.    Payment of Taxes. To the extent that the settlement of this Award or the disposition of Units
acquired by vesting of this Award results in compensation income or wages to you for federal, state or local tax purposes that are subject to withholding requirements, you shall deliver to the General Partner at the time of such settlement or
disposition such amount of money as the General Partner may require to meet its withholding obligation under applicable tax laws or regulations. You may satisfy such tax withholding obligation (i) in cash (including by certified check, bank
draft or money order, or wire transfer of immediately available funds); or (ii) in the Committee’s discretion and on such terms as the Committee approves: (A) by delivering or constructively tendering by means of attestation whereby
you identify for delivery specific duly endorsed Units having a Fair Market Value not in excess of the aggregate withholding obligation determined based on the maximum applicable statutory tax rates for U.S. federal, state and/or local tax purposes,
including payroll taxes (provided that any Units used for this purpose must have been held by you for such minimum period of time, if any, as may be established from time to time by the Committee), (B) by notice of net issuance including a statement
directing the Partnership to retain from transfer the number of Units with a Fair Market Value not in excess of the aggregate withholding obligation determined based on the maximum applicable statutory tax rates for U.S. federal, state and/or local
tax purposes, including payroll taxes, in which case the Award will be 

  
 4 

 
surrendered and cancelled with respect to the number of Units retained by the Partnership, or (C) to the extent permissible under applicable law, through delivery of irrevocable instructions
to a broker to sell a sufficient number of the Units being settled to cover the aggregate withholding obligation and delivery to the General Partner on behalf of the Partnership (on the same day that the Units issuable upon vesting are delivered) of
the amount of sale proceeds required to pay the aggregate withholding obligation; or (iii) any combination of the foregoing. In the event the Committee subsequently determines that the amount paid or withheld as payment of any tax withholding
obligations is insufficient to discharge the tax withholding obligation, you will be required to pay to the General Partner, immediately upon the Committee’s request, the amount of that deficiency. No Units will be transferred to you pursuant
to Section 4(c) until the full amount of any required tax withholding obligation has been received by the General Partner. 

7.    Nonqualified Deferred Compensation Rules. The intent of the parties is that the Award and
related rights under this Agreement will be exempt under Section 409A of the Code and the 409A Regulations as a short-term deferral and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance
therewith. In the event the Award is subject to Section 409A, the General Partner, the Partnership and you shall take commercially reasonable efforts to reform or amend any provision hereof to the extent it is reasonably determined that such
provision would or could reasonably be expected to cause you to incur any additional tax or interest under Section 409A or the 409A Regulations to try to comply with the requirements of Section 409A and the 409A Regulations through good
faith modifications, in any case, to the minimum extent reasonably appropriate to conform with such requirements; provided, that any such modification shall not increase the cost or liability to the General Partner or the Partnership. To the extent
that any provision hereof is modified in order to comply with Section 409A and the 409A Regulations, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic
benefit to the General Partner, the Partnership and you of the applicable provision without violating the provisions of Section 409A and the 409A Regulations. Notwithstanding the foregoing provisions of this Section 7, you are responsible
for any and all taxes (including any taxes imposed under Section 409A of the Code) associated with the grant or vesting of, or otherwise with respect to, the Award and matters related thereto. For purposes of Section 409A of the Code, each
payment or amount due under this Agreement shall be considered a separate payment. 

8.    Miscellaneous. 

(a)    No Right to Continued Service. This Award shall not be construed to confer upon you any right to
continue as an employee of or other service provider to the Partnership Entities. Any question as to whether and when there has been a termination of Continuous Service shall be determined by the Committee and its determination shall be final and
binding. Records of the Partnership Entities regarding your period of Continuous Service, termination of Continuous Service, leaves of absence and other matters shall be conclusive for all purposes hereunder, unless determined by the Committee to be
incorrect. 
 (b)    Administration. This Agreement shall at all times be subject to the terms and
conditions of the Plan. The Committee shall have sole and complete discretion with respect to all matters reserved to it by the Plan and decisions of the Board or a majority of the members of the Committee designated to administer the Plan with
respect thereto and to this Agreement shall be final and binding upon you and the Partnership Entities. In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control. 

  
 5 

 (c)    No Liability for Good Faith Determinations. The
Partnership Entities, the members of the Board and the Committee, shall not be liable for any act, omission or determination taken or made in good faith with respect to this Agreement or the Award granted hereunder. 

(d)    No Guarantee of Interests. The Partnership Entities the members of the Board and the Committee, do
not guarantee the Units from loss or depreciation. 
 (e)    Severability. If any provision of this
Agreement is held to be illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the
illegal or invalid provision had never been included herein. 
 (f)    Binding Effect. This Agreement
shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Partnership Entities and their successors and assigns. 

(g)    Construction. The titles and headings of sections are included for convenience of reference only and
are not to be considered in construction of the provisions hereof. Words used in the masculine shall apply to the feminine where applicable and whenever the context of this Agreement dictates, the plural shall be read as the singular and the
singular as the plural. 
 (h)    Governing Law. All questions arising with respect to the provisions of
this Agreement shall be determined by application of the laws of the State of Delaware without regard to choice of law principles thereunder, except to the extent Delaware law is preempted by federal law. 

(i)    Amendment. This Agreement may be amended by the Committee; provided, however, that, unless otherwise
provided in the Plan, no such amendment may materially reduce your rights or benefits inherent in this Agreement prior to such amendment without your express written consent. For the avoidance of doubt, a cancellation of all or a part of this Award
where you receive a payment equal in value to the Fair Market Value of the vested Award will not constitute an impairment of your rights that requires your consent. 

(j)    Furnish Information. You agree to furnish to the General Partner or the Partnership all information
requested by them to enable the Partnership Entities to comply with any reporting or other requirements imposed upon them by or under any applicable statute or regulation. 

(k)    Execution of Receipts and Releases. Any payment of cash or any issuance or transfer of Units or other
property to you, or to your legal representative, heir, legatee or distributee, shall, to the extent thereof, be in full satisfaction of all claims of such persons hereunder. The Committee may require you or your legal representative, heir, legatee
or distributee, as a condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine. 

  
 6 

 (l)    Consent to Electronic Delivery; Electronic
Signature. In lieu of receiving documents in paper format, you agree, to the fullest extent permitted by law, to accept electronic delivery of any documents that the Partnership Entities may be required to deliver (including, without
limitation, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award made or offered by
the Partnership. Electronic delivery may be via an electronic mail system of the Partnership Entities or by reference to a location on a Partnership intranet to which you have access. You hereby consent to any and all procedures the Partnership
Entities have established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Partnership Entities may be required to deliver, and agree that your electronic signature is the same as, and
shall have the same force and effect as, your manual signature. 
 [Signature page follows.] 

  
 7 

 IN WITNESS WHEREOF, the General Partner has caused this Agreement to be executed by
its duly authorized agent effective as of the date first written above. 
  

									
		 		 	RATTLER MIDSTREAM GP LLC
					
	Dated:	 	 	 		 	By:	 	 
		 		 		 		 	Travis D. Stice, Chief Executive Officer

 By your signature below and the signature of the General Partner’s representative above, you and the
General Partner agree to be bound by all of the terms and conditions of this Phantom Unit Agreement and the Plan (incorporated herein by this reference as if set forth in full in this document). By executing this Phantom Unit Agreement, you hereby
irrevocably elect to accept the Phantom Unit rights granted pursuant to this Phantom Unit Agreement and to receive the Award for Units of Rattler Midstream LP designated above subject to the terms of the Plan and this Phantom Unit Agreement. 

 

									
		 		 	AWARD RECIPIENT
					
	Dated:	 	 	 		 	    	 	 

  
 [Signature Page to
Phantom Unit Award Agreement]

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