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UPDATE 1-Diamondback affiliate Viper Energy Partners files for IPO

(Adds details from filing)

May 7 (Reuters) - Viper Energy Partners LP, an affiliate of oil and gas company Diamondback Energy Inc, filed with U.S. regulators on Wednesday to raise up to $100 million in an initial public offering of common stock.

The Midland, Texas-based company, which owns interests in properties in the Permian Basin in West Texas, said most of its assets are leased out for operation and development.

Growing oil production from the Permian Basin, stretching over Texas and New Mexico, has pushed down crude costs in the region, helping oil refiners boost margins.

Viper Energy said it will use proceeds from the offering to make a distribution to its current owner, Diamondback.

The master limited partnership (MLP) structure allows companies to raise money in the stock market while having income taxed only at the unit holder level, avoiding corporate income taxes.

Viper Energy reported net income of about $3 million and royalty income of $15 million since its inception in September 2013 through December 31.

The company told the U.S Securities and Exchange Commission in a preliminary prospectus that Barclays was underwriting the IPO. (http://r.reuters.com/suj29v)

Viper Energy, which said it intends to list its common units on the Nasdaq under the symbol "VNOM", did not reveal how many shares the company planned to sell or their expected price.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

(Reporting by Amrutha Gayathri in Bangalore; Editing by Rodney Joyce)