Viper Energy Partners LP (VNOM) Reports Q3 2023 Earnings: Net Income of $78. ...
Viper Energy Partners LP (NASDAQ:VNOM) reported a consolidated net income of $207.2 million for Q3 2023, with net income attributable to the company standing at $78.6 million.
The company's Q3 2023 average production reached a record high of 22,141 bo/d (40,446 boe/d), marking an increase of 4.7% from Q2 2023 and 11.4% year over year.
VNOM announced its conversion into a Delaware Corporation, effective November 13, 2023.
The company increased its borrowing base from $1.0 billion to $1.3 billion and extended its maturity from June 2, 2025, to September 22, 2028.
On November 6, 2023, Viper Energy Partners LP (NASDAQ:VNOM), a subsidiary of Diamondback Energy, Inc., announced its financial and operating results for the third quarter ended September 30, 2023. The company also announced its conversion from a Delaware limited partnership into a Delaware corporation, following the approval by the Board of Directors of Vipers General Partner.
Financial Highlights
VNOM reported a Q3 2023 consolidated net income of $207.2 million, with net income attributable to the company standing at $78.6 million, or $1.11 per common unit. The company received $97.4 million in lease bonus income, marking a significant financial achievement. The Q3 2023 cash available for distribution to Vipers common units was $59.4 million, or $0.84 per common unit.
The company declared a Q3 2023 base cash distribution of $0.27 per common unit, implying a 3.8% annualized yield based on the November 3, 2023 unit closing price of $28.32. The Q3 2023 variable cash distribution was $0.30 per common unit, with a total base-plus-variable distribution of $0.57 per common unit, implying an 8.1% annualized yield based on the November 3, 2023 unit closing price of $28.32.
Operational Highlights
VNOM reported a Q3 2023 average production of 22,141 bo/d (40,446 boe/d), an increase of 4.7% from Q2 2023 and 11.4% year over year, marking the highest in the company's history. The company also repurchased 0.4 million common units in Q3 2023 for $9.6 million, excluding excise tax (average price of $26.22 per unit). The total Q3 2023 return of capital to LP unitholders of $44.5 million, or $0.63 per common unit, represents 75% of cash available for distribution from unit repurchases and the declared base-plus-variable distribution.
Travis Stice, Chief Executive Officer of Vipers General Partner, stated,
Vipers upcoming conversion into a Delaware corporation, along with the recent closing of the GRP Acquisition, combine to mark an important step in the growth and evolution of Viper. In providing increased governance rights to our current limited partners as well as an expected increase in Vipers trading liquidity and potential investor universe, we are positioning Viper to continue to grow the business and fully highlight the advantaged nature of mineral ownership."
Future Outlook
VNOM has initiated average daily production guidance for Q4 2023 of 24,250 to 24,750 bo/d (43,250 to 44,250 boe/d). The company is also increasing its full year 2023 average daily production guidance to ~22,000 bo/d (~39,250 boe/d). Furthermore, VNOM has initiated preliminary average daily production guidance for the full year 2024 of 25,500 to 27,500 bo/d (44,500 to 48,000 boe/d).
With the company's conversion into a Delaware corporation and its continued growth in production and income, VNOM is poised for a promising future. The company's financial and operational results for Q3 2023 reflect its commitment to growth and value creation for its investors.
Explore the complete 8-K earnings release (here) from Viper Energy Partners LP for further details.
This article first appeared on GuruFocus.
